Seismic Moment

I've been feeling so much older
Frame me and hang me on the wall
I've seen you fall into the same trap
This thing is happening to us all
--Crowded House

Nice missive by Andrew Jeffery on the urban myth surrounding central banking. Perhaps the greatest misperception of all is that central banks impart stability to the financial system.

On the contrary, over the long haul, central bank interventions impart tremendous stresses on market landscapes. At some point, the potential energy built up by these distortions turns kinetic. We're experiencing the energy release from one of these policymaker-induced earthquakes currently.

For perspective on just how extreme central bank intervention has become, check out this video.

We'll need to recalibrate the Richter scale for this one.