More Disordered Economic Activity on This Happy Columbus Day
Happy Columbus Day. And welcome to a new week of disordered economic activity, as our central banks keep financial repression going strong. Looks like low rates, put and kept in place by their "brilliant" policy of "quantitative easing" will keep on keepin' on. It continues to satisfy central bankers and their cronies and that, after all, is what really matters, right?
Of course, what satisfies central bankers sucks the wind out of the rest of us. Continuing with their program of ZIRP - Zero Interest Rate Policy - for what seems like an eternity, bank balance sheets remain propped up while we little people can't make a nickle on our hard-earned savings...unless we take risk, which means feeding the Wall Street sales machine, which may or may not make money for us, but will surely stuff the pockets of brokers and bankers.
Great system, isn't it? And there's no end in sight as we begin this new week.
Over the weekend, Mario Draghi, head of the EU's central bank, reinforced the current disordered economic activity as described above, doling out praise for his institution's bond-buying activity a/k/a quantitative easing:
But no, not in the current world created by the central banks of our world. The system requires higher inflation - that is higher prices. And the fact that most of us haven't been earning more simply doesn't matter at least to our economic pooh-bahs. As long as they and their compatriots in disorder keep making out, everything will remain as it is. At least for now.
And so it goes on this Monday morning of the second full week of October.
In any event, despite the continuation of a disordered and discouraging economic system, have yourself a Happy Columbus Day!
Of course, what satisfies central bankers sucks the wind out of the rest of us. Continuing with their program of ZIRP - Zero Interest Rate Policy - for what seems like an eternity, bank balance sheets remain propped up while we little people can't make a nickle on our hard-earned savings...unless we take risk, which means feeding the Wall Street sales machine, which may or may not make money for us, but will surely stuff the pockets of brokers and bankers.
Great system, isn't it? And there's no end in sight as we begin this new week.
Over the weekend, Mario Draghi, head of the EU's central bank, reinforced the current disordered economic activity as described above, doling out praise for his institution's bond-buying activity a/k/a quantitative easing:
"We are satisfied with QE, as it has met and even surpassed our initial expectations," the ECB president said in an interview with Greece’s Kathimerini published on Saturday. While “it presently appears that it will take somewhat longer than previously anticipated for inflation to come back to, and stabilize around, levels that we consider sufficiently close to 2 percent,” that is largely because of a drop in oil prices, he said.Note especially Draghi's implication that "we" would all be better off with higher oil prices. Huh? Isn't that yet another example of disordered economic activity? Shouldn't lower prices be better?
But no, not in the current world created by the central banks of our world. The system requires higher inflation - that is higher prices. And the fact that most of us haven't been earning more simply doesn't matter at least to our economic pooh-bahs. As long as they and their compatriots in disorder keep making out, everything will remain as it is. At least for now.
And so it goes on this Monday morning of the second full week of October.
In any event, despite the continuation of a disordered and discouraging economic system, have yourself a Happy Columbus Day!
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