This morning stock futures are rising as steps are being taken to reopen parts of the global economy. In addition, Japan has announced it will engage in further “unlimited’ bond buying/money printing. For the past decade, the US has been following Japan’s lead in this policy of massively expanding the money supply. We have to ask; how much further can central bank’s expand their balances sheet and increase the money supply without significantly devaluing their currencies and bringing with it a dramatic spike in inflation? Keep in mind, we are currently experiencing the most massive deflationary shock of all time. So, these banks along with the Federal Reserve feel they have rightly intervened in order to prevent the absolute certainty of a deflationary depression. But, what are the long term ramifications of such a policy? In today’s report, I will provide my analysis on this dilemma.

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