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Wrong, wrong, wrong!

George Magnus at FT.com gets it wrong.  Again.

Monetary policymakers should draw up plans not to hike policy rates but to define explicitly the circumstances under which they would expand quantitative easing again. Monetary policy is judgment, not science. Better, if necessary, to print money and be damned, rather than tighten policy and be damned. Under the former, there is always redemption by withdrawing the stimulus if circumstances warrant. Under the latter, there is only chaos.

No.  It’s better to reduce asset prices allow markets to clear so investment can take place rather than keep markets frozen by artificially stimulating an economy that’s only going to fall over after the stimulus is removed.  That’s not “chaos”.  That’s markets working.  This paid for banker shill is a closet commie and doesn’t trust markets to work.  Why does he even call himself an economist?  Markets working is “chaos”? Is he serious?

Rip off the f*cking bandaid already.  Raise interest rates.  Double them.  Let some banks die.  Let house prices sink.  Let people go bankrupt.  It’s going to happen anyway.  Slow death is more painful than markets clearing.

Except for bankers.

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