Tyler Durden’s picture First Hong Kong, Now Aussie Central Bank Gets Ugly Case Of Truthiness
The Internet Post
It seems the AsiaPac central bankers did not get the ‘shut up and print’ memo as today during another speech, an Australian central banker followed Hong Kong’s lead and pronounced quantitative easing as potentially harmful and the volatility-dampening effects of excess monetary policy as “ultimately inimical to financial stability and hence macroeconomic stability.” In the speech below Glenn Stevens (RBA Governor) provides some much-needed doses of sanity to the grossly addicted world desirous of moar money printing.
“Central banks can provide liquidity to shore up financial stability and they can buy time for borrowers to adjust, but they cannot, in the end, put government finances on a sustainable course… They can’t shield people from the implications of having mis-assessed their own lifetime budget constraints and therefore having consumed too much.“
Why are these AsiaPac bankers breaking ranks with the status quo? Perhaps they see a looming threat and prefer to front-run their governments’ demands to “get to work”.
Filed under: economics Tagged: Australia, Bank, Central bank, Finance, Glenn Stevens, Hong Kong, Monetary policy, People’s Choice Credit Union, Quantitative easing 
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2012-12-13 15:03:51
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