Does anyone else feel that market participants have become zero interest rate quantitative easing junkies after 2008? How long can this artificial trend last? Positive economic news have become bad news for the markets, as they translate it into possibility of stimulus reduction, interest rate hikes (no cheap cash dope anymore). Balance sheet of BOJ after QQE is in such disastrous state that without hyperinflation Japan steadily but surely moves toward bunckrupcy. If for some reason Japan stops being carrier for hedge funds' carry trades their financial system is done. ECB's balance sheet is nearing 3 trillion euros again without much improvement in real economy.
S&P 500 has rosen more then 300 %, SSEC more than 150 % after 2009, all while copper, indicator of real global production growth, is in persistent decline.
More and more oil analyst indicate that we have reached global peal oil production and yet we are overextracting oil like there is no tomorrow all while chinese industry is cooling.
Old central bank's policies are clearly not working anymore. We have global hyperproduction (oversuppy and under demand) but CBs are still throwing tons of cash to financial system and producers and then ask themselfs why there are no real inflatory pressures. Are they ideologicaly blind? Is it so hard to comprehend that Paul Krugman's helicopter money is the only logical solution to fight lack of consumer demand and deflation (other then total destruction of infrastucture in world war)? Are we nearing the point when things will get very ugly worldwide?
S&P 500 has rosen more then 300 %, SSEC more than 150 % after 2009, all while copper, indicator of real global production growth, is in persistent decline.
More and more oil analyst indicate that we have reached global peal oil production and yet we are overextracting oil like there is no tomorrow all while chinese industry is cooling.
Old central bank's policies are clearly not working anymore. We have global hyperproduction (oversuppy and under demand) but CBs are still throwing tons of cash to financial system and producers and then ask themselfs why there are no real inflatory pressures. Are they ideologicaly blind? Is it so hard to comprehend that Paul Krugman's helicopter money is the only logical solution to fight lack of consumer demand and deflation (other then total destruction of infrastucture in world war)? Are we nearing the point when things will get very ugly worldwide?
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