Karolina Ekholm, Deputy Governor of the Swedish central bank had some comments to make today at a little meeting. This hellish female was quoted saying, among other stupidities, that inflation is going to be negative during 2009. She has been an accomplish in creating inflation, so of course she doesn’t want you to know about this little scheme, or she does not know a single thing what she is talking about. Either way this is an outlandish lie, or she is so bent behind a wagon that she actually believe that a couple of hundreds of billions of newly printed notes thrown into the system have no effect whatsoever. Take your pick really, a lying bitch or an incompetent maniac, hard to tell what’s worse.
She said: “Nevertheless, the situation looks brighter today than it did a couple of months ago”
No, it doesn’t. It looks a lot worse. Just because there are a temporarily halt in the down-going spiral, seen to equities and certain areas of the economy, is not the same thing as things are looking brighter. She would know this if she actually understood economics.
Then she continues with the interest rate crap those central bank people are hell-bent to spread around. She voted for keeping the interest rate down around zero, which makes her automatically malevolent. Destroying the economy is her goal, and she and the other monkeys are doing a good job at it.
Another hilarious quote:
“The development of the krona has been stronger than we expected. Just as it is difficult to explain the earlier weakening of the krona in terms of developments in the Swedish economy, it is difficult to explain the recent appreciation in the krona”
No, it’s not. It’s very easy. Firstly, any currency is measured against other currencies. This means that the “value” can be going up; when in reality it’s going down because other currencies are worse off. Secondly, and this she should know, the central bank and government securities are the things that control the value of the currency. She is one of those that decide whether or not the currency should gain or lose in value. If she doesn’t get that, she is the wrong person at this job. There is a lagging effect how the inflation or deflation of the currency becomes to be obvious, but that too she should know.
Then she goes on and on about smoke and mirrors theories mixed with lots of irrelevant statements about her being thrown straight into the fire getting appointed just a tad over a half a year ago. Oh, I have a fire for you; or rather the Swedish people will have a big bon-fire to throw you in once they figure out how evil you really are.
The wickedness really shines when she said:
“Let me conclude by saying that it appears that the fiscal policy and monetary policy stimulation measures that are being implemented throughout the world are beginning to have the desired effects.”
Riiiight…
“The desired effect”, please remember that statement when you purchasing power is diminished into nothing and the defaulting levels drives families all across the land to live on garbage.
I cannot believe we have a central bank in the first place, and even less so how you idiots out there let such horrible people do these things to you.
Interest rates should be a lot higher today, there should be no extra credit whatsoever created out of thin air, and there should be no central bank. As long as this womanly demon and her chronically immoral buddies get to dictate our lives, we are screwed.
I´m sorry to tell you but Karolina Ekholm is not so stupid at all. She knows that quantitative easing does not have any effect if the banks puts the money in deposits in central banks. 70% of the extraordinary credits from ECB has for example been put into deposits at...ECB... You can also look at Japan as an example since 1989 they have been trying to fight, deflation interest rates have been hold close to zero today it is 0,1% and yes they to have been "printing money" but still they have not solved the problem with deflation. Things are not so simple as you pretend they are...
ReplyDeleteI did not say she was stupid; she might also be very evil. It’s one or the other though. Then I think you missed the point completely, I never argued about what the banks does with the money, the idiotic thing is the money itself, not what they do with it.
ReplyDeleteJapan has been “trying” for a very long time yes, sadly for the Japanese people losing their savings, sadly for the Japanese companies losing their competitive edge. And Japan does not have deflation; they have had and still have inflation. Not that high until recently, since the savings and high levels of exports have kept it down.
And yes, it is very simple. Eliminate the central bank, stop with fiat money, and all the problems go away. That’s how simple it is. The second choice is to do the complete opposite what they have been doing. Interest rates needs to be a lot higher. When then dropped it to zero, they should have done the opposite, increased it. They should not have put all that money into the system, inflating housing and equities and “saving” banks that should go out of business. What that evil bitch and the rest of the idiots are doing is destroying the economy and moving wealth from normal people to banks and the already rich.
Wouldn’t my suggestion make the economy worse? Yes, it would, temporarily, which those idiots doesn’t have the balls to do, or, worse, they do not want to do the right thing because their agenda is the opposite. However, a year or so later it would have been over and Sweden would have been the best economy in the world.
Now, however, we are going down with the rest, probably even worse since our export dependent is so high.