Asset appropriation, ‘independent’ central banks, Central Bank Deception, Deliberate economic sabotage, European debt crisis, Money Creation, recessions and growth, Richard Werner, Unaccountable Money Power, window guidance
I just finished reading a post over at Offguardian titled, “Globalization: The Endgame, ” by Frank. In my opinion, Frank comes very close to grasping the dynamics of the manner in which our current “economic crisis” is being mismanaged by governments everywhere, but he falls a bit short of the mark. Therefore, as a short contextualizing preamble to this re-post of something I posted several years back, I leave you with the comment I left for Frank over at OffG:
“Although the evidence for liquidity injections into the economy designed to bring about increased rates of growth and a fall [in] unemployment were, to say the least, tenuous, this hasn’t stopped the monetary authorities from pursuing this strategy.” — Frank.
Actually, QE as practiced by the Federal Reserve, is a perversion of both the actual theory and the practice, one which was successfully put into effect in Japan in the years following WWII to rebuild the Japanese economy at virtually no cost to the ruling establishments of both the U.S. (the victors over imperial Japan and now the real owners of that country’s economy) and Japan (the Japanese ruling class now under tight American control), and which Professor Richard Werner brilliantly describes in the documentary, Princes of the Yen.
Under a ‘real’ QE program, the money printed by the central monetary authority disburses legal tender in such a way that the funds MUST be used to hire manpower to develop industrial infrastructure to produce goods and services prescribed by the authority disbursing the legal tender. All of the funds printed and put into circulation therefore work to stimulate employment as well as to develop the productive capacity of the overall economic system. This approach was wildly successful in Japan in the period between the end of WWII and about the middle of the 1970s, when the American Oligarchy decided that the industrial capacity of Japan that had thus been developed was now ripe for plunder. At this moment, the Japanese monetary authority was ordered by its American master to cease and desist with “window guidance,” that is, to stop controlling how its funds were to be invested or used, and to merely leave it to the speculators to decide what to do with the money they were being permitted to borrow. Needless to say, the funds which had been going into “real world investements” suddenly began to accumulate in both the bond and stock markets, and the real economy thereby starved of a steady influx of necessary fiscal stimulus, since for-profit production cannot but by itself implode into a vicious spiral of economic contraction, began to falter, and businesses suddenly found themselves going bankrupt, and in doing so, became repositories of capital infrastructure that the U.S./Japanese oligarchies could appropriate for pennies on the dollar, so to speak. And to this day, the monetary policy of Japan, really directed from the U.S. abroad, continues in this vein.
Under the ‘ersatz’ QE program that the American[s] launched after the 2008-2009 meltdown and which is being replicated [world-wide], and which is touted, as you put it, Frank, as being designed to bring about increased rates of growth and a fall [in] unemployment, is anything but designed in that fashion, [t]he first thing to note is that there is no “window guidance” as there had been in Japan. Rather than decree that all low interest loans of newly printed funds MUST be used to hire labour and to develop the productive capacity of the real economy, the funds are used to “monetize” government debt, thereby reducing the tax bill for the richest of [the] rich, while at the same time providing funds to the giant investment banks for the purpose of, through big money speculators, propping up bond and stock markets, which benefits only, once again, the richest of the rich.
So it isn’t that QE is a harebrained theory that cannot work in practice, but that what we are told is a QE program is in fact a plundering operation resulting in a historically unprecedented concentration of wealth.
I highly recommend this documentary to anyone who wants to have more than just a vague inkling of what is really going on:
Published on 4 Nov 2014
“Princes of the Yen” reveals how Japanese society was transformed to suit the agenda and desire of powerful interest groups, and how citizens were kept entirely in the dark about this.
Based on a book by Professor Richard Werner, a visiting researcher at the Bank of Japan during the 90s crash, during which the stock market dropped by 80% and house prices by up to 84%. The film uncovers the real cause of this extraordinary period in recent Japanese history.
Making extensive use of archival footage and TV appearances of Richard Werner from the time, the viewer is guided to a new understanding of what makes the world tick. And discovers that what happened in Japan almost 25 years ago is again repeating itself in Europe. To understand how, why and by whom, watch this film.
“Princes of the Yen” is an unprecedented challenge to today’s dominant ideological belief system, and the control levers that underpin it. Piece by piece, reality is deconstructed to reveal the world as it is, not as those in power would like us to believe that it is.
“Because only power that is hidden is power that endures.”
“Mastery of filmmaking. An engaging and dynamic narrative supported by visual aesthetics” – Simeon Roberts – Film Critic, http://filmgods.co.uk/
“Essential viewing if you’ve any interest at all in economics or politics” – Steve Morrissey
Film Reviwer & Critic, http://www.moviesteve.com/review-prin…
“Blows open the widely held consensus that ‘independent’ central banks are a force for economic good.” Josh Ryan-Collins – New Economics Foundation and co-author of “Where Does Money Come From?”
“A fascinating look at the need for better public understanding of just how much money can affect the world we live in.” Ben Dyson – Founder Positive Money & co-author of ‘Modernising Money’
How central banks create money: http://princesoftheyen.com/central-ba…
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