Finally The “Very Serious People” Get It: QE Will “Permanently Impair Living Standards For Generations To Come”
When “very serious people” (even if it is those who once ran now defunct Bear Steanrs) announce it, with a 6 year delay, they make the Financial Times.
On the other hand, when Zero Hedge said precisely this 6 years ago, it was cast as a tin-foil clad group of conspriators who see the worst in every situation.
What is “it”? This:
The long-term consequences of global QE are likely to permanently impair living standards for generations to come while creating a false illusion of reviving prosperity.
In this case, it was said this week by Guggenheim’s Chairman of Investments and Global Chief Investment Officer, Scott Minerd. We are happy that increasingly more “serious people” come to the same conclusion which we posited first a 6 years ago.
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Here is the full note:
The Monetary Illusion
As economic growth returns again to Europe and Japan, the prospect of a synchronous global expansion is taking hold. Or, then again, maybe not. In a recent research piece published by Bank of America Merrill Lynch, global economic growth, as measured in nominal U.S. dollars, is projected to decline in 2015 for the first time since 2009, the height of the financial crisis.
In fact, the prospect of improvement in economic growth is largely a monetary illusion. No one needs to explain how policymakers have made painfully little progress on the structural reforms necessary to increase global productive capacity and stimulate employment and demand. Lacking the political will necessary to address the issues, central bankers have been left to paper over the global malaise with reams of fiat currency.
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