As Russia rails against “paper dollars and euros” and extolls the strength of commodities, can the West slash rates or do endless QE to bail out the tiny elite who own most financial assets, and in doing so prove Moscow right in the eyes of the rest of the world?
By Michael Every of Rabobank: As bullets fly, if you are someone who only responds to bullet points, try these two:
We may be on the verge of a replay of 2008 – but we can’t use the same central bank policy responses without creating massive inflation, global Arab Springs, and global chaos.
It took a special kind of thinking to get us into this mess, and an equally special kind of thinking is not helping extract us from it.
Before explaining in more detail, first a hat-tip for today’s title to an @andreapitzer tweet: “Noticing the rise of a new category of pundit: the useless idiot.” Her joke refers to the Leninist phrase “Useful idiot”, the definition of which is: “a political insult that describes a person who, through manipulation or not, is useful to a political cause that is not their own despite not fully realizing their role. This makes them “an idiot,” an unwitting and useful pawn of a propagandist.” If you didn’t know that the odds of you being one are exponentially higher than if you did.


