by John Galt
July 15, 2012 16:05 ET
Ambrose Evans-Pritrchard doubles down on his criticism of the central banksters in tonight’s column in the U.K. Telegraph:
Is Mr. Pritchard supporting this discussion based on the statements of the ECRI only? From the article he states:
The Federal Reserve has drifted into fatalism, seeming to lose confidence in its own ability to shape events, displaying the same lack of “Rooseveltian resolve” as the Fed in the early 1930s — to borrow an expression written years ago by a young Princeton professor, and Fed scourge, called Ben Bernanke.
There is no sign yet that the Fed is willing to launch further bond purchases before the pre-election window closes, as it did with QE2 in the summer scare on 2010.
Doves are itching to act. “We’re really right at that edge,” said San Francisco Fed chief John Williams. Yet last week’s Fed Minutes are a declaration of paralysis. Hawks still discern an inflation threat, even though 10-year Treasury yields have dropped to 1.49pc and the inflation-linked `TIPS’ have hit minus 0.6pc. But then Fed hawks discerned inflation in 1932 as well.
It is a form of psychosis.
I wish it were just a sign of mental illness or a psychological disorder. When one looks at monetary velocity (M2) from the Fed itself, there is little doubt that an economic contraction is well underway:
This is another must read from Mr. Pritchard as once again he summarizes the opinions of others to support an argument that many of us agree with about the inept, oaf like behavior of our central banksters around the world. Sadly, the victims of their ineptitude and evil is not those who lost 20% of their bonuses at the world’s investment banks but in fact the average schmuck who has witnessed their retirement accounts devastated by ZIRP and then raped with commodity inflation inspired by unchecked monetary printing.