01/08/2014 by socialistfight
Despite the intensifying debt crisis in the Eurozone and a battery of weak economic data for the major capitalist economies, the world’s stock markets have risen over the last two months, although the indexes are still well below where they were at the beginning of 2012, when optimism for economic recovery had risen again.
But stock markets are up this summer not because economies are beginning to expand faster – on the contrary. They are up because the central banks of the major economies are hinting that they will launch yet another round of ‘monetary easing’, namely cuts in interest rates and the injection of money by the purchase of government and corporate bonds, through what is called quantitative easing (QE). Every time in the past that the Federal Reserve has announced a bout of QE, or the Bank of England and the Bank of Japan have done the same…
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