When interest rates rise so do does the return on treasury or T-bills, thus when quantitative easing is issued and T-bills are issued their return when interest rates rise, will in turn cause a greater supply of money for all T-bill bond holders & therefore will increase the purchasing power of the bondholder, of which will cause inflation due to greater money supply, however if the product sector is matched with the increase in money supplies, the resulting effect will be an equilibrium of finances. Although the productivity & return on investment with respect to debt-to-service ratio of a nation state will dictate the purchasing power of a nation state or currency market value, other wise known as growth relative to interest rates.

From what I’ve gather based on the recent PMI reports and the surplus supply of iron and ore including the recent drop in oil prices as well as commodity prices; the only solution is to increase interest rates and have a direct mandate to the manufactures to increase production level of small to large goods. Of which when PMI increases prices normally drop for commodities, however if the ECB and FED increase interest rates & (continue monetary easing, to match pmi increases,) as well as increase budget funding for welfare and small businesses via way of FDI & ODA including manufactures subsidies from central governments, there will, as an effect be an increase in demand for all goods produced globally in-tandem with the production output of manufactures; where by with interest rate increases there will be moderate inflation, thus in turn mitigating price deflation. Thus as an effect all above is a solution to the commodity and manufacturing slump, of which will spur global growth forecasts.

Sincerity, Alan T Dixon

~PATHOSCRESCENDOALANDIXON@ME.COMFRANKLIN, TN, USA