Governments and Central Banks around the world are behaving with absolute INSANITY.

This blogpost by George Washington is putting it very mildly.
He correctly states that governments around the world are doing the exact same thing that led up to the financial crisis of 2008.
http://www.washingtonsblog.com/

But at least in the lead up to the 2007 bubble creation and bursting the politicians and Central Bankers could make the excuse of total ignorance - now they have none.

Europe's politicians are making the European debt crisis even worse with their misguided policies to kick the can down the road.
The "austerity" programs in the Eurozone periphery aren't austerity programs.
They are cutting spending on the wrong things mostly and increasing deficits and the debts due to the resultant increases in unemployment and social welfare payments (and interest payments).
The amount of debt in the Eurozone (sovereign and bank debt) isn't going down.
The reported amounts are actually going up as more and more accounting fiddles come to light.

Japan has been printing for over 20 years without it doing any good at all and is now doubling down on the printing. They are going to print $1.4tn over 2 years.
http://www.acting-man.com/?p=22506#more-22506

The Federal Reserve has been printing at $500bn a year since 2008 without it doing any good at all and has since November 2012 doubled the rate to $1tn a year.

The Canadian housing bubble is about ready to pop - which is just going to add to the general banking crisis.

The massive Central Bank printing is just increasing the price of basic commodities like food and gas and lowering people's disposable incomes for manufactured goods and services.
It is actually DEEPENING the coming global recession and not helping at all.

Nobody wants to borrow these mountains of new money.
It is certainly not going into Capital Expenditure for example - to increase future production or productivity or jobs.
Large Corporations are hoarding their cash - they are not spending it.

97% of credit expansion in the US for February was for student debt and auto loans.
Debt that is basically sponsored by the US government.
The amount of student loans debt has now gone past $1tn.
Student loan debt is now greater than the sub prime debacle of 2007.
Student loan defaults are hitting new records and rapidly increasing.
Currently about 64% of people that are now entering college never get a job that requires a college degree.
They will never be able to pay off their $30,000+ of student loan debt.
This proportion is increasing every year.
McDonalds just advertised for a person with a DEGREE for a job as a cashier!
(Even the 36% of people that do get a college required job are paying far more for their college education than they should be, thus decreasing their future spending power. Increasing the demand for something always raises prices.)

Barack Obama has now issued a statement encouraging the banks to increase lending to sub prime borrowers. How crazy is that?

The US handed out a huge $200bn a year tax hike on the middle class and below in the Fiscal Cliff deal.
They did nothing to cut spending or save money by taking away some of the record profits and tax avoidance schemes of large Corporations.
All of the over $1.3tn of Corporate Welfare was retained along with the $1tn a year of subsidies and bailouts to the big banks.

Just about every developed country is pursuing policies that are LOWERING ordinary people's disposable incomes. (I couldn't name one that isn't.)
The economy will never recover unless ordinary people's disposable incomes start rising again - instead of plummeting as they currently are.

What we are currently seeing is a steady erosion and slowdown of the economy throughout the West and the Brics. That is about 80% of the global economy.
At some point this steady erosion will fall off the cliff.
On the current path the world will enter a Global Recession in 2014 and every step that governments and Central Banks are currently taking are just making things worse.

If one didn't know better, one might think that Western governments and Central Banks are conspiring to cause a Giant Global Depression.
That is certainly where their current policies are currently taking us.

What massive money printing actually achieves :-

Massive inequality
http://www.washingtonsblog.com/2013/04/poverty-spikes-in-america-while-the-government-throws-money-at-the-super-elite.html

http://ian56.blogspot.co.uk/2013/03/some-charts-on-jobs-and-wages.html