Collusion: How Central Banks Rigged the World For the Next Financial Crisis

Collusion: How Central Banks Rigged the World For the Next Financial Crisis by Jesse – Jesse’s Crossroads Cafe

“A crash could prove to be President Trump’s worst legacy. Not only is he — and the Fed he’s helping to create — not paying attention to the alarm bells (ignored by the last iteration of the Fed as well), but he’s ensured that none of his appointees will either.

After campaigning hard against the ills of global finance in the 2016 election campaign and promising a modern era Glass-Steagall Act to separate bank deposits from the more speculative activities on Wall Street, Trump’s policy reversals and appointees leave our economy more exposed than ever.

When politicians and regulators are asleep at the wheel, it’s the rest of us who will suffer sooner or later. Because of the collusion that’s gone on and continues to go on among the world’s main central banks, that problem is now an international one.”

Nomi Prins

One can assume many motivations for the munificent treatment that the Big Banks have received in the US.

The fig leaf is that this was done for ‘the sake of the system’ wrapped in dollops of fear and uncertainty mixed well with jargon and complexity.   This is the art of the fraud.

We do have the historical example, from a much worse banking crisis in the US during the 1930s, that a thorough reform of the banking system is possible, and significantly less expensive than bailing them and their elite holders out, legally and financially.

The major difference in the handling of each crisis is how the resolution prioritizes the distribution of  financial and legal consequences.

In the 1930s the public and the depositors of the banks were given the highest priority for resolution and future protection.

In the most recent banking crisis it was clearly the banks and their creditors and management who were given the greatest amount of consideration by far.  Indeed, what set this up was a decades long campaign to overturn the last of the safeguards that had been passed in that 1930s crisis, a notably bi-partisan effort greased by hundreds of millions of dollars.

One might take into account the prevailing cultural climate, at the forefront of which is the current political campaign financing system that provides enormous amounts of money for the politicians from the financial class and moneyed interests.

There is also the phenomenon of the emergence of a discrete and significantly more influential and wealthy professional elite as a coherent class, many of whom know each other,  have gone to the same schools, and move back and forth between diverse economic sectors and public office.  And they have significant personal financial entanglements.

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Jesse

NEED LITTLE - WANT LESS - LOVE MORE THE BANKS MUST BE RESTRAINED, AND THE FINANCIAL SYSTEM REFORMED, WITH BALANCE RESTORED TO THE ECONOMY, BEFORE THERE CAN BE ANY SUSTAINABLE RECOVERY. WELCOME TO JESSE'S CAFÉ AMÉRICAIN - THESE ARE PERSONAL OBSERVATIONS ABOUT THE ECONOMY AND THE MARKETS. IN PROVIDING INFORMATION, I HOPE THIS ALLOWS YOU TO MAKE YOUR OWN DECISIONS IN AN INFORMED MANNER, EVEN IF IT IS FROM LEARNING BY MY MISTAKES, WHICH ARE MANY. AS A STANDING POLICY I NEVER PROVIDE INDIVIDUAL INVESTMENT ADVICE TO ANYONE. I WILL ONLY OCCASIONALLY DISCLOSE MY PERSONAL POSITIONS FOR PURPOSES OF ILLUSTRATION. UNDERSTAND THAT MY OWN CIRCUMSTANCES COULD DIFFER GREATLY FROM YOUR OWN, AND THEREFORE WHAT IS SUITABLE FOR ME MAY NOT BE SUITABLE FOR YOU. MY COMMENTS ARE INTENDED TO BE REFLECTION ON GENERAL MACRO FINANCIAL AND ECONOMIC EVENTS AND TRENDS.