Central Banks Have Shot Their Wad – Why The Casino Is In For A Rude Awakening, Part I
by David Stockman via Contra Corner blog
ZeroHedge.com
07/23/2015
There has been a lot of chatter in recent days about the plunge in commodity prices – capped off by this week’s slide of the Bloomberg commodity index to levels not seen since 2002. That epochal development is captured in the chart below, but most of the media gumming about the rapidly accelerating “commodity crunch” misses the essential point. To wit, the central banks of the world have shot their wad. The Bloomberg Commodity index is a slow motion screen shot depicting the massive intrusion of worldwide central bankers into the global economic and financial system. Their unprecedented spree of money printing took the aggregate global central bank balance sheet from $3 trillion to $22 trillion over the last 15 years. The consequence was a deep and systematic falsification of financial prices on a planet-wide scale.
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