Tuesday, January 20, 2015

Steen Jakobsen on
The Endgame for Central Bankers
Saxo Bank Chief Economist & CIO Steen Jakobsen on why we trust central banks - "central banks are politicians' puppets" .. sees the Swiss National Bank's removal of the Swiss currency's peg to the euro as having far-reaching consequences .. sees the return of volatility to the financial markets as being a sign that money is flowing into the real economy - this will benefit tangible asses & good businesses .. "Many central banks will envy the SNB for its move last week, as it at least tries to regain some control of its future, but the conclusion remains: central banks have as a group lost credibility and when the ECB starts QE this week the beginning of the end for central banks is completed. They are running out of time – that’s the real real bottom line: the SNB ran out of time, the ECB will runout of time this week, and the Fed, Bank of Japan and the Bank of England ran out of time in 2014. What comes now is a new reality – the SNB move was a true paradigm shift – we can no longer look at central banks, the markets and extend-and-pretend in the same light as we did last Wednesday (the day before the SNB pounced)."
LINK HERE to the essay

No comments: