As it becomes ever more clear that ZIRP and NIRP are not only entirely inadequate when it comes to reviving global growth and trade, but in fact may be counterproductive for a number of reasons, the world is looking for other answers.
One week ago we showed something the oil bulls did not expect: oil producer hedging had started.
As a trader cited by Reuters said "Brent's flattening contango since January comes as many producers want to cash in immediately on recent price rises. They've been heavily selling 2017/2018 and beyond, and it shows that they don't quite trust the higher spot prices yet."
It's all starting to fall apart for Japan, whose "lost decade" now appears as though it may turn into a "lost forever" and that's if QQE doesn't dead end in "failed state" status in 2018.
A rebound in inflation is nowhere in sight (even when Japan attempts to game the numbers by removing components where prices are declining) and as we saw last month, the "devalue our way to prosperity" idea isn't working out so well as trade is collapsing in the face of the global currency wars. Wage growth is of course a complete joke as we've outlined on too many occasions to count.
Submitted by John Rubino via DollarCollapse.com,
Not so long ago the financial world viewed certain numbers as limits beyond which lay trouble. Interest rates near zero, for instance, were thought to risk destabilizing the banking system. And government fiscal deficits above 3% were considered so dangerous that exceeding this level was prohibited by the Maastricht treaty that all eurozone members were required to sign.
Despite collapsing earnings expectations and weaker than expected macro data, US equity markets have 'lifted off' since mid-February erasing the entire year's losses...
And all it took was the coordinated easing from most of the world's largest central banks...
h/t @NorthmanTrader