“Don’t get me wrong. Most central banks, and the many of us who still have deep respect and affection for them, would like nothing more than for them to deliver better economic outcomes or hand off efforts to bolster the global economy to others or both. The best that we can hope for, however, is that they will be able to navigate the minefield they are in without being accused of not doing enough, of causing economic harm and of contributing to undue financial volatility. Indeed, the most likely outcome is that they will be viewed as taking measures that are deemed ineffective or, even worse, counterproductive. And it’s a dilemma that is unlikely to be resolved soon.”
USAGOLD note: A downbeat assessment from El-Erian that carries echoes of the central bank summit in Jackson Hole a couple of weeks ago. Some take the policy makers’ shrug of the shoulders approach as good reason to buy gold as a means to long-term asset preservation.
Source: USA gold