Iran, North Korea and the world’s other despots may be able to take over the world without going nuclear or even firing a single shot.
That’s because much of the free world seems bent on destruction from within, done in by a Keynesian death spiral.
Apparently, no one believes in capitalism anymore. Instead, central bankers, who now control the economy in most of the world, are hell-bent on continuing to dig the negative-interest-rate hole ever deeper, until it is impossible to climb out.
While central bankers have only made matters worse with their easier-than-easy monetary policies, they’re so deeply invested, and so far down the rabbit hole of negative interest rates, they can’t turn back.
It may not be working, but admitting as much would bruise many strong egos, scare investors and sink stock prices. So they keep digging.
A Bigger Bazooka
A year ago, Mario Draghi, head of the European Central Bank, announced the start of an asset-purchasing program similar to the Federal Reserve Board’s quantitative easing (QE) program through which the ECB would spend €60 billion a month on Eurozone government bonds.