NOTHING HAS CHANGED

How do you spell catastrophe? Well, it starts with the letter c and finishes like this: central banks.

Nothing has changed except the value of a bunch of paper assets.

This is an open quote to the Martin Wolfs, the Mario Draghis and global politicians and bureaucrats everywhere.

Central banking has lost its way. Trapped in a post-crisis quagmire of zero interest rates and swollen balance sheets, the world’s major central banks do not have an effective strategy for regaining control over financial markets or the real economies that they are supposed to manage. Policy levers — both benchmark interest rates and central banks’ balance sheets — remain at their emergency settings, even though the emergency ended long ago.

While this approach has succeeded in boosting financial markets, it has failed to cure bruised and battered developed economies, which remain mired in subpar recoveries and plagued with deflationary risks. Moreover, the longer central banks promote financial-market froth, the more dependent their economies become on these precarious markets and the weaker the incentives for politicians and fiscal authorities to address the need for balance-sheet repair and structural reform.

Here's the link.  http://www.marketwatch.com/story/the-fed-is-heading-for-another-catastrophe-2014-12-23?