Are the Central Banks out of dry powder, as several notable pundits warn?
Not at all.
It is easy to understand why some experts believe so. Global debt loads (government, corporate, personal) are grinding up to new heights. Economic growth remains anemic, labor markets are soft. Deflationary winds are swirling and pricing power is weak.
Real median household income – stagnant.
All this despite intense coordinated efforts by Central Banks to bail out member banks with debt relief and massive liquidity infusions, Central Banks engaged in agency debt purchases, MBS purchases, sovereign debt purchases, zero-interest rate policies, stimulus programs. All this has done little or nothing to recharge the economic system….
ZeroHedge 11-23-15 – Excerpts:
“This is the final spasm of a dying bull market that has been entirely fueled by central bank money printing. But if you look at the underlying trends both in the domestic and in the global economy and the outlook for earnings, everything that matters is heading south and the real global recessionary forces are just getting started.”
The Central Banks, however, do have one big weapon, a massive keg of dry powder they have never acknowledge – one that should have employed long ago: aggressive targeted liquidity infusions – direct to citizens.
It is time to move.
The Leviticus 25 Plan 2015 – $70,000 per U.S. citizen The Leviticus 25 Plan 2015 (1212)