ECONOMIC DUELING

 

Back in the day dueling was often the solution of choice to solve a problem or difference.

Weapons varied from pistols to swords to whatever. Today dueling still exists, but the weapons have changed. Today's weapons of choice are QE and beggar thy neighbor.

A host of central banks recently picked up the trend, Canada, Denmark among others, with the 800 pound gorilla, Japan, sending out a shock wave of jitters with their own form of "Whatever it takes."

To cover its tracks Japan's central bank counterpart to Super Mario, a relaxed Haruhiko Kuroda, taking a theme from a popular song not too long ago, urged the world, don't worry, be happy.

The money-printing crowd will no doubt deny this for obvious reasons. They want what they want, a good old fashioned exterior house painting, in many circles known as a feel good factor notwithstanding that the interior is as usually rotting away. We call it monetary curb appeal.

We have written before and we will mostly do so again that the worst nightmare of politicians and bureaucrats is the Internet. With most of MSM in their hip pockets, it's a medium that's prevented these denizens of the world capitols and Davos from wreaking more unquestioned havoc on the masses.

The only creditability that Super Mario and his fellow dolts at the ECB will bring in the end is the current growing mistrust of these folks is warranted by 10 to the 10th power. 

When it fails to improve things these power-seekers will do just that, call for more independence, a receipt for further enslaving the masses and a clear shot at rolling back one of the major benefits of the Internet.

The journalistic meme waiting in the wings is what Financial Times columnist Martin Wolf floated last week when he wrote that if the ECB QE plan fails it won't be because it's independent but because "it's not independent enough."

EU inflation in December was positive, though it might not have been anywhere near what these bureaucrats wanted to cover up their perfidia. But the problem isn't one of printing more money. Europe is a cesspool of over-regulation, a chastised banking system and a cauldron spineless politicians.

In the end, the Super Duper Mario's legerdemain will be discovered just for what it is, economic sleight of  hand.

Meanwhile, expect the dueling to continue.And plan your investments accordingly.