Gab@StFerdinandIII - https://unstabbinated.substack.com/
Plenty of cults exist - every cult has its 'religious dogma', its idols, its 'prophets', its 'science', its 'proof' and its intolerant liturgy of demands. Cults everywhere: Corona, 'The Science' or Scientism, Islam, the State, the cult of Gender Fascism, Marxism, Darwin and Evolution, Globaloneywarming, Changing Climate, Abortion...
Tempus Fugit Memento Mori - Time Flies Remember Death
The cult of central banks. Keynesian theology has thoroughly taken over, and corrupted every single central bank in the world. Collectively, these central banks are now engaging in one of the biggest frauds in world economic history. The Keynesian-Monetarists believe the following cult dogma to be true:
-Zero interest rates have no consequences.
-Inflation as modelled by central banks, is non-existent.
-Printing money and funding government fiscal programs generates 'economic growth'.
-Printing money and buying government bonds stimulates 'economic growth'.
-The Central Bank must micro-manage 'unemployment' rates, GDP [spending] calculations, and the velocity of money.
-Since the end of the gold standard, currencies have been 'fairly valued' as mandated by government [not markets, or price points, or economic flows].
None of this cult cant makes any sense. In the real world, beginning with the end of the gold standard in 1971, we can observe as rational individuals the following:
-The collapse of purchasing power of every currency including the US$ by some 65-85%, since the ending of the gold standard in 1971.
-With the devastation of purchasing power, inflation by inference, is a real phenomenon. Gold for instance in 2000 was $300 per ounce. It is now $1100.
-The supply side of capital, jobs, investment and savings creates wealth, not government spending. Every time a supply side 'reform' is enacted, the economy responds positively. This fact is in direct contradiction to central bank theology and statist politics.
-Since 1971 the debts, spending and size of government in every nation state has exploded to catastrophic levels, matched by taxation, corruption and political rigidification.
-Trade agreements have helped to moderate and lower prices and improve product quality and competition. This fact destroys most Marxist-Socialist theology held by about half the population.
The above points are real world facts. With improved trade and economic reform the Chinese lifted 400 million out of poverty. The issues now facing China are familiar; $20 trillion in new public debt, corruption, state cronyism, government distortions in the political-economy, and regional/tribal tensions [and a huge water shortage]. In other words China has followed the interventionist state model trumpeted by the IMF-Central Bank cabal. It too will run into problems [a real estate bubble, illiquid state firms, weak banks....]
Japan, mired in a 20 year depression-recession, is the poster child for Keynesian-Monetarism. Japan needs enormous supply side changes, regulatory-legal reform, tax reform, the end of state-cronyism and political-economic distortion and corruption. Instead the Japanese Central Bank preaches that unlimited money-printing, zero rates, and 'stimulus' through bond-buying and fiscal socialism will revive its broken economy. These policies will only make things worse.
Instead of applying the right mechanisms [trade, true functioning markets, proper interest rates, currency value stability, tax reform, regulatory reform, political-voting reform, a limitation on the size of government and debt]; and developing the right characteristics of a civilized-wealthy state [higher culture, entrepreneurship, self-reliance, savings, investments]; it is much easier and politically expedient to spend, buy votes and artificially float higher stock markets and housing values. It won't last and when the fraud ends many millions will suffer – but not the elite, and not the central bankers.