by Gary Christenson
It was the best of times, it was the worst of times, it was the age of QE, it was the age of fiscal foolishness, it was the epoch of the Fed Put, it was the epoch of Greater Fool Theory, it was the season of golden light, and it was the season of fiat darkness.
My apologies to Charles Dickens. Miles Franklin sponsored this article by Gary Christenson. The opinions are his.
IT’S ALL ABOUT LIQUIDITY. Central banks created currency units and levitated stock and bond markets since the financial crisis over a decade ago.
1. Central bank balance sheets exceed $20 trillion. They created (from nothing) trillions of fiat dollars, euros, yen, Swiss francs, and pounds.