Sunday, November 19, 2006

Central Bankers Preaching: "Do As We Say, Not As We Do"

The Group of 20 are meeting in Sydney, and here's the gist:

'"Faced with potential inflationary pressures, the normalization of monetary policy underway in many G-20 countries will need to continue,'' the Group of 20 central bankers and finance ministers said in a statement in Melbourne.'

(Bloomberg article)

jim bakker
[Thanks to for the photo of another preacher in the "Do As I Say And Not As I Do" School.]

Why didn't they think of that *before* they started their rampage of liquidity? It's a little late now that they've blown the world's economies into overdrive.

You can't have your cake and eat it, too. You can't pump up a slowing economy with hot air and then expect to be able to recapture that hot air afterwards. Hot air is hot air, i.e. it rises to the top and blows off into speculative space before you can say "Whoosh."

Now we must deal with the excess liquidity the Group of 20 has created. When I say "we" I mean the little guys, the guys and gals left holding the bag, the ones who don't speculate in Wall Street hedge funds, the ones who don't flip houses but who may have bought one way above his/her means through lender greed and deception, the ones who aren't borrowing money in Japan to buy American Treasuries but who think they have a 401K that is relatively safe because their employers are handling it.

I mean the ones who live paycheck to paycheck with 0.00% to 0.10% interest on their checking account and a savings account paying 0.10% interest as of 11/19/06 on up to $9,999.99 (and all of 0.65% on $10,000 to $24,999.99.)

G-20: You should be ashamed of yourselves.


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