"Relax! Trust us! We're your friend - truly! We have your interests at heart." One more time I ask: "So what's new?"
The pressure on central banks to alleviate the funding squeeze is being fuelled by signs that the financial problems may now be contributing to new stress in the real economy.
“The data is a less than gentle reminder that the current crisis is more than a financial sector phenomena but already has a strong real economy component,” said Alan Ruskin, chief international strategist at RBS Greenwich Capital.
Of course there's a real economy crisis, of course the Central Banks across the globe are moving to squeeze both the banking sector and the consumer in every western nation, of course the Central Banks are manouevering into a position of creating indebtedness from all sectors, of course they'll make their move around 2010 - 12, of course I've been saying this all along.
The Central Banks are about as altruistic as the U.N. in Darfur.
I don't understand financial stuff - sorry.
ReplyDeleteBasically, get yourself and anyone you care about out of debt, at almost any cost, as soon as you possibly can.
ReplyDeleteThe global economy is totally unsustainable and it seems highly likely that it will all go horribly wrong fairly soon.
Probably about the best thing that could happen to us IMHO because economic depression is about the only way we're likely to cut our carbon emissions as drastically as we need to. But even I don't imagine it will be a remotely pleasant experience.
Ho hum.
Spot on, Alice. Now the big task - opening the eyes of our fellow citizens. How to do that? How to do that?
ReplyDeleteWelsh - love your comment.
ReplyDeleteWhy do so many people wish the world into economic depression.
ReplyDeleteDo you know that the current expansion has lifted more people out of abject poverty than anything else in the whole of human history?
I guess some people really hate the poor, huh.
(As for the comments on central banks, well they are doing their best for their key clients, banks).
So many assumptions, CUS, in your neat summation.
ReplyDeleteYou are in the financial world and your whole thrust is for your customers/clients. This is simply business.
But you're confusing this, methinks, with Central Bank policy, which is another animal - this is tied in with the global agenda and before you poo poo this - look at the way the Fed's moves were not only signalled for Europe but were then adopted and the rhtoric of the swift ECB response mirrored the Fed.
Are you telling me one central bank does not watch the moves of others? What sort of financial bodies would they be? And CB policy is tied in with EU and U.S.A. policy
Both have shown expansionist, closed border and economic zone tendencies, both are trying to subordinate national identity to greater economic group identity and both are placing control of this identity in the hands of CFR/TLC manifestations of the financial power.
I certainly don't wish depression on anyone, which is why I'm blogging of its dangers and sheeting home the blame for all this to its root cause.
On the micro level, there are certain things each of us can do to starve the CBs of their lifeblood but the commercial banks have just about lost this war by themselves now with this surfeit of loans to them at "attractive" rates.
Altruism? My a-se!
The Fed induced all of this with the knowledge of the ECB and you know that. If they didn't see the housing slump and the credit squeeze coming, then if you won't concede they're culpable, then you have to admit they're dangerously incompetent.
Though rates trade in a range, that range is still a known known and deviance from it [e.g. the recent zero rates] should have been a danger signal.