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.

10 comments:

  1. "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.

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  2. 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. :-)

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  3. 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. :-)

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  4. 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.

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  5. Jason has another one for you:

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

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  6. 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

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    Replies
    1. 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

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

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

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