STAFF NEWS & ANALYSIS
Central Banks Take to Social Media for an Image Boost, But Isn’t It Too Late?
By Daily Bell Staff - August 04, 2016

Social Media Blitz Has Russians Asking: What’s a Central Bank?  …  Bank of Russia expanding its reach by turning to social media Inflation expectations remain high despite slower price growth … Here’s what Governor Elvira Nabiullina’s latest quest to uproot high inflation expectations is up against: most Russians don’t know what a central bank is, and the price growth many of them actually face is at least double what the statisticians are reporting. -Bloomberg

This Bloomberg article describes how the Russian central bank is using “social media” to explain central bank manipulations and then gives us a rundown on what other central banks are doing.

Finally, some eight years after the start of this latest global, quasi depression, central banks are beginning to fight back against their negative perceptions.

Of course, the negativity is well-deserved. Central banks ruin economies through monetary debasement and are constructed to do so.

Every time a central bank does something to “help” it is actually  harming.

Enough harm and economies begin to collapse.

This is all to the good from the point of view of those controlling central banks – as the goal is further globalism. The more chaos, the more “order” can emerge that moves the system toward true internationalism.

But the process falls apart if people distrust central banking and want to remove such banks.

Now central banks are starting to use social media to remake their images.

More:

Within a year, the central bank will … start a website with explanatory materials on economics and financial services … It still has a way to go to keep up with its more tech- and media-savvy colleagues elsewhere.

The Austrian central bank’s website features a Tetris-style game devoted to the new 50-euro bill. The Czech National Bank has released an app to explain its unorthodox efforts to re-ignite price growth.

On his first day in the job last year, Irish central bank Governor Philip Lane promised on YouTube to keep “in regular touch, through blogs, more video messages and also directly”.

According to the article, central bankers have adopted Twitter as “the most popular platform, with policy makers from 72 countries operating an account, followed by YouTube and Facebook.”

Bankers have realized social media can “circumvent traditional media,” so they can bring their message to the masses without any interference.

In the case of the Russian central bank, social media is being used to try to dent expectations of further inflation.

Inflation expectations are making it hard for the Russian central bank to reduce rates. The central bank just held key interest rate unchanged at 10.5% at its policy meeting on July 29, “citing a pause in the decline of inflationary expectations,” according to Bloomberg.

The Putin government wants considerable easing but the Russian central bank is independent of the government and Putin has not moved to change that arrangement.

The Russian central Bank is attacking people’s expectations of inflation using Facebook to explain rate decisions. Top Russian central bankers even make YouTube videos with graphics to explain policies and emphasize that inflation is slowing.

Twitter is even being used to “invite people to put forward images of their cities to be featured on the new 200-ruble and 2,000 ruble notes.” In October, Russians will be able to vote for the new notes.

Conclusion: Of course, none of this changes the fundamental reality of central banking, which is that price fixing of the value and volume of money inevitably leads to economic instability and worse. What such banks do is counterproductive and ultimately ruinous. The “experiment” is a century old at this point, and the “results” are in.

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  • Praetor

    Ok! Social media. I conceder the entire internet social media, because entire societies can us it if they chose. For them to use tweetybird, Fakebook and youboob is some what redundant, don’t we know. They have their MSM to tell us how it is they intended screw us over.

    You are right DB, this could be counterproductive. Because the entire society has the ability to talk back, on SOCIAL MEDIA. We all know they don’t like people talking back, do they!!!

    • autonomous

      They also control social media. They have the means to block users and even to edit users’ backtalk. he evil of central banking is that they control the gamd–and any reporting on the game.

  • georgesilver

    Central Banks are the ugliest pigs in the stye. An extra application of lipstick is not going to fool anyone.

  • JohnnyZ

    As I did not receive a DB reply on my previous post on the same topic, I will repost it here + provide some backing from the Acting Man (Austrian economics) blog:

    “I generally agree with DB.

    I want just to add that focusing on CBs omits a large part of the picture. Most
    of the money printing in the economy (95% – at least before serial QE started)
    happens by commercial banks granting credit. Thus CBs are a central hub that
    acts as an insurer and central planning bureau of the (commercial) banking
    cabal, plus it masks as a govt institution and helps fund govt debt.

    Even if you dismantle CBs, FRL will still give (commercial) banksters about 80%
    of their current power. CBs are owned by the owners of the commercial banks and
    serve their interests first. CBs will not need to exist (in their current form
    and function) if there were no FRL. CBs stand on the shoulders of giants, the
    commercial banks.

    The collusion b/w banksters and the state, using the trojan horse of the CB, allows for cartelization of the economy, cronyism, overregulation etc. Even corporations are used by parasitic CEOs, focused on short-term gains for themselves, while destroying value. The biggest problem of the economy is not insufficient demand (a Keynesian fallacy), but overextension of the (Kondratieff) credit cycle + utter moral roth & corruption + an increasing stake of govt in the “economy” (where it does not belong and should not be counted at all).

    These are all symptoms of the bigger problem – our societies, our planet is ruled and structured by satanists / masons / illuminati / Zionists / psychopaths / aliens / reptilians – call them what you like. They control govt, banks, CBs, media, big corporations, courts, police, military, NASA etc.”

    And here is from Acting Man (cannot post the link somehow):

    “Jailing Banksters Will Not Resolve the Economic Crisis”

    • We’re a libertarian publication and we believe the market itself is capable of creating fairness and competitive justice. If monopoly central banks were removed from the system, people would gradually revert to local currencies as well as silver and gold. Absent further force, the larger commercial banks would fall apart. No one would want to do business with them.

      • If I write overlong for a ‘fleeting moment’ – just feel for a paragraph
        or sentence that holds some interest and just use it for a reflection of
        your own self-honesty. Which can be deeply covered over but never
        completely eradicated.

        Hmmm… you believe in the market for fairness and justice!

        I believe human beings are capable of recognizing or owning their errors and repenting of them – but I am not waiting for anyone ELSE to recognize and release anything I uncover in myself as working against my own joy in life. Is liberty waiting for the removal of banking deceits to regain its nature? Or is some consensual or coercively set idea of liberty at war with other such ideas? Is liberty something to ‘sell’ to people or induce compliance with after inducing scarcity or pain? For such fears can obscure a true foundation and operate to keep it hidden.

        Is the ‘market’ a person, or a creative agent, or is it a short-cut generalisation for the flow and exchange of goods and services – including information – in which persons and personal investments are operating a set of definitions over the creative agency that is responsible for That we have consciousness in which to make choices and the ability to frame them in ways that validate some and obscure or invalidate others?

        The golden rule exhorts treating others as you would yourself like to be treated – and works well when a true sense of worth is accepted and extended. But in the adulteration or corruption of worth, the grounding standard of gold is exchanged for shifting and arbitrary values of socially defined agreement that operate do unto others what you wish to escape or deny in yourself. In other words there is no longer a basis for recognition and trust in oneself or from oneself in relation with others – and the ‘market’ that operates in a false or negatively defined sense of self interest (ie – as the fearful avoidance of negative outcome by outsourcing it away from one’s sense of self), is never going to balance in a positive or integrative accord.

        I do feel for the undoing and replacement of coercive rules with a more aligned capacity to focus in what is wholly valuable – rather than in complex instruments of concealment and deceit that hide toxicity behind some sort of trojan front. But without addressing a deeper aspect of our personal and collective conditioning – we merely rest our case of foundations of theoretical concept that may be ‘partially’ true or point to some truths – such as the synergy and synchronicity of true self interest in patterns of spontaneous harmony of shared benefit.

        The relinquishment of coercive ‘externally applied’ force is an individual freedom by which true freedom is restored awareness. Just as the trading of such freedom for a promise of personal power or protection operates the denial of free willingness in preference for a tyrannous ‘will’ or dictate of conforming force – (and its resultant reactive counter force & etc).

        The idea of worth is fundamental to all else – and if something is only ‘worth doing’ because it generates personal profit or ‘salvation’ – then creative endeavour is withheld while unworthy but ‘profitable’ acts multiply to feed an un-worthy sense of self – such as our pharmageddon, the millitary-combustrial complex and its technocratic narrative of economic ‘necessity’ or Notional Security.

        People are capable of fairness and justice that operates as balance points between apparently competing interests. The goldman idea that not only must one win – but the other must know their loss – is a mind of vengeance – hatred.

        The state monoplozed power in part to check and limit mafia or robber barons from capturing and controlling ‘markets’ or indeed a subjective sense of survival identity – as an act of social, economic and political coercion. That the state itself is then captured by such mentality of ruthless or unfair and uncaring hatred for lives of others or our Planet is indicative of the shallowness of conventional consciousness and its susceptibility to mind – or narrative control.

        Re-wakening consciousness as a true sense of worth is the undoing of the basis upon which the false or mis-identified sense of self is both fed upon and fed-managed and medicated to remains such a ‘food-source’.
        Coming off of drugs that alter brain bio-chemistry (as if to manage relational issues in terms of ‘organic’ disease postulated as such a lack requiring rebalance) – often requires a stepping stone process of supported withdrawal unto the point of awakened responsibility. For the homoeostasis of any system operates to incorporate and cope with stress of deficiency or danger – and identifies in maintaining that ‘establishment’ as its sense of balance and even survival.

        Liberty is as does – and if as I hold, liberty is the realm of choice or free willing acceptance – then we don’t work to undermine the capacity to choose – but join in it and strengthen in it against the ideas of a false liberty in which responsibility for consequence is out-sourced onto others – and a narrative justification asserted in place of an open handed presence of discernment.

        Idea about liberty is the perfect trojan by which to trap the libertarian into an exclusive identity amidst a competing conflict of identity that effectively diverts and dissociates from true worth – and indeed will maintain there is no such thing – for life is what you make it. But Life is Already – and what we make OF it is not the same as usurping it within a matrix of manually managed and medicated ‘mindshare’.

        If ‘if’ shall be replaced by is – rather than be indefinitely un-embodied wishful thinking), then central banking is removed from my system and I redeem all things to true currency – in steps of recognition and action that regenerate culture upon a true grounded tangible – rather than complex convoluted mysteries of a ‘higher order’. By living from a true foundation – the capacity to recognize a true account is grown. But clever thinking never actually arrives at a true starting place – being always a way of persisting the establishment of such private agenda over the whole.

      • JohnnyZ

        FRL is an institutionalized fraud, sanctioned by the state (enforced by state’s monopoly on violence). It is a bigger chunk of the bankster’s fraud (80%+) and is thus independent of CB’s existence or not. In the past FRL used to be punished by death. It would not exist in a free market / society either to the extent it does today (about 100% of global banking) as it is a fraud.

  • windsor1

    Isn’t that the purpose of a Central Bank; to maintain the value of the currency, stabilize the banking system and try to maintain low unemployment. On all three of these metrics it has failed miserably. The currency has fallen over 95% since 1913, real unemployment (those who want work and do not have full time employment) is over 25% and the banking system is held together by accounting magic (zero rates and the Fed purchase of toxic assets from sick banks etc. and government bailouts. How can an institution that has on its payroll over 300 PHD’s screw up so badly. The answer lies in examining what is the real agenda of the Fed and not the stated mandate? If you examine the real agenda then the Fed is extremely successful. Has any of this success spilled over into your life or are you being squeezed harder every day?
    In a real capitalist economy, badly managed companies, are allowed to fail while respecting the legal rights of different categories of creditors. Commercial, public and Investment bankers used to play by the same rules as other private and public enterprises. Bankers through their vast wealth and powerful lobbies have changed all of that.
    In reality, if a large bank fails what are the consequences? Their job used to be to simply provide money and credit to responsible borrowers big and small. They provide liquidity to the financial system. If a bank fails another lending institution will appear that hopefully learns from the mistakes of its failed predecessors. This no longer applies. Banks are now immune from bankruptcy. If you were immune from bankruptcy without consequences would your lifestyle be different than it is today?
    There used to be checks and balances built into the banking system; regulators to ensure the capital ratios were within acceptable limits for example. There are auditors and compliance officers and a host of other people to ensure that banks operate within parameters designed to protect the public. Then too, there was the Glass Steagall Act to keep banks out of the insurance and brokerage industry. Bill Clinton under pressure from the Bank lobby re-engineered the financial industry. Glass Steagall was created to prevent another 1929 crash. This turned the banking industry into a casino and only a few short years later there was a another banking crisis.
    In 2007 it became obvious that the regulators were not doing their job. Hank Paulson came up with the ridiculous concept of “too big to fail”. That means that the banking system does not have to be accountable for bad decisions, unlike other business that create products or services that have real intrinsic value not just simply issuing cash and credit. Matter of fact, even when the system blew up in 2007-2008, with bailouts in place, they could even issue bonuses to retain “key players” in these failed businesses.
    Now we have zero interest rates for select players , money printing on a scale not seen before, out of control government and private borrowing (massive credit expansion) and fabricated unemployment statistics. This reckless behavior has created a system that has increased the fragility and created huge economic dislocations and misallocation of capital. The 300 PHD’s theorized that the Central Bankers can fix a credit based crisis by issuing more credit. Guess what, its making things worse.
    There is now a rapid erosion of literally all currencies, high inflation rates and a bubble economy. There is a tremendous mis-direction of capital as businesses attempt to chase returns and boost share value in a zero interest no growth environment environment. Money chases deals, not real sustainable economic growth, based on innovation and production of “value added” products.
    Even though the “Fed” is a private, non taxable institution it is carefully linked to the government through policy decisions and a never ending need for governments to borrow more money. If the owners of the “Fed” were not in tune with the governments they control, the “Fed”, would disappear and it should disappear. Remember the Fed’s stock is not public so no financial statements or audits are required. Remember they though the big banks that own them create the money and credit facilities. By any definition this is a closely held cartel but let’s remember that bankers are in a privileged category. Let’s look at the picture another way.
    Suppose you, as an individual cannot go bankrupt, and have access to an infinite amount of capital. When you need cash it is available, when you need credit you have an assortment of credit cards available with no credit limit. This is analogous to the incestuous relationship between the central bank the banking system and the government. You have the ability in such a system to party like a rock star with no consequences. When you have a need for cash, simply print it from your PC. Don’t worry about counterfeiting charges as they do not apply. You can have private jets (the Fed has at least 40), exotic cars, homes all over the world, eat at the best restaurants, take vacations whenever you want etc. Nobody will criticize your expenses or lifestyle because it is “classified” information. And don’t worry about taxes, you like the Fed are exempt from them. When you view it from a personal level you see just how ridiculous the private Central Banking System is. Another feature is that you will not be spotlighted for you wealth; Central bankers never appear in the Forbes 400 richest lists.
    If we assume then, that the real agenda of the Federal Reserve and the banking system is to transfer wealth from the system to themselves and not as stated in the introductory paragraph does their behavior make any sense. There are no audits of the Federal Reserve nor any publicly issued financial statements; yet they create the money supply for the entire economy. You might say that’s ok, they are honorable men and women. Just look at the mandate and compare it to the results and re-think this again. The public has no knowledge how much money is being printed and where it is going. Ben Bernake told you as much when he refused to answer questions in Congressional hearings. Remember the banking system legally gets money at 1% or less. That means they folks at the top can get almost free money and can use it to buy real hard assets. Can you do that? If the IRS comes to your door and asks you where your money comes from, can you plead the “5th” like Ben Bernake? Just try!
    The bankers control the entire government. They are above the law. How many times has JP Morgan and other banks been caught in illegal activities. They pay fines and penalties that are a fraction of the proceeds of the crime. Just like Hillary and her emails, bankers are above the law. In the 2007-08 crash which they created, and which led to the destruction lives of thousands of innocent and naive families through predatory lending practices. Only Bernie Madolf went to jail not because he stiffed the public but he dared to stiff the elite.
    Our financial system is fragile by design. High and manipulated reserve ratios are the start. Suppose you like a bank could lend out 10 times your cash on hand at interest. If one person defaults, you can take the hit but if most default you have big problems. If you, as a bank, go outside your mandate and begin to issue derivatives on bond defaults etc you are ok until there is a market where corporations begin to falter. The policies that work well for you, as a central banker , that is zero interest rates which protects you from defaults, do not work well for other sectors of the economy like pension funds, insurance companies and investment funds. Remember, as a banker the more credit you issue the higher your profits. A banker maximizes profit by maximizing lending while trying to prevent an economic collapse. It is when economic expansion stops that the problems begin.
    If you as a central banker control the government through lobbying and campaign financing you have foreknowledge of interest rate, monetary and fiscal policies that allows you to use this information to great financial advantage. You can re-position yourself ahead of the moves. While other sectors of the economy suffer from collateral damage from Central Bank policies you can use your immunity from prosecution and financial failure plus easy access to free money to make a killing and buy up assets with real intrinsic value.
    This ladies and gentlemen are why they are fabulously wealthy and secure while you are the hamster on a broken economic treadmill. A Central Bank is only as good as the group that controls it. When it is a private central bank, with no accountability, and total control over the economy, watch out. Absolute power corrupts absolutely

    • Erik Garcés

      Bravo! Well said!

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