Helicopter Money (OMF) Coming During the Next Draw-down
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The bursting of the 2000 Dot-com Bubble along with the 2008 Financial Crisis were wake up calls which frustratingly went unheeded.
Central Banks and Government policies expediently reacted to both with policies which can best be described as simply "Triage". The underlying problems were politically avoided, while the resulting triage has only addicted an already weakened economy to the morphine of liquidity injections and credit pumping.
The world's developed economies are now clearly on "life support", which has little hope of ever achieving economic resuscitation while the 'un-quarantined' global economies are infected with the disease of; political gamesmanship, market manipulation and patch work policy solutions.
Didn't Work - Made Matters Worse
Quantitative Easing in its' many derivations along with ZIRP, have failed miserably other than as immediate 'knee jerk' reactions to; failing structural global growth, unsustainable debt leverage, global imbalances and over financialization of a weakening capitalist host system not being properly treated.
Spin & Illusion - Artificial Life Support
The capitalist system's life blood is savings which comes from the wealth created by productive use of capital. When capital is used for consumption versus productive investment, the capitalist system is inescapably weakened with mal-investment. Like a fragile Eco-system, imbalances will quickly destroy it.
Unless the mal-investment is treated through managed "withdrawal" (dare I say recessions or depressions?) the problem inevitably gets progressively worse until the system catastrophically fails. Market clearing events are often the cardiac-defibrillator most required if the degeneration is left untreated for too long a period.
What to Expect?
Disappointingly, today we do not have the visionary nor bold political leadership required to address this spreading global problem. Therefore the path ahead is clear. Expect more and larger doses of the same 'morphine' and even more creative and destructive ways of avoiding the realities of the disease. The patient will remain on life support until yet another vital organ of the capitalist system fails.