Forum Replies Created
October 4, 2014 at 5:01 am in reply to: The US Dollar Is About To Inflict Carnage All Around The Planet #15542
“People will look back at this period and have a really difficult time comprehending how so many intelligent people were convinced that central banks creating Trillions of new “money” out of thin air to buy securities was somehow accepted as “enlightened” policy.”September 6, 2014 at 2:35 am in reply to: Debt Rattle Sep 5 2014: We Live In A New World, But We Don’t Want To #15001
Central banks now freely peg short-term interest rates (near zero!), manipulate market yields, monetize debt, target/spur higher stock and risk asset prices and essentially promise continuous and liquid securities markets. Importantly, central bankers have been conditioned to absolutely avoid disappointing the markets. Indeed, heads of central banks have one-upped corporate America in striving to “beat expectations.” There is no longer anything cautious or subtle with respect to monetary management. The goal is precisely the opposite. One might these days contemplate why it took central banking a few hundred years to figure this all out – to appreciate the myriad benefits of zero rates, debt monetization and perpetual bull markets.
I was, however, able to anticipate a very critical reality that remains fundamental to the ongoing global government finance Bubble: once the world’s central banks adopted unprecedented monetary inflation there would be no turning back. Target higher securities prices and then try to control runaway Bubble excess – in the face of ever-increasing global financial and economic fragility. Indeed, policymakers with their unlimited quantities of central bank Credit and government debt were playing with a much more combustible fire than what had previously culminated in “the worst financial crisis since the Great Depression.”
Do Whatever it Takes to Shock and AweSeptember 3, 2014 at 7:01 pm in reply to: Debt Rattle Sep 3 2014: Time To Take Our Hands Off These Lying Basterds #14972