FEDERAL RESERVE

U.S. consumer sentiment rose more than expected in November, boosted by stronger holiday sales, according to the Thomson Reuters/University of Michigan survey.

There has been “big progress” in the negotiations between world political leaders as they seek to hammer out an agreement and compromise on major economic issues on the final day of the G20 summit in Seoul, South Korea.

The much anticipated, talked about, and at times criticized program of the second round of quantitative easing has begun.

Stocks, through quantitative easing, are pushed higher and into bubble territory. In a few years, the market could crash and fall as much as 50 percent, said Jeremy Grantham of GMO LLC.

Moody's Investor Service upgraded China's 3 big policy banks and Chinese government's bond rating to Aa3 from A1.

A surge in food prices propelled Chinese consumer prices to a 25-month high in October, despite the government's efforts to control inflation.

Experts at PIMCO, which has the world's largest bond fund, said inflation is a medium and long term concern and investors should therefore consider purchasing more inflation-sensitive assets.

To the dismay of policy makers, the newly-printed dollars of the Federal Reserve has not found its way to the real U.S. economy in the form of loans to small businesses and consumers. A key question is if they are sitting in the U.S. financial system or flowing to emerging market economies.

The suicide concoction of fiat currency, debt, military empire, and delusion has been painless for those in power, but painful for the working middle class of this country.

The US Federal Reserve' s quantitative easing can lead to asset bubbles as the money goes in search of equity, property and other such assets in a low-interest rate scenario, said Kaushik Basu, chief economic advisor to India's finance minister.

QE2 is a rising tide that lifts all boats. The boats, in this case, refers to asset prices. Unfortunately, some asset rallies, particularly those in consumer and industrial commodities, are bad for the real economy,

Unemployment rate in the US remained constant for the third month in October, while nonfarm payroll employment rose more than expected, according to a report by the US Labor Department.

With our debt coming to maturity in the next ten years, which we cannot afford to pay, printing money seems to be our only option, which we feel is going to spur inflation, if not hyperinflation. We also feel if we adjusted gold for the inflationary highs of the 80's, gold bullion should already be at $2,200 an ounce, so we feel very strongly about a further drive up in gold over the next five years.

Michael Yoshikami, president and chief investment officer of YCMNET Advisors in Walnut Creek, Calif. discusses what exactly QE is, why it may be needed and its potential impact.

Behind the scenes, China and the U.S., two major combatants, may already have already struck an agreement, said Douglas Borthwick, head trader of Connecticut-based Faros Trading.

The price of gold climbed to a new all-time high of $1,284 per ounce on Monday morning, suggesting that investors are very concerned about inflation that is apparently eroding the value of paper-currencies.

Tough government follow-through on a freshly minted U.S. financial law will be crucial to ensure no bank or firm grows so large that its collapse could jeopardize the entire economy, Federal Reserve Chairman Ben Bernanke said on Thursday.

The U.S. Federal Reserve is committed to keeping the price of money low until the economic recovery strengthens, but should not do more to boost growth without fiscal and regulatory policies that support businesses, a top Fed official said on Wednesday.

The Federal Reserve should only embark upon further monetary easing if faced with a dangerous downward price spiral, otherwise it risks undermining its credibility, a top Fed official said on Wednesday.

The outlook for the U.S. economy would have to deteriorate appreciably to spur fresh support from the Federal Reserve, according to minutes of the central bank's last policy meeting released on Tuesday.

Stock index futures were lower on Tuesday as investors awaited data on housing and consumer confidence to gauge the pace of the economy recovery.