‘Central Bank’s Function Is To Provide Monetary Stability, But All Too Often They Seem Only To Generate The Reverse’

Banks’ money-printing has leased us all out, but where’s the alternative

Central banks frequently prove such a menace that like the US Congressman Ron Paul, it’s tempting to think we’d be better off without them. Their function is to provide monetary stability, but all too often they seem only to generate the reverse.
http://www.telegraph.co.uk/finance/comment/jeremy-warner/10139925/Banks-money-printing-has-leased-us-all-out-but-wheres-the-alternative.html

‘Deflation is Taking Over’

Ben Bernanke is losing control. He desperately wants inflation. He’s getting deflation instead. He wants low interest rates; yet rates are rising.
Bernanke is now getting the worst kind of deflation — sluggish price increases against a backdrop of rising interest rates. Consumer prices are rising at their slowest pace in 53 years. And as PIMCO’s Bill Gross says, it looks as though the long bull market in bonds, which began 30 years ago, is finally over. Yields are rising. The Federal Reserve’s borrowing costs are going up.
This is the exact opposite of what the Federal Reserve wants…and needs. Its strategy is to hold interest rates down while it pushes up consumer and asset prices. This would make possible a gradual growth in GDP while the real value of debt was whittled away by inflation. Then it could ‘taper’ its QE.
http://www.dailyreckoning.com.au/deflation-is-taking-over/2013/06/24/

Another China central bank worry – companies push into lending
debt is shaping up to be China’s biggest financial problem. The cabinet has said it would control the flow of new money into industries struggling with overcapacity. Beijing worries the shadow banking market is creating asset-price bubbles, & the…

http://www.reuters.com/article/2013/06/24/us-china-shadowlending-analysis-idUSBRE95N02P20130624?feedType=RSS&feedName=businessNews
Chinese Banks’ Bond Risk Rises Most in Asia Amid Moody’s Warning
Bank of China Ltd., Export-Import Bank of China and China Development Bank Corp. led gains in Asian bond risk last week as Moody’s Investors Service warns credit curbs could threaten small and mid-sized lenders.
http://www.bloomberg.com/news/2013-06-24/asia-pacific-bond-risk-rises-credit-default-swap-prices-show.html
Central Banks Seeing Limits of Powers to Revive Growth, BIS Says
Central banks can’t expand loose monetary policy without exacerbating risks to world economies, the Bank for International Settlements said.
http://www.bloomberg.com/news/2013-06-23/central-banks-seeing-limits-of-powers-to-revive-growth-bis-says.html
The World’s Central Banks May Have Just Started A Strike

Central Banks have done much of the heavy lifting since the recovery started. That may be coming to an end.

http://www.businessinsider.com/bis-says-monetary-policy-has-done-its-part-2013-6
Central Banks Told To Head For Exit, ABANDON GLOBAL RECOVERY!
http://investmentwatchblog.com/central-banks-told-to-head-for-exit-abandon-global-recovery/
Goldman Sachs: Economics Abe positive effects have disappeared
http://www.stockmarkettodayblog.com/2013/06/19/goldman-sachs-economics-abe-positive-effects-have-disappeared.html