News & Analysis
Bloomberg: The Ascent of Whatever-It-Takes Banking Is a Good Thing
As the world's advanced economies grow at half the speed of the pre-crisis years amid persistently high unemployment, governments are turning to a new set of monetary-policy makers who in word -- and they hope deed -- are more aggressive than their predecessors. A revolution that began with the arrival in November 2011 of Mario Draghi at the European Central Bank now is gathering speed as Canada's Mark Carney joins the Bank of England and the Bank of Japan awaits a new governor. The shift could culminate a year from now if Federal Reserve Chairman Ben S. Bernanke is succeeded by someone even bolder. – Bloomberg
Dominant Social Theme: The new breed of bankers should do whatever they like, so long as it is radical and pumps yet more money into dormant economies.
Free-Market Analysis: Just when we think the meme of the all-knowing central banker can get no worse, we learn otherwise. Today's central banker, Bloomberg tells us, is supposed to be a reckless gunslinger, taking chances because there is little left to lose.
Do you feel better now?
The changing of the guard reflects both a need for central banks to offset fiscal paralysis and a bet that monetary policy remains a potent force. At the same time, investors are increasingly weighing the costs and benefits of quantitative easing, while suggesting too much is expected of central banks.
The appointments of activists "reflect the case that economies are still struggling to sustain solid recoveries and there's pressure from political quarters to be more stimulative," said Nathan Sheets, a former adviser to Bernanke and now global head of international economics at Citigroup Inc. in New York. "Central banks have stuff in the
The aggressiveness -- actual or anticipated -- already is affecting markets. The euro is up 9.5 percent against the dollar since Draghi's July 26 vow to defend the single currency, and the yield on Spain's 10-year bond has fallen more than two percentage points to 5.2 percent since July 24.
The Japanese yen is down about 15 percent compared with the dollar since mid-November in anticipation of new Prime Minister Shinzo Abe's plans to refocus the Bank of Japan on beating deflation. U.K. inflation expectations are near the highest since April 2011 amid speculation that Carney, currently the Bank of Canada governor, will spur prices.
The promotion of policy makers who support stimulus encourages the recent pivot away from bonds and into riskier assets such as stocks, said Andrew Milligan, head of global strategy at Edinburgh-based Standard Life Investments Ltd. It also is forcing investors to consider ways to protect themselves against long-term price pressures through inflation-protected bonds and real estate, he said.
"Central bankers have begun to redefine what their role is, moving away from inflation targeting toward sustaining the health of the financial system, indeed the wider economy," said Milligan. "New policy makers may bring in new tools, ones which global investors will need to understand quickly."
This is actually a somewhat unexpected evolution, given the amount of criticism that central banking has received in the past five years since the 2007-2008 financial crash. But this evolution is also in a way expected, given that central banking is not a normal activity but an elite dominant social theme.
Without central banks, an evident and obvious power elite that wants to create an official world government would not be able to fund its world-straddling activities. It takes incomprehensible amounts of money to create the kind of directed history that can change the world.
Central banks provide the necessary funding but central banking is a delicate and dangerous activity. Central bankers can NEVER tell how much money ought to circulate in an economy and they can never tell what the value of that money ought to be – but they are regularly called on to make both decisions.
This process provides two results. First, it impresses on people that there is indeed a technocratic elite that has the right to print trillions while most people juggle tens and hundreds. Second, the inevitable failures of monetary policy are intensely destabilizing, which provides an ongoing level of chaos that allows the top elites to create evermore globalist facilities in response.
What we call the Internet Reformation has begun to thoroughly expose central banking ... And yet, because it is an elite meme, it persists. Global warming, the war on terror, vaccine safety – all have been serially debunked over and over in the past ten years but each meme – and many more – continues because the elite that have proposed them and cultivated them won't let them wither away.
No matter how many times global warming is debunked – or at least manmade global warming – the political class grinds ahead, proposing carbon taxes to combat a problem that doesn't exist. Even top military men admit that Al Qaeda hardly survives, if it ever did. Nonetheless, half of Africa is afire with smoldering warfare aimed at these ghostly combatants.
And when it comes to central banking, well ... it's been proven over and over that central bankers have no idea what they're doing. Ben Bernanke was confidently asserting there was no problem with home mortages right before the subprime mortgage bust of 2007 set off a worldwide crisis.
They are always wrong – and always the solution is to give them more power and more ... latitude. That's what is happening now, in fact. Since central bankers have not been able to right the ship that they themselves capsized, we need to help them right it and then give them a still-larger boat with yet more powerful screws.
Thanks to Bloomberg for explaining this. We didn't realize the reaction to criticism that central bankers were rash and their strategic destabilizing would result in a worldwide movement of even MORE activist bankers.
The doors are rotating worldwide. Carney's transfer creates a vacancy in Ottawa, and Glenn Stevens's term at the Reserve Bank of Australia ends in September. Among the major emerging markets, Sergey Ignatiev retires in June as chairman of Russia's central bank, the tenure of India's Duvvuri Subbarao ends in September and China is signaling it will replace Zhou Xiaochuan as soon as next month.
Recently published research from University of California- Berkeley economists Christina D. Romer and David H. Romer supports faith in monetary policy. They conclude that the Fed made its biggest mistakes during the Depression of the 1930s and inflation of the 1970s because officials doubted their true power.
Okay, you've read it for yourselves now. A "new breed" of banker is emerging that will grasp the true power of the printing press and pump harder...
The lesson is to keep pumping and be more innovative if needed, said Danny Gabay, a director of Fathom Consulting in London. He calculates that fiscal policy, the other main lever of economic management, was eased 15 times in Japan since 1997, to little avail. "What we have now is a monetary problem, so it's time for a monetary solution," said Gabay, a former Bank of England official. "It's tough to make monetary policy effective, but it's the only way."
Yet it simply must be admitted that central bankers don't ever know how much money is too much. There are no tools that exist that can divine the future. If new and bolder central bankers are going to print even MORE money, the booms and busts shall be correspondingly larger.
This would seem to be an illogical solution, but in truth, not so. The power elite seeks these tremendous societal distortions and terrible busts. These provide the opportunity for radical change and the implementation of yet more globalist policies. Chaos advances a new order.
Conclusion: Enter Bernanke, Draghi, Carney and Abe, the four horsemen of the financial apocalypse.
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Posted by taxesbyanyothername on 02/15/13 11:51 PM
@dave jr
I don't see it that way Dave. There has been speculation, even here, that the Georgia Guide Stones are just to spook us. So much of modern propaganda (I can not in all honesty call it anything more honest, it might as well be brain washing) is just to creat fear in the general population that the other purposes are often very difficult, if not impossible to discern. If you look back far enough and do a little sifting, this one is quite clear.
David Rockefeller founds The Club of Rome in 1968
The limits to growth in 1972
Roe v Wade in 1973
Several special editions of Scientific American dealing with population, resources etc. in the mid to late seventies.
Hard push for normalization of homosexuality in the 80s
Just as for same sex marriage now.
Massive preparation for "civil unrest", which to me does not at all seem like logical preparation for unrest. It seems to me that they are doing all that they can to ensure massive unrest, infact to guaranty rebellion. The preparations they have made and are still making are not to quell unrest, they are to kill massive numbers of people and dispose of their bodies. Just as all of these other preparations were to eliminate people. I guess robots etc. have advanced far enough that they don't feel that they need many of us any more. Useless eaters. Of course, that is exactly what they have turned many of us into.
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Posted by amanfromMars on 02/15/13 11:50 PM
"…. the stimulus isn't working, the monoculture is failing and they need new experts and tools." …. Posted by dave jr on 02/15/13 08:10 AM
And aint that the gospel truth, dave jr.
And whenever you know that new experts and tools to ensure that stimuli will work and create a novel megaculture are readily available to them, does one realise that their intelligence supply is failing them …. or more kindly, that they are slow to decide on their failures and admit new experts and tools into their magic circle, in probably self-righteous indignant fear, lest their secrets of control for power be blown and made known to the rabid hordes.
Methinks, however, that ever present real and virtual danger is much more likely a catastrophic event to be perpetrated by those who be worthy but denied access because they have new expertise and tools. Indeed, it would be a certifiable madness and monumental systemic vulnerability for ruthless exploitation, not to expect it to be a crashing, crushing inevitability in that particular and peculiar case.
Be they so crazy? Be they so stupid whenever needs and feeds and seeds require that they be smarter and so much cleverer for fields of Cyber Command and IT Control SMARTR Enabled in and for Computers and Communications/Virtual Machine Infrastructure …… which be the New Age Powers', Control Exoskeleton?
Is the Exotic Erotic East similarly afflicted and effected and paralysed in inaction? Or are they just not yet properly and fully advised of that which is freely available from new experts and tools?
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Posted by free on 02/15/13 04:39 PM
Just to let you know i cant share this articel in groups on linkedin
strange
Reply from The Daily Bell
Thanks.
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Posted by dave jr on 02/15/13 08:10 AM
@ taxesbyanyothername
"It is not madness, and it has not failed. It is destroying the economy but that is one of their objectives."
In trying to see it from the elite perspective, in order to understand how and why... I don't think it's so much trying to destroy, although they are getting that result; rather they are attempting to capture, corral, control and weed and plant in neat rows. They see 'we the economy' as something to domesticate to perfect for harvest. We are crop and cattle to them, to be seperated from a barbaric wild.
Government serves as hired hands to shoot the wolves, fox and weasels, erect fences as well as feed the chickens, milk the cows and slop the hogs.
Boom / bust cycles are an artificial amplification of the natural business cycle which benefits them. First by inflation, then by deflation...
We may be near the bottom of a cycle and the harvest wasn't that great, too many mouths to feed and the stimulus isn't working, the monoculture is failing and they need new experts and tools.
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Posted by amanfromMars on 02/15/13 05:49 AM
And Daily Bell, as a leading commentator on Power Elites and New World Order Systems and Dominant Memes, which would surely have their many Smart and Covert, Dark and Clandestine Programs and Projects, given the nature of the beasts and phantoms that it battles, is the field of Simply Complex Human Control, for that is what is being talked about here, fundamentally and radically changed from that which has gone before, is advised as being not unknown and having an active and HyperRadioProActive base in the AIMagic of IT and Media Virtualisation with the Command and Control of Computers and Communications in Creative CyberSpace and CHAOSystems [Clouds Hosting Advanced Operating Systems] for AIRemote Virtual Control with an Absolute Sovereign Power Network, and would be confirmed by the following statements from a retiring US Defense Secretary, Leon E. Panetta, to a Washington/Pentagon audience, albeit being referenced to in another novel and very specific theatre of remote controlled virtual operations? ……
"I've seen firsthand how modern tools like remotely piloted platforms and cybersystems have changed the way wars are fought,' Mr. Panetta said, citing his tenure as director of the C.I.A. and his tour at the Pentagon. 'And they've given our men and women the ability to engage the enemy and change the course of battle even from afar.' ….. Click to view link
….. which is shared here as a question for those who would choose not to believe such fantastic tales are so easily possible and are de facto, present disruptive fare in modern effective remote global systems of event management, which be akin to a glorified product placement of dynamically changed and changeable realities.
Welcome to New Orderly World Programs, DB, which obviously are also gonna be deeply involved in a New Age with Banking in support of ITs Chief Bankers and convenient money systems in exchange for and encouragement of the continuous supply of necessary goods and desirable services, both most basic and advanced, and the Greater Intelligence which provides IT all.
And quite perfect, methinks, for the Advancement of Free-Market Thinking Foundations.
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Posted by DaveM on 02/15/13 01:33 AM
Bloomberg's assesment of Carney is a bit off. The per capita amount of "quantative easing" in Canada was a small fraction of what the US or the EU did. It was only with great reluctance it happened at all.
The reserve ratios of Canadin banks and participation in the derivitaves market is nothing like you see in the US or Europe.
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Posted by amanfromMars on 02/15/13 01:00 AM
Okay, you've read it for yourselves now. A "new breed" of banker is emerging that will grasp the true power of the printing press and pump harder...
Yet it simply must be admitted that central bankers don't ever know how much money is too much. There are no tools that exist that can divine the future. If new and bolder central bankers are going to print even MORE money, the booms and busts shall be correspondingly larger.
This would seem to be an illogical solution, but in truth, not so. The power elite seeks these tremendous societal distortions and terrible busts. These provide the opportunity for radical change and the implementation of yet more globalist policies. Chaos advances a new order.
----
Indeed, DB, there is emerged a "new breed" of banker, who be advised that the future is easily known and realised, and control of its direction and events portfolios CAN be bought/influenced/agreed upon with a transfer of digits representing sums of freely available to spend flash cash monies to a numbered working current account, for there is no doubting the relatively anonymous freedom such globally available 24/7/365 stashes deliver to parties privy to the programs being perpetrated.
And it is most convenient that such a simple operation which be sanctioned from the very top of the command and control tree of the central banking system to ensure a perfect working and glitch free supply, would then offers to the banking system/the "new breed" of banker, a remote proxy power in future events which being programmed for future realisation, via the …. well, the AIMagic of IT and Media Virtualisation with the Command and Control of Computers and Communications in Creative CyberSpace and CHAOSystems [Clouds Hosting Advanced Operating Systems, is not something you need to know anything more about unless actively engaged in Live Operational Virtual Environment Field and in AI Research and digital Development of Secure and Protected Field States.
It just suffices that one knows such facilities exist and they be securely sublimely protected and perfectly immaculately defended by IntelAIgent Design.
And I just love that last paragraph ….. "This would seem to be an illogical solution, but in truth, not so. The power elite seeks these tremendous societal distortions and terrible busts. These provide the opportunity for radical change and the implementation of yet more globalist policies. Chaos advances a new order."
…. for does it not wonderfully mirror and surprisingly support a parallel alien view with alternate realities, which are futures and derivatives in and of those futures, being transparently shared here in plain text sight after presentation and realisation elsewhere, earlier, to others in other fields of peculiar and particular interest? …….. Click to view link ….. and the developments in the field since that date, and it was only a few days ago, would astound you, such is the pace of discovery because of what has been learned.
Please note though, that in any comparative testing of powers generated in scenarios where chaos advances a new order and/or CHAOSystems provide New Orderly Worlds, only one supplies AIRemote Virtual Control with an Absolute Sovereign Power Network for a New World Order in Immaculate Control of Advanced Chaos ……. which makes that "new breed" of bankers and power elite brokers, DB, more powerful than ever before, and way beyond the control of simple mortal man, should they be funding it in such a simple operation with a transfer of digits representing sums of freely available to spend flash cash monies to a numbered working current account. So Simple, So Sublime.
Have the courage of your convictions in the Internet Reformation having changed everything, DB, and realise that the changes are radical and fundamental and nothing will be ever as it once was before, again, and New Orderly Worlds have emerged and are merging in a New World Order with Power Elite Programs.
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Posted by 1776 on 02/14/13 09:58 PM
Then you add the politicians who play the government schooled people out there in fly over country!
How The Democrats Caused The Financial Crisis: Starring Bill Clinton's HUD Secretary Andrew Cuomo And Barack Obama; With Special Guest Appearances By Bill Clinton And Jimmy Carter
Click to view link
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Posted by Justin on 02/14/13 09:34 PM
Central banks are not funding anything, there is no money. They are scamming with bad credit.
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Posted by juajuara on 02/14/13 08:51 PM
Carney a horsemen? In the immortal, well just to me, words of WEB Griffith, "he couldn't find his a** with both hands." Dunno, maybe a horseman can be a tool.
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Posted by 1776 on 02/14/13 06:56 PM
Money - A Brief History Of The American Dollar - Part 1 of 2
Click to view link
Reply from The Daily Bell
Thanks.
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Posted by redickd on 02/14/13 06:19 PM
With gold as money (OK to also have redeemable paper notes and metal tokens) the value per gram APPRECIATES as GDP grows with a fixed gold supply, and vice-versa. It is automatic 'supply and demand'. High school econ 101. It's all in my book 'Monetary Revolution USA' on Click to view link, or the left margin of my site Click to view link.
Enjoy, Dave
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Posted by taxesbyanyothername on 02/14/13 02:08 PM
@Frank
It is not madness, and it has not failed. It is destroying the economy but that is one of their objectives. Their other main purpose is to keep the charade going as long as possible, so that they can steal as much as possible.
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Posted by Frank on 02/14/13 01:49 PM
"... when it comes to central banking, well ... it's been proven over and over that central bankers have no idea what they're doing." -DB above
That about sums it up! Can't Ivy League top professors in economics & monetary systems see all the failures of big government, Keynesian economics & fiat debt-based money? Don't they learn from their mistakes & wrong projections?
Madness! They keep doing more of what has already failed.
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Posted by amanfromMars on 02/14/13 12:41 PM
The trick the new masters of fiat currency supply have to perfect, is ensure that those who can make its spending generate energy and industry are provided with all that they need. And those who would know that trick, would be able to supply their new masters of fiat currency supply with the sums which are needed/desired ... ... which would be novel mutually beneficial arrangement to guarantee future success.
Although I can see some asking who be the master and who be the server in that relationship, to be immediately answered with the obvious reply of it being a loving marriage of convenience and equals to spawn a new family of growing opportunities.
Giving largesse to institutions [individuals by another name] who don't spend it, or buy up crap which nobody wants, like toxic debt CDOs and fantasy bonds etc., is never going to generate anything but greater grief and system collapse, which appears to have been the system's modus operandi/vivendi for the past long while.
Who ever thought that was gonna be a great idea to solve anything? It is a certifiable notion, methinks, worthy of the insane asylum.
