Insight: Central bankers cast as superheroes with no script … Top central banks have slashed rates to zero, pumped in vast amounts of cash, helped orchestrate bailouts and fired their "big bazookas": buying trillions of dollars of government bonds to calm markets and spur lending and growth. … They also have something governments desperately lack: money. In fact, like modern-day alchemists, they can and are creating it in unprecedented amounts. Whatever they do never seems to be enough for governments saddled with high debt and markets still fighting the hangover from the debt-fuelled binge that preceded the crisis. But here is the paradox: humbled, constantly pressured by politicians and having lost much of the respect accorded to former Fed Chairman Alan Greenspan and his colleagues in their heyday, central bankers are more important than ever. – Reuters
Dominant Social Theme: Bankers are mighty Supermen.
Free-Market Analysis: Anyone who disputes our perspective regarding dominant social themes just has to look at articles like this on Reuters to find confirmation of promotional efforts. This dominant social theme is one of the biggest and most powerful.
It has to do with the veracity and necessity of central banking. But almost every part of the article is easily debunked and in this day and age, such perspectives are not even debatable anymore.
In fact, this sort of article is proof positive, from our point of view, as to why the globalists that have set up the current monetary system are in so much trouble now. In today's world, many active and persuasive bloggers understand the damage of the current system and have no use for it. Resentment is growing and credibility is leaking away.
We believe there will be change – momentous and profound. Articles like this are yelps in the dark issued by drowning men. The promotional element that served the meme of central banking so well in the 20th century is seemingly incidental in the 21st.
They convince no one who has made up his mind otherwise. Nonetheless, the articles keep coming; the reports are streamed; the television appearances are made. Shakespeare comes to mind: Sound and fury signifying nothing. Here's more from the excerpt above:
"Monetary policymakers have become not only the lenders of last resort, but the policymakers of last resort," said Barry Eichengreen, a University of California professor and expert on the international monetary and financial system.
In Japan, Prime Minister Shinzo Abe is looking to the central bank to end deflation, British Finance Minister George Osborne hopes new Bank of England head Mark Carney can succeed where he has failed and revive the economy. Last month it was the ECB that threatened to cut off funding to Cyprus if it did not agree a bailout plan.
When short-sellers breathe down distressed governments' necks every time they hold a debt auction, unelected central bankers can act quickly enough: no lobbying, trade-offs or parliamentary votes required.
Following the crisis there is a broad agreement that low inflation is not enough for economic success. Financial stability is also essential but there is no consensus on what role central banks should play in achieving that.
"There is this nostalgia among central bankers about the good old days of the 1990s and early 2000s when you just set interest rates and all was very straightforward, but that was a delusional paradise," says Adam Posen, a U.S. economist who served on the Bank of England's policy council in 2009-2012 and now heads the Peterson Institute, a Washington think-tank.
The crisis shattered the theory of "Great Moderation", that solid growth could go hand-in-hand with low inflation and bull markets if central banks focused on price stability.
There is so much about this article that doesn't stand up to even the briefest scrutiny. Basically, the article begins as all these sorts of analyses do with central banks firmly in place and pursuing a mission. But who put them there to begin with? We are asked to believe in an ecosystem that is entirely artificial.
Central banks are like alchemists, as the article says? No. Central bankers were provided this alchemical power cold-bloodedly. PEOPLE set up the current system. It didn't spring fully formed like Athena out of the forehead of Zeus.
And why are central banks creating money in "unprecedented amounts"? It is not some sort of mysterious evolution of central banking power. It is part of an expansionary process that has been going on since the beginning of this central banking era about a century ago.
We are told as well there is "no consensus" on the role of central banking and that most central bankers yearn for the days of the "Great Moderation."
Well, again, no … there was no "great moderation" – only a slow, steady creep of expansionary money printing that like rising water gradually destabilized the world's economic foundation.
And as a result, today, we have economic crisis after economic crisis.
This is quite predictable. Are we to believe that those in charge of the current system don't absolutely understand its effects after a century of depression, hyper-inflation and general failure? Of course they do.
The system is obviously deliberate and does not provide stability – far from it. It is evidently and obviously intended to collapse in upon itself – further centralizing power and wealth as it proceeds. It is the ultimate tool of globalists determined to create an ever more centralized and internationalist sociopolitical and economic environment.
Central bankers are not superheroes. They are employed by those who seek the kind of chaos that this sort of price fixing causes.
These "superheroes" are merely cogs in a vast machine that is grinding down.