'..Somehow they remained oblivious that the trap of disorderly money printing had become the core problem.'<blockquote>'This week provided further evidence that the bursting global Bubble has progressed to a critical juncture, afflicting Core markets and economies. Ominously, few seem aware of the profound ramifications – or even the unfolding hostile market backdrop. Even many of the most sophisticated market operators have been caught off guard. There is, as well, scant indication that Federal Reserve officials appreciate what’s unfolding.
I was again this week reminded of an overarching theme from Adam Fergusson’s classic, “When Money Dies: The Nightmare of Deficit Spending, Devaluation, and Hyperinflation in Weimar German”: throughout that period’s catastrophic monetary inflation, German central bank officials believed they were responding to outside forces. Somehow they remained oblivious that the trap of disorderly money printing had become the core problem.
..monetary policies for almost 30 years now have been disastrous, a harsh reality masked by epic global market Bubbles.
..
There’s a crisis scenario that’s not far-fetched at this point. Fear that global policymakers are losing control spurs risk aversion. The sophisticated leveraged players panic as markets turn illiquid. The Trillions-dollar trend-following and performance-chasing Crowd sees things turning south. Worse still, illiquidity hits confidence in the ability of derivative markets to operate orderly. In short order securities liquidations and derivative-related selling completely overwhelm the market.
..
.. At the minimum, global markets will function poorly as faith in central banking begins to wane.'
- Doug Noland,
Party Crashing, October 3, 2015</blockquote>
Context<blockquote>
'..the unfolding global crisis has penetrated The Core.'</blockquote>