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We Will All Pick Up the Tab For These Ego-Maniacs' Actions
Anyone with even a cursory understanding of human nature knows that if you give someone virtually unlimited power with next to no oversight, they will quickly become despotic.
Consider what is currently happening in Japan.
Two weeks ago, the Bank of Japan shocked the world by increasing its QQE program. True, Japan’s economy was faltering, but that was nothing new. And given that the “shock and awe” QE program of $1.4 trillion announced in 2013 had failed go generate sustained growth, why on earth would the Bank of Japan expect that increasing this would somehow work?
Turns out it didn’t. In fact the whole decision was mainly due to Bank of Japan Governor Haruhiko Kuroda’s ego.
The Bank of Japan Governor not only surprised the markets with his latest splurge of monetary easing. He sprang it on his own board members just two days earlier, jolted into action to stop them making a low-ball forecast that might have sunk his flagship inflation target.
To achieve maximum effect for the shock decision, Haruhiko Kuroda and right-hand man Masayoshi Amamiya kept only a handful of elite central bank bureaucrats in the loop as they laid the ground for the expansion of their quantitative and qualitative easing (QQE) programme.
You read that correctly… Kuroda announced the program NOT to fix Japan’s economy or to create jobs… but so that his own Board would be shocked into adjusting their numbers so that their new forecasts would match his target.
This is the ultimate sign or Central Banker insanity. For six years now (20 years if you want to include Japan’s lost decade) Central Bankers have employed a series of emergency measures, spending over $10 trillion in the hope that the global economy would align itself with their largely academic theories.
Now that their theories have been proven to be total bunk, rather than retreating, they are actively spending money just to massage data so that it matches their still misguided theories.
The Central Bankers bet the financial system that their theories were correct. They were wrong. Horribly wrong. And we will all pay the consequences for it. When the next Crisis hits, it will feature entire countries going bust. Countries just like Japan, whose eocnomies were run by ego-maniacs more intent on looking good than actually growing their economies.
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My baby boomer ass thinks this entire problem is due to the millennials not working hard and holding their iphones while they walk and not being more social, because I want to be god dang it. I want those millennial's to listen to my bullshit, my foolosophy on life and how we boomers made merica great, but then it suddenly died because our kids grew up (that's their fault). I don't know if anyone else figured this out, but the younger generations when they were 10 or 11 years old, they were finagling things behind the scenes to mess this entire economy up by the time they graduated college. That's kind of a secret, so lets keep it between us.
Listen, if those other generations would just work hard, yes there are jobs out there because I'm looking for someone to pick up my dogs poop every morning and I'll pay you 20 cents per dump. That's real money that they are leaving on the table.
The economy was fine until we boomers started retiring, we were holding the entire thing up, can't do it anymore people.
/sarc
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For These Ego-Maniacs' Actions...I think they are far beyond that, national leaders are in an uncontolled psychosis of psychopaths.
"We Will All Pick Up the Tab For These Ego-Maniacs' Actions"
That's like asking who will pick up the tab in the wake of a mugger.
The real question is when will the people demand the plunder stop, and then take back what has already been stolen from them. I say today.
An American, not US subject.
"Allow a thief to steal today, he will return tomorrow, and everyday. Guillotine the thief today, keep what is yours today, tomorrow, and everyday."
Hmm.....
Sweet deal for the monied banker types over the last decade or so. They get all the cashola from QE and can go buy up hard assets at suppressed and/or manipulated prices. Good deal if you can get it.
"Good deal if you can get it."
Not a "deal," but theft and plunder.
Once, as a kid, I stole some money from my dad's wallet. No one thought it a "good deal."
An American, not US subject.
"It is the outcome from its use that makes clear it is a spade."
Tab ? What tab ?
B-but but we can't pick up the tab. We're broke.
So the tab just lies there. Time to default on the credit cards, boys. Let them 'pick up the tab'.
Derp.
Therein lies the problem. We are caught in the big squeeze with few options. It is our tab because they made it our tab.
Japan is the forerunner of things to come. Everone know's that they are going down the toilet so it won't cause a total collapse because anybody with a clue knows it's coming but it will destroy one of the main global market supports no matter what. This will be the first small movement in a very big avalanche.
Japan face planted 25 years ago. They have managed to keep their boat afloat since then. What makes you think the good ol USA can't match that zombie stretch?
Because the USA isnt the only ones playing the game. Watch the EU, they're papering over the cracks right now. America might be the last one standing but there will too many fatal wounds to survive very long.
There is a certain duality of opinion here at ZH. On one hand many say they know the system is beyond repair. (I agree) These same people then accuse central bankers of making the situation worse...???
Which is it? If it is doomed (it is) then perhaps the central bankers are just working hard to stave off the inevitable (I think they are).
Sure a lot of commercial bankers are front running this effort but really what can the central bankers do? If they try to cause a corrective recession they will kill the fiat system. If they print more...well that is what they are doing.
Sit back, relax, get prepared and watch the show. It will be horrible but you like horror flicks...right?
There is a certain duality of opinion here at ZH. On one hand many say they know the system is beyond repair. (I agree) These same people then accuse central bankers of making the situation worse...???
I can't speak for ZH ers. I can barely speak for myself, but I don't believe there is anything incongruous or dual about the opinion.
Many say the system is beyond repair and will crash. I don't accuse the CB's of making it worse, but that they have sacrificed more of the future to hang on to the past and by doing so will make the inevitable correction/depression/reset that much worse.
I don't think the two are mutually exclusive.
Instead of trying to get back to 'normalcy' (the 2007/2008 sub prime BUBBLE) they should have MANAGED the economy/stock markets - I've always said they should have managed the Dow between 10,000 and 12,000, S&P between 1200 and 1400 (roughly). Instead of which, debt is above where it was in 2008, the Fed's assets (= DEBT!!) is at ridiculous $4.3 trillion.
These are academic fuckwits who don't understand the REAL WORLD and will have tantrums when things don't go the way they think they should.
DavidC
DavidC
you do realize that they must manage for growth right.?
It appears the amount of growth they need to prevent collapse is more that we expected. They are having to pump enormous amounts of $$$ into the system just to keep it where you think they should have kept it but then (my guess) is that they then had to pump a whole lot more.
Don't forget they must keep the whole world good as all the currencies are interwoven. If one major currency 'gets it' they all go down. I'm not sure how smaller currencies like the Argentine currency fits in but global growth ain't growing...so they buy shit and turn it into base money.
Soon the wheelbarrows.
Dude!
You are the last Mohican....
One day you will be correct!
But while waiting for the epocalypse you can get a heart attack,,,,