A clarification is in order. Liquidity has been a frequent topic on these pages, referencing massive monetary accommodation by global central banks. The U.S. Federal Reserve, for example, expanded its balance sheet from about $800 billion before the financial crisis to over $4 trillion at the end of its Quantitative Easing (QE) program. Indeed, QE is central to most economic recovery plans by developed countries around the globe. According to Yardeni Research®, total assets of major global central banks expanded from about $5.5 trillion in 2008 to today’s $14.3 trillion.