{"id":10624,"date":"2015-08-01T19:30:48","date_gmt":"2015-08-02T00:30:48","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10624"},"modified":"2015-08-01T19:30:48","modified_gmt":"2015-08-02T00:30:48","slug":"money-and-spheres","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10624","title":{"rendered":"Money and Spheres"},"content":{"rendered":"

Money and Spheres<\/a><\/h3>\n
In a tiny subsection of the analytical world, analysis is becoming more pointed and poignant. I appreciate Bill Gross\u2019s August commentary, where he concluded: \u201cSay a little prayer that the BIS, yours truly, and a growing cast of contrarians, such as Jim Bianco and CNBC\u2019s Rick Santelli, can convince the establishment that their world has changed.\u201d<\/p>\n

I\u2019ll include the names Russell Napier, Albert Edwards and David Stockman as serious analysts whose views are especially pertinent. I presume each will exert minimal effect on \u201cthe establishment.\u201d<\/p>\n

Back to Bill Gross: \u201cThe BIS emphatically avers that there are substantial medium term costs of \u2018persistent ultra-low interest rates\u2019. Such rates they claim, \u2018sap banks\u2019 interest margins…cause pervasive mispricing in financial markets…threaten the solvency of insurance companies and pension funds…and as a result test technical, economic, legal and even political boundaries.\u2019 \u2018\u2026The reason [the Fed will commence rate increases] will be that the central bankers that are charged with leading the global financial markets \u2013 the Fed and the BOE for now \u2013 are wising up; that the Taylor rule and any other standard signal of monetary policy must now be discarded into the trash bin of history.\u201d<\/p>\n<\/div>\n

Count me skeptical that central bankers are on the brink of \u201cwising up.\u201d I have less confidence these days in the Fed than ever. For one, they are hopelessly trapped in Bubbles of their own making. Sure, crashing commodities and bubbling stock markets incite a little belated rethink. Yet I\u2019ve seen not a hint of indication that policymakers are about to discard flawed doctrine. Devising inflationary measures \u2013 clever and otherwise – will remain their fixation. For a long time now, I\u2019ve identified inflationism as the root cause of precarious financial and economic dynamics that will end in disaster. It\u2019s been painful to witness the worst-case scenario unfold before our eyes.<\/span>
\n…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Money and Spheres In a tiny subsection of the analytical world, analysis is becoming more pointed and poignant. I appreciate Bill Gross\u2019s August commentary, where he concluded: \u201cSay a little prayer that the BIS, yours truly, and a growing cast of contrarians, such as Jim Bianco and CNBC\u2019s Rick Santelli, can convince the establishment that […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[63,1870,1269,3756,124,7756,303,426,1154,536,7757],"class_list":["post-10624","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banks","tag-bill-gross","tag-bis","tag-boe","tag-central-banks","tag-credit-bubble-bulletin","tag-fed","tag-inflation","tag-interest-rate-policy","tag-money","tag-taylor-rule"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10624"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10624\/revisions"}],"predecessor-version":[{"id":10625,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10624\/revisions\/10625"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}