{"id":1448,"date":"2014-11-11T15:10:53","date_gmt":"2014-11-11T20:10:53","guid":{"rendered":"http:\/\/olduvai.ca\/?p=1448"},"modified":"2014-11-11T15:10:53","modified_gmt":"2014-11-11T20:10:53","slug":"yellens-message-to-draghi-print-baby-print","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=1448","title":{"rendered":"Yellen\u2019s Message to Draghi: Print, Baby, Print! |"},"content":{"rendered":"

Yellen\u2019s Message to Draghi: Print, Baby, Print! |<\/a>.<\/p>\n

Bloomberg informs us that there is a \u201cYellen Message to Europeans Divided on QE: Do Whatever It Takes<\/a>\u201d. The belief that central bank bureaucrats can \u201crescue\u201d the economy by printing more money evidently remains as firmly ingrained as ever. As Paul Singer, the head of Elliott Management, remarked on this in a recent letter to investors (note that Mr. Singer has an excellent track record as an investor spanning four decades):<\/p>\n

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\u201cCentral bank manipulation of prices and risk taking has become the norm over the last six years, because it is so hard for investors to see the downside.\u00a0QE and ZIRP have been \u2018free,\u2019 as far as most people are concerned, in terms of stability, asset price and economic growth, and economic recovery. \u2018Free\u2019 in this context means devoid of future countervailing negative consequences.\u00a0<\/em><\/strong>Unfortunately, this particular magic bullet is illusory \u2014 the negative consequences are only in their early stages of unveiling\u2026<\/p>\n

\u201cCentral bankers do not understand that it was their tinkering, manipulation, bailouts and false confidence that encouraged and enabled the insanity that led to the fragility and collapse. Partially as a result of that misunderstanding, the developed world has doubled down on the same policies, feeding the central bankers\u2019 supreme self-confidence.<\/em><\/strong>\u00a0Political leaders have been content to stand aside and watch the central bankers do their seemingly magical and magnificent work.<\/p>\n

The believers in the wisdom of this central-banker-centric economic world have been crowing and gloating that those (like us) who have raised concerns about the risks posed by the post-crisis, monetary-dominated policy mix (inflation, distortions, growing inequality, lower growth) are just \u2018wrong\u2019 and should apologize for a \u2018massive error.\u2019<\/em><\/strong>\u00a0This, shall we say, \u2018Krugmanization\u2019 of a substantial portion of the economics profession and punditocracy is in its triumphalist phase, and whether its smug non-stop \u2018victory lap\u2019 ultimately represents an embarrassing high-water mark is for subsequent events to reveal.\u201d<\/em><\/strong><\/p>\n<\/blockquote>\n

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(emphasis added)<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Yellen\u2019s Message to Draghi: Print, Baby, Print! |. Bloomberg informs us that there is a \u201cYellen Message to Europeans Divided on QE: Do Whatever It Takes\u201d. The belief that central bank bureaucrats can \u201crescue\u201d the economy by printing more money evidently remains as firmly ingrained as ever. As Paul Singer, the head of Elliott Management, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","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":[124,279,451,1044,661],"class_list":["post-1448","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-eu","tag-janet-yellen","tag-mario-draghi","tag-qe"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1448","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=1448"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1448\/revisions"}],"predecessor-version":[{"id":1449,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1448\/revisions\/1449"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1448"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1448"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1448"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}