Easy money: Even without the Fed, we are awash in cash.: "....Yes, the U.S. Federal Reserve has been an active supplier of easy money, with its various forms of quantitative easing since 2009 amounting to more than $4 trillion. But it is hardly the only source of liquidity. The Japanese government of Shinzo Abe has been actively pumping money into Japan’s economy in attempt to jump-start what has been a rather moribund system. Now Europe and China are adding to the mix. The mandate of Narendra Modi to reform the Indian economy could well mean that India will soon add to the global liquidity cornucopia. And then there are pools of money sitting in cash or less than fully invested, from the $5 trillion on U.S. corporate balance sheets alone (nearly $2 trillion of which is held by nonfinancial companies, i.e., not banks), to the more than $6 trillion controlled by sovereign wealth funds such as those of Norway, Saudi Arabia, Singapore, and Abu Dhabi. On top of that are the vast cash reserves of global savers, who have been wary of financial markets and prefer instead to keep cash savings in banks and money market funds ($2.6 trillion in the U.S. alone)...."
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