FAST FIVE: Albert Edwards: "There Is An Earthquake Happening In Government Bonds"

Published by on

To wit: One thing that amazes me about the current cohort of global central bankers is the lack of insight into the fact that their extreme loose monetary policy and financial repression may actually be making deflation in the real economy worse – despite clearly succeeding in creating rampant inflation in financial assets.

To be sure some of the major players in the central banking orbit, such as ex-Fed Governor Kevin Warsh, have broken out of the QE group-think that grips the minds of central bankers.

We can assure readers that anyone who is willing to call out the Fed and tell the truth about the dogma behind its actions, will never be admitted on the actual Fed, so there little point in discussing Shelton's fate: she will never make it through the nomination process.

Worse, a recession may not only be close, it may in fact be in the readview mirror; This is notable because with the US economy on the edge of the longest expansion on record – recall that in July, this will become the longest US economic expansion on record at 121 months.

(charted below is the length of past expansions 1854-today).

Categories: ZH