EDITOR NOTE: In the midst of the last crisis in 2008, the central banks of the largest economies in the world--US, EU, Japan, and China--held a total of $5 Trillion in assets. Opponents of QE were clamoring against the monetary easing that was certain to bring long-term destruction to the global economy. Only if they knew what was yet to come. Today, amid the pandemic economy, central bank assets have risen to a whopping $28 Trillion--460% more than in 2008. The risks of a much-feared inflationary environment has now shifted toward the real prospect of hyperinflation. Whether it ends up materializing or not, the pandemic has simply added an extra negative unknown to the duration and depth of economic damages as 2021 appears much more dismal the closer we approach it.
PDF Report Originally posted on Yardeni Research