In response to an FT article by Martin Wolf entitled on 21st January 2016, entitled 'Carney's monetary inactivity is right response'
'Is the turbulence, to quote Macbeth, “a tale told by an idiot . . . signifying nothing” or an early warning of recession, or even another financial meltdown? And even if it is the first, as is likely, how far do we need to fear the results of fear itself?'
A tale told by an idiot...signifying nothing...?
No Mr Wolf, the idiot is not to be found in the turbulence. The turbulence is the inevitable result of even a partial removal of 10 years of interest rate suppression, the dawning realisation that there is a liquidation coming in junk debt, the sound of currency pegs creaking under the strain of capital flight, and fact that 'the Fed has got our back' is no longer the lullaby that Wall Street sings itself to sleep with at night.
Not to mention China, Oil, Portuguese Banks, the Middle East, the refugee crisis...or any of the other forces that clearly only an idiot would put any significance to.
No Mr Wolf, the idiot is not to be found in the turbulence. The idiot is to be found amongst the politicians, central bankers, pop-star economists and ‘useful fools’ who prefer the experience of denial to the signal that the turbulence is offering...or as Marcellus said to Horatio: 'Something is rotten in the state of Denmark'