'..yet few question the ideas behind government or central banks..'<blockquote>'..what might be the largest credit inflation in financial history, a credit hyperinflation..
..
And now the social debasement is clear for all to see. The 99% blame the 1%, the 1% blame the 47%, the private sector blames the public sector, the public sector returns the sentiment ... the young blame the old, everyone blame the rich ... yet few question the ideas behind government or central banks ...
I’d feel a whole lot better if central banks stopped playing games with money. But I can’t see that happening anytime soon. The ECB has thrown the towel in, following the SNB last year in committing effectively to print unlimited amounts of money for the greater good. The BoE and the Fed have long since made a virtue of what was once considered a necessity, with what was once the unconventional conventional. As James Bullard told everyone a few weeks before the last Fed meeting, lest there be any doubt:
<blockquote>
"Markets have this idea that, there's QE1 and QE2, so QE3 must be the same as those previous ones. It's not that clear to me that this is the way this is going ... it would just be to do balance sheet policy as the exact analogue of interest rate policy."</blockquote>
In other words, the central banks’ balance sheets are the new policy tool. As interest rates embarked on a multi-year decline from the 1980s on, central bank balance sheets are set to embark on a multi-year climb ...
So as Nobel Prize winning experts in economics
punch the air because inflation expectations have been rising since the policy was announced,
“It’s the whole point of the exercise” (Duh!) the BoE
admits that QE has mainly benefited the rich, but vows to continue anyway.
All I see is more of the same - more money debasement, more unintended consequences and more social disorder. Since I worry that it will be Great Disorder, I remain very bullish on safe havens..'
- Dylan Grice, Popular Delusions
Memo to Central Banks: You’re debasing more than our currency</blockquote>
'..a boon for wealthy investors who have benefitted from lift in asset prices, but a bane for middle- and lower-income consumers who have to pay more for food and fuel.'<blockquote>'Critics -- who range from the finance minister of Brazil to the governor of Texas -- assert the opposite: That the Fed not only has failed to spur real growth but mainly has pumped up prices. That's been a boon for wealthy investors who have benefitted from lift in asset prices, but a bane for middle- and lower-income consumers who have to pay more for food and fuel.'
-
'..criticism rises from all sides to central-banking money-printing policies that may do more harm than good.' October 16, 2012</blockquote>
Context<blockquote>
'..Like monetarists, Keynes held no capital theory .. the role time plays..' - Jesús Huerta de Soto</blockquote>