Tag Archives: central bank policies

The problem with Brandon Smith’s hypothesis is that no amount of central bank liquidity will be enough to prevent or even forestall the deflationary depression that’s coming. It’s a question of magnitude. Say the world’s central banks expanded their balance sheets by $100 trillion, which is roughly five times what they expanded their balance sheets during the last financial crisis. There is at least $1 quadrillion—or at least 10 times that $100 trillion—in debt, unfunded liabilities, contingent liabilities, securitized commodities and derivatives out there that will unravel and implode. Central bankers will be like someone trying to refill Lake Mead with a garden if Hoover Dam were to collapse. Smith and legions of other economic commentators overestimate the importance of central banks to an economy. Smith may be right, central bankers may want to bring down the global economy, but even if they desired the exact opposite they couldn’t do so with the amount of debt and other financial promises out there. Central bankers are important because they promote debt through monetization and interest rate suppression, but debt, not central bankers, has become the true linchpin of modern economies. They have never been mere puppets dancing on central bank strings. Nevertheless, Smith always makes important points about the liberty movement and that’s particularly true with this article. From Smith at alt-market.com:

The globalists and banking elites have been running the “order out of chaos” scam for a long time, centuries in fact. One thing that practice does is make people of otherwise average intelligence appear brilliant. One thing that organized conspiracy does is make a group of highly vulnerable criminals appear omnipotent and untouchable. Ultimately, it’s all about time. The globalists have had lots of time to tune and refine their methods for manipulating the collective psyche of the masses.

They make mistakes often, but as long as no one confronts them directly and removes these people from the equation, they simply set up shop elsewhere under a different name using different masks and continue their insidious work. As long society is still stricken with ignorance and assumes that such conspiracies are “impossible”, the elites have a free hand to victimize the population further. As long as academic idiots misinterpret Occam’s Razor and insist that the evidence of conspiracy does not matter because it does not fit with their narrow notion of “the simplest explanation”, they prop up the banking cartel and allow it to thrive.

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