In the time of “secular stagnation,” the burden of economic policy has fallen on the world’s central bankers. Whatever the question of economic malaise the answer is to print money and stave off the fear of deflation. This is why Ben Bernanke was the captain of the ’37ers, the cadre of central bankers who learned that the mistakes made by the U.S. Secretary of Treasury and the Federal Reserve would not be repeated. As it goes, it is easier to stop inflation then it is to prevent the pains of a deflationary spiral. The central banks of all the developed world economies are in full stop deflation mode. Thus, when in doubt, PRINT.
Posts Tagged ‘gold referendum’
Notes From Underground: To Print or Not to Print (For the BOJ and SNB)
November 24, 2014Notes From Underground: A Short Hiatus Before Year-End Volatility Rises
November 18, 2014For the next few days I will be resting, hoping to enjoy some peace before the potential storms that face the financial markets at the end of 2014. Now that the Japanese election has been decided there is certain to be great volatility in all Japanese investments as polls get released and money becomes nervous. It seems that Prime Minister Abe is trying to solidify his hold on the LDP by going directly to the people. In an effort to gain the voters support Abe has decided to delay the scheduled sales tax increase and also announced a corporate tax cut. The game for Abe is to get public support to overcome the fiscal hawks that the prime minister believes are stalling the economy and preventing the completion of Abenomics and the “three arrow agenda.” The stalwarts of the LDP will be defeated by an overwhelming ABE victory.