I started this blog in September 2006. At that time I had the position of the National Bank of Poland deputy governor, supervising foreign exchange reserves, payment systems and cash circulation, I was also a non-voting member of the MPC council. It started in English, and the first posts were on inflation, China, US real estate developments and IMF global outlook.
After few years I switched to Polish, but I decided recently that it is high time to go back to roots and from now on the blog will be again in English.
Let me restate some recent key messages that I presented on this blog:
- central banks activity in the last few years is hurting the world economy, it is simply buying time and delaying the necessary adjustment. The pathological outcomes of such policy are: massive asset price inflation, rising inequality, rising influence of Western banksters on global governance, rising public debt, rising role of the state, rising probability of Lehman-style crises in the coming years, rising popularity of populist parties that may lead to collapse of European values;
- education system in USA and Europe (with some notable exceptions) is creating unemployment among youth. Massive reform is needed to put young generation needs at the center of K-12 and higher education. The biggest failure of the education system is that is focuses on filling young person brain with knowledge that is freely accessible on Internet, while it should focus on finding talent and create entrepreneurial attitudes among young people;
- state is too big, it replaces that market place, reduces animal spirits and slows the human progress. We need less state, more market and more competition.
- demography is a very powerful force, it works slowly, but surely. Poland’s demography will deliver a lethal blow to the Polish public finance and economy around 2020 (it applies to many other economies as well). The only way to stand against this demographic tsunami is to improve innovativeness of the economy, in such a way that local firms expand successfully to foreign markets.
- legislation is created by powerful lobbies that seek rents at the expense of the citizen. Very little is done to combat this trend (as shown by banksters influence on post-Lehman legislation), powerful lobbyists control legislation process. There was special report on this issue in Poland prepared by my research team (in Polish).
More posts are coming, on various topics, Stay tuned!