Central bankers and politicians are running out of ideas | Gold Price News
My father, who at one time was an education minister in the Kenyan
government, used to tell a story of a long-forgotten crisis when the
leaders in the educational establishment could only turn to him and ask:
”minister, what shall we do?” The point of the story is that these were
all highly qualified senior academics, while my father had left school
at 16 with no qualifications at all. It amused him.
We have perhaps in the last week seen three instances of the same
thing: expert committee men exhausted of ideas, despite their towering
intellects. I refer to Ben Bernanke’s
Jackson Hole statement which said nothing; David Cameron’s statement at
Prime Minister’s Questions, when he was reduced to that old stand-by
“cure” for economic stagnation (building more houses); and then on
Thursday we had Mario Draghi resorting to buying time by talking
borrowing costs for Spain and Italy down on the conditional promise of
some bond buying. None of them had anything new to offer.
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