<blockquote>'I’ll posit that to sustain the global government finance Bubble at this point requires both ongoing securities market inflation and ever-increasing monetary inflation. Rather suddenly it seems that global central banks are much less confident in QE infinity. There is serious disagreement in Japan as to how to move forward with monetary policy. And there were even this week rumors of ECB “tapering” ahead of the March 2017 designated end to its QE program. Say what? Are the ECB “hawks” ready to take control?
Meanwhile, markets seem to be pointing to an important downside reversal following this year’s historic melt-up in global bond prices. With Italian, Portuguese and UK bonds leading this week’s losers list, it’s tempting to imagine that fundamentals might start to matter again. And it’s going to be a real challenge to sustain global Credit growth in the face of rising bond yields. All bets are off if China’s latest attempt to tighten mortgage Credit actually works. That’s one scary Credit Bubble, and there are already indications that outflows are picking up again from China.'
- Doug Noland,
Matthew, Near Misses and Flash Crashes, October 8, 2016</blockquote>
Context '..economic growth cannot be conjured into being by top-down interventionism in the form of monetary pumping and deficit spending..'<blockquote>
'Deutsche Bank is a potential catalyst for the bursting of the global Bubble .. with global central bankers, lost their minds, with massive QE and negative rates..''..World Debt Hits $152 Trillion.''Countries suffering from .. “too much finance” .. use their financial resources less efficiently..'</blockquote>