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To: ild who wrote (257553)	8/26/2003 5:53:55 AM
From: geewiz	Respond to of 436258

Global oomph powered by similar excessive credit and monetary expansion as crazy Al is conducting: from Bloomberg quote.bloomberg.com Germany has made some tentative steps toward reform (and one day Germany will be one of the great recovery stories of all time -- historically, it has always been one of the richest societies in the world and will surely be so again) but that road is a long one and the journey has hardly even begun. Worse, Italy and France appear to be joining Germany in a state of near permanent stagnation, and the next move in European interest rates is as likely to be up as down. Governments in France and Germany are running big budget deficits and at some point may have to start cutting spending or putting up taxes. It is hard to make a bull case out of those materials. So what's making the markets so cheerful? The answer: There are a lot more euros swilling about. Although few people appear to have paid much attention, the European Central Bank has been pumping out a lot of new money. The ECB has a target rate of growth of 4.5 percent for M3, one of the main measures of broad money. But right now, M3 is growing at more than 8 percent annually, and shows no sign of slowing down. And that's in an economy that isn't growing at all -- and so theoretically doesn't need any extra euros.