Interesting quote from Goldman Sachs today:
"Once the price of Brent
crude /oil/ reaches $125 /per barrel/, global economic growth becomes
challenged and ultimately makes QE self-defeating. "
(Today, Brent crude is trading at $113.)
And from Zero Hedge regarding oil:
"The
unending efforts of our glorious central-banking planners to raise
asset prices and encourage 'animal spirits' through the trickle-down of
unicorn-tears via the wealth effect have side-effects. Unintended
consequences of 'leaking liquidity' finding its way into hard assets and
'things that have relatively limited supply' have stalled hopes of a
stimulus in China (/due to high/ food inflation) and caused refis to
mysteriously lag on misplaced future rate expectations in the US (ZIRP
/the Fed's Zero Interest Rate Policy/). The biggest 'problem' the
central-bankers face, however, is energy prices. The liquidity surges
directly impact the price of oil (which is already under pressure from
the ever-igniting fears of Middle-East flare-ups)."