Opinion: (Stanley Fisher, the Governor of the Bank of Israel): “’We’ve run out of our normal bullets and out of our heaviest bullets, but there could be room for quantitative easing if that decision was made, and that would have an impact.’

“’We are at the end because the economy went through a massive recession and the financial system was very badly hit, including the banking system and housing finance. Many people have mortgages that are under water, and that situation hasn’t been fixed yet.’

“There are clear concerns almost everywhere that we could have a very slow period, both in the United States and in Europe.’

“’The difference among governments is that there are governments that are cutting back already, …and other governments that don’t see a way of doing that without reducing demand seriously.’

“’We are in very difficult territory. This is not where the textbooks five years ago would have expected us to be: with interest rates at zero, with massive budget deficits. In those circumstances, you’re operating under extreme conditions, and the textbooks aren’t quite sure what to do in those cases.'”

My Opinion: If Stanley Fisher, who led the Israeli economy faultlessly over the years, is talking about the unpredictability of the situation, it means that the world economy is at the lowest point of the fall. It’s time to realize this and act using the new economic methods: the method of the “integral” economy, where everything is calculated as “for the family.”
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