"We've
created a global debt monster that's now so big and so crucial to the
workings of the financial system and economy that defaults have been
increasingly minimised by uber aggressive policy responses. It’s
arguably too late to change course now without huge consequences... It’s
been many, many years since free markets decided the fate of debt
markets and bail-outs have generally had to get bigger and bigger." Jim
Reid, head market analyst at Deutsche Bank (Germany's largest bank)
Isn't
he telling us that central bankers have now painted us into a "debt
monster" corner from which there is no escape? I'm pretty sure that's
what he's saying. But he then also admits that they will have no choice
but to continue, continuing and even increasing the bailouts without
end. Unbelievable!
Amazingly, it's even worse in China:
"China's Services PMI printed at its lowest on record and its biggest 3 month slide in 16 months."
Monday, February 3, 2014
The Global Debt Monster
