The War On Savers And The 200 Rulers Of Global Finance

David Stockman's Contra Corner ^ | 4 Feb 2016 | David Stockman

[amorphous]

There has been an economic coup d'etat in America and most of the world. We are now ruled by about 200 unelected central bankers, monetary apparatchiks and their minions and megaphones on Wall Street and other financial centers.

Unlike Senator Joseph McCarthy, I actually do have a list of their names. They need to be exposed, denounced, ridiculed, rebuked and removed.

The first 30 includes Janet Yellen, William Dudley, the other governors of the Fed and its senior staff. The next 10 includes Jan Hatzius, chief economist of Goldman Sachs, and his counterparts at the other major Wall Street banking houses.

Then there is the dreadful Draghi and the 25-member governing council of the ECB and still more senior staff. Ditto for the BOJ, BOE, Bank of Canada, Reserve Bank of Australia and even the People's Printing Press of China. Also, throw in Christine Lagarde and the principals of the IMF and some scribblers at think tanks like Brookings. The names are all on Google!

Have you ever heard of Lael Brainard? She's one of them at the Fed and very typical. That is, she's never held an honest capitalist job in her life; she's been a policy apparatchik at the Treasury, Brookings and the Fed ever since moving out of her college dorm room.

Now she's doing her bit to prosecute the war on savers. She wants to keep them lashed to the zero bound--that is, in penury and humiliation--because of the madness happening to the Red Ponzi in China. Its potential repercussions, apparently, don't sit so well with her:

[amorphous]

A very piece by Stockman.

"The implication, of course, is that stalling world growth requires more central bank stimulus, and even a scramble toward NIRP by central banks which have not yet joined the Looney Tunes brigade of the ECB, Sweden, Denmark, Switzerland and Japan.

Not even close. The amount of debt pouring into the negative yield basket is owing to speculators buying bonds on NIRP enabled repo. Their cost of carry is nothing, and the prices of NIRP bonds keep on rising.

So yields are plunging into the financial netherworld because speculators are front-running the financial death wish of the central banks.

Until they stop. Then look out below. The mother of all bubbles--that of the $100 billion global bond market--will blow sky high.

At length, savers will get their relief and our 200 financial rulers will be lucky to merely end up in the stockades at a monetary version of the Hague.

Meanwhile, the War On Savers continues to transfer hundreds of billions from savers to the casino in the US alone--even as the global economy careens towards a deflationary collapse.

[PGR88]

there can be no political reform, and conservatives will continue to lose the culture wars as long as the Federal Reserve continues to exist in its present form.

Money is the life blood of society, and measures everyone’s interactions with society. As long as ours is centrally controlled and manipulated by central planners and massive debt feeds our massive, progressive nanny state - conservatives will watch the country move further away from them.

[amorphous]

True.

[Skepolitic]

I know that a billion is a big number, but it’s small relative to the global bond market.

The global bond market is round off to a $100 TRILLION, not billion.

[amorphous]

Good catch, and an obvious typo on the author’s part?

[Skepolitic]

Highly likely.

[eyeamok]

And the STATES could fix the problem by simply following the US Constitution::

No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility. - See more at: http://constitution.findlaw.com/article1.html#sthash.n9Db6u0d.dpuf

make any Thing but gold and silver Coin a Tender in Payment of Debts

Completely ignored since the beginning of the Welfare State in 1964