Another Former Central Banker Finally Gets It: "The Idea That Monetary Stimulus Is The Answer Doesn't Seem Right"

What is it about central bankers who wait to tell the truth only after they have quit their post. First it was the maestro himself, the Fed's Alan Greenspan (most recently in "Greenspan's Stunning Admission: "Gold Is Currency; No Fiat Currency, Including the Dollar, Can Match It"), and now it is the Bank of England's former head, Mervyn King, who yesterday told an audience at the LSE that "more monetary stimulus will not help the world economy return to strong growth." That this is happening just as we learn that in one year the world's 1% will collectively own more wealth than the rest of the world combined, and two days before Goldman's Mario Draghi unleashed up to €1 trillion (if not unlimited) in QE, is hardly as surprise, and will be surely ignored by everyone until the inevitable outcome of another "French revolution" finally arrives.

From the Telegraph:

In his first public speech in England since his term at the BoE ended in June 2013, Mr King said he was concerned about a persistent weakness in global economic demand, six years on from the depths of the financial crisis.

 

"We should worry about that," Mr King told an audience at the London School of Economics, where he was once a professor.

 

"We have had the biggest monetary stimulus that the world must have ever seen, and we still have not solved the problem of weak demand. The idea that monetary stimulus after six years ... is the answer doesn't seem (right) to me," he added.

 

Unlike the US Federal Reserve and the Bank of England, the European Central Bank has until now resisted trying to boost the economy by buying government bonds with newly created money, known as quantitative easing (QE).

 

"There are quite serious disequilibria both between and within economies that, for good economic reasons, are depressing demand. Simply lowering rates even further or adding more monetary stimulus is unlikely to solve that problem," he said.

Which is not only ironic but hypocritical because under King, the BoE bought £375bn of government bonds between 2009 and 2011. Mr King said this was right just after the crisis, but that using loose monetary policy to bring forward spending was not a long-term strategy. 

Actually, wrong: since the entire global economy has been hijacked by the same people who would be sleeping under bridges had they not received a multi-trillion bailout in 2008, and since the global financial system now exists only to serve them, and to raise them from billionaire to trillionaire status, QE is precisely that: a long-term strategy, one which will ultimately pillage all the wealth of the middle class and hand it on a golden platter in some non-extradition country to the 0.001%.

Well, long-term at least until the 99% realize they have been subject to the most epic, historic robbery in the history of the world.  Of course, by the time what was formerly the world's middle class realizes what happened, there will be nothing left.