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>> BANK OF JAPAN Latest News

FEB 26, 2013 - Zero Hedge

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"Central Banks Cannot Create Wealth, Only Liquidity"

In many Western industrialized nations, debt has overwhelmed or is about to overwhelm the economy's debt-servicing capacity. In the run-up to a debt crisis, bad debt tends to move to the next higher level and may ultimately accumulate in the central bank's balance sheet, provided the economy has its own currency. The process whereby government or quasi-government debt is taken over by the central bank is called quantitative easing. Many observers assume that, once bad debt is purchased by the central bank, the debt crisis is solved for good; that central banks have unlimited wealth at their ... Read More

Tags: "Central Banks Cannot Create Wealth, Only Liquidity",  Bank Of Japan Latest News