Understanding The Results of Financialization – Part II – “Mationalization”

Jon Economy, Fiscal Policies, Market Commentary

WHY A NEW FORM OF ‘NATIONALIZATION’ WILL OCCUR
The extended period of Quantitative Easing (QE) and ZIRP have now left the major global central bankers in an untenable position because of the Era of Unlimited Leverage which it has fostered. According to the Bank for International Settlements, central banks’ combined asset holdings in the major advanced economies (the US, the eurozone, and Japan) expanded by $8.3 trillion over the past nine years, from $4.6 trillion in 2008 to $12.9 trillion in early 2017. Yet this massive balance-sheet expansion has had little to show for it. Over the same nine-year period, nominal GDP in these economies increased by only $2.1 trillion.

This post was published at GoldSeek on Sunday, 8 October 2017.