Thursday, March 31, 2016

Central Banks Never Had Control #CentralBanks

'Running out of time' implies central bankers control markets and the business cycle. While history shows us they can't, the majority still believes they do. If loose monetary policy was the solution to reflation, Japan would have extricated itself from it economic morass (long depression) decades ago. Zero to negative interest rates policies that subsidize governments addicted to deficit spending at the expense of savers and private investment.

Headline: Central banks 'running out of time' to reflate economies: Bill Gross

NEW YORK (Reuters) - Bond manager Bill Gross, who runs the Janus Global Unconstrained Bond Fund, said central banks are "running out of time" to reflate global economies as their aggressive policies including quantitative easing and low, even negative, interest rates are losing their effectiveness.

In his April Investment Outlook, Gross wrote that markets and the capitalistic business models based upon them and priced for them "will begin to go south" if global economies do not produce growth.



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