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2/16/16

Voodoo Economics: Central Banks as Relentless Boosters of the Rich - by Daniel Stelter

Crafty as they are, at no instance did central bankers miss an opportunity to justify their actions by the need to defend against deflation, i.e., falling prices.

They profess to fear a self-enforcing doom cycle, like the one that the world experienced during the Great Depression.

Alas, that depression was caused – like our crisis today – by too much debt. A modest amount of deflation in itself is not bad. Over decades, the United States and other European countries experienced falling prices and high employment – paired with impressive growth.

It is fascinating to see that even more than 30 years of mismanagement by central banks, with significant damage to the real economy, has not yet dispelled the “hope” of politicians, business leaders, financial markets and the broader population of our countries that recovery rests on the shoulders of the central banks.

In the next emergency, we will once again see pictures of Yellen, Draghi and Co. assuring us that they will “rescue” the world one more time with their interventions. In reality, they are poisoning us even more!

Read more: Central Banks as Relentless Boosters of the Rich - The Globalist

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