TYR 12 December 2012 reads

Inside the Risky Bets of Central Banks @ The Wall Street Journal In this article the unofficial spokesman of the Federal Reserve explains how unelected central bankers, in secret meetings at the offices of the Bank of International Settlements (BIS) in Basel, Switzerland, control and play with the world’s economy, wield more power than any elected official, including the president of the USA, and under the cover of “keynesian economics” are taking the world closer and closer to an inflationary crisis: “Since 2007, central banks have flooded the world financial system with more than $11 trillion.”…and they are not finished.

Mark Carney hints at need for radical action to boost ailing economies @ The Telegraph The present governor of the Bank of Canada and next governor, from mid 2013, of the Bank of England has stated that “If yet further stimulus were required, the policy framework itself would likely have to be changed. For example, adopting a nominal GDP level target could in many respects be more powerful than employing thresholds under flexible inflation targeting.” The seemingly technical and neutral expression “NGDP targeting” hides a radical change in monetary policy. In plain language it means that monetary policy will aim at a precise number of NOMINAL GDPgrowth in the economy. Nominal GDP has a real component and an inflation component, that is NGDP = real GDP + inflation. In practice this change in monetary policy would aim at increasing inflation until the NGDP target was reached, regardless whether that number was achieved simply by increasing the inflation rate, devaluing the currency, impoverishing savers, citizen.

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