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Are All Central Bankers Idiots?

Tyler Durden's picture




 

Submitted by Bill Bonner via Bonner & Partners,

Yes, there’s no point in hiding it. We would like to see a depression. Short, swift, and decisive – a quick and sharp end to the biggest credit expansion in all of history.

As secretary of the Treasury Andrew Mellon said after the 1929 stock market crash:

Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate. It will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up the wrecks from less competent people.

Credit Cannot Increase Forever

“It’s unbelievable,” said colleague Merryn Somerset Webb. Merryn is the editor of MoneyWeek magazine in London. “London property prices just keep going up and up. It’s so expensive our writers can’t afford to live here anymore. I’m thinking of moving the business to Edinburgh.”

You can’t build a solid economy on the jelly of unaffordable housing, unpayable debts, and unsustainable asset prices. But that’s what we’ve got. The only way to get down to something more reliable… more real… and healthier… is to wash away the financial glop and goo that has accumulated during the last 30 years.

One way or another, the credit expansion that began after War World II must come to an end. About that we have no doubt. Contrary to the evidence of the last half-century, credit cannot increase faster than income forever. It is mathematically, economically, and financially impossible.

But when will it stop? “The trouble with you guys,” says a loyal reader (or words to this effect), “is that you are generally right… but you are always early.” Early? Certainly. In the case of the credit bubble, we were nearly 40 years ahead of the curve. We saw the handwriting on the wall back in the 1970s! We thought it said, “The End Is Nigh for the Paper Money System.” After all, no paper money ever lasted for very long.

Not All Central Bankers Are Idiots…

But we misread the graffiti… We don’t know where “nigh” is, but we’re pretty sure the end wasn’t close to it. Because, here we are four decades later, and the paper money system is still going strong.

And guess what? We are still sure that it is headed for a debacle.

But when? “It could take another two or three decades.” That was the answer we got from a top central banker. We had the rare treat of dining with one last night. We’ll keep his identity to ourselves, to protect his job and the reputation of the central bank. But he was a breath of fresh air. And a relief. Now, we can say with confidence: Not all central bankers are idiots.

Here’s what he told us:

It is doomed, of course. But not necessarily soon. As long as the major tendency of the economy is toward deflation, central banks can print money without causing consumer price inflation. They can buy bonds and keep buying them.

 

When they buy bonds, they tend to lower interest rates. They also finance government deficits. And, from Japan’s example, it looks as though they can do it almost indefinitely.

That’s right: They can keep this gig going… until they can’t. When it ends is anybody’s guess. It is in the future, where no man goeth with GPS or map in hand…

Who Wants a Depression?

And we goeth there only in hopes of discovering a depression. Everyone else hopes to discover many more years of asset price inflation, boom, bubble, and central bank management. This distinction is an important one. At least WE think so.

Everyone in government, industry, commerce, and academia has an unspoken prejudice for the bubble. Wall Street wants to sell you stocks and bonds. Industry and commerce have products to unload… not to mention mergers and acquisitions to finance. And governments all over the planet are running deficits and counting on low interest rates to pay for their zombie wars and crony programs.

Who speaks for the future? Who stands up for a healthy, sane, and real economy? Who champions the cause of the little guy… the small investor… the small businessman… the ordinary working stiff?

Who wants a depression?

 

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Sat, 05/30/2015 - 13:55 | 6147075 unrulian
unrulian's picture

Yes

Sat, 05/30/2015 - 13:59 | 6147085 keremetski
keremetski's picture

wash away goo... and shit out bankers. All of them.

Sat, 05/30/2015 - 14:05 | 6147093 strannick
strannick's picture

Academic, ivory tower, useful idiots.

Sat, 05/30/2015 - 14:09 | 6147098 Silver Bul
Silver Bul's picture

The system will have to completely implode for us to get back to a sound system, though it could just as easily go the other way. The Keynesian central bankers will never admit that they were wrong. They will exhaust every tool at their disposal before that point. They could never admit they were wrong , for that would mean that their entire life’s work was a farce (which it is). If they were to accept this the emotional blow would be devastating, to their mind will come up with excuses as to why it ‘wasn’t their policies’ that caused the crash as a defense mechanism.

Sat, 05/30/2015 - 14:14 | 6147114 Calmyourself
Calmyourself's picture

Whether it is an ego issue for them or not, the more important issue is that this financial glop has allowed cultural sickness to manifest.  This sickness in most aspects of our culture will need to be washed away as well, that includes welfare of almost all forms starting with corporate.  This transition will give psychopaths of all stripes opportunities to prey on the weak.  Fractional reserve banking must be eliminated and criminalized.  Local control must prevail against centralization of any type.

Sat, 05/30/2015 - 15:32 | 6147279 Anusocracy
Anusocracy's picture

The nature of government is that of a parasite, a large parasite.

Pity that which it afflicts.

Sat, 05/30/2015 - 16:48 | 6147469 FinalEvent
FinalEvent's picture

Not idiots, criminals.

Sat, 05/30/2015 - 17:29 | 6147563 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

Mesomorphs are criminals with below average intelligence, and that, my friends, is exactly what Central Bankers are. [reference Lombroso]

Sat, 05/30/2015 - 21:13 | 6148006 MonetaryApostate
MonetaryApostate's picture

No, just the Americans who allow them to continue to exploit the shit out of them, their families, & their country...  (I won't even bother talking about traitors on the hill)

Sat, 05/30/2015 - 14:17 | 6147118 OC Sure
OC Sure's picture

 

 

The system does not have to implode. 

See Article V of the Constitution as explained very well here:

http://www.conventionofstates.com/

...top of the agenda could be the Individual Rights amendment. 

 

Sat, 05/30/2015 - 14:29 | 6147142 CH1
CH1's picture

Let it go, my friend. If the constitution still mattered, most of this insanity wouldn't be happening.

It's over. Stop obeying and start building.

Sat, 05/30/2015 - 19:25 | 6147796 OC Sure
OC Sure's picture

 

Thanks, CH1, but "over" means blood-letting is a certainty in the very near term. I see the principles in place that make the blood-letting certain but I don't see that the timing is necessarily imminent.

Therefore, the principles guiding this course of events can still be smashed before the smashing of skulls has to go hyperbolic.  

 

Next, how would you go about building? Build what? A new constitution? a better one? Whatever rises from the ashes (presuming it all burns to hell) will likewise emerge with some sort of written agreement outlining the conduct of those doing the agreeing (and those otherwise bound to the same agreements)....But it doesn't have to go that far. The best thing going for any consent to be governed is always going to be the moral principle of Individual Rights.

A rebuilding not based on an individual's right of way will only meet the same demise as its predecessors...

Sat, 05/30/2015 - 15:10 | 6147212 InsanityIsWinning
InsanityIsWinning's picture

Well put Silver Bul. . . I was saying pretty much the same words to a neighbor. His response was that my Economics degree that I earned back in the early 80's was obsolete and that things have changed and are different now. . . that really made me think. Why couldn't the central banks of the major economies buy all the outstanding debt issued by their treasury (like BOJ) and the secondary markets then just forgive the debt and take it off their books. What market would hold them accountable? And if that's the case, why do we pay taxes or have budgets and to what consequence?  No other country would have the liquidity to absorb a flight to safety so maybe there would not be one.  Gold should catch a serious bid but it should have already . . . maybe my neighbor is right.  

Sat, 05/30/2015 - 15:13 | 6147229 Marco
Marco's picture

It's not inherently unstable to fund a government largely with printed fiat (there is no real escaping to gold, business still have to trade in fiat, you still have to pay your taxes in fiat, including capital gains tax on the gold when you spend it). There's just a lot of moral hazard.

Sat, 05/30/2015 - 16:06 | 6147352 Silver Bul
Silver Bul's picture

InsanityIsWinning  Outright debt monetization?  I would say the currency markets would hold them accountable, don't you think?   So the fed created 4 trillion or so which was enough to take us from the depths of the financial crisis and return pretty much all markets to all time highs.  They keep the pretense of being able to use their "monetary incinerator" by holding on to those assets.  To do what you are asking they would have to put 18 trillion into the economy and if they forgive it, as you are suggesting, they would lose their incinerator.  I'm not saying hyperinflation is coming, but I think your suggestion would pull it off pretty easily.  This piece explains it well.  It's a long read, about 3 hrs, but its worth it, and discusses debt monetization as well as why the central banks can't pull it off in depth. 

Sat, 05/30/2015 - 20:07 | 6147886 InsanityIsWinning
InsanityIsWinning's picture

Like it or not that is where we are . . . the fed holds debt that they will never sell, treasury issues interest to Fed, Fed credit back interest to treasury. . . wash rinse, repeat.   Point being is their really isn't a currency 'market' only a central bank managed system.  Where do you run to when all major central banks are doing the same.  So, sell the dollar and buy what? The Yen? the euro? all doing the same. Totally uncharted territory and sounds insane therefore it must end horribly bad . . . or does it? This turns economics upside down . . . beyond my pay grade . . . my head hurts 

Sat, 05/30/2015 - 15:53 | 6147337 Hype Alert
Hype Alert's picture

Most likely.  Recessions are the controlled burn that prevents disastrous fires.  The Fed has done their best to preserve the fuel of the next depression so that when it burns, it will take everything with it.

Sat, 05/30/2015 - 14:06 | 6147096 knukles
knukles's picture

Well depends on how ya look at it.
Idiots from the stand point of screwing the people, so the people think they're bad bad evil fuckers.
From their own stand point, they makes a LOT of Cha-Ching
From their Boss's stand point, they're great getting after life Big Cha-Ching jobs... unless they try to Rat Bastard Out the System, then they get a Nail Gun.

Come si Come sa   ....  

Sometimes ya win, sometimes ya get caught in the meat probe room at the sub-53rd level of Dulce Base as a Reptilian Boy Toy

Sat, 05/30/2015 - 14:18 | 6147102 Ham-bone
Ham-bone's picture

Kind of disagree...the primary problem is a system that requires eternal growth...but one of the biggest components (core populations and soon populations of nearly all advanced nations) have stopped growing.  That means the other components nearly all controlled by the Fed and CB's are going crazy to make up for the missing population growth (cheaper credit, more avaialable credit, longer duration credit).

Demographic details in the link are really clearly what ails us...

http://econimica.blogspot.com/2015/05/2008-was-tremorwhy-main-event-is-still.html

With replacement population rates falling well into negative replacement (US is now 1.86 when 2.1 is flat) and 25-54yr old populations already having peaked...with declining populations the matrix of real estate on credit is broken...fewer people with too many houses means RE is no longer an investment but back to Maslows needs and no more...just a cost center.  What does that mean for banks and Freddy /  Fanny with trillions of mortgage debt???  We need to entirely rethink this thing based on peaking populations...

Sat, 05/30/2015 - 14:24 | 6147131 Son of Loki
Son of Loki's picture

Brilliant 'idiots' since they grabbed the biggest bonuses in history the last 8 years.

Sat, 05/30/2015 - 14:49 | 6147169 Silver Bul
Silver Bul's picture

The peaking population is a good thing considering the limits of a physical world.  The trick is shifting from a debt based monetary system that requires growth to one that doesn't.  Frankly a precious metals based system would be perfect.  Unfortunately the only way we can get there is for this system to collapse.  There are just to many that are invested in this system staying afloat.  The biggest of which is the baby boomers, they are the ones who own the debt for their retirement and they don't want to be the ones holding the bag when it defaults.  Unfortunately for them that's not going to happen.

 

The other unfortunate point is they seem to be setting up the worst monetary shift considering both your demographics issue and the limitations of our natural resources, banning cash and implementing negative interest rates, this will cause the bubbles and debt to only get more out of control. 

Sat, 05/30/2015 - 14:14 | 6147115 davidalan1
davidalan1's picture

you forgot the "glop"

Sat, 05/30/2015 - 17:48 | 6147603 msmith9962
msmith9962's picture

Half are stupid.  Half are unethical.  All are greedy.

Sat, 05/30/2015 - 14:33 | 6147150 Veriton
Veriton's picture

No, central bankers are not idiots. They are simply pursuing an agenda that is different from the textbook agenda the public are programmed to believe they pursue.

In the current time, they are deliberately harvesting wealth and crashing the old dollar-based system in order to transition to their new SDR-based system. And to get over the bad image the UN/IMF have developed while building the New World Order, they are setting up their BRICS minions to force "governance reform" so it will appear that the globalist complex is under new management. The right hand takes over from the left hand, but both hands are attached to the same Cabal. Welcome to the scam.

Sat, 05/30/2015 - 20:37 | 6147942 cornflakesdisease
cornflakesdisease's picture

There will be no new sdr system.

Sat, 05/30/2015 - 22:13 | 6148167 The King
The King's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.jobs-review.com

Sat, 05/30/2015 - 13:55 | 6147076 This is it
This is it's picture

I need a bonner too.

 

But sadly (or gladly), I had to blow up that fat chick date of mine. It's no way that's gonna work at all.

Sat, 05/30/2015 - 14:01 | 6147089 B2u
B2u's picture

"I need a bonner too."    Bonner or boner?  Just look pictures of Hillary with Chelsea...

Sat, 05/30/2015 - 14:13 | 6147110 VegasBob
VegasBob's picture

Not even with a double dose of Viagra...

Sat, 05/30/2015 - 15:33 | 6147281 rejected
rejected's picture

A triple dog dare? lol

Sat, 05/30/2015 - 15:37 | 6147291 rejected
rejected's picture

Hillary has that possesed demonic look.... Next POTUS... Sure hope not. 

Sat, 05/30/2015 - 15:48 | 6147327 wendigo
wendigo's picture

I tried to tell you, fat chicks are the best in bed. 

Sat, 05/30/2015 - 13:58 | 6147081 chunga
chunga's picture

Meanwhile, your central banker dining buddy who knows it's wrong is gonna keep right on pumping.

Sat, 05/30/2015 - 14:00 | 6147088 Dr. Bonzo
Dr. Bonzo's picture

“The trouble with you guys.... is that you are generally right… but you are always early.”

My sentiments exactly.

Sat, 05/30/2015 - 14:04 | 6147092 VWAndy
VWAndy's picture

They are not idiots. They are liers and thievs.

Sat, 05/30/2015 - 14:05 | 6147095 OC Sure
OC Sure's picture

"Are all Central Bankers idiots?"

Not a one. See for yourself. Here they are doing what they do best, intelligently:

http://www.ijcb.org/

 

Hmmm...now, who are the idiots?

Sat, 05/30/2015 - 14:10 | 6147101 Consuelo
Consuelo's picture

That famous photo caption along with Mr. Bonner's sentiments indicates perhaps, that while his desires for a 'depression' may be well intended, his mental construct of such an event is solidly anchored in the 'nostalgia' of a time when people had manners and respected life & property...   That, or he's simply delusional.   Then again, living in France, well...

A 'depression' along the lines of what the U.S. experienced in the 1930's would for all intents & purposes, implode the United States and the nation would rapidly descend into an Authoritarian dystopia of Epic proportions.   Hey wait a minute...    In any case - yes, we're likely headed for an outcome like that, but to 'wish' for it...?

 

 

Sat, 05/30/2015 - 14:50 | 6147171 daveO
daveO's picture

If the dollar craters, the Fed. gov. will implode, too. The Feds won't be able to support their police state. The states are already preparing for it by creating legal tender laws. We are most likely already at peak police state(see Patriot Act), peak welfare/Affirmative Action Negro(see BHO), and peak queer(see marriage laws being rammed down everyone's throats by a corrupt judiciary) to name a few. Even peak warfare budget(unless they can fool the people into another war);

http://www.washingtonpost.com/blogs/ezra-klein/files/2012/08/csbachartmo...

All supported by peak debt, which has doubled since the dark puppet was installed. 

http://en.wikipedia.org/wiki/History_of_the_United_States_public_debt

Sat, 05/30/2015 - 14:13 | 6147109 Keynesians say ...
Keynesians say the darndest things's picture

They debt slaved some folks

Considering most of the world and def. 99% of Americans, all they care about is money, you'd say theyre doing a good job of keeping the sheeple mesmerized and in a pitiful stupor. So in that light I'd figure theyre not really idiots. More like parasites maybe

Sat, 05/30/2015 - 14:18 | 6147121 kchrisc
kchrisc's picture

"Are All Central Bankers Idiots?"

No. They are very intelligent psychopathic thieves, who, while not pulling the trigger themselves, are just as much about killing the innocent for a dollar as a street thug is.

Liberty is a demand. Tyranny is submission..

 

With a little investigation, one will come to appreciate that Eric Garner was killed to maintain the banksters' usury.

Sat, 05/30/2015 - 14:25 | 6147132 tarabel
tarabel's picture

 

 

Apres moi, le deluge.

Wealthy people are generally good about being fully insured against risk.

Are they doubling up on their life insurance policies and buying annuities?

No.

Then what sort of insurance are they buying and what does this tell you about what they expect future risk events to be?

They are buying non-financial assets hand over fist.

Long ago, I stopped being a financial capitalist and started becoming an equipment capitalist.

Sat, 05/30/2015 - 14:46 | 6147172 Niall Of The Ni...
Niall Of The Nine Hostages's picture

Are they indeed? If you're truly wealthy, and can pay for a bug-out in Singapore or Tel Aviv out of petty cash, how much of your portfolio do you really need in foreign real estate to insure against revolution? Five percent?

Sat, 05/30/2015 - 14:53 | 6147185 chunga
chunga's picture

Yup, like Mellon suggests in the quote that everybody needs to be liquidated.

He meant everybody but him. That's great lip-service while people like him buy things like gold hand over fist while, at the same time suppressing the price. Enough to set himself up along with a couple generations of his own family after evrybody else gets liquidated. Rinse/repeat.

Sat, 05/30/2015 - 14:26 | 6147133 Yen Cross
Yen Cross's picture

    Based on the comment below.

 

Here’s what he told us:

It is doomed, of course. But not necessarily soon. As long as the major tendency of the economy is toward deflation, central banks can print money without causing consumer price inflation. They can buy bonds and keep buying them.

    Yes, all central bankers are fucking mental midgets. I guess the idiot doesn't eat, sleep, drive, have a college degree, or any insurance.

Sat, 05/30/2015 - 15:03 | 6147209 Oscar Mayer
Oscar Mayer's picture

Central banks don't "print money", they generate 'credit' denominated in money.

 

The only ones who benefit from the conflation of money and credit are the issuers of credit with no money.

All money is currency but not all currency is money

Sat, 05/30/2015 - 14:32 | 6147148 Bobbo
Bobbo's picture

Idiots?  Maybe.

Criminal?  Yes.

Hired by the owners for their ability to deliver incomprehensible public spin on what the owners decided to do with their monies.

Just doing their job?  Yes, but without conscience.  The sort of thing prosecuted at Nuremberg for similar unconscionable acts.

imho

Sat, 05/30/2015 - 14:36 | 6147154 Niall Of The Ni...
Niall Of The Nine Hostages's picture

A short, sharp depression? Dream on.

The banksters pulled the plug on their Soviet experiment in central planning in 1991, after which Russia was reduced to a debt-ridden basket-case. Only under Vladimir Putin did any real recovery begin, and even he hasn't managed to undo all the damage done by 70 years of socialism. Enough to make the banksters afraid of him, maybe, but nowhere near the southern European living standard Russia would have had decades ago if she hadn't been the banksters' favoured guinea pig.

When the bubble bursts, it'll be because the big guys are ready to cash out and leave town, leaving the proles with nothing but misery to look forward to for the next decade, if they're lucky.

Sat, 05/30/2015 - 15:13 | 6147233 daveO
daveO's picture

70 years of Communism bred out the smarter people and replaced them with sheep. I think they could have bounced back faster if not for the fact that their population was chock full of mental cripples. The same thing has been occurring in the US since JFK was murdered and the warfare/welfare state (just another name for Communism, imo) was firmly established under LBJ. We are now the ones under Communism-lite, where the gov. subsidizes life long deadbeats at the expense of tax slaves. When the reset hits, don't waste an oz. of sympathy on the Fed-created inner city hell holes, like Baltimore. 

Sun, 05/31/2015 - 11:10 | 6149137 Martian Moon
Martian Moon's picture

Bankers have deformed the population itself, education, medicine, culture ... on and on

The damages are massive and everywhere, and will take generations to reverse, if ever

Society today is but a shadow of what it could have been

Sat, 05/30/2015 - 14:54 | 6147190 blindman
blindman's picture

yes, idiot savants.
the savant part don't
eliminate the idiot part.

Sat, 05/30/2015 - 15:06 | 6147214 hooligan2009
hooligan2009's picture

working people get tired, they cant keep working harder and harder... no matter how much cash you let them borrow or at any interest rate.

robots will replace people employed in all service sector jobs..all of them...central bankers included... after all why do you need humans to run a monetary policy that, at best, can only smoothe the path to full scale UNemployment andfood produced for free (well until the ground soil is turned into a CA desert anyway).

in the current ecosystem, falling prices are here to stay, simply because the amount of crap produced over the last forty years is part of the second hand economy that doubles every five years... we are heading either for barter town if we are mobile or the matrix if sedentary... new goods accomplish not much more than excited misery..so we need to restructure the economic factors towards either removing the cellulite from couch pottatoes or buy more i-phones that plug you in to worthless networking with other brain dead morons.

the alternative is reducing regulations, government sponsored couch potato or matrix creation and getting back to something else without a banking and insurance sector

just saying...

Sat, 05/30/2015 - 15:27 | 6147265 rejected
rejected's picture

I can't wait to see how many loans the robots will take out once humans are obsolete.

Sat, 05/30/2015 - 15:15 | 6147222 Cycle
Cycle's picture

The premise of the title reminds me of the rubric: "If you ask the wrong question, you will get the wrong answer."  Central bankers are paid scumsucking sycophants for the Hampton banksters. They are paid by them, they enter the Fed or Treasury from the bankster hideouts in NY, and when they finish they return to the bankster hideouts in NY or London.  They know exactly what they are doing and why their salary depends on it. The only idiots in the game are the ones who deny capitalism: "Too big to fail."  Unfortunately it includes a large proportion of the current completely uniformed electorate.

Sat, 05/30/2015 - 18:59 | 6147737 blindman
blindman's picture

it goes way beyond ny and the hamptons.
way back to the old world, my friend.

Sat, 05/30/2015 - 15:17 | 6147240 Consuelo
Consuelo's picture

As to the issue of 'not any time soon' - or not...   Even as early as 20 years ago, the changes on the geopolitical global stage (let alone the ~pace~), could not have been foreseen to the extent taking place right now.   A major geopolitical event at this time could change everything in short order - and it wouldn't even have to be a nuclear exchange.   In short, U.S. hegemony via an over-the-top arrogant foreign policy can and likely will change the economic landscape for the U.S. in a way that is going to leave nearly everyone 'flat-footed' and dumbfounded  - until they go to the fill-up station or the market. 

Sat, 05/30/2015 - 15:26 | 6147264 q99x2
q99x2's picture

Arrest Jamie Dimon and be happy.

Sat, 05/30/2015 - 15:28 | 6147270 yogibear
yogibear's picture

All the banksters think about is making the commisions and the fees now. They care little about the consequences.

If they get in a bind the taxpayers will bail them out.

Sat, 05/30/2015 - 15:42 | 6147307 moneybots
moneybots's picture

"Are All Central Bankers Idiots?"

 

Yes, but that is what governments want.

Sat, 05/30/2015 - 19:00 | 6147739 blindman
blindman's picture

not even close.

Sat, 05/30/2015 - 15:46 | 6147318 moneybots
moneybots's picture

"Who speaks for the future? Who stands up for a healthy, sane, and real economy? Who champions the cause of the little guy… the small investor… the small businessman… the ordinary working stiff?"

 

Hillary says she wants to be the champion of the lilliputians.

Sat, 05/30/2015 - 17:31 | 6147506 exartizo
exartizo's picture

wash away the financial glop and goo = Banksters jumping out of windows.

no can do.

...why do you think the Banksters have been suppressing the normal business cycle these past years since 2008?

perhaps it's because they don't want to lose control of the financial system, and all the money in it... like they did the last time this happened?

And now due to large changes not present in the 1920's and 30's in media, communications, internet and digital technologies, not to mention the ability to "buy" various Congressmen, Senators, Presidents and business leaders without conscience, ethics, and morals, they've been able to *rig* every asset class.

Why do you think that Bernanke (Depression Prevention Specialist #1) came to power? It was to preside over the Bankster idea to "Prevent Another Great Depression"... not because they are so in love with the American People, per se.

If you think the Banksters will ever voluntarily (without a REAL fight) go quietly into the night, and give up their power ever again just to prove that America is a Capitalist Republic That Treats Everyone Equally In Government, By The Constitution and The Laws Of The Land, I've got some Ocean Front Property in Arizona I'm dying to sell you.

Otherwise, I'm not sure what planet you're living on Bill.

Sat, 05/30/2015 - 17:19 | 6147541 Nutflush60
Nutflush60's picture

They are not idiots. They are meeting their true objective. Keep government borrowing costs low so the ultimate implosion is delayed. They are loathsome liars, not idiots. 

Sat, 05/30/2015 - 19:02 | 6147743 blindman
blindman's picture

@o"government borrowing costs low..."
really? not even close to the end
game.

Sat, 05/30/2015 - 17:21 | 6147543 Pancho de Villa
Pancho de Villa's picture

"Idiots"?

 

Just Psychopathic serial killers, no?

Sat, 05/30/2015 - 19:03 | 6147745 blindman
blindman's picture

yes, entrenched and spreading.

Sat, 05/30/2015 - 17:33 | 6147573 Magooo
Magooo's picture

This was put in front of investment banking clients a few years ago - if you think the central banks don't know about this -- and MORE --- then you are the idiot.

 

They are fighting to delay the end of the world:

 

THE PERFECT STORM (see p. 59 onwards)

The economy is a surplus energy equation, not a monetary one, and growth in output (and in the global population) since the Industrial Revolution has resulted from the harnessing of ever-greater quantities of energy. But the critical relationship between energy production and the energy cost of extraction is now deteriorating so rapidly that the economy as we have known it for more than two centuries is beginning to unravel. http://ftalphaville.ft.com/files/2013/01/Perfect-Storm-LR.pdf

Sat, 05/30/2015 - 20:38 | 6147944 cornflakesdisease
cornflakesdisease's picture

Money velocity:

Pre 2008 = 2.16

Post 2008 = 1.46

Sun, 05/31/2015 - 09:58 | 6148975 T-NUTZ
T-NUTZ's picture

"It is doomed, of course. But not necessarily soon. As long as the major tendency of the economy is toward deflation, central banks can print money without causing consumer price inflation. They can buy bonds and keep buying them."

 

This is proof that they are idiots.  They forgot the logical conclusion:  they cannot buy bonds "indefinitely", but only until the peasantry stands at their doorsteps in the night with pitchforks and rope demanding justice.  

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