“Markets say the ECB is done, their box is empty,” Vasiliauskas, who heads Lithuania’s central bank. “But we are magic people. Each time we take something and give to the markets — a rabbit out of the hat.”
Following an example set earlier by the governor of NichiGin:
Central banks have ventured into uncharted territory in recent years. Now including Neverland.
“I trust that many of you are familiar with the story of Peter Pan, in which it says, ‘the moment you doubt whether you can fly, you cease forever to be able to do it,’” Bank of Japan Governor Haruhiko Kuroda said at a conference hosted by the BOJ on Thursday.
“Yes, what we need is a positive attitude and conviction,” Kuroda told an audience of academics including Barry Eichengreen and central bankers from the U.S., Singapore and France.
Yes, central bankers, having blown up their economies by deliberately underpricing credit and thereby saturating their economies with debt so gigantic that it can never be repaid in full, now think that playing Jedi mind-tricks on a gullible population will work to solve all of society’s financial problems.
I’m not sure what to call this. Is it what is known technically as magical thinking – the belief that one can bring about a circumstance or event by thinking about it or wishing for it? If so, that is quite concerning, as it is normally seen in children aged 2-7 years, and also in schizophrenics. Otherwise it is seen in people who have experienced trauma, and/or who are, under stress, regressing to an earlier stage of psychological development.
It may be the case. I suspect central bankers are coming to the realisation that they’ve blundered most grievously, and there’s nothing they can do now to forestall the catastrophe to which they are pushing their societies with each of their actions. Enough stress there to cause episodes of regression to magical thinking.
Or is it more accurately described by the even more exquisite concept of quasi-magical thinking – acting as if one erroneously believes (without actually believing) that one’s actions affect the behaviour of others. So that, in this case, the bankers don’t believe that they are magic, or can produce fantastical outcomes – but that if they can have others believe so, then the intended effects will be produced.
Any help much appreciated.
In any case, it further confirms my fear that the world economy is in trouble, and those charged with directing it are not only out of their depth, but are coming to realise this fact, and are now making statements of desperation to prevent hoi polloi from realising that they are, indeed, nothing more than little men manipulating faulty machinery from behind a curtain.