tag:blogger.com,1999:blog-2761684730989137546.post3044337259772184915..comments2024-03-29T02:19:19.866-04:00Comments on Mike Norman Economics: Bill Mitchell — US Federal Reserve should not increase interest ratesmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-2761684730989137546.post-4740667698071251262015-08-28T16:33:52.217-04:002015-08-28T16:33:52.217-04:00Exactly, Neil. Liberals today are so soft-headed a...Exactly, Neil. Liberals today are so soft-headed and spineless. Almost as if they all had a bit of dementia. As if the Fed were not on the side of the 1% always, and as if deception were not part of below-the-belt politics.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-20566719663522399892015-08-28T10:33:11.373-04:002015-08-28T10:33:11.373-04:00"Governments have become so dysfunctional tha..."Governments have become so dysfunctional that they will not do what is necessary."<br /><br />So have central banks. The ECB saying that the Greek banks were solvent on the one hand and refusing to supply last resort liquidity on the other - due to some trumped up interpretation of the 'rules' was clearly designed to enforce political change in a country. <br /><br />So be careful what you wish for. These things are run by the enemy. NeilWhttps://www.blogger.com/profile/11565959939525324309noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-23002855507629568672015-08-28T06:31:03.553-04:002015-08-28T06:31:03.553-04:00I wish one day central bankers came out and said: ...<i> I wish one day central bankers came out and said: From now on, our only function will be to stop the collapse of payment systems and keep liquidity up when needed;</i><br /><br />It's ironic that in the case of the ECB its function has been the precise opposite: it crushed Greece by cutting off liquidity to banks, thus triggering chaos in the payment system.<br /><br />The ECB is the most powerful weapon in the euro arsenal to prevent rebellions against the system and keep complaining nations under full control. Let us please not underestimate the enormous power of central banks.Jose Guilhermehttps://www.blogger.com/profile/00313496015841693181noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-14619996068851982802015-08-27T11:41:21.614-04:002015-08-27T11:41:21.614-04:00Ralph and Neil,
Central banks should be constrain...Ralph and Neil,<br /><br />Central banks should be constrained, but until government does its job, the central banks hand is forced. Governments have become so dysfunctional that they will not do what is necessary. Indeed, they'd only make things worse by trying to balance the budget or run a surplus. Since there is almost no chance in the foreseeable future of electing sensible politicians, let's not be too hard on central banks. <br /><br />It's not as if the central banks wanted to be in a position of the only thing standing between total economic collapse. They found themselves in a position of having to patch things together while hoping that government would wake the f**k up. But more than seven years into a crisis as serious as the Great Depression all major political parties are promising to run surpluses. As it is, I'm happy to take my chances with the unelected central bankers than the various Tory parties on offer.Johnhttps://www.blogger.com/profile/18181631191840432399noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-5631758568506035822015-08-27T10:30:41.333-04:002015-08-27T10:30:41.333-04:00I agree with Matt, but at the same time I wish one...I agree with Matt, but at the same time I wish one day central bankers came out and said: <i>From now on, our only function will be to stop the collapse of payment systems and keep liquidity up when needed; we won't be trying to micro-manage the economy throught interest rates hikes or cuts. We announce that the interest rates will be determined, from now on, by the market, and we will provide liquidity at zero interest rates for the institutions that comply with the regulations and laws established.</i><br /><br />Just let the market set the interest rates and keep rates at zero all the time. It's not a proper tool to shape or manage the economy, that's what fiscal and trade policy is for. Monetary policy is just an hoax, unless you are willing to go from one extreme to the other (very high to near-zero and the other way around), and then the consequences are unknown on the long run.<br /><br />Fortunately for anxious central bankers, the private sector can expand (and does) endogenously when it needs to, and can find endless ways to create liquidity and leverage without the help of central bankers. Rising rates is not going to stop that. Only regulations and laws can stop that (if needed, like financing asset bubbles).Ignaciohttps://www.blogger.com/profile/16082008115484199316noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-27892633790058063472015-08-27T07:44:59.665-04:002015-08-27T07:44:59.665-04:00An interest rate increase at this point is the bes...An interest rate increase at this point is the best hope we have for any meaningful increase in fiscal from the UST ... I hope they raise... <br /><br />of course volatility in the equities and forex will increase if they do... but it will be better for the US economy if they raise...Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-3779673211181769782015-08-27T02:46:26.829-04:002015-08-27T02:46:26.829-04:00Yes. I'm stunned that anybody should be pushin...Yes. I'm stunned that anybody should be pushing the idea that central banks should decide whether to do 'helicopter drops' and certainly any idea that they should have authority to say 'no' to the legislature because they disagree with their spending plans is really stupid. Because they haven't a clue what they are talking about. <br /><br />It's time to put central bank governors and their team of cronies back in their box. They are not Solomon. They are naked emperors. NeilWhttps://www.blogger.com/profile/11565959939525324309noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-27881680521901570182015-08-27T01:21:32.034-04:002015-08-27T01:21:32.034-04:00The 2nd sentence of this Bloomberg article says “A...The 2nd sentence of this Bloomberg article says “All 15 central banks of the 34 countries in the Organization for Economic Cooperation and Development that raised interest rates since the 2008 financial crisis ended up cutting again.” <br /><br />http://www.bloomberg.com/news/articles/2015-08-25/lesson-for-yellen-trigger-happy-central-bankers-reversed-course<br /><br />That gives you faith in the competence of central bankers, doesn’t it (ho ho).Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.com