London, United Kingdom (PressExposure) August 11, 2009 -- "Zen International" sources say that the firm's analysts believe that it is far too early for their quantitative easing programs to be withdrawn. On the contrary, they believe that the dearth of lending by the nations' banks and the indebtedness of their consumers will require the extension of stimulus programs to help keep credit flowing through their respective economies.
One of the "Zen International" sources said that it was no coincidence that the US and the UK's economies were proving more resilient to stimulus than other developed counterparts citing the fact that high debt levels had left consumers in these countries largely unable or unwilling to take on more credit and, in fact, had established a new trend for paying down debt rather than adding to it.
This, in and of itself, was ample reason to suspect that it would be a long time before the consumer would represent a strong showing in economic activity.
"Zen International" believes that central banks in both the US and the UK are raising the issue of exit strategies to reassure investors whose concerns over the excessive debt issuance by both nations may see their appetite for government bonds wane in the months ahead.
This would represent some serious problem for the finances of both nations as they need to raise money for the funding of their out-of-control public spending programs.