From the Port Phillip Insider (Australia)-
This’ll make you laugh. From Bloomberg:
‘Federal Reserve Chair Janet Yellen seems to be coming around to what her one-time rival, Lawrence Summers, has been arguing for a while: Some of the forces holding down interest rates may be long-lasting and secular.’
According to the report, Yellen’s exact quote was that interest rates remain low due to ‘factors that are not going to be rapidly disappearing, but will be part of the new normal.’
Those factors Dr Yellen, you know what they are, don’t you? That’s right…they’re the central banks…including the US Federal Reserve.
Dr Yellen’s comments betray either an extraordinary lack of awareness, a high level of ignorance…or complete bold-faced denial.
It’s like when your annoying friend grabs hold of your hand, slaps you across the face with it, and then tells you to stop hitting yourself!
But that’s the academic central banker for you.
Newsletter writer, James Grant, talks about this period of monetary policy as a ‘PhD Standard’. It’s not a ‘gold standard’ or a ‘US dollar standard’. Instead, the money system is under the complete control of PhD-wielding academics.
And in our view, these people are having a bigger, more negative, and more dangerous impact on the world than a gun-toting terrorist in a nightclub.