The Liquidity Bonanza Continues

Boom, crash and back up again

Issues contributed:

• China keeps running the show, what comes market liquidity (global money supply).

• March, once again, saw a massive increase in liquidity, from China, followed by a draining in April.

• Major injections of liquidity are likely to carry the markets till the end of June.

Latest global money supply data has just been published. It basically confirms everything I wrote before. March saw a gargantuan increase in global liquidity, in the excess of $1100 billion, and a withdrawal in April.

I cannot help but to politely smile to every market analyst trying to come up with different explanations, why markets behave as they do. Currently, global money supply (liquidity) completely runs the show. Let’s take a look.

If you want to know more, check out the liquidity forecasts of GnS Economics, which currently run till the end of the year. We will update them in short order.