‘Cold Fusion' Is Citi's Answer to Fading Central Bank Firepower (QE TO INFINITY/INSANITY)

``If the world economy enters a downdraft, Steven Englander, global head of G-10 FX strategy at Citigroup Inc., proposes a more revolutionary response, akin to the "helicopter money" once advocated by Milton Friedman. In what he calls "cold fusion," politicians would cut taxes and boost spending. Central banks would then cover the resulting increase in borrowing by purchasing more bonds as part of a commitment to permanently expand their balance sheets. The easier fiscal policy would be covered by QE Infinity.'' -- Wow, sheer insanity... this is the sort of thing only "tin foil hatters" could suggest a couple years ago, in warning of what the governments would be forced to do... and now here it is, in "respectable" type...