Why is it that central bankers always wait until after they quit their job before telling the truth?
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From ABC.net [7]
In his keynote address, former governor of the Bank of England Mervyn King gave the Australian mining industry some hope for a brighter future, arguing world insecurity could have a positive impact on the price of gold and other commodities.
He said the geopolitical and economic uncertainty will boost commodity prices.
But he argued globally countries would have to face up to mounting debt, while warning central bank adjustments were not the answer.
"We are beginning to discover that the reason the world recovery is so slow is that monetary policy isn't the answer now, and other policies need to be put in place to rebalance the world economy," he said.
"No one country on its own will find it easy to do this.
"It will require a recasting of relationships between different major economies and that requires an acceptance that trade surpluses will have to diminish in order to allow the countries that previously borrowed a great deal to to reduce their trade deficits, and gradually reduce their indebtedness.
Someone pull the microphone on that tinfoil, fringe blogger right now!
