We’ve Reached the End Game For Central Bank Intervention

We’ve reached the end game for Central Bank intervention: When confronted with excessive debt, you can either “take the hit” or you can try to inflate the debt away.  In 2008, the Central Banks, lead by the US Federal Reserve, decided not to “take the hit.” They’ve since spent trillions of Dollars propping up the financial system. By doing this, they’ve essentially attempted to fight a debt problem by issuing more debt.  The end result is similar to what happens when you try to cure a heroine addict by giving him more heroine: each new “hit” has less and less effect.