CNBC:

Key currencies, including the dollar, could come under growing pressure because of extraordinary money-printing by central banks to counter the financial crisis, China’s central bank said on Wednesday.

In its quarterly report on monetary policy, the People’s Bank of China pledged an ample supply of credit to support the economy, which it said would enjoy "stable and quite fast" growth despite current weakness in external demand.

My comment: Chinese money supply growth is up 25% y-o-y!

(snip)

"As more and more economies start to implement extraordinary monetary policies like quantitative easing, risks of major currency depreciation may grow," the report said.

My Comment: That is exactly what is happening.

(snip)

"If central banks cannot mop up the huge liquidity when economic recovery comes through, asset bubbles and inflation may once again be triggered.

"Furthermore, inflation has become a global phenomenon in recent years, and a policy mistake at one major central bank could create inflation risks for the whole world," the PBOC said, without mentioning the Federal Reserve or other central banks by name.

My comment: You can bank on inflation and a new bubble forming probably in commodities. We are already seeing base metals, energy, and now the grains moving higher.

John Polomny
The Real Deal