Saturday, January 19, 2013

Mine the economy, leave before the explosions damage your CV

How central banking works

Our new BoE governor (£874k p.a) is leaving the BoCanada just as Canada's housing market wilts and the its economy goes into recession. But why did so many economies blow bubbles, and produce similar 'remedies', at the same time? Central bankers meet regularly and the writer argues that blowing bubbles, was part of a bigger plan, centred on them, to restructure economies in favour of the wealthy.

Posted by icarus @ 11:22 AM (1739 views)
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4 thoughts on “Mine the economy, leave before the explosions damage your CV

  • “Of course, it’s all just a coincidence, because to suggest otherwise would be positively conspiratorial, right?”

    Wrong. For starters, the Japanese property bubble peaked almost two decades before the American property bubble so those particular “correlated housing bubbles” are separated by a non-trivial time. Canada and Austrlia’s property corrections have hardly started while Spain and Ireland are clearly well over their peak.

    For political reasons, We are currently seeing co-ordinated currency depreciation across the globe by Western nations in an attempt to stimulate exports. Whether this “currency war” competetive devaluation is right or wrong, there is no need to invoke conspiracy theory explanations – it is just a consequence of the way that central banks react to each other’s attempts to boost exports.

    The banks screwed up on an epic scale and have used political influence to avoid the consequences of their actions whenever possible – that should be the lesson to take away.

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  • It’s hard to believe there is an intentional conspiracy to rig economies in this way, if only that too many people would be involved to keep it coherent. However, it is plain that economies favour the wealthy because the wealthy have all the political and economic power, and can thus keep things the way they want. By default, the economy is indeed like this. The real conspiracy, unspoken and unrealised, is all those who support the politics even as they are disadvantaged by them.

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  • A conspiracy theory ceases to be a conspiracy theory when there is documented evidence of it – then it’s just a documented conspiracy … The salient facts presented here are the existence of the “economic consultative committee” consisting of 18 of the world’s top central bankers meeting every 2 months. Secondly statements by King to the effect that it’s easy to get things agreed there (that impact massively on national economies), thirdly that central banks have political independence (read lack of democractic accountability). They could have added that they all share a background in the financial sector and therefore a tendency towards prioritising its interests. Is this that far off a documented conspiracy?

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  • why did they create bubbles for the corrupt ministers running countries of course, keep the illusion of wealth running longer to keep certain people in power.

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