File under: “It is impossible to get a man to understand something when his livelihood depends on his not understanding it.”
This morning I came across a Bob Murphy tweet replying to Mark Carney, the Canadian central banker and Davos darling:
It turned out the tweet he was responding to was the fourth in a 5-series tweetstorm, fittingly authored on April Fool’s day, extolling the virtues of central bank mangling of stewardship over the financial markets.
The series was extraordinarily devoid of self-awareness, taking a victory lap on behalf of central bankers and The Saviour State.
The market certainly can “be wrong” longer than most participants can stay solvent. Especially when “being wrong” means mind-bogglingly overvalued and being propped up by central bankers like Carney printing money out of thin air, holding interest rates to the floor and exacerbating wealth inequality.
Carney is right. Hoping that central bankers finally figure it out isn’t a strategy.
That’s is precisely why when the central bank induced asset bubble popped in the GFC of 2008, and central banks simply doubled down on the failed policies that created it in the first place, Bitcoin was born.
After that it took on a life of its own, myriad other crypto currencies followed in its wake and now, these non-state, decentralized crypto currencies are sucking wealth out of bonds, fiat and cash.
The slower moving gold hit two successive all-time-highs while the central bankers kept printing. And now with the Fed, the ECB, the BOE, BOJ and the BOC trapped with yield curve control as the only play left, everything else is screaming higher. Bang up job, guys.
You may not be able to spin yourself out of a crisis. The only move is to print money.
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MARK E. JEFTOVIC , bombthrower.com, mark carney, central banks,