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The Man Nobody Wanted to Hear: Global Banking Economist Warned of Coming Crisis - SPIEGEL ONLINE


Central bank prophet fears QE warfare pushing world financial system out of control - Telegraph 

He said the global elastic has been stretched even further than it was in 2008 on the eve of the Great Recession. The excesses have reached almost every corner of the globe, and combined public/private debt is 20pc of GDP higher today. "We are holding a tiger by the tail," he said.


Mr White said QE is a disguised form of competitive devaluation. "The Japanese are now doing it as well but nobody can complain because the US started it," he said.

"There is a significant risk that this is going to end badly because the Bank of Japan is funding 40pc of all government spending. This could end in high inflation, perhaps even hyperinflation. 


He deplores the rush to QE as an "unthinking fashion". Those who argue that the US and the UK are growing faster than Europe because they carried out QE early are confusing "correlation with causality". The Anglo-Saxon pioneers have yet to pay the price. "It ain't over until the fat lady sings. There are serious side-effects building up and we don't know what will happen when they try to reverse what they have done." 


… global central banks were falling into a trap by holding real rates too low in the 1990s, effectively stealing growth from the future through "intertemporal" effects.

The painful irony is that central banks may have brought about exactly what they most feared by trying to keep growth buoyant at all costs, he argues, and not allowing productivity gains to drive down prices gently as occurred in episodes of the 19th century. "They have created so much debt that they may have turned a good deflation into a bad deflation after all." 


中央銀行がはまった罠 - Think outside the box

William White: Are Central Bankers Trying To Do Too Much? - YouTube

William White - Anatomy of Crisis: Economic Theory, Politics and Policy - YouTube

さらに金融緩和を、国債まだ買える 原田泰・早大教授:朝日新聞デジタル

QQEとMMT - Think outside the box