Control Reversal

There’s a well known phenomenon in aerodynamics in which a plane’s flight controls appear to do the opposite of what is intended. This can happen at high speed, for example. (I have a vague memory of a movie supposedly about Chuck Yeager breaking the sound barrier, and there being a tense moment in which our hero had to decide which way to move the controls. Should he pull them the traditional way as advised by all his colleagues? Or do the opposite as his instinct said? Obviously he followed his instincts! I don’t know how true any of that is!) This inspires the obvious thought…


Raise interest rates.

I’m not suggesting that there is any link between economics and aerodynamics. And my position on economics has been documented. So don’t necessarily believe anything I say on the subject. However, there can be no doubt about the pointlessness of continuing to decrease interest rates. It has become a joke; 1%, 0.5%,… This strategy is about as effective as a visit to a witchdoctor.

If governments are in the business of bailing out more and more banks, and if they are about to start printing money/quantitative easing then raise interest rates at the same time. Bring back some semblance of normality for the man in the street.

P

Total Views: 130 ,

Related Posts

At Last: Education, Education, Education Theresa May wants to bring back grammar schools. According to one poll 60% of the British public agree with this idea. If I'd been asked I would have ...
“Algo My Way, You Go Your Way” My upcoming talk at the Quant Insights conference, 14th October, London, will be "Algo My Way, You Go Your Way - Four Decades in Business." More detai...
All Mod Cons For the UK and wilmott.com it's that once-in-a-generation moment. A new bathroom? No! While Mark Carney performs his fine balancing act of talki...
Sir Bob Geldof, We Who Are About To Thrive Salute ... A big, big thank you from those of us who wanted out of the EU to: Lord Stuart Rose, leader of the Remain camp, for his timely confession Da...
How I Successfully Forecast The Result Of The EU R... Gosh, this is embarrassing. I seem to have done the double. This is a sequel to my blog from last year How I Successfully Forecast The Results Of T...
A Proper Analysis Of The EU Referendum Polls I've been following the polling with obsessive interest. And finding the analysis somewhat feeble. I'm going to very quickly address the topic of poll...
Things That Haven’t Been Said About The EU R... Debate? Debate?? They don’t know the meaning of debate! The two sides have both in their own ways been like broken records. The same old arguments ...
Why I And All My Rich Pals Are Voting To Stay In T... I’m relatively rich. I can afford private healthcare. I don’t have to worry about long waiting lists for operations or the impossibility of getting...