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August 30, 2016 | Global Growth and Monetary Hoses

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel ( Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog:

According to the CIA Factbook the global broad money supply totaled $81.3 trillion in 2014 and more than a triple from $25 trillion in 2000. For a visualization on the relative size of all global markets and monetary instruments see:  All the world’s money and markets in one visualization.

As monetary fire hoses have flooded the financial system the rate of global economic growth has plunged from 4.33% in 2000 to 2.47% in 2015.

Unrepentant, last week central bank heads said they will need to dramatically increase liquidity operations during the next recession.  In this approach, there is little doubt that global growth will soon look like global interest rates–flat to negative.

When will we be ready to adopt an intelligent approach that focuses on rebuilding savings rather than increasing debt?  On investing in efficiency and productivity rather than speculating in damaging asset bubbles?  Apparently not yet.

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August 30th, 2016

Posted In: Juggling Dynamite

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