Central Banks: A Question of Governance

By:


Fiscal year 2015 is upon us, and is fast becoming the year of historic monetary policy changes in light of an appreciating US currency and, in turn, a blanket decrease in European and Asian economic growth.  Since late 2014 and in full swing 2015, the Danish central bank, the Swiss National Bank, and  the Bank of Russia cut key interest rates, with probable Turkish Central Bank short term rate cuts to follow. The Bank of China has recently reduced its requirement ratio as well to encourage growth. In the US it is expected that the Federal Reserve raise short term rates by mid-year 2015, a policy change that has not been effectuated for over three years. It is apparent that governments are depending heavily on central banking to modify economic growth patterns as a short term solution.
While the spotlight is fixed firmly on central bank monetary policy to control the global economy, should central banks be fully responsible for financial stability? From a governance perspective, central banks act first and foremost as an independent or fully state-run agency to ensure adequate capital liquidity.  The gist of central banking is to control the effects of growth expansion or decline, and not necessarily to be the institution to structure economic growth itself. In addition, one of the tenets of central banking is to oversee a sovereign’s commercial banking system, and be thus supported simultaneously by government legislature.
If this foundation of central banking was kept constant, we would not have had such financial turmoil in 2008. However, lack of commercial bank corporate governance due to lobbying influence has vastly undermined central banking effectiveness in the long term.
In layman’s terms:

  1.  Short term upon short term upon short term monetary rate fixes does not equal proper long term decisions. Decisions that should be made with no biased influence from legislature.
  2. The global monetary system has moved from fully secured to almost totally unsecured asset-backing over the past 40 years. Most world currencies are much less asset-backed than ever before.

Both very simple reasons listed above explain why at anytime an industry receiving the most ‘creative’ cash flow (derivative upon derivative) will experience the dreaded bubble. And, while it is natural in the scheme of a global economic cycle to have peaks and troughs, the mass non-collateralization of currencies, followed by a now endemic financial culture of sophisticated derivative creation leads to unsustainable growth. It’s less long term growth and more adrenaline rush. We have more monetary policy magicians at work than real doctors of the art.
The Bank for International Settlements examined the central bank’s role in being the overseer of global financial stability in its May 2009 publication, Issues In The Governance Of Central Banks. The article points out that while central banks are needed for monetary stability, having the central bank be the main institution for overall financial stability gives unwarranted responsibility, and unnecessarily overlaps with government functions:
Governance arrangements for the financial stability function are generally less settled than for the monetary stability function…apart from the lender of last resort function and various regulatory powers, there are no central bank policy instruments that are uniquely suited to ensuring systemic financial stability. Instruments that might influence financial stability have other primary roles…Using such instruments for ends other than their primary purpose inevitably involves trade-offs.
It is therefore ill-advised policy to depend solely on the central banking model for ongoing global financial stability. Yet, from a governance perspective can individual banks be allowed full deregulation? Deregulation makes sense in a free market economy. However, judging from the shenanigans of 2008, we need checks and balances in our global banking system. In the US, bank regulation took a dive in December 2014: Section 716 of Dodd-Frank financial law, which would have forced big banks to keep their derivatives mostly separated from their insured deposits, was repealed by the U.S. Congress, with planned repeals to follow in FY2015. Can a global economy with rampant recession afford the repercussions of a huge financial crisis within the next two years? Probably not: short term policy issued by a sovereign’s central bank cannot fully override financial policy decisions made by legislature, based on corporate influence.

Tagged:

What Would Our Founding Fathers Think if They were Alive Today?

By:


I believe the Founding Fathers would surely be proud of the vastness and strength of the United States, but they would be strongly disappointed with how we’ve come to interpret the Constitution.

Furthermore, they would be even more disappointed with the fact we have created a central bank that artificially foments growth and debases our currency through fraudulent monetary policy.

The Framers warned about our country and capitalist structure suffering from a central bank that purposefully imbalances the market in order to create phony credit and fake booms in the business cycle. The size and scope of the federal government, the incredible power of the Federal Reserve, and our empire overseas all would be considered perversions of the U.S. Constitution.

Surely they would be very proud that the United States has built some of the most amazing cities that the world has ever seen. They would in fact probably be surprised that the country they founded went on to become the greatest economic machine in the history of the world, and they would be absolutely astounded by things like our interstate highway system and the Internet.

However, there are quite a number of things that they would be horrified about as well and they never would have believed this would ever happen to the United States of America. Things such as …

  1. The Federal Reserve devaluing the U.S. dollar by over 95 percent since 1913 and using this strategy to create the biggest mountain of government debt in the history of the world.
  2. The U.S. Court of Appeals for the Ninth Circuit ruling that U.S. government agents can legally sneak onto your property in the middle of the night, place a secret GPS device on the bottom of your car and keep track of you everywhere that you go.
  3. The U.S. government accumulating a national debt that is rapidly approaching the 18 trillion dollar mark.
  4. Americans now owing more than $1.1 trillion on student loans, which is more than the total amount that Americans owe on their credit cards.
  5. Americans wasting an astounding amount of food. According to a study by the California Integrated Waste Management board, 63 percent of the average supermarket’s waste stream is food. When you break that down, it means that each supermarket wastes approximately 3,000 pounds of food each year.
  6. Manufacturing employment in the United States falling by 40 percent since 1979.
  7. The number of Americans with manufacturing jobs today in 2014 being smaller than the number of Americans who were employed in manufacturing in 1950.
  8. Over 45 million Americans enrolled in the food stamp program now considered “the new normal” and Americans continuing to drop into poverty in astounding numbers.
  9. Barak Obama backing a proposal to create a national database that will store the DNA of all individuals who have been arrested, even if they end up not being convicted of a crime.
  10. The average American worker now paying literally dozens of different kinds of taxes each year.
  11. Christians now being arrested and thrown in jail in some areas of the United States for quietly passing out Christian literature on public sidewalks.
  12. Nearly half of all Americans now using prescription drugs on a regular basis.
  13. Americans now spending large amounts of cash now viewed as “potential criminals” by the U.S. government in 2013.
  14. New full body security scanners going into airports all across the United States now actually seeing through our clothing and producing very clear and very detailed images of our exposed bodies as we walk through them.
  15. The U.S. government spending an amount of money equivalent to approximately 25.4 percent of GDP this year.
  16. 10,000 people making today 30% of the total income in the United States.
  17. 61% of Americans between the ages of 44 and 75 saying today that running out money was their biggest fear. The remaining 39% saying death was scarier.
  18. 28% of all U.S. households – according to one recent survey – having at least one person that is currently searching for a full-time job.
  19. Major international organizations actually proposing that the United States start considering the adoption of a truly global currency.
  20. One group of high school students making national headlines recently revealing that a security guard ordered them to stop singing the national anthem during a visit to the Lincoln Memorial.

It is clear that most of the challenges that are found in the US today and for that matter, throughout most of the developed world stem from a number of causes including but not limited to the facts that:

  • industrialization is maturing, which creates a huge systematic failure as there were no proactive measures taken to address it – middle income jobs are and will continue to disappear, which creates a huge hole in a society
  • values have shifted since the founding fathers, including a world of much more self-interest and creativity versus hard-work and benefit ‘for all’
  • many individuals with no conscience are now running government and businesses – on the surface they will give the appearance of caring but actions speak louder, and clearly others do not matter
  • financial system has become very mature and is run by brilliant self-serving individuals that have one goal – higher and higher profits short-term, which creates systematic failure and risks that sooner or later will break the system
  • governments inability to run such a large system, as what the US has become – goal is to get re-elected which creates huge problems given their perception (and maybe reality) that the populace wants benefits today, not the future
  • overall values of people have shifted from community to self; from giving to receiving; from kindness to aloof – we may be forced to change back
  • Unparalleled hubris and arrogance getting people in more trouble, and the US is unfortunately perceived that way – empires have fallen based on such beliefs
  • general level of unhappiness in society and people, shown by such things as the masses on anti-depressants to try to get through life; or the addictions in society including drugs, alcohol and television – all clearly not leading to a productive society

But perhaps most of all, our founders would be absolutely disgusted that the land where Americans could once be free to pursue life, liberty and the pursuit of happiness has become so tightly regulated and controlled that Americans dare not even squeak without the permission of the federal government.

Needless to say, our founders would certainly not understand many of our institutions or many of the advanced technologies that we have today….. But without a doubt they would be able to grasp how far we have fallen as a nation and how far we have strayed from the fundamental principles that they enshrined in our founding documents. The United States is a much different place today than it was in 1776, and unfortunately many of the changes have been for the worse.

The Founding Fathers did THEIR job, and now it is up to us to do OUR job!

Are you up to it?

Share your thoughts…

Tagged:

Discerning Fact from Fiction

By:


There was a time that governments and the groups of elites that controlled them did not find it necessary to conscript themselves into wars of disinformation.

Propaganda was relatively straightforward. The lies were much simpler. The control of information flow was easily directed. The elites kept the information to themselves, and removed its remnants from mainstream recognition, sometimes for centuries before it was rediscovered.

With the success of the American Revolution, elitists were no longer able to dominate information. The establishment of Republics, with their philosophy of open government and rule by the people, compelled Aristocratic minorities to plot more subtle ways of obstructing the truth and thus maintaining their hold over the world without exposing themselves to retribution from the masses. Thus, the complex art of disinformation was born.

The goal was malicious, but socially radical; instead of expending the impossible energy needed to dictate the very form and existence of the truth, they would allow it to drift, obscured in a fog of contrived data. They would wrap the truth in a Knot of misdirection and fabrication so elaborate that they felt certain the majority of people would surrender, giving up long before they ever finished unraveling the deceit. The goal was not to destroy the truth, but to hide it in plain sight.

In modern times, and with carefully engineered methods, this goal has for the most part been accomplished. However, these methods also have inherent weaknesses. Lies are fragile. They require constant attentiveness to keep them alive. The exposure of a single truth can rip through an ocean of lies, evaporating it instantly.

The mainstream media, once tasked with the job of investigating government corruption and keeping elitists in line, has now unfortunately become nothing more than a public relations firm for corrupt officials and their Globalist handlers. The days of the legitimate “investigative reporter” are long gone (if they ever existed at all), and journalism itself has deteriorated into a rancid pool of so called “TV Editorialists” who treat their own baseless opinions as supported fact.

The elitist co-opting of news has been going on in one form or another since the invention of the printing press. However, the first methods of media disinformation truly came to fruition under the supervision of newspaper magnate William Randolph Hearst, who believed the truth was “subjective” and open to his personal interpretation.

TV pundits are often trained in what are commonly called “Alinsky Tactics.” Saul Alinsky was a moral relativist, and champion of the lie as a tool for the “greater good”; essentially, a modern day Machiavelli. His “Rules for Radicals” were supposedly meant for grassroots activists who opposed the establishment and emphasized the use of any means necessary to defeat one’s political opposition. But is it truly possible to defeat an establishment built on lies, by use of even more elaborate lies, and by sacrificing one’s ethics? In reality, his strategies are the perfect format for corrupt institutions and governments to dissuade dissent from the masses. Today, Alinsky’s rules are used more often by the establishment than by its opposition.

Alinsky’s Strategy: Win At Any Cost, Even If You Have To Lie.

Alinsky’s tactics have been adopted by governments and disinformation specialists across the world, but they are most visible in TV debate in the US today.

The next time you view an MSN debate, watch the pundits carefully, you will likely see many if not all of their strategies used on some unsuspecting individual attempting to tell the truth.

The truth is precious. It is sad that there are so many in our society who have lost respect for it; people who have traded in their conscience and their soul for temporary financial comfort while sacrificing the stability and balance of the rest of the country in the process.

The human psyche breathes on the air of truth. Without it, humanity cannot survive. Without it, the species will collapse, starving from lack of intellectual and emotional sustenance.

Disinformation does not only threaten our insight into the workings of our world; it makes us vulnerable to fear, misunderstanding, and doubt: all things that lead to destruction. It can drive good people to commit terrible atrocities against others, or even against themselves.

Without a concerted and organized effort to diffuse mass-produced lies, the future looks bleak indeed.

It is a fact that not enough Americans feel a high enough level of pain yet. When they do, who knows what the results will be.  I frankly don’t think we can judge, (based on current experience trying to ‘wake’ people up), what will happen in the future.

I warned you though … Let’s see what you make out of it.

Tagged:

America Tear down the wall before it’s too late

By:


I am afraid America makes less sense every day.

Little children are randomly slaughtered in their schoolrooms. Predator drones roam the skies over foreign countries exterminating bad guys, along with innocent women and children (collateral damage when it occurs in a foreign country). Drugged up mentally ill kids with no hope and no future live lives of secluded quiet desperation until they snap. Ignorant, government educated, welfare dependent drones with no self respect or respect for others, assault, kill and rob within their government created urban ghettoes. Sociopaths who committed the largest financial crime in world history walk free and continue to occupy executive suites in luxury office towers in downtown NYC, collecting millions in bonuses as compensation for crushing the American middle class. Academics, whose theories have been thoroughly disproven, continue to steer our economy into an iceberg while accelerating the money printing and debt issuance that will sink our ship of state. Corrupt, bought off politicians pander to the lowest common denominator as their votes are only dependent upon who contributed the most to their election campaigns, which never end. Delusional, materialistic, narcissistic, math challenged consumers (formerly known as citizens – live for today, enslave themselves in debt, vote themselves more entitlements, and care not for future generations.

We have increasingly foresworn the concept of citizenship and replaced it with the me-first culture of entitlement. We are no longer members of a community with civic values. We have become predators, parasites, consumers, contributing nothing to those around us except carbon dioxide and the bills and responsibilities for our mess. The alienation and isolation created by our sprawling, automobile dependent, technology obsessed, government controlled, debt financed society has spread like a cancerous tumor, slowly killing our country. We are a society of paradoxes. We have many connections, but “connect” with fewer and fewer. We communicate with many more people but seem to communicate only rarely. We use earbuds, IPods and other devices to shut off reality, then feel exasperation when we sense that no one understands us. We give up our privacy voluntarily, forgetting the proper boundaries between the public and private, then feign outrage when the government surveills us. We rush to judge and condemn others mercilessly, yet our new national pastime is the search for the approval of others, to be “liked” on Facebook. We demand genuineness in others yet employ public relations specialists and technology gurus to scrub our Internet reputations. We communicate with abandon, then feel shame when we realize we can neither choose our audience nor compel its approval of us.

The government oppression and never ending wars waged by the American Empire around the world have created a society built upon fear of disapproval and loathing of rejection. We are a “soft” nation, a “soft” people, and all this dysfunction is rooted in psychological, collective dysfunctions. This nation can be brought to its knees if its enemies can merely “shut us down” and make us feel uncomfortable. Removing our creature comforts — the technology which feeds our need to “keep up,” to be “plugged in,” — which have become a form of mental addiction to many in our educated classes leaves too many of our opinion leaders and elected leaders vulnerable to pressures. We fear adversity, shun responsibility, yet root for sports teams and stars — others — who embody these values. We are a lazy nation. Work has become something for other people to do.

Since 1979, Total Credit Market Debt in the United States has risen from $4.3 trillion to $55.3 trillion, a 1,286% increase in 33 years. Over this same time frame total wages and salaries have risen from $1.3 trillion to $6.9 trillion, a 531% increase. GDP has grown from $2.6 trillion to $15.8 trillion, a 608% increase. Luckily for the oligarchs, the math challenged masses don’t understand that 375% of the increase in GDP is strictly due to Federal Reserve created inflation, as the U.S. dollar has lost 68% of its purchasing power since 1979. This GDP growth was driven by debt, with consumer expenditures rising from 61% of GDP in 1979 to 71% of GDP today. In the one hundred years since the creation of the Federal Reserve the country’s population has tripled, while our public debt and unfunded liabilities have risen from $2 billion to over $200 trillion, a ten million percent increase. The masses have been programmed and conditioned to love their debt servitude and yearn for more debt to fix an economic system that collapsed due to excessive debt. The cadre of ruling elite are obliging by creating debt at hyper speed levels. The corporate media, Wall Street shysters and low-life captured politicians assure the sheep-like masses that this is normal and beneficial to their interests, as the sheep are sheared and led to slaughter.

Just a cursory examination of our society reveals a population of salivating consumers (dogs) who can be stimulated to buy the latest iPhone or techno-gadget with a simple Madison Avenue advertising campaign (bell). Everyone has seen the videos of the masses lining up like cattle on Black Friday, stampeding through aisles, and fighting each other like their the entertainment at Michael Vick’s house on a Saturday night. All the mega-corporate retailers and the corporate media have to do is ring a bell (SALE) and the dogs start salivating. Product placement, Hollywood star endorsements and influential people using a product immediately convince the easily manipulated dogs to salivate and purchase the products. The difference is that these dogs have credit cards issued by the Wall Street banks and funded by the Federal Reserve with dollars created out of thin air. We are inundated with millions of TV, newspaper, radio, billboard, and internet advertisements designed to make us salivate (spend).

In reality our “technological progress” has done nothing more than create a humorless, shallow, superficial world of alienation and egocentric desires. Just as in Huxley’s Brave New World, science and technology have not been used to seek truth and advance our culture. They have been used by the State to censor, control, and monitor the citizens. They use technology as a means to create electronic entertainment machines that generate both harmless leisure and the high levels of consumption and production that are the basis of societal stability and state designed happiness. When those in control talk about progress, they mean greater control over our lives. When the consumption of material goods isn’t enough to fill the holes within our souls, our owners are quick to prescribe a pill to smooth over those feelings of unease and discontent.”In America the government controlled drug industry has thousands of pills to treat every ailment or unhappy thought that might ail you. Just don’t try and treat yourself with an unapproved natural or banned substance. The threat of imprisonment always lurks in the shadows. They just want us to be interchangeable bricks in the wall.

We glorify technology even though it encourages the building of brick walls, creating a self-imposed isolation from society. The traditional family unit has been discarded, with 50% of marriages ending in divorce and 43% of all children born out of wedlock. Millions of families are dysfunctional, with parents too busy with their careers and acquiring material possessions, to bother with raising their children in a loving nurturing way. One in ten American adults choose to escape their man made cells with prescription anti-depressants. Almost one in four women in their 40s and 50s are popping pills to escape their depressing lives. The wealthy think medicating their kids, spoiling them with toys, gadgets and cars, and occupying their days with organized sports and activities passes for involved parenting. Poor urban children are lucky if they ever lay eyes on their father. Ignorance, violence, and dependency are a given for most of these kids. And all of these children are matriculated into the government run schools whose sole purpose is to teach kids what to think, rather than how to think. Indeed, the recent emphasis on testing and performance seems to be at the expense of actual teaching of critical, analytical thinking. Our owners need to keep us “happy” and focused on feelings, material possessions, and an infinite number of distractions, so they can retain control and continue their pillaging of the national wealth.

Our leaders have attempted to design their own Brave New World, retaining control by making America’s citizens so contented and superficially fulfilled that they no longer care about their personal freedoms, liberties and civic responsibilities. The consequences of increasing state power are a loss of dignity, morals, values, and emotions. We are losing our humanity. Decades of media propaganda, public education mind control, and peddling of debt convinced the majority that happiness meant immediate gratification of our desires for food, sex, drugs, clothes, iGadgets, and all the other consumer crap made in corporate sponsored slave labor factories across Asia. These delusional hallucinations of happiness are the prison walls we’ve built brick by brick.

It took the intellectuals and progressives that wield power across the land only moments to hijack the feelings of sorrow and pain sweeping the nation, to misdirect attention from the mental illnesses caused by the society they’ve created, towards the false storyline that gun violence is sweeping the land. In reality, violent crime has been falling for over a decade as gun sales have soared. The homicide rate in this country is the lowest since 1964, with the vast majority of homicides occurring in the urban kill zones created by the five decade long progressive war on poverty. The truth is of no interest to those brandishing power. After decades of conditioning, the masses are psychologically captive to the messages designed to make them salivate. They will be compelled to think, feel and act as instructed by the Alphas. There will be calls for more police, despite the fact that police rarely stop a crime. With all of their armaments, technology, high powered weaponry, and political clout, they can be counted on to arrive five minutes after the tragedy is over. But they are brilliant in luring clueless Muslim teenagers into terrorist plots, picking the target, providing the fake bombs, and taking credit for foiling the plots they created. More union police officers will increase our safety as much as more union teachers have made our kids smarter. This tragedy will be used by the propagandists to impose further restrictions upon those who choose personal responsibility and self-reliance over dependency and trust in the efficiency and fairness of our benevolent government overlords.

I mourn for the children being raised in a society run by evil psychopathic liars that use the power of propaganda and the tools of debt to control and manipulate its citizens. I mourn for unborn generations that will be forced to confront the dreadful depraved chaos created by our culture of egocentric greed and narcissism. The things we value in this culture – accumulating wealth, outward beauty, acquisition of material possessions, instant gratification, access to debt, government control, and curing our ills with drugs – are driving us insane. Who is really abnormal in a profoundly abnormal society? The ‘new normal’ is anything but. Believing that possessions, more laws or another medication will truly make us happy — or safe — is insane. Popping a pill, buying a new iPhone, or passing another law will not cure the disease that permeates this nation. We need to recapture the humanity, civic pride and self-responsibility that built this country. Only an awakened populace can change our course.

George Orwell was afraid that what we fear would ruin us. The oligarchs have pushed the Orwell vision to its sustainable limit. The avarice and greed of these invisible power brokers has devoured the vast resources of the nation. These psychopaths weren’t satisfied with siphoning off most of the wealth of the country. They wanted it all and wrecked the global economy in their odious pursuit of mammon. We are now in the death throes of the most decadent, delusional, debt engendered era in the long history of mankind. Those in power realize it is slipping away. Their “solutions” reflect an air of desperation. Their propaganda efforts have been redoubled. As more middle class workers lose their jobs, more young people graduate from college with tens of thousands in student loan debt and a future of dramatically reduced expectations, and more people are driven beyond their breaking point, this materialistic shroud of happiness will be torn asunder. Anger is building like a lava dome within a volcano. A critical thinking minority are questioning the motives of those in power. There is already a palpable degradation in behavior, a rise in passive-aggressive behavior as people try to respond rationally, to compensate for what they sense has been lost to the unfairness, hypocrisy and shallowness of the society and system around them. The unsustainability of our economic paradigm is certain. The seeds of revolution are being sown. Our society is only fantasy. The wall is too high. It will be up to an irate tireless minority of freedom minded citizens to tear down the wall. The alternative is to allow the worms to eat into our brains. Each of us must answer a simple question. Are you just another brick in the wall?

The oligarchs will not give up without a fight. Their realization that the Brave New World method of controlling the masses has run its course has convinced them to shift their methods towards Orwell’s 1984 tactics.

What are you doing to counter these growing threats in the making?

You’d better wake up to reality.

Tagged:
Page 2 of 2
1 2