Central Bankers are absolutely terrified.
Case in point, yesterday Cleveland Fed President Loretta Mester suggested that the “next step” in monetary policy is “Helicopter money.”
Here are the key quotes:
However, Dr Mester signalled that in the event of another shock or economic downturn that most likely option would be more quantitative easing-style money printing.
“In the US we’ve done quantitative easing and I think that’s proven to be useful,” she observed.
So it’s my view that would be sort of the next step [helicopter money] if we ever found ourselves in a situation where we wanted to be more accommodative.
Source: ABC news
Let’s assess the progression closely…
· The Fed kept rates at ZERO for seven years.
· The Fed spent over $3 trillion in QE.
· The Fed raised rates just ONCE in the last 10 years.
· The Fed is now talking about implementing “helicopter money.”
This proves to us that the Fed knows the economy is not growing and the recovery is a false narrative.
Why else would the Fed be calling for the most extraordinary monetary policy in history…because the recovery is great and the Fed isn’t worried about anything?
Helicopter money is the “nuclear option”… the monetary policy that makes even QE look sane by comparison. It represents crossing the Rubicon and embarking on a trip towards Weimar.
Central Bankers are absolutely terrified. They know the whole recovery is one big lie. They know the system is on the verge of collapse. They know that the only thing propping the market higher is outright manipulation.
This whole mess is going to come crashing down. The bond markets know this.
The time to prepare for the next Crash is NOW, before it hits.
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Chief Market Strategist
Phoenix Capital Research
First published here: http://j.mp/29xHrB7