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News Story Source: shtfplan.com by Charles Hugh Smith
This is the lesson of the past eight years: if a problem can be solved by creating new money and buying assets, then central banks will solve that problem.
Problem: stock market is declining. Solution: create new money and buy, buy, buy stock index funds. Problem solved! Market stops falling and quickly rebounds as "central banks have our backs."
Problem: interest rates are inhibiting lending and growth. Solution: create a few trillion units of currency and buy enough sovereign bonds to drop interest rates to near-zero.
Problem: nobody's left who can afford to buy the new nosebleed-priced flats that underpin China's miracle-grow economy. Solution: create new currency, lend it to local government agencies who then buy the empty flats.
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