|
One of the greatest con jobs in history was convincing ordinary people
that Central Bankers care about the “economy” or Main Street.
Aside from the complete lack of relevance that Main Street has for Central
Bankers from a professional perspective (more on this in a moment), when do
you think was the last time that Janet Yellen or her ilk spent an evening
with non-banker/financial types? Years ago? Decades ago?
Yellen lives in a super-affluent, gated part of Washington DC. And even
within that subset of the US population she lives in a higher echelon: her
entourage of security annoys her wealthy neighbors… though I suspect part of
the annoyance stems from jealousy.
Regard professional significance… why would Janet Yellen care about
ordinary people? They’re just data points in her financial models. Ordinary
people didn’t place her at the Fed (the big banks did). And they didn’t place
her as Fed Chair (the financial/ political elite did… with the express intent
of gaining future favors).
Think of it this way… imagine there was a super cartel of English
Professors who controlled what words you or I could use in daily
conversation. These individuals literally could change the structure of the
human language if they wanted… removing words or adding words at random.
Now imagine that they randomly pick out a low level English Professor who
they elevate to being the face of their organization. Do you think this
professor would give a damn about how her decisions/ words affected speech?
She literally was made one of the most powerful people in the
world by this cartel.
This is case worldwide. Most Central Bankers came up from the Too Big To
Fails or Primary Dealers (or they are academics like Yellen or Banenke who
get their first taste of the “real world” when they’re literally running
the financial system).
Literally their entire personal net worth… their professional
clout… and their sense of accomplishment was derived from working at these
organizations.
And somehow they’re supposed to give a hoot about Joe the Plumber or Bob
the Boilermaker? They don’t even deal with those people face to face when
they have a problem with their homes. “Hello this is Mario Draghi… the
man who controls the currency in your economy… could you please come fix the
sink?”
This is why Yellen, Draghi and the like can say with a straight face that
maintaining ZIRP or NIRP benefits the economy. It’s why they can spent
trillions to bail out/prop up banks without batting an eyelid. It’s why no
one who committed fraud went to jail. It’s why lying and
cheating in the financial system is allowed… even applauded… because the ones
lying and cheating are the same people who picked out/ promoted the
regulators.
And this is why we’re heading for another Crisis… one that will be even
bigger than 2008. The fraud that caused 2008 was not solved. Instead it was
allowed to spread into the public sector. Today most Central Banks are
sporting leverage ratios that would put Lehman Brothers (pre-crisis) to
shame.
So the next time something breaks in the financial system… it won’t be
just individual banks going belly up. It will be entire countries.
Indeed, consider China, where the Central Bank is pumping $29 billion per
day into the financial system… and the stock market continues to
Crash. There are in fact situations that are so dire that Central Banks
cannot fix them.
What’s happened in China is coming to your neighborhood… wherever you are.
If you’ve yet to take action to prepare for the second round of the
financial crisis, we offer a FREE investment report Financial Crisis
"Round Two" Survival Guide that outlines easy, simple to
follow strategies you can use to not only protect your portfolio from a
market downturn, but actually produce profits.
You can pick up a FREE copy if you
|
