'..I’m old enough to remember when governments did not pretend to control the world economy. Now governments everywhere are bigger and more ambitious, as are central banks..'<blockquote>'The Federal Reserve had been making noises as though they might finally raise rates at the June meeting or at the July meeting at latest. It is very hard for me now to imagine them doing so. We’re watching the unfolding one of the greatest policy errors in central banking history. Not having taken the opportunity to raise rates during 2014 when new jobs were averaging 250,000, the Fed may now have waited too long, such that any rate increase, no matter how trivial, becomes a shock.
This was actually one of the main points of my own speech, that during the next global recession we’re going to see the most massive combined policy errors by central banks ever witnessed. All will not end well.
..
What might the shocks be that Richard Fisher was alluding to? Anatole Kaletsky of Gavekal listed three global economic risk factors in his SIC remarks. Annoyingly, all three are political. I say “annoyingly” because I’m old enough to remember when governments did not pretend to control the world economy. Now governments everywhere are bigger and more ambitious, as are central banks. They still can’t control the economy, but leaders
think they can, and their attempts usually make things worse.'
- Jon Mauldin,
Your Portfolio Design: Assume the Fetal Position, June 4, 2016</blockquote>
Context<blockquote>
Planned Chaos - '..interventions into the free market, no matter how large or well meaning, will continue to fail..''..vastly underfunded its obligations .. It’s a .. global problem..''..saving, wise investment and production are what creates wealth, not spending and consumption..''..I believe a monumental de-risking/de-leveraging cycle has commenced..'</blockquote>