Posted on 10/12/2015 12:14:19 PM PDT by Lorianne
In 2008 central banks, led by the Federal Reserve, rode to the rescue of the global financial system. Seven years on and trillions of dollars later they no longer have the answers and may even represent a major risk for the global economy.
A report by the Group of Thirty, an international body led by former European Central Bank chief Jean-Claude Trichet, warned on Saturday that zero rates and money printing were not sufficient to revive economic growth and risked becoming semi-permanent measures.
"Central banks have described their actions as 'buying time' for governments to finally resolve the crisis... But time is wearing on, and (bond) purchases have had their price," the report said.
In the United States, the Federal Reserve ended its bond purchase program in 2014, and had been expected to raise interest rates from zero as early as June 2015.
But it may struggle to implement its first hike in almost 10 years by the end of the year. Market pricing in interest rate futures puts a hike in March 2016. The Bank of England has also delayed, while the European Central Bank looks set to implement another round of quantitative easing, as does the Bank of Japan which has been stuck in some form of quantitative easing since 2001.
Reuters calculates that central banks in those four countries alone have spent around $7 trillion in bond purchases.
(Excerpt) Read more at reuters.com ...
ping
easy answer - untie the US from the Global Banking system and tie us back to the gold standard. it will be hard at first but but stabilize.
I do believe that if we can get past the 8 long and bleak Obama years and elect a true capitalist rather than a Muslim Marxist, America can once again become the worlds economic engine.
Right now it’s been a long Obama economic winter but spring can come. All bets are off if America elects Hillary as we may then well enter an economic ice age.
Before they resume with a bang and a boom, F Troop.
Alreadi “semi-permanent measures” IMHO. I will be shocked if the Fed can raise rates for at least a decade.
They bought time. And used it in lousy ways.
“They bought time. And used it in lousy ways”.
They certainly did. No they have few, if any, cards to shuffle.
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