In Two Years, Central Banks Will Own ½ of Global GDP

29.09.2016 • Central Banks

From Bill Bonner – Bill Bonner Letter (United States) –

We are becoming calloused to strangeness. Things that we never thought we’d ever see are appearing every day. We’re becoming blasé about it.

The oddness began years ago, but in September things got weirder…

First, two private companies – one German and one French – borrowed money at less than zero interest. As far as we can tell, this was a first in recorded history.

Second, eminent economist Ken Rogoff released his new book, arguing that cash is a “curse” and that it should be banned. Just eliminating the $100 bill, says Mr. Rogoff, would cut the supply of physical dollars by 80%.

And third… strangest of all… central banks’ ownership of the world’s assets rose to the equivalent of 40% of global GDP. Two years from now, they will own half of it… if they continue at this pace. Which prompts a first question:

“Uh… where you goin’ with this?”

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