Central banks create money to create inflation to devalue huge and continually growing piles of debt. Click the link for some helpful charts of the debt monster, which will inevitably swallow up the global economy, sooner or later. From zerohedge.com:
If anyone has stopped to ask just why global central banks are in such a rush to create inflation (but only controlled inflation, not runaway hyperinflation… of course when they fail with the “controlled” part the money paradrop is only a matter of time) over the past 5 years, and have printed over $12 trillion in credit-money since Lehman, the bulk of which has ended up in the stock market, and which for the first time ever are about to monetize all global sovereign debt issuance in 2015, the answer is simple, and can be seen on the chart below.
It also shows the biggest problem facing the world today, namely that at least 9 countries have debt/GDP above 300%, and that a whopping 39% countries have debt-to-GDP of over 100%!
To see the charts and continue reading: The World’s Biggest Problem
After looking at the article and charts, and on the same path, I hope you have time to analyze Robert Rubin’s WSJ opinion page article (pA13) today entitled, “The Search for a Monetary-Policy Wizard and Political Moral Hazard”. Alas, Rubin never calls the braintrusters behind the Zerohedge findings immoral and/or wizards.
Thanks for pointing out the article. If paid up member of the economic establishment Robert Rubin is publicly pointing out the dangers of endless debt and monetary creation, the game must be in at least the eighth inning. Rubin has always been clinical about such matters. I don’t think he’s ever allowed a moral consideration (even when he uses a term like moral hazard, he’s referring only to a set of market incentives, not any sort of moral failing by anyone) to enter into his analyses of problems that he’s encountered in public. He was, after all, Bill Clinton’s Secretary of the Treasury. However, the concepts of government controlled fiat money and central banking are profoundly immoral, and we have paid and will continue to pay a steep price for erecting our economy on counterfeit money and debt.