The grand central bank experiment of the last 10 years has ended in utter and complete failure. The games of cheap money and constant intervention that have brought record global debt to the tune of $250 trillion and record wealth inequality are about to embark on a new round. All under the banner to “extend the business cycle” at all costs. Never asking whether they should nor considering the consequences. This is not capitalism, nor does this ongoing farce constitute free market price discovery. It’s politburo based central planning, desperately trying to keep the balls in the air.
The pretense is gone, it’s all about keeping the illusion alive that the Fed knows what it’s doing, that it’s always there to save markets from any trouble. But since they are not elected by the people and face zero consequences for failure, they don’t have to consider the collateral damage they inflict. Everything every central banker has uttered last year was completely wrong. Every projection they made over the last 10 years has been wrong. Why place confidence in people who are staring at the ruins of the policies they unleashed on the world and are about to unleash again? We’re all staring at a colossal policy failure with no accountability. Brace yourselves as no one, absolutely no one, can know how this will turn out.
-- Sven Henrich (Northman Trader) June 7, 2019 (edited)
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment