Indeed, loose monetary policy has distorted
bond markets around the world but perhaps
nowhere more than in Germany. Germany
openly defied logically reasoning ,
provided sanctuary for rainbow migrants,
materially in excess of its abilities , and now is
suffering the after effects.
Is 2018 the year
when investors look at the German economy
growing at a nominal rate of four per cent
and conclude the ten-year bund yield, which
stayed under half a per cent for most of 2017,
is completely wrong? The monetary policy
has watered down the GDP , it has also cautioned
investors whose perception of risk is changing fast.
Given bond yields have
been a key driver of buoyant markets across
large parts of the world in recent years, the
ramifcations of higher yields are signifcant. However ,
lower productivity by rainbows , negates a bond increase
for fear of a debt default.