You know your economic policy is crazy when…
Recently the Bank of Japan (BOJ) decided to implement negative interest rates in an attempt to increase inflation and thereby increase economic activity in Japan’s rather anemic economy. Such economic policy is crazy, and how do we know that it is crazy? Well for a start, when it blows Jose Canseco’s mind.
Here are Canseco’s tweets on the BOJ’s announcement:
So here we have a man, best known for home runs, steroids, having a baseball bounce off his head and fighting a 7 foot Korean giant in the Super Hulk MMA tournament, and even he can understand that the policies of the world’s central bankers, as exemplified by the BOJ’s foray into negative rates, are flawed. Why is it that the central bankers themselves, presumably well educated and intelligent individuals, are unable to recognize the folly of their own policies, when Jose Canseco can?
I guess this is just another one of those mysteries of life. However, if you are not convinced by Jose Canseco’s economic ‘wisdom’ then here are some more economically learned critical opinions on Japan’s rate cut by Peter Boockvar and Michael Pento.