2012-05-03 —

... based on the BNP Paribas calculus, the market will figure it less likely that the ECB and Fed will resume printing due to price inflation concerns. Or at least this is what the central banks want you to think. As we have written earlier, only when the market expects the void--a cessation in printing operations--will equities and, in turn, oil drop to more print-friendly prices.


Next up, a much larger quantity of actual data will be allowed to enter the purview of status-quo herded investors, as reality catches up with the carefully manufactured market sentiment. The Bank of England will decide next Thursday, May 10, if it will continue printing beyond the present $530 billion program total, and join the Bank of Japan, or if it will bolster the (knowingly temporary) ECB and Fed positions that the world will return to a gentle growth after all unconventional accommodation (printing) is removed.

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