NIRP Was a Dud. Are Central Banks Out of Ammo
By: Graham Summers
GoldSeek.com
Wednesday, 24 February 2016
A growing number of investors are beginning to realize that Central Banks are effectively out of ammo (for now).
Last week I noted that the Bank of Japan’s implementation of NIRP only generated a brief rally in Japanese stocks. That rally has since been obliterated as Japanese stocks collapsed nearly 8%.
This collapse has finally prompted the mainstream financial media to question NIRP. It’s a shame no one bothered to question NIRP, ZIRP, and QE when the markets were still rallying!
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H/T Bill King for noting the change in media tone.
I point this out because it indicates that we are at a critical turning point. Between 2009 and last week, the financial media rarely questioned Central Bank policy, if ever.
The fact that we are now seeing numerous articles criticizing NIRP and Central Banks, tells us that psychologically a significant shift has taken place. That shift will see growing criticism of Central Banks along with an increase in bearish sentiment amongst investors.
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