Two events in 2013 stand out as pivotal. The balance sheet of the U.S. Federal Reserve was expanded 37 percent to surpass US$4 trillion. Secondly, the Bank of Japan, another serial monetary polluter of the world, expanded its balance sheet by 42 percent.
Effectively, this helped create enormous money flows and portfolio shifts in the overall financial system. This would not have been thought possible without destabilizing the broad global financial order. Yet it has occurred—and is continuing to occur—to the riotous jubilation of proverbial Wall Street.
