- Global central banks are engaging in "monetary schizophrenia," Societe Generale's Albert Edwards says.
- Central banks are actively fuelling the credit bubbles they seek to deflate, Edwards says.
LONDON — Societe Generale's notoriously pessimistic strategist Albert Edwards let rip at central banks, accusing them of "monetary schizophrenia" in their approach to policy.
His criticism is not focused entirely on Carney and the Bank of England.
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Here Edwards is one last time (emphasis ours):
"I do not think this debt time-bomb is specific to the UK. We are in a QE, zero interest rate world, where central banks are effectively force-feeding debt down borrowers’ throats. They did it in 2003-2007 and they are doing it again. Most of the liquidity merely swirls around financial markets, but there is certainly compelling evidence now of a consumer credit bubble in both the UK and US (as well as a corporate credit bubble in the US)."