Government Confusion = Incompetence (Politics v Bankers)


QUESTION: Dear Martin Armstrong

About The post, “Is There a Way Out of This Financial Mess? “
In the second last paragraph you write, “Taxes have risen as deficits expand because government thinks inflation is the danger.” Link:
Shouldn’t that be Deflation?
Thank you for doing what you do.
U

 

ANSWER: No. I agree it makes no sense but logic is not a talent of government. You have central banks trying to stimulate by increasing the supply of money, but then you have politicians worried about their deficits and being criticized so the they raise taxes. The two placed in the same room could never have a true dialog of any meaning.

The bankers are worried about deflation and the politicians, like Merkel, are worried about inflation. It is confusing, but hey, anyone who actually thinks electing people without trading experience is the way to run an economy should ask the parking attendant who parks a car if they are free to fix a cavity in your tooth.

One comment on “Government Confusion = Incompetence (Politics v Bankers)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s