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The quantitative easing measures of the last nine years, in the US, UK and Europe, have grossly inflated asset prices and financed disruptive technologies which now threaten growth and employment in many industries.
Further, according to Crispin Odey, keynote speaker at today's annual Guernsey Funds Forum in London, the Central Banks have caused "financial repression on a global scale" as near-zero percent interest rates make economies "sloppy and weak".
"As a result we are in a world where no one believes they can hurt themselves. We have become very used to taking the drugs - the relief offered by quantitative easing measures," Mr Odey told the 420-strong audience in a highly engaging speech.
"The resulting disruption in everything from the growth of fracking to passive investment opportunities is the most difficult thing in my world now."
"Investors have to go back to first principles. That is, focus on earnings or dividends not the valuation of capital or worth of a company," he said.
The founder of Odey Asset Management was preceded by Guernsey's Chief Minister, who told the City audience that the island offered an investment environment of security and stability unmatched by most other offshore financial centres.
"Guernsey's finance sector sees itself as "The City Offshore". We are not your competition, we are your team mates in what is likely to be a marathon alongside those jurisdictions which seek to lure business away from The City," said Gavin St Pier.
The 8th annual Guernsey Funds Forum was opened by Guernsey Finance Chief Executive, Dominic Wheatley, who highlighted the island's sixth straight quarter of growth for the investment funds sector.
"While 2016 was decidedly wobbly for some financial hubs, Guernsey is cementing its reputation as a strategic investment choice and we have seen a year-on-year increase of 12.5%, taking total fund net asset value to almost £256 billion," he said.
