by Wolf Richter, Testosterone Pit.com:
Things move quickly at the G-20 when markets go south. The turmoil following Chairman Bernanke’s mere suggestion of a vague and slow taper of the Fed’s multi-year money-printing and bond-buying binge has already incited our illustrious finance gurus and central bankers at the G-20 to buckle, apparently.
At prior meetings, they might have palavered uneasily about the easy money, trying not to call it a currency war when Japan began to flood its land with it. But now, they suddenly fear the opposite, namely an exit, or even the mere suggestion of a taper, given the mayhem it had already caused in the markets.
So at their July meeting in Moscow, they will likely discuss how a taper might impact, say, emerging economies, according to unnamed Japanese officials, who leaked it to Dow Jones Newswires. And it would be “quite possible” that they will ask the IMF, if they haven’t already, to study the spillover effects of a taper. Because it’s not the right time to tighten.
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