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Not sure if this should be here or on the FXE board. However, thought that this relates mostly to all our investments, with a big effect on FXE.

http://www.marketwatch.com/story/global-economys-cure-is-wor...

Mike

By Satyajit Das

Satyajit Das is a former banker and author of “Extreme Money” and “Traders, Guns & Money.”

Dear Doctor: Thank you for referring Mr. Global Economy to me.

The patient’s history includes a seizure in 2007/ 2008 — financial losses, banking problems, a major recession. Liberal injections of taxpayer cash avoided catastrophic multiple organ failure, assisting a modest recovery.

Federal Reserve officials, impatient with the economy's disappointing performance, are moving closer to taking new actions to spur growth and employment if they don't see evidence soon that activity is picking up. Jon Hilsenrath has details on The News Hub.

Governments ran large budget deficits in the period after the crisis. Interest rates around the world were reduced to historic lows, zero or negative in many developed countries. Balance sheets of major central banks have increased to $18 trillion from around $6 trillion, reflecting an unprecedented 30% of global gross domestic product.

Mr. Economy is now addicted to monetary heroin. Increasing doses are necessary for the patient to function at all.

Mr. Economy has not made the changes necessary for a return to full health. He seems to have taken rock star Steven Tyler’s advice: “Fake it until you make it.”

Borrowing levels remain unsustainable. Debt levels for 11 major nations have increased to 417% of GDP in 2012 from 381% of GDP in 2007. Debt has increased in Canada, Germany, Greece, France, Ireland, Italy, Japan, Spain, Portugal, the U.K. and the U.S.

Global imbalances — major current account surpluses and deficits — remain. Little progress has been made in bringing the banking system under control.

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