Over the past few weeks the central banks of the three major developed economies (the US, Europe, and Japan) have committed to unlimited monetary accommodation. The US Federal Reserve will purchase $40 billion of mortgage securities every month until unemployment drops to target levels. The European Central Bank (ECB) has pledged unlimited support for Italian and Spanish bond markets, provided they submit to budgetary and policy oversight from the rest of the Euro Bloc. Thus, the ECB has at long last assured a sufficient backstop for the funding needs of these highly indebted economies. Even the Bank of Japan, which has been too little too late in its policy response for more than 20 years, has committed to aggressive Quantitative Easing (QE) asset purchases until Japanese inflation exceeds 1%.

David Fuller's view I agree with Michael Jones' overall outlook and commend this report to subscribers.