STAFF NEWS & ANALYSIS
Draghi: Let’s Create An Aggressive, Globalized Central Banking Monopoly to Destroy the World
By Daily Bell Staff - June 30, 2016

ECB’s Mario Draghi Urges Central Banks to Align Monetary Policy …  ECB chief warns against competitive currency devaluations Speaking at a European Central Bank conference in Portugal, ECB President Mario Draghi says divergent monetary policies among major central banks can create uncertainty about their policy intentions.-Wall Street Journal

How is it that people have been put in jail for conspiring to create monopolies but central banks are exempt?

Here comes Draghi demanding that central banks act together around the world in a disciplined and forceful way. Surely this would create vast economics movements that over time that would result in an enormous snap-back in the other direction.

Central banks have monopoly privileges and only become more powerful when they act in concert.

Because of monopoly privileges, the market itself cannot constrain them. This is what Draghi wants.

Speaking at a European Central Bank conference in Portugal … Mr. Draghi said central banks should think about whether their policies are “properly aligned” with those of their peers. He warned that currency devaluations aimed at boosting competitiveness are a “lose-lose” for the global economy.”

“In a globalized world, the global policy mix matters—and will likely matter more as our economies become more integrated,” Mr. Draghi said. “The speed with which monetary policy can achieve domestic goals inevitably becomes more dependent on others.”

Government exists without competition just as modern central banks exist without internal competition. When they work together, they can create enormous economic distortions.

The remarks indicate a “definite shift” in Mr. Draghi’s thinking, said Frederik Ducrozet, senior economist with Banque Pictet & Cie SA in Geneva.   “It suggests that the ECB is increasingly concerned about those ‘global factors’ driving inflation that they cannot directly influence,” Mr. Ducrozet said.

Draghi wants total control over worldwide money printing. He is worried that too much currency creation will create conditions in which price inflation will flourish.

He is even concerned with the Brexit vote according  to the article, which is stripping him of some power to coordinate with the Bank of England.

Of course, the Bank for International Settlements tries to coordinate as well, but presumably Draghi wants something even more aggressive.

The more that central banks act in a concerted way, the more they can move the world’s economy in a single direction. This is what Draghi wants.

Conclusion: Economies are already unbalanced from decades of central banking manipulation. The next swing could be the most violent of all. It could literally destroy economies around the world. Of course, by then Draghi may have left his post. It will be someone else’s problem: yours and ours.

Posted in STAFF NEWS & ANALYSIS
  • natural human

    “How is it that people have been put in jail for conspiring to create monopolies but central banks are exempt?”

    As a former banker, this is a question I have been asking for decades…to myself, of course. Thankfully, I’ve been out of that “venerable” profession long enough to understand the errors of my previous ways. And I am ashamed for being a part of it. Be that as it may, why do people not question the very validity of the current monetary system? It must be because it is presented to them as too complex for mortal minds to embrace, so leave it to us, the experts. THEY use this M.O. repeatedly to shepherd the flock so successfully in so many sectors, but banking has to be the greatest success ever. Which does lend credence to the theory that they who are in control almost certainly emanate from the central banking business model in the first place (and we know they are) and continue to hold high office in the capstone. The Bell has, over the years, done a good job of laying bare the evils of central banking, and should be applauded. The evil, however, lies not just in the centrality of it all, but at every level of the rotten model of credit creation out of thin air by a licensed private operators. Further, I wish the Bell would re-think its view on government created money. If there is one entity that might have legitimate reason to create money out of thin air it would be the treasury of the governed. Now, we have an issue here, of course, in that the present government itself could not be more corrupt and unworthy of such responsibility. But theoretically it is the government that could supplant much, if not most, of our tax burden simply by spending fiat into existence to pay for worthy objectives that would NOT include social transfer payments. Value for value only. Actually, I think this has been happening already on a massive scale and off the books, but to pay for dark programs and graft necessary to maintain the empire. This post could go on forever so I’ll end it by saying just this: virtually everything we believe about our system is either a lie or based on a lie. Until the folks are able and willing to accept this nothing will change for the better.

    • Thank you for a thoughtful, accurate post. Disagree about government money though …

      • nameless

        My comment about money is not allowed to stand? Why not?

        • Nobody did anything to any of your comments.

          • nameless

            In moderation… its showing now.

    • Scott

      The sociopaths and psychopaths that run government are the least capable humans on earth to officially “spend fiat into existence to pay for worthy objectives.” Oh hell no! And yes indeed, they already do it off the books.

    • nameless

      The power to define and create “money’ belongs to the individual human. A human becomes a slave the moment he/she accepts otherwise.

      • natural human

        Excellent point. I just wish people would realize how much worse the debt based money system is compared to a government money system. Currently, the banks create all the money (out of thin air) and therefore every currency unit in existence bears interest to this mafia. If money were created out of thin air by the treasury at least there would not be the concomitant interest burden on society AND taxes could be reduced by an equal amount. The banks are dependent upon the people never understanding this.

  • mutonic2db

    Is this how it’s going to end up…. all in the hands of Central Bankers?

    When Government Controls All Wealth
    By Bill Bonner

    http://www.bonnerandpartners.com/when-government-controls-all-wealth/

  • Bruce C.

    Of all the many “globalist” agendas one of the ones I can “see” the most clearly is the desire for a single global currency.

    Draghi is basically making the case for one by indirectly blaming multiple currencies for global monetary problems. “Clearly” if there was only one currency then the notion of competitive devaluations wouldn’t be possible. Of course, having a single world currency would work no better than the euro does in the EU but he probably doesn’t see that or care.

    Draghi is talking about coordinated central bank policy as an indirect way to condemn multiple currencies as though THEY are the real problem and central bank interventions are needed to offset the problems they cause. In actuality, of course, it is any outside arbitrary interventions that begin the distortions, and central bank interventions are the main ones today.

    I agree with the DB that if all the central banks are coordinated (even more than they are already) the same fundamental problems will continue but just on a larger scale.

    The real solution is for central banking to be eliminated so that the “free market” can determine its own price levels for money just like it tries to do with everything else.

    As usual, “government’s” solution to the problems they cause is to do more of the same on a bigger scale. But people may be starting to want off of that merry-go-round. Somebody should counter Draghi’s proposal with the opposite one: Since central bank interventions are causing and exacerbating so many monetary problems they should all stop and let the open markets equilibrate things.

    If “small”, individual central banks can’t get it right then how or why would one larger one be any better?

    Here’s a good article about central banks:

    https://mishtalk.com/2016/06/30/explaining-social-anger-brexit-donald-trump-in-one-chart/

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