Following on from yesterday’s Annual Report by the Bank for International Settlements (BIS) warning against continued monetary stimulus by central banks, please find above an interesting interview on CNBC with the BIS’ economic adviser, Stephen Cecchetti, discussing the BIS Report and the risks associated with low-rates environments.
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
Latest posts by Unconventional Economist (see all)
- Chip shortages hammer new car sales - December 6, 2021
- Auction clearances sink under listings flood - December 6, 2021
- Briefing: Australia’s skilled migrant shortage is a sham - December 6, 2021
YOU MAY ALSO BE INTERESTED IN
Bianco: OMICRON will trigger lockdowns
Tweet thread from Jim Bianco to raise the hair on
Crypto crashes as Bitcoin drops $9K in an hour
Not a good start to the week for crypto crazies
Get short Ray Dalio
The latest on the saga consuming Bridgewater is
Time to Tobin tax Ray Dalio out of China
It sounds like Ray Dalio is happy to invest in
While low interest rate causes distortions, the alternative is what? “Liquidate stock, liquidate labour, liquidate real estate”?? Let’s see their logic:
* Household debt is high
* Banks have lot of bad loans
* Businesses cannot make a profit
* Government deficit is high
* Raise interest rate
* ???????
* Economic Salvation.
So how exactly will raising interesting rate lead to economic salvation? Black Magic? Divine Intervention? World War 3?
No pain, no gain. They can’t keep the lamb whole and the wolf full.
“Are central banks living on borrowed time?”
Since debt is indeed “borrowed time”, that is a profound title.
To be completely accurate, one should say that they are living on usury charged for borrowed time.
Sounds like he is talking about Australia at the end.