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Heading for a scenario of post-lockdown + pent-up reserves + depleted supply chains = rising inflation. Inflation is combatted by raising interest rates - but that would make ballooning national debts too expensive to repay and burst the biggest financial bubble in history.
So don't expect them to end lockdown and don't be surprised if they decide to go deep into negative interest rates.
Negative rates ofc means paying to deposit money in the bank. But achieving deepening neg rates will require converting record amounts of cash into stocks. Bail-ins - banks freezing assets and converting them into stocks - have already been legislated for.
The Fed has already carried out research on banning high denomination bills (just as they confiscated gold after 1929) and placing a carry tax on low denominations (enforced by putting metallic strips on notes)
They'd also need some kind of wealth tax. But they'd also need quantative easing double or three times the size of the previous decade, maybe $100-200bn a month, as opposed to $20-80bn.
How long this could be sustained for is anyone's guess, but we're talking about central banks increasingly becoming the sole purchasers of debt through money printing - that can only lead eventually to the most extraordinary levels of hyperinflation ever seen.
