Government Destroys National Central Banks to Build Global One
By Daily Bell Staff - October 19, 2016

Mess With Central-Bank Independence at Your Peril  … There are worrying signs that, against the current backdrop of record-low interest rates, politicians are tempted to start meddling.  -Bloomberg

The idea of nationalizing banks is probably part of a continued strategy to destroy local and regional central banks in favor of one that is worldwide.

It is surely true that the indefensible nature of central banking is even more obvious when politicians are in control.

The essential nature of central banking is that a handful of people define and control money for hundreds of millions and billions of others.

But this particular observation is not made by the mainstream media. Nor is it commonly noted that the main function of central banking is to debase money.

By making money (currency) less valuable, central banks reduce the value of savings and generally make it difficult for people to retain liquid wealth.

But having politicians control central banking makes the allocation of money by just a few people even more obvious and repugnant.

That is one reason why those affiliated with central banks have resisted such control. Another reason is that those who control central banks control wealth and can benefit accordingly.

Politicians would like to control domestic wealth just as central bankers do.

But the bigger issue is that central banks are gradually being discredited – an evolution we have long predicted.

For instance, central banks have maneuvered themselves into the ludicrous position of negative interest rates and while doing so have created the biggest bubble, worldwide in history.

This bubble extends across most commodities, real estate and economies generally around the world.

But while bankers would protest that doing their best to fulfill their awesome responsibilities has created the current, evolving catastrophe, the larger reality is that central banks are being discredited because that’s how something larger takes their place.


U.K. Foreign Secretary William Hague wrote that “central bankers have collectively lost the plot. They must raise interest rates or face their doom.”

Bemoaning the lot of savers in a low-interest rate world has become commonplace. Prime Minister Theresa May was scathing earlier this month in her attack on the unwelcome side effects of Bank of England policy.

German politicians have grilled European Central Bank President Mario Draghi about his negative interest-rate policies.  But this is different. Hague went on to issue a sinister threat to the Fed and its central-banking brethren:

… The only way out is for the U.S. Fed to summon the courage to lead the way to higher interest rates, and others to follow slowly but surely. If they fail to do so, the era of their much-vaunted independence will come, possibly quite dramatically, to its end.

Central bankers and politicians may believe this is part of a larger dialogue about central banking positioning, but surely it is more than that.

Elite goals have not changed. Centralization of pretty much everything is a longstanding goal. Contrast today’s central banking to yesterday’s and you will see how much the dialogue has changed.

The mainstream media is critical of central banking in ways it has not been before. And now the political process is changing as well.

This is surely directed history at work. If we follow these observations to their logical conclusion, we arrive at the observation that central banks will continue to be undermined by those at the very top who likely do not reveal their plans to the “rank and file.”

What is likely is a major event that will reduce central banks around the world to a kind of economic and political rubble. Then perhaps the International Monetary Fund or some other international organization will  step in to offer a single (SDR) currency and perhaps global central bank functions as well.

In the meantime, central banks will continue to receive considerable criticism – now augmented by political warnings.

Central bankers and the plethora of economic and sociopolitical interests surrounding them are likely not aware of the fate of local and regional central banks. They may believe they are engaged in an ongoing dialogue about how to make central banks “better” and more efficient.

Conclusion: But the ultimate plan is to ensure these banks are either extinguished or operate formally under the control of a single entity. And they must be discredited, if not destroyed in order for this to happen.

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