Perpetual QE

"You hear that Mr Anderson? That is the sound of inevitability."
--Agent Smith (The Matrix)

Chatter is increasing that another round of QE is pending. Can there be any doubt that more QE awaits? Central banks have pegged short term rates at zero. This policy is not moving the economic needle. There is nowhere left to go with this policy except negative rates, which of course cannot be ruled out.

Thru past and extant QE programs, central banks have loaded $trillions onto their balance sheets--also with little economic effect.

As we have seen in the past, scant evidence that their programs are working does not deter central bankers. They will certainly reach for more QE to show people that they know what to do--even when what they do has been shown to be ineffective.

Rinse and repeat. Welcome to the world of perpetual QE and financial repression.