Why is there no sustainable recovery?

Because of the policy errors of the West to save the corrupt financial system, but abandon the people whom 'the system' is intended to serve.
 

Central bankers placate rates fears
By Chris Giles and Ralph Atkins in London

Interest rates are likely to remain at their historic low until June or July next year, investors believe, after a febrile week in the markets prompted central bankers to roll out soothing messages to calm nerves.

Andy Haldane, the Bank of England’s chief economist, indicated he was minded to keep interest rates “lower for longer” to ensure the BoE did not damage the recovery.

As recently as June, hawkish statements by Mark Carney, Bank of England governor, led market participants to expect the central bank would raise interest rates from their 0.5 per cent floor as early as this November.

But such was the turmoil on global financial markets this week that investors thought on Wednesday the economic outlook was so dire rates would remain on hold for another year.

The turbulence appears to have alarmed central bankers. Mr Haldane said evidence of a weaker global economy, lower inflation pressures and low wage growth had forced him to reassess the UK economic outlook.

His comments came after James Bullard of the St Louis Fed said the US Federal Reserve should carry on with its asset purchases in October, instead of halting them as scheduled.

The interventions of the central bankers “smells of a co-ordinated attack to help boost declining sentiment”, said Adrian Miller, director of fixed-income strategy at GMP Securities. “Markets need to check into the Betty Ford Center and go into rehab, to wean themselves off this addiction to central bank support. If that means more volatility and lower prices in some asset classes, so be it.”

 

Continue reading at the Financial Times.