The World Has Entered the Terminal Phase of Central Banking

Stocks traded to new record highs last week on the back of new central bank initiatives to prop up struggling economies around the world. The People's Bank of China announced an unexpected cut in its benchmark lending and deposit rates for the first time since 2012. Hours later, ECB President Mario Draghi made another promise that his central bank would take new steps to bolster European growth and the ECB announced that it had begun buying back asset-backed securities. Coming two weeks after the Bank of Japan and Japan's large public pension fund announced manic interventions into financial markets to support that country's failing economy, investors have dismissed any concerns that the end of QE in the U.S. will deny them the liquidity they have feasted on for the last few years. Since the October flash sell-off, markets have gone parabolic and totally disconnected from the struggling economies that are supposed to support them. The post The World Has Entered the Terminal Phase of Central Banking appeared first on Money Morning - Only the News You Can Profit From .
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