For today's definitive example of peak cognitive dissonance and self-delusion among those who determine the monetary fate of the world no less, look no further than the Dallas Fed's Dick Fisher, who just said the following according to Reuters:
- No one presently believes that the Fed is going to proceed with QE3 - is that because it will be called THE NEW QE?
Funny considering earlier, we got this from Goldman's Bill Dudley [13]:
- No decision yet on QE3, New York Fed's Dudley says
Finally, there is this pearl from Goldman's Jan Hatzius as reported here last week [14]:
- Not easing might be equivalent to tightening
And that is why central planning always fails. Because a room of these terminally confused people sits down and determines the fate of the world based on their naive academic interpretation of what they perceive is reality.
More from Reuters:
The U.S. financial system is well funded and needs no further injections of liquidity, a top U.S. central banker said on Monday.
"We have filled the tanks, there is plenty of liquidity. We need no more," Dallas Federal Reserve President Richard Fisher told a round table discussion at a business event in London.
Fisher is an outspoken policy hawk who has been critical of the Fed's last round of asset purchases,
In late 2008, the U.S. central bank slashed interest rates to near zero and has since bought $2.3 trillion in long-term securities in an unprecedented drive to spur growth and revive the economy after the worst recession in decades.
Last week it gave few clues on the prospects for further monetary easing, offering just a slight upgrade to its economic outlook while restating concerns about the high level of unemployment.