Malmgren - who served on President George W Bush's National Economic Council as an adviser on financial market issues - said that NATO, China, the U.S. and Europe had all hiked the budgets for their military. Europe, she added, had done so because of "the perception of (an) increasing threat from Russia."
"It's all occurring in sectors that have other businesses like space, cyberspace and things to do with the high seas. So we should watch those areas, it's a bit of a scary notion I realize but it's a danger that we drift into a new Cold War kind of environment and the spending comes in the form of defense," she said.
The U.S. Federal Reserve started aggressively expanding its balance sheet shortly after the global financial crash of 2008, in a program that became known as QE 1. After a short break, the Fed started a second program in 2010, before launching its third open-ended $85 billion-a-month program in late 2012.