"It seems highly likely that, when the crash starts, the Central Banks of the World will create and distribute vast amounts of new ‘money’ in an attempt to keep everything ‘up’."
In Japan after all that QE and interest rates at zero since 1995 expectations of zero inflation and zero interest rates are firmly baked in. Anyone under 40 has never really known anything else. This is their new normal.
"The Fed stopped adding to its balance sheet in 2014 and it now stands at more than $4 trillion, compared with around $850 billion before the crisis."
But because the economy has grown and the financial world has changed so much since then, officials say there is no going back to the old level. More likely, these officials say, the Fed will aim for a balance sheet size of $2.5 trillion, or a reduction over several years of about $2 trillion."
