Central Banks: A Race to The Bottom, MASS Currency Devaluation.

From Greg M

Central Banks: A Race to The Bottom, MASS Currency Devaluation.

By Gregory Mannarino TradersChoice.net

(Lions and friends. Please feel free to share this article far and wide). I would encourage you to do that. GM

Just this past week, both the European Central Bank and the Canadian Central Bank, which is also known as the Bank of Canada, cut rates. Both the ECB and the CCB, made their move to cut rates following a move by the Swiss National Bank.

Are you seeing a pattern here?

We The People of the WORLD, are told, and are led to believe, that “central banks do not coordinate.” That each central bank acts totally independent of another. Then, back in April of this year, in an interview with American Banker, Fed. Chairman J. Powell ADMITTED and said specifically that central banks DO work together in dictating world monetary policy. (It is also central banks who run the economy, the financial markets, and indeed the ENTIRE financial system).

Are we to believe that it’s just a coincidence that since the inception of central banking we have witnessed a 97% loss in the purchasing power of the currency? Is it just a comedy of errors that got us here?

OR is it just possible that MASS currency devaluation is the overall goal of central banks.

Currency devaluation is indeed the end game/goal of every central bank, and here is why.

Every single central bank operates in the same way, that is they issue debt. The currency which central banks create and then issue ARE NOT units of wealth, they are units of debt. The currency issued by central banks overall itself is debt, which THEY OWN! The currency overall is then owed back to the issuing central bank PLUS INTEREST, which they then create out of thin air.

The more debt any given central bank can issue, or is called on to issue, THE STRONGER THEY BECOME. (Every central banker wants to have an ally in the White House, a President who will call for a weaker currency, and suppressed rates).

Every single central bank power resides in JUST ONE THING! Their ability to inflate! Or their ability to issue more debt.

Here AGAIN, you can understand that it is certainly no comedy of errors which has created a world now BEYOND hyperinflated with debt.

On a macro scale today, entire nations have now become enslaved by central banks, with soaring debts, deficits, AND interest owed on the so-called public debt they take on.  

On a micro scale individual citizens have also become slaves to central banks, and are now carrying their largest debt loads IN HISTORY! With personal debt, household debt, credit card debt, etc. hitting new records with each passing day. All just a comedy of errors?

Today global inflation is SOARING as a direct result of excess currency creation, and now central banks are cutting rates.

So, when a given central bank cuts rates, how is that done?

For a central bank to cut rates, IT MUST GET INTO THE MARKET and buy debt. For a central bank to cut rates and buy debt, IT HAS TO CREATE MORE CURRENCY OUT OF NOTHING and buy debt. This mechanism is currency purchasing power negative, and therefore inflationary.

The mechanism of currency devaluation is THE KEY component which allows a central bank to gain control and increase their stranglehold on the world.