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Time To Confront Central Bank Liars

Articles & Blogs - Canadian Commentary

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I’ve had enough. Day after day of 100% manure from these propagandists. It’s time to shout out that “the Emperors are wearing no clothes.”

For three years we have had to listen to B.S. Bernanke (yes, his initials really are “B.S.”) drone on and on about the mythical “U.S. economic recovery.” I recently pointed out with an abundance of long-term charts and elementary reasoning that it wasn’t even theoretically possible for the crippled U.S. economy to be growing.

However, don’t take my word for it. Instead, let’s look at the actions of B.S. Bernanke. Until Japan’s failed experiment with taking interest rates to zero – and leaving them there – no nation in modern history had ever engaged in such recklessly insane monetary policy.

There is a very good reason why this had never happened before in economic history. Zero percent interest rates (as I have noted previously) are nothing less than the economic equivalent of a defibrillator. It is a last-ditch, desperation measure designed to attempt to shock some life back into a dying body.

Ultra-low interest rates (interest rates much lower than inflation) were never intended as a permanent prescription for any economy. They rape “savers”. And with rapidly greying populations, we are becoming societies of savers. Leaving interest rates at near-zero is simply serial rape.

What happens when you rape savers again and again and again? They stop saving. They begin spending their paper as fast as they get it – the inevitable consequence of near-zero interest rates.

The math is simple. When you have “negative interest rates” (savings rates much lower than inflation), every day that people hang onto their money it loses value. So people spend that money today, rather than waiting until tomorrow to spend it  - when it will be worth less (worthless?). And when all the consumers start spending all their money as fast as they get it (and then borrow more at those near-zero interest rates), asset bubbles start cropping up all over the economy – starting with the real estate market.

This is what must happen with any/every economy with near-zero interest rates…with one exception. When does the human body no longer respond to a defibrillator? When it is already dead. When does an economy not “respond” to near-zero interest rates (i.e. explode into asset-bubbles)? When an economy is already dead.

All that Japan has accomplished with nearly two decades of near-zero interest rates is to prove beyond a shadow of a doubt (in hindsight) that its economy has been dead for all these years. Similarly, all that B.S. Bernanke has proven with his 3+ years of near-zero interest rates is that the U.S. economy is already dead.

We don’t need two decades of near-zero interest rates to prove the U.S. is an economic corpse. Defibrillating an economy with near-zero interest rates for 3+ years (and getting no response) is proof of death just like defibrillating a body incessantly for three years would prove it’s a corpse.

For the deluded apologists who claim there hasn’t been enough time for the U.S. to pump-up all of its asset bubbles yet again, there is an inevitable precursor for interest-rate induced asset bubbles: ultra-high inflation. If the U.S. economy was not already deceased then 3+ years of 0% interest rates would have already led to out-of-control inflation.

Yet we have B.S. Bernanke insisting that U.S. inflation is extremely low – despite the $trillions of new paper he has been relentlessly injecting into it for nearly 4 years. Even John Williams of Shadowstats.com who engages in honest calculations of U.S. inflation insists that U.S. inflation is still only “high” (just over 10%), but nowhere near the “hyperinflationary depression” he originally predicted for the U.S. going as far back as 2003.

Then there is the U.S. Treasuries market. What do the “highest prices in history” for U.S. bonds indicate from an economic fundamentals standpoint? That the U.S. economy is in the midst of its worst depression. There is absolutely no possible way to rationalize the highest prices in history for U.S. bonds and a “growing economy” – especially with the U.S. dumping the greatest supply of Treasuries in history onto the market. Maximum supply and a growing economy directly imply low Treasuries prices, not the highest prices in history.

However, it would be unfair to single out B.S. Bernanke for all of this criticism. There is also plenty to criticize about Canada’s central bank stooge: Mark Carney – yet another Goldman Sachs alumnus. Yesterday the Bank of Canada again left Canada’s interest rate frozen at its own near-zero level.

What was this liar saying today? He was gushing about the “strengthening” global economy, and thus the Bank of Canada elevated its projections for global economic growth for 2012. Where was the interest rate increase, Mark?

Any Canadians with functioning memories knows that Mark Carney has been lecturing Canadians incessantly for the past two years about their “over-spending”. As noted above, Mark Carney’s interest rates are 100% responsible for that behavior – as (like most people) Canadians demonstrate an aversion to rape.

Meanwhile, real estate bubbles across most large Canadian cities swell ever larger, and teeter ever more ominously. Mark Carney’s near-zero interest rates are 100% responsible for that as well.

In short, if Mark Carney believed one word of his own B.S. about a strengthening global economy then he would have raised interest rates yesterday, and indicated that many more increases were on the way. That would halt the “over-spending” of Canadians, rather than causing it. It would halt the growth of real estate bubbles across Canada, rather than causing them.

Just as with B.S. Bernanke, we see Carney’s actions always and absolutely contradicting his own words. When people say one thing but do another we call them hypocrites. When people intentionally say one thing but do the opposite then they are simply liars.

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zooey
...
written by zooey, April 20, 2012
Apologize for my new computer and keyboard.

Zero interest rates will continue. Following the Japanese lost decades; at least they will not lose power. Cripple the nation but the few will benefit.

Harper has no mind nor any soul. He should be taken in front of a court and prosecuted for, at least, stupidity and greed.

If we are still able to get our asses off the couch from watching dumb TV then we all need to vote this crap out. It is immoral.
zooey
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written by zooey, April 20, 2012
Carney is a dupe. Harper is bought (just like Mulroney).

They will ollow Japan's example as a means to hold power at the expense of everythng else. So sad,

In Canada we have only one hope and that is to boot them out of office with a clear message. I am not the bigges fan of McLair but that is all we got. Far as BC goes NDP is the only clear way to tell the situation to stop. PERIOD. Didja hear where Harper said he would over-rule any assessment if it was in the public interest? This is enough.
Jeff Nielson
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written by Jeff Nielson, April 19, 2012
People tend to copy the actions and behavior of their government officials. If they can do it, why can't we? If the gov't can write hot checks, why can't we? If the gov't can lie, cheat, and steal, why can't we? Soon the entire political and economic system is ruined, as trust flees the country.

Liars soothe their conscience by rationalizing that everyone does it. What they do not know anymore is that God equated lying with murder. He called the devil a murderer from the beginning. What the devil did in the beginning was to tell a lie. It was the result of that lie that caused sin and death.

If a person believes a lie, and takes action based upon that mistaken belief, those actions have consequences. Some of those consequences are deadly. So, if someone lies to you, they don't care if you live or die.

There is good reason why thieves are sentenced with capital punishment in Asia. Economic lies cause economic death, which causes starvation. B.S. Bernanke, and everyone else engaged in this propaganda regime are guilty of murder in God's eyes.


Jeanna, you've certainly captured many of my own thoughts with that comment!

Yes, I have also maintained all along that one of the great EVILS of our society is that our (so-called) "leaders" are held to a much, much lower standard of conduct than everyone else.

As you pointed out, humans tend to mimic authority figures - whether it's children mimicking their parents or citizens mimicking their governments.

We UNDERSTAND that parents need to set a good example for their children, yet we allow our leaders to ACT LIKE CHILDREN - in that they NEVER take responsibility for their own actions.

Instead, these immoral posers SAY that they are "taking responisbility" for their misdeeds - but then they never DO anything. Indeed, the sum TOTAL of their accountability is merely to SAY that they are "taking responsibility".

smilies/cheesy.gif

P.S. I was just thinking this morning what a huge oversight it was not to mention how CHINA sentences its fraudsters the last time I wrote about how the U.S. gives its financial criminals a free-pass.

Yes, I fully agree with you that these MASSIVE financial crimes are deserving of sentences AT LEAST as harsh as those for a single murder. When these financial pirates DESTROY the finances of thousands (and even MILLIONS), how many of those people end up committing suicide?

Greek suicide rates have DOUBLED since Wall Street's econimic terrorism began. ALL of that blood is on their hands!!

smilies/angry.gif
Jeff Nielson
...
written by Jeff Nielson, April 19, 2012
...The thing that gets me the most is that we can be certain that when the global currency devaluation takes place, Harper will be out in full force lecturing us about the virtues of austerity and how it’s essential to balance the budget to avoid what’s happening in front of us. Yet it’s the Harperites that have racked up the most debt in Canadian history, forcing average middle class Canadians to pay for his crony corruption for the rich. He’ll use it as an excuse to axe any remaining environmental and social safeguards we currently enjoy, and open up Alberta to allow full exploitation to export our inheritance to the world.


You've summarized the ugly truth Null: the rich BINGE and then expect everyine ELSE to purge - to PAY FOR their excesses.

And as you noted, it's the right-wing Mulroney-clones like Harper who CREATE these massive debts - then they have the GALL to claim that THEY are the only ones with the "economic savvy" to fix their OWN mess.
Jeanna
...
written by Jeanna, April 19, 2012
People tend to copy the actions and behavior of their government officials. If they can do it, why can't we? If the gov't can write hot checks, why can't we? If the gov't can lie, cheat, and steal, why can't we? Soon the entire political and economic system is ruined, as trust flees the country.

Liars soothe their conscience by rationalizing that everyone does it. What they do not know anymore is that God equated lying with murder. He called the devil a murderer from the beginning. What the devil did in the beginning was to tell a lie. It was the result of that lie that caused sin and death.

If a person believes a lie, and takes action based upon that mistaken belief, those actions have consequences. Some of those consequences are deadly. So, if someone lies to you, they don't care if you live or die.

There is good reason why thieves are sentenced with capital punishment in Asia. Economic lies cause economic death, which causes starvation. B.S. Bernanke, and everyone else engaged in this propaganda regime are guilty of murder in God's eyes.
Null
...
written by Null, April 19, 2012
Just tonight my friend / roommate (I rent his basement) asked me what I thought this house was worth in North Vancouver now (he owns 4 properties with mortgages and is trying to get more loans to expand his retail business). “I don’t know, I don’t follow the property bubble from month to month, maybe $700,000?”. “More like $900,000!”

So then… me, an upper middle class professional earning a decent salary, cannot even hope to “buy” property in Vancouver beyond a small closet out in the far suburbs. And people are wondering if there’s a bubble??

The thing that gets me the most is that we can be certain that when the global currency devaluation takes place, Harper will be out in full force lecturing us about the virtues of austerity and how it’s essential to balance the budget to avoid what’s happening in front of us. Yet it’s the Harperites that have racked up the most debt in Canadian history, forcing average middle class Canadians to pay for his crony corruption for the rich. He’ll use it as an excuse to axe any remaining environmental and social safeguards we currently enjoy, and open up Alberta to allow full exploitation to export our inheritance to the world.
Jeff Nielson
...
written by Jeff Nielson, April 18, 2012
"Jeff, does this mean that following Japan's example, even the US could keep the shell game going on by freezing rates to near zero?"

Great question Samix!

The "short answer" is no. A longer answer can be found in a commentary from last year:

U.S. Faces Much Worse ‘Japanization’

http://www.bullionbullscanada.com/us-commentary/22650-us-faces-much-worse-japanization

Basically what has been happening in Japan for the last 20 years is that the government (and its OWN bankster Oligarchs) have been cannibalizing the MASSIVE SAVINGS of the Japanese population.

They've duped their OWN ("highly patriotic") sheep into BUYING much of their own worthless bonds, DELAYING the final, total collapse of Japan's economy.

The U.S. BEGAN its own Japanization with virtually ZERO savings amongst the broader population. Thus ALREADY it has only been able to delay its own default/bankruptcy by COUNTERFEITING money to buy-up all these zero-interest bonds - since there are no U.S. savings to soak up this worthless paper.
samix
...
written by samix, April 18, 2012
Jeff, does this mean that following Japan's example, even the US could keep the shell game going on by freezing rates to near zero ?

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