The S&P is back within 5% of its all-time highs and the risk-on mode is in full swing – “Bad news is good news” – as the market relies on the folly of central bankers to flood the world with yet more liquidity. Needless to say, the US recession is well-established at this point – unless of course, your name is Janet.

Having said which, apparently even QE-crazed Kuroda has started to realize that QE does not work. Of course, letting the market work is not an option, so plan B is negative interest rates, which of course means eliminating cash so that everyone can be appropriately punished for saving.

We’re so far off in the weeds that we can’t even see what a functional economy looks like from here, let alone hope to attain one without an intervening catastrophe.

30-year government bond yields.

Country Feb 23/16 Feb 18/16 Jan 30/15
Japan 0.97% 1.02% 1.26%
Germany 0.87% 0.96% 0.996%
USA 2.62% 2.69% 2.25%
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