Monday, December 12, 2011


BIS Calls for Hyperinflationary Depression?

Monday, December 12, 2011 – by Staff Report

The Bank for International Settlements Sunday issued an oblique endorsement of coordinated action by the world's largest central banks to ease funding conditions for banks. "A freezing of interbank markets in major funding currencies, as during the recent crisis, may require the ability to supply official liquidity in major currencies in an elastic manner," the BIS wrote in its regular quarterly report." – MarketWatch
Dominant Social Theme: Inflate! And everything will work out.
Free-Market Analysis: We've already indicated that we believe the Anglosphere power elite is attempting to create a kind of Great Depression in order to ease the path of world government. This squib of an article in MarketWatch (excerpted above) – unnoticed by most of the mainstream press – only reconfirms our impression.
It endorses recent "coordinated" central banking loosening. But it does more: "A freezing of interbank markets in major funding currencies, as during the recent crisis, may require the ability to supply official liquidity in major currencies in an elastic manner."
Think about that. The BIS, whatever it is, is all for printing lots of money. And the BIS is no small-time trade group. It is perhaps the most powerful (and least known) global business body in the world. Its mysteries are manifold. its workings are well-hidden.
Of course, somebody actually set up the Bank for International Settlements in the late 1930s. And since then someone has set up or helped set up about 200 central banks around the world, many of them reporting directly to the BIS.
But who? And how did it happen? Dunno.
Who speaks to the head of a state, asking him or her to set up a central bank? Dunno. Do you?
Why is that Libya, Afghanistan and Iraq have central banks when they didn't before, or not the kind they do now? Did you read about it?
Meh ... this ruinous financial system is not a plant or a tree. It did not grow spontaneously. It did not grow naturally. And we would submit to you that those who created it know what they're doing.
The key as always is to pretend that one does NOT know. The key is to create cognitive dissonance. Even today, if you asked the average person-on-the-street if the powers-that-be are trying to create a Depression (let alone a hyperinflationary one), you would get the ol' crazy look, as in ... "What is this fellow ... nuts?"
But, no, nothing nutty about it. The European Union and the euro are grinding a whole European generation into dust. China's burgeoning middle class is about to get walloped if China ends up in a proverbial hard landing, as well it might. The US has NEVER recovered from the disaster of the mid-2000s (first decade) nor shall it for the foreseeable future.
Into this morass steps the BIS, with its suggestion (above) that further monetary inflation is the only viable solution to the problem that central banking itself has created.
Smile ... and nod! Don't acknowledge the reality that the ruin is a central banking ruin. The monetary decay is the result of a monopoly fiat. The great dollar expansion yet to come is also a direct outcome of the current system that was put in place after World War II.
No, it's not hard to discern what's going on if one simply disassociates oneself from the endless nattering of the mainstream media. Analyze what IS instead of what is SUGGESTED and the reality shall gradually become clear.
DB's manifestly accurate High Alert (published some four years ago now) was written because we were tracking what was actually happening to the world's economy instead of what was being reported ....
A financial hurricane is washing over America and, to a lesser extent, the entire West. To label it the "downstroke" of a super business cycle does not do it justice. These events occur in cycles, with the last one taking place in the 1970s — a mild storm compared to what is occurring today. ...
A strong inflation, even a soft hyperinflation, already has a grip on Western currencies, most notably in the United States — as anyone who buys groceries is aware. The dollar's plunge may be delayed by a kind of "race to the bottom" as other central banks adjust their currencies to reflect the weakness of the dollar. ...
In his "Great American Depression," free-market economist Murray Rothbard explains the ramifications of hyperinflation as follows: "Hyperinflation, on any count, is far worse than any depression: It destroys the currency — the lifeblood of the economy; it ruins and shatters the middle class and all fixed income groups; it wreaks havoc unbounded. And furthermore it leads finally to unemployment and lower living standards since there is little point in working when earned income depreciates by the hour."
(You can read the full book online here.)


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