China Cuts Benchmark Rate, Draghi Says Inflation Must Rise ASAP sends Stock Markets to Heaven!

Faced with a massive dread of deflating bubbles, as revealed by the correction last mid-October, central banks of major economies have been frantically juicing up asset markets through verbal persuasion (promises of more steroids) and through policies

We see more of the same with the Chinese government joining the bandwagon today...

From Bloomberg:

The euro weakened and bonds in the region extended gains after Mario Draghi said the European Central Bank must drive inflation higher. Stocks extended gains after China cut interest rates, and the yen strengthened.

Again this validates my theory of the politics of monetary easing policies: I recognize the problem of addiction but a withdrawal syndrome would even be more cataclysmic.

So in the case of China, debt problems must be solved by having more debt! Solve alcohol addiction with even more alcohol!

Wall Street just adores these bailouts having been implicitly directed to them…

European stocks having a sugar high  (as of this writing)

Tape from Bloomberg.

..and so with record US stocks (futures) on already on a quasi vertical ramp (from CNN)