Polish Central Bank Head Refuses To Resign Over Tape Scandal As It Would Set "Dangerous Precedent"

Tyler Durden's picture

Two weeks ago, we reported of the latest "explosive" central bank scandal to sweep yet another "developed world" country, Poland, whose central banker, Marek Belka, was recorded promising to "boost the economy" if the finance minister was fired, not only making an immediate mockery of any naive assumptions about central bank "independence", but showcasing that in the New Normal it is central banks (and by extension, the private banking system) who dictate terms and conditions to democratically-elected governments.

To be sure, as Reuters reported at the time, Belka denied he had done anything serious, which as we summarized, "the central bank after all is the supreme governing institution in the New Normal, a world which is run not by government but by banks. As such, it only makes sense that the unelected central bankers are convinced they are above everyone, and certainly the law."

The central bank's denials continued, by suggesting that the tape, was "manipulated to try to present the remarks as exceeding the powers of the bank's governor, "which never happened."

Our explainer:

"Of course not, but not for the bullshit reason given: simply, the power of the bank's governor has no limits: after all they are the source of all the prosperity and wealth effect, without them government would crash and burn: they are above the law) and thus can not be exceeded."

The one key phrase that repeats above seems to be "above the law."

And sure enough, earlier today, the Polish central banker promptly admitted as much, when he revealed that not only do economic central planners exist in some parallel universe in which logic and laws do not exist, but that in the prevailing universe, they are all essentially untouchable when it comes to being held accountable for their actions. Headlines from Bloomberg:

  • BELKA `REJECTS' NOTION TAPED COMMENTS SHOW HIM CUTTING ANY DEAL

Which they clearly do.

  • BELKA SAYS POLISH CENTRAL BANK ISN'T COZY WITH GOVT

Which it clearly is for him to offer more stimulus on a quid pro quo basis.

  • BELKA REITERATES HE DOESN'T PLAN TO RESIGN

Because, well... see "above the law" above. And last but not least.

  • BELKA: RESIGNATION FROM C.BANK WOULD CREATE DANGEROUS PRECEDENT

The precedent being that central bankers also have to be held accountable to their endless lies and are subject to the same laws and regulations as the rest of the mere mortals.