More BIS Bull About Inflation
As the Bank of China raises the reserve ratio for Chinese banks, there is a massive earthquake and Mother Nature, which sent tornadoes into the US and a huge typhoon into Burma. The costs of these catastrophes will stress global banking systems even further, of course. The looming earthquake that will rend California will, like the ones in Asia, create further stresses. China is, unlike the US, seriously trying to grapple with inflation and is using classic methods to do this. But the US persists in pretending inflation is all a psychological matter and it is OK to have interest rates very low and bank ratios at laughable levels while creating more Funny Money™ via that ever-widening new window installed in the Fed bank vaults. So today, we examine the most recent BIS report about all this.
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