"A record 23 countries — accounting for a quarter of world GDP — now have central-bank policy rates of zero or less. A further six — including the United States — have policy rates of 1 percent or less," write Dr. Benn Steil and Emma Smith of the Council on Foreign Relations in a recent column for PBS.
It's a thought-provoking read which calls into question the efficacy of additional, unconventional monetary policy measures. Steil and Smith conclude:
"In short, the world economy is running on monetary fumes. We had better hope it picks up steam on its own, because policymakers are unlikely to be of much further help."
Dr. Steil and Hedgeye CEO Keith McCullough discussed the significant challenges facing investors as global central bankers continue to manipulate markets in a recent installment of Real Conversations on HedgeyeTV. "I wish these guys [at the Fed] would stop being rock stars and be more honest about what they don't know," Steil remarked during the interview.
We wholeheartedly agree.