Wednesday, August 31, 2016

Central Banks Hit the Panic Button
"Central banks are screwed. They’re out of bullets. They know it. And they also know the rest of the world will catch on soon enough .. They’ve cut interest rates 667 times since Lehman Brothers collapsed .. They’ve also purchased $25 trillion of financial assets. That’s larger than the gross national product of the U.S. and Japan, the first and third largest economies in the world, respectively .. And through their sadistic negative interest-rate schemes, there’s now $8 trillion of negative-yielding sovereign debt. That’s 54% of all sovereign debt. And $13 trillion in negative yielding global bonds. That’s 28% of all bonds .. The markets have been flooded with historic torrents of liquidity to supposedly spur economic growth. But none of these experiments have prevented the world’s developed economies from flatlining .. Look at the numbers .. The developed economies are failing .. And even China’s world-beating economy is now sucking fumes .. Now that NIRP is destroying European banks and creating mass cash hoarders in Japan, central bankers will go for 'helicopter money' next .. Central bankers are simply trying to extend the credit bubble as long as they can so it doesn’t burst on their watch. They are politicians after all. They only care about naked power .. So, ladies and gentlemen, we are in the real life Matrix—billions of people hooked to feeding tubes waiting for someone to turn the lights out at night .. And all this is happening while the major economies that drive global growth get weaker each day."
- Michael Covel
link here to the essay

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