The operation and functioning of the capitalist economic system, is as the general populace is given to understand, an ultimately rational, purposeful and ordered undertaking. The financial commentator-non pareil ,Ambrose Evans-Pritchard writing in the Daily Telegraph uses words though more appropriate to a discussion on Medieval thaumaturgy. Just take a look for yourself.
The European Central Bank has pulled out all the stops to avert a dangerous deflation-trap, launching a blast of triple stimulus despite angry criticism from Germany that it is entirely unnecessary and will do more harm than good.
The markets reacted wildly to the package of measures, surging at first and then plummeting on creeping fears that the bank has exhausted its policy options and may be defenceless against a fresh shock.
Mario Draghi, the ECB’s president, no longer seems able to conjure confidence with his former panache. His magic has, for now, deserted him.
The ECB cut the deposit rate by 10 basis points to a historic low of -0.4pc and stepped up the pace of quantitative easing (QE) from €60bn to €80bn a month. It buttressed the effect with unlimited four-year loans to banks at near-zero cost, hoping this will limit the damaging side-effects of negative rates for banks. ”
“Dangerous”, “Harm”, “Wildly”,”Surging”,”Creeping”, “Conjure”, “Magic”. Sounds suspiciously like no-one is in charge let alone in overall control. An everyday weather forecast has less uncertainty and uses far fewer adjectives than what Economists require to try and get a handle on and describe Capitalism in Crisis. And once the High Priests and Acolytes of Mammon have recited their catechism and expounded on their monetary/financial theology ,the 99% can get ready for another thorough shafting.