There is no need to try and refute this article because I believe that his arguements are well put and his conclusion is sound;
"Concluding comments
Concerns about QE driving economic mayhem, currency wars, hyperin?ation, etc, are overblown. In fact, if it was not for QE, global growth would be lower. However, the broader risk is likely to shift towards in? ation in the years ahead."
Re: QE risks:
Mr Oliver's lists CB's owning a significant share of the bond market, asset bubbles and inflation as chief risks. The question here has gold already bubbled or do we have to wait until inflation hits to see the much anticipated $2000+/oz gold? There is certainly no evidence of US real estate re-bubbling yet. Perhaps its stock market is ready for a major correction
Re: Currency Wars:
I disagree with Mr Oliver's denial of Currency Wars and his view that it should be called stimulus wars. China's recent moves to direct Yuan/local currency transactions thereby debunking the Greenback as the intermediary currency and by implication its reserve currency status.(Australia has been doing AUD-Yuan trade deals since the 10th April this year) Currency wars are much easier to transact than trade wars or real shooting wars and for this reason I believe that Currency Wars will be China's preferred weapon.
Re: Hyperinflation:
Mr Oliver's comment on hyperinflation seems quite apt by differentiating between the function of narrow money versus broad money. This explains why the long awaited US inflation hasn't happened yet and will not likely happen until economic slack is picked up.
Mr Oliver's analysis seems to explain QE in the US but many had expected that the USD, like the Yen, would have devalued alot quicker but I guess there are some drawbacks in being the reserve currency.
Sorry Gravscan, to my mind there is little in Mr Oliver's analysis to refute.
