First of all, I must clearly say that you appear more knowleadgable on the matter than me. So pardon me for the stupidity I will maybe write, and I thank you for your sharing. By leave their fixed mortage I am speaking about the fact that by making the people switch to variable rates from fixed when the rates are the lowest is a trap ! A deathtrap. That everyone can see ( I can't find the video on youtube where you see B.B speaking about that... ) . If it's not only about buying an overpriced home, but ad all the stuff that come with an "high end lifestyle"... You know you need the benz in the Mcmansion. However this hasn't to do with "mis-aligned incentive"... What's this ? Is it the matrix ? I mean, without joking, where does this incentive comes ? From the fact that the money is cheap... so who says that the money is cheap ? The CBS... Then when you have the low rates, as you say, you just need to build this kind of incentives at every step of the value chain trough advertisment... Jobs done the bubble is created. Why? to make it burst late The problem that I see with a private Institution fixing the price of money is that the pressure to use it to help other private interrest can be strong ( consciously or not )... you know a big power corrputs big, a infinite power corrupts infinitely... Or at least is the ideal target... Optimitze the long-term performance of the economy... what a true Bs. Who the hell they are to decide what to optimize and what to change, or even to leave... You know informed Individual decision making is always better. Because it can respect all the different interest, to reach an agreement, not the best for anyone, but the least worst for all... Furthermore I don't think that the CBS is doing a bad job per se, they are just following a corrupt model. I am just saying that there is a way to optimize "their mission" to make it p2p compatible. So their mission if I read you correctly is to optimize the society... So we can call it Social Engineering... or The Matrix, right ? You know the level of decentralization just makes it more or less close to the central planner of the CCCP. More interrested than ever... May I ask you something... If the people doing the quant thing understand the law of physics... they understand the financial market at a totally different level as the banker do ? Right ? You named it... as every socially engineered system has bugs in itself. Why can't we move without understanding ? Ohhh and a final tought about CBS. Ultimately it's the people who take the loans, however it's the bank that fixed the price... And you know supply and demand will say that the cheaper the more... So it's easy to manipulate the people...
The ECB's political independence, at least relative to the Fed Reserve, is more of a European phenomena, not a banking phenomena. There's a reason the US does not have cheaper/more available health care, genetically modified foods, less public transportation... than Europe. That reason is private sector corporate control of the government. Europe is more responsive to its people and democracy.
The matter with some of us is that we actually know what we're talking about... I was assuming you were addressing your remarks to me.
Personnally I have some many posters on my ban list... that I can't see more that half of the posts Yeah, that's the thing. Discover, Discuss, Dialogue... Always more productive than crying like do TreadmillTrader. Maybe he knows more than we do. However it's not by saying, remove this, or do that, that we will be able to move forwards... But only by calmly understanging the issue. Doing it trough a sharing spirit... not a confronting one... Dear TreadmillTrader, We don't know what's wrong with us... Or maybe it's your way of asking. No one can know what he doesn't understand... Could you please explain how you see the CBS ? How their succes is measured ? By wich indicator ? And clearly what's the "responsibility of monitoring the money supply" ( does it mean fixing the price of money ) ? so you said that they loan the money to the Usa with interests... My first tough is how much do they make ? Where is the profit ? Who does have access ? Where does it goes ? How big is it ? Secondly my old point... who will decide what's the right ammount of profit that they should do ? thrid, where does this interest money come from ? As i see it the total debt = total "numeraire" wealth, right ? Where are the interrests ? Any tough on that Apex ?
rhaa the quality is poor... And you are too lazy to explain it here ? ( oh yes I don't have today the time, to spend my brain/cycle on this... ) Or didn't you understand it fully ? As Albert Einstein said, if you can't explain a system to a 6 years old you didn't understand it yourself...