Copying Japan: The Big Banks Confess – Jeff Nielson, Sprott Money
Back at the end of 2008, Western central banks (led by the Federal Reserve) embarked upon the most radical, extreme, and simply insane monetary policies ever contemplated in our modern economic era as a supposed response to the Crash of ‘08. Zero-percent interest rates. “Quantitative easing.” Hyper-inflationary levels of money printing.
Many readers may not fully comprehend the level of insanity (and fraud) inherent in such extreme monetary policies, so further explanation will be provided. First of all, there is no such thing as “a 0% loan” (and thus a 0% interest rate). But don’t accept the word of this writer.
Just try engaging in some “0% loans” in your own financial affairs, and then see what happens when you report such transactions to the Tax Man. You will quickly be informed that your supposed “0% loans” are legally deemed to be sham transactions. The Tax Man would then immediately add that these supposed loans would legally be deemed to be what they actually are: gifts – and you would be taxed (and perhaps prosecuted) accordingly.
So-called “0% interest rates” and any “loans” made at that non-existent rate of interest are prima facie fraud . Thus we start from the standpoint that at the end of 2008, the Federal Reserve knowingly and willingly embarked upon a massive campaign of (fraudulent) sham transactions, which continued until near the end of 2015 and totalled in the many trillions of dollars.
The Federal Reserve, instead of lending out these trillions of its new funny-money (at a real/legitimate rate of interest), has simply been handing it all to Wall Street, for free, via a long series of sham transactions. That’s a lot of fraud.
“Quantitative easing” is even more overt fraud. It is literally a euphemism of a euphemism. What is quantitative easing (apart from being an absolutely meaningless phrase)? It is “monetizing debt.” What is monetizing debt? It is another euphemism, which is thus also absolutely meaningless. But what does it really mean?
“Monetizing debt” is when a government is so close to bankruptcy that it can no longer even borrow enough money to (temporarily) pay its bills. Thus the regime simply conjures more “money” – completely out of thin air — and then uses this worthless funny-money to pretend to “pay its bills.”
Officially, we were told by our governments that this so-called quantitative easing was to “stimulate our economies.” Yes, it is undoubtedly more “stimulative” for an economy to continue to pretend to pay its bills than to declare bankruptcy. The entire Corporate media parroted this absurdity, proving yet again that this ( illegal) oligopoly is anything but “a free press.”
Then we have the actual rate of money printing itself. At the risk of boring regular readers, this must once again be reviewed for the benefit of newer readers. Below is the last legitimate representation of the U.S. monetary base (and the rate of money printing that has been occurring).
Subsequent to this, the chart, and now even the data itself, have been falsified, rendering newer versions of this chart deceptive at best. What this chart shows is the hyperinflation of a currency (the U.S. dollar), past tense.
This is a picture of a classic, parabolic exponential curve. In simpler terms, it is the mathematical representation of the phrase “out of control.” Directly implied by that phrase, and a basic principal of any such extreme, exponential function, is that “control” can never be regained. What is the result when any nation has lost control (past tense) of its money printing – in the form of an upward spiral? Hyperinflation.
The U.S. dollar is fundamentally worthless. Indeed, it is fundamentally worthless based upon several, separate metrics . Other Western currencies, which are now mere derivatives of the USD, are equally worthless. The day that “quantitative easing” began was the day that Western governments began feigning solvency via overt fraud.
However, we got more than just (extreme) actions by our central banks and the puppet governments beneath them . We also got promises – big promises. Originally, the central bankers acknowledged the fact that their “policies” were the most extreme monetary voodoo ever perpetrated by any central bank.
In acknowledgment of that fact, we were given firm and solemn promises from all the central banks (and all their crooked foot-soldiers) that an “Exit Strategy” would commence immediately, in early 2009. Interest rates would quickly be “normalized.” The money printing would quickly be curtailed, before the hyperinflationary spiral in the previous chart could ever materialize.
But we got more than that. Even more emphatically, the central bankers and puppet politicians all puffed out their chests and proclaimed that they would never, ever “copy Japan.”
All that they were waiting for were “signs of economic stability”, so that (supposedly) it would then be safe to disconnect this economic defibrillator from the hearts of all Western economies. Did we see such signs? Supposedly.
In early 2009, the U.S. government, the Federal Reserve, all the charlatan economists , and the Corporate media proudly crowed in unison that the United States had begun its Recovery. Since then, this same flock has continued to chirp regularly about the “strengthening Recovery.” Yes, the U.S. economy has kept recovering, and recovering, and recovering some more .
Did we get the Exit Strategy? No.
The United States kept its interest rate at a (fraudulent) “0%”. Understand the significance here. As B.S. Bernanke was perpetrating his infamous “helicopter drop” of funny-money, to a hyperinflationary degree, every last penny of this unimaginable mountain of funny-money was being handed to the Wall Street crime syndicate for free.
If we took every lottery in human history, added them all together, and then multiplied that by 100, it would still be far less than the “lottery prize” which B.S. Bernanke handed to Wall Street, tax-free. But it gets worse. In our era of ultra-fraudulent “fractional-reserve banking,” each member of the Big Bank crime syndicate is allowed to “leverage” all of its free $trillions in funny-money by a ratio (i.e. multiple) of greater than 30:1.
This represents an orgy of monetary fraud of virtually infinite size , and we were promised (in 2008, and repeatedly after that) that it would never, and could never, happen, because we would never “copy Japan.” Indeed, the Western central bank cabal did not (merely) “copy Japan”, but went literally orders of magnitude beyond Japan in its monetary debauchery and fraud.
Leap forward to March of 2016 and the amusing quasi-confession from one of the members of this Big Bank crime syndicate: HSBC. Of course, readers still need to pull out their translation gear, since even this quasi-confession is twisted almost beyond recognition by the propagandists of CNBC, starting with the headline.
World copying Japan’s slow-puncture economy: HSBC
Machiavellian. What is another way of characterizing an economy, other than as a tire that will soon run out of air? In a death-spiral . Copying Japan’s economic/monetary death-spiral. The “world” is copying Japan’s death-spiral. Wrong.
Does the “world” all have their interest rates at near-zero, or lower? No, just the Corrupt West. Is the “world” all engaged in quantitative