Pearls of “Wisdom” Update

It was nearly a year ago that “Pearls of Wisdom” provided some “tongue in the cheek” observations in respect the comments made by luminaries such as the the IMF and the Central Banks, posing the question, “why listen to them?” as in the main they have never made a “pro-active” decision and/or forecast in their respective lives, only “re-active,” after the event.

One year on and “they” are still reacting and the “herd” is still listening, as evidenced by the following:

Classic Auntie Janet from the Fed’s FOMC minutes released this week:

China’s slowdown remains a big risk for global growth” and “global financial-market volatility is unsettling.”

18 February 16

Chart 1 tells that we would never have guessed Janet.
Governor Haruhiko Kuroda reiterated to parliament last Friday that the Bank of Japan would take the necessary steps to reach its 2% pa inflation goal:

18 February 16 2

Just as he has been saying for 3-years now.

The soon to be re-elected head of the IMF, Ms Lagarde, has projected “global energy subsidies at $5.3 trillion for 2015, or 6.5 percent of GDP—a staggering number that needs to come down in the years to come. To get it right, we need to price it right—and now is the time to eliminate subsidies because energy prices are low.”

So you have noticed Christine, well done, but it may have been of more use to have read, “Oil Price Collapse…Why the Surprise? of over a year ago.

18 March 2015 Blog 1

 

So we repeat last year’s message – who are we to listen to?

 Certainly not officialdom, whether it is political or an organ of it, such as Central Bankers or the IMF. They have a different agenda than most of us.

A good place to start is in the charts, as they don’t lie!

 

 

 

 

 

 

 

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