"Monetary policy can’t solve the problems we face," warns German finance minister Wolfgang Schaeuble, daring to admit that monetary policy-makers "are moving in a direction which is very dangerous" with regard to excess global liquidity. Amid fears of fed tightening and demands for BoJ and PBOC easing, it appears Europe's leadership fears the consequences of a "market bubble" as the global economy is awash in more public and private debt relative to GDP than at any time post-WWII.
- *SCHAEUBLE: NEED ECONOMICALLY STRONG EU TO TACKLE REFUGEE CRISIS
- *SCHAEUBLE WARNS OF MARKET BUBBLE WITH EXCESSIVE LIQUIDITY
- *SCHAEUBLE: RUSSIA CONFLICT TO BE DECIDED BY ECONOMIC STRENGTH
As Bloomberg details, Schaeuble sees a solution in more reforms...
“Structural reforms” urgently needed to solve problems in real economy, including regulating shadow banking sector.
And adds that:
European economies need to strength to be able to grapple with refugee crisis, other crises.
Government spending mustn’t exceed GDP growth and EU reform efforts are gradually leading to recovering economy
Finally, to Russia...
Conflict with Russia will be decided in the long term by economic strength
* * *
Ironic really that at the same time, his demonic money-printing colleague is calming global turmoil with promises of more Q€ - which if it took place would leave Schaeuble's "precious" Bunds the most bubbliciously mispriced assets in the world (based on the current capital key).
