Seven Central Banks Take Anti-Deflationary Actions in Past Week

by Pam Martens and Russ Martens, Wall Street on Parade The big story this week has not been news coming out of the widely covered World Economic Forum in Davos or the much anticipated bond-buying program in Europe known as QE. The big story is the sheer number of central banks moving into panic mode in the span of a week. We may be forced to change the name of our web site to “Central Banks On Parade.” Since last Thursday, seven separate central banks have taken action to guard against deflationary forces now moving like an out of control wildfire around the globe. Central bank moves in Switzerland, Canada, Denmark and Peru came as a surprise to markets and may have had a secondary agenda of drawing some blood from speculators. The most heavily anticipated announcement came today from Mario Draghi, President of the European Central Bank. At 2:30 p.m. Central European Time today, Draghi announced that the central bank will expand its current program of purchasing asset-backed securities and covered bonds by including the purchase of sovereign debt from its Eurozone members. The program will run from this March until September of 2016 with 60 billion euros in bonds being purchased each month. Continue Reading>>>

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