the U.K.’s broadest measure of money supply surged at an annual rate of 14.5% last month. Not only was that up from 11.4% a year earlier, it was also the fastest rate of growth since 1990.
Meanwhile, money supply in the 12-nation Eurozone climbed at an 8.5% year-over-year rate. In the past, the European Central Bank has called a rate of 4.5% risky!
In China, money is pouring out of every nook and cranny. That country’s broad money supply measure jumped 17.1% in October, up from 16.8% a month earlier.
I could go on and on, too — Australia saw an 11.3% increase, vs. 8.8% a year earlier, while Canada’s money supply growth hit a nine-month high.
Our Federal Reserve stopped publishing its measure a year ago, claiming the data wasn’t that important.
Other central banks have made similar moves:
The Reserve Bank of Australia just increased its benchmark interest rate to 6.25%, the third hike this year.
The European Central Bank has raised rates five times in past year.
2006-11-17
01:06:50
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