Theres a horse named inflation.
This horse is flat on its stomach, with legs spreadeagle.
Every three days for the past nine years, one of the worlds central bankers dresses up as a jockey. They mount the horse and flog it with the whip marked lower interest rates.
On Tuesday, our resident jockey, Glenn Stevens, sat astride the deflated mount and hit it with a 0.25% cut.
The inflation horse is supposed to respond to these whippings by suddenly springing to life and galloping towards the furlong marked 23% inflation.
No one seems to have told these jockeys theyre flogging a dead horse.
The Japanese stead was beaten to death years ago. But old Abe & Co still come out to give it a flogging from time to time. The Japanese horse stuf…
Read the full article at: http://www.dailyreckoning.com.au/central-bankers-flogging-dead-horse/2016/08/06/