BGR,
>>I think that you are making a big deal of the power the central banks have.<<
In terms of currencies I do not think they have any impact over the very long haul, but I do believe they have some impact over the short term. Since we were discussing currencies I noted their influence among the list. I didn't make a big deal about it. You misunderstood me as you often seem to do.
>>This is how I see it. Any time a currency move happens that person X (representative of many on this thread, including you, IMHO) seem to like, it is the market prevailing over the central banks. Any time a move happens that person X dislikes, the evil central banks are up to their tricks and the market is no longer free.<<
I see most of what central banks do as "not" being free market activities even if they help me. I believe central banks are participants in the free market, but are operating with entirely different goals than businesses, investors, speculators, and others that I consider to be the important participants of the free market. I believe you are correct that markets often overwhelm the efforts of central banks. You are also correct that I applaud it. That's because I believe that the central banks are often running counter to free market forces in the name of short term stability. I think that eventually leads to bigger blowups.
Do I think they are evil?
NO. But I do believe that some parts of society, including government, use central banks to their advantage. That often works counter to the interests of the average Joe like me. Unlike you, when my butt hurts, I know who did it to me. I do not like getting robbed via inflation and bailouts. (g)
Wayne |
