Busted: Bankers and The Global Economy

May 7, 2008

Central Bankers Sound Alarm Over Food Prices

Soaring food prices are helping to push up inflation all around the world, say central bankers. They urge more market competition and free trade to even out prices.

Which came first: the chicken or the egg? In this case, central bankers are not admitting that high food prices are not only caused by tighter supplies but higher inflation is caused by the central bankers themselves. Central bankers, by nature are quiet animals that never point at themselves. In this instance, global inflation has been boosted by the excessive printing of money and overextension of bank credit coupled with the inflation and devaluation of the dollar, which still operates as the tour de force of the global economy.

Global rises in food, energy and other commodity prices (more…)

February 4, 2008

Aussies Waiting for Shoe to Drop

Filed under: banking, central bank, money — Tags: , , , , , , — digitaleconomy @ 12:00 am

Many Australians are feeling the financial pinch as symptoms of economic tension rise waiting for the market in the United States. The Central Bank (Federal Reserve of Australia) has been raising interest rates and people are getting tense as families struggle to keep their heads above the water.

It should wait and see on interest rates until the effect of the turmoil in the United States caused by the sub-prime housing market is clearer.

Apparently, the Aussie Fed is doing the polar opposite of the U.S. Federal Reserve as they struggle to keep their own profits coming in while creating additional risk of inflation. Australians have been living with increased tensions from rising interest rates in their economy. If they started defaulting on mortgages, I am certain the bankers wouldn’t continue raising interest rates. Isn’t it interesting how the Fed (central banks) in different countries work together to make extra money? One way or the other, bankers find a way to bring in the bacon. ~E.M.

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