{"id":51398,"date":"2020-02-26T12:05:12","date_gmt":"2020-02-26T17:05:12","guid":{"rendered":"https:\/\/olduvai.ca\/?p=51398"},"modified":"2020-02-26T12:05:15","modified_gmt":"2020-02-26T17:05:15","slug":"stockman-warns-the-jig-is-up-covid-19-and-the-defenestration-of-the-central-bankers","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=51398","title":{"rendered":"Stockman Warns “The Jig Is Up!” – Covid-19 And The Defenestration Of The Central Bankers"},"content":{"rendered":"\n

Stockman Warns “The Jig Is Up!” – Covid-19 And The Defenestration Of The Central Bankers<\/a><\/h3>\n\n\n\n

Let it be said that historians will surely marvel – and at some point soon – about the grand delusion of the present era. Namely, the near universal belief that central bankers could print, peg and palaver the main street economy into unfailing expansion and ever rising prosperity<\/strong> and that there were essentially no macro-risks to soaring stock prices that their toolkits couldn\u2019t contain and counteract.<\/p>\n\n\n\n

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That misbegotten belief had huge untoward consequences.<\/strong>\u00a0It made economies brittle with too much leverage, financialization and speculation; and fragile with too few shock absorbers and insurance mechanism such as just-in-case inventories, second suppliers and local sources for physical production and back-up liquidity lines and balance sheet reserves for financial operations.<\/p>\n\n\n\n

Then came the Black Bat of 2020 (or whatever) with its toxic economic contagion. <\/strong>Racing with virtually lightening speed through an infinitely complex and deeply integrated global supply chain anchored in the Red Ponzi, the breakdown of economic activity is already proving that the central banks are not omnipotent after all.<\/p>\n\n\n\n

Just as they cannot print antibodies to stop the coronavirus disease, they can\u2019t print raw materials, intermediates, components and sub-assembly to restart broken supply chains.<\/strong> Super-QE wouldn\u2019t do it; double digit subzero rates wouldn\u2019t help; and openmouth forward guidance would only call to mind King Canute shouting at the incoming sea.<\/p>\n\n\n\n

It is too early to tell, of course, as to whether the Covid-19 is the Big Bang or if it will be soon wrestled to ground by public health authorities around the planet, thereby eventually relieving the global supply chains of quarantined workers, grounded planes, ships and trains, depleted inventories and paralyzed business decision processes.<\/p>\n\n\n\n

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

Stockman Warns “The Jig Is Up!” – Covid-19 And The Defenestration Of The Central Bankers Let it be said that historians will surely marvel – and at some point soon – about the grand delusion of the present era. Namely, the near universal belief that central bankers could print, peg and palaver the main street economy […]<\/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":[123,29092,28817,29011,2120,3650],"class_list":["post-51398","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banking","tag-contra-corner-blog","tag-coronavirus","tag-covid-19","tag-david-stockman","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51398","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=51398"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51398\/revisions"}],"predecessor-version":[{"id":51399,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51398\/revisions\/51399"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}