Sunday, 3 October 2010

Alcohol abuse

The flow of capital will always be subject to fluctuations in human moods which swing from deep fear to wanton bouts of greed. And the ebb and flow of each cannot be controlled without a modern equivalent of Huxley's Soma. Unfortunately this means it is not possible to rid ourselves of our economic cycles. The more you try, the more it is likely the next downturn will be worse.

QE, in its least destructive form, is a little like a drunk at a party finding that he is off his high and the party is beginning to thin out. The only solution is to hit the hard liquor and try to maintain the high. Sod the consequences of a mighty hangover the following morning. Harder drugs lead to immediate overdose. Either one could occur as a result of Mr Posen's and Mr Dudley's prescriptions.

P.S. is Posen to Dudley what Blair was to Bush?

No comments:

Post a Comment