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Morgan Stanley Dissects The Reality Of Our Free Money World Read more: http://www.businessinsider.com/morgan-stanley-central-banks-2010-6#ixzz0r7bCtIhy

Morgan Stanley have details of the sovereign banking crisis facing our world right now, namely the reality of easy money low interest rates that governments around the world can't seem to give up.

This isn't just an American and European problem, low interest rates plague Asian markets as well. And while those interest rates may be encouraging growth around the world, they are also leading to a hording of assets on the balance sheets of central banks around the world.

Some of the world's growth economies, those that have remained outside the worst of the financial crisis, are now starting to move off of those lows. And some central banks are starting to sell off the assets they acquired at the height of the financial crisis.

But all of that may stop if a global slowdown seems more likely.

The UK's rates remain close to zero, and look set to do so.
The UK
Source: Morgan Stanley
Reserves have been increasing with the size of the UK's balance sheet.
Reserves have been increasing with the size of the UK
Source: Morgan Stanley
U.S. rates remain close to zero, and look set to do so.
U.S. rates remain close to zero, and look set to do so.
Source: Morgan Stanley
U.S. reserves have also been increasing, as the balance sheet rises.
U.S. reserves have also been increasing, as the balance sheet rises.
Source: Morgan Stanley
The eurozone also looks set to remain close to zero with its interest rates.
The eurozone also looks set to remain close to zero with its interest rates.
Source: Morgan Stanley
The eurozone's total reserves remain low.
The eurozone
Source: Morgan Stanley
Japan has, and looks set to remain, close to zero with it's interest rates.
Japan has, and looks set to remain, close to zero with it
Source: Morgan Stanley

Read more: http://www.businessinsider.com/morgan-stanley-central-banks-2010-6#ixzz0r7bJ8k9s


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