Central bank insanity

Pendal Group

Pendal Group

Albert Einstein once said the definition of insanity was “doing the same thing over and over again and expecting different results” but unfortunately, that is the operating manual of many global central banks. Seven years of massive monetary stimulus has failed to push growth or inflation to acceptable levels. The GFC was caused by a credit and debt supercycle of epic proportions and central banks are actively encouraging more debt to ease its aftermath. It should be clear by now that central bankers have no clearer insight on what’s going on than the average economist and that they change their view with every new fad. All this meddling in markets by the authorities is becoming self-defeating. All we are left with is dysfunctioning markets and a slightly odd feeling. Demand in the economy can be stimulated, but it can’t be created out of thin air. The bounces we have seen will likely prove to be just a small blip on a chart in a short period of time. (VIEW LINK)


Pendal Group
Pendal Group
Pendal Group

At Pendal Group, our vision is to combine the benefits of our strong institutional foundation and performance-focused culture with a multi-boutique specialist investment approach. We believe this approach firmly positions Pendal to achieve...

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