Here’s just one more example of how central banks and their governments have turned financial markets into a romper room of crybabies. They just can’t stop demanding another nip on the juice bottle:
As finance chiefs and central bankers from Group of 20 nations gather in Shanghai, Citigroup Inc.’s Steven Englander said a failure to include more explicit support for fiscal stimulus in the closing statement from policy makers would be taken badly by investors……..’Keeping the previous language would be very disappointing and would be viewed as either complacent or reflecting policy paralysis,’ Englander, Citigroup’s head of currency strategy for major developed economies, said in a Feb. 25 report. He urged the G-20 to ‘man up and tell member countries that monetary policy should be accompanied by fiscal expansion.’
C’mon. This cat has the gall to demand that the governments of the world bury themselves even deeper in debt when that’s exactly what they have been doing most of this century?
‘Man-up’ my eye. What’s needed here is for so-called economists like Dr. Englander to crawl out of the rabbit hole they’ve been in for years on end. Indeed, in his case the rabbit hole apparently started at 33 Liberty Street where he was the New York Fed research director; and then tunneled through the bowels of Barclays, Citibank/Salomon Smith Barney and the OECD.
As they say, Englander has never had a real main street job. Nor has he met a ‘market’ that wasn’t medicated and manipulated by agencies of the state; or that the gamblers and punters he writes for didn’t think should be goosed even more.
This post was published at David Stockmans Contra Corner by David Stockman ‘ February 26, 2016.
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