Central banks around the world are telling you that all is fine. No problems, you can put yourself to sleep and expect that nothing will happen. But why are the actions of the central banks around the world doing different?
It is very safe to state that the central banks are just lying to us.
For over a decade the FED printed unlimited amounts of money. This was to save the financial system. The system is saved. The debt bubble is larger than prior to the crisis of 2007-2008.
But the end of the FED stimulus was not the end of it. The next central bank was ready to create an even larger bubble. This time it was the ECB. Ready to take over the disastrous policies from the FED.
If we look at the disaster of the FED policies, then we need to keep in mind that the FED printed more money in a few weeks than it did in 100 years!
So what did the FED do? They intended to stop quantitative easing. After which markets started to slip away. This is not allowed! A new collapse is not what they needed. So they resumed printing money.
The plan was that in 2019 the central banks would end the stimulus programs. But this was not possible. As we just saw.
Keep in mind that central bankers are in bed with politicians. They have the same set of moral grounds. The same ideology and the same standards. Do you trust politicians to always speak the truth? No, you don’t. So what about the central bankers?
With the emergency injection in the repo market, we see that the FED is back into emergency injections. To save the system. But the system is not in danger. But if you can’t trust a politician, can you trust a central banker? They have the same moral values or lack of values.
It makes sense, from their perspective, that they are lying. After all, they are the only lying when things get serious. What does it tell you?