The European Central Bank and national central banks started buying soveeign debt under a plan to inect 1.1 trillion euros into the economy.

Deutsche Bundesbank President Jens Weidmann’s opposition to the ECB’s move: “The most vocal critic of the European Central Bank’s quantitative easing program criticized the program as it was being launched.

The yuan is losing strength against the dollar, and now there is nervous talk about what would happen if China launched quantitative credit-easing moves.  We have noted that this uneven application of QE and the differential interest rates across the globe impacts economies in odd ways that are only beginning to be noted.  Currency wars result in some cases.

Chinese regulators are turning to Japan for lessons on how to keep the world’s second biggest economy from taking the same path of recession and deflation that has blighted its neighbor for the past 20 years.