Bluff
The Game Central Banks Play and How it Leads to Crisis
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- $11.99
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- $11.99
Publisher Description
The accepted narrative of the global financial crisis of 2007–09 is that the central banks saved us from an inferno caused by Wall Street greed. While there is no doubt they did save us, did the firefighters actually cause the fire as well?
The Bank of England and US Federal Reserve have used the bait of low interest rates together with the bite of inflation in their quest for economic growth. Bluff reveals how these tactics have failed and instead left us with an unhealthy mix of debt, alternating booms in real estate and equity markets and laggard wages.
In an incisive critique, Bluff makes the case for a much-needed public debate on the role of the all-powerful central banks; an acknowledgment of the damage caused by flawed policy decisions; and a vital reassessment of the social contract between the people and their central bank.
PUBLISHERS WEEKLY
Central banks such as the Bank of England and the U.S. Federal Reserve have become so indispensable that most people no longer question their place in the modern world economy, but asset management careerist Hoda argues that this questioning is long overdue and critical. According to her, "Our disinclination to question the central banks' actions stems from fear fear that the equity, bond, and real estate markets are no longer a reflection of the wealth of our society but instead a leviathan that threatens it." The central banks benefit from manipulating us, she explains; this manipulation can keep the economy in check. Hoda covers motivations for this "bluff," the history of banking, inflation, the consequences of the bluff, price stability, gold, and suggestions for the way forward. We need to question the central banks and their actions today, she stresses, and demand that our governments step in to control price level. This is an interesting take on the causes of financial crashes, but it's hampered by a dry prose style. Cursory attempts to make the subject matter relatable aren't successful, and most lay readers will struggle with this.
