How the Central Bank provides financial repression.


MONEYMORNING-central banks – looks from this article from money morning article Central Bank of Central Bank if no may be in what happens to be.

5/16/2012 – Play two people imagine a monopoly. Follow the rules of the religious, even other players, the banker does not.

He for appropriating the property regularly. If he does not like the dice score, he simply change them. He likes he continuously takes the money from the Bank. Not fit the rule when he has any change to favor him.

Oh and God he hates losing. He set the fire to the table rather than admit defeat, completely willing.

Imagine no longer. This is the State of the financial markets. For the world’s central banks are playing.
Discuss the disadvantages of the benefits under the financial times paper article (the ‘collateral damage’ sinister label) is now running some time or Central Bank. Only one contributor, Ron Paul, and present a challenge.

“[W] hile socialism and centralized economic planning Lord free – Bank of the myth have been denied by the market economy retains the necessary components of a market economy.

Seeking system most people seem accepted by other contributors are unconditionally ever required as part of the all to defend the Central Bank’s view. Dr. browsing through the comments of the article Paul foot, for example, one of the leaders by:

“Blindly accept Dr Paul diagnostic problem is his lack the required qualifications to make the diagnosis” section. Medical diagnosis of trust made by Mario Draghi, Chairman Bernanke you, or Mervyn King? ?

No, I do. However, I’m not trusted will from the economic diagnosis. Its track record, who would that be why giving?

Central Bank

Get rid of Central Bank ( over time, I were realistically ) will have some effect.

It properly first, against the taxpayer’s blood feeding indefinitely requires insolvent commercial or investment banks to fail.

About the must look simple, JP Morgan in the context of the overall derivatives exposure in the same bank as 2 billion dollars recently announced a loss follows perhaps graphically it as an example relatively as scratching anyone.

jp morgan thumb How Central Banks Are Delivering A Financial Repression

Standing in the JPMorgan total derived exposure $ 70.1, or approximately the same size throughout the world economy. Each image $1000000000000 Tower double – height of 930 m (283) stacked.

Can can monetize second, by eliminating the Central Bank in their book, relationship with the Central Bank debt no longer will need to balance the Government.

An economist of the unelected asset price market not provide profit of bankers and politicians to the third, return to the decision.

They’ve been going to occur at any time most investment managers adopt soon, obviously this content system and continue playing cards dealt.

To give an example, opposition to stock of assets of us bonds last year, pensions for the first time, reports the FT.

So nothing could go wrong like many investors, fund managers, running the Central Bank accepted the meeting fails to understand the risks.

Yet government bonds yields low this could terminate is. The chart below, shows the influence of investors purchased a Gilts United Kingdom suffered the 1970s stagflation English between.

uk gilt thumb How Central Banks Are Delivering A Financial Repression

Investors who bought between conventional Gilts in 1973 had to wait to get the real return of the 12 years of positive investment. Is this financial repression, control by the Central Bank and political elite, exactly, look forward to under the current system.

Tim price
It’s contributing editor money morning

How the Central Bank provides financial repression.

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