That the central banks were totally surprised by today’s inflation indicates a fundamental failure. Surely, some institutional soul searching is called for....

"The obvious question is, first of all, how has the Fed [և the domestic reserve bank] distorted its primary objective of maintaining price stability. The fact that the Fed [և the Reserve] has surprised by today's inflation is a sign of fundamental failure. Of course. An institutional reassessment of values ​​is in order...
"America [և the world] is full of debt. Everyone assumes that taxpayers will lose out in the next economic downturn. Student loans, state pensions, and mortgages are piling up waiting their turn to save Uncle Sam. But each crisis demands more and more blood transfusions in the city, and the fire will spread.
“In 2008, regulators and lawmakers were at least smart enough to take moral risks, fearing that investors would profit in good times and taxpayers would absorb losses in bad times.
The same Fed that missed mortgage risk in 2008 – the 2020 pandemic – now wants a “climate risk” stress test that will surely see the next war, the next pandemic, the default or failure of sovereign debt. . Next war, other major sabotages. Federal Reserve regulators don't even ask the final questions. And although they speak rhetorically of "linkages", "strategic interactions", "network effects" and "credit cycles", they have not yet decided what "systemic" risks are. », they did not give everything. An inclusive term to make it inclusive. Regulatory authorities.
"Regulators will never be able to anticipate risks, skillfully measure the assets of financial institutions, or ensure that huge debts can always be repaid." We need to change the basic principle of the financial system, where the government always guarantees huge debts in times of crisis. difficulty. We have to do it before the firefighters test."
John Cochran from his book " Accounting" .

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