David Stockman on the Monetary Madness Among the Central Bankers

David Stockman leaves no doubt as to what causes inflation. From Stockman at internationalman.com:

Monetary Madness

Here is the combined balance sheet for the four most important central banks in the world: the Fed, the European Central Bank (ECB), the Bank of Japan (BOJ) and the People’s Bank of China (PBOC).

On the eve of the great financial crisis in 2007, their combined balance sheets stood at just $5 trillion. Today the figure is $31.5 trillion.

Need we say more?

The red line in the chart below shows the recent parabolic rise of the inflation rate in the eurozone. By contrast, the blue dotted line represents the ECB’s wisdom from just three months ago about where inflation was headed, while the solid blue line reflects its current wishful thinking. To wit, that inflation will be back in the sacred 2.00% box by next year.

We’d say, “Good luck with that!”

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4 responses to “David Stockman on the Monetary Madness Among the Central Bankers

  1. Mr. Stockman is being naive if he believes that the members of the Fed and the other biggest central banks around the world – the “banker’s banks” – are not fully-aware of what is going on. They know that the looting phrase of economic dislocation is well-underway, and that they need to keep a smiling, happy face on things, lest the peasants notice.

    These bankers may be plutocrats, but they can read a balance sheet as well as anyone. They know that when the music stops, a lot of folks are going to be left without a chair. They are determined not to be in that group. That’s why the ruling class is printing so much money; they’re “making hay while the sun shines”… for when the money-go-round finally stops spinning, things are going to be very different than they are now.

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  2. Centurion_Cornelius

    Could not have said it any better, Georgiaboy61!

    Like

  3. Once we return to the neutral zone, everything will be OK.

    Here, take another one of these.

    Like

  4. We are fucked beyond fucked. Buy guns, ammo and food preps.

    Like

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