Fiscal and monetary largesse in the advanced states overwhelm the residual pockets of Covid damage in the OECD bloc

 Pent-up savings and a capex restocking cycle should pick up the baton as state support fades (the US fiscal impulse turns negative this quarter).

The UK is the world’s laboratory for opening up. Unfortunately it has done so with breathtaking incompetence and given the process a bad name.

It will soon become clear to market traders across the globe whether British hospitalisations will remain manageable or whether the pandemic again approaches the catastrophism of Professor Neil Ferguson. 

Every time the US Federal Reserve in particular has tried to extricate itself from the great QE experiment, it has set off bond market turmoil. The attempt in late 2018 to unwind QE by ‘automatic pilot’ led to a plunge in yields and a major Wall Street scare. The Powell Fed was forced to retreat.

Ambrose Evans-Pritchard Telegraph 20 July 2021

https://www.telegraph.co.uk/business/2021/07/20/markets-fear-inflation-much-delta-variant/

Covid: UK faces a difficult summer, says leading scientist

https://www.bbc.com/news/uk-57877033

Man who started QE; Lord Mervyn King, now member of committee that slams QE

https://englundmacro.blogspot.com/2021/07/man-who-started-qe-lord-mervyn-king-now.html