>Would like your comments on the above.
... and what happens when the banks start lending money, up to their capital adequacy ratios on these increasing reserves? Consider how this will effect the money supply and inflation.
The article is from October ... there is alot of evidence that in the quarter between then and now, there has been some expansion in lending.
Are you following the recent Fed announcements on their willingness to buy long treasuries? In light of what I have posted - do you know why they are doing this? Do you not agree that acting on this "threat" is classical debt monetisation? Even issuing the threat - if it is heeded - is inflationary!
BNB
babcock & brown limited
