March 11, 2012

TIGHT MONEY, AGAIN:

Global liquidity peak spells trouble for late 2012 (Ambrose Evans-Pritchard, 11 Mar 2012, The Telegraph)

Data collected by Simon Ward at Henderson Global Investors shows that M1 money supply growth in the big G7 economies and leading E7 emerging powers buckled over the winter.

The gauge - known as six-month real narrow money - peaked at 5.1pc in November. It dropped to 3.6pc in January, and to 2.1pc in February.

This is comparable to falls seen in mid-2008 in the months leading up to the Great Recession, and which caught central banks so badly off guard.

Hopefully there's nothing like the level of derivative fraud that was exposed in the last slowdown caused by misguided inflation-hawkery.



Posted by at March 11, 2012 9:25 PM
  

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