<blockquote>'It’s been my thesis that we’re at the late phase of a historic global Credit boom. During much of the Bubble’s upside, the global economic pie was getting bigger. This provided powerful impetus to mutual interests, cooperation and integration. There was the capacity to forge international consensus on various pressing financial and economic issues – as well as even the ability to muster a “coalition of the willing” for major military operations.
The world is transitioning into a quite different environment. Despite desperate measure after desperate measure, a most over-extended global Bubble is convulsing erratically. The economic pie is stagnating - and on its way to contracting. This dynamic ensures an increasingly powerful pull of diverging interests, disagreement, fragmentation and confrontation.
The world has turned increasingly skeptical of U.S. policymaking, certainly including monetary policy. Round the globe, citizens and their leaders have grown tired of cooperating on just about everything - from finance to climate change to global policing. This runs up against heightened need for all of the above in an increasingly disorderly and hostile - faltering Bubble - world.'
- Doug Noland,
Difficult Decisions Ahead, September 6, 2013</blockquote>
<blockquote>'I am deeply convinced that they really have no friggin idea what they are doing. And eventually we will all find out they had no idea.'
- Acting Man (
Source, September 19, 2013)</blockquote>
Context (2013) - 'This looks like to me like 2007 all over again, but even worse.' - William White, the BIS’s former chief economist<blockquote>
Fed Bizarro World; One-Sided Risk Assessment; The $64 Trillion Question, September 18, 2013
So, It's No Tapering After All; Reaction is Telling, September 18, 2013
The Morning After; Price Discovery is Zero; PUT on the Bond Market? Is Inflation Really Under 2%? September 19, 2013
((Monetary) bureaucracy) - The Magnitude of the Mess We're In((Hapto)praxeology) - '..Mises’s warning to the world .. not to suppress the market rate of interest in the name of creating prosperity.'(Planned Chaos) - 'Do we really want a repeat of the upheavals of the 20th century .. because a bunch of interventionists and central planners living in the virtual reality of their 'models'..''They are stumbling into the endgame of this whole misbegotten spree of QE, ZIRP, and massive manipulation of financial markets.
We are going to basically replace bubbles Ben with calamity Janet.
She has no clue how to wean wall street from the pathetic addiction to this massive stimulus, easy money that has been going on for the entire century.
I backed that up because she has spent her whole life as a monetary bureaucrat in the Fed system, and has no clue what honest capital and genuine free markets are about.
[She] believes the entire system has to be run by a monetary politburo, turning all the dials and short-term interest rates and yield curves and the entire financial system.
She is part of group-think, part of the Keynesian consensus that 12 people are running a $16 trillion economy.
They are delusional.'
- David Stockman (
"Bubbles Ben to be Replaced by Calamity Janet", September 18, 2013)