{"id":20759,"date":"2016-05-19T20:05:35","date_gmt":"2016-05-20T01:05:35","guid":{"rendered":"http:\/\/olduvai.ca\/?p=20759"},"modified":"2016-05-19T20:05:35","modified_gmt":"2016-05-20T01:05:35","slug":"central-banks-can-do-nothing-jakobsen","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=20759","title":{"rendered":"&#8216;Central banks can do nothing&#8217;: Jakobsen"},"content":{"rendered":"<h3 class=\"title tf-title header-large bold\"><a href=\"https:\/\/www.tradingfloor.com\/posts\/central-banks-can-do-nothing-jakobsen-7641241\">&#8216;Central banks can do nothing&#8217;: Jakobsen<\/a><\/h3>\n<div class=\"text tf-text text-medium\">\n<div>\n<div>\n<ul>\n<li>2016 has seen a popular reaction against zero-bound policies<\/li>\n<li>Political elites are struggling to preserve an unfruitful status quo<\/li>\n<li>&#8216;The world has become elitist in every way&#8217;: Jakobsen<\/li>\n<li>Political middle has become crowded, stagnant; new spectrum of ideas needed<\/li>\n<li>Investment in education and research needed; zero rates are a dead end<\/li>\n<li>Saxo chief economist remains &#8216;very positive&#8217; overall<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<div>In April 2015, Saxo Bank chief economist Steen Jakobsen said that zero rates, zero growth, zero productivity, and zero reforms\u00a0<a href=\"https:\/\/www.google.dk\/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=2&amp;cad=rja&amp;uact=8&amp;ved=0ahUKEwixo6r13-DMAhXB0hoKHTmaBqYQFgghMAE&amp;url=https%3A%2F%2Fwww.tradingfloor.com%2Fposts%2Fthe-new-nothingness-4431823&amp;usg=AFQjCNFHNN4jaGg8gTOipoIdhrodBemLmg&amp;sig2=OCr_sTfX7dsgGk8123dBhQ&amp;bvm=bv.122129774,d.d2s\">have left a great many countries adrift in a \u201cnew nothingness\u201d<\/a>.<\/p>\n<div><\/div>\n<div>The products of this nothingness, said Jakobsen, include apathy, stagnation and \u201can economic outlook based more in peoples\u2019 heads than in reality\u201d. On the cultural level, he continued, the widespread lack of dynamism and new ideas has empowered a political class that is \u201cmainly interested in maintaining the status quo\u201d, even as that status quo provides sharply diminishing returns.<\/div>\n<div><\/div>\n<div>US GDP growth, for instance, is hugging the zero line:<\/div>\n<div><img decoding=\"async\" class=\"popup-image\" src=\"https:\/\/www.tradingfloor.com\/images\/article\/max608w\/92204e88-b70a-4221-a7bb-34d4d3378248.png\" alt=\"US real GDP\" data-original-image=\"\/images\/article\/original\/92204e88-b70a-4221-a7bb-34d4d3378248.png\" \/><em>Create your own charts with SaxoTraderGO\u00a0<a href=\"https:\/\/www.tradingfloor.com\/charting\">click here<\/a>\u00a0to\u00a0<\/em><em>learn more<\/em><\/p>\n<div class=\"ddd\">Source: Federal Reserve Economic Data<\/div>\n<\/div>\n<div><\/div>\n<div>A little more than one year on and we remain, in terms of economics and monetary policy at least, profoundly entranced by this combination of zero-bound policies and continual \u201cemergency measures\u201d.<\/div>\n<div><\/div>\n<div>Culturally and politically, however, the past 12 months have demonstrated time and time again that nature abhors a vacuum.<\/div>\n<div><\/div>\n<div>In Europe, for instance, we have the spectacle of the European Union\u2019s second-largest economy\u00a0<a href=\"https:\/\/www.google.com\/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=newssearch&amp;cd=1&amp;cad=rja&amp;uact=8&amp;ved=0ahUKEwi4zOiW4eDMAhUC2xoKHQ1WCkIQqQIIHSgAMAA&amp;url=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fbd0e993c-18ef-11e6-bb7d-ee563a5a1cc1.html&amp;usg=AFQjCNF16lcilgb4pZv41dExMrzQnB8C6Q&amp;sig2=5B1vdgSmM9jMABiURkt0dw\">voting on whether it wants to leave the union<\/a>\u00a0next month.\u00a0In the United States, the candidacies of\u00a0<a href=\"https:\/\/www.google.com\/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=newssearch&amp;cd=3&amp;cad=rja&amp;uact=8&amp;ved=0ahUKEwjstJmf4eDMAhUSahoKHWp1DikQqQIIOigAMAI&amp;url=http%3A%2F%2Fwww.indystar.com%2Fstory%2Fnews%2Fpolitics%2F2016%2F04%2F29%2Fbernie-sanders-rips-carrier-execs-they-have-no-shame%2F83667086%2F&amp;usg=AFQjCNHoWnNf-tBaQyUvV1m2Ce7M2ZCAWQ&amp;sig2=boT-XRrHTnYqOiIIaaa89g&amp;bvm=bv.122129774,d.d2s\">Democratic senator Bernie Sanders<\/a>\u00a0and Republican front-runner Donald Trump have benefitted enormously from widespread frustration with the current consensus, particularly in the realm of trade where both candidates \u2013 one hard left, one populist right \u2013 point to a declining US manufacturing sector and\u00a0<a href=\"https:\/\/www.google.dk\/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=newssearch&amp;cd=2&amp;cad=rja&amp;uact=8&amp;ved=0ahUKEwjet5S54eDMAhUGMhoKHU4PAI4QqQIIHigAMAE&amp;url=http%3A%2F%2Fseekingalpha.com%2Farticle%2F3975196-frogs-boiling-trillion-dollar-deficits-coming-back-soon&amp;usg=AFQjCNG-fRxqeilBDu52pZVEfawgTaqHlg&amp;sig2=NvlkV5wtKQokDMRy4q5BTg&amp;bvm=bv.122129774,d.d2s\">a recovery bereft of \u201cbreadwinner\u201d jobs<\/a>\u00a0as signs that the country has been led astray.<\/div>\n<\/div>\n<div>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>&#8216;Central banks can do nothing&#8217;: Jakobsen 2016 has seen a popular reaction against zero-bound policies Political elites are struggling to preserve an unfruitful status quo &#8216;The world has become elitist in every way&#8217;: Jakobsen Political middle has become crowded, stagnant; new spectrum of ideas needed Investment in education and research needed; zero rates are a [&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":[2291,13905,703],"class_list":["post-20759","post","type-post","status-publish","format-standard","hentry","category-economics","tag-2291","tag-michael-s-mckenna","tag-saxo-bank"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20759","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=20759"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20759\/revisions"}],"predecessor-version":[{"id":20760,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20759\/revisions\/20760"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}