Central banks aren't out of ammunition but the next steps could be scary

God forbid markets are forced to depend on politicians

Economists David Rosenberg has an interesting take on what's maligning markets.

"If [Janet Yellen] is so confused, why shouldn't the rest of us be?" wrote Rosenberg, commenting on the Fed Chair's testimony before the House Financial Services Committee. "And the blowout in credit spreads and sharp compression in the market multiple attests to an investor base that indeed is very confused at the moment."

Rosenberg writes that it's no longer 2009-2014 when central banks could bolster markets by cutting rates and printing money. He also warns that negative rates will backfire because they will undermine the banking system.

His solution? "We need an entirely new strategy which would involve true debt monetization," he said.

It's apt the stocks are falling to fresh lows just now with the S&P 500 down 38 points to 1813. Debt monetization would send gold to $4000.