Rebellion in the Puppet Theatre: When Governments Warn of Central Bankers You Know its Trouble

 

 

 

The Nefarious Federal Reserve System and the gangster Al Capone have much in common these days.  It seems the Federal Reserve has shed its cloak of inscrutability for more flamboyant apparel as it has taken a very public leading role in combating the “financial crisis”.  Clearly the long term interests of the Fed are served by secrecy.  The Central Banks are owned by the super rich and they have prospered by secrecy and a cloak of obfuscation regarding their role as the governments, government.  It’s as if Al Capone had forgotten he was a gangster and a thief and that he had caused the problems he’s now trying so publicly to solve. Like Al Capone the Federal Reserve has no legitimate role in the economy because all the problems it would solve are self generated by an oligarchy of super rich families who are on to the next phase of social engineering by perverting the economy to do their bidding just as they used education and the media.

The Robber Barons of old, the Morgan’s, Rothschild’s, Rockefellers, were Millionaires before the last great Depression and they came out the other side as the world’s first Billionaires.  The cycle appears to be repeating and the Billionaire elites of today will doubtless emerge as the world’s first Trillionairs at the expense of every human being, and government, on this Earth. The worlds banking elites see their power grow after each economic depression and they fund both sides in our world wars so they always come out on top.

The Governments of the West, led by the USA, which is in turn a wholly owned subsidiary of the Federal Reserve System, have effectively been looted by financial institutions and industries deemed “too big to fail” and now the finale will be hyperinflation. The Federal Reserve may have avoided a depression with aggressive actions but they have surely destroyed the US Dollar in the process.  I doubt that we will be able to avoid a depression when the worthless US Dollar implodes from the Machiavellian Machinations of the central banks and the supremely powerful elites who own it.

The Power Elite masters of money have been so successful at hiding their control that most people believe that the Federal Reserve System is a part of the Federal Government.  It’s about as much a part of the government as “federal express”.  It’s a consortium of profit making banks that prints our currency for us, at interest of course, and lends it back to us and manages the financial world with limited involvement by the government. 

The President appoints the head of the Fed from a list of candidates supplied by the Fed!  The government can’t audit the Fed and has no input, beyond advisory input, into its decisions, policies or procedures.  The Fed is a completely autonomous central bank of the United States and its power, as people are beginning to wake up and see, by far surpasses the government of the United States.  The Fed can give us life, or it can take it away; in a contrived financial rescue that destroys the currency and with it the United States of America.  The Fed doesn’t work for America, or our government: it works for its stockholders and directors: the world’s elite banking dynasties.  If they decide the US must lose power they can do it and there’s nothing our government can do to stop them.

For much of our recent history there’s this tacit agreement between the financial elite and Western Governments in which we all agree to pretend that the financial elite don’t exist and the governments are calling the shots on world affairs.  Governments come and go and yet our course seems to be the same because the real power behind the Democrats and Republicans is the world’s financial elite.  It’s their policies that rule our lives not the political puppet theatre that is beholding to big money for election and re-election and high paid lobbying jobs and speaking fees if they should lose office. People are upset because the government seems not to listen to us, the people, anymore and they’re right.  The government, our professional politicians, listens to big money that controls the economy, education, media and government itself.  We can’t do anything to the professional politicians that big money can’t fix so why should they listen to us?  The lack of term limits has destroyed our power and given rise to a puppet theatre of politicians who base their decisions on the will of the financial elite rather than the will of the people.

A funny thing happened in Germany recently.  Their Prime Minister, Angela Merkel, accused the central banks of the west of creating another big bubble that threatens the German economy and that of every other nation as well.  The Germans don’t speculate about the economic conditions of the Weimar Republic as we do because they lived through it.  They know exactly what it can do, and did do, to Germany and the kind of leaders that emerge in economic conditions of such desperation.  It’s not a theoretical exercise for them, as it is for us in America,  it’s a living memory of pain etched on the faces of their grandparents and great grandparents.  Perhaps it’s not surprising that the only voice of warning from western governments rises from Germany about the dangers of hyper inflation and trashing your currency.  It’s a poignant cry of national memory that the world would do well to heed but the world goes on spending and borrowing while Chinese Students openly laugh at our Treasury Secretary Geithner as he assures them their American investments are “safe”.

Check out the following Article from the Wall Street Journal about the German Governments Warning:

 

Germany Blasts ‘Powers of the Fed’

By JOELLEN PERRY

AFP/Getty Images

In a speech on Tuesday in Berlin, Chancellor Angela Merkel expressed ‘great skepticism’ over the clout of central banks and suggested their aggressive moves in Europe, the U.S. and the U.K. might backfire. She is shown here at a rally later in Saarbrücken, Germany, for European Parliamentary elections.

German Chancellor Angela Merkel, in a rare public rebuke of central banks, suggested the European Central Bank and its counterparts in the U.S. and Britain have gone too far in fighting the financial crisis and may be laying the groundwork for another financial blowup.

“I view with great skepticism the powers of the Fed, for example, and also how, within Europe, the Bank of England has carved out its own small line,” Ms. Merkel said in a speech in Berlin. “We must return together to an independent central-bank policy and to a policy of reason, otherwise we will be in exactly the same situation in 10 years’ time.”

Ms. Merkel also said the ECB “bowed somewhat to international pressure” when it said last month it plans to buy €60 billion ($85 billion) in corporate bonds — a move that is modest in comparison to asset-buying by its counterparts, the U.S. Federal Reserve and the Bank of England. Details are to be unveiled by the ECB’s president, Jean-Claude Trichet, Thursday.

The public criticism is unusual — and not only because German politicians rarely talk harshly about central banks in public. When politicians around the world do criticize their central banks, they almost always gripe that they are too tightfisted.

The conservative German leader’s comments came as Europe’s statistical agency reported that unemployment in the 16 countries that share the euro rose to 9.2% in April — the highest level since September 1999 and still below the 11.5% that the European Commission forecasts for 2010.

However, the economic straits of countries within the euro zone vary widely. Germany’s unemployment rate of 7.7%, for instance, contrasts with 18.8% in Spain, where a collapse in the construction industry that was driving the economy has pushed unemployment to the highest in the euro zone.

It isn’t clear what triggered Ms. Merkel’s remarks, which came in a prepared speech. The ECB has been markedly less aggressive than the Fed or the Bank of England, particularly in moving beyond cuts in short-term interest rates to buy bonds to boost economic activity. However, German officials traditionally have been on the more conservative end of the central bankers’ spectrum, partly because the country’s hyperinflation of the 1920s is seared into people’s memories.

 

Reuters

European Central Bank President Jean-Claude Trichet will unveil Thursday details of a plan to buy some $85 billion in corporate debt. German Chancellor Angela Merkel said the ECB ‘bowed somewhat to international pressure.’

The ECB, the Fed and the Bank of England are increasingly vulnerable to criticism because they have played such a prominent role and crossed so many traditional lines in the past several months — even though they do appear to have steered their economies away from a repeat of the Great Depression. Neither the ECB, the Fed nor the Bank of England had any comment on Ms. Merkel’s remarks.

Her tough comments about the extent to which the central banks are intervening in the economy also come amid attacks on her by some in her conservative base for putting €1.5 billion of taxpayer money into a deal to shield Opel from parent company General Motors Corp.’s bankruptcy-protection filing.

Ms. Merkel’s critique jibes with statements from Axel Weber, the head of Germany’s central bank and a member of the ECB’s 22-person Governing Council. He has warned that too-loose monetary policy could fuel future inflation. Mr. Weber was among the body’s most vocal skeptics on asset purchases before the bond-buying program, reservations that were also shared by Jürgen Stark, another German on the ECB council. In a May 12 speech, Mr. Weber warned that overly generous monetary policy had helped build asset-price bubbles in the past.

In contrast, Athanasios Orphanides, the former Fed economist who now heads the Cypriot central bank, has been a vocal proponent of aggressive ECB policy. And many private-sector economists contend the ECB’s response to the global recession has been too cautious. The ECB cut its key rate to a record low of 1% in May. Mr. Trichet hasn’t ruled out further cuts, but most economists expect the central bank to stand pat Thursday and foresee the rate remaining at 1% for the rest of this year. The Fed cut its analogous rate nearly to zero in December and has said it will keep it there for some time.

Although the administration of President Barack Obama has carefully avoided criticizing the Fed, Republicans and Democrats in Congress have questioned the wisdom of the Fed’s power and its governance as they contemplate far-reaching changes to the nation’s financial regulatory structure. The senior Republican on the Senate Banking Committee, Richard Shelby of Alabama, recently asserted that “an inherent web of conflicts is built into the DNA of the Fed as it now exists,” a reference to commercial bankers’ role in overseeing the Fed’s 12 regional banks.

Some private economists — and a few inside the Fed — say the Fed’s aggressiveness is increasing the risks of an outbreak of inflation and creating the unwelcome perception that it will bail out big financial institutions when they take big risks that turn out badly.

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