Such distortions reverberate throughout the system, affecting every asset class from commodities to real estate. They also create a domino effect of spreading interventions, wack-a-mole style. So to summarize, after ten years of "smart" interventions by astute policymakers we are now left without any proper market pricing mechanism for:
1) US interest rates and exchange rates - both manipulated by the Fed
2) Oil prices - which are manipulated on a second order by the undervalued Dollar
3) The Euro exchange rate - manipulated by the ECB and China
4) Sovereign yields in Europe - manipulated by the ECB and the PBOC
5) The Swiss France and the Yen - now both manipulated by the local central banks.
It is no wonder international liquidity is vulnerable to a squeeze and markets are nervous. Why anybody is surprised that we have been in bear markets for the better part of the last ten years is beyond me. Never in my 40 year career have I seen such a combination of incompetence and intellectual arrogance in the ruling class.
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