Tags: bubbles, conspiracies, if they keep this up they'll be richer than we are and we can't let that happen, World Bank
Leave it to the World Bank to rain on everybody’s parade. The president of the root of all evil, in ignorance or in spite of Larry Fink, sees a bubble burgeoning to the east.
Mr Zoellick said on the margins of the Asia-Pacific Economic Co-operation summit in Singapore: “Traditionally the central banks in east Asia will follow the [US] Federal Reserve because if they raise interest rates [independently], that will draw capital and appreciate their currencies.
“In the US and Europe, because things are still relatively weak, I don’t see any likely inflationary effects at this stage. In east Asia, if you start to get a strong rebound in growth and you’ve got a lot of liquidity, there is a question of whether you start to face asset bubbles,” he said.
Zoellick’s warnings come hot on the heels of his partners-in-crime at the International Monetary Fund doubling their estimates for Asian economic growth this year.