from Zero Hedge
In what can be described as Bank of America at its most apocalyptic, the bank’s currency strategist Athansios Vamvakidis takes us on a tour de force of where we’ve been, going through what comes next, and which culminates in what may well be the 9th circle of financial hell.
Starting with the “three red flags” that have recently emerged across global economies, he then explains why nobody cares and why “markets remain optimistic” – the reason is MMT, in case anyone is confused – as “deflation and not inflation is the risk today.” As a result, nothing “prevents more fiscal policy stimulus, funded by more money printing” while “central banks keep policy rates low for as long as necessary, to help governments deal with the massive debts they are accumulating? Effectively, this is what markets are pricing in” as without inflation there is no “budget constraint.”