20 April 2015 at 7:40 GMT
"We have zero growth, zero inflation and zero hope.", a gloomy outlook from Saxo Bank's Chief Economist Steen Jakobsen but based on his recent global travels meeting business leaders and key investors whose shared negative outlook was striking.
This week UK inflation came out as zero for the second month running. German bunds are hovering close to a negative yield, Swiss bonds are already in minus mode. Growth is elusive and artificial in many cases with almost thirty central banks resorting to monetary easing this year alone.
The combination of zeroes is a recipe for brewing resentment according to Steen: "Every country I visit has terrible macro policies, and features a political class who are mainly interested in maintaining the status quo (as well as a dynamic micro economy). There are always business people and students who are willing to do more and better – to go higher, longer and further – but they are drowned in this "nothingness reality".
Steen outlines his predictions of a crisis correction, the only outcome of a zero environment in his opinion. Steen believes a Fed hike will act as a margin call on the global economy, "Expect the Federal Reserve to issue a margin call on asset inflation in June or September, a Grexit, and a much stronger US dollar (EURUSD at 1.10) in a final move where lack of liquidity and shortage of access to USD funding will create a “mini-crisis”.