There has been simply no growth in the Federal Reserve U.S. money supply (M2) for months. And as previously announced the European Central Bnak drained E26.5 billion from the banking system in a one-week liquidity absorbing operation.
Got that? All the money the ECB pumped into the system just over a week ago to stabilise the system, they have drained out.
The ECB has scheduled another liquidity draining operation for next week.
Now, I'm all for stable non-inflationary money, but the head of the Federal Reserve, Ben Bernanke, and the head of the ECB, Jean Trichet, are not. They are Keynesians who believe that you pumped money into the system to "save" the economy during a downturn.
Thus, you have to wonder what is going. The Keynesians that are in control sure don't want this stock market or economy strong.