Might as well face it, the Fed has thrown in the towel and we're headed back to ZIRP and QE, permanently. Well not permanently, because as Jim Rickards points out, there are confidence limits beyond which the world will eventually lose faith in the dollar.
You can see where this is heading. The question is how long can they hold it together before going to the SDR/financial reset? Those two billionaires (Giustra and Dalio) seem to think we have 2-3 years before things really fall apart, but it really depends on when the next big recession and/or financial crisis hits.
The Fed still has some limited 'ammo' - they can go to ZIRP, then NIRP, and take their balance sheet up to $6, 8, 10 trillion. But as Rickards says, at some point the invisible threshold is breached and you have a dollar crisis.
Already US Treasury auctions are being poorly received, and the Fed is having to buy up big portions of its own debt issuance. When you see the central bank having to buy its own debt, that's the beginning of the end, and they've been doing that (QE) since the 2008 crisis.
Just too much global debt is the problem, and the eventual solution will be a bailout of the world with the SDR.
