Pater Tenebrarum- The complexity of global economics has gone beyond comprehension. It can no longer be explained by any of the mostly western based and now obscure mainstream economic theories. Central bankers are in denial, still egoistically believing that their PhD diplomas have given them something akin to divine knowledge. Until they realize that they do not have the answer, they will continue down the path of destruction, never pausing to look for better alternatives.
Of all the articles I read recently, these few sentences in Annaly Capital Management's Market Commentary (pdf) just about summed it all up..
These numbers are mind boggling. In less than five years, five central banks (ECB, BoE, BoJ, PBoC and the Federal Reserve) increased their balance sheets by about $8 trillion in the aggregate. I "borrowed" the chart below from nowandfututures.com, who has a chart for everything under the sun.
The balance sheets of five major central banks, the Fed, the ECB, the BoE, the BoJ and the PBoC since 2003, via 'nowandfutures.com'