{"id":2010,"date":"2014-11-24T15:35:34","date_gmt":"2014-11-24T20:35:34","guid":{"rendered":"http:\/\/olduvai.ca\/?p=2010"},"modified":"2014-11-24T15:35:34","modified_gmt":"2014-11-24T20:35:34","slug":"charles-hugh-smith-central-banks-when-we-succeed-we-fail","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=2010","title":{"rendered":"charles hugh smith-Central Banks: When We Succeed, We Fail"},"content":{"rendered":"<p><a href=\"http:\/\/www.oftwominds.com\/blognov14\/CB-fail11-14.html\">charles hugh smith-Central Banks: When We Succeed, We Fail<\/a>.<\/p>\n<p><span class=\"Apple-style-span\" style=\"color: #404040; font-family: Verdana; font-size: small; line-height: normal;\"><i>Goosing stocks ever higher will eventually push wealth inequality to the point that it unleashes social instability.<\/i><\/span><\/p>\n<p><b>Central banks around the world share a few simple goals:<\/b><\/p>\n<p>1. Defeat deflation by sparking inflation&#8211;in the cost of goods and services, not wages.<\/p>\n<p>2. Weaken the currency to boost exports and counter\u00a0<i>beggar thy neighbor<\/i>\u00a0devaluations by other exporting nations and trading blocs.<\/p>\n<p>3. Boost the value of stocks to keep pension plans afloat and project a politically powerful message of &#8220;growth&#8221; and &#8220;prosperity.&#8221;<\/p>\n<table style=\"float: left;\" border=\"0\" width=\"325\" cellspacing=\"2\" cellpadding=\"2\">\n<tbody>\n<tr>\n<td><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><b>What no central bank dares say is what happens should they manage to boost inflation, devalue their currency and continue pushing assets higher: when we succeed, we fail.<\/b><span class=\"Apple-style-span\" style=\"color: #404040; font-family: Verdana; font-size: small; line-height: normal;\"><\/span><\/p>\n<p>Consider the consequences of juicing inflation: every click up in inflation further reduces the purchasing power of wages, which do not keep up with inflation in a world of labor surplus.<\/p>\n<p><b>When central banks succeed in jacking up inflation, they will fail the households and enterprises whose income is stagnating or declining:<\/b>Were European Central Bank head Mario Draghi honest, here is what he would say:<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>charles hugh smith-Central Banks: When We Succeed, We Fail. Goosing stocks ever higher will eventually push wealth inequality to the point that it unleashes social instability. Central banks around the world share a few simple goals: 1. Defeat deflation by sparking inflation&#8211;in the cost of goods and services, not wages. 2. Weaken the currency to [&hellip;]<\/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":[124,951,202,426],"class_list":["post-2010","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-currency","tag-deflation","tag-inflation"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2010","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=2010"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2010\/revisions"}],"predecessor-version":[{"id":2011,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2010\/revisions\/2011"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}