China will have to devalue by more than 20 percent; Central Banks Have Failed - Napier

``he goal of QE is to push up nominal GDP growth. That should eventually reduce the debt to GDP ratio. What we are observing now across the world is the failure of that kind of policy. Once people realize that failure, equity markets will come down because so much money has been bet on the functioning of that policy. People are going to realize that boosting nominal GDP is not the way we bring down the debt ratios. It leaves us with much more painful ways to to reduce debt, such as austerity, allowing for defaults or massive political manipulation of various prices in the market places.''