How is such theft possible?
Bank of Canada Governor, Mark Carney, soon to take up his new post as Governor of the Bank of England, has given as clear an understanding of how the swindle will be perpetrated as can be expected from a public source, openly musing about central banks targeting, not inflation, but GDP.
What's it mean?
Central banks traditionally had one instrument with which to influence a national economy; namely, interest rates. When a credit-fueled real estate or consumer spending boom threatened to drive demand in excess of supply thus causing prices to rise, central banks would raise interest rates, thereby slowing bank lending and heading off a major inflation. Conversely, when a contraction in demand threatened a recession, central banks lowered interest rates to stimulate borrowing, and hence demand.
But there's trouble when demand flags or fails to rise when interests rates are already close to zero. If people won't borrow to spend when interest rates are zero, whaddya do? Whereas, the central bank can rein in borrowing by raising interest rates, they cannot force people to take loans however low interest rates fall.
Or, as the bankers like to say, you cannot push on a piece of string. But wait: what if you make interest rates negative? Yeah: borrow a buck and pay back 50 cents in seven years time. Only a fool would refuse the offer. Right?
|QE V. 1.0. Image source|
Soon you've got the economy going again: everybody's buying and investing in real things, houses, factories, big box superstores, whatever. And the big debtors know that when it comes time to pay the money back it will be worth much less than when they borrowed it, even after they've added in the ongoing interest expense.
But this is really not for the little people. Once the inflation's ignited, interest rates will be raised. Not enough to compensate for the loss in the value of your savings, of course. But enough to prevent reflating the housing bubbles, and to prevent the plebs from buying more than the bare necessities of life from the big box importers of cheap Chinese stuff. And enough to prevent the average middle-class devotee of thrift from realizing how badly they are being gouged — especially after the measly interest they earn on their devalued savings has been taxed at their marginal rate of 40 to 50%.
So if you've got GIC's or money sloshing around in a credit union account, or maybe a wad of those nice new plastic Canadian fifties or hundreds stashed under the mattress, get ready to see it all shrink in value.
For the monied interests, the proprietors or the New World Ordure, the universe is unfolding as it should. The consumer society, the vision of which brought down the Soviet Union, the economic miracle of which we in the West proudly assumed to be the mark of Western superiority, will soon be a thing of the past.
And as the billionaires so reasonably assert: it's no good having the plebs louse up the place with their ugly suburban villas, while choking the roads and poisoning the atmosphere with their SUV's. No, the thing is to export those overpaid Western jobs to the slave plantations of Asia, and bring millions of Third Worlders to the West, where they will be content to work at minimum wage or less, without any silly nonsense about the great Western tradition of respect for human rights and freedoms.
This phase of the unfolding of the New World Order is spelled out in a report for CEO's now in circulation. The economic problem of the day, the report states is excess debt. Much of this debt the report says will never be repaid. Hence the conclusion:
Holders of the debt, be they countries or companies, should be allowed to default, whatever the short-term pain of such a process.Note, no suggestion of debt relief for the little people overloaded with mortgages and car loans. No, no, certainly not. On the contrary, the report asserts:
... retirement ages will have to increase. People will have to work harder, for longer and should be encouraged to do so by changes in benefit[s]Ha! There goes yer sick pay, you malingering bum, there goes yer food stamps, yer workshy layabout, there goes yer pension you thought you'd paid in for. What's more:
The size of the state should be radically reduced and immigration encouraged. Competition in labour markets through supply-side reforms should be pursued.Ha ha! That'll show you, just how much we need you — not at all! We're gonna bring in millions and millions of foreigners who will swamp your working class neighbourhoods, and impose their religions and cultural habits on your community whether you like it or not. It's called genocide and that's the policy of the New World Order, aka the hypercapitalist entity that owns the political leadership of the Western States.
What Millions Want For Christmas: A Job
The latest jobs reports shows there are over 12 million people unemployed [in the US], the average duration of unemployment is over 40 weeks, and over 40% of the unemployed have been unemployed for over 27 weeks.
Another 8 million people want full-time jobs but only have a part-time job. And finally, unemployment stats do not capture millions more who are so discouraged they stopped looking for jobs.