Is the Fed About to Light the Fuse on a $9 Trillion Debt Bomb?
by Phoenix Capital Research
ZeroHedge.com
12/07/2015
The US Federal Reserve (Fed) and European Central Bank (ECB) have created a very dangerous situation.
Throughout the last six years, there has been a sense of coordination between the Fed and ECB. This was evident both in terms of where capital went as well as how it was delivered via monetary policy.
For instance, when the Fed released its discount window documents in 2011, it became clear that most of the funds from QE 2 actually went to foreign banks located in the EU.
Similarly, when the EU banking system was close to imploding in 2012, the Fed coordinated with the ECB to announce QE 3 in an effort to prop up the EU banking system and calm overseas jitters to aid the Obama administration in its re-election campaign.
In short, from 2008 to 20414, the Fed and ECB worked together.
However, at some point this relationship was set to fracture. True, global Central Banks want to work together to maintain stability… but when every Central Bank is engaged in the competitive devaluation of its currency, at some point the relationship between Central Banks would become fractured as they individually had to choose to aid themselves over each other.
That point is today…
The Rest…HERE
