I fully agree on the impossibility of tightening. Also, you're right about why there is a point of no return. The debt levels will simply keep on piling, which will necessitate more easing.
The real question is what the endgame of this will be.
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The situation is worse when one views it from the International perspective as opposed to just the US/Fed only one.
That is why the DOW is doing so well, it is the destination of a lot of international money. We could see the march towards 40K on the DOW in all of this.
As you said, these shifts are not going away. The hunt for return is going as long as the fixed income is basically dead.
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The bond market will be left for the central banks to prop up. Interesting times ahead to say the least.
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