This page has been archived and commenting is disabled.

Will Central Bankers Be The Next Unchosen People?

Tyler Durden's picture




 

In his latest piece on popular delusions, SocGen's Dylan Grice conducts a much needed advance thought experiment looking at two specific things: on one hand he isolates the next inevitable social tension: that between "everyone" and the central bankers. Because if there is one specific reason why OccupyX never truly got off the ground is that deep down, the population knows that while bankers are to be despised for their "contributions" to society, they would never have the opportunity to do what they do absent the enabling stance of the "democratically" elected politicians, and more importantly, the deeds of those few academics stuck in a dark room, who daily decide the nominal fate of the world courtesy of money printing. Which means that in the inevitable progression of "marginalizing-then-brutalizing", when society finally cuts through all the noise and focuses on the one source of all that is wrong in the world, it will not be those residing at 200 West, but the tenants at the Marriner Eccles building: "Politicians can and will take back what they have previously given if and when it is deemed in their interests to do so. One way they do this is by using the time-tested political strategy known as “marginalise-then-brutalise”. Politicians start by identifying the obstacle to their objectives. For a government short of funds the objective is to raise more funds, and the obstacle is any group/sector which has them." Thus Mugabe “marginalised then brutalised” white farmers, while Hugo Chavez set his sights on private sector “profiteers” … for Hitler it was the Jews, for Philip IV of France it was the Knights Templar, for Diocletian it was the Christians, etc. How long before it is the central banks?" How long indeed? And whether it is with or without political prodding, once the central planning experiment fails, as it will, we would certainly not want to be in Bernanke's shoes...

As for the second part, Grice looks at the proverbial canary in the coalmine - Japan, where central banker tinkering is about to take the country to the next level in authoritarian tinkering, with disastrous results: "The notion that central banks are in control of events is a myth. It’s the other way around. Japan’s addiction to public sector spending is way beyond the boundaries of remedial ‘austerity’. Political pressure on the BoJ to crank the printing press into top gear will become irresistible. We see no alternative...the explosion in Japan’s debt/GDP ratio in the coming years is likely to make that seen in the past decade seem like a minor blip."

Back in May 2011 we first noted that following years of deflation, the only option before Japan is to do more of what it has done before, namely print. Sure enough, after a long delay, it made a "surprising" announcement doing just that.

Here is Grice's take:

The BoJ’s move to print money under political duress shows that in extremis there is no such thing as an independent central bank. Politicians can and will take back what they have previously given if and when it is deemed in their interests to do so.

Unfortunately for the central banks, long since having "betrayed" their independent mandate or two, this means that they themselves are about to be betrayed when the biggest experiment in central planning starts unwinding.

One way they do this is by using the time-tested political strategy known as “marginalise-then-brutalise”. Politicians start by identifying the obstacle to their objectives. For a government short of funds the objective is to raise more funds, and the obstacle is any group/sector which has them. The first step is to politically isolate the target, often by creating popular support for the idea that the target group/sector is to blame for whatever malaise is gripping the country. Step two proceeds when the target has been suitably emasculated and shorn of all defence against even the most brutal attack.

 

As Machiavelli observed five hundred years ago, “Men are so simple of mind, and so much dominated by their immediate needs, that a deceitful man will always find plenty who are ready to be deceived.” Thus Mugabe “marginalised then brutalised” white farmers, while Hugo Chavez set his sights on private sector “profiteers” … for Hitler it was the Jews, for Philip IV of France it was the Knights Templar, for Diocletian it was the Christians, etc.

 

How long before it is the central banks? How long before they’re being blamed for not doing enough to check the spike in government bond yields threatening the economy and jobs (even if that spike is caused by wayward government finances)? How long before the populist anger today directed against bankers is directed towards central banks for something like paying too much attention to inflation when x million people are out of work. Economists will provide camouflage for such populism. The cure will be worse than the disease, they will say.

Re-read the above as many as times as needed just so in a year or two when populist vigilanteeism breaks through the heavily guaraded barricades at Marriner Eccles and Liberty 33 and demands blood, and the media says that "nobody could have possibly foreseen this", one will be able to say wrong - it was foreseen long, long ago. But alas, as Grice says, the cost of fixing a broken system is too high for the high shamans of the lie to admit they were wrong all along, and instead will take the entire system to the point of breaking and beyond, which is where we are now.

So where should one look for the next steps? Why japan of course.

...Japan is the leading indicator. Today the BoJ is increasingly seen as a part of the problem. It’s not trying hard enough to boost economic growth, say the critics. It’s fighting the wrong battle, they add. One hundred and forty Japanese parliamentarians from across the party spectrum have formed an “anti-deflation league” to actively lobby it into more aggressive action and the effort seems to have worked. Despite protestations of the folly of such a policy only a few months ago, the BoJ has now upped its “asset purchase” scheme to something like 25% of expected 2012 JGB issuance.

 

At the regular BoE press conferences, Sir Mervyn King frequently defends the BoE’s actions in terms of its remit. The logical implication is that if the remit changes (e.g. they are to target a 5% inflation rate), so would its actions. Indeed, how could it be otherwise? But the logic of that is that there is no such thing as a truly independent central bank. Or if you like, central banks are ultimately constrained by the will of politicians. And if politicians really want their central bank to do something, the central bank will have no choice but to do it. In recent decades politicians have asked very little of their central banks, who in any case have been happy to run with excessively loose policy. But with the economy, or at least, government balance sheets, now in tatters, politicians’ demands are going to grow. And if these demands are not met, central banks will be marginalised then brutalised. I believe it’s already happening in Japan [where] the fiscal situation is so desperate the politicians there will soon really need the BoJ to start buying its bonds.

Don't worry - Kyle Bass is right, and the situation in Japan is indeed unsustainable.

The first chart above shows that Japan should be running a primary surplus of around 3% of GDP to prevent its debt/GDP ratio rising further. Note that this is a generous estimate because I’m using trend GDP growth to estimate revenue growth potential, and this is considerably higher than trend tax revenue growth, which has been falling much more rapidly over the same period. The current primary balance is around 7% in deficit. That means fiscal correction required is 10% of GDP.

 

That’s roughly the size of the adjustment Greece is expected to make by the troika, but by no one else because it’s beyond the boundaries of political feasibility. If Greece does manage to somehow pull this off it will still have a debt/GDP ratio of 120%, which the IMF has arbitrarily declared to be the ratio which is “sustainable” (Veneroso suspects this was done to make Italy look good, and we think he’s right). If Japan was to pull off similar heroics, its reward would be debt/GDP stabilisation at current levels of around 200%.

 

But anyway, there is currently little sign of any such appetite. The following chart shows the fiscal correction required to stabilise debt/GDP in trillions of yen (10% of GDP is around ¥50 trillion). Total non-discretionary expenditure is just over ¥50 trillion. It’s a staggering amount of money to find, just to stop your ca.200% debt/GDP ratio going higher. The proposed doubling of the consumption tax is intended to be phased in by 2015. Even if this is  actually passed, and there are no second order effects on other parts of the budget, the measure is likely to raise only ¥10 trillion p.a. It’s a bit like crashing into a wall at 180mph rather than 200mph.

But the biggest catalyst by far? The much anticipated shift in demographics has happened, and the public pension fund is now no longer buying Japanese Government Bonds.

...And as the fund becomes a net seller, the BoJ has upped its “asset purchases”, right on cue and under political pressure. That may just be a coincidence …. or it might be the first step on the long road to an inflation crisis. On existing policies and at current parameters, the explosion in Japan’s debt/GDP ratio in the coming years is likely to make that seen in the past decade seem like a minor blip. I for one bet the BoJ ups its purchases far more from here.

 

We for two agree, and since the chart above can only be described as exponential, as is the entire consolidated global central bank balance sheet, and since in a world of finite resources, exponential means unsustainable, the can kicking will soon end. First slowly, then very fast.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sat, 03/03/2012 - 17:01 | 2220193 markmotive
markmotive's picture

According to Jim Rogers, banking and finance is where the C+ business grads will go in the future.

 

With the backlash against bankers worldwide (and maybe even eventual salary stagnation), who else would want to join such a gong show?

 

Jimmy Rogers talking to the graduating class at U of Alabama about their dismal future:

http://www.planbeconomics.com/2012/03/02/jim-rogers-speaks-at-the-univer...

Sat, 03/03/2012 - 17:09 | 2220217 TruthInSunshine
TruthInSunshine's picture

Will someone save The Bernank's beard for me?

I would like to use it, in complete form as possible, on a gold bust I am sculpting called "Let Them Eat Tradition," which I shall be revealing at the Guggenheim ex post Bastille 2.0

Thank you.

Sat, 03/03/2012 - 17:22 | 2220245 withnmeans
withnmeans's picture

Anybody care to see what things will be like here, in the near future? This is a comentary from a young man in Greece via ekathimerini, give it a read.

http://www.ekathimerini.com/4dcgi/_w_articles_wsite3_1_01/03/2012_430709

Sat, 03/03/2012 - 17:25 | 2220254 maxmad
maxmad's picture

The Bernanke will be playing KGB in the upcoming movie "Rounders 2"

Sat, 03/03/2012 - 18:58 | 2220413 Seasmoke
Seasmoke's picture

pay that man his money

Sat, 03/03/2012 - 22:45 | 2220797 economics1996
economics1996's picture

Politicians and bankers are equally quilty.  Mussolini ended up with his head on a spike.  I see no reason we cannot achieve the same results in America.

I think the Iranians have it down, slow hanging, let them kick a bit first.

http://www.youtube.com/watch?v=EjYLRxHWKiQ

Sun, 03/04/2012 - 04:00 | 2221288 Popo
Sat, 03/03/2012 - 22:48 | 2220804 The Gooch
The Gooch's picture

Oreos are the NEXT Federal Reserve Notes..

"Fuck That shit"- Ron Paul. http://www.youtube.com/watch?v=eWC_0jPFQ_Q

Sat, 03/03/2012 - 19:10 | 2220440 Hobbleknee
Hobbleknee's picture

Is that porn?

Sat, 03/03/2012 - 21:00 | 2220613 francis_sawyer
francis_sawyer's picture

fuck that... Bernanke is more like 'Lester the Worm'

Sun, 03/04/2012 - 13:41 | 2221866 Elwood P Suggins
Elwood P Suggins's picture

Lester the Molester

Sat, 03/03/2012 - 17:56 | 2220318 RafterManFMJ
RafterManFMJ's picture

 

 

Already has a bid; I want to shave it off and paste it on my Real Doll.  Getting tired of the Brazilian.

Sat, 03/03/2012 - 18:26 | 2220357 Benjamin Glutton
Benjamin Glutton's picture

Off with their heads!!!...err just kidding Mr.DHS.

 

http://www.youtube.com/watch?v=Eobuu-IexvI

Sat, 03/03/2012 - 19:41 | 2220496 Silver Bug
Silver Bug's picture

The people are becoming more and more educated. They should be worried.

 

http://ericsprott.blogspot.com/

Sat, 03/03/2012 - 20:55 | 2220604 max2205
max2205's picture

Anybody seen John Cotisione lately

Rate spike? Be sure GS JPM. will frontrun that too

Congress still hasn't passed the insider trading law. Wtf!

Sat, 03/03/2012 - 21:32 | 2220649 chump666
chump666's picture

lol....

Sat, 03/03/2012 - 23:47 | 2220914 greyghost
greyghost's picture

hitler had the jews????? what if the "central bankers" are "jews"????? does that make them off limits?????

Sun, 03/04/2012 - 07:34 | 2221422 BidnessMan
BidnessMan's picture

In Weimar Germany many of the central bankers were Jewish. One reason why German farmers refused to sell crops for hyperinflating Weimar currency disparingly referred to as "Jewish Confetti".

Sun, 03/04/2012 - 11:13 | 2221601 swani
swani's picture

@ To all who always try to make everything into a Jewish thing

Jamie Diamond is not Jewish. The Rockefellers are not Jewish. Neil Bush from the Savings and Loan scandal is not Jewish, Hank Paulson is not Jewish. Timothy Geithner is not Jewish. Jeffrey Immelt is not Jewish. John Pierpont Morgan of JP Morgan was not Jewish. Standard Oil, now Exxon/BP, the controlling shareholders of these companies are not Jewish. What about the IG Farben, now Roche, Avantis, Ely Lilly, most of the controlling  shareholders of the world's pharmaceutical companies are not Jewish.  

I feel that there are people whose view of the world is so simplistic that they need to blame a single group for all of the troubles of the universe and in order to do this, they must demonize a race or religion, ext. Often the very people that are trying to manipulate the sheeple for their own gain, will utilse this weakness in the human condition to seize power. That's why the government uses fear to label anyone a 'terrorist' in order to excuse imperialist wars fought for control over resources to benefit the monopolists and not the people. 

If things were that simple and we could just blame one group of people, life would be easy, but it's not.

 

Sun, 03/04/2012 - 12:52 | 2221762 dark pools of soros
dark pools of soros's picture

The sticking point is that the media overly protects against any Jewish slights. No one here is saying lock up all the Jews and leave alone all the other criminals. And your post implies the reverse

Sun, 03/04/2012 - 15:42 | 2222200 swani
swani's picture

@Dark Pools of Soros

The media protects itself against appearing racist, antisemitic, male chauvinistic, ext, ext, ext. That's what being 'PC' is all about and that's the American way. The media is not only protecting itself from appearing antisemitic, it is protecting itself in general. 

Sun, 03/04/2012 - 16:23 | 2222311 dark pools of soros
dark pools of soros's picture

bull - the attacks are far and wide on many fronts and no, 'being PC' has never been 'The American Way'.  Liberty and Justice and Rule of Law would trump being PC in any history review of 'the American Way'

Where is the mass reporting of Rabbi child molestors? Why only attack Catholics on this front?   Should i continue listing all the double standards?

When has the media ever cared about being anti-christian?  I'm not a Christian but I rather just list one example

 

Sat, 03/03/2012 - 16:59 | 2220194 Careless Whisper
Careless Whisper's picture

The Careless Whisper Saturday Update & Threadjacking

Morgan Stanley Director Arrested In CT;  NYC Cab Driver Refused To Be Victimized

http://www.nypost.com/p/news/national/he_told_me_gonna_kill_you_mother_vmgGRFEuyedTN5Vf2VQKzM

China; 1 Billion Cell Phones, Everywhere Else, Not So Many

http://www.economist.com/blogs/graphicdetail/2012/03/daily-chart?fsrc=rss

Chinese Spy Stole Secrets From Dupont

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/03/03/BUNH1NFE5A.DTL

Chinese Protestor Tells World Bank/GoldmanSachs Zoellick; "Go Home With Your Poison!"; VIDEO

http://video.msnbc.msn.com/nbc-news/46555692#46555692

CNET Examines New technology In McLaren MP4-12C; VIDEO

http://cnettv.cnet.com/take-ride-mclaren-mp4-12c-hold-tight/9742-1_53-50120902.html

Kate Upton Commercial Goes Viral (warning; NSFO) VIDEO

http://www.youtube.com/watch?v=xdGsKzmCgB0

 

 

Sun, 03/04/2012 - 00:51 | 2221022 JohnKozac
JohnKozac's picture

$204 from NYC top CT sounds too cheap to me.

Sat, 03/03/2012 - 17:01 | 2220195 Manthong
Manthong's picture

marginalise-then-brutalise"

It might be worth it to see them swing.

(I had a "sarc" on but I took it off because it requires some more thought.)

Sat, 03/03/2012 - 17:05 | 2220206 eddiebe
eddiebe's picture

Make whatever arguments you want, but the fact is the bankers own the polititians, not the other way around. If this is not understood all conjecturings to make charts work have little meaning.

Sat, 03/03/2012 - 18:33 | 2220367 Ol Man
Ol Man's picture

Absolutely...

 

All the more reason to be ready with the kit...

Rope, Lampost, Banker... Some assembly required...

;)

Sat, 03/03/2012 - 19:04 | 2220422 BoNeSxxx
BoNeSxxx's picture

From your lips to God's ears.

Don't forget the tar and feathers.

Sat, 03/03/2012 - 20:14 | 2220549 Conrad Murray
Conrad Murray's picture

in a year or two when populist vigilanteeism breaks through the heavily guaraded barricades at Marriner Eccles and Liberty 33 and demands blood, and the media says that "nobody could have possibly foreseen this", one will be able to say wrong - it was foreseen long, long ago

There are more than enough people around the world who know the true culprits are the banksters and their political front-men/women. There are more than enough people around the world who are unemployed, homeless, and FED up.

The writing is on the wall for youth across the globe. 15% real unemployment is the bare minimum. Dig into the numbers of any country and see what the youth are up against, 30/40/50% unemployment. Their futures have been sold, packaged, tranched, and leveraged for the benefit of those at the top who already have more than they can spend in 10 lifetimes.

The State is preparing with NDAA/SOPA/PIPA/ACTA/PATRIOT Act. There is no need to wait any longer. Time benefits only the criminals and traitors. The People of the World need to stand up, united in rejection of slavery, and demand their voices be heard.

May 1, 2012 is the day - http://pastebin.com/iTx8RA2P

Sat, 03/03/2012 - 18:44 | 2220383 drbill
drbill's picture

True. The bankers own the politicians. For now. But once the banker's ppaper promises aren't able to buy a loaf of bread, or more likely long before that, the bankers will learn how little the promises of politicians are worth. I wouldn't want to be a banker then!

Sat, 03/03/2012 - 20:25 | 2220564 unrulian
unrulian's picture

really, and when the lynch mob knocks on the polititian's door at who do you think that greasy windsock will point his finger?

Sat, 03/03/2012 - 17:17 | 2220233 bank guy in Brussels
bank guy in Brussels's picture

The oligarchs own the corporate media which sway the opinions of the majority of people ... along with the CIA's two major internet censoring, search manipulation, and dis-information companies, Wikipedia and Google Inc.

The oligarchs are able to turn the hatreds of tens of millions of people in directions they want.

So far they are doing a pretty good job of inflaming nationalistic hatreds and getting most people to hate some 'foreigners'.

The old stand-by hatreds, inflamed against ethnic and religious groups, will serve the oligarchs just fine, as they have for centuries.

Sat, 03/03/2012 - 17:24 | 2220251 SMG
SMG's picture

Excellent point.

Sat, 03/03/2012 - 17:19 | 2220234 Pretorian
Pretorian's picture

Japan debt is Internal , it can only srew Japanese people outside debt is around 30% so no problem here. If you listen to Kayle Bass speaking nonsense about Japans debt then u freek out. Check for yourself do some research.

 

Sat, 03/03/2012 - 19:20 | 2220457 Bam_Man
Bam_Man's picture

The old "We owe it to ourselves, so it's not really a problem" argument.

Doesn't hold water. Never did and never will. Watch and learn.

Sun, 03/04/2012 - 01:46 | 2221101 chindit13
chindit13's picture

The planet Earth's debt is internal, so it can only screw Earthlings.

Sun, 03/04/2012 - 13:01 | 2221784 dark pools of soros
dark pools of soros's picture

Do you think it's time to put financial instruments into a time capsule to warn the aliens what eliminated the planet? They won't believe nukes did it

Sun, 03/04/2012 - 15:54 | 2222244 prains
prains's picture

pretorian _ please do some research on ass hat 

Sat, 03/03/2012 - 17:18 | 2220235 VelvetHog
VelvetHog's picture

Oh look, a wagging dog!

"And if politicians really want their central bank to do something, the central bank will have no choice but to do it."

 

I think this is backwards.

Sat, 03/03/2012 - 17:19 | 2220240 tony bonn
tony bonn's picture

i would love to see the banksters marginalized and brutalized but there is no doubt that the politicians succumbed to their wiles in accepting infinite debt to finance infinite greed....such wishes are always granted with fake fiat money....

Sat, 03/03/2012 - 17:26 | 2220242 Atomizer
Atomizer's picture

The filter is slowly being breached. Central Bankers are either going to develop new morality roles or perish in the evil poly to destroy society based on counterfeit monetary polices. I’ll let them decide the right choice.


 

Sat, 03/03/2012 - 17:22 | 2220247 Cdad
Cdad's picture

First slowly, and then very fast, bitchez!

Sat, 03/03/2012 - 17:24 | 2220249 Yen Cross
Yen Cross's picture

Based on purchasing power. I suspect " body guards" , are hard to come by. Beware banksters, the "grassy knoll" is a lot bigger.

Sat, 03/03/2012 - 17:27 | 2220258 fightthepower
fightthepower's picture

Central bankers need to be hung.

Sat, 03/03/2012 - 18:55 | 2220404 Seasmoke
Seasmoke's picture

hanged

Sat, 03/03/2012 - 23:23 | 2220868 fightthepower
fightthepower's picture

Your mom needs to be hanged.

Sat, 03/03/2012 - 17:29 | 2220265 The Swedish Chef
The Swedish Chef's picture

Yeah, those poor central bankers... The politicains have at least been elected. Tyler, go back to the "tar, feathers and pitch forks" stance. Much more palatable.

Sat, 03/03/2012 - 17:59 | 2220323 Tyler Durden
Tyler Durden's picture

Nobody is saying "poor central bankers" - this is merely a recipe for the future based on the simplest of human emotional triggers, and a warning for central planners and economists alike. 

Reread the piece.

Sat, 03/03/2012 - 18:04 | 2220332 Yen Cross
Yen Cross's picture

The Swedish Krona has had a good run up. Take profit and cook those spicy meatballs on your(own), private island, or yacht.

 I'm sure Bill gates is hiring,after that win-8 release.

Sat, 03/03/2012 - 19:52 | 2220448 The Swedish Chef
The Swedish Chef's picture

"for Hitler it was the Jews, for Philip IV of France it was the Knights Templar, for Diocletian it was the Christians, etcHow long before it is the central banks?"

 

To even compare the atrocities Hitler subjected the jews to, or what the early Christians suffered, to the righteous punishment that hopefully is coming for central bankers is disgusting. I fully understand what it is trying to imply, the danger of populist anger being directed towards a specific group, but you see: the other groups were fully in their right to do what made them the target of such atrocities. The central bankers do not have a unalienable right to destroy our economies. 

 

On the other hand, I have a hard time seeing politicans of any fashion turn on their masters but one can dream.

Sat, 03/03/2012 - 21:04 | 2220617 francis_sawyer
francis_sawyer's picture

I'm junking you only for being specious...

Sat, 03/03/2012 - 19:45 | 2220503 IndicaTive
IndicaTive's picture
"Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin to slit throats."

--Mencken

Coming to an Op-Ed page near you.

Sat, 03/03/2012 - 22:39 | 2220775 fightthepower
fightthepower's picture

Good these motherfucking bankers need to pay. To compare a bunch of highly educated thieves who knowingly stole from every working class saver to an ethnic group who's only crime was being born is beyond rediclous. Kill central bankers, kill them all.

Sat, 03/03/2012 - 22:59 | 2220823 The Gooch
The Gooch's picture

I have a whole collection of Chinese manufactured razor knives from China depot ready to go. Let's go, already.

Sat, 03/03/2012 - 17:39 | 2220283 tgatliff
tgatliff's picture

There might be an easier route.. Brutilize the private bankers instead of the central bankers..  

Meaning, force the banking sector to a full reserve banking system which would "mop" up the inflationary explosion, set interest rates back to a historical norm of 8% to 10%, and then run government operations off by new high power money instead of taxes which would be pegged by a countries birth rate.   I dont know exactly how much of an offset this would be or how sustainable this would be, but it should be relatively easy to run the numbers.

In short, we blame the central banks for "destroying the dollar" since 1913, but ignore the fact that the bulk of the currency dilution has been from loose fractional reserve banking policies.  Most would agree that new money needs to always be interduced into the system as population growth rises, but the overall question is always by how much.   If you peg the amount of government revenues to a countries birth rate, it might actually be a more sustainable system in the long run.   

Yes, I understand the above assumes allot, is easy to manipulate, and probably is rather a simplistic understanding of the system, but I think a radical rethinking of monetary policy probably is going to be the only way to stop driving the global economy off of a cliff with a large percentage of the population starving.

Sat, 03/03/2012 - 17:55 | 2220317 css1971
css1971's picture

I think a radical rethinking of monetary policy

LOL.

Sorry, our "leaders" are looting the system, not running it.

HTH explain why we are where we are.

Sat, 03/03/2012 - 17:43 | 2220295 Frastric
Frastric's picture

If Bernanke has any brains he'll get out before the shit goes crazy... Bernanke should pray that the judicial system gets him first because when he is sacrificed on the political altar, and his crimes and financial ineptitude exposed, the people will be coming for him (angry savers, investors, disillusioned and squeezed middle class and so forth).

Sat, 03/03/2012 - 17:44 | 2220298 Atomizer
Atomizer's picture

Once you understand the hierarchy, you begin to find answers in solving the obvious problems.

 

World Systems Approach

 

Sat, 03/03/2012 - 17:48 | 2220307 Sudden Debt
Sudden Debt's picture

Yeah toast them.... To bad.... I sure hope i get to torch some to!

Sat, 03/03/2012 - 17:49 | 2220308 tlnzz
tlnzz's picture

Ben Bernanke and the rest of the criminal bankers are racing towards a Mussolini solution for, "We The People".   tlnzz

Sat, 03/03/2012 - 18:45 | 2220364 Pseudo Anonym
Pseudo Anonym's picture

for Hitler it was the Jews, for Philip IV of France it was the Knights Templar, for Diocletian it was the Christians, etc. How long before it is the central banks?"

sure, the shtadlans working for the CBs will be thrown to the dogs.  but after that is done, it still leaves the hofjuden behind the scenes to finance the next gov't and continue to rule this hemisphere.  the 99-percenters will not be much farther ahead until all hofjuden are hung and swinging.

Sat, 03/03/2012 - 18:35 | 2220373 Wakanda
Wakanda's picture

Japan will be first? 

If they don't abandon the northern half of the island because of radiation. 

Will the irradiated inhabitants with nothing to loose storm the BOJ barricades?

Who would blame them?

Sat, 03/03/2012 - 18:40 | 2220377 Conax
Conax's picture

 “The issue which has swept down the centuries and which will have to be fought sooner or later is the  people versus the banks.” ~ Lord Acton

 Therefore, the government would have to take sides with us against themselves.

Very doubtful. They didn't work for a hundred years to build this fascist system only to tear it down for votes. Votes are electronic, and only a minor problem to control.

 

Sat, 03/03/2012 - 18:44 | 2220384 TheSilverJournal
TheSilverJournal's picture

I hope the central bankers are the ones that the crowds rally against. If that's the case the we'll be alright. If the ones that are seen as evil are instead those that produce, then we'll be in a lot of trouble.

TheSilverJournal.com

Sat, 03/03/2012 - 18:57 | 2220410 Seasmoke
Seasmoke's picture

i rather see the politician and public figures , hang upside down at an Exxon gas station......i know their faces and would feel much more satisfaction

Sat, 03/03/2012 - 20:40 | 2220436 AssFire
AssFire's picture

I Hope they Fail

Sat, 03/03/2012 - 19:08 | 2220437 AssFire
AssFire's picture

....another mile marker on the road to collapse.  Thank God we have a statist flunctionary in charge to hasten the journey.  Aside from being the greatest vehicle for human advancement the world has ever known, private sector capitalism is vastly overrated.  Let's give failed socialism another chance...just don't call it that.  How about something nice sounding like "Hope and Change."

Read more: http://www.atr.org/one-month-worlds-highest-corporate-tax-a6748#ixzz1nwG...

Sat, 03/03/2012 - 19:22 | 2220460 Yen Cross
Yen Cross's picture

You can do no wrong with that avatar! Blankfein in a Deposition , Lawyerless! Priceless!

Sat, 03/03/2012 - 19:10 | 2220441 slackrabbit
slackrabbit's picture

They will target the savers! Don't believe me, check The Guardian UK newspaper (pardon the sick irony!) from 2008. Apparently we were responsible because we did not spend enough or and weren't entrepreneurs.

Savings confiscation will come because this generation of looters/paracites have no moral compunction to do otherwise.

So long as central bankers and politicians offer the voodoo magic of economic pennies from heavon forever , the paracites will vote for them. 

Sat, 03/03/2012 - 20:09 | 2220538 RopeADope
RopeADope's picture

What central bankers giveth, they can taketh away. Everyone's savings were not actually earnings, merely monopoly money given away at the start of the game.

Sat, 03/03/2012 - 20:50 | 2220600 kraschenbern
kraschenbern's picture

Savers are targeted now.  An interest rate of 0% on savings in an inflationary environment of n% is just a (not so hidden) tax on savings.

Sat, 03/03/2012 - 20:26 | 2220452 slewie the pi-rat
slewie the pi-rat's picture

It’s a bit like crashing into a wall at 180mph rather than 200mph.

theTruth is that you hit the wall 25% harder at 200 v. 180, so that "little bit" is where a person lives or dies at the wall, if anybody is home at all, here...

we'll be at the fuk_u 1-year very soon

japan's doing ok, given the poisonPill we've all romanced, here

but people can bet on anything they want

horses, dogs, golf

i'd stay away from car racing, tho, grice;  at least until you can figure out the damned math!

maybe you'll do better at figuring out japan without considering that there may be "special circumastances" due to last march, yet;  or that co-ordinated centralBankstering is in play around "devaluations" which could lead to increased exports

frankly, i could fuking care less...

but if you guys and kyleBass "nail it", you'be be RICH!

maybe someone will do an article about the impact of co-ordinated certralBankstering on the "carry trade"

who tf knows?

slewie's take:  that's probably gone, too, except for the mostest "in crowd" such as nancyPelosi who will now, inexplicably, shift from stocks to FX

furthermore, if this be a true insight, and the "carry trade" will not offer "such ample returns":  is this not "good for other investments"?  also, possible smoother "asset markets" w/out so much "hurried unwinding"?

and finally, with a damper on the carry trade, is it not somewhat plausible that 'inflation' [specifically asset-inflation] might not become so heated as in the recent past?

OR: is japan devaluing precisely into a carry-trade scenario, here? 

what are the banksters up to, and what will they do, next? 

this is the old:  when is the globalReserveCurrency not used?  when theYenCarryTrade is rolling like a banshee!

stay tooned, eh?

Sat, 03/03/2012 - 23:15 | 2220851 oldman
oldman's picture

Hey Pi rat,

good post    thanks

This line stuck out for me, though: "The notion that central banks are in control of events is a myth. It’s the other way around.


This seems so obvious to many, especially this oldman, but perhaps the truth of the observation is meaningless. I have been expecting that the virtual reality would not hold up against the 'real world', but in practice it has held up very nicely.

The universe is not always logical-------maybe this premise is without merit.

Any thoughts on this or have I garbled the question beyond comprehension?     om

 

Sun, 03/04/2012 - 02:12 | 2221123 slewie the pi-rat
slewie the pi-rat's picture

just reading:by Doug Noland | Mar 2:  Financial Sphere Weak Links

the centralBanks are in control of an event called:  printing m-0-n-e-y from thin air!

this gives them a leg up on:  the best goobermints money can buy

since the '08 re-set:  what the hell are we gonna do w/ these freaking banks?  answer:  put the FED in charge of everything.  set it, and forget it.  =  doddFrank
robo_T and i have both been incredulous at the benzelbub's successes!  inflation was kinda transitory!  europa hasn't im/ex/ploded.  yet.  there appears to be a higher degree of cB co-0rdination.  the Treasury is still functioning and the Congo hasn't BK's us totally, yet.  ZIRP is got that curve where it just can't swerve!

the banks aren't in charge of events, but they are in charge of the banking (events).  you are in charge of om events.  so, it isn't totally the "other way around" 

everything that has some autonomy has at least some control of some events.  and banksters probably control pols and ministers a lot more than we do, too

the premise is not w/out merit, but it is not stated correctly, imo

the doctor isn't in charge of your health, either;  but if you need surgery, s/he might be, for a while!

also, many "events" are parts of larger processes

politics makes very strange bedfellows, and even a bankster can get a figurative shiv between the shoulder blades

that link to dougNoland will take you to the story of hansWeidermann (german b-bank) calling out marioDraghi (ECB) the day after the LTRO:  "we must tighten up the collateral rules!  this is ridiculous!" type of thing.  blahblahblah

in the US we have theConstitution.  there is no "central bank";  there is no "legal tender";  there is no fiat banking infinite debt=money nightmare;  we have rules, om.  we need to re-member our Republic more completely

we have theLaw and we have thePower, but everyone is off in another world, kissing these fuktards' asses!  sound asleep, dreaming of moMoney all day, every day

the brainwashing is so "economically-expertise" complete that if you even mention honest non-debt money, the pyramid ponzi groupies immediately swoop down in a concerted effort to debunk REALITY and TAX HONEST MONEY

to me, this is the crime:  the motive, the opportunity, the weapon

from this criminal onslaught honest gold and silver coinage is driven 0-U-T by [nonsensicality]4 = TYRANNY via {debt = money}

the "problem" is thus defiable and graspable, but the propaganda of the fiatscoes is incredible, b/c people do not conceive that they are actually being LIED to

this money works just fine, tyvm, and "they" won't "let" the sytem break

this is our everyday sheepledom

the political process is so corpo-oriented that ordinary man and women no longer trust their own honest desires and instincts

everything is a "game" until you can't pay the rent.  then, you got a legal, social, and personal problem, huh? 

until then, fuk it!  let joe deal with it!  life's too short!

maybe you won't get wiped out and wiped up

and, these perceptions are very carefully managed by the "messengerCompanies"

perceptions about the banking system and the "unthinking conditioning" that readily accepts them are not hard-wired, though

someone quoted lordActon along in here;  these perceptions and the paradigms they reflect and mediate are not necessarily an all-political ballgame

that conditioning needs constant re-inforcement or the "banksteringValues" may start to "feel" a little "not-right"

so we fight them:  they are a buncha fuking moronic asswipe failures who have BK'd the whole nation with their corpo-fascist criminality and their perpetual prop-wash that they can "fix" whatever for us needs a pie in the face every time some puppet starts the jive talk!

Sun, 03/04/2012 - 04:45 | 2221316 oldman
oldman's picture

Slewie,

Thanks for talking me down from the ledge and back into the penthouse. I am now in the elevator and almost back to terra firma where I shall fall on my knees and kiss the ground. I am nearly back to normal after your reinforcing my weakly-based reality(I live alone and stay away from hoomans as much as possible), with your own which is much better-stated.

Thanks for the link, also. This caught my eye:

"Perhaps I was looking too intensively, but I thought I saw in this week’s trading action hints of latent financial fragility.  Crude traded above $110 intraday on Thursday – and the bond market began to take notice.  Chairman Bernanke was not quite the ultra-dove on Wednesday, and gold suddenly reversed course and traded down almost $90 on the day.  The U.S. dollar caught a bid this week."

This is what shook me so much; the action in gold which was so bludgeoned and then held where ever the machine wanted it, for the rest of the week. I was amazed by the 'overwhelming force' that seemed to say:"You want to see who is in complete control here, buddy?    OK!"

Not knowing a thing about HFT and how the market works any longer(all of my experience was in hooman-based markets), I imagined that with a few million trades each day and trading in fractions of cents rather that ten cent to  one quarter increments, that a machine could just run whatever it wanted and sort out the fills later, pocketing the plusses and throwing the rest to the fed and the poor bastards who actually thought THEY were trading the market!

Anyway, this is what made me walk out on the ledge and take a long look down.

It is obviously imagineable that machines could run this shit forever as long as no one walks out on the street and begins to buy and sell. I haven't done any cactus lately, but maybe I will soon just so I can contemplate reality from outside of same----'great distance and great time' are essential to sorting out  'om events' as well as the rest of it.

And yeah, "so we fight them:  they are a buncha fuking moronic asswipe failures who have BK'd the whole nation with their corpo-fascist criminality and their perpetual prop-wash that they can "fix" whatever for us needs a pie in the face every time some puppet starts the jive talk!"

is essential in this war--------------if I don't throw the occasional pie, the shuck and jive shit takes on a life of its own.

Thanks again, Slewie     realy nice to have you so handy       om

Sun, 03/04/2012 - 05:14 | 2221350 Peter K
Peter K's picture

Actually the opposite is the case. There is an "order" that governs the "operations" of the universe. If it was not "logical", the universe would have ceased to exit due to those illogical aspects. Think communism. The term that is appropriate here, but has fallen out of fashion is "universal law". On the other hand, humans don't always like the way in which the universe is ordered, and they try to change it.  The best example of this is Stalin's two 5 year plans for the transformation of nature. And we all know how well that turned out. But as with communism, the natural order catches up in the end. We see this phenomenon acting out in the Euroland debt crisis. The problems that Euroland is experiencing is directly due to the inherent contradiction between the socialist welfare state and the natural order. To be more precise, if one continuously spends more money than one has, the fall at the end of the day comes about due to a simple mathematical equation. It's just that simple:)

Sun, 03/04/2012 - 05:41 | 2221361 oldman
oldman's picture

PK,

Thanks, I'm sure you are well intended and probably believe in cause and effect.

I don't; nor do I live continually in the human context,

But I do have sufficient resources and live an easy life in a simple culture where most of us, though without a great deal of money, are not 'poor'. Life is easy and simple here, so I am not as stable intellectually as you are and, consequently, not always so certain of which way is 'up'.

I don't know a thing------about communism, Stalin, universal law, or mathematical equations. None of this is neccesary here. Nor have many of my former 'positions' held up very well to the 'cold light of day', but everyone knows that one cannot spend more than one has unless the sky opens and mana falls from heaven.

"Order' is a mental construct in the human mind, and from the state of the planet, we know what this is worth.

I'm just having fun at ZH, mostly, but there are times when I lose it

So thanks for the input and effort

please keep me posted on how it works out

sincerely          om

Sun, 03/04/2012 - 07:20 | 2221414 Peter K
Peter K's picture

Have no issue with you, or anyone else dropping out. But I think it would be in the best interest of all concerned, and especially you, if we all at least accept that a natural order exists. It existed before homosapiens set foot on the earth. And one can deduce that it's not in your mind, since even if you didn't exist, that order would. And one more thing, one can drop out because others haven't, and what's more important, allow for that choice:)

Sun, 03/04/2012 - 11:03 | 2221587 oldman
oldman's picture

Hey PK,

Great post, dude.

I don't disagree at all because all that you say is true when this oldman is in the human context.

But, only this oldman exists for this oldman and when he is gone there will be no more of anything for an oldman who no longer exists.

The natural order is chaos, order, continuity, gaps, on and on.

It truly is un-nameable.

This oldman has always lived as a cockroach between the cracks in the floor,

but, shhhhhhhhhhh-------please don't tell a sole!

PK, you have caught me out and I can only laugh that there is such human intelligence here---it makes life so very interesting

thanks again from an oldman living in a 'state of grace' who can ONLY be grateful       om

Sun, 03/04/2012 - 18:56 | 2222614 falak pema
falak pema's picture

poetry is definitely better for one's soul then arm chair politics, any day! 

Politics is admitting to oneself that part of us, in mortal limbo,  is Sisyphus; and that we are also slaves of "civilization" with our dues to pay to Caesar. Doen't mean we cannot be poets on our own.

Sun, 03/04/2012 - 20:19 | 2222783 oldman
oldman's picture

Falak,

Thank you for your gracious manner of pointing out a word mis-spelled. I must have been stuck on the crack in the floor or somethink.

gracias                om

Sat, 03/03/2012 - 19:30 | 2220472 AUD
AUD's picture

How long before it is the central banks?

Never. The government enables the central bank so the central bank can enable the government.

Without each other they are nothing. When they go down it will be together, so don't hold your breath waiting. The vast majority of people neither know or care that the obligations of government & central banks are rotten. They demand these obligations with every ounce of their being, for you can never have enough 'money'.

Sat, 03/03/2012 - 20:57 | 2220608 kraschenbern
kraschenbern's picture

It is possible for the government to exist without the central banks (See Andrew Jackson vs. Biddell).  But the banks do provide a convenient mechanism for government to acquire funding on pet projects, without getting the taxpayer "directly" involved.

Sat, 03/03/2012 - 23:03 | 2220830 Hugo Chavez
Hugo Chavez's picture

Hugo's law.

Bad government drives out good government.

It is too easy to vote for the politician who promises too much then uses central banking and other surreptitious means to fund those promises.

Sun, 03/04/2012 - 00:23 | 2220972 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

Oil = Governments = Central banks

Inseparable!

Sat, 03/03/2012 - 19:35 | 2220483 smb12321
smb12321's picture

I wish folks  would make a distinction between "banks" and "BANKS".  It's like saying all ZH posters are racist because of a few posts...or worse, the dumb analogies:  BB King is a vegetarian; Hitler is a vegetarian: BB King is therefore a Nazi.

Small and mid-size banks are the lifeblood for rural America.  Besides funding payroll credits, folks have a place to deposit or store valuables.  Our family bank helped several businesses get off the ground.  We financed housing for qualified buyers, 98.8% of which are up to date in oayments.  And yes, we did the charity route too.  

JPM, GS, BoA, CS are banks in name only.  Their real job is making money through "unconventional" but legal methods.  There is just no comparison.  They have about as much concern for the customer as Obama does for the Boy Scouts. 

Sat, 03/03/2012 - 19:58 | 2220521 Yen Cross
Yen Cross's picture

 Take that opening ovation and toss it!  Get crystal clear, and then post it! Your setup doesn't fly with me ass hat!

Sat, 03/03/2012 - 19:36 | 2220486 AN0NYM0US
AN0NYM0US's picture

from london banker earlier in Feb

 

It seems that central bankers and politicians are endlessly resourceful when it comes to innovating ways to profit themselves and bankers at everyone else's expense.

 

http://londonbanker.blogspot.com/2012/02/greece-cutting-out-middle-man.html

Sat, 03/03/2012 - 19:39 | 2220495 AndTheRest
AndTheRest's picture

Members of the American police state should be shunned and cast out from normal social circles.  Any person working for or with law enforcement should be cut out of your social circle.  Anyone working for DHS...well, there's a special place in hell for those monsters.

Sat, 03/03/2012 - 21:59 | 2220709 Prometheus418
Prometheus418's picture

Thanks for your input.

But you're wrong.

The only reason that the police in the US are able to do what they are being asked to do is *because* people shun them and cast them out of their social circles.  They're a seperate caste at this point, and that "blue wall" they've erected allows them to justify dressing up in military gear and spraying women and the elderly with pepper spray.  The more that they are a real part of their communities, which most importantly involves them being part of social circles, the more they have legitimate feedback from their friends and neighbors that they can use as an incentive to do the hard thing- namely, to stand up to their superiors and say "no."  Instead of being an ass, invite a cop over for dinner, and get him/her to commit to joining the oathkeepers.

The more you isolate police from your community, the more likely it is that you will face them in pitched battle.  And no matter what you think, in whatever Rambo-inspired fantasies you may have, the police have training and weaponry you don't.  We'll fight them if we have to, but I'd rather they were on our side.  They are public servants, which means they work for us- not the government.  Make them a real part of the community, and maybe they can help train your local militia someday- rather than fighting you to the death.

I'll grant you the DHS goons, though.  They and the TSA are the real terrorists- neither mercy nor kindness is appropriate when dealing with those monsters.

Sat, 03/03/2012 - 19:54 | 2220513 Clowns on Acid
Clowns on Acid's picture

Tyler,

So...as Mr Bass has also said (alledgedly..) to buy "high dividend , cash rich, equities as they actually produce something, and can lay off workers to sustain positive cash flow". Buy gold physical as well, but that is fraught wityh Gov't interference.

Unlike Gov'ts, who find it difficult to lay off workers (indeed look to hire more in times of distress ...and need votes) and what they produce they do so inefficiently, Blue chip, cash rich companies will maintain equity growth (certainly in times of QE3) and pay dividends.

Seems like the default argument.

 

 

Sat, 03/03/2012 - 20:17 | 2220554 eddiebe
eddiebe's picture

I seriously doubt anything will happen to any of the central bankers, well other than they will get ridiculously rich and will be able to buy anything they want, including most people.

Sat, 03/03/2012 - 21:09 | 2220625 Cabreado
Cabreado's picture

Keep in mind that there is no cure for pathologically antisocial behavior.

Focus on this part, and extrapolate the results:  they do not have the desire nor even the wherewhithal to quit the game.

Sat, 03/03/2012 - 20:18 | 2220556 ISEEIT
ISEEIT's picture

I see things differently. I see the game hitting those of us who question this farce long before (if ever) it blows up in the perps faces. Just because .002% of the population has stepped out of the cave does not provide for reason to believe you might win. Try walking back into the cave and convincing the shadow watchers that they are wrong. This brilliant and beautiful creation of the Tylers could be shut down in a heart beat. I am being intentionally confrontational and understand that I am way out of my league. That being said though I see the world only through my own eyes, and what I see is a population so neutered, so absent authenticity, so corrupted, so far removed from a free state of existence, that to imagine that any real fight will occur is in my opinion honorable, but also naive. People have been ruined. The other side will see their victory.

For that matter maybe they already do. Deal is though, what they have now is not enough. They need more. It's not enough for them to 'win'. The goal is to stamp out and eliminate any individual that might in the future challenge their lie. I don't personally believe that any person can ever truly be comfortable and secure living a lie, primarily because the fear of exposure would always be eating away at them.

The solution for such a beast is to destroy all potential threats.

Even a halfwit (in relative terms, and the halfwit is me) understands this.

Nothing more than history repeating itself. The only difference is that now it is history being made rather than studied from a 'safe' distance.

Sat, 03/03/2012 - 23:59 | 2220936 oldman
oldman's picture

@ISEEIT

You are not the only halfwit.

Everyone from the US that I have met over the past five years in South America is far less intelligent than any halfwit.

Is there any way that you could keep these people in their own country. 90% or more seem to be the worst of the rednecks and all of them are racists. I don't know why they come down here---they are definitely not welcome by anyone.

Sorry to bring this news, but trouble brews where ever the gringos land                 

It is quite depressing               om

Sat, 03/03/2012 - 20:20 | 2220560 debtandtaxes
debtandtaxes's picture

Sounds to me like someone's trying to convince us that:

1.  it's the government's fault and not the bankers

2.  no need for the citizenry to act because our politicians will - someday

I call bullshit!

Sat, 03/03/2012 - 20:45 | 2220595 ISEEIT
ISEEIT's picture

Yeah?

Well then eat your "bullshit". The government is the pimp, the banksters are the pussy, and YOU are the john.. So fuck off.

Sun, 03/04/2012 - 16:05 | 2222269 debtandtaxes
debtandtaxes's picture

@ISEEIT

when you are capable of something more advanced than an ad hominum attack, let me know.  Sweetie.

Sat, 03/03/2012 - 20:28 | 2220568 jmcadg
jmcadg's picture

I beg to differ. I personally despise Bankers more than Central Bankers.

I want Dimon, Blankfein et al's balls on a rope. Only then do I want to go after the Bernanke and his quivering lip.

But be under no illusion that the smarmy politicans aren't also fair game. 

I want them all. But I want Jamie first :)

Sat, 03/03/2012 - 20:32 | 2220576 eddiebe
eddiebe's picture

jm, good luck with all that, you'll need all of that and then some.

Sat, 03/03/2012 - 21:40 | 2220663 xela2200
xela2200's picture

Central banks are like weeds. You can pull them, but they always seem to grow back when you are not looking. That describes civilizitation relation's to banks in General. Including Templars who were the debt holders of the time. Those crusades were expensive afterall.

Hitler was financed by Jewish bankers who thought it was best to buy him out. He turned on them and then some. Hitler knew that he needed to take bankers out of the picture if he was to have absolute power. Then, Hitler defaulted on Germany's WWI reparations. It would have been interesting to see what would have happened if Credit Default Swaps would have existed at the time.

So, the moral of the story, aside from don't declare war on the whole planet, is the faster we all do an Iceland, the better we will be.

Sat, 03/03/2012 - 21:39 | 2220666 chump666
chump666's picture

The FED is bad, real bad.  But the ECB takes the cake, it is now operating like a governing body.  OWS2 Europe style, someone is going to lose an eye....or a head.

Sat, 03/03/2012 - 21:59 | 2220710 Yen Cross
Yen Cross's picture

 The girth of Shit Holyness is in another bank EiS. The clearing house for the ( BiS ) I shit you not!

Sat, 03/03/2012 - 22:57 | 2220817 Hugo Chavez
Hugo Chavez's picture

It looks like "the rich" are to be marginalized and brutalized.

If you consider someone "rich" who rose from middle class or lower background to the top five percent and brutalize them, then you are letting people know that hard work and productivity will be punished.

Sun, 03/04/2012 - 00:16 | 2220963 Sandmann
Sandmann's picture

for Hitler it was the Jews

Actually not in the way you suggest. The  "National" part of the movement demonised the "Bolshevik-Marxist Jew" that had orchestrated the Leninist takeover and threatened Germany 1918-33 with uprisings in 1923 inside Germany; and those Jewish politicians who signed the Versailles Treaty. The "Socialist" part of the movement blamed "Jewish Speculators"  for their financial engineering in the 1920s and their role in Wall Street banking.  So really it approached the issue from two angles; simply expropriating Jewish wealth would not explain why large numbers of Jews affected were dirt poor immigrants from Poland which had itself removed their passports rendering them stateless.

Sun, 03/04/2012 - 04:31 | 2221322 trauma
trauma's picture

Look a little further back into 20th Century German and Russian history to get the full picture of why Germany followed the path it did.

The Russian Revolution of 1917 was the 2nd attempt by non Russian elements representing the Monied interests to take out the Tsar.  The first attempt was earlier by 5+ years and it faiiled causing the instigators to flee and they were received with open arms in Germany who sheltered them and provided assistance.

Then, 1916, after Germany had fought Brittain and France to a stand still and offered peace terms which were quite reasonable, the monied interests approached the Brittish with the Balfour Declataion telling the Brits to stay the course in the war and they would bring the USA into the war but at a cost of Brittish Palestine as their "new homeland" aka Israel.  The Brits did as requested but turned on the monied interests in the Versailles treaty but France crippled Germany and Austria with that same treaty setting the stage for the anarchy to follow through the 20's.

When the National Socialists came into power in the 30's they decoupled from Global Western finance and in 33 Global Western  Finance declared war on Germany.

Also remember that it was not the Wiemar Government of Germany in the 20's that ran the German Central bank, the Central Bank was a private afair just like the US Fed Reserve is today and it was this bank that destroyed German Gurrency worth leading to hyper inflation.  Also ask yourselves who had the National Solcialists fought for a decade to obtain power in Germany?  Who was it they represented to the east? Can you blame them for being a little paranoid especially with the communist attrocities committed in the East of Europe and in Spain during the civil war?

Just wanting some perspective.  I see the USA being set up as the Historic Germany of today by the same folks.  I would not wish that on any people and the sooner the monied interests in the West are contained and brought to justice, the better for the whole world.

Sun, 03/04/2012 - 10:43 | 2221549 Sandmann
Sandmann's picture

which were quite reasonable

 

Such as retaining Belgium knowing full well that the port of Antwerp is the knife at England's throat. and that the 1839 Treaty of London guaranteed Belgian neutrality. If that is "reasonable" they deserved to fight another 2 years. 

 

Industrial exploitation of ABE fermentation started in 1916 with Chaim Weizmann's isolation of Clostridium acetobutylicum, as described in U.S. patent 1315585  had more to do with the Balfour Declaration than anything else as Acetone was essential in production of Cordite and Balfour had been MP for Manchester East where Weizmann lectured at University of Manchester

Mon, 03/05/2012 - 13:25 | 2224315 forexskin
forexskin's picture

Industrial exploitation of ABE fermentation started in 1916 with Chaim Weizmann's isolation of Clostridium acetobutylicum, as described in U.S. patent 1315585  had more to do with the Balfour Declaration than anything else as Acetone was essential in production of Cordite and Balfour had been MP for Manchester East where Weizmann lectured at University of Manchester

 

here we have the 'official sanitized for historic consumption' version, which reduces to mere opinion, but with wikipedia sanction, making it immediately suspect.

Sun, 03/04/2012 - 01:16 | 2221048 EZYJET PILOT
EZYJET PILOT's picture

The politicians are puppets, they don't allow anything, the banksters make the rules. It's not central bankers that are the problem its jamie dimon etc, they tell the central bankers what to do. 

Sun, 03/04/2012 - 03:49 | 2221271 Sandmann
Sandmann's picture

They have taken control of the water supply and are exploiting everyone in the valley as the weak-kneed town administrators kow-tow for bribes

Sun, 03/04/2012 - 03:56 | 2221282 Peter K
Peter K's picture

If the commonly used example of certainty is death and taxes, a third one needs to be added the this distinguished pantheon. And that is " The whacko, crazytown, tinfoil hatted nutjobs come out on the ZH blog on the weekends". The below is a good case in point:

Because if there is one specific reason why OccupyX never truly got off the ground is that deep down, the population knows that while bankers are to be despised for their "contributions" to society, they would never have the opportunity to do what they do absent the enabling stance of the "democratically" elected politicians, and more importantly, the deeds of those few academics stuck in a dark room, who daily decide the nominal fate of the world courtesy of money printing.

Well, in all reality, the bankers would not be despised if it were not for the politicians who get elected, spend more of the public's money than they take in, and then go to the bankers to borrow. If there is a genesis for the present crisis, it squarely falls on the Clinton administration and their affordable housing legislation, which basically decoupled the loan from the ability to pay.

But back to the larger point, I guess if one's a closet Marxist, it is only logical to try and deflect the blame from the politically aligned group (i.e. profligate politicians) and on to a scapegoat. And in this context, the analogies of Hitler/Jews, Charles IV/Templars, Diocletian/Christians etc. are spot on.

Notice how the author forgets Stalin/kulaks and Mao/peasants in the list. I guess that would just hit too close to home.  

Sun, 03/04/2012 - 16:19 | 2222301 debtandtaxes
debtandtaxes's picture

Our governments could print their own interest-free money. But our politicians ARE BANKERS! They are elected after working at banks or lobbying for banks or being lawyers from banks. And the politicians are helping move our tax $$ from the treasurey (which should spend OUR $ on stuff for all of us - infrastructure, services to encourage real manufacturing and jobs, and medical care.) Instead they are borrowing at interest from their old friends so our tax$ are spent paying back interest to their friends - and they get a cut, too of course + campaign contributions and insider trading tips.

Before the 70's Canada borrowed only from its nationalized central bank - interest free.  In canada from 1970 -1992 our government had borrowed 37 billion. The interest AND ONLY THE INTEREST was at 423 billion.

Its called corruption, people.  The politicians ARE BANKERS.  And they should be arrested and tried for corruption and treason.

 

Sun, 03/04/2012 - 04:01 | 2221289 TRN
TRN's picture

The sequence is right:

Politicos take out the central bankers

The people take out the politicos...

Sun, 03/04/2012 - 05:43 | 2221366 Olympia
Olympia's picture

World War III - The First Private War in History

 

Those who won all battles shall lose the war.

Bilderberg Group and the crimes against humanity.

 

This is how things work in all countries. Whatever used to belong to their people, today it belongs to the multinational companies of the Club. People were betrayed by their given leaderships and they lost everything. Capitals and markets were handed to the Club bosses. If you understand what is going on in Greece, you can understand what is going on in Britain, France, and Germany etc..

 

http://eamb-ydrohoos.blogspot.com/2012/02/world-war-iii.html

 

Authored by PANAGIOTIS TRAIANOU

Sun, 03/04/2012 - 09:13 | 2221484 putaipan
putaipan's picture

heck of a diatribe ! many green big-ups to you !

Sun, 03/04/2012 - 09:45 | 2221509 dcb
dcb's picture

letter I wrote to the nyimes this AM. Thought it fit ion with this topic.

Kudos for Ms. Morgenson for being one of the few writers on the NY times staff who doesn't give a free pass to the federal reserve. Ms. Morgenson does a great job writing about how the transmission mechanism of fed monetary policy does not get transmitted to the public. "“She blithely assumes that everyone who could refinance their mortgages at current interest rates has done so,” Mr. Todd said. “She ignores effects of credit scoring and outrageous fees banks are charging for those refinancings".

Lets be honest, Ms. Morgenson could have talked about credit card rates and fees as well, the difficulty getting small business loans, etc, etc, etc. I must voice a formal complaint to the nytimes editorial staff because when Mr. Krugman always points out how we need loose monetary policy I point out the transmission mechanism is where the flaw lies, but Mr. Krugman nor any other editorial writer addresses this issue. As usual economists think market structure is a topic beneath them that can be ignored, when it is in fact the single most important aspect of economics. Correct policy without proper structure to implement the policy fails. As someone who reads a great deal of economic papers there seems to be only one major economic figure who talks about market structure, Andrew Haldane, who is never mentioned in the NYtimes, while the same who's who of economic commentators is always talked about in the times. The ny times in regards to economic commentary has been stuck in the dark ages for years.

Back to the article in question;

Had Ms. Morgenson written the piece with a more critical eye, she could have pointed out why someone like Ms. Bloom Raskin in fact should not be in any official position of power, nor anyone like her.

"She said that less than 7 percent of household assets were held directly in certificates of deposit, savings bonds and the like. “Instead, the bulk of household wealth is held in stocks, retirement accounts, business equity and real estate,” she said. “For these other types of assets, rates of return depend primarily on the strength of the economy and how fast the economy is growing. Thus, these returns should be supported, over time, by the accommodative monetary policy that we have in place.”

40% of household wealth is held by the top 1% of wealthy, so her statement should prove to all that the wealthy receive the most benefit from accommodative policy. In addition, wealth is unevenly distributed, with the wealthiest 25% of US households owning 87%[2] of the wealth in the United States, which was $54.2 trillion in 2009.[3][4] While these assets are unequally distributed, financial assets are much more unequal. In 2004, the top 1% controlled 50.3% of the financial assets while the bottom 90% only held 14.4% of the total US financial assets.[6]
http://en.wikipedia.org/wiki/Wealth_in_the_United_S…

The above statistics clearly prove that the intent of federal reserve policy is to help the wealthy, If Ms. Bloom Raskin was interested in helping the majority her use of statistics would have clearly shown the flaw of her logic. Ms. Morgenson should have pointed this out if was aware of this statistic. Again a big thumbs down to Mr. Krugman the "economist" who always fails to mention that fed policy with the current flawed transmission mechanism benefits the wealthy much much more than the rest of the population.

I do no know what level of statistical data has to be given to the NYtimes in order for their editorial staff to point out the obvious, but at least allow someone the editorial space to point out the opposition view along with the data.

 

Sun, 03/04/2012 - 10:29 | 2221544 Sandmann
Sandmann's picture

I point out the transmission mechanism is where the flaw lies

EXCELLENT !!   The whole system is INSIDE MONEY because it is the favoured few in the banking system that are rewarded NOT the Public.

 

It would have been better to have bought Credit Card Receivables under TARP and to have cancelled them for Card holders than simply to give the Banks money to extract higher interest rates from existing borrowers.

 

Your posting is one of the few to address the KEY ISSUE instead of general political babble

Sun, 03/04/2012 - 16:25 | 2222316 covert
covert's picture

not likely anythime soon.

http://expose2.wordpress.com

 

Sun, 03/04/2012 - 18:41 | 2222574 falak pema
falak pema's picture

Marginalise then brutalize...

There are certain groups that need to be marginalised and then made to pay for their own brutality in due process of law.

But the examples given in this article are of despotic states/dictators choosing scapegoats; often innocent minority groups. Lets not mix poweful corrupt elite groups who need to be punished with the poor innocent historical bogey men of pathologically minded dictators. 

The closest analogy to Banksta crowd today are the Knights Templar; they were both militarist elitist shills in a colonial and ideological cleansing adventure AND unscrupulous bankers. But they deserved a fair trial...not to burn as heretics. Even Hitler deserved that if we respect our own rules of society. If we go into race to bottom then we are like the despots ourselves...And, Machiavelli wrote about a very decadent period in the heart of the Papal estate, the seat of God's religion; no place for honest men. A bit like DC today, where Potus is more and more a Borgia type leader. We are in decadent spiral and tipping moment in western civilization. Just like in Machiavelli's days.

As for the situation being unsustainable in Japan as in Euro land, it is same in exorbitant privilege land. Wool over one's eyes ...when you finger point at others. Its a similar situation all over; its the Reaganistic model and the whole world has bought into it. Mind set is corrupted everywhere. Nobody wants to face the fire. 

Do NOT follow this link or you will be banned from the site!