Now that President Barack Obama has been reelected, Federal Reserve Chairman Ben Bernanke's
easy money policies may well be with us for the next four years.
And even if Obama replaces Bernanke when his term ends in January 2014, he's likely to choose another soft-money acolyte like Fed Vice-chairman Janet Yellen to lead the Fed.
For believers in sound money like me, that's something of a gloomy prospect.
As for the rest of the world, the prospects for higher interest rates don't look too good, either.
However, on Monday I did catch a glimmer of light when it was announced the Bank of England's new Governor is going to be Mark Carney, the former head of the Bank of Canada.
Now I'll be the first to admit that, at first glance, Carney doesn't look too promising.
He did, after all, spend 13 years at Goldman Sachs (NYSE: GS
). And we all know the track record of Goldman Sachs has been nothing short of appalling.
The bank itself made a bundle by shorting the housing market on the way down and persuaded its alumnus Hank Paulson to bail out its dodgy AIG credit default swaps with $13 billion of taxpayer money.
However, the truth is Carney has been out of Goldman since 2004, and his track record at the Bank of Canada has been very good indeed.
To Carney's credit, he didn't cut interest rates as far as the Fed and has actually raised them part of the way back. What's more, Carney only did $20 billion of "quantitative easing" bond purchases in 2009, at the height of the crisis, and has since sold the extra bonds back to the market.
In the aftermath, Canada's economy has notably outperformed the U.S. economy over the last five years, and continues to do so even though house prices there are currently looking wobbly.
Ben Bernanke could learn a thing or two here.
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