200 Years Of Escalating Policy Mistakes

Tyler Durden's picture

"Central Bankers and policymakers can’t stop themselves from interfering." To be fair on them (unusual in his case), SocGen's Albert Edwards admits the pressure to do something in the face of “bad” economic news is overwhelming. The general public or more inconveniently, the electorate, clamor for action from policymakers to counter any economic pain. Any ‘Austrian School’-type suggestion that it is best to let the cycle play out is derided as heartless and defeatist. Something can and must always be done. Whether intervention makes things worse in the medium to long run is an inconvenience that can be ignored until later. We feel Edwards pain as he "sheds tears of despair as [he] was reminded of the blundering incompetence of our overconfident policymakers, whose interventions, despite their best intentions, seem to bring about financial crises with increasing rather than decreasing regularity."



Source: SocGen

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
economics9698's picture

Printing money is more addictive than cocaine.  And the monkeys love that cocaine. 

mightycluck's picture

Underlying economy stinks and is artificially bubbled by Fed. This economist shows the real underlying malaise.


Buck Johnson's picture

Bingo, bingo.  When it won't inflate anymore, our economy will implode.

All Risk No Reward's picture

The Fed isn't intervening, the Fed is promoting the private interests of those who control it.

First they leverag eup and criminally blow the world's largest credit bubble as credit is taken exponential to GDP.

When that game ended in 2007/2008, they then embarked on the world's largest "in your face" monetary looting and debt offloading the world has ever seen.  By orders of magnitude.  They used globalism to extend their looting across the planet and they used Debt Money Tyranny to literally loot from the future.  This is still the main game, but it won't last forever.

The third step, once the maximimum amount of debt has been offloaded on the chumptocracy and once the trillions in cash (and debt offloaded to society) is looted from the chumptocracy, they will RESTRICT the money supply, bust the debtors and turn their trillions in debt instruments into your communities hard assets and buy up whatever is left over with the trillions they looted from you.

Your society will be completely bankrupt and you'll have to get on your knees and bow down to the neo-feudal lords who enslaved you with their illuminated knowledge of...  5th grade math.  Debt Money Tyranny revolves around 5th grade math.  I couldn't make this up.

Then, once you are stripped of any mirage of freedom and groveling at the feet of the criminals who enslaved you, they will hypperinflate and balance their books, proclaiming your poverty was due to "capitalism failing" or an "arrogant academic" that didn't know better.

Don't be a Muppet.  Almost every article writer on ZH is either a Muppet themselves or presumes you, the reader is a Muppet.  If you don't see why these writers are Muppets, you have some Muppet in you - even if you get that the MSM narrative is false.

This is Art of War.  This is Art of War.  This is Art of War.

It is a criminal operation being operated by a bunch of black letter law criminals.

Debt Money Tyranny


The "inflation or deflation" narrative is a false dichotomy.

You've seen massive inflation already.  Then you saw some deflation.  Now you are seeing inflation.  The system is stretched near the limit.  You will see more of the same until they contract credit to bust society.  They may do this in waves.  Inflate (rob you, offload their debt onto you, real economy is crushed). deflate to asset strip you, wash, rinse repeat.

The end game is almost assuredly inflation, but that will be a book balancing adjustment, not a bailout of debtors that have already been systematically busted and their assets conveyed to the criminals running this financial Art of War.

The contradictions to the "stariaght to hyperinflation" narrative are as follows:

1. The mega banksters control the volume of credit money...  the mega bank OWNERS control trillions in cash and trillions in debt instruments and they are TOO BIG TO FAIL, COMPLETELY IMMUNE TO AN ECONOMIC COLLAPSE THEY ENGINEER.  A basic cost / benefit analysis reveals they wouldn't destroy their monetary wealth.

2. The mega banks are lending money at 3% for 30 years.  It makes NO SENSE for the people who control the money supply to lend out 30 year money at 3%.  I've literally listened to 1,000s of hours of podcasts by hyperinflation promoters and they never address this.  Do they not know it?  My guess is they are too dogmatic to even formulate the obvious contradiction.

3. Big Finance Capital  is not requiring a premium to hold their money ahead of this hyperinflation they are going to engineer.

These facts confound the straight to hyperinflationistas.  They don't understand the Art of War that is being waged on them.

For those people who think deflation is a good thing, understand that there are about 100 claims for 1 real asset of value.  That means up to 99% of paper wealth will get wiped out.  The reasons prices will be lower is because money is very scarce for a time.  Well, unless you are a Debt Money Tyrant, you will have trillions to spend on a bankrupt society.

Duck and cover.


economics9698's picture

Uh, dude most of us wrote the book on banking and the rip off.  Often we say "fuck you Bernanke" and "criminal organization" to refer to the Fed.

This is ZH not facebook dude.

All Risk No Reward's picture

All the people who think Bernanke is an "out of touch academic" are Muppets - and there are plenty on ZH.  Perhaps most ZH's have fallen for that false narrative.

They are criminals.  Cold blooded, nation destroying criminals - and they know exactly what they are doing and it was engineered as a fraud from the gettyup.

Debt Money Tyranny


F* Bernanke is child's play.

Show me a post where his crimes are explained in detail. 

It isn't easy, is it.  That's the response that means something, not some empty emotional slogan.

This is real - and yeah, I'm freaked out as they are trying to banguns ahead of their engineered economic collapse.

bobthehorse's picture

I've got your printed money.

I've got it hanging between your legs.



michigan independant's picture

http://www.bill-wink.com/FABIANS.htm Imagine the monkeys following the letter today.

Racer's picture

They don't get rid of the criminal and fraudulent rewards for banksters that's why

bank guy in Brussels's picture

Instead of 'grey bars' on the graph above

Should be 'grey bars' on jail cells of big-time financial criminals

As in the picturesque American phrase the 'graybar motel'

Poor Grogman's picture

Be your own central bank

Keep some of your assets in " traditional" currencies.

Make your own policy decisions.

itstippy's picture

Well put, Poor Grogman.

Edwards' point is that the voting populace screams for Government action when things don't go according to Plan A.  Plan A is based on a high-growth good times economic environment.  It's a best case scenario.

Plan A for millions of American middle-class citizens was to lever up on extravagant primary housing, put 5% of their pre-tax earnings into 401K stock-based mutual funds, and encourage the kids to borrow whatever it takes to get a college degree.  Plan A was supposed to make one wealthy over time thanks to the wonder of compounding interest and 8%-10% annual returns.  Follow Plan A for 30 years and then retire to join the leisure class.

Plan A isn't working, and folks have no Plan B.  They clamor for Hope And Change.  So the Government acts and produces temporary relief at the cost of future prosperity.

The majority of the citizens borrowed too damned much money from the Banksters and speculated with it in real estate and education.  They trusted the Banksters with their entire life's savings to safeguard.  They trusted the Government to provide SS income and Medical coverage for them in their old age, even though it was obviously an unsustainable model.

Plan A has failed, so the Government prints and stimulates in a desperate attempt to bring back the good times.  It's what the majority of citizens demand they do.   ZH readers are NOT the majority of the voting public. 

Obama4Ever's picture

"Plan A isn't working, and folks have no Plan B."

I take exception to you using the word, "folks". That's my word. Only I may use it.

All Risk No Reward's picture

Plan A is working perfectly.

The establsihment power structure is ossified, the chumptocracy is losing even the illusion of liberties and the chumptocracy has no idea this is a pre-planned Art of War operation to designed to destroy and/or enslave the chumptocracy.

Wake Up!

Debt Money Tyranny


asteroids's picture

Idiot economists ignore basic physics that drive the rest of the universe. What morons.

falak pema's picture

its not the economists its the oligarchs; the economists are the king's buffoons and wizards ; Mr fix it/explain it when its too late.

Two hundred years of capitalism since the last OLD king died : Napoleon. Last of the gunpowder empires. 

The FED Does what its told to DO by its TBTF Oligarch shareholders; never forget who pulls the strings like TARP etc. in 2008.

All Risk No Reward's picture

Thank you...  there aren't enough people who "get it" so it is nice to run across someone who has the paradigm right.

Debt Money Tyranny


Speaking of Napolean...

“When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.”
? Napoleon Bonaparte

NidStyles's picture

They are not economists, and honestly I would prefer it if you would quit insulting us economists with comparing those faith peddlers and rent-seekers with us.

Bunga Bunga's picture

If they marked the year 1913 on the chart, it would make things very clear.

booboo's picture

see, gearing up for war, bombing the shit out of the productive capacity of the ROW leaving the US the unimpeded manufacturing monster in the 50's and 60's worked like a charm. This next time it may be Krugmans ass getting blown out of his window though so it probably won't work for the plebes but to be an oligarch it will be grand.

Obama4Ever's picture

I put that graph through my android's bar code reader. It says, "YOU'RE FUCKED".

Marco's picture

The problem with Austrians is that they never take into account that the populace can chose to say "fuck that" even if government initially doesn't ... austerity is all fine and well, but if it leads to a populist revolution it will just mean government intervention in the end any way.

Totentänzerlied's picture

Odd, because some Austrians were instrumental in development of the theory of bounded rationality.

Totentänzerlied's picture

The economyth cultists know something the Austrians don't: the public likes it when people in power do something, even if it's something totally idiotic, pointless, and destructive.

All Risk No Reward's picture

Don't be a rube...  when the same criminal cartel ossifies its power and operates above any and all law while it guts the liberties and clamps down on everyone else...  that is anything but "totally idiotic, pointless, and destructive."


This is a criminal operation.  We have to man up and face the truth.

Debt Money Tyranny - America and the world slayed by 5th grade math


Grand Supercycle's picture

DOW monthly chart shows impending Wile E. Coyote drop.

It doesn't take a genius to realise this chart will end in tears.

Longs please be careful.