English: The great asset bubble during the Late-2000s recession. 1 – Central banks gold reserves ($0.845 trillion) 2 – M0 (paper money) ($3.9 trillion) 3 – Traditional (fractional reserve) banking assets ($39 trillion) 4 – shadow banking assets ($62 trillion) 5 – other assets ($290 trillion) 6 – Bail-out money (early 2009) ($1.9 trillion) (Photo credit: Wikipedia)

English: Emerging Markets without China and India (Photo credit: Wikipedia)

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In case you missed it, this blog by Gavyn Davis, the highly respected macro-economist at the FT is a STRONGLY RECOMMENDED READ. Check it out!

via No tapering yet for global central banks | Gavyn Davies.

The article looks at global growth in central banks balance sheets and makes some very intelligent predictions. The global outlook is very favorable but keep an eye on emerging markets, especially perhaps China.

With austerians still very powerful in Washington, Berlin and London, it looks like fiscal policy will remain conservative, and the growth will still be strongly influenced by central bankers.

Any thoughts?

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