|Nouriel Roubini writes:|
Who would have thought that six years after the global financial crisis, most advanced economies would still be swimming in an alphabet soup – ZIRP, QE, CE, FG, NDR, and U-FX Int – of unconventional monetary policies? No central bank had considered any of these measures (zero interest rate policy, quantitative easing, credit easing, forward guidance, negative deposit rate, and unlimited foreign exchange intervention, respectively) before 2008. Today, they have become a staple of policymakers’ toolkits.Roubini explains why we will continue to see “slow growth, secular stagnation, disinflation, and even deflation” as these failed policies continue to be used by the world's central bankers.
Yes, it's true that the central bankers are simply insane. Remember the definition of insanity is doing the same things repeatedly and expecting a different outcome? It's time to simply admit the fact: the world's central bankers have failed and it's time to get rid of them. Instead of admitting this, we continue to allow them to run roughshod over the whole world. One can conclude that civilization deserves what's coming if we don't change our current scheme of running things and that's an economic collapse far greater than any prior depression.