Central Bankers Admit Failure, are “Preparing for an Economic Nuclear Winter”

For some time I’ve been emphasizing that the Federal Reserve has run out of ammo. Years of interest rates near zero have failed to create a robust economy. Now Mrs. Yellen and her colleagues descend from the mountain to tell us what we already know — that in effect, their efforts are not working.

So having punted the ball “to the rest of government,” what does this group of supposed monetary and economy experts recommend?  According to Reuters,

Mired in a world of low growth, low inflation and low interest rates, officials from the Federal Reserve, Bank of Japan and the European Central Bank said their efforts to bolster the economy through monetary policy may falter unless elected leaders stepped forward with bold measures. These would range from immigration reform in Japan to structural changes to boost productivity and growth in the U.S. and Europe.

And what is evidence to support the idea that people are not being fooled by all the happy talk from Yellen and her ilk, we learn again from Reuters that,

Fiscal policy was not on the formal agenda for the conference, but it was a steady part of the dialogue as policymakers thought through policies for a post-crisis world. One of the central worries is that households and businesses have become so cautious and set in their outlooks – expecting little growth and little inflation – that they do not respond in expected ways to the efforts central banks have made.

Fiscal policy means things like taxes and spending. Did Team Yellen just tell the world that unless goverments increase spending and run even larger deficits, that all the central bankers’ efforts at monetary policy will fail?  It sure sounds like it.

Maybe what these alleged monetary experts are really doing is trying to get themselves off the hook for the economic nightmare they know is coming.  That’s certainly what RT is suggesting:

Weak corporate earnings, a banking crisis, and the Brexit vote are forcing banks to prepare for the worst case scenario in the second half of the year. According to CNBC quoting a major lender, banks are “preparing for an economic nuclear winter situation.”

So to demonstrate the lunacy of all of this, central bankers are now recommending that governments mired in debts that can never be repaid — add more debt. And we’re supposed to trust their judgement?

Source:  Global Central Bankers, Stuck at Zero, Unite in Plea for Help from Governments

Source:  Banks Getting Ready for “Economic Nuclear Winter”