Bonddadgave us another excellent article today about how bad the economy is. Thanks Bonddad. Lemonde.fr today reported on the central banks flooding money into the market on a bigger scale than just a few weeks ago.
The central banks of Europe, the United States, Bank of England, Bank of Canada, and National Bank of Switzerland will be in concert, injecting vast sums into their respective economies:
Federal Reserve + 40 Billion Dollars
Bank of England + 11.35 Billion Pounds Sterling
National Bank of Switzerland + 4 Billion Francs
Bank of Canada + 3 Billion Canadian dollars
All of this to fend off the results of the current credit crisis. What will the overall impact of this tremendous capital injection (printing of money) be?
This has all the makings for stagflation.
Other indicators of stagflation are coming out as well:
- From
CityWire
- From
The Korea Times
- From
Business Week
Hold on to your seat, folks.