China is also going going to increase its money supply.
According to Bloomberg.com "M2, the broadest measure, including cash and all deposits, will increase 17 percent, the State Council said in a statement on its Web site."
I am an eklektarchist not an anarchist.
Educational Pamphlet Mises Group
The global cartel is swinging into action. It makes me sick that my country participates in this.
liberty student: The global cartel is swinging into action. It makes me sick that my country participates in this.
Me too. It makes me sick that I am forced at the point of a gun to support this with my tax dollars.
Does an increased demand warrant such an expansion of the supply, or is it purely arbitrary?
At least China has an honestly socialist name for its central bank. That's the only good thing I can say about the subject of the article.
I'm thinking that with all the repetition of wrong-headed ideas, Santayana has gone beyond rolling over in his grave and has become Zombie Santayana, bent on revenge on the ignorant.
scineram: Does an increased demand warrant such an expansion of the supply, or is it purely arbitrary?
In this case, since it is not market driven, it is arbitrary. In a pure free market there may be a demand for more money that would warrant such.
It is arbitrary, but not necessarily bad. I do not see how intervention changes that. The government has no way to know, what the money supply should be, but expansion cannot be judged so simply imo.