Direct from the desk of Dane Williams.
Thoughts on the charlatans we know as central bankers and why we’re happy to accept them at their word.
By now you’ve no doubt seen the headline inflation print in the United States surge to 9.1%.
The highest reading we’ve seen since way back in 1981.
Holy shitballs, talk about unprecedented.
There’s just no getting around the fact that this extremely ugly print was anything other than a disaster for a central bank that is already playing catch up.
The Fed really now has no choice but to chart a more aggressive path through the current financial shitstorm they find themselves at the forefront of.
The likelihood of a potentially catastrophic recession is now more than just a possibility.
It’s all but a lock.
Sorry little Johnny, we’ve gotta tell you to stop looking forward to getting that new remote control truck under the Christmas tree this year.
Just what is it with central banks?
Nobody is getting any more free money from the government anymore and not even the big man from the North Pole wants to work for the paltry, stagnant wages on offer.
Things are going to get a lot tougher before they get better.
So just what is it with central banks?
I mean they seem to weave a course from one extreme to the other, pulling changing cliche bullshit out of their arse day to day.
I can’t remember where I saw them described as having all the finesse of a dodgem car as the only reliably expected outcome from their policy is that they will crash, but god I love the analogy.
As an internet marketer at the mercy of Google’s top secret algo, I can somewhat relate to the environment that central bankers work within.
The pseudo-science that we call economics is exactly the same.
There is the complete lack of black and white, meaning that central bankers don’t HAVE to be exclusively right when setting policy.
Yep, just like in the realm of digital marketing it’s all about testing and forever chasing the golden goose of perfection that they’ll never reach.
But unlike a digital marketing agency who sits in front of your business and spouts endless pretentious jargon however, we can’t fire a central bank for talking down to you.
How unfortunate.
When it comes to this particular crop of central bankers however, I’m baffled by the fact we are expected to accept the fact they have been surprised by the economic conditions they are directly responsible for creating.
I mean after dropping interest rates to unprecedented lows and subsequently printing money at a rate even a Zimbabwean banker would find impressive, the audacity it takes to say they’re surprised.
It’s the same fate suffered by administrations who cut holes in their coins and flooded their populations with worthless paper.
Round and round and round we go.
Destined to follow in the footsteps of past collapsed regimes throughout history.
Central banker charlatans: Our direct line to god
The bottom line is that we’re destined to face one doozy of a recession/depression as people have borrowed much more than they can afford to repay .
People have and will always seek the reassurance of those representing higher powers.
Have faith because someone else will fix it, right?
Well after dropping the ball and allowing inflation to hit NINE FUCKING PLUS PERCENT, maybe Jerome Powell and his fellow cronies should start dressing in robes and speaking in tongues to rev up the crowd.
It seems to work for the Christians.
With the whole economics schtick starting to wear thin, it’s not like they have anything to lose.
We laugh now, but...
Best of probabilities to you.
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In the first place, I thought that they KNOW what they are doing, but not doing what is right always... I thought that sometimes it's not "popular" to do drastic moves in fiscal policy, as they will lose popularity or paycheck...
But recently, after the money printing, I think that they have no idea what they are doing at all... Nobody will save us, but us ourselves... Protect your wealth and take care of your closest ones! Bankers will find a way to protect them... I don't doubt it!
I have picked this post on behalf of the @OurPick project and it will be highlighted in the next post!
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They certainly don't have any idea what they're doing.
But that's literally the system that we're playing within.
Just super frustrating that they've all massively dropped the ball here and the lack of black and white outcomes in economics means there is no accountability.
Sigh.
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These ones are bent on dying on the hill that they know best. Till these guys and their types are removed, they will always find means to make people believe they know what they’re doing even while the economy says different b
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It's just accepted that they know best, when economics is never going to be a black and white proposition.
There is no right or wrong.
Only opinions that lead to outcomes.
Too bad the opinions from the current crop at the Fed have been a dismal failure.
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The fact that they are acting surprised is annoying. Isn't this the result of their actions and decisions before now? Now, they at acting surprised.... Mtchew 😏
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Haha, this foreigner had to urban dictionary what mitchew means.
Mitchew indeed! ;)
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As someone who was born into hyperinflation, I can tell you that it is as much as an opportunity as it is a disaster. I do understand the urge to punch the bankers in the face because they are leading the whole world into an abyss but there seems to be a lot more to this story.
The way it worked where I was born was very simple. Hyperinflation hit hard and fast but at first it came as a blessing because all of your bank loans in the local currency are now worthless and the bank can't charge you more than they gave you. Only later people realize that acquiring money is a lot harder but new businesses were born and more and more people turned to farming which is kind of a good thing.
This madness can only last for so long and when people can't take it no more the big bankers like the IMF step in and say "Yeah, you have this debt but we can loan you some money to pay it back and we can help you reset the system" and so they did... In a day a bar of chocolate went from 5 million to just 5 units of our local currency and just like that the hyperinflation was gone. If you ask the people how it was fixed no one knows and no one seems to care because the problem is gone...
Watching from a distance it seems to me that someone wants to privatize the US using the same mechanism. As you said, I refuse to believe that these people don't know what is going to happen when they drop the interest rates so it has to be intentional. As a sideline observer, I have come to the conclusion that the power structures have shifted massively in the world making Russia and China the global leaders while the US keeps selling the lie that they are the leading economy in the world.
In simple terms, someone is putting the US population under anesthesia while the storm is over. When they wake up their country will have new owners but they won't know this just like people here had no idea that our country just became one of many that sold their ballsack to the IMF and whoever is behind it.
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Always sobering to hear these sorts of real world experiences.
Thanks for sharing your story! :(
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These central banks...look the only silver lining here is that they don't seem to want to save everyone this time and it's a good thing.
As you said, it's gonna get worse before it gets better but it's gonna be a healthier environment for us long-term.
Is it though?
We seem to hear that every time there's a major macro event.
Why will this one be any different and lead to meaningful change?
PS. I realise I have a super pessimistic tone here, yikes haha.
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Oh no look, you might be correct. These things are difficult to assess.
The thing is, I like to see a purging fire in the forest when things get too crowded. If that makes sense...we'll see what happens.
We all know the central banks are more focused on maintaining their own control and that it is rigged against us. There is only so much they can do before faith starts to dwindle.
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As the saying goes, if your salary depends on not understanding something, you will not understand that thing!
Just in case you were not aware of this before, technocrats the world over have been proving this to us over the last 2 and a half years!
Central bankers are no different. Most are very intelligent and most certainly know what they are doing. They do not work in isolation though.
And the type of inflation we are dealing with at the moment is not only due to excessive money printing. A lot has to do with political interference, think supply chain issues, think regulatory hurdles, that are aggravating the effects of money printing.
The markets are taking note though. Fixed income markets are freezing up in Europe, Japan and the US. And central banks are feeling the heat. In particular as they are running out of options to deal with the fallout!
As always though, it is the general population that will be fucked in the process.
Buckle up. It will be a wild ride!
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