The Bank of England has named Mark Carney as its next governor. This is an unusual move as Carney is a Canadian and currently the governor of the Central Bank of Canada. It is unprecedented in the more than 300 years of the Bank of England for its head to
As the post-Second World War economic machines are about to grind to a halt, the monetarists have stepped forward to claim the limelight. They control the printing presses and they won’t hesitate to flood the world with digital money in the name of economic stimulus. Carney will be joining this elite club of monetarists, who are the last hope of the sagging developed nations. Strangely or not, most of the members of the elite club of monetarists are ex-Goldman Sachs executives.
Carney used to serve as a managing director of Goldman Sachs. So did Mario Draghi, the head of the European Central Bank, and Mario Monti, the Italian prime minister. Many ex-Goldman Sachs executives are now in charge of key positions in Europe. Across the Atlantic, Goldman Sachs has also been ruling over the US financial system, with such people as Robert Rubin and Henry Paulson, both former secretaries of the US Treasury Department. Goldman Sachs is believed to be a major shareholder of the US Federal Reserve – a private corporation that disguises itself as a central bank.
It would not be too far off the mark to assert that Goldman Sachs is influential in shaping the ultra-loose monetary policy action at many of the developed nations’ central banks. The Fed looks like it will mount quantitative easing (QE) packages into infinity until the US economy or the labour market recovers. The European Central Bank has pledged a bond-buying programme – another disguised money-printing scheme. The Bank of England has undertaken money printing to the magnitude of 375 billion pounds sterling to try to perk up the economy. The Bank of Japan, obviously part of the elite club under London and Washington’s directive, has repeatedly flouted monetary discipline by pushing the button on the printing press. Japan is about to go through another leadership change, with the promise of even more aggressive money printing to combat deflation. Japanese politicians now want to raise inflation from 1 per cent to 2-3 per cent.
If money printing could save us from economic malaise, the world would not have suffered from hyperinflation throughout history. The central bankers understand this perfectly, but they insist on printing money because they have the power to do so.
The appointment of Carney as governor of the Bank of England might help coordinate monetary policy implementation with the UK’s European partners as they share the same Goldman Sachs blood. The Fed will also come up with last-minute assistance if need be.
Europe, which is roiling in financial crisis, is about to integrate deeper into complete banking union, fiscal union and political union, and you can see clearly that the Goldman Sachs alumni are calling the shots. Greece is a test case for those who resist integration with Europe. As the US has opened up free trade talks with the EU, we’ll see a merger of the “North American union” with the fully integrated European Union. When this enterprise is completed, it will be ready to take on China and the emerging yuan bloc in the Far East.