Remember how the Fed, ECB and others all claimed ZIRP and QE were about generating economic growth, making mortgages more affordable, and helping consumers?
What do formerly successful hedge funds going out of business, wacky economic data points, and the election of populists like Donald Trump all have in common?
Put simply, inflation is appearing all over the US financial system. And yet, the Fed continues to peddle the ridiculous assertion that inflation is "too low."
With China now experiencing higher bond yields (higher borrowing costs in the bond market), all FIVE of the world's largest bond markets are warning of rising inflation.
The ECB, like all Central Banks is now cornered: either it stop printing money and let stocks collapse... or it continues to print money, unleashes inflation, and pops the bond bubble.
Central Banks are now cornered: either they stop printing money and let stocks collapse... or they continue to print money, unleash inflation, and pop the bond bubble.