Here’s a story from Bloomberg about Asian companies selling dollar denominated bonds because funding costs are so low. This type of activity is the heart of my thesis that the monetary explosion engineered by the Fed is going to spark massive inflation in the emerging markets. Eventually – probably sooner than later, this inflation will spread into the developed economies via high energy and commodity prices.

Dollars are fungible world-wide and that is why it is a mistake to focus solely on the inflation rate here in the U.S. if one is worried about prices spiraling out of control.

I continue to believe that the authorities had zero idea about what level of monetary expansion was proper for the QE experiment. The $1.5T figure seems to have been chosen simply because it was really big.