by Pater Tenebrarum, Acting-Man.com:
Beware of Experts
The hubris of today’s central bankers really is quite something. They all believe they have things under control and that they will simply pull this lever or that when the time comes, and the economy will obey. They think of the economy as a machine, and of ‘economic variables’ such as production, consumption, interest or inflation (i.e., rising prices for consumer goods – they only care about asset prices when they fall), as cogs in the machine, a machine they have command over.
This delusion is furthered by the vast pseudo-scientific output of today’s ‘monetary theorists’, of which there are a dime a dozen. Given that central banks are major source of bread for ‘macro-economists’, you will find that a great many of them list monetary policy as one of their specialties. They are the developed world’s equivalent of voodoo priests or sangomas.
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