No, Central Banks Won’t Save Us This Time

August 21, 2023

by Charles Hugh Smith Of Two Minds

So hey, central bank cheerleaders, lackeys, toadies, apologists, apparatchiks and sycophants: no, the central banks aren’t going to “save” your precious asset bubbles from popping.

There’s a fanciful confidence afoot that central banks will once again coordinate a global “save” as markets careen out of control. They won’t. There are many reasons for this:

1. There is no incentive to coordinate efforts, as each nation/region has vastly differing interests. Each faces a different mix of real-world inflation / deflation of assets, stagnation, currency issues and competing domestic / global interests.

On top of those diverging interests, a low-level “economic warfare” is being waged between dysfunctional co-dependents China and the US, which are like a co-dependent couple who want a divorce but need each other to pay the bills, all the while pridefully (and falsely) claiming they can easily do without the other.