We’ve been warning on the risks of so called unorthodox central bank policies, including zero and negative interest rates and asset buying programs, for several years (see, e.g. this, this and this). Now, the era of global quantitative tightening, enacted by the Federal Reserve, will bring an end to the “global synchronized growth”.
Several economic indicators have turned to the south at the… Read More »Zombies and the end of the ‘global synchronized recovery’
Since early February, the financial markets have been wobbly. After the deep plunge (worst point-wise fall) of the Dow Jones in February 5, the stock markets have recovered but the market volatility has remained elevated. Many have blamed the rising…
The debt-stimulus of China and the pro-business policy of Donald Trump have given a strong lift to the global economy, but the imbalances behind the façade of this economic expansion continue to grow. These detrimental development during the past 9 years is currently converging towards a “perfect storm” likely to engulf the global economy within two years.