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Rounds of 'cheap' money over, now worry about the huge debt

As interest rates stay on the floor after years of quantitative easing, several Asian governments stress the need for vigilance against a possible repeat of the 1997 debt crisis.

It is not hard to understand the causes of the debt binge across the globe. Interest rates have plunged to rock-bottom levels (negative even in some cases) as central banks, led by the US Federal Reserve, have used quantitative easing to deliberately force rates down since 2009.

THE US Federal Reserve has finally "pressed the button" on ending its massive monetary easing, but the action has created remarkably little market alarm so far. However, this calm is likely to last only until shock waves begin spreading out across the sea of liquidity that the Fed has created....

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