How bailout debt is painting governments and central banks into a corner

South China Morning Post/Tai Hui

“Central banks, under pressure to buy assets and keep rates down to support government debt, have promised to keep it temporary to avoid the risks of inflation and capital flight. But unwinding the policy will prove very difficult.”

USAGOLD note:  As we saw in the 2013 Fed taper tantrum. As of Friday, the Fed’s balance sheet stood at just under $7 trillion – nearly double what it was 12 months ago – and a place from which it may not be able to locate the exit.

Repost from 7-13-2020