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Qe-Forever Cycle Will Have An Unhappy Ending

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States that the economy with current debt/GDP ratios needs to grow at 6% to cover the interest repayments .... The ZH link has an opinion so has bits of the text.

Paging Mr Minsky, paging Mr Minsky...

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How do we know when QE really started. Why would central banks need to tell us they are doing QE. The answer, is to instil confidence. And that is all to it.

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There is no question about how QE will end.

They can either voluntarily abandon their schemes or there will be a total collapse of the entire financial system.

There is no escape.

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QE is more or less a global phenomenon. The question is who will end it and how/when/why?

It will collapse of its own accord. QE is a private sector debt enabling mechanism, ultimately dependent on solvent borrowers. Historically, a private sector debt/GDP ratio of >150% is a critical precursor of financial crisis (Richard Vague), beyond which point the private sector becomes rapidly unable to service its debts. The Death Zone. Almost all of the world's economies are now either in it, or are approaching it fast. Debt carrying spare capacity is all-but exhausted.

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