With the Fed contemplating whether to hike again next month and start “normalizing ” its balance sheet before the end of 2017, the two other major central banks are facing far bigger problems.
ECB Governing Council member Vitas Vasiliauskas, who told Bloomberg in an interview that the ECB can still conjure up policy surprises – read inflation – if needed to combat economic shocks and push prices higher.
What is most disturbing is that he was dead serious when he said it, which is important, because it is finally obvious that central bankers are neither gods, nor magicians, nor even doing “god’s work on earth”, but plain and simple psychopaths. At least the magician he was right about one thing: “we give to the markets.“
“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.“