``It's no mystery what happens when the Fed buys bonds with newly conjured dollars: anything but dollars tends to rise. In the year after QE1 in late 2008, emerging market bond yields fell, gold rose 56 percent, oil climbed 70 percent and MSCI's index of Asian stocks rose 65 percent. A similar trend was underway after QE2 in late 2010, until July 2011, when the Fed stopped buying more bonds and the European crisis boiled over.

Now the Fed has promised to create $40 billion a month until it deems that the U.S. labour market has responded sufficiently. That opens the prospect of a limitless supply of hot money, driving the prices of risky assets ever higher. The Hong Kong Monetary Authority is already worrying about the effect on the city's property market.''

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