"The ability of the novel coronavirus to spread very easily (before symptoms and through droplet infection) implies that it is likely to have already spread wide across the globe, and that there's a potential for exponential growth in infections." 2/
"This, combined with the aim of the Fed to taper its term repo -operations starting from February (30 -day repo ops have already been tapered), greatly increases the likelihood of a serious correction or a crash in global asset markets in February and March." 3/
1) Will the ECB be able to provide support for sovereign bond markets through QE? 2) Will national authorities accept the terms associated with possible bailout loans? 3) Will national political leaders continue to support the euro?
The decision of Germany's Constitutional Court (CC) basically crushed all hopes of debt monetization and 'helicopter drops' of money in the EZ.
"It is possible that the banking sector and the world economy were saved by using too strong methods in 2008. As a consequence of this, it is also possible that the world economy is more like zombie economy, where... 3/
In August, we detailed, why central banks have become a threat to the #economy .
"The exceptional measures of central banks were crucial in the acute phase of the crisis, but [...], they turned into a serious and dangerous drag on the global economy." 2/ gnseconomics.com/en_US/2019/08/…
In September, we explained why the turn to massive monetary easing is unlikely to reinvigorate the real #economy.
"the [...] economic downturn did not start as a result of trade issues, but rather from the diminution of massive Chinese debt-stimulus." 3/ gnseconomics.com/en_US/2019/09/…