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Cliff Küle's Notes Your daily CONSOLIDATOR of the most insightful WEB presentations on the subject of MONEY .. The Ultimate Confidence Game .. How our Monetary System works for the benefit of some .. at the expense of others.

Jul 7th 2013, 01:20, by noreply@blogger.com (Cliff Küle) Forward Guidance? – Nonsense!  Central Bankers Have No Choice Austrian School Economist Detlev Schlichter ponders the ramifications of the recent "forward guidance" statements by the Bank of England (BoE) & the European Central Bank (ECB) .. both the BoE & the ECB seemed to unveil some powerful new policy tool - "forward guidance" .. "Both stated that they were committed to leaving policy rates at ultra-low levels for very long indeed .. This was, of course, an attempt by both central banks to distance themselves from the Fed's loose talk of potentially turning off the monetary spigot. There is nothing surprising about this. Both central banks are standing with their back to the wall .. The ECB and the Bank of England publicly admitted that they were boxed in and would remain so for the foreseeable future. They have no policy options, there is no real recovery, so they will keep rates super low, maybe even cut them again. Only in our bizarre modern world of relentless Orwellian Newspeak can this position of utter defeat be dressed up as the new policy program of 'forward guidance'. To admit that you can't move, to admit that your policy has not worked and is unlikely to work anytime soon – otherwise you would have to be ready for withdrawal of the stimulus, right? – is now presented as a skillful steering of market expectations and massaging of market psychology." LINK HERE to the essay

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