Thursday, February 20, 2014

Dissension In The Central Banking World

By, Chris Rossini

Bloomberg is reporting on the latest squabble between Republicans & Democrats international central bankers.

Apparently, policies from the central planners at The Fed are negatively affecting the financial situation in other nations:
Less than two years ago, the Fed’s asset purchases were blamed for encumbering emerging nations with speculative capital and pushing up their currencies, making exports more expensive.

As Fed vice chairman at the time, Yellen’s response was to tell a meeting of the IMF in October 2012 in Tokyo that “on balance, stronger U.S. growth is beneficial for the entire global economy.”

That line was echoed on Jan. 31 this year by Federal Reserve Bank of Dallas President Richard Fisher, who said: “If we’re strong, others will benefit from it.”
In other words, the U.S. kingpins are saying that you foreigners better learn to swallow a popularly accepted belief: The U.S. is the nucleus that keeps the entire universe in perfect harmony. Didn't you guys read your Ezra Klein this morning? The U.S. government is the center of all life. Everything springs from it. Your nations are the periphery.
That’s disappointing counterparts such as India’s Raghuram Rajan and Gill Marcus of South Africa, who criticized the lack of a synchronized global monetary policy as developing-nation currencies suffer their worst start to a year since 2010.
India? South Africa?

Know your place. You guys are the junior central planners; you're not the Seniors. The juniors still suffer from "the pretense of knowledge". Seniors have all knowledge.
The Fed’s “job is not to make policy for India, it’s to make policy for the U.S.,” said Joseph Gagnon, a senior fellow at the Peterson Institute for International Economics in Washington and a former Fed economist. “Blaming other people for their problems isn’t very helpful.”
Didn't former U.S. Treasury Secretary John Connally already set you foreigners straight? Hopefully you didn't forget when he said: "the dollar may be our currency, but it is your problem."

What are you guys going to do? Dump the dollar? Dump your U.S. Treasuries? Adopt a gold standard?!?!

Go ahead, give it a try:

The "freedom fighters" will be quickly released to "liberate" your subjects.

Chris Rossini is on TwitterFacebook & Google+

1 comment:

  1. The Fed’s “job is not to make policy for India, it’s to make policy for the U.S.,” said Joseph Gagnon,

    Thats a curious statement because the US has military bases all over the world, has never demurred from invading any country save the ones with nukes or aiding militants when it sees fit. The US also never shrinks from brow beating the poorest countries for "unfair trade practices", environmental and labor policies, etc. Anyone paying attention would have to admit the US seeks to govern the whole world.