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.’
How is it creating “bubbles!” When every time they do it the prices collapse?
ReplyDelete“ has always been a myth, like the emperor with no clothes.”
ReplyDeleteMyth!
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”???
ReplyDeleteMaybe this is the one I keep forgetting...
Would you prefer "Central bank independence has always been a lie" ?
ReplyDeleteThat one ("lie!") is already covered under #2 which is "secret neo-liberal conspiracy!"...
ReplyDeleteYou 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
ReplyDeletewho 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.
ReplyDelete