Guest Post: Bernanke And Draghi Are Dangerous

Tyler Durden's picture


Submitted by Charles Hugh Smith from Of Two Minds

Bernanke And Draghi Are Dangerous

What is being sacrificed to maintain the euro and the E.U./U.S. banking cartel? Everything of value: liberty, democracy and sovereignty.

Today we present the culmination of the previous entries ( Global Crisis: the Convergence of Marx, Orwell and Kafka and Are You Loving Your Servitude Yet?): A brief commentary by longtime correspondent Harun I. on Mario Draghi's market-moving statement: “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.”

Nice, Mr. Draghi, but at what cost? And who will ultimately bear this cost? It is already far beyond the measure of mere money; democracy, truth and sovereignty have all been destroyed to prop up the central bankers' Status Quo. We can presume Mr. Bernanke and the Federal Reserve are in on the propaganda campaign, and so we need to examine the words and promises of these two central bankers, as well as what they have not said.

Is talking about printing money as good as actually printing money? It would seem so. Is promising to "do whatever it takes" as good as actually doing whatever it takes? Once again, it seems so; global markets leaped at the "news" that the financial Status Quo was going to be "saved" yet again.

What if it is beyond saving?

What if the cost in treasure, blood, liberty, sovereignty and truth is not worth the 'saving" of a broken, unsustainable, corrupted, parasitic, predatory system? Do we get to choose, or are we just passengers on the train as the central bankers accelerate toward the chasm ahead?

Here is Harun's commentary:

Words have meaning and people should choose them carefully. Nigel Farage commented that what he saw in the faces of EU officials was "madness". We should not underestimate his assessment.


At some point these individuals have to be viewed as dangerous. If we peer beyond terms such as QE, printing money out of thin air, stimulate, etc, and understand their effect, they begin to appear not so benign.


What if central bank officials came out and said, "We are going to raise your taxes", or "we are going to reduce your purchasing power", or, down to its essential point, "we are going to take money out of your pocket"? We know that there would be an uproar.


So, what did Draghi just say? He said he is willing to destroy the purchasing power of the Euro in order to save it. But let's go deeper than that. These people are willing to see countries rip themselves apart, property destroyed, and most importantly, people dying, to preserve some frivolous ideology called the Euro. If on the other hand this is about maintaining the power of the elite, it is much worse, because if this were the case then we are seeing an attempt at totalitarian rule by what you call the "stateless state".


But of course, the markets cheered. At least that is how it is interpreted. I interpret it as people reacting to prevent the confiscation of their purchasing power by someone they cannot un-elect.


Who elected Draghi and endowed him the authority to tell Europeans that they will suffer and die before the Euro? How much violence is ready to be endured and how many lives is the EU body willing to sacrifice upon the alter of the Euro or any monetary system?


Not one official has declared that they will "do whatever needed" to preserve liberty, democracy and sovereignty. Does this imply the Euro has a higher priority? Does the end of the Euro or the present monetary system mean the sun will stop spinning and all of its planets will be sent hurtling through the cosmos?


The callousness and detachment from reality in an effort to save a nonessential thing makes them dangerous. The more desperate they become the more dangerous they become.


If just one of them would publicly muse aloud that perhaps a mistake has been made, and perhaps a rethink of the structure of the EU is appropriate, I would feel better. But they are willing to confiscate your labor through monetary chicanery, deny liberty, destroy democracy, ignore sovereignty, and even witness violence and death, not just in Europe but in the US as well, to maintain a system that is horribly and irrevocably broken.


Lastly, much is being made over whether the German Constitutional Court will ratify the ESM. The German High Court is wasting its time or willfully participating in a charade. A fund that will be used to bailout the very people who must provide funds to the fund is as ridiculous as this sentence sounds. Mind you that the countries that are suppose to provide funding to the ESM must borrow to do so and then must turn around and borrow from the ESM, effectively borrowing the same non-money twice -- at interest.


(If the money is "borrowed" from the ECB, which has no "money" and then "borrowed" from the ESM, the ESM will not owe a debt to the ECB. Therefore, the sovereign will owe a debt to the ESM and the ECB.)


All that has really been accomplished over the past hundred years is the establishment of elaborate transfer mechanisms, each destroying wealth one order of a magnitude faster than the previous.


I never thought I would witness such collective madness. But the worst part is that it is anything but benign, and, it is only just beginning.

Thank you, Harun. Let's enjoy the central-bank inspired market rally while it lasts. It comes at an unbearable cost that will have to be paid some day, and perhaps not as far in the future as the worshippers of the Federal Reserve believe.

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Fri, 07/27/2012 - 13:00 | 2657172 WALLST8MY8BALL
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Fri, 07/27/2012 - 13:07 | 2657195 Careless Whisper
Careless Whisper's picture

The Careless Whisper Afternoon Chart Watch & Threadjacking

Wells Fargo (WFC) This chart is screaming at me -- SHORT ME

CoinStar (CSTR) Today's train wreck. Could land around 40.

Ford (F) Broke support levels. I don't want to own it.

Research In Motion (RIMM) I guess it could go to zero but with 20% of the float short, it looks more like a candidate for a short squeeze down here. A takeover rumor sends it flying. I'm long above 7.

Silver (SLV) I know it's not the real deal. Trading sideways so it could be forming a good base for a move higher. I'm long unless it breaks down.

Wynn Resorts (WYNN) The chart is bearish. Shorting every rally.




Fri, 07/27/2012 - 13:15 | 2657219 ZerOhead
ZerOhead's picture

Mario Draghi's market-moving statement: “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.

"Whatever it takes..." means if necessary, Mario will step aside to let Bubbles Bernanke once again hit the Ctrl 'P' key for the entire European banking system, transferring half of the tanking global economy to the Federal Reserve.

Fri, 07/27/2012 - 13:16 | 2657234 Careless Whisper
Careless Whisper's picture

It seems like they joined a cult or something.

Fri, 07/27/2012 - 13:21 | 2657237 ZerOhead
ZerOhead's picture

It' s called the Goldman Sachs 'Opus Dei' movement...

Fri, 07/27/2012 - 17:57 | 2658151 engineertheeconomy
engineertheeconomy's picture

As usual the author is missing the point entirely. Point the finger at the puppets, but the entire dishonest system needs to come down, all the way to the ground

Fri, 07/27/2012 - 13:43 | 2657358 rfaze
rfaze's picture

It is a cult and Darghi is the High priest. However he will end up like the rest........Think Jim Jones and David Koresh

Fri, 09/28/2012 - 15:15 | 2839790 Nagelstudio
Nagelstudio's picture

Nice, Mr. Draghi, but at what cost? And who will ultimately bear this cost? It is already far beyond the measure of mere money; democracy, truth and sovereignty have all been destroyed to prop up the central bankers' Status Quo. We can presume Mr. Bernanke and the Federal Reserve are in on the propaganda campaign, and so we need to examine the words and promises of these two central bankers, as well as what they have not said.

Wellness Hamam Düssseldorf | moderne Malerei

Fri, 07/27/2012 - 13:19 | 2657242 MillionDollarBoner_
MillionDollarBoner_'s picture

Mario Draghi's market-moving statement:

Don't know about the market...

More like a bowel movement ;o)

Fri, 07/27/2012 - 13:04 | 2657184 Bazinga
Bazinga's picture

People need to Drag Draghi through the streets


Burn Bernanke at the stake...

Fri, 07/27/2012 - 13:55 | 2657449 Jake88
Jake88's picture

you just added yourself to Obuma's list. you will be imprisoned in the first round once martial law is in place.

Fri, 07/27/2012 - 13:04 | 2657185 slaughterer
slaughterer's picture

Bravo.  This article is as good as Farage.  Keep it up. 

Fri, 07/27/2012 - 13:05 | 2657190 Auburn
Auburn's picture

Maybe the world is coming to an end ..... and with a press conference afterwards!



Fri, 07/27/2012 - 13:22 | 2657249 FRBNYrCROOKS
FRBNYrCROOKS's picture

Can someone, please, tell Al Queda of Timmy's whereabouts? Some Terrorist they turned out to be! Our own gov't is 100 times more dangerous that Al-Queda and the Taliban combined. We should kick Manhatten out of the Union and lay siege to the other eleven franchises of the NYFRB!

Fri, 07/27/2012 - 13:07 | 2657196 same old story
same old story's picture

I don't think the CP give a rats ass.  They will not stop until the majority are broke and every valuable asset is owned by them and their chums.  At which point they will sit back as chaos reigns and then at the right time from the shadows pull the puppet strings of whatever strongmen have risen to the top during this chaos.  Calm will be restored, serfdom complete, and the next cycle started.  

Fri, 07/27/2012 - 14:06 | 2657521 LowProfile
LowProfile's picture


They will not stop until the majority are broke and every valuable asset is owned by them and their chums.

Problem is, who's going to guard it for them?

Fri, 07/27/2012 - 13:07 | 2657198 max2205
max2205's picture

Do the oposite of this goldman

Fri, 07/27/2012 - 13:09 | 2657205 Vincent Vega
Vincent Vega's picture


Fri, 07/27/2012 - 13:11 | 2657206 DavidC
DavidC's picture

They are not Gods. This WILL break. And when it does, it will be quickly.


Fri, 07/27/2012 - 13:10 | 2657208 Neethgie
Neethgie's picture

you have it wrong unfortunatly, draghi is not the european bernank, its barroso and rompuy who hold the whole steaming shitpile together, they offered us referendums on europe, when countries voted no, they renamed the treaty and let ireland vote, ireland said no, ireland was asked to vote again. How the hell is that democracy, why the hell are theese people still alive? europes history is so ridiculously bloody and none of us are overthrowing this lot?

Fri, 07/27/2012 - 13:12 | 2657212 barliman
barliman's picture


The future is now.

The Central Bank's are running a Three Card Monty game ... with the unusual benefit that since they are "the cop on the beat", no one can easily step in and bust up their racket.

Unlike a street corner hustler, the Central Banks have no sense for their "marks" and, lacking any external controls, no reason to worry about going too far.

The marks have wised up to the crooked game and are new marks refusing to get sucked in.

So the Central Banks are recycling the same money while they "fluff" the pot with Operation Twist and jawboning about QE3 making the pot richer.

Caught up in their own game, they don't notice that everything around them is getting poorer and shabbier looking ... or notice the street toughs (China, Russia) are getting ideas of their own.

It won't take a Black Swan event to bring it all crashing to the ground.  At this point, just a repeat of one of the previous events will be enough to bust up their game.


Fri, 07/27/2012 - 13:14 | 2657213 DormRoom
DormRoom's picture

Ben & Draghi  may try to inflate another bubble.  But once that bubble pops in 7 years it's game over for the entire world, since that bubble would have to be in the order of 20 Trillion USD to absorb the previous bubbles.  It will be the final bubble.


Great Deflation, or Hyperinflation.  The 1% will choose for us.

Fri, 07/27/2012 - 13:13 | 2657216 paulbain
paulbain's picture

----------- OFF-TOPIC --- OFF-TOPIC ---------

    See this article, which mentions  Zero Hedge explicitly:

    Does any smart investor actually  read No?? I did not think so.

Paul Bain




Fri, 07/27/2012 - 13:15 | 2657223 Debtless
Debtless's picture

We should all get used to it - they will do whatever it takes to save what they some PMs for insurance, bury them, and get on with the trend is your equity trend. They will push the metals down and prop the markets up as long as they can - money to them is cheap. End of the world bets are only good once. And they have a ton of tricky resources to toss at it before then. Tight stops. Take the money.

Fri, 07/27/2012 - 13:19 | 2657240 Buzzworthy
Buzzworthy's picture

OMG! A Charles Hugh Smith conclusion I actually agree with!

Fri, 07/27/2012 - 13:22 | 2657250 mr. mirbach
mr. mirbach's picture

 As Juncker rightly said: sometimes you have to lie.

Fri, 07/27/2012 - 13:32 | 2657280 Piranha
Piranha's picture

Ben, Draghi and Merkel will need to show the money now

Fri, 07/27/2012 - 13:54 | 2657438 paint it red ca...
paint it red call it hell's picture

Ya Think?


damn perceptive

Fri, 07/27/2012 - 14:11 | 2657543 hedgehog9999
hedgehog9999's picture

It is quite obvious by now that they are throwing everything they've got behind this move.....Volatility and gold are saying Nein, Nein....

I the last few minutes 2:10PM EST Dollar also said NEIN, NEIN

Monday will be epic.....


Fri, 07/27/2012 - 14:45 | 2657731 Wave-Tech
Wave-Tech's picture

It seems the more we learn, the more we really don't know.

Fri, 07/27/2012 - 14:56 | 2657767 Hype Alert
Hype Alert's picture

Good article.  An unelected body destroying the purchasing power of millions of retirement accounts.

Fri, 07/27/2012 - 15:31 | 2657843 MarsInScorpio
MarsInScorpio's picture

Sometimes I read these posts and have to ask: Why does anything the Status Quo do to preserve itself surprise you?


So what do you expect people with money to do but do anything they can get away with to keep the money under their control?


Isn't that exactly what you are doing; trying to keep your money under your control?


As far as the morals expressed in the featured article, can someone please give the author a sedative? He is obviously incapable of understanding that morals are the psychological constraints the .1% fabricate in order to keep the other 99.9% in line.


As someone once wrote, these people - - the .1% - - make the rules for everyone else, so whatever rules they make at any point in time must be OK since they are the rule-makers at-large. That is why they don't see themselves as thieves, liars, demonic, or any other negative. They are, in their own minds, the ones who keep the wheels on the wagon, the ones who build the institutions that keep order in society, the ones who are the only ones capable of seeing the real world from the omniscient viewpoint of their position in life.


They are the ones who believe you don't get it, because you are intellectually, and status-wise, incapable of getting it. The only getting you do is get in the way.


Why don't you understand that they aren't "just like us, only richer?" They are nothing like us. They don't think like us. They don't live like us. They don't eat like us. They have nothing whatsoever in common with us beyond the flesh. And even that is subject to manipulation.


That is why there is no choice but to eliminate them from society. It's brutal, it's bloody, it's cruel, it's heartless . . . it's required. So long as they live, you and yours will die to preserve their wealth and power.


There is no compromise with them.


You see, some things are irreconcilable (as some know through the experience of their failed marriage . . .). You cannot reconcile democracy, freedom of conscience, and an equitable playing field with people who are totalitarian in thought, have no conscience, and hold power by tilting everything in their favor. We, and them, are similar - but not the same, we have commonalities - but nothing in common, and as such, there can never be a framework that allows us and them to coexist.


Deal with that reality.


Then maybe you will stop going on endlessly with your whines about this and that, your predictions of them losing power and wealth, your false dreams of the system falling apart on its own.


Because if they have to in order to preserve their wealth and power, they will kill you as soon as look at you. They will fake a riot with their own agents starting it, they will blow up the legislative building with a lunatic under their control, they will start a war - they will do anything.


And there will be no shortage of sadistic, sociopathic monsters who will line up to work for them, who will enlist in their military, who will gladly fight among themselves to be the submissives who pull the trigger first.


They must be treated as every other ruling elite has been treated when the masses finally stop lying to themselves that they will be allowed to share in the power and the wealth.


They must be imprisoned, and if necessary, killed.


Before they kill you.


Fri, 07/27/2012 - 19:29 | 2658290 rambo1028
rambo1028's picture

I think you may have just made the top 10 on "The List". Eloquent and no holds barred honesty.... may I copy and post this to facebook? "Truth is treason in the empire of lies." Let's commit some "treason" today....

Fri, 07/27/2012 - 15:35 | 2657870 chogopogo
chogopogo's picture

What is the thing with the Euro? And why should it be preserved? To prove that those who invented it were not wrong? To keep the fats fat? 

I wonder and I am just asking, "between us": is there any tiny REAL interest to fight the crisis back? Or all that is wanted is to keep the money flow from some pockets to the other? 

Let's think for a minute: John borrows from Chris 1000 euro with 5%. When he should pay back, he hasn't the money, so he goes to Kate and ask for 1050  euro. What interest should Kate become? 5%? That is to assume John will never pay his debt back. Less than 5%? That is to assume Kate will pay John's debt. So, the only reasonable chance is more than 5%. That means John will have to do something about his debt - save more, sell more or both. These guys want to lower the rate Italy and Spain refinance, that is, to make Kate pay John's debt. Well, we know who Kate is. She is the middle class. 

On the other hand, what does Europe need in order to get out of this misery and preserve the high quality of life? Well, the answer is quite simple: high quality, high technology, highgly innovative products. What do you need for this? Well, educated work force and investment in the respective technologies. With what money? For example with the unimaginable amounts of money that were so long USELESS thrown away. Are there such investment areas? I think they are: biotechnologies, nanotechnologies, robotics, space technology, energy technology (for example thermonuclear fusion).

What would be a reasonable time frame to fix the things? 7-10 years? If anything like a coherent plan should have been in place, we should have been now at the half way on the good way. That didn't happened. 

This is not a solution, nor a fix, it is just a thinking exercise. Do we see such a coherent plan or ANY coherent plan in place?

Therefore I am asking again: is there the slightest interest to fight back the crisis???

Fri, 07/27/2012 - 16:16 | 2657960 Miles Kendig
Miles Kendig's picture

CHS, more than dangerous, they're unsound

Fri, 07/27/2012 - 17:34 | 2658114 TPTB_r_TBTF
TPTB_r_TBTF's picture


If on the other hand this is about maintaining the power of the elite, it is much worse, because if this were the case then we are seeing an attempt at totalitarian rule by what you call the "stateless state".

Someone is slowly catching on.  Drop the "If" and you get it right:

On the other hand this is about maintaining the power of the elite, it is much worse, because in this case, we are seeing an attempt at totalitarian rule by what you call the "stateless state".

Tyler, need an editor?

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