Our Future's In the Hands of the World's Central Banks

Adam Taggart
By Adam Taggart on Sat, May 4, 2013 - 10:06am

A Canadian documentary explores the repercussions of globally-coordinated quantitative easing (aka, printing gobs of thin-air money).

For those uncomfortable having their financial future in the hands of a few unelected, opaque policymakers, who's primary answer to pointed questions is "trust us" (despite having a poor track record of projecting the economy, particularly the formation of asset bubbles) -- you may want to skip this one...

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6 Comments

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Crisis? What crisis?

Let me float this idea.

Modern Capitalism is motivated by debt. The reason why Joe Lunchbucket drags his sorry carcase out of bed in the morning is that he is a debt slave.

(OK, So you are the exception. Granted)

The whole system runs on debt. Not on money. If Joe was paid adequately he might save money and lose his motivation. The other down-side to savings is that they are a liability on the Banks books.

And then there is the issue of the velocity of money. If Joe parks his money in the bank for the pleasure of watching it grow, the velocity of money slows.

The Cyprus affair was designed to frighten money out of savings.

The next shoe to drop will be to change the face of the note so that paper under the mattrass is in effect, time limited. It will only be money while the central bankers say it is money.

This is all fine and dandy so long as all the Lunchbuckets agree that money is what the bankers say it is. But what would happen if they decided something else was money? Like say, Gold, for example. The code breaking skills of Quantum computing will make short work of Bit Coin. 

The reason that they will never effect a debt Jubilee a la Steve Keen, is not because of some moral nicety, but precicely because everyone would get out of debt. And debt is the whip.

From the bankers point of view, there is no crisis. They have Joe exactly where they want him.

Did I mention Oil?

Peter Smith's picture
Peter Smith
Status: Bronze Member (Offline)
Joined: Mar 28 2009
Posts: 41
Not JUST Joe Lunchbucket but

Not JUST Joe Lunchbucket but also Joe Entire Country through theri corrupt governments! 

SingleSpeak's picture
SingleSpeak
Status: Platinum Member (Offline)
Joined: Dec 1 2008
Posts: 503
Mark Carney

has convinced himself that transferring wealth from the prudent to the wreckless through currency debasement is an honorable path. He hasn't convinced me.

He and his ilk need stand aside and let the market find its own equilibrium, instead of trying to command it to behave in ways that suit the status quo favorably.

It's kind of like trying to keep the earth from splitting in an earthquake. You may be able to apply ungodly amounts of stolen cement above the fault line and delay the damage for a while. It may even appear to some that you have solved the problem entirely, therefore seemingly justifying your theft, as if there could be justification. But in reality you've solved nothing..... you never possessed the power in the first place, and mother nature will prevail as she always does. 

SS

  

treebeard's picture
treebeard
Status: Platinum Member (Offline)
Joined: Apr 18 2010
Posts: 605
Justification

Interesting to listen to the rationalizations.  The story almost sounded like real journalism, it got pretty close, I was some what impressed by this mainstream story.  It is apparent The central bankers really do believe they are doing gods work. Hardship is OK for savers, but don't ask them to chip in.  If we don't live in luxury we can't keep our minds clear to solve your problems. We all know that Joe Lunchbucket can't figure this out on his own, or is he?  Question is when will Joe L meet the 100th monkey?  Can anyone here arrange the introduction?

I think they are trying to keep the game going in the belief of some sort of silver bullet solution is around the corner.  I would guess that they really do believe their own BS.   The description is not the thing described.  The team is losing and the're trying to solve the problem by taking apart the electronic score board. If you are a hammer, every problem looks like a nail. Wait a minute, I think that I have a few more lame analogies kicking around here somewhere.  Well a penny saved is a penny earned sure as heck doesn't apply any more.  How about some outside the box thinking fellas.

Wendy S. Delmater's picture
Wendy S. Delmater
Status: Diamond Member (Offline)
Joined: Dec 13 2009
Posts: 1988
SingleSpeak, that's why

SingleSpeak, that's why our investments were things like an airtight woodburning stove, insulation, a huge garden, solar hot water, etc. Everything else except tangible, sustainable things is rigged.

Poet's picture
Poet
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1891
Do The Math (It Doesn't Add Up), Presentation By Grant Williams

If you want to add this to the Daily Digest, please feel free...

Why are stocks/equities are so high when all the economic general indicators are collapsing? Check out this video. Well worth watching at least several minutes of. Covers China, France, gold prices, etc.

Do The Math (May 24, 2013 on YouTube)
"My recent presentation to the 66th Annual CFA Conference in Singapore in which I discuss the disconnect between financial markets and mathematical reality."
http://www.youtube.com/watch?feature=player_detailpage&v=Osq1yxSFVG0#t=405s

 

Link above is to the presentation starting at 6 minutes, 45 seconds, when the actual presentation starts after a loooooong preamble. Actual full link is below (recommend skipping to the above starting point mentioned):

Poet

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