The Definition Of Insanity
... Is shown on the chart below, which compares indexed growth, or lack thereof, in G-5 GDP and compares it to consolidated central bank balance sheets. We bring this up because following this morning's announcement by the ECB's Praet that the European central bank may launch a round of QE (of questionable legality) it is only a matter of time before the red line really takes off and insanity hits truly unseen levels.
There is little to add to this except for the punchline from reformed QEaser Andrew Huszar, which was the following: "We were working feverishly to preserve the impression that the Fed knew what it was doing."
Pretty much says it all.
- advertisements -