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:
How is it creating “bubbles!” When every time they do it the prices collapse?
“ 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?
Yo Was #6 “Fairy Tale”???
Maybe this is the one I keep forgetting...
Would you prefer "Central bank independence has always been a lie" ?
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...
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???
The Fed is part of the government.
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