Europe Worried About Glut of Money Supply

Bloomberg's Fraher and Kennedy note that Europe and the US central banks are not on the same page. Europe believes that there is a glut of money supply, and the Fed persists in maintaining that everything is hunky-dory and under control, that these remarkable real estate price increases are merely the workings of a functioning banking system finding its new-technology sea legs. (See one of my previous posts for their argument, and see this one for my reaction.)

Bernanke will be present at a meeting next week in Frankfurt, hopefully to debate this matter. It will be interesting to see what he has to say there, and thereafter. How will he defend the US position? How long can the US deny what seems to be obviouser and obviouser? (Read the article.)


[Thanks to theage.com for the photo.]