This Is the First Time In History that All Central Banks Have Printed Money at the Same Time … And They’re Failing Miserably

George Washington's picture

Simultaneous Global Printing Is Failing Miserably

Mainstream Keynesian economists argue that the failure of the European austerity measures to pull Europe out of the doldrums proves that more stimulus is needed, and that austerity is poison at this stage.

Indeed, most mainstream economists pretend that debt doesn’t exist … or believe that debt for its own sake is good and necessary.

But Martin Weiss noted last month:

Four of the world’s largest central banks have gone absolutely berserk, running the money printing presses like never before in history:


chart This Is the First Time In History that All Central Banks Have Printed Money at the Same Time ... And Theyre Failing Miserably
Source: Chart lines — Pimco;

The Bank of Japan (BOJ) had already been printing money like crazy ever since their bubble economy burst in the early 1990s.


So when the debt crisis struck in 2008, the size of their balance sheet assets, which measure the cumulative total of a central bank’s money printing operations, was already the biggest in the world: About 20% of their economy.


Then, when the shock waves of the Lehman Brothers collapse struck Japan, what did they do?


They stepped up their money printing operations EVEN further — to about 30% of GDP. (See yellow line in chart above.)


Other than Brazil in the 1970s or Germany in the 1920s, no other major nation — or group of nations — on the planet had ever gone that far! (Until, that is, Europe, which I’ll get to in a moment.)


Meanwhile …


At the U.S. Federal Reserve, no Fed Chairman in history — not even notorious easy-money advocates like Arthur Burns or Allen Greenspan — had EVER run the money printing presses for any extended period of time.


But Fed Chairman Bernanke changed all that. Soon after the debt crisis hit in 2008, he nearly TRIPLED the size of the Fed’s balance sheet from about 6% of GDP to almost 17% of GDP.


And in the years since, he has pumped it up even further to about 20% of GDP! (Red line in chart.)


The Bank of England (BOE) has mostly been expanding its balance sheet in lock step with the Fed (green line).


But in the global race to print money, it’s the European Central Bank (ECB) which has been leading the pack in the past year or so, suddenly expanding their balance sheet from about 20% of GDP to close to 30% GDP (blue line).


This is absolutely massive!


Heck, in the 1990s and 2000s, just the money-printing operations by ONE central bank (the Bank of Japan) changed the world:

Global investors borrowed abundant amounts of cheap money in Japan and poured it into risky investments around the world, helping to create some of the largest bubbles — and busts — in history.


Now, imagine FOUR central banks doing the same thing at the same time!

Indeed, China and India have been printing as well, as shown by the last 2 of these 2011 charts:

The U.S. is printing lots of money…..


Chart1 This Is the First Time In History that All Central Banks Have Printed Money at the Same Time ... And Theyre Failing Miserably
Source, The St. Louis Fed


The Bank of England is printing lots of money…..

Chart2 This Is the First Time In History that All Central Banks Have Printed Money at the Same Time ... And Theyre Failing Miserably
Source: The BoE


The EU is printing lots of money….

Chart3 This Is the First Time In History that All Central Banks Have Printed Money at the Same Time ... And Theyre Failing Miserably
Source: The ECB


Japan is printing lots of money…..

Chart4 This Is the First Time In History that All Central Banks Have Printed Money at the Same Time ... And Theyre Failing Miserably
Source: The BoJ


China is printing lots of money…..

Chart5 This Is the First Time In History that All Central Banks Have Printed Money at the Same Time ... And Theyre Failing Miserably
Source: The People’s Bank of China


India is printing lots of money…..

Chart6 This Is the First Time In History that All Central Banks Have Printed Money at the Same Time ... And Theyre Failing Miserably
Source: Reserve Bank of India

Pimco CEO El-Erian warned last month that central banks might fail in their giant experiment to cure the world’s economic ills with paper money. See this and this.

Conservative economists argue that if war spending could get us out of our slump, it would have done so by now.  They also point out that “more empires have fallen because of reckless finances than invasion”.

They also point out that the government has spent more in the last decade than in all of American history before that … to no avail:

The government has done more than during the Great Depression, but the economy is still stuck a pit.




The amount spent in emergency bailouts, loans and subsidies during this financial crisis arguably dwarfs the amount which the government spent during the New Deal.


For example, Casey Research wrote in 2008:

Paulson and Bernanke have embarked on the largest bailout program ever conceived …. a program which so far will cost taxpayers $8.5 trillion.


[The number is arguably much higher now. ]


So how does $8.5 trillion dollars compare with the cost of some of the major conflicts and programs initiated by the US government since its inception? To try and grasp the enormity of this figure, let’s look at some other financial commitments undertaken by our government in the past:


Chart%202%282%29 This Is the First Time In History that All Central Banks Have Printed Money at the Same Time ... And Theyre Failing Miserably


As illustrated above, one can see that in today’s dollar, we have already committed to spending levels that surpass the cumulative cost of all of the major wars and government initiatives since the American Revolution.


Recently, the Congressional Research Service estimated the cost of all of the major wars our country has fought in 2008 dollars. The chart above shows that the entire cost of WWII over four to five years was less than half the current pledges made by Paulson and Bernanke in the last three months!


In spite of years of conflict, the Vietnam and the Iraq wars have each cost less than the bailout package that was approved by Congress in two weeks. The Civil War that devastated our country had a total price tag (for both the Union and Confederacy) of $60.4 billion, while the Revolutionary War was fought for a mere $1.8 billion.


In its fifty or so years of existence, NASA has only managed to spend $885 billion – a figure which got us to the moon and beyond.


The New Deal had a price tag of only $500 billion. The Marshall Plan that enabled the reconstruction of Europe following WWII for $13 billion, comes out to approximately $125 billion in 2008 dollars. The cost of fixing the S&L crisis was $235 billion.

CNBC confirms that the New Deal cost about $500 billion (and the S&L crisis cost around $256 billion) in inflation adjusted dollars.


So even though the government’s spending on the “war” on the economic crisis dwarfs the amount spent on the New Deal, our economy is still stuck in the mud.

“Deficit hawks” like top economic historian Niall Ferguson says that America’s debt will drive it into a debt crisis, and that any more quantitative easing will lead our creditors to pull the plug. See this, this and this. Indeed, PhD economist Michael Hudson says (starting around 4:00 into video):

If the problem that is grinding the economy to a halt is too much debt, and if no one in the government – in either party – is looking at solving the debt problem, then … we’re going to go into a depression as far as the eye can see.

Yet the U.S. hasn’t reined in its profligate spending. While modern economic theory shows that debts do matter (and see this), the U.S. is spending on guns and butter, and American debt has risen to more than 100% of GDP.

As PhD economist Dean Baker points out, the IMF is cracking down on the once-proud America like a naughty third world developing country. (As I’ve repeatedly noted, the IMF performed a complete audit of the whole US financial system during Bush’s last term in office – something which they have only previously done to broke third world nations.)

Indeed, economics professor and former Senior Economist for the President’s Council of Economic Advisers Laurence Kotlikoff wrote in 2010:

Let’s get real. The U.S. is bankrupt.




Last month, the International Monetary Fund released its annual review of U.S. economic policy…. The IMF has effectively pronounced the U.S. bankrupt.




Based on the CBO’s data, I calculate a fiscal gap of $202 trillion, which is more than 15 times the official debt.




This is what happens when you run a massive Ponzi scheme for six decades straight….




Bond traders will kick us miles down our road once they wake up and realize the U.S. is in worse fiscal shape than Greece.

Indeed, despite all of the global money printing, we’re still in a Depression. And see see this.

False Debate: More Stimulus Or More Austerity

In fact, the whole stimulus-versus-austerity debate is a false one (as we noted last year).  Let’s examine an analogy to get beyond the rhetoric and see what’s really going on …

The blood pressure of the patient in the emergency room drops precipitously.

The ER docs have already given 15 pints of blood over the course of many hours. But the patient is still on the verge of dying.

Medical rules and regulations say that more than 15 pints of blood should never be given, as too much transfusion can cause other fatal problems.

The “liberal” doctors want to give the patient more blood. After all, this is a life-or-death emergency … and if they can just buy more time, they might be able to figure out a way to save the patient.

The “conservative” doctors want to stop with the transfusions. After all, giving too much blood could kill the patient … and maybe he’ll be able to pull out of it on his own.

Who is right?

Well, the “liberal” and “conservative” doctors are so busy arguing their point of view that they haven’t noticed that one of the patient’s legs has been half chewed off. He’s bleeding out through the huge open wound.

Unless the doctors suture up the wound, the patient will bleed out no matter how much blood they give him.

The government isn’t even stimulating in an effective way …. it isn’t spending money on the types of stimulus that will have the most bang for the buck.  And giving money to the little guy helps stimulate the economy much more than giving it to the big financial players.

But while D.C. has thrown a couple billion dollars at jobs and the states – it is a tiny drop in the bucket compared to the many tens of trillions of dollars in handouts to the giant banks.

Whether or not Keynesian stimulus could help in our climate of all-pervading debt, Washington has already shot America’s wad in propping up the big banks and other oligarchs.

More important still, Keynes implemented his New Deal stimulus at the same time that Glass-Steagall and many other measures were implemented to plug the holes in a corrupt financial system. The gaming of the financial system was decreased somewhat, the amount of funny business which the powers-that-be could engage in was reined in to some extent.

As such, the economy had a chance to recover (even with the massive stimulus of World War II, unless some basic level of trust had been restored in the economy, the economy would not have recovered).

Today, however, politicians haven’t fixed any of the major structural defects in the economy ( and see this).

So even if Keynesianism were the answer, it cannot work without the implementation of structural reforms to the financial system.

A little extra water in the plumbing can’t fix pipes that have been corroded and are thoroughly rotten. The government hasn’t even tried to replace the leaking sections of pipe in our economy.

Bailouts, money-printing and lose monetary policy can’t patch a financial system with giant holes in it.

What are the giant holes?

Some of the biggest are:

  • Focusing on policy objectives other than reducing unemployment (which has the net effect of actually increasing unemployment)

Of course, the loss of America’s manufacturing base, encouraging jobs to be shipped abroad, out of control derivatives and other shenanigans are giant holes as well. And the government has been throwing money at the big banks instead of the little guy, which – as Steve Keen as demonstrated – is not an effective way to stimulate the economy.

Another useful analogy is that of parasite and host.  As we wrote in 2009:

Why isn’t the economy getting better, even though the government is pumping trillions of dollars into bailouts and stimulus packages and intervening in markets left and right?


Because the government is treating the wrong patient.


Let’s say you travel to the tropics and pick up a parasite. You go to your doctor who gives you very powerful drugs that make you sick.


You go back to the doctor, he looks you over, and then adds more potent drugs to your prescription.


You go back a third time and say “Doctor, I’m getting sicker and sicker, why isn’t it working?”


He responds “Oh, I thought the parasite was the patient. The drugs are making it healthier”.




The real economy is:

(1) People making things or providing real, useful services


(2) People saving money




(3) People investing the money they saved into productive businesses which will make more things or provide needed services.

According to top federal reserve officials and economists, the government’s actions will encourage big financial players to make even riskier gambles in the future.


Indeed, the government is in the process of giving hundreds of billions – if not trillions – of dollars and guarantees to hedge funds (hedge funds are some of the biggest speculators of all). Indeed, the various bailout programs are giving huge sums to companies that make money by pushing paper around without actually producing any useful goods or services.


The heads of the big banks and financial companies are also getting huge bonuses even though they have driven their companies so far into the ditch that they need government bailouts. Even Paul Volcker says the incentive system is broken. Indeed, the government is making the CEOs richer by giving them billions of dollars of bailout money with which to feather their own nests.


And credit derivatives [at least to the extent they are naked, unregulated and opaque] act as a parasite on the real economy: credit default swap buyers bet that the referenced company will go down the tubes (see this and this). And yet the government is allowing the credit default swap trades to increase, driving CDS spreads against many companies and governments to reach all-time highs.




Not only is the parasite being boosted by government actions, but the patient – the real economy – is being poisoned.


Manufacturing has been shipped out of America for decades, and the government is still actively encouraging companies to move manufacturing abroad.


Taxpayers will be on the hook for trillions of dollars of obligations through taxes/or inflation (even Bernanke has admitted that inflation is a tax, because people have less money in their pockets after buying necessities). So Americans will be able to save less.


And government has not only failed to require that companies accurately report their finances – so that investors can know which companies are stable and productive – but it has actually thwarted such accuracy. For example:

  • A government agency prevented the SEC from investigating multi-billion dollar Ponzi-schemer Stanford
  • As of 2006:

    “President George W. Bush has bestowed on his intelligence czar … broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations.”

The government has been strengthening the parasite and poisoning the real economy. No wonder the patient is getting worse.

We noted a couple of months later:

Michael Hudson is a highly-regarded economist. He is a Distinguished Research Professor at the University of Missouri, Kansas City, who has advised the U.S., Canadian, Mexican and Latvian governments as well as the United Nations Institute for Training and Research. He is a former Wall Street economist at Chase Manhattan Bank who also helped establish the world’s first sovereign debt fund.

Hudson has frequently described Wall Street as “parasitic”. For example, in a 2003 interview, Hudson said:

The problem with parasites is not merely that they siphon off the food and nourishment of their host, crippling its reproductive power, but that they take over the host’s brain as well. The parasite tricks the host into thinking that it is feeding itself.


Something like this is happening today as the financial sector is devouring the industrial sector. Finance capital pretends that its growth is that of industrial capital formation. That is why the financial bubble is called “wealth creation,” as if it were what progressive economic reformers envisioned a century ago. They condemned rent and monopoly profit, but never dreamed that the financiers would end up devouring landlord and industrialist alike. Emperors of Finance have trumped Barons of Property and Captains of Industry.

More recently, Hudson said:

You can think of the financial sector as being wrapped around the real economy, almost like a parasite, and that’s why it’s been called parasitic for so long. The financial sector extracts interest from the economy, the property sector extracts economic rent, as do monopolies. Now the key thing about parasites, is that it’s not simply that they extract nourishment from the host. The parasite takes over the host’s brain, to make it think it’s part of the economy, to make it think
it’s part of the host’s own body, and, in fact, that’s it almost like a child of the host, to be protected. And that’s what the financial sector has done today.


You have Obama coming out and saying, “We have to save the banks in order to save the real economy”. The fact is, you can’t serve both the parasite and the host.

And see this.

On August 10th, Hudson went even further. Specifically, he said:

  • The giant financial institutions have already killed their host – the real American economy
  • Since they realize that the American economy is dead, they are trying to suck as much blood out of America as possible while the corpse is still warm
  • Because the American economy is dead, their plan is to soon jump to another host. They will ship all of their money overseas

To come back to my original analogy, the dying patient has a horde of leeches inside the gaping wound in his leg, and the transfused blood has done nothing but fed the leeches. [Sorry for the gross analogy.]

The doctors have been helping the parasites, not the patient. Pumping in more blood – at least by itself – isn’t the answer.

Unless the doctors clean out the parasites and close the gaping wound, the patient has no chance.

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I am on to you's picture

Everybody remembers what Jesus said,told by others,the appostels, long after he went of the planet.

Nobody,remembers what Joe said Yesterday!

I am on to you's picture

Now i know why:Paul Krugman, needs a war with the Aliens,it gives good sence,and here i thought: A Journey to the center of my mind ,was enogh.

Thank you for the educational tour!

Just dont know which school of economics this is,what the heck.its all Cayman to me! 

Ghordius's picture

Jesus the Socialist, as portrayed by the Evangelists, Faith, Hope and Charity social values - Falak, you know that this is not the way many Christians see it...

You also mention the Pax Americana Empire, which is again "not done" in presence of the righteous, who think that this does not affect them as long as they don't look at it - as if a nation can be militaristic vs the outside without having a militaristic effect inside...

On a side note, I find interesting & very telling that many find fiat money a thing of the devil while they condone what you rightly call "funny money derivatives" with shrill cries of "it's the market!!!"

nmewn's picture

I must have missed the chapter where Jesus taught that God's children should give over their earnings to the state so that it (in its infinite might apportion Faith, Hope & Charity as it see's fit.

I'm pretty sure He would not approve of the debauchery of DSK, the statists who feed off the labor of others or Solyndra.

Ghordius's picture

ufff... you know that if we go there it's an endless regurgitation of protestant vs catholic interpretations of "what He really meant"

we had once a long discussion about what Jesus said when the Pharisees asked if it's ok to pay taxes to the Romans - not much agreement there

let me ask it this way, would He be against a National Health Service as the British have it?

or to spice it up: Muslims consider 20% of your income (if you are not living in poverty yourself) as the minimum that a faithful should give for charitable and other uplifting works (i.e. infrastructure, state, etc.). Of course the emphasis is uplifting.

nmewn's picture

Charity is once and always, voluntary. If it were not, how would we recognize greed whether practiced by men or the state?

He was concerned with good and evil in mens souls and the voluntary acceptance of His word.

But I must go that I may afford to "render unto Caesar" ;-)

GeneMarchbanks's picture

You begin with an immediate misrepresentation. No one is demanding you to 'give' anything. Paying taxes? Yes.

Perhaps Jesus the Moralist should stay outside the purview of the discussion.

nmewn's picture

The misrepresentation was not on my part.

Perhaps socialists should leave systems of governance (men elevated above other men) outside of the discussion of mens souls.

Ghordius's picture

Systems of governance? they can be broken down to three archetypes:


1. by custom(s)

2. by laws and principles of process (application of laws) - including constitutions

3. by power (force or material, this includes money)

Ghordius's picture

well, socialists usually do as you describe, that's why the european christian democrats have usually a left and right wing in the same parties, depending on how "socialistic" they are.

The socialist ideology (which mostly rejects religion) is one thing, the political application is a matter of degrees.

falak pema's picture

I humbly adhere to my historical interpretation of christian values stripped of DOGMA, the belief in holy trinity,  the seven sacraments of catholicism  etc. 

Christianity before Constantine took it over and made it into Imperial religion was faith, hope and charity, par excellence. Its Nicaea 325 AD that made it doctrinal, three centuries after the originator's death!

Righteous is not a God given trait, just saying, as manner of speaking. Its something that has to be earned, based on what we do! And the US has done what it has done since 1945...First rules of Western civilization : primacy of fact and logic; we are what we do!

Lets stay LOGICAL and FACTUAL and efface emotion, transcendant dogma from debate; the crimson thread of Socrates, as lauded by Plato. 

GeneMarchbanks's picture

'Roman Catholicism is not even a religion, but simply the continuation of the Western Roman Empire, and everything in it is subordinated to that idea, faith to begin with. The Pope seized the earth, an earthly throne, and grasped the sword; everything has gone on in the same way since, only they have added to the sword lying, fraud, deceit, fanaticism, superstition, villainy. They have trifled with the most holy, truthful, sincere, fervent feelings of the people; they have bartered it all, all for money, for base earthly power. And isn't that the teaching of Antichrist? How could Atheism fail to come from them? Atheism has sprung from Roman Catholicism itself.' --Dostoevsky

falak you seem to distort historical fact with spiritual teaching. Emotion is not something that can be discarded by 'logic' or 'fact' since it is a vital part of human cognition. You clearly have a beef with Catholics like i-dog. I suggest you leave that outside your posts before attempting a 'logical' or 'factual' discussion as if you have some monopoly on those.

falak pema's picture

I do believe that the transcendant question is an issue of private person, not one of social ideology. The French got it right in their revolution when then went secular. REligion went private. The current return BOTH in western world as in ISLAMIC world, to promote regressionary religious dogma on to civilization's FRONT PAGE, at the expense of individual free will and dignity is NOT acceptable. 

As history proves these fundamentalist diehards spend MORE time killing their own kind (Catholic-Protestant, Sunni-shia wars), than in promoting their beneficial social values of religion. Also, lets face it, the Abrahamic legacy is totally patriarchal and inhibits and curtails development of HALF of humanity. NOT ACCEPTABLE. We as men have to have the balls to accept female emancipation as equals in society and fight against all debasement of woman based on religious DOGMA. I know that this procees will be painful. As man I benefit from my uber gender status relative to woman. But our society is changing and we cannot stop this trend of letting women be passionate and ambitious just like us. Too bad if I get my nuts kicked in the process. I have to adjust just like all new generations.

GeneMarchbanks's picture


I liked you before, now I truly love ya! Sending 'contact' request as we 'speak'.

SO anyway... the French, ah the French... so individualistic.. but not in a Greek sense. In all honesty I'm not about to start another secular vs religious debate with you if you don't already see the futility in it. That doesn't mean I capitulate though because I'm pretty sure that instigator Rousseau said something like 'women should never be alone; accompanied at all times by men' not to mention that he was a ponce. Excuse me if I'm not sure your beloved 'women' would choose his ideas over the Patriarchy which, ironically enough, Are Patriarchal.

Also, lets face it, the Abrahamic legacy is totally patriarchal and inhibits and curtails development of HALF of humanity. NOT ACCEPTABLE. We as men have to have the balls to accept female emancipation as equals in society and fight against all debasement of woman based on religious DOGMA.

Why not acceptable? 'Cause you're a life long adherent of the Matriarchal Cult of Petra? I kid.

What you say is true of the OT religions not of NT which is a Son Cult and also BTW not a dogma nor doctrine but an existential teaching.

We agree more than you think but I care for the Matriarchy exactly as much as for the Patriarchy which is not at all. A humanity resembling a bee colony is what you'll end up with. Vagina Worship. The Queen Bee Society. Wilful Bitches. This... I can do without.

GeneMarchbanks's picture

'as if a nation can be militaristic vs the outside without having a militaristic effect inside...'

Exactly. Militarization of hearts and minds as the final conquest. Derivatives are just that: militarization of financial instruments.


falak pema's picture

All Empires have to go to the Inquisitorial mode WITHIN when they venture OUT in Crusader conquest. Its inbuilt into the mindset, to maintain total control and as the ideologues of that age said : kill em all in God's name; the infidel (Jerusalem 1099), the schismatic greek (Constantinople 1204) and the heretic (Beziers 1209). So friends and foes get smeared alike when they buck the rules. ANd that sequence was repeated time and again! By the Catholic kings of Spain (1492) and Charles V (1520 onwards), by the Valois (1572), by the thirty years war in Germany (1631), by Louis XIV (1685 revocation of Nantes treaty), by Hitler/Stalin/ MAo in the 20 th century totalitarian age, by the USA in its global fights with Communism (Iran 1953, Vietnam 1968 etc) and with Axis of evil (Irak/Afgh 2001-2003-2009). 

Now the battle is financial/commercial as the nuclear age and Cuban stand-off has made first world war verboten! But the dictator class is alive and well!

falak pema's picture

This is the first time in History that a huge leverage engine of human endeavour called Capitalism has shown the world that it can Morph from instrument of PROGRESS into its exact very opposite, and become the Sisyphus rock of human sufferance, condemning future generations to debt slavery. 

THe Central bank paper mill is just the MEANS to save the NECKS of those who benefit from this SHAM, the uber-alles class living in Pompei and Heracleum at the foot of Vesuvius.

Totalitarian Empire, in desperate cynical knee-jerk, then results; as "the barbarian is at the gates", and we become Diocletian's sons. 

Much as I appreciate the financial and geo-political anaysis presented at ZH, I do not adhere to the terms used to define this tragic regression of global magnitude in western civilization.

"Socialism" is not the problem. Jesus as the Evangelists portrayed him was a socialist. Faith, Hope and Charity are eminently "social" values. "Keynesianism" was a means to introduce in the Economic domain government regulation into an economy then run by PRIVATE sector in the USA. The FED, the Rockafella-Henry Ford- JP Morgan-Andrew Mellon-Averell Harriman etc. construct was pure Private sector Oligarchy. It was this construct that the Keynesian experiment in the Great Depression tried to remedy. So in the current resurgence of that Oligarchy since Thatcherist-Reaganomics-NWO days, which has been amply highlighted time and time again on ZH, as once more in the Post on the videos showing us clearly the time line construct of the 2008 collapse presented yesterday, we have ample feedback and analytical tools to understand what the origins of the current global imminent financial IMPLOSION is all about. And how it affects the current Empire of PAx Americana.

WHAT THIS LONG VIDEO HAS SHOWN US ONE MORE TIME IS THAT THE ABSENCE OF GOVERNMENT REGULATION OF PRIVATE OLIGARCHY INITIATIVE GONE VIRAL CREATED THE FUNNY MONEY GLOBAL DERIVATIVES BUBBLE NOW A CANCER TO THE REAL ECONOMY. SO ITS NOT  lack of government controls and Keynesian checks and balances. Its the absence of it. And the central bank construct that this current post headlines is the makings of the Oligarchy that has CapTURED all levers of public power via crony capitalism. The morph in governance is now total in the heartland of Pax Americana EMpire that pretends it IS western civilization!

By confusing in its analysis of why we are where we are, the historical perspective of past experiments, by using convenient buzz words like Keynesian debacle and Socialist values, ZH does not do itself service as SYNTHESISER of its excellent financial ANALYSIS.

The world is NOT a victim of Socialism, or of Keynesian logic. These are just TOOLS in societal construct to attain an objective. The World  is victim of a totalitarian MINDSET, where the OBJECTIVE is world hegemony of a certain class of people who have benefitted from this roller coaster ride ALL over the WORLD. It is the totalitarian empire builders, time an time again, who create the problem and oblige humanity to take the painful road of civilization repairwork. (Caesar, Charles V, LouiS XIV, Napoleon, Queen Victoria, Kaiser/Hitler/Stalin, US Empire).

The objective of humanity is not to live in a Totalitarian construct. If Western Civilization has taught us ONE thing it is that collective "free will", national or supranational, and resulting human endeavour on global scale, should take into account the liberties of the individual as CENTRAL value of its civilization. 

We have today thanks to the sons of Socrates, those who disseminate KNOWLEDGE throughout history, the means to reconcile a collective way of living and the basic values of our civilization built on individual initiative and pursuit of self accomplishment in a social frame work that respects very simple VALUES inherited from the past; bedrock of our collective history : Prudence, Courage, Temperance, Justice, Faith (in LIFE, not in a deity), Hope and Charity. If the individual believes in these values and if Society creates checks and balances to hold him accountable to collective laws we can progress in social harmony within the material means of our ECOSYSTEM. When the Ecosystem is endangered by human aspirations however noble or exuberant its time for collective reset. This is the TRUE focal point of the current materialistic stampede of Reaganomics, its legacy to future generations; we are running out of RM in real economy, we need to reset our collective way of living and this funny money debt hangover cloud will at least serve us as a PAINFUL lesson to hit the ground and create a new ECOSYSTEM compatible socio-economic model that condemns NO CLASS/ETHNIC GROUP of human beings anywhere in the world to abject slavery. That is the TRUE legacy of western civilization construct and the Socrates crimson thread through history.

We are in a times where we have lost these values through greed and delusion. This is nothing new, it happened time and time again. And each time MAN has found a new beginning, even if it means going to the bottom of the hill. So tighten your seat belts... And "damned be he that cries hold enough!" As the Bard said. 

Sathington Willougby's picture

The Socialism equates with Jesus part of your statement - NO!  Disagree.

Socialism, fascism are not advocated by Jesus.  Both require use of force or coercion for transactions.  Both strip the free will from the individual.  Capitalism should use contractual obligations, but sadly has been shunned for the degenerate methods of socio-fascists.  Take for instance "global" business.  A technique probably pioneered by fast food restaraunts summed up as "we have to compete globally with state funded agents [hands out for taxpayer funds ultimately collected with coercion]" used by car companies, energy corporations you name it.  This crushes the marketplace competition when they start writing law (low flow toilets, haz mat lightbulbs).  After all, the public is "invested" in these companies, why not write law to monopolize it?  It leads to incredible distortions, why hasn't Japan recovered in a quarter century of intervention?

What you attribute to Jesus is charity.  It doesn't take free will from the individual, but does encourage moral values you pine for.

Otherwise agree.  We must have rule of law, not rule by man.

Look for the gun in the room, it's usually pointed at you.

Ghordius's picture

by your statements you are just showing that when Falak spells the word "socialism" you understand something completely different than it's definition and typical application.

I'm not trying to be confrontational, btw, it's just that the word itself has a different meaning from how you use it.

Sathington Willougby's picture

Yeah we're basically on the same page.  Our terminology is slightly different.  

We have a lawful document in the US that outlines this stuff quite well with lots of philosophical underpinnings.  However, one day it became "alive" and since then has been emasculated and miscontrued beyond belief.

GeneMarchbanks's picture

In art, as in everything living, there is no progress, but only varieties of one stimulus. --Hebbel

From the above it only follows that there is no regression either falak, none. What you are seeing is the end of the Machine Age, its decay and collapse. As it stands Man is master no more. Sure, we can manipulate the elements, splice into genetic code and maybe even 'cure' disease. You can read about it on the front page more often than not but what you never read is the new disease generated on the way to your nonsensical 'progress'.

Keynes saw no farther than his age allowed but it's the bastardization of his theory and implementation that is at fault which brings us back to the folly of the current ruling class.

'Socialism' is anathema to the American Weltanschauung mostly because of generations of brainwash since the Industrial Revolution. Go there to witness this strange fear they have to ideas outside their own self-righteous ones. It's just pathetic, all pursuit no happiness.

The only thing capitalism has demonstrated is man's tragic, failed, probably last attempt at Immortality.

2012wiki's picture

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Cruel Aid's picture

George, do you have any insight into the thinking of Tom Hickey from 'and see this' article from 2009 on deficits do matter, where he references 'Understanding Modern Money'.

Basically he feels that concern over deficits are for the uneducated.

"The government cannot "run out of money" in a fiat system. When money creation outpaces the capacity of the economy to produce goods and services to buy, then the government slows spending and takes money out of the economy through taxation to maintain the balance.

Am I missing something wrt runaway, seemingly linear, government growth and spending being a nonproductive overburden.

Interesting points in a theoretical economics world from 2009 when the amount of debt was much less.

Doesn't matter!

2012wiki's picture

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q99x2's picture

Just let me know when they would like to have the debt paid back and I'll take care of it. This is reality speaking.

When crimminal racketeers are thrown into prison the debts are repudiated. So, who cares.

Lock down the boarders, kick out the globalists, arrest the treasonous politicians, live long and prosper.

And, if I remember, rules concerning usury are in the bible so that greedy M'f'king banksters would never come into a position of power. Live and learn.

the tower's picture

Nationalize the banks, only way to get our money back

blueridgeviews's picture

You have witnessed the inefficiency and corruption in Governments for the past umteenth year and you want them to take over the banks? Yeah, that's a solution. sarcasm

MGA_1's picture

Actually, in truth it's kind of working... now the rub will be if we see the evil side effects of money printing... inflation...

El's picture

Have you ever wondered what the world might have been like had it never known the likes of Hitler, Stalin...or Keynes?

Sathington Willougby's picture

For every extreme degenerate, there's throngs of slightly less extreme degenerates waiting to inflict their particular brand of genetic curmudgeonery on the populace.

These megalos don't necessarily create the problems, they fill a niche when the forces of nature make it favorable.

It goes both ways.  For every worst, we can produce a best and the free will of the people can align to bring the light on them.  
Is there a Dr in the house?

Arnold Ziffel's picture

Sounds Contagious.


A contagious disease is a subset category of infectious diseases (or communicable diseases), which are easily transmitted by physical contact (hence the name-origin) with the person suffering the disease, or by their secretions or objects touched by them.[1]


Often the word can only be understood in context, where it is used to emphasise very infectious, easily transmitted, or especially severe communicable disease.[2

Body of Lies's picture

Simple answer ... Keep Lying

indio007's picture

Gonna go redeem my Federal Reserve Notes for some Maiden Lane III certificates.

Monk's picture

M2 needed to cover losses from M3 and MZM.

Also, the "real economy" won't return if most want a middle class lifestyle.


QuickFrozen's picture

All Humans are Parasitic Aliens from Outer Space.

the grateful unemployed's picture

let's be honest the 8 1/2B hasn't cost the taxpayers anything, they simply don't provide enough revenue. and lets be even more honest, the fiat currency created hasn't done anything for business, as it remains hidden in the vault of charter banks. like the BOj in the 90's, which printed cash and parked it in MM accounts, (the money was withdrawn when things got a little better), the Fed can print all the cash they want, no one is paying for it and no one is using it. so what's the point? wall street uses the money to refinance failing businesses, [rather than allow the real economy to allow new businesses to compete]. of course this is the crony capitalist system the Japanese ran, and we loudly boohooed. [why the japanese people put up with this crap, well they are extraordinarly polite, you know? you can spew nuclear shit all over them and they hardly raise their voice] 

but the only result for right thinking americans is to stop paying taxes, (read HDT for more on this) because otherwise you're drawn into the corrupt system. [which has always been the flash point in american democracy, taxes; not abortion or gay rights] american corporation have already bowed out, see GE, and Mitt Romney, if you're an american working man and you pay one cent into this system you must feel you have been screwed. and you have

tempo's picture

Its so sad, the only competitive advantage the USA has left is to kill the poor defenseless people in undeveloped countries and call it a war.

DaveyJones's picture

"Simultaneous Global Printing Is Failing Miserably"

a redundant phrase, a global maze, a tragic phase

adr's picture

I'm lookin to Bernanke, I'm gonna get me lots of dollars...

Lookin to Bernanke gonna get me lots of dollars...

Dollars come from a man they were put there by a sham...

From a fed printer downtown...

If I had my little way I'd print dollars everyday...

Green tinted notes freshly made.


I'm lookin to Bernanke, I'm gonna get me lots of dollars...

Lookin to Bernanke gonna get me lots of dollars...


I took a big ol sack to where they started operation twist...

Squished the dreams of a country in my fist...

And dreamed about you Ponzi...

I poked a fat finger on a key, making the market go for a wild ride...

Bernanke's candy in my hedge or equity pie.


Zillions of dollars, dollars for me....

Zillions of dollars, dollars for free...

Zillions of dollars, dollars for me....

Zillions of dollars, dollars for free...


Look out!

sumo's picture

Over at RealClearMarkets, Jeffrey Snider has a set of in-depth articles that tie in with this:

In particular, "Finance Now Exists For Its Own Exclusive Benefit":

"...Central banks (especially the Federal Reserve) have created trillions of dollars to plug a disastrous hole in the Shadow Banking system. In the process it appears as if they are simply blowing another asset bubble, this time in the Synthetic Banking system, much to their own consternation since this latest bubble has no real connection with the real world..."

Since Keynesians like Krugman and Bernanke don't understand the role of banking and debt (compare and contrast with Steven Keen), they don't understand that the astronomical amounts of bail-out money are bailing out a Shadow banking system and are staying there. So the Fed scratches its pointy heads wondering why money velocity is near zero.

Banks make more money in the Shadows than in the real economy, so the parasites make sure the money stays in the Shadows and feed them.

"More please Ben. We're ever so hungry. Heh heh."

takinthehighway's picture

Completely on topic, Jethro Tull has a new album out. Among the many tracks is "Banker Bets, Banker Wins"

and my personal favourite, "A Change Of Horses"

YHC-FTSE's picture

Haven't posted on a GW article for awhile because they usually upset me. Not because I disagree (very rarely) with GW, but because of the feeling of futility in agreement.  Keep up the good work mate. You deserve my thanks and plaudits. 

You might ask yourself why the central banks of these particular four currency nations feel they can get away with such unprecedented, lunatic measures. I think the answer lies with the fact that they are the countries which make up the SDR, the illiquid currency of the IMF which forces the other 187 member states to buy the currencies of these four nations just to stay in the IMF. It may only represent ~4% of the global foreign exchange reserve assets (And increasing), but the prestiege and the power it affords the four currencies of the SDR may make them claim value where there is none to create money to satisfy the insatiable appetites of their insolvent banks. In the end, prestiege and fake value is all these currencies possess, and when people realise just how much fiat currency is really worth, a correction is bound to follow, whether it is incrementally slow or massive it really does not matter. In just 3 short years, many commodities are now double the price. You would have to be a very stupid frog indeed not to notice the bubbles boiling around you. 

OpenThePodBayDoorHAL's picture

Reggie says all the printing hasn't worked, but I think it has. Otherwise we'd all be doing this to each other by now:

puck's picture

Great Article

How is that we are the only ones who know how to read? I mean this this crap from the ruling class is plain as day.

By the way who is ruling you today? The last time I looked around we still knew who the bad guy was. Last time I read about the judicial sytem I knew we were skrewed.

so shall we all remain seprate till that day we all maybe one. Freedom for me. See ya on the other side.

Normalcy Bias's picture

Now, I almost feel bad for being critical of NASA for spending $500 Million per Space Shuttle launch to study newts fv¢king in weightlessness. It all seems so quaint now...

mick_richfield's picture

You're nuts.

He never went up there, he was in Congress at the time.

And even if he did -- he never -- I mean, they never would have let him --

Oh, god, I think I'm going to be sick.

tony bonn's picture

god bless you george.....this article was fantastic and i believe without flaw....

blindman's picture

Tuesday, May 1, 2012
Your Tax Dollars At War
liver failure, blood transfusion doesn't work. also doesn't
work if the disease is acute antisocial psychopathy type
insanity. and sometimes the patient, should he recover, needs to
be guarded by law enforcement types until such time as he can be
arrested, charged and tried for his crimes and then sentenced.
but the analogy is misleading. what is going on today is not
an attempt to cure the economy. the body. it is an attempt to
destroy the body, host, to the benefit of the parasite so that
it can survive the period between hosts. (the nature of modern
finance in the fiat realm).
the reason war economies always fail is that they engender tremendous
amounts of self loathing and rightly so,
(there is evidence of this just about everywhere you look)
not to mention unpayable debts
and a general bad reputation leaving no room for good will among your
peers. the profiteers find out too late that they have not only alienated
themselves from their neighbors but also from themselves, by then the
damage is done and all is truly lost. (societal psychopathy).
see 1984, hunger games, the matrix, aliens, avatar, third reich etc... and ....
so take a look in the mirror; there may be the one you are looking for
to fix this mess, there, looking back at you?
thank you for your attention regarding this subject.
keyword: war, debt(not money), homicide, murder, patient, body,
host, prisoner, blood meal, blood money, parasite, federal reserve,
private fiat money lent at interest in a fractional reserve regime.
debt saturation. pine box.
conclusion: excellent summary mr. washington but beyond the printing
and the transfusion the substance is no longer blood, it is tainted
and poisonous. the shelf life has been violated, the vampires are
drinking the blood and transfusing their urine into the blood stream of the

streetcrawler's picture

ZH should make an overlay with the increase in money supply vs the increase in yacht purchases. Parabolic?