Thursday, Dec 18, 2008
The 130+ comments are an equally good read
guardian.co.uk: Why such drastic action? The Fed is utterly petrified
When the global financial system seized up in August of 2007, we said there was a risk of an economic pandemic that might plunge the world's economy into a dangerous tailspin. This was greeted with derision. The system was robust, we were told. Economies were well-placed to withstand any problems, we were told. The problem would be contained because policymakers had matters in hand, we were assured.
All of which goes to show that Schopenhauer was bang on the money when he said that truth goes through three stages. In the first stage, it is ridiculed. In the second stage, it is violently opposed. And in the third stage, which of course is where we are now, it is accepted as self-evident.
Posted by gardeniadotnet @ 11:27 PM (710 views) Add Comment
12 Comments
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1. paul said...
And now finally, we see the same truism being trotted out that printing money will work because ...
it's different this time.
2. gardeniadotnet said...
The Federal Reserve serves nobody other than the exceedingly rich financial families who run and effectively own it. Any action they take will be for the benefit of that elite and to ensure that they soak up even more of the real wealth of the nation, leaving the vast majority as mere wage slaves or beggars.
The only positive action that can now be taken is to nationalise the Fed and have all their nefarious dealings formally audited. Can you believe the recent news that Bernanke has refused to account for another $2 trillion dollars, effectively prised away from the US taxpayer, to fatten up the banksters even further? Does he think he's playing monopoly?
The fundamental question is this: just how outrageous does the Fed Chairman and the Treasury Secretary have to act before someone has the sense to call in the FBI?
Comment 1 (edited).
3. gardeniadotnet said...
paul.
printing money will work because ...
... the alternative is too horrific for most people to contemplate
bellwether will explain
4. fahrenheit451 said...
Any Guesses on the rate of inflation for 2009 & 2010.
If GBH does not learn his lesson soon (yes he is trying to influence the BoE), we are expecting:
2009: Base rate = 1% > Inflation 6%
2010: Base rate = 6% > Inflation 8% (& rising)
2011: I don't want to think about it. It's too late (both tonight, and to stop it going pear shaped).
5. gardeniadotnet said...
@ 4. fahrenheit451
Any guesses will be just that, as we're in totally uncharted territory.
6. fahrenheit451 said...
@ gardeniadotnet
I know this sounds stupid and it's too much to hope for any common sense, But we are hoping that Base Rate very slowly moves up to about 4% or even 4.5%, and at that point they STOP messing with it.
7. icarus said...
So the BoE and the Fed want to make mortgages more affordable? Let house prices fall. That'll do it.
8. drewster said...
Larry Elliott writes: "All things considered, this is probably the least bad option available"
He's right. Like the local who, when asked how to get to the town hall, replies "Well I wouldn't start from here", I would rather not start from here in this economy. But from where we stand now printing money is the least bad option.
9. Longterminvestor said...
Is this the same Guardian that ran the headline "The student becomes the master" above an article extolling the virtues of "Japanese capitalism" right in the middle of their very own asset bubble? I think we should be told.
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