Much is being said today of Fed chairman Ben Bernanke's speech at the Sixth European Central Bank Central Banking Conference in Frankfurt, Germany. Supposedly, he threw down the gauntlet to China, finally took his gloves off, didn't mince words, made it perfectly clear, etc.
I disagree.
A while back, What The Globalists Next Agenda Might Be was on the lookout for some far more sinister than smacking around our largest trading partner. It anticipated an ulterior motive:
Rising protectionism, beggar-thy-neighbor policies, and competitive currency devaluations spell trouble for the globalist dream of a single, unified market.
When times are good, people and countries come together. When times turn bad, people and countries split apart and polarize.
But in a desperate bid to salvage doomed common markets like the EU and the Euro, look for the next globalist agenda to broadcast propaganda decrying sovereign currencies as the problem, currency devaluations as the reaction, and a single, managed currency as the solution.
Do not ever forget that the Fed has private owners who are shareholders in perhaps one of the biggest scams on the earth.
While Ben Bernanke seems to be a genuinely mild mannered, likeable person, he serves others who are consumed by insatiable greed whom he must either satisfy or be sacrificed by. I believe much of his speech today delivered their covert message: we want a single, global, monetary system.
First, he set up the problem:
"In recent months . . . common purpose has waned. Tensions among nations over economic policies have emerged and intensified, potentially threatening our ability to find global solutions to global problems. One source of these tensions has been the bifurcated nature of the global economic recovery: Some economies have fully recouped their losses while others have lagged behind. But at a deeper level, the tensions arise from the lack of an agreed-upon framework to ensure that national policies take appropriate account of interdependencies across countries and the interests of the international system as a whole. Accordingly, the essential challenge for policymakers around the world is to work together to achieve a mutually beneficial outcome--namely, a robust global economic expansion that is balanced, sustainable, and less prone to crises."
Trust us, he's saying on their behalf. The only reason why there are economic troubles is that nations are selfishly looking after themselves. Give us control of the global money supply, and we'll make everything good again.
Then, he added the urgency:
"Low rates of resource utilization in the United States are creating disinflationary pressures." We're deflating because no one is borrowing.
"Insufficiently supportive policies in the advanced economies could undermine the recovery not only in those economies, but for the world as a whole." Economies are addicted to stimulus, and they're not getting enough.
"In particular, with shorter-term nominal interest rates close to zero, declines in actual and expected inflation imply both higher realized and expected real interest rates, creating further drags on growth." We're pushing on a string as fast as we can.
"On its current economic trajectory the United States runs the risk of seeing millions of workers unemployed or underemployed for many years. As a society, we should find that outcome unacceptable. Monetary policy is working in support of both economic recovery and price stability, but there are limits to what can be achieved by the central bank alone."
Trajectory . . . probably the most loaded word in his entire speech. It's graphic. It's pointed downward. And he's openly admitting that the Fed can't, and more importantly, won't alter it. Why not? Because the Fed would go broke trying to.
Now that he had everyone's attention, he moved on to the real motive: a single, global, monetary system.
"The two-speed nature of the global recovery implies that different policy stances are appropriate for different groups of countries." We want a single monetary policy. Ours.
"Because a strong expansion in the emerging market economies will ultimately depend on a recovery in the more advanced economies, this pattern of two-speed growth might very well be resolved in favor of slow growth for everyone if the recovery in the advanced economies falls short." You'll all suffer unless there is a single, global, monetary system.
"The current international monetary system is not working as well as it should." We have a better way.
"Unfortunately, so long as exchange rate adjustment is incomplete and global growth prospects are markedly uneven, the problem of excessively strong capital inflows to emerging markets may persist." A single, global, monetary system would spread growth everywhere and give us complete control.
"As currently constituted, the international monetary system has a structural flaw: It lacks a mechanism, market based or otherwise, to induce needed adjustments by surplus countries, which can result in persistent imbalances. This problem is not new." We need a global, central bank and one global currency.
"For large, systemically important countries with persistent current account surpluses, the pursuit of export-led growth cannot ultimately succeed if the implications of that strategy for global growth and stability are not taken into account." We're gonna fail, but you're gonna fail even worse.
"It would be desirable for the global community, over time, to devise an international monetary system that more consistently aligns the interests of individual countries with the interests of the global economy as a whole." A single, global, monetary system.
"In particular, such a system would provide more effective checks on the tendency for countries to run large and persistent external imbalances, whether surpluses or deficits." Trust us, it won't be like the EU and the Euro. We'll be able to control everything.
"Changes to accomplish these goals will take considerable time, effort, and coordination to implement. In the meantime, without such a system in place, the countries of the world must recognize their collective responsibility for bringing about the rebalancing required to preserve global economic stability and prosperity." Forget personal responsibility. We know what's best for you. Economic stability requires collective responsibility.
All you'll hear in the press is that Bernanke slammed China. But that misses the point. We're playing a mutually agreed-upon game with China. The deal was that they'd buy our treasuries so that we could continue to consume. But now that greed has taken the game to its breaking point, the dynamic is breaking down. Consumers aren't consuming. Borrowers aren't borrowing. The credit and debt model for growth has reached its inevitable limit. The party's over.
If you think it's bad right now, just imagine what it would be like if the clowns behind the curtain at the Fed, the IMF, the World Bank, and anyone else with a third world dictator mentally got their hands on the the global money supply.
Bernanke's speech was about statism. Globalism. One Worldism. It was a speech about collectivism over sovereignty, about continuing down the failed road of fractional reserve banking and using the magic of "free money" to turn it into a gleaming superhighway. Thanks to the following cautionary words, I'm always on the lookout for it.
"The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. Deficit spending is simply a scheme for the confiscation of wealth."
This was written in 1967. By a man who knew a thing or two about how the game was played. A man who was then seduced to work for the very people he warned against.
Alan Greenspan.
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