Money printing gone mad


Yesterday we discussed a few graphs that question the so called global growth engine of the US.  Today we provide 2 graphs that give further insight into what’s going on globally.  Firstly, for the first time in history the 4 largest western economies are monetising (printing money to purchase their own debt) more than they are issuing sovereign debt.  So strung out is this stimulus that we now have $3.6t or 16% of the total government bonds issued yielding negative returns.  And you wonder why shares are at highs in a sick global economy?  Money literally has nowhere else to go in a search for yield.  Have a look at what has just driven the Aussie stockmarket to a 6 year high… there is now a preoccupation with yield over company fundamentals.