By Pater Tenebrarum: The
insanity that has gripped policymakers all over the world really is a
sight to see. There was a time when central bankers were extremely
careful not to do anything that might endanger the currency's value too
much – in other words, they were intent on boiling the frog slowly. And
why wouldn't they? After all, the amount by which the citizenry is
plucked via depreciation of the currency every year is compounding, so
that the men behind the curtain extract more than enough over time. That
they thereby retard economic progress by decades over time as
well is not something anyone would notice after all, since we cannot
engage in a controlled experiment that proves it to all and sundry
beyond doubt. We only know that it is so if we employ sound economic
theory. Since sound economic theory is by its nature not statist, it
is not employed by the mainstream, and so most citizens are successfully
shielded from the truth.
The
latest example for the growing chutzpa of these snake-oil sellers is
provided by Lord Adair Turner in the UK. To give you a little bit of
background: the UK is about to fall into its third recession in a row (a
'triple dip', something that has never before happened) not in spite, but because
the Bank of England has monetized a cool quarter of all outstanding
gilts, which has allowed the zombie TBTF banks to remain on artificial
life support.
However,
that is not Turner's conclusion. The policy is evidently failing, so he
naturally concludes that there should not only be more of it, but it
should become more brazen by veering off into the 'Weimaresque'. After
all, we will be able to stop in time, right? We just need a 'little bit
of it'. Although Turner for some reason also thinks it is 'not
appropriate for the UK' (why not? The UK for some reason 'does not
respond to demand and price signals', which would really be a first in
economic history…where do they find these people?), he thinks everybody else should do it.