The latest diet tip from Ambrose Evans-Pritchard, citing fiscal spending and monetary easing boosting the global economy
Government policy has turned expansionary in the US, China and the eurozone at the same time. Fiscal austerity is largely over. The combined money supply is surging
- A combined gauge of the global money supply put together by Gabriel Stein at Oxford Economics shows that the "broad" M3 measure grew ... the fastest rate in 25 years, excluding the final blow-off phase of the Lehman boom
- The fiscal barometer published by the Brookings Institution in Washington shows ... US federal, state and local governments ... are now adding net stimulus.
- The federal budget deal in Congress will add even more juice next year
- A parallel process is under way in China. Fiscal policy has swung from a violent crunch at the beginning of the year - hence the Chinese recession - to an accelerating take-off over the past four months. It jumped from 11.8pc in June, to 13.4pc in July, 14.8pc in August and 16.4pc in September.
Its not all sunshine and lollipops from AEP, he warns that that dangers are 1 -2 years away, and "The day they suddenly have to slam on the brakes is when it will turn ugly. "
