Comments (5)

  1. Ephraim Sella says:

    Is it too late?
    What would be the consequences if say the ecb were to raise rates by 2%?

  2. Ephraim Sella says:

    Agreed, but Is it too late?
    What would be the consequences if say the ecb were to raise rates by 2%?

  3. Peter A. says:

    step back to the 2007-2008 crisis. We continue to live with the fateful decisions made then to allay our fear of the unknown and allow capitalism to run its course. We did not punish the players who, because of their unmitigated greed, perpetrated an epic fraud of global proportions. To be sure, the consequences of allowing the bandit banks to collapse would have been catastrophic. For a time. But who can say that the fix in place for the last decade actually has worked? Hasn’t constant monetary meddling simply put the world back in the same spot that the sages at the various central banks, the Fed AND Treasury found themselves following the collapse of the financial system in 2007-2008? It seems to me that global monetary policy continues to be driven by….fear of the unknown. “WE CAN’T LET (name your bank) GO UNDER! WHAT WOULD HAPPEN TO THE, THE, THE…SYSTEM?!”
    We reap what we sow – we Now live with Negative interest rates, modern monetary theory, digital currency…The hubris of the sages remains undiminished. And why? They fear the unknown! Yet that fear grows Deeper with each fresh trillion of negative interest rate debt. The problem grows larger and more dangerous. It may be time to stop the monetary interventionist “policy” and let the chips fall where they may. Diabetic sores do not permanently heal unless you cure diabetes. All the salves, ointments, and bandages will not heal the sores. They may feel more comfortable for a while but the sores are symptomatic of a far deeper problem. Address the problem before suffering worse consequences…

  4. blake maum says:

    THIS IS A GREAT PIECE BUT WITHOUT POLITICIANS HAVING A FISCAL BONE IN THEIR BODIES WHAT OTHER CHOICE DO CENTRAL BANKS HAVE. BANKRUPTCY OF GOVERNMENTS IS THE OTHER CHOICE.

  5. Simon Maughan says:

    WHEn the central bank is able to make the investment decisions for the economy, then the independence of the central bank will surely be over. while the politicians of germany and france may control the ecb today, how long will this state of affairs be tolerated in italy, for example, if it perceives itself to be less-favored in THE allocation of resources. how long will the fed be independent when it is making all the investment decisions in lieu of congress?

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