Over the past year you have probably heard me rail about the folly of monetary madness too many times. Negative rates are an abomination that demonstrate the sheer idiocy of current policy. History will not be kind to countries who have adopted NIRP. But the last thing you need is another post of me shouting at the top of my lungs about the reckless reliance on extreme monetary policy in Europe. You don’t need another diatribe about how easy money and fiscal austerity is a perfect recipe for anemic growth. Maybe if the ECB cuts another 25 basis points to negative 75 basis points then the company which was previously on the fence about CAPEX investing will finally reach the point where they want to take out a loan… Yeah, nope. Not a chance. Monetary policy has reached its limit and Central Bankers should be like that hero in the war movies - you know, the shy quiet kid with a few lines that jumps on the grenade when it gets tossed into the foxhole saving everyone.
DON'T FIGHT THE FISCAL
DON'T FIGHT THE FISCAL
DON'T FIGHT THE FISCAL
Over the past year you have probably heard me rail about the folly of monetary madness too many times. Negative rates are an abomination that demonstrate the sheer idiocy of current policy. History will not be kind to countries who have adopted NIRP. But the last thing you need is another post of me shouting at the top of my lungs about the reckless reliance on extreme monetary policy in Europe. You don’t need another diatribe about how easy money and fiscal austerity is a perfect recipe for anemic growth. Maybe if the ECB cuts another 25 basis points to negative 75 basis points then the company which was previously on the fence about CAPEX investing will finally reach the point where they want to take out a loan… Yeah, nope. Not a chance. Monetary policy has reached its limit and Central Bankers should be like that hero in the war movies - you know, the shy quiet kid with a few lines that jumps on the grenade when it gets tossed into the foxhole saving everyone.