Jump to content
House Price Crash Forum
interestrateripoff

Qe-Forever Cycle Will Have An Unhappy Ending

Recommended Posts

https://next.ft.com/content/4905707a-57af-11e6-9f70-badea1b336d4#axzz4G5T1eeGk

http://www.zerohedge.com/news/2016-08-01/satyajit-das-slams-policymaker-ignorance-qe-forever-cycle-means-catastrophe-inevitab

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...

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   100 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.