Central bank Quote by James Rickards

“Policy makers respond to economic distress by pursuing polices designed to improve the data. After a while, the data themselves may come to reflect not fundamental economic reality but a cosmetically induced policy result. If these data then guide the next dose of policy, the central banker has…” quote by James Rickards — Download Open image

““Policy makers respond to economic distress by pursuing polices designed to improve the data. After a while, the data themselves may come to reflect not fundamental economic reality but a cosmetically induced policy result. If these data then guide the next dose of policy, the central banker has entered a wilderness of mirrors in which false signals induce policy, which induces more false signals and more policy manipulation and so on, in a feedback loop that diverges further from reality until it crashes against a steel wall of data that cannot easily be manipulated, such as real income and output.””

James Rickards

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Central bank Economics

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“If an economy has a stagnant labor force operating at a constant level of productivity, it will have constant output but no growth. The main drivers of labor force expansion are demographics and education, while the main drivers of productivity are capital and technology. Without those factor inputs, an economy cannot expand. But when those factor inputs are available in…

James Rickards

“The 1962 Cuban Missile Crisis came well before the current age of AI, yet computers were in use and technology played a critical role in the form of U-2 spy plane photos that showed Soviet missile installations in Cuba. Protocols and standard operating procedures were in place, ... Still, it was human judgment as displayed in Khrushchev's letter to Kennedy…

James Rickards

“It is one thing when prices drift downward over time due to innovation, scalability or other efficiencies. This might be considered “good” deflation and is familiar to any contemporary consumer who has seen prices of computers or wide-screen TVs fall year after year. It is another matter when prices are forced down by unnecessary monetary contraction, credit constraints, deleveraging, business…

James Rickards

“A country running deficits under the gold exchange standard could find itself like a tenant whose landlord does not collect rent payments for a…

James Rickards

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“This ... he largest financial bailout in history ... was not just a bailout of SVB [Silicon Valley Bank]. It was a bailout of…

James Rickards

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Derivatives serve practically no purpose except to enrich bankers through opaque pricing and to deceive investors through off-the-balance-sheet accounting.

James Rickards

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“Printing dollars at home means higher inflation in China, higher food prices in Egypt and stock bubbles in Brazil. Printing money means that U.S. debt is devalued so foreign creditors get paid back in cheaper dollars. The devaluation means higher unemployment in developing economies as their exports become more expensive for Americans. The resulting inflation also means higher prices for…

James Rickards

What does reflect reality very well is complexity theory, which comes from physics. I'm the one pioneering the idea of bringing it to capital markets. When you look at capital markets through the lens of complexity theory, you ask "what's the scale of the system?" Scale is a fancy word for size. What measures are you using? If you look…

James Rickards

“On the whole, it is difficult to think of another government agency that has failed more consistently on more of its key missions than…

James Rickards

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“Elite support for so-called free trade is due to the fact that elites share a global perspective at odds with the best interests of the United States. Policies that produce world growth at U.S. expense are endorsed. Policies that benefit the United States while slowing world growth are rejected. Today globalization’s triumph over nationalism is energizing a nationalist revival as…

James Rickards

“The irony is that when you set out to remove bias you use your own possibly unconscious biases in deciding what's harmful and what…

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“The solutions to this systemic risk overhang are surprisingly straightforward. The immediate tasks would be to break up large banks and ban most derivatives.…

James Rickards

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'Inequality' has become the political theme/slogan of our time in both Europe and the U.S., yet political leaders do not even bother to consider…

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There could be some compromise, but I think we have to stick to the provisions of the treaty, and the provisions of the treaty…

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There is no doubt in my mind that as central banks begin to abandon the dollar, there will be an enormous amount of monetary demand for silver and the silver ratio will plummet. If you look at all of the monetary crises over the last 100 years, any time that there has been even a whiff of a collapse of…

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Monetary policy transmission encompasses the whole continuum of interest rates; of course, the central bank only determines the overnight policy rate.

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The fear is that if the dollar falls below 50% of the currency basket held by commercial and central banks and insurance companies, there…

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Repeal the entire Banking Act of 1933, and Austrian School economists will cheer, especially if the current system were replaced by a 100%-reserve competitive…

Llewellyn Rockwell

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In the old days we were the challenger brand competing against the big banks, but today I go round the world and I sit…

Lloyd Dorfman

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“The Fed is still on the same track.” Whatever you call it, the benign economic environment has supported a bull market since 2009, and though there were a few rocky days last week, the main market ingredients seemed to remain in place. For example, on Wednesday a government report on gross domestic product in the second quarter showed that the…

Anonymous

We've delegated politics to bankers. The European Central Bank is inside Deutsche Bank, and Deutsche Bank is inside the Bundesbank.

Beppe Grillo

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Believe me. When you're talking about trust in government, you're preaching to the choir, whether it's on the financial side, the central banking side:…

Rick Santelli

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Welcome to the age of paper money, where governments and central banks can manufacture as much money as they want without limit. Gold was…

Llewellyn Rockwell

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By creating the European Central Bank, the member states exposed their own government bonds to the risk of default. Developed countries that issue bonds…

George Soros

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