Hugh Hendry Quantitative Easing Cycle

1. FED QE
2. Rejects Globalization
3. Rejects China Gaming FX
4. Fed Seeks to Create Domestic Price Inflation Overseas
5. Fed Seeks to Revalue China et al FX Real v Nominal Prices
6. But China Imposes Tighter Credit Controls to Offset Fed Stimulus
7. And Euro Debtor Countries Raise Rates Despite High Unemployment a la 1931
8. And so EM Growth Slows
9. And with a six month lag US / Germany Slows
10. But Zero Lower Bound Restricts Monetary Policy
11. And High Sovereign Debt Restricts Additional Fiscal Stimulus
12. FED do another QE

Hugh Hendry is a fund manager at Eclectica Asset Management. He has become prominent in the United Kingdom for his commentary on the financial crisis. Hendry has been referred to as "the most high-profile Scot in the controversial (Hedge Fund) sector."