Aired 5 years ago on 77WABC Radio 
Finance News

Listen: "The central bankers will save planet Earth?"

Share this burst
Don’t miss the good stuff
Subscribe and get a weekly digest of trending moments from the radio
Photo Credits : (GettyImages)
Mario Tama
Automatic TRANSCRIPT This transcript was automatically generated by AudioBurst technologies

A son lease on some of the WABC I'm John back this is the John bachelors show the central bankers will save planet there must Richard that scene of the Hoover institution riding in dividing ideas looking in central bankers an their job ashore hawkish policies towards the best rates charge the best customers now Draghi is a central banker par axle on tea leaves the European Central Bank can remarks that Richard links to in his defining ideas most recently this is in the Wall Street Journal you could look at if you wanna follow missed Draghi's argument that he is sending out eight DAV issue message there for he's going keep rates low he's going to continue to stimulate the market with what are twist so or off varies central banker tracks to keep people Scout keep people a money flowing in keep thee economies growing even if that a sluggish pace enhances remarks this way what I never hear them Mike critics when I never hear them discuss is the risks of doing nothing those art in my mind the real risks we have to be concerned about and the path are monetary policy is taking is in that sense the past of risk reduction very defensive Richard a very good evening deal why is Mario Draghi so defensive what is it about his Davos Ness that is no longer making a master of your good evening to you well I think the point about this is that done monetary policy the minute relation the interest rates to see single pool there's a huge other things the government's too many which they should not do some the woods they should do and the more Bennett now becomes conceit that believed change in a single number will be able to transform essentially economy in the bad stated disrepair in something urban illusion you know when you change interest rates for some things have been oh and what Mister Draghi resource to is simply one thing so people find it more attractive bar would low rates that is true veterans Paribas Hall but also is through the people be less reluctant more reluctant who landed role rate so you have no idea what these protective these two things were gonna be and if you start looking at the long-term situation and you see it on ICA situation in Europe or unemployment will remain chronically Hall unions will have disproportionate Pallet regulations on the production new growth grabbed economies gonna go down there's no reason for anybody the have courts or optimism on everything the so what you'll see is they generally genomics slow down and they only way you could do that is to allow people to get gain some great idea tax those games away if you regulate those games away or do you do when interest rates supplies assembly a comet in a very long paragraph and it can't possibly make their kinds of tech city once I mean my little article and many of them funding ideas ends with us centered says essentially you guys have to realize we shot all water that's what they have to tell the political branches of how they can do that Richard we're not going to do that so we have to entertain what's gonna happen in between your remedy an the present state which is the defensive miss of the diversion Assad it's easy the look at your up and say we don't wanna do that but in fact were doing it if I really but they don't know breaking news right now let me get to the news today your old gained against the dollar that's not a good thing again game against the dollar that's not a good thing why why is the dollar weakening because suddenly it's become clear to the markets that are central bankers Janet Yellen the Federal Reserve have these last month's maintain that they were going to solve things that everything was batter that the economy was recovering and therefore there were going to begin a series of small incremental great heights they started in December through sixteen maybe and the seventeen.