Wednesday, April 1, 2020

David Marsh - Sheng’s world view: western neoliberalism ‘bankrupt’


As central banks act, ‘independence is a myth’


Sheng recognises the social impact of central banks taking widespread action to curb upsets. ‘Central bank independence has always been a myth, like the emperor with no clothes. When push comes to shove, we have seen central banks funding government deficits carte blanche.’ Injecting liquidity ‘is the right short-term move because we are in wartime conditions of grave uncertainty. But quantitative easing has been increasingly interpreted as central banks funding the 1% through asset bubbles and taxing the savings of the middle and lower classes.’  The US debate is about rescuing the corporations, the economy or the population. ‘That’s a tough call. If the “precariat” says the money is not coming to me, social revolution is the next call.’

7 comments:

Matt Franko said...

How is it creating “bubbles!” When every time they do it the prices collapse?

Matt Franko said...

“ has always been a myth, like the emperor with no clothes.”

Myth!

That’s #1 on the list!

And I think the emperor’s clothes was a fairy tale?

Can one of you Art Degree morons clarify this for me?

Matt Franko said...

Yo Was #6 “Fairy Tale”???

Maybe this is the one I keep forgetting...

Peter Pan said...

Would you prefer "Central bank independence has always been a lie" ?

Matt Franko said...

That one ("lie!") is already covered under #2 which is "secret neo-liberal conspiracy!"...

You guys have in review:

1. Myth
2. secret neo liberal conspiracy
3 evolved from the apes by random chance
4. fantasy
5 superstition
6. fairy tale

"lie!" would fall under #2 here...

Matt Franko said...

Fed just reduced their RRR from 10% of Deposit Liabilities to 0% last week

who told them to do that?

If they are not independent...

Secret Agent Neo the secret neo-liberal agent???

Peter Pan said...

The Fed is part of the government.