Today a 40-year market veteran sent King World News an incredibly important piece that warns destructive forces are now being unleashed across the globe. This piece exclusively for KWN also cautions readers around the globe that the world faces a very dark future indeed.
By Robert Fitzwilson of The Portola Group
January 26 (King World News) – Norm Crosby is an American comedian who is best known for his use of malapropisms in the routine. A malapropism is defined as “the usually unintentionally humorous misuse or distortion of a word or phrase”. When listening to the pronouncements of the central planners these days, it is reminiscent of listening one of Crosby’s routines, except that the central planners are not making us laugh. The malapropisms of the central planners are not jokes, just sadly conflicting and confusing statements attempting to cover up their predicament, their intentions and the destructive forces they are unleashing across the globe….
It is apparent that 2% seems to have a fascination for the central planners as a target for inflation. Wanting to understand the logic behind their objective, we searched the Web for anything that would enlighten us. After all, the central planners are the best of the best, the brightest of the brightest working from a sophisticated, historically based plan. It would be unthinkable that they would be running the world from the seat of their pants.
What turned up was a “backgrounder” put out by the Bank of Canada, “Why Has Canada’s Inflation Target Been Set At 2%?”, published in December of 2011. We eagerly anticipated our enlightenment. Sadly, it was another piece of central planner comedy.
The Bank of Canada said that their intention was to keep inflation “low, stable and predictable”. They then ask the question “Why does the Bank aim for a moderate amount of inflation rather than no inflation? “. Their answer was “Nominal interest rates cannot fall below zero (the zero lower bound on interest rates)”. They go on to explain “When interest rates are at or close to zero, the ability of the central bank to use its traditional tool, the policy interest rate, to stimulate the economy is limited since actual (nominal) interest rates charged by banks cannot be negative.”