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End Of The Era Of The Central Banker As God

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http://moneyweek.com/gold-greece-and-the-end-of-the-era-of-the-central-banker-as-god/

So, this is something I've been thinking about for a while, why haven't the Greek people looked at Iceland and thought 'hey, we could do that!'.

....and will the markets really stop holding their breath every time a central banker speaks!

Economies have a habit of doing rather well after a crisis. If Greece abandons the euro and tells its creditors where to go, there will no doubt be a period of turmoil. But, as blogger Otto Rock notes, if it then enjoys a period of economic success like Iceland and Argentina in recent years, or the Asian economies post-crisis, then suddenly the EU “we-must-stay-together” narrative starts to look flawed.

If long-suffering Italy, Spain and Portugal suddenly look east and see a booming post-euro Greek economy – while their own stagnation continues – they might suddenly think, “Actually, I quite fancy a piece of that”, and follow the same path. And the transition can happen more smoothly as Greece will have blazed the trail.

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http://moneyweek.com/gold-greece-and-the-end-of-the-era-of-the-central-banker-as-god/

So, this is something I've been thinking about for a while, why haven't the Greek people looked at Iceland and thought 'hey, we could do that!'.

....and will the markets really stop holding their breath every time a central banker speaks!

An ageing country with no dynamic business culture is diametrically opposed to the young, dynamic Icelanders. And how dare we even consider the possibility that Carney is not God.

(edit. crashing beat me to it)

Edited by crashmonitor

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Iceland has one of the highest average retirement ages in the world. Most of the world would like nothing more than for them to think, "We could do that."

You say 'average'. So is that through choice, in that everyone in Iceland is like 'I'm so fit and I love my work, so I think I will just carry on' or (more likely) forced because the government just couldn't afford it.

Can you name a country where the government won't be increasing the retirement age sooner or later? Frankly, I think people do retire too early and although this is great, for them to sit around and do nothing (and open their jobs up for younger folk), it has never seemed sustainable to me, unless people save a hell of a lot more (I've been planning for this since I started saving)!

Any links to the detailed of when this change in Iceland happened?

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You say 'average'. So is that through choice, in that everyone in Iceland is like 'I'm so fit and I love my work, so I think I will just carry on' or (more likely) forced because the government just couldn't afford it.

Can you name a country where the government won't be increasing the retirement age sooner or later? Frankly, I think people do retire too early and although this is great, for them to sit around and do nothing (and open their jobs up for younger folk), it has never seemed sustainable to me, unless people save a hell of a lot more (I've been planning for this since I started saving)!

Any links to the detailed of when this change in Iceland happened?

Can't see Greece getting off the ground with wiped debts. 15% GDP on pensions now, rising to 20%. Will be frozen out of money markets and hyper-inflation will take hold. There will be rioting and the country will go the way of Argentina.

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(Not reading article) but the reason monetary policy has been dominant for the last 35 or so years is because fiscal policy has effectively been relegated to being seen as irrelevant or worse counter-productive

That experiment has now run its course - even the IMF are now urging a more active role for fiscal policy. UK is simply out of step with the sea change which has now commenced.

Syriza are the only govt in EU talking any sense at all. No wonder they are pilloried by the neo-libs and right wing media (and by their reps on here too)

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