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Wednesday, January 21, 2015
It’s All Coming To A Disastrous End And The World Faces A Very Dark Future
Today a 40-year market veteran sent King World News an incredibly important piece that warns all the central bank tricks are coming to a disastrous end. This piece exclusively for KWN also cautions readers around the globe that the world faces a very dark future indeed.
January 21 (King World News) – Herbert Stein became one of the most renowned macroeconomists during his lifetime. Stein received his doctorate from the University of Chicago in 1958. Known as a “pragmatic conservative”, Stein served as Chairman of The Council Of Economic Advisers which advised both Presidents Ford and Nixon. He is the father of Ben Stein, a well-known actor and author. He is also remembered for promulgating “Herbert Stein’s Law” which simply stated that “if something cannot go on forever, it will stop”….
It's Coming To A Disastrous End
Common sense, history and mathematics have foretold that the central bank policies of unlimited credit and fiat currency creation would come to a disastrous end. It certainly has gone way longer than most of us imagined. The central banks did the unimaginable.
Tens of trillions of all types of currencies and credit instruments were created out of thin air to rescue the banking system and to support the stock market. Interest rates were also collapsed under the misguided idea that it would lead to lasting economic growth and jobs. Listening to the bankers commiserating about their poor earnings reports this week was really pathetic. What banker of old would have not have dreamt of a zero cost of funds environment? The answer is that the current generation are not bankers. Their business was to create financial products and trade for their own benefit in the financial and commodity markets. Carpetbaggers.
A Very Dark Future
All that was really achieved was to forestall the onset of a new Depression and the grotesque concentration of wealth in the hands of a tiny group of individuals and crony corporations. The average inhabitant of this planet faces a very dark future as the safety nets upon which many rely have been dismantled across the board.
History has also shown that a few nationalities are quite astute when it comes to money. Among those would be the Dutch and the Swiss. Eyebrows were raised when the Dutch opted to get their gold back. Now the Swiss have severed their destructive peg to the Euro. If two of the smartest financiers in the room have taken steps that certainly hint that something might be in the offing, it strongly suggests to us that the Keynesian mob might be witnessing defections.
Elephant In The Room
The elephant in the room would be the Germans. A case might have been made for pouring money into Southern Europe to enable those countries to purchase German goods in return. Given that much of the money was squandered and all of those countries are now insolvent, the “vendor financing” argument cannot be made. If the Germans decide that they have had enough, the Euro is finished. The totality of recent events could very well be indicating that the moment is at hand.
The mainstream media talked almost exclusively about the negative impacts from the Swiss announcement. Mathematics forced the issue
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