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Imf, U.s. Encourage Ecb, Japan Monetary Stimulus

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http://uk.reuters.com/article/2014/11/07/uk-global-cenbank-idUKKBN0IR1G720141107

The International Monetary Fund and the United States encouraged the European Central Bank and the Bank of Japan toward greater monetary stimulus on Friday and urged governments around the world to do their share to cultivate growth in their countries.

Calling the world economy "fragile, brittle and fragmented", IMF Managing Director Christine Lagarde told a conference of central bankers in Paris it was "perfectly legitimate and appropriate" for the ECB and the BoJ to take unconventional steps to combat low inflation and economic stagnation.

U.S. Federal Reserve Chair Janet Yellen said central banks "need to be prepared to employ all available tools, including unconventional policies, to support economic growth and reach their inflation targets," especially where governments have withdrawn fiscal stimulus.

The comments came a day after the European Central Bank ordered its staff to start preparing for bolder measures if needed to fight slowing inflation, on top of a range of rate cuts, asset purchases and lending operations already agreed.

However, Indian central bank governor Raghuram Rajan said whether "more stimulus is the answer" was a good question. More economic reforms were equally important, he said.

The magic money machine can never ever be turned off. Printing free money and wealth is simply too irresistible for those corrupted by power to resist.

However the impossible question to answer is how long can this lunacy be kept up for before the people no longer value the currencies? China repeatedly tried this paper money experiment between 1000-1700 and each time it failed. Still this time it's different as we have modern economic experts running the show who know what they are doing....

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The International Monetary Fund and the United States encouraged the European Central Bank and the Bank of Japan toward greater monetary stimulus on Friday and urged governments around the world to do their share to cultivate growth in their countries.

Calling the world economy "fragile, brittle and fragmented", IMF Managing Director Christine Lagarde told a conference of central bankers in Paris it was "perfectly legitimate and appropriate" for the ECB and the BoJ to take unconventional steps to combat low inflation and economic stagnation.

U.S. Federal Reserve Chair Janet Yellen said central banks "need to be prepared to employ all available tools, including unconventional policies, to support economic growth and reach their inflation targets," especially where governments have withdrawn fiscal stimulus.

The comments came a day after the European Central Bank ordered its staff to start preparing for bolder measures if needed to fight slowing inflation, on top of a range of rate cuts, asset purchases and lending operations already agreed.

They're more sheeple than the people.

Not an original idea between them.

Edited by billybong

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Unconventional methods to combat low inflation and economic stagnation?

Just follow the US...

M2%2Bvelocity.PNG

Just a thought on the velocity of money. Don't really know how it's calculated, but if all the free money being given to the banks and lent to the rich is being "parked" in appreciating assets, then the average velocity would come down, but the actual amount of economically productive "still mobile" money being traded in the economy may be going faster, slower, or exactly the same as before.

Edited by Steppenpig

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