WHAT’S NEW IN QE3?
- The Federal Reserve’s number one focus is unemployment.
- Monthly spending: new purchasing of $40 billion in Mortgage Backed Securities ‘for as long as required’ and continued Operation Twist purchases of $45 billion = $85Billion per month.
- Extending the period for exceptionally low rates to mid-2015 from late 2014.
QE3 Impacts: Creating a Weak $US (August 30 – September 14)
- Canadian Dollar from 1.0105 to 1.0309
- Euro from 1.2529 to 1.3134
- Oil from 95.30 to 99.33
- Gold from 1.658.70 to 1,776.20
BOOMING CLIMATE IN ALBERTA
- Provincial real GDP is on pace to grow 3.8% this year
- Farm cash receipts rose 28.3% in Q1
- Population is expected to grow by 2.1% this year
- 40% of Edmonton area employers plan to hire in Q4 (Manpower Survey)
- 17% of Calgary area employers plan to hire in Q4 (Manpower Survey)
- According to RE/Max, Western Canada farmland values have soared, up 20 – 25% in Alberta YoY and 20% in Saskatchewan YoY.
- EU is recruiting ECB as the lead National Bank Regulator as a condition of allowing euro-area banks direct access to the zone’s firewall fund. Germany has raised objections.
- The Netherlands banking industry measures about 4.8X their gross GDP, making it one of the largest in the world.
- Larry Jeddeloh has stated that competition for water will increase between the coal and agriculture industries. Over the next 20 years, China and India are building $720 billion of coal-burning power plants; more than 50% of these new plants are planned in agricultural areas that are water sensitive.
- CAW proposal for new employees includes lower wages for their first 10 years (currently 6 years) and benefits to avoid strikes.