Busted: Bankers and The Global Economy

June 21, 2008

Slow Growth to Tame Inflation

Inflation is on the rise around the world, even more so than is being commonly reported by government agencies and central bankers. The finger of blame usually falls on two fronts. “World events cause inflation.” “Politicians cause inflation.” What most world citizens and media pundits alike fail to recognize is that central bankers are a principle cause for inflation.

In Britain, politicians claim a 60% price rise in food commodities, an 80% increase in oil and a 160% surge in the wholesale price of gas. As the while, the political powers claim that inflation is still close to their 2% target. What baulderdash!

The British bankers claim that “The rise in commodity prices cannot, by itself, generate sustained inflation in the United Kingdom unless we allow it to.” This stiff upper lip employs the same method that all central bankers use. They collude and change the figures to meet the need just like the Federal Reserve in the United States.

Percentages are a favorite tool of politicians and economic sorts the world through. Percentages are easy to stack, manipulate and misrepresent. Percentages don’t necessarily prove anything at all except for a public marketing scheme. Costs can skyrocket while the status quo is conveniently maintained by powerful economies the world over.

Meanwhile, the cure for inflation that is repeatedly underreported is pain: something that not one politician or banker want to see, especially for themselves. Slow growth is the cure. Economic slowdown is the cure for just about every economic excess that exists. Often, the degree of backlash is dependent on the degree of previous prosperity. How long the slowdown will last is anyone’s guess. In the meantime, you can rest assured that central bankers will steer us through while maintaining a stiff upper lip. All the while, they find creative ways to send money back home to momma in Rome so that they can meet their banking franchise agreement. Wink, wink and say no more.


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