I agree with you that QE5 is an inevitability at some point in the future, but was thinking it would come as a result of economic weakness, rather than a problem in the financial markets, although the turmoil and panic in UK Gilts last year is clearly a sign that this can happen in large, liquid sovreign debt markets. Have we become completely dependent on our Central Banks, not as lenders of last resort, but bond buyers of last resort in an ever increasing debt spiral that strenghtens that dependence as it piles up whilst becoming increasingly difficult to grow our way out of? How can we avoid this spiralling out of control?
Care to share your best guess on how high the FFR goes?
I agree with you that QE5 is an inevitability at some point in the future, but was thinking it would come as a result of economic weakness, rather than a problem in the financial markets, although the turmoil and panic in UK Gilts last year is clearly a sign that this can happen in large, liquid sovreign debt markets. Have we become completely dependent on our Central Banks, not as lenders of last resort, but bond buyers of last resort in an ever increasing debt spiral that strenghtens that dependence as it piles up whilst becoming increasingly difficult to grow our way out of? How can we avoid this spiralling out of control?