STAFF NEWS & ANALYSIS
Central Bank Narrative Grinds On via AP
By Staff News & Analysis - October 02, 2012

Ben Bernanke makes strong defense of Federal Reserve's rate policies … Chairman Ben Bernanke offered a wide-ranging defense of the Federal Reserve's aggressive policies to stimulate the still-weak economy. The Fed needs to drive down long-term borrowing rates because the economy isn't growing fast enough to reduce high unemployment, Bernanke said in a speech to the Economic Club of Indiana. The unemployment rate is 8.1 per cent. Low rates could also help shrink the federal budget deficit by easing the government's borrowing costs and generating tax revenue from stronger growth, Bernanke argued. – AP

Dominant Social Theme: The Fed is doing what it can; the economy is doing what it must.

Free-Market Analysis: We cover elite promotions that support expansive government, and no single such meme is more important than the necessity for central banking.

It is central banking that evidently and obviously funds the push toward world government. The same never-mentioned elites (in the mainstream press, anyway) who control central banking via the centralized Bank for International Settlements have used the astounding volume of Money Power to build a global governmental infrastructure.

At the beginning of the 20th century there were very few central banks. Now there are 150 plus the Bank for International Settlements.

This story from AP, one of the central mechanisms of elite media control, illustrates once again how the central banking meme works.

The article is devoid of any significant frame of reference. It simply reports Ben Bernanke's point of view without referencing what many economists believe to be true – even Keynesian ones – that absurdly low interest rates create bubbles.

Here's more from the article:

The chairman cautioned Congress against adopting a law that would allow it to monitor the Fed's interest-rate discussions. The House has passed legislation to broaden Congress' investigative authority over the Fed -authority that would include a review of interest-rate policymaking. The Senate hasn't adopted the Bill.

Bernanke warned that such a step would improperly inject political pressure into the Fed's private deliberations and affect the officials' decisions.

His speech follows the Fed's decision at its September 12-13 meeting to launch a new mortgage-bond buying program. The goal is to try to drive low mortgage rates even lower to encourage home buying. Increased home sales could help spur hiring and accelerate economic growth.

The average rate on a 30-year fixed-rate mortgage is already 3.4 per cent, a record low. But some economists think home loan rates could fall further, in part because long-term Treasury yields are much lower: The rate on the 10-year Treasury is just 1.62 per cent.

After its September meeting, the Fed said it would keep buying mortgage bonds until the job market showed substantial improvement. It also decided to keep its benchmark short-term rate near zero through at least mid-2015.

What the article is referring to here is the just-announced easing that the Fed has embarked upon in which mortgage bonds are purchased, thus shrinking supply and presumably lowering long-term rates.

This is just part of the larger money manipulations that the Fed is involved with every day. Central banks around the world have injected tens of trillions into the global economy since the crisis of 2008. Effectively, the NEXT great economic disaster has been seeded by the insanity of this money printing.

In the US, the Fed basically has a monopoly on money printing and money circulation. As there is one currency and one financial system, rather than competing interests, the power wielded by those behind the money system is absolutely extraordinary.

It would be bad enough were this system merely emplaced as "business as usual." But there is plenty of evidence that those running it regularly expand and contract credit to further centralize power and authority in the current system.

By driving entrepreneurs out of business, those at the top make sure that competition is lacking. Those who do make it to the top, like Bill Gates, are eventually intimidated into going along with the program of monetary centralization.

Gates was famous for stating as a young man that he didn't intend to disburse his fortune before his death. But after his company, Microsoft, was sued by the government over so-called monopoly practices, Gates's behavior changed.

Following the course apparently laid out for him by his high-powered attorney father, he became friends with Warren Buffet and set up a charity that was endowed with his entire fortune.

Buffet himself is traveling around asking other high-powered moguls to place their money in trust for charities. But if one is inclined to accept a Money Power paradigm almost nothing about these requests directly involve charity. Rather, they are a way of separating people from their fortunes. There can only be one Money Power.

To ensure that top people "get the message," Gates has been put very publicly in charge of a vaccine charity that disburses "jabs" around the world. This is made to look like Gates's idea but in reality, large, charitable programs are efforts that enforce elite priorities and benefit greater government far more than the greater good.

Large vaccine programs promote public health policy despite questions about the implementation of many of its programs. Additionally, public health promotes yet more centralization of government.

Money Power seeks greater government because it uses government via mercantilism to realize its goals. It is the conflation of the public with the private that gives Money Power its ever-growing, behind-the-scenes authority.

The most powerful tool in the power elite arsenal is undoubtedly central banking itself. The reason that Bernanke is allergic to interference with Fed affairs is because the Fed is evidently and obviously run for the benefit of those who control it.

There are many who will take the academic approach and point out that the Fed is ultimately supervised by its board of directors and Congress but this avoids the reality of the BIS in Switzerland and the way the system has been set up. A larger intelligence is obviously operative.

The lack of mainstream insights into the way central banking really operates is compounded by lack of criticism over the "economics" of central banking.

At its heart, central banking is nothing more than brutal price fixing. It is incredible that in an acting academic of myriad thousands of economists around the world, none choose to write what is obvious:

A handful of men in numerous countries meet every few days to designate the price and value of money. This sort of price fixing over time creates great booms and ruinous busts. We are living through one such today.

Nonetheless, you will not find these issues regularly referred to in the bought-and-paid-for mainstream press. They will be mentioned occasionally in the editorial pages but that's about all.

The main media mechanism for topic avoidance is simply to report on the "facts" of the news when it comes to money without mentioning the larger frame of reference that is so important for understanding what's really going on.

This is one reason that news and media reports generally seem so schizophrenic. While issues relating to what's actually taking place are often written about and opined upon, mainstream news has been rigorously disciplined into a kind of self-censorship.

After Thoughts

This allows the powers-that-be to continue to flog a preferred narrative without fear of interruptions. One can comment on the news but the narrative itself flows along unimpeded.

Posted in STAFF NEWS & ANALYSIS
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