{"id":2070,"date":"2013-05-28T15:21:48","date_gmt":"2013-05-28T15:21:48","guid":{"rendered":"http:\/\/megalextoria.wordpress.com\/?p=2070"},"modified":"2013-05-28T15:21:48","modified_gmt":"2013-05-28T15:21:48","slug":"as-the-market-panic-demonstrates-central-banks-are-stuck-on-a-treadmill-of-money-printing","status":"publish","type":"post","link":"https:\/\/www.megalextoria.com\/wordpress\/index.php\/2013\/05\/28\/as-the-market-panic-demonstrates-central-banks-are-stuck-on-a-treadmill-of-money-printing\/","title":{"rendered":"As the market panic demonstrates, central banks are stuck on a treadmill of money printing"},"content":{"rendered":"<p>Oh what a tangled web central bankers weave when they practice to deceive\u2026 Last night\u2019s panic in Tokyo, where the Nikkei dropped a stomach churning 7 per cent, demonstrates just how difficult it\u2019s going to be for the world\u2019s central banks to exit their loose money policies.<\/p>\n<p>It\u2019s not even as if Ben Bernanke, chairman of the Fed, said he was planning to exit; in fact, initially he said the reverse in testimony to Congress. It was only in the Q &amp; A, and in minutes to the last meeting of the Fed\u2019s Open Markets Committee, that a clear bias emerged to slow the pace of asset purchases \u201cin the next few meetings\u201d, so long as the economic data was strong enough.<\/p>\n<p>What the subsequent violent gyrations in markets indicate is that any hint of applying the brakes risks generating a fresh financial crisis, which in turn would render the economic recovery still born. Both financial markets and the real economy have become addicted to \u201cquantitative easing\u201d, such that they can\u2019t do without it.<\/p>\n<p>The upshot is that we are going to see financial repression of the type being practiced in virtually all the major advanced economies \u2013 including, if only to a more limited extent, the eurozone \u2013 continue out into the indefinite future.<\/p>\n<p>Full article: <a class=\"externlink\" title=\"Go to http:\/\/blogs.telegraph.co.uk\/finance\/jeremywarner\/100024675\/as-the-market-panic-demonstrates-central-banks-are-stuck-on-a-treadmill-of-money-printing\/\" href=\"http:\/\/blogs.telegraph.co.uk\/finance\/jeremywarner\/100024675\/as-the-market-panic-demonstrates-central-banks-are-stuck-on-a-treadmill-of-money-printing\/\">http:\/\/blogs.telegra \u2026 l-of-money-printing\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oh what a tangled web central bankers weave when they practice to deceive\u2026 Last night\u2019s panic in Tokyo, where the Nikkei dropped a stomach churning 7 per cent, demonstrates just how difficult it\u2019s going to be for the world\u2019s central banks to exit their loose money policies. It\u2019s not even as if Ben Bernanke, chairman of the Fed, said he was planning to exit; in fact, initially he said the reverse in testimony to Congress. It was only in the Q &amp; A, and in minutes to the last meeting of the Fed\u2019s Open Markets Committee, that a clear bias emerged to slow the pace of asset purchases \u201cin the next few meetings\u201d, so long as the economic data was strong enough. What the subsequent violent gyrations in markets indicate is that any hint of applying the brakes risks generating a fresh financial crisis, which in turn would render the economic recovery still born. Both financial markets and the real economy have become addicted to \u201cquantitative easing\u201d, such that they can\u2019t do without it. The upshot is that we are going to see financial repression of the type being practiced in virtually all the major advanced economies \u2013 including, if [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[249,648,692,898],"class_list":["post-2070","post","type-post","status-publish","format-standard","hentry","category-news-and-politics","tag-audit-the-fed","tag-end-the-fed","tag-federal-reserve","tag-inflation"],"_links":{"self":[{"href":"https:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/posts\/2070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/comments?post=2070"}],"version-history":[{"count":0,"href":"https:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/posts\/2070\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/media?parent=2070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/categories?post=2070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/tags?post=2070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}