We say it a lot around these parts; complacency kills. Those who rest on their laurels, look to their neighbor for confirmation and become content with conformity are doomed for failure. This heuristic applies to the individual and their own personal responsibilities, but it also applies to systems as well. Systems that become captured by a monoculture of thought that leads to the conformity of action are destined for some comeuppance.
"Housing prices will go up forever."
"There's no way Trump beats Hillary."
"Netflix and Amazon will never replace Blockbuster and Barnes & Noble."
And now, "We can print our way out of this mess."
As you can see from the tweet above, we find ourselves living in a time when the world's largest central banks are engaging in a coordinated, dovish race to see who can devalue their currency the most. All in an effort get an edge in the game of international exports. Each bank targeting metrics made popular by the monoculture of thought that persists throughout mainstream economics today. Governments can print their way out of anything. Debt doesn't matter. There are no consequences.
What will this form of complacency and conformity bring with it? I'm not exactly sure. However, I can say with a bit of certainty that it probably will not end well. Especially when one takes into consideration the effects these policies have on those not in the protected class. The twenty or so central banks above with "easing" next to their names are actively eating at the purchasing power of the people who use their currencies.
While money printing and asset-buying may be good for the balance sheets of governments and the banking systems tasked with stoking economies. These are Pyrrhic victories. The bolstering of the balance sheet comes at the expense of the little man. The man working paycheck to paycheck trying to get by. Only given the ability to long for a day in which he can stash some money away for a rainy day because wage growth is nowhere near actual inflation over the medium to long-term. Forced to struggle as those who created the mess in the first place bail themselves out and give themselves bonuses for doing so.
People can only take so much. It's only a matter of time before they begin to question the monoculture of thought in mainstream economics and politics.
Wow, I can't believe it's Friday already.
Enjoy your weekend, freaks.