That is, the idea that ZIRP, NIRP, and endless asset monetization can stimulate aggregate demand and boost inflation expectations is a myth, and the longer the Janet Yellens, Mario Draghis, and Haruhiko Kurodas of the world attempt to perpetuate it, the more the market loses faith.

In fact (and this is something we've detailed exhaustively over the past nine or so months), promoting the misallocation of capital actually serves to create deflation, as it allows otherwise insolvent producers to keep pumping, drilling, and digging, contributing to the global deflationary supply glut that's wreaked havoc on emerging markets. 

Now, in the wake of the Fed's policy "error" that paradoxically triggered a flight to safety even as the FOMC leaned dovish, the market is signalling that investors are beginning to lose faith. Here's Bloomberg:

More and more, bond traders are drawing the same conclusion: central bankers globally are coming up short in their attempts to combat the world's economic woes.