Central Bankers Don't Know What They're Doing

[DaveS]

One of the hardest things for many people to comprehend is that the people in charge of currency management around the world – central bankers, the IMF and so forth – don’t actually know what they are doing. They’re faking it.

How do we know this? Because as soon as they are called upon to do something specific, they fail miserably.



http://www.forbes.com/sites/nathanlewis/...king-it/3/

[mattkime]

its just a long ramble in favor of the gold standard with some insults thrown in. not worth reading.

(the central bankers DO NOT have the goal of pegging the currency to any other standard. and if they attempted this, it would likely stifle economic recovery)

[rjmacs]

The biggest problem with returning to a hard-pegged currency like the gold standard is that it will never happen. To me, that's a big enough problem to give up talking about it as though it might ever happen.

Is the modern economy precarious, fluid, impossibly complex and ultimately based on faith instead of mathematical guarantees? Yeah. Welcome to reality.

[cbelt3]

I still find it hysterically amusing to hear that people think that there is such a thing as a 'central world bank' that somehow manages things in an organized fashion.

Hint... government banks do what their Governments say.
Governments are quite good at being incompetent.
Q.E.D.

[Chakravartin]

cbelt3 wrote:
I still find it hysterically amusing to hear that people think that there is such a thing as a 'central world bank' that somehow manages things in an organized fashion.

Hint... government banks do what their Governments say.
Governments are quite good at being incompetent.
Q.E.D.

Government banks are typically run by private parties in the modern age. The fed is not under the direction of the U.S. government.

The entire responsibility for the chairman of the Federal Reserve is to report to Congress twice a year and to file an annual report.

He's otherwise free to do whatever the heck he and his voting members (5 of whom are the heads of banks and 7 are 14-year appointees with enough loopholes to let them serve for their lifetimes) want to do with monetary policy.

[Seacrest]

"...At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained."

-- Ben Bernanke, 28 Mar 2007

[Seacrest]

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