RR Phantom
Location : Wasted Space Job/hobbies : Cayman Islands Actuary
| Subject: Central bank cash glut risks 'monetary statist chaos' Thu Mar 01, 2012 12:44 am | |
| The scale of money printing in the West has become so massive that the world may fall prey to "monetary anarchy", with traces of bubbles appearing everywhere.
At least that's what some critics see in the latest round of cash pumping by major central banks.
It is also an eerily reminiscent of 2011, when similarly generous monetary easing sparked higher oil prices, slowed the recovery and stoked speculative hot money flows into vulnerable emerging markets. Advertisement: Story continues below
The European Central Bank alone lent another 530 billion euros of super-cheap money to banks on Wednesday, following Japan and Britain which have already injected fresh cash. The Federal Reserve has promised to keep interest rates low until 2014 and act further if needed.
Read more: http://www.smh.com.au/business/markets/central-bank-cash-glut-risks-monetary-anarchy-20120301-1u4g0.html#ixzz1nqD3SCpy
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