If central banks are the only game in town, we’ve lost

BloombergOpinion/Satyajit Das

photograph of $100 bills rolling off the printing press“Printing money was always going to be easier than withdrawing it later. In effect, central banks are boxed into a situation where they can’t normalize policy and must maintain low rates and abundant liquidity, lest they destabilize fragile asset markets and spur low growth and disinflation. This state of “infinite QE” risks miscalculations and major policy errors. If central banks are, as is now fashionable to state, the only game in town, then the game is lost.”

USAGOLD note:  Well said. . .and a Bloomberg Opinion piece worth visiting. Historically, replacing real productivity and natural market cycles with the monetary printing press ultimately reduces, as Das puts it so well, to “a recipe for disaster.”


Repost from 2-27-2019

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