START WITH PAULSON’S BOOK:
Perhaps the best over view of financial melt down and panic on the market today. Paulson the worlds INVESTMENT BANKER from JP Morgan panics. Cries. He does not know WHAT to DO. Bernanke illustrates in panic his stored up University theory of how to use FED POLICY to stop a full on depression. To stop contagion. However they did not figure on the new digital market space or the digital weapons enemies could fire into those markets. They lacked any models, prediction, or weapons to respond. They had zero strategy.
Their strategy is CONFIDENCE by flooding markets with money. A policy of utter panic when more thoughtful experts cautioned of the consequences.
Today a decade later the POLICY of PANIC has spread to central banks world wide. With tens of trillions of dollars at negative interest – the policy of panic to create growth and productivity and investment represents the largest most complete policy failure in 100 years. Who says?
The data. The experts. The markets.
Without free money the markets for equities bonds and most important ETF’s would shatter. And they must shatter as the SUPER BUBBLE from failed policies is on going. Why?
They DO NOT ‘KNOW’ what to DO.
We all can see that. NOW.
They do what they KNOW and they can’t do as they are unable to DO what they do not know. OUT OF BOX new policy is required. Globally. No nation can solve the crises alone. That is the problem. Competition between nations ( trade war ) versus cooperation to solve the problem entirely.
My prior blog told policy makers in panic WHAT TO CONSIDER working upon. WHAT TO DO. New intellectual economic options and opportunities no one is even considering.
Central banks are putting sand in the economic crank case of the engine. Eventually you ruin the core economics of the machine itself entirely. We are close to that event. In effect the FAILED wrong minded eight years of PANIC POLICY has and IS destroying the economy at core of the entire world. The SUPER DEBT BUBBLE will collapse and no one will be able to fix THAT.
George Bush said in 2008 – to Paulson – HOW COULD THIS HAPPEN. His top economic adviser said I do NOT know. IT is in Paulson’s book. Read it.
Pay me now. Pay me later. Panic Policy opts for pay me later.
Panic Policy makes the panic and the Super Crash much worse than 2008 and that is IF a digital weapon is not fired at our digital market space globally. But it will be fired. Again.
Read KEVIN FREEMAN’s the SECRET WEAPON. Be informed.
In the middle of all this the American election is like Alice and Wonderland when she said ..curiouser and curiouser. To see the middle school antics given the needs of the world – to preclude real solutions and to debate – your a liar — oh no your a bigger liar day to day – is plain silly and awful to both sides.
I would like to give them both advice for greatness in leadership but that is like spitting into the wind at the moment.
So we have a crises in leadership world wide.
We have a POLICY OF UTTER PANIC. Avoid contagion and a system total implosion at all cost.
A policy of one symptom at all cost avoiding the core disease. That is rampant in the economic machine.
Panic Policy is financial EBOLA. There is no cure.
It makes EBOLA worse.
Free money by the trillions upon trillions of dollars is PANIC POLICY to stimulate growth and productivity. In America we are now in negative productivity, dropping like a brick. We are ZERO growth which against borrowing is not economically sustainable. WE need 5% growth to a our debt. The longer we languish in Greenspan STAGFLATION the more we are in Japan two decades of pain. Looking ahead. The world is far worse
PANIC policy is an utter failure.
To begin any fix you have to admit you failed. Take responsibility and FIX it by doing something different something new. Doing the PANIC POLICY that delivers no result and expecting different outcomes with more PANIC POLICY is the definition of insanity.
Think about THAT.
Berny Dohrmann – For merging Central Banks into Government Treasury