Do central banks serve their people, or is it the other way around?
Since the financial crisis of 2008 and the pandemic global lockdowns, central banks have implemented the largest monetary easing experiment in the history of finance.
But the blowback of this policy is less cohesive and politically polarized societies as the world’s richest 1% have accumulated 82% of the wealth, according to Oxfam.
Central banks monetary policy facilitate the trickle-up wealth effect
As central banks transition from easy to tightening is likely to be temporary.
But again,central banks will provide the pin which will prick the bubble of everything in bonds, stocks, real estate, which central banks colluded to create.
The coming crash that many participants are referring to will further consolidate the wealth of the richest 1%. Central banks monetary policy transition to tightening will further enrich a tiny group, as pensions funds and home equity wealth gets wiped out.
Every crisis has resulted in more money printing. So, those nearest to the money pot will be able to leverage up on distressed assets and consolidate their wealth.
Naomi Pins, in her book entitled, Collusion, explains how central banks rigged the world.
“20th century belongs to Wall Street, the 21st century belongs to central bankers,” wrote Naomi Pins.
Since the 2008 great recession and the pandemic global lockdowns, the Fed and its western aligned central banks ECB, BoE, and BoJ have been in cahoots to aggressively create currency and inflated asset prices.
“20th century belongs to Wall Street, the 21st century belongs to central bankers”
The global stimulus has ballooned to $15 trillion and counting from the 2020 global lockdowns.
But despite an unprecedented amount of central easing, regular Joe has become poorer.
University education has become more expensive, outside the reach of many middle-class families.
Moreover, getting on the property ladder is a pipe dream for many young first-time home buyers.
As we noted above, the wealth divide has accelerated despite central banks easing.
“The cycle of bloodline and appointed line to the whole environment and as a result, the tremendous amount of influence Wall Street institutions have on presidents”
– Naomi Pins
Where did the money go?
In the financial crisis of 2008, the trillions of dollars created by the central banks went to bailing out the banks.
The pandemic global lockdown of the economy resulted in another policy-driven crisis.
Forcing small businesses to close and paying people to stay at home and not work resulted in the current inflation and supply bottleneck we are currently experiencing.
Global lockdowns also accelerated the digitalization of everything and the brick and mortar meltdown.
Yet again, the central bank’s solution to the policy-driven crisis was more money creation, which accelerated the Amazon effect. So, forcing small businesses to close and printing trillions of dollars of cheap credit benefited the Amazons and further consolidated the wealth to the top of the wealth pyramid.
The central bank’s recurring theme in a crisis is more money creation
Perhaps we are witnessing the seeds of the next crisis germinating, the policy-driven blunders leading to war in eastern Europe, which could spiral into WW3. Moreover, like all previous crises, it will be dealt with by central banks implementing a policy of more easing.
21 century belongs to central bankers
Whether it be wars or economic depressions, the conclusion has been further centralization, the greater the role of central banks, and public deficits will be.
In Collusion, Naomi Pins highlights the revolving door between central banks and political institutions of power.
Naomi Pins noted the relationship between Wall Street prominent families, powerful banking institutions with the US presidents, the treasury secretaries, and vice presidents and how that impacted policy, economic, military, trade policy, and everything else.
“The cycle of bloodline and appointed line to the whole environment and as a result, the tremendous amount of influence Wall Street institutions have on presidents,” she wrote.
So, it is no coincidence that former Fed Chair Janet Yellen was appointed treasury secretary, former ECB President Mario Draghi is the current Italian Prime Minister, and Emmanuel Macron, second time elected French, was a Rothchild investment banker.
“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered” – Thomas Jefferson
Western political leaders and central banks walk in lockstep
This explains why public deficits will continue to balloon and that every crisis will be met with more money printing, until the final goal is achieved;
We see a one-world government with humanity beavering away for a global conglomerate where the 21 century will belong to central bankers.
As we wrote in Pyramid, dated November 2.
Nearly everything you consume from the moment you wake up is owned by a handful of shareholders at the apex of the pyramid. There is no competition but merely a pyramid of power, wealth, and control.
The apex of the pyramid of absolute power and wealth is Vanguard and Blackrock.
One of the mysteries of the 20 century was what the assassinated US President JFK said,
“For we are opposed around the world by a monolithic and ruthless conspiracy that relies primarily on covert means for expanding its sphere of influence…” JFK.
Was JFK referring to the East during the height of the cold war or was he alluding to private banks controlling the issue of their currency?
The third US President Thomas Jefferson, also assassinated, was less ambiguous. “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.”
So are central banks, with their endless control over issuance of currency, the problem or the solution?