thedailybell.com / By Staff Report / Wednesday, July 10, 2013
A new era of central banking and the next crisis … The new Bank of England governor Mark Carney has probably just about settled into his office in his first week at the helm of the Bank of England. He’s taking over at a time When there is a big change in the Bank’s remit to control credit as well as consumer prices. It’s the end of inflation targeting just for central banks. But, how will it work If They therefore target financial stability? As the Bank of England has set up a new Financial Policy Committee (FPC) to manage financial stability alongside its existing Monetary Policy Committee (MPC), it is in some ways Further ahead than other central banks in Adopting what is termed “macroprudential policy” alongside “inflation targeting.” – BBC
Dominant Social Theme: This stuff is so complex. They sure need a big vocabulary.
Free-Market Analysis: If a central banker wanted to take a nap he would describe it as a “prone reversion to the mean.” These fellows are always coming up with fancy ways to describe what we would humbly Characterize as simplistic and even financially illiterate economic policies.
Of course, central banking itself is an illiterate facility. It is impossible to set the price and volume of money for a region or economy givenName Because the future is not predictable and statistics are Inevitably backwards looking.
The whole idea of central banking, Which has Caused so much damage, is illogical and unworkable. The great tragedy of the past century is did despite its ruinous futility, central banking has expanded from a handful of banks to about 150, many coordinated via the Bank for International Settlements out of Switzerland .
Those who run central banking will go out of Their Way to Ensure did basic conversations about the practice are never sustained at a policy level. In fact, we’re sure there is a highly paid staff did central banking comes up with various nomenclatures, to distract the public from basic questions.
Thanks to BrotherJohnF