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What If Expectations Of Our Central Bankers Are Simply Too High?
Submitted by Tim Price via The Cobden Centre,
Acccording to Einstein, time is affected by gravity. Clocks far from strong gravitational fields run more quickly; those close by run more slowly. We can only assume, then, that Janet Yellen has the density of a neutron star. Under her leadership of the US Federal Reserve, time seems to have stopped altogether.
It is now seven years since the Fed pegged short term interest rates at zero percent. That was in response to the credit crunch that engulfed the world after the collapse of Lehman Brothers. A lot can happen in seven years. The typical newborn, by the age of seven, can talk fluently, has well-developed physical coordination, and can read and write. Evidence of intellectual or kinetic progress at the Fed has been somewhat more limited.
Unlike many central banks, the Federal Reserve is empowered to pursue two specific mandates: stable prices, and maximum employment. The data on jobs looks clear enough: the US unemployment rate stands at just 5.1 percent, or half its level during the height of the financial crisis. (Just ignore the fact that those out of work who are politely called ‘discouraged’ tend to fall out of the statistics after a while, so the true count is some way off.) But the progress on prices – or rather, the lack of it – is even more startling. Despite quadrupling the size of its balance sheet to $4.5 trillion (which incidentally means the Fed is sitting on $4.5 trillion worth of existing bonds), signs of ‘proper’ inflation – in the prices of goods and services, say – are almost invisible.
Given that the experimental policy of Quantitative Easing was always predicated on triggering inflation, the almost complete lack of inflation so far might be regarded as something of a failure.
The neo-Keynesians will no doubt argue that QE has worked, and that Janet and our own Mark Carney simply haven’t done enough of it yet. I have a subtler fear: what if expectations of our central bank policymakers are simply too high ?
The food you eat and the clothes you wear and the house you live in and the petrol you put in your car all have a price. The price of each of those goods was set in a marketplace consisting of buyers and sellers, providers and consumers. You may not like a given price, but you are then free to shop elsewhere and purchase other items instead. But the most important single price in the entire modern economy – the price of money itself – is not set in a market but by people like Janet Yellen. Whatever you may think of her intellectual credentials, she does not have godlike powers of omniscience over the workings of the economy. No central banker does. But we allow them to dictate monetary policy as if they do.
Note also that nowhere in the constitution of the Fed is there provision for China’s economic problems, or its stock market, or the appreciation of the US dollar, but they were all cited, directly or indirectly, by the Yellen Fed as reasons for delaying a rate hike. Another contributory factor was doubtless the chorus of naysayers from Wall Street urging Janet to hold the line (and keep the party going). City folk like to maintain the myth that central banks are independent of the brokerage community, but the reality is somewhat different.
Most Federal Reserve meetings don’t matter, but this one did. As McKinsey pointed out earlier this year, after a financial crisis triggered by the bursting of a colossal bubble in debt, there is now more debt than ever before: $57 trillion more, raising global debt-to-GDP ratios by some 17 percent. If a problem is caused by an oversupply of something, what possible good can come of expanding that supply by way of remedy ?
The great Austrian economist Ludwig von Mises expressed it somewhat more darkly:
“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”
Nudging interest rates higher by the order of a quarter percentage point would not have triggered an extinction level event. It would certainly have made life more interesting for bond traders, most of whom have never seen a bear market in their entire careers. But it would have sent a powerful signal from the Fed: we are ahead of events.
But Janet blinked. Which makes any future Fed tightening that much more problematic. It also reinforces the suspicion that our central bankers don’t know what they are doing, but have entirely capitulated to the financial system they are supposed to control.
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My expectation has always been that they are going to enable the banking class to buy everything from us with money poofed out of thin air until they have everything and we have nothing.
So far, zero disappointments.
Expectations or self-assuredness borne of narcissistic hubris and greed?
What if you can't create real wealth by printing money.
What if you can only distort and destroy the economy by doing so.
What if.
This labor report paves the way for more fed talky talk of "recovery road & Liftoff" going into 2016 and Janet's retirement going into the elections.
Don't expect more than that, they don't have a clue.
IMF annual meetings are next week. http://www.imf.org/external/meetings/NewSchedule.aspx?meetingid=22
Look for the SDR rhetoric to pick up. http://banksterbubble.com/here-comes-the-sdr-plans-in-place-to-replace-t...
I'll bet SDR is the goal (at least short term). Along with electronic money.
Yep, it's one giant LBO with Benny's funny money.
That some people still do not share NoDebt's expectation is what is surprising.
It's not our expectation of Central Bankers that's the issue here.
It's quite simply the Central Bankers' belief in their own ability to control markets that's the real problem.
The fed's closets are full of DMT.
Wag the Dog
Tick Tock, Felon Yellen!
There are x-trillion dollars, and y-trillion claims on dollars. The problem is y>x; until y~=x, the printing will continue until morale improves.
With fiat currencies, one does not follow the money to figure out what is going on, one follows the debt.
Yeah, yeah, yeah... keep watching the Fed. Smoke and mirrors for idiots.
Bernank to Yellen: Here now take the wheel. Don't try to do anything crazy, just keep rates at zero or lower and you'll be okay. Phone call 1 year later: WHAT THE fUCK ARE YOU DOING TRYING TO RAISE RATES YOU TURD! I SAID KEEP RATES AT ZERO!
"When I said 'no rate normalization in my lifetime' that's wasn't a prediction, you stupid bitch. It was an order!"
- Ben Bernanke
Insert image of quivering lip here.
a shorter duration can be arranged....BEN
"boom brought about by credit expansion"
First off, government should be able to create and issue money that is not considered 'credit' or 'debt'. Its just money that the government creates.
Secondly, can I assume by reading this that the author and those agreeing with him would rather live in a world where the government creates $0 annually? Perhaps where the government runs a surplus? i.e. takes more than it issues from the economy.
What happens to the private sector when that has been the case? Government sector issuance is the ONLY source of new money in the economy aside from private bank credit creation, thats why this graph tells such an interesting story:
Is Government Spending Really a Bad Thing?
Governments are not f***cking households!! Balancing the government budget does nothing! The government debt is not actually debt!! "Government debt" is a misnomer, a misunderstanding carried over from the era of fixed exchange. We don't owe that debt to anyone, and maintaining the facade of bond issuance is just that - a facade, a charade, something we don't even need to do!
And anyone who says they prefer the government not create new money through deficit spending, is actually asking for the only real currency issuer in the whole economy to put a gag order on itself, so that we can all fight for the dollars remaining in the system currently. Public sector investment is the only way forward, its obvious if you just understand whats going on. Balanced budgets and austerity are a death sentence for the economy, have you seen what has happened to Ireland, Greece, Spain, Portugal and Italy over the last three years? The more they cut spending, the deeper they enter into recession. Austerity has been refuted in Europe for anyone who was paying attention.
I think ucde is just a bot programmed with all of Kommandant Krugman's Keynesian Klown talking points.
The only thing not included in this rant is "Conscience of a Liberal."
That they expect their actions to stabilize anything is overreaching on their part.
To have expectations you need a working brain. So this is a rhetorical question.
When the people in control put themselves first, everyone else comes in second.
This Act (the Federal Reserve Act, Dec. 23rd 1913) establishes the most gigantic trust on earth. When the President signs this bill, the invisible government by the Monetary Power will be legalized. The people may not know it immediately, but the day of reckoning is only a few years removed. The trusts will soon realize that they have gone too far even for their own good. The people must make a declaration of independence to relieve themselves from the Monetary Power. This they will be able to do by taking control of Congress. Wall Streeters could not cheat us if you Senators and Representatives did not make a humbug of Congress... The greatest crime of Congress is its currency system. The worst legislative crime of the ages is perpetrated by this banking bill. The caucus and the party bosses have again operated and prevented the people from getting the benefit of their own government.
wmbz Government for/by the people is illusion, always has been. Governments = control by TPTB.
It's no surprise that "The last official act of any government is to loot the nation."
.gov has the kind of power over space and time such that deficits, and debt - can be frozen at will no worries.
http://cnsnews.com/news/article/treasury-debt-has-been-exactly-166993960...
history does rhyme, does it not?
anyway, being a simple kind of man, I see things without all this nuance.
Ink and paper is traded for real assets/goods and services.
The name of the game is to find a way to have MOAR of the things in exchange for said paper before the war is started and the zombies come.
~~~~~~~
Burn it.
Burn it all.
If your expectations really are that central bankers should keep the economy on an even keel, you must be new here. That was never the purpose of central banks.
Their purpose was to keep an unstable fractional-reserve banking system from collapse and maintain governments' access to the credit needed to maintain the standing armies required to discourage peasant or worker revolts (and promptly put down any such revolts).
As far as that goes, mission accomplished since 1913.
There is no institution left except the Fed and other central bankers to step up to the plate and take full responsibility for their grabbing all the power and to fix any big problems. They must know this.
The timeline for the collapsing global economy.
Japanese banks had been on a maniacal lending spree into real estate and the bubble popped in 1989. Rather than own up to losses and admit their bankers were fools, they covered up the problems with loose monetary policy.
Japan then had the rest of the world to trade with that was still doing well but it never really recovered.
US banks went on a maniacal lending spree into real estate and the bubble popped in 2008. Rather than own up to losses and admit their bankers were fools, they covered up the problems with loose monetary policy.
US banks used complex financial instruments to spread this problem throughout the West.
Rather than own up to losses and admit their bankers were fools, the UK and Euro-zone covered up the problems with loose monetary policy.
Japan, the UK, the US and the Euro-zone had the BRICS nations to trade with that were still doing well but they never really recovered.
The BRICS nations are now heading for recession.
Doesn’t look good does it.
Removing the creative destruction of Capitalism from the financial sector has been a global disaster.
http://www.reuters.com/article/2015/10/02/us-usa-fed-stability-idUSKCN0R...
Prick asset bubbles with rates? Fed officials split
BOSTON | By Jonathan Spicer
The question of whether the Federal Reserve should adjust interest rates to deflate risky financial market bubbles split some top Fed policymakers on Friday, suggesting the controversial idea is re-emerging as the U.S. central bank approaches an historic policy tightening.
Giving the central bank an effective third mandate - beyond its formal objectives for inflation and employment - has won more adherents since the 2007-2009 financial crisis, which some blame in part on too-easy monetary policy in the preceding years that allowed risks to take root.
As the Fed approaches its first rate hike in nearly a decade, one reason to act sooner than later is to head off any brewing instabilities in risky corners of financial markets such as leveraged loans, high-yield debt and even automobile lending.
So far the Fed's approach has been to use financial regulations and supervision of banks and other firms - so-called macroprudential tools - to head off any emerging risks. Monetary policy has focused on achieving the goals of 2-percent inflation and maximum stable employment.
But Fed officials discuss financial stability quite frequently in their meetings and those discussions already do influence policy decisions, according to a paper co-authored by Boston Fed President Eric Rosengren.
"There are reasons to believe that financial stability should be an explicit consideration of monetary policymakers," concluded the paper, published Friday at a Boston Fed conference attended by central bankers from around the world.
Rosengren, among the dovish Fed officials who prefers to keep rates low to boost employment, called the research "an initial foray into this area ... but it does capture I think the way we seem to behave."
The paper was based on the number of times Fed officials mentioned terms related to financial stability in policy meetings from 1987 through 2009, which is the latest year for which transcripts are available.
References spiked in the late-1990s technology bubble and again in the recent crisis, it found, with for example "stock market" referenced 1,210 times in that time frame, "bust" 982 times, "volatility" 853 times, and "froth" 30 times.
Concerns about possible bubbles in the financial system have increasingly come to the foreground as policymakers consider when to begin raising rates after nearly seven years near zero, with Fed Chair Janet Yellen and most others predicting the move will happen later this year.
Yellen and others have publicly worried that keeping borrowing costs too low for too long can fuel too much risk-taking by investors and possibly destabilize the economy.
However Narayana Kocherlakota, another dove and the head of the Minneapolis Fed, came out strongly against adding the goal of stabilizing the financial system to the U.S. central bank's list of duties, saying that doing so would add to existing public uncertainty over the Fed's existing two goals.
"Adding a financial stability mandate would likely generate more public uncertainty about policy choices and economic outcomes," Kocherlakota told the conference in response to the paper.
The Fed should only be concerned about financial stability to the extent that it affects its ability to reach its other two goals, which are enshrined in U.S. law.
The Fed should be clearer about its existing goals, and should promise to calibrate policy so that it can reach its inflation goal within two years, he said, adding it would need to ease - not tighten - policy to reach such a deadline.
Cleveland Fed President Loretta Mester, also in Boston, cautioned that monetary and macroprudential policy discussions should probably be separated to protect the central bank's cherished independence.
"If effective monetary policy means taking away the punch bowl just as the party gets going, then effective financial stability policy might mean taking away the punch bowl before the guests have even arrived because the risks to financial stability build up over time and action likely needs to be taken earlier in order to be effective," she said.
While the Fed is bound by the 2010 Dodd-Frank financial reform law to defend against risks to the financial system as a whole, it has generally interpreted that to mean directly supervising banks and other financial institutions, and writing tougher rules on things like capital standards.
Randall Kroszner, who was a Fed governor during the crisis, said the central bank is still struggling to figure out its new role of ensuring financial stability.
"We don't want to have central banks to prevent risk-taking from occurring," he said. "It's a much trickier issue."
The economy has been outsourced by the chickenshit con-gress to the central banking cartel.
It is not a function of any central bank to 'maximize' jobs.That is a function of government by means of limited taxing, providing security, infrastructure and mostly staying the hell out of the way of producers.
Today the central bank has assumed the role of taxpayers,,, funding the government by printing,,, as the tax base has been destroyed by said government allowing the off shoring and on shoring of production to make it's natural born citizens that used to be self sufficient now wards of the state.
If in doubt,,, Check who holds the most paper issued by the u.s government.... The Chinese or the Federal Reserve...
"What If Expectations Of Our Central Bankers Are Simply Too High?"
"Expectations Of Our Central Bankers Are Simply WAY Too High! They're F'ing Clueless!"
There, fixed it...
no means of avoiding the final collapse of a boom brought about by credit expansion.
More Mises Monk nonsense! We don't have credit expansion. We have government counterfeiting that is not being reclaimed by a like amount of interest collections.
Credit is an artifact of the capitalism fraud. That fraud allows governments to expand through inflation. It allows banks to thrive through arbitrary interest collections on each trade and through throttling of certification of traders intent to trade ... which assures their profitable farming operation they like to call the business cycle.
But the Mises Monks are a little bit correct. There will be a collapse ... but it will be caused by the parasite of capitalism.
If the Mises Monks are successful after the reset we can look forward to strangulation rather than inflation.
What a choice!
What if my expectaions of the central bank is effectively ZIRP?
That's how they feel about us.
Yet another article republished on Zero Hedge which grossly understates the seriousness of the situation, due to its superficial view of what is wrong.
The Federal Reserve Board is the American King of Fraud, which is the single most significant institution in the globalized systems made and maintained by the biggest gangsters, the banksters, that have almost totally achieved their goals, as stated by historian Carroll Quigley:
http://www.zerohedge.com/news/2015-09-23/worst-part-central-bankers-know-exactly-what-they-are-doing
The Worst Part Is Central Bankers Know Exactly What They Are Doing
EXCELLENT ARTICLE, featuring the best Carroll Quigley:
"powers of financial capitalism
had another far-reaching goal,
nothing less than to create a
world system of financial
control in private hands
able to dominate the
political system of
each country and
the economy of
the world as
a whole ..."
The existing political economy is based upon governments ENFORCING FRAUDS by privately controlled banks. That system was based upon the excessive successfulness of the application of the methods of organized crime through the political processes, which has resulted in civilization manifesting runaway criminal insanities. Overall, the triumphant ENFORCEMENT OF FRAUDS is the basis of the existence of the Federal Reserve Board. The prolonged and persistent social successfulness of integrated systems of legalized lies, backed by legalized violence, has resulted in almost everyone becoming personally successful in proportion to the degree that they were able to be the best available professional liars and immaculate hypocrites, in order to operate inside of systems based upon ENFORCING FRAUDS.
A civilization based upon ENFORCING FRAUDS develops overall attitudes of the maximum possible evil deliberate ignorance and misunderstanding. In particular, those MAD Money As Debt systems drive people towards deliberately ignoring the principle of the conservation of energy, as well as deliberately misunderstanding the concept of entropy in the most absurdly backward ways possible.
"The great Austrian economist Ludwig von Mises expressed it somewhat more darkly," but still presented the problems within the same overall frame of reference, whereby the economics of industrialization continues to be anthropocentric to an extreme degree, despite the industrial revolutions developing technologies which are trillions of times more powerful and capable than anything which previously existed in human history!
The Federal Reserve Board is supervising the global reserve currency, inside of an overall system where there are globalized electronic monkey money frauds, backed by the threat of force from apes with atomic bombs. The Federal Reserve Board operates through governments ENFORCING FRAUDS by privately controlled banks, which drives runaway social polarization, which is trumped by the ways that drives destruction of the natural world, through everything in that kind of social pyramid system being based on the ability to back up lies with violence.
I agreed with the article above, when it stated:
However, to propose the Austrian school of economics as an alternative view to the Keynesian, is actually a ridiculously superficial view. Hence, the presentation of the problem being that "our central bankers ... have entirely capitulated to the financial system they are supposed to control." TO ANYONE THAT STUDIES THE ACTUAL HISTORY OF THE FINANCIAL SYSTEM, THAT VIEW IS SO UNDERSTATED THAT IT AMOUNTS TO BEING STUPID!
Moreover, the situation is way worse than presented by von Mises' warning about "a final and total catastrophe of the currency system involved.” Since that credit was being created out of nothing, and that kind of "money" was "paying" to strip-mine the planet's natural resources, at an exponential rate, which deliberately ignored and misunderstood the basic laws of natural as much as possible while doing that (because the social successful of systems based upon ENFORCING FRAUDS demanded that to be the case, in order for those systems to be made and maintained), the problems that future generations face due to the accumulating effects of privatized profits dominating political processes, while socialized losses were discounted, are OVERWHELMING.
Moreover, the degree to which all of the existing sociopolitical systems are dominated by the best available professional liars and immaculate hypocrites makes any more "rational" discussion of those problems politically impossible. In that context, the article above was typical of the ways that most of the articles republished on Zero Hedge grossly understate what the problems are, (and therefore, grossly underestimate what realistic resolutions of those problems could possibly become.)
Civilization necessarily operates according to the principles and methods of organized crime, because human beings necessarily are entropic pumps of environmental energy flows. There are intense paradoxes which develop because the best organized gangsters, the banksters, control the biggest forms of organized crime, which are governments. Those problems have been magnified by many orders of magnitude by progress in physical science enabling technologies to become trillions of times more capable and powerful, while those were still channeled through social pyramid systems based upon backing up lies with violence. The social successfulness based upon ENFORCING FRAUDS continues to develop its inherent double-bind, Catch 22s, that being able to ENFORCE FRAUDS still never stops those FRAUDS BEING FALSE.
The excessive successfulness of organized crime made and maintained the Federal Reserve Board, as the American King of Fraud, within globalized systems, where the Bank of International Settlements is the King of Kings of Fraud. There is almost no publicly significant opposition to those banksters, due to the degree that those banksters also developed their abilities to control their apparent opposition. Indeed, there is almost nothing but a core of organized crime, surrounded by layers of controlled opposition.
In my opinion, it is clear that von Mises, as well as the author of the article above, operate inside that category of controlled opposition. As was expressed on Zero Hedge by Cognitive Dissonance: "The absolute best controlled opposition is one that doesn't know they are controlled." THE DEGREE TO WHICH PEOPLE THINK USING THE BIGGEST BULLIES' BULLSHIT LANGUAGE, AND COMMUNICATE THROUGH USING THAT BULLSHIT LANGUAGE, MAKES IT POLITICALLY IMPOSSIBLE TO HAVE ANY RELATIVELY RATIONAL DEBATES ABOUT ANY IMPORTANT POLITICAL ECONOMY ISSUES.
In order to overcome that, first it would be required to recognize that the political economy is based upon ENFORCING FRAUDS, and then it would be required to come to deeper understanding of how and why that was the case. While some of the content published on Zero Hedge, especially in the comments, somewhat recognizes the first set of facts that central banks are due to the triumphant applications of the methods of organized crime through the political processes, so that governments use their public powers to ENFORCE FRAUDS by privately controlled banks, in my view a deeper understanding of how and why that IS the case is almost never presented.
Therefore, I could describe my position as the Fringe Cubed view of the political economy. The mainstream view is that the central banks are somehow the "good guys," rather than the most successful organized criminals, who have accomplished the supreme achievement of organized crime, which is legalized counterfeiting of the public "money" supplies, as debts for everyone else. Surrounding that utterly naive view that the banksters are "good guys" are the various layers of controlled opposition, that promote their bogus views of "sound and honest monetary systems," to replace the currently existing systems. Those views regarding various degrees of recommending "monetary reforms" are mostly the first and second level of relatively fringe opinions.
My view is that money is measurement backed by murder, and therefore, nothing less than monetary revolution could be enough. However, such a monetary revolution should be based upon a series of intellectual scientific revolutions, and profound paradigm shifts in the perception of political problems, which would more directly admit and address how and why the debt controls were backed by the death controls. It was because the international banksters were the best organized gangs of criminals that they were able to capture control over the biggest forms of organized crime, which were the governments, originally made and maintained through the history of warfare, so that the surviving War Kings, that developed their powers to rob (as taxation), backed by their powers to kill (as their rule of law), which were then covertly captured by the Fraud Kings, the banksters, applying the same basic methods of organized crime.
In general, human beings and civilization ought to be understood as entropic pumps of environmental energy flows, so that such political science could be consistent with physical science. However, the currently existing political economy, based upon ENFORCED FRAUDS, is therefore based upon deliberately ignoring and misunderstanding that as much as possible. The more that there was progress in physical science, the more that civilization controlled through social systems based on being able to back up lies with violence became runaway criminal insanities. The more that the industrial revolutions changed the ways that people were able to live, the more psychotic they became.
Of course, human beings and civilization never actually violated the laws of nature. Rather, the intensely paradoxical developments were that natural selection pressures drove human artificial selection systems to become based upon the maximum possible deceits and frauds, which were publicly presented in the most absurdly backward ways possible. Hence, we are living inside of Wonderland Matrix Bizarro Worlds!
As the consequences of that become more and more blatantly obvious, more and more people are beginning to notice. However, the mainstream media and schools tend to continue to lie by omission about those problems as much as possible. Meanwhile, most of the first and second levels of fringe opinions, such as those presented in most of the content published on Zero Hedge, continue to be relatively superficial in their presentations.
The first level of fringe opinion tends to either implicitly or explicitly rely upon the presumptions which could be labeled as Hanlon's Razor. The article above mostly did that, by presuming that the Federal Reserve Board is merely incompetently stupid regarding their monetary policies. The next level of fringe opinion tends to be that which I already linked above, which I REPEAT:
http://www.zerohedge.com/news/2015-09-23/worst-part-central-bankers-know-exactly-what-they-are-doing
The Worst Part Is Central Bankers Know Exactly What They Are Doing
The third level of fringe opinion, which is my own, or the Fringe Cubed position, is what happens when one goes through SUBTRACTION OF THE SUBTRACTION OF THE SUBTRACTION, OR, THE NEGATION OF THE NEGATION OF THE NEGATION ...
Everything that human beings think and do is based upon their original SUBTRACTIONS, from which follows their ROBBERIES. The only things that exist are the dynamic equilibria between different systems or organized lies operating robberies. The Federal Reserve Board is the single most significant institutionalization of the ways that governments ENFORCE FRAUDS by privately controlled banks, in order to engage in symbolic robberies.
Articles like the one above do not recognize that, and therefore, do not recognize that the apparent problems are due to the excessive successfulness of the established sociopolitical institutions, which have driven the current dynamic equilibria to become extremely UNBALANCED ENFORCED FRAUDS.
The article above started:
"According to Einstein ..."
Philosophically, that atomic bombs go boom is due to time and space actually being relative illusions, rather than independent absolutes. Similarly so with all of the other prodigious progress achieved by mathematical physics, which has enabled the existing political economy to become electronic frauds, backed by atomic bombs. Radical changes in the understanding of time and space also then apply to radical changes in the understanding of the concept of entropy, since that is the distribution of energy through time and space. However, the vast majority of people continue to presume to take for granted the old-fashioned views of time and space, and entropy.
Therefore, we are watching the runaway developments of physical science and technology, which have not been integrated and surpassed by profound paradigm shifts in political science. There now EXIST globalized electronic frauds, backed by atomic bombs, because money was ALWAYS measurements backed by murders, as the most abstract forms of private property being claims backed by coercions. Human beings and civilization have developed in ways which deliberately ignore and misunderstand themselves in the maximum possible, absurdly backward ways.
The more that physical science progresses, the more psychotic our political economy becomes! That the Federal Reserve Board's monetary policies are based upon ENFORCING FRAUDS, which are never able to stop those FRAUDS from still being FALSE, automatically drives that situation to get worse, faster ... However, at the same time, the deeper levels of more radical truths are things which neither the ruling classes, nor those who they rule over, are willing to admit and address. Human artificial selection systems were driven to develop their intensely paradoxical sets of consistent contradiction, due to the long history of successful warfare based upon deceits and treacheries, which then morphed to become successful finance based upon ENFORCING FRAUDS.
POLITICAL FUNDING continues to be the place where the maximum leverage exists, due to the privatized profits' feedback loops, while the socialized losses continue to have negligible effects by comparison. THOSE VICIOUS SPIRALS OF POLITICAL FUNDING & ENFORCING FRAUDS ARE SPINNING OUT OF CONTROL! Therefore, collectively, the human species appears to be preparing to commit suicide, while it seems politically impossible to effectively prevent that ...
Within that context, I find it RIDICULOUSLY SUPERFICIAL to ask: "What If Expectations Of Our Central Bankers Are Simply Too High?" Central bankers are trapped within the central social facts that civilization is controlled by being able to back up lies with violence, which became more and more sophisticated systems of legalized lies, backed by legalized violence, which enabled the centralization of the power of central banks, to be able to control civilization through governments ENFORCING FRAUDS. Since being able to ENFORCE FRAUDS never stops those frauds from still being false, the article above asked a Bizarro Mirror World kind of question!
The correct answer is that our expectations could barely be low enough! Civilization is necessarily controlled by the principles and methods of organized crime, which the majority of people necessarily do not understand, or misunderstand to the maximum possible degree. Some of content on Zero Hedge tends to present some of the recognition of the social facts that the banksters are the best organized gangsters, which have captured control over governments, as the biggest forms of organized crime. However, there are almost never presented any more realistic resolutions of those real problems. Indeed, since the majority of people continue to not know the central social facts about central banks, and have been mostly conditioned to feel like they do not want to know, it is politically impossible to imagine any other final outcomes than for the MAD Money As Debt systems to MADLY destroy themselves.
Whatever might survive and emerge through the times of severe social storms blowing through, due to debt slavery systems generating numbers that become debt insanities, that provoke death insanities, is extremely difficult to predict! The established systems automatically become more psychotic every day, due to the systems based upon ENFORCING FRAUDS continuing to attempt to double down ... despite that doing so would require to continue to strip-mine the planet's natural resources at an exponential rate.
The limits of diminishing returns, from being able to strip-mine the planet, will show up first and foremost through the fundamentally fraudulent financial accounting systems which were facilitating that, and those will seem to manifest in counter-intuitive ways, to those whose mental models have nothing available to consider how and why that is happening. The exponential growth of the total of the human population and activities was based upon turning natural resources into garbage and pollution as fast as possible, through a political economy based upon ENFORCING FRAUDS, enabled by POLITICAL FUNDING which was done through the privatized profits' positive feedback loops, while the socialized losses were disregarded. We are reaching the points where the socialized losses are exceeding the privatized profits. However, nothing within the established sociopolitical systems can cope with those developments. POLITICAL FUNDING CONTINUES TO DRIVE THE ENFORCEMENT OF FRAUDS.
Since the ruling classes are all professional liars and immaculate hypocrites, while the controlled opposition groups stay within the same frame of reference, those who are ruled over tend to continue to be too clueless to have a clue how clueless they are! Theoretically, reaching the limits of diminishing returns from being able to strip-mine the planet's natural resources at an exponentially accelerating rate should motivate civilization to change to adapt to those radically different conditions, by radically changing their attitudes and behaviors.
However, articles like the one above underscore the degree to which even relatively well-educated people have superficial views about how the political economy really works, and why. Rather, in my opinion, to echo the metaphorical opening line of that article, we appear to have already gone beyond the event horizon into a social black hole:
FEEDBACK LOOPS THROUGH POLITICAL FUNDING OF ENFORCED FRAUDS APPEAR TO BE UNSTOPPABLE BY ANYTHING OTHER THAN THEIR OWN MAD SELF-DESTRUCTION.
The Fed Put...http://macro-man.blogspot.com/2015/10/the-fed-put-is-real-and-its-specta...