Yessss! Latest Liquidity Data Release

by Michael J. Howell11. January 2013 18:25
Latest End-2012 data is released to clients today. Fed liquidity is now fast accelerating, and the month saw a big jump in BoJ liquidity injections. Both confirm our predictions. China's PBoC continues to ease and collectively EM policy-makers delivered another sizeable boost. Only the ECB is going into reverse, and ths largely because their promised bond operations have yet to start. But the biggest news on the month is the jump in overall US credit provision by banks and shadow banks by nearly US$200 billion. US credit growth is definitively rising: the lending mechanism is again working. The Fed have won! Expect positive economic surprises to continue. Watch out bonds! For the record our December GLI (Global Liquidity Index) hit a healthy 64.0 (range 0-100) from 52.3 in November.

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