Realistbear Posted March 18, 2006 Share Posted March 18, 2006 This follows on from the Bank of Japan and the eventual collection on the trillions the Japanese have lent the West to create the massive debt mountain HPI and MEW: http://www.iii.co.uk/news/?type=afxnews&ar...&action=article FRANKFURT (AFX) - Bank for International Settlements general manager Malcolm Knight said the long period of low long-term interest rates, strong monetary growth and rising asset prices may be creating financial imbalances which will be costly in the future. He told an ECB monetary policy conference that the extraordinarily long period of unusually low real interest rates and the equally long expansion of money and credit and asset price booms in many countries have so far not triggered a significant acceleration in consumer price inflation. "This seems like a pretty benign scenario but it's a configuration of developments that's not very comfortable, in my view," he said. "Have we... unwittingly been allowing financial imbalances to build up that one day might come back to haunt us?" he added. He said central banks have achieved a lot in maintaining price stability, but they need to look closely at possible future risks. "Sometimes the toughest challenges to policymaking can arise precisely when you think the battle is won and success is at hand," he said. steve.whitehouse@afxnews.com sw/ak The imbalances are the natural consequence of interferring with the economic cycle. Had Al allowed the US and th rest of the world to go through the recession in the late 1990's we would not be facing a far deeper recession today. Value must return to its level. The forces of equilibrium at work. Quote Link to comment Share on other sites More sharing options...
karhu Posted March 18, 2006 Share Posted March 18, 2006 FRANKFURT (AFX) - Bank for International Settlements general manager Malcolm Knight said the long period of low long-term interest rates, strong monetary growth and rising asset prices may be creating financial imbalances which will be costly in the future. No s**t, Sherlock. Quote Link to comment Share on other sites More sharing options...
laurejon Posted March 18, 2006 Share Posted March 18, 2006 Agreed No sht sherlk you took the words right out of my mouth. How come I only earn 55k a year tapping a keyboard that he earns all that money stating the obvious. I am for sure in the wrong job!!!. Quote Link to comment Share on other sites More sharing options...
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