The Era Of Central Planning Is Crumbling… And The Elite Are Terrified
The biggest issue in financial political power structure today is the End of Centralization.
Warren Buffett was a prime example of this. Buffett amassed a fortune by being a raging capitalist who prided himself on never losing money on an investment. But by the time 2008 rolled around, he faced the very real prospect of seeing his fortune halved.
- America’s Hemorrhoid Warren Buffett Back In The News: Buffett Bilks America ~ Profits $49.1 Billion While His Private Prisons Grow!
Buffett was not the only one. He’s just the best known.
Let’s be blunt here: the 2008 bailouts and money pumps completely betrayed capitalism. The outcome was precisely what you’d expect from Central Planning: Bailed Out Buffett: Buffett firms got $95 billion of taxpayer’s money
1) Economic stagnation.
2) The creation of low quality jobs that offer little upward mobility.
3) Concentration of wealth.
Today, eight years later, the elites are terrified that the game is ending.
Similarly, those currently at the helm of the Central Banks have begun abdicating their responsibility for what’s coming.
This is most evident in Central bank Presidents like Draghi and Yellen dropping all pretenses of being able to hit their goals/targets and instead passing the blame onto political bodies such as Congress.
- Bank of Japan Head Harihiko Kuroda confessed in January that Japan has a limited GDP potential no matter what policy he employs.
- European Central Bank President Mario Draghi admitted that despite FOUR NIRP cuts and €1 trillion in QE the ECB won’t hit its inflation targets for a decade.
- Federal Reserve Chair Janet Yellen has begun implicitly pushing for Congress to step up in terms of policy because the Fed is effectively out of ammunition.
BREXIT, Trump, Le Pen, Duterte, are all part of a larger global trend away from Centralization towards Nationalism.
Whether you like or despise these people/ issues is irrelevant. Their popularity is the product of the last eight years of Cronyism/ Central Planning.
This terrifies the global elites, particularly those who have been riding the crony capitalist gravy train to $ billions. It also terrifies those who link their power and prestige to the current system (Central Bankers, academic economists, and media shills).
Mark Cuban for one) as well as the usual Keynesian shills (Krugman, etc) are out in full force claiming that if the system doesn’t maintain the status quo, the world will effectively end.
This is just another version of the Great 2008 Lie, that if we didn’t bailout certain people/ prop up certain institutions, the world would end. It was bogus then and it is bogus now. No Problem For Iceland As They Jailed The Bankers & Nullified The DebtThe fact is that capitalism operates just fine with failures. There were many firms ready to step up to fill the void created by letting key players who made business ending decisions fail.
Consider that over half of the current Fortune 500 were founded during recessions or bear markets in stocks.
Obviously recessions, bear markets and firm failures don’t stop economic progress. If any thing they promote it much as a forest fire wipes out dead debris to make room for the stage of growth.
The last eight years prove Central Planning doesn’t work. Global Central Banks have spent over $14 trillion, and maintained ZIRP/NIRP for eight years, punishing savers and those relying on interest income…
And what has the world got to show for it? The weakest recovery (if you can call it that) in decades, wealth inequality at extremes, and a record number of individuals relaying on welfare/ entitlements.
Never before in history has so much money been spent, accomplishing so little. And it’s set the stage for another massive financial crisis.