Saturday, September 13, 2014

Central Banks Jump The Shark


There was an episode of Happy Days where Fonzie jumped over a shark on water skis.  Since then the idiom Jumping the Shark has come to mean when the creators of a show have run out of good ideas.

Japan's central bank has made negative interest rates and also Europe’s central bank has made negative interest rates.   This means they have run out of good ideas.   These central banks have jumped the shark.   From here on the quality will go downhill.   It will not be fun any more.
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10 comments:

  1. Tom BrownSeptember 13, 2014 at 5:06 PM

    "It will not be fun any more."

    Lol... I'm sorry Vincent, but sometimes I think you're banking on that. Doing your share, however small, to try to ensure it's not going to be fun anymore. :D

    Yes, yes, I know that's not your point, etc. I'm just telling me the impression you give me.

    ReplyDelete
  2. Vincent CateSeptember 14, 2014 at 2:58 AM

    Tom, this blog has 5 followers. I am not posting to make markets go up or down. I write to organize my thinking and have some chance of someone pointing out an error in my thinking. This post did amuse me some. :-)

    ReplyDelete
  3. Vincent CateSeptember 14, 2014 at 3:21 AM

    Tom, you must have noticed that most of the comments on this blog are either by you or by me. :-)

    I added the formulas from my simulation to my simulation post. Just in case someone else looks at it. :-)

    ReplyDelete
  4. Vincent CateSeptember 14, 2014 at 3:28 AM

    As far as banking on that, I will make money if the Yen goes down. Japan seems the best test of my theory. Smaller countries can be bailed out.

    ReplyDelete
  5. Tom BrownSeptember 14, 2014 at 1:17 PM

    Jason has another one for you:

    http://informationtransfereconomics.blogspot.com/2014/09/update-on-japanese-inflation.html?showComment=1410720062470#c3841513050010089761

    ReplyDelete
  6. Vincent CateSeptember 22, 2014 at 11:26 AM

    Thanks Tom!

    So my CMMT theory got posted to an MMT site:
    http://mikenormaneconomics.blogspot.com/2014/09/vincent-cate-cmmt-cates-modern-monetary.html

    ReplyDelete
    Replies
    1. Vincent CateSeptember 24, 2014 at 11:55 AM

      The above got a lot of comments and good discussion. It even resulted in another blog post, though not as interesting to me:

      http://www.bondeconomics.com/2014/09/a-mmt-view-on-theory-of-hyperinflations.html

      Delete
    2. Tom BrownSeptember 25, 2014 at 11:18 AM

      Nice. You're fast becoming the web's favorite hyper-inflationist. :D

      Delete
    3. Vincent CateSeptember 25, 2014 at 12:04 PM

      Mixing it up on an MMT site, me against the lot of them. I think I did just fine. :-)

      Delete

Looking for polite debate on ideas. Never attack a person. Be nice.

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