{"id":42709,"date":"2019-01-14T06:03:51","date_gmt":"2019-01-14T11:03:51","guid":{"rendered":"https:\/\/olduvai.ca\/?p=42709"},"modified":"2019-01-14T06:03:51","modified_gmt":"2019-01-14T11:03:51","slug":"why-central-banks-cannot-really-manage-anything","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=42709","title":{"rendered":"Why central banks cannot really Manage Anything"},"content":{"rendered":"
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Why central banks cannot really Manage Anything<\/a><\/h3>\n<\/div>\n
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QUESTION<\/strong>: Marty you recently said that \u201cthe entire problem of lowering interest rates to \u2018stimulate\u2019 the economy demonstrates that central banks cannot really manage anything.\u201d Is this statement really true?<\/p>\n

BG<\/p>\n

ANSWER<\/strong>: Absolutely. There is a basic presumption in all human activity that somehow we possess the power to do anything be it end Global Warming or managing the economy. Yet neither has ever been accomplished. We assume that we MUST<\/strong> do something even if there is nothing we can actually do to reverse the trend. It is like what I just wrote about the Plunge Protection Team. Do you realize that every empire, nation, and city-state at some point realizes the end is near, yet they cannot prevent their own demise any more than we can prevent our own death.<\/p>\n

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\u201cThe Rediscovery of the Business Cycle \u2013 is a sign of the times. Not much more than a decade ago, in what now seems a more innocent age, the \u2018New Economics\u2019 had become orthodoxy. Its basic tenet, repeated in similar words in speech after speech, in article after article, was described by one of its leaders as \u2018the conviction that business cycles were not inevitable, that government policy could and should keep the economy close to a path of steady real growth at a constant target rate of unemployment.\u2019<\/em><\/p>\n

\"\"<\/a>Former Fed Chairman Paul Volcker in his Rediscovery of the Business Cycle<\/strong><\/a> clearly stated the theory of managing the economy with Keynesian tools failed. When he tried sending interest rates cascading higher into 1981, he really altered the economy forever. There was a capo on interest rates known as the Usury Laws.\u00a0On April 1st, 1980, the Depository Institutions Deregulation and Monetary Control Act of 1980 became effective.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Why central banks cannot really Manage Anything QUESTION: Marty you recently said that \u201cthe entire problem of lowering interest rates to \u2018stimulate\u2019 the economy demonstrates that central banks cannot really manage anything.\u201d Is this statement really true? BG ANSWER: Absolutely. There is a basic presumption in all human activity that somehow we possess the power […]<\/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":[5496,98,124,3487,259,431,5479,534,812],"class_list":["post-42709","post","type-post","status-publish","format-standard","hentry","category-economics","tag-armstrong-economics","tag-business-cycle","tag-central-banks","tag-cycles","tag-empire","tag-interest-rates","tag-martin-armstrong","tag-monetary-policy","tag-trends"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42709","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=42709"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42709\/revisions"}],"predecessor-version":[{"id":42710,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42709\/revisions\/42710"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=42709"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=42709"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=42709"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}