But that fades in comparison to
the expansion by central banks world - wide, estimated at more than $ 12 trillion since 2007.
For deflation to seriously happen, not only the current extreme credit
expansion by the central banks and states (through «quantitative easing», stimulus packages, monetising and then spending national debt etc.) but also the money that was released into the economy PRIOR to the collapse would have to be «mopped up» again.
Our goal is to help gold market participants make informed decisions about their wealth in an era of unprecedented monetary
expansion by central banks worldwide.
Not exact matches
The cheeky reporter observed that
central banks had a track record of killing economic
expansions by raising interest rates.
World growth will remain low on average but negative in the UK and Europe; price inflation will remain sufficiently subdued for a while longer so as to impose no constraint on monetary
expansion;
central banks will sustain a regime of negative real interest rates and rapid monetary
expansion; the risk of a eurozone collapse is off the table for now; finally, stock markets should continue to perform better than expected, even though the four - year old cyclical bull market is long
by historical standards.
Friedman himself argued back in the 1950s that all
expansion of the money supply should come from
central bank financed government deficits rather than from new credit creation
by the
banking system.
His former colleague and incoming Federal Reserve Chair Powell also expressed a similar view, calling Fed's balance sheet
expansion tantamount to «short volatility position,» and private capital displaced
by Fed's outsized presence would «find something else to do,» such as adding duration, credit and liquidity risk with implicit understanding that the
central bank «will be there to prevent serious losses:»
But the number was still below the 50 - level that signifies
expansion and suggested that the Chinese
central bank may loosen credit - a move typically welcomed
by markets.
The short term funds for this gambling spree were provided in part
by the CBI
expansion of credit during this period, as well as
by the Japanese
central bank, which was expanding credit as well during this period, which the Icelandic
banks were using in their risky game.
What I do know is that
central banks» abilities to lower borrowing costs from here have been compromised
by prior balance sheet
expansion.
Inflation is a reflection on the
expansion of the money supply, aka debt, being created
by a
central bank.