(Dollar Photo Club)
It Won't Be Long Now: The End Game of Central Banking Is Near
By David Stockman
Thursday, 08 Sep 2016 07:28 AM
In addition to the political revolt of the rubes, the establishment regime is now imperiled by another existential threat. To wit, the world’s central bankers have finally painted themselves into the mother of all corners.
Literally, they dare not stop their printing presses because the front-runners and robo-traders have taken them hostage. Recent developments at all three major central banks, in fact, provide powerful evidence that the end of the current Bubble Finance regime is near.
Thus, today’s Financial Times carries a piece on the September 1st milestone of one trillion Euro of bond purchases under the ECB’s QE policy, and the dilemma it faces about continuing beyond next March’s end date for the program. In a word, it is running out of sovereign debt to buy, yet even a hint that it intends to stop could spook the “market” into a drastic sell-off:
A global collapse in eurozone bond yields since Britain’s vote to exit the EU has dramatically reduced the stock of eurozone government paper standing above the yield threshold set for the ECB’s €1.7tn bond-buying project — raising concern that the ECB will have to make sweeping changes to avoid running out of bonds to buy….