Global economy in ‘epic scale’ change, says IMF’s Lagarde (Due to possible end of QE from the Fed)

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As Peter Schiff said, “Those who live by QE, die by QE.”

Christine Lagarde, the head of the International Monetary Fund is warning that economic conditions in much of the world are likely to get worse in the immediate future. She argues that an end to the Federal Reserve’s dumping of fiat currency into the US and world economy (which remains to be seen) will soon usher in a period of “turbulence.”

That’s pretty interesting because it’s not like the world economy has just been sailing along smoothly for the past 5 years. In fact I’d say we’re still mired in turbulence to a large degree. Those with financial assets have done well over the past 5 years due to the Fed pumping the stock market, (cotton candy and wishes are under the market however, to a large extent) but even in the USA, where we are closest to the printing press, things are plenty rough for lots of people right now.

Not that QE should continue, it shouldn’t, it should never have begun. “Unwinding” all the printing the Federal Reserve has done (there is no choice) will be painful which is a shame because had we let markets clear in 2008 and then implemented a sound money regime we’d likely be through this mess and experiencing the first organic economic growth on a wide scale in a couple of generations. Perhaps longer than that.

Click here for the article.