Thursday, January 8, 2015

Hubris and incompetence

It would be understandable if central bankers were hubristic—aren’t we all?—but they’re worse. For all their expertise, pricey credentials, and recommendations, they’re incompetent beyond measure. The unanimity of their wrongness is unparalleled in any other field, except climate science. The republic’s loss of ability to function democratically leaves us the options of bifurcation, civil war, and tyranny by elites. God help us if central bankers’ performance is truly indicative of tyranny by elites.

It is not possible to make an informed risk assessment in today’s market. These suited grifters remove risk from the financial system, rigging it against savers and retirees for the short-term gain of corporations and their financiers. When quantitative easing unwinds it’s going drag everyone down with it, even the poor saps who played it like they knew what they were doing.

The UK Telegraph reports:

Equities began to climb on Wednesday, after data that showed the eurozone had slipped into deflation spurred speculation among traders the ECB would start buying government bonds at the conclusion of its next meeting on January 22.

Expectations of further central bank stimulus mounted on Thursday after it emerged that Mario Draghi, the ECB president, had written a letter to Luke ‘Ming’ Flanagan, the MEP, in which he said the bank stood ready to use “additional unconventional instruments” if necessary. These may include sovereign bond purchases, Mr Draghi wrote. Ian Williams, a strategist at stockbroker Peel Hunt, said that “all risk assets” were now pricing in the start of “outright QE” at the January 22 meeting.

Prices can’t correct when fascists talk about printing yet more money every time there’s a whiff of trouble. At some point they’re not going to come to the Keynesians’ rescue, and a generation’s retirement accounts will be wiped out all over again.

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