Mario Draghi, the President of the European Central Bank (ECB), is continuing the financial war that he and his fellow central banksters have been waging on the peoples of the world with his latest round of monetary measures. In an unprecedented (but not unexpected) move, Mario the Money-printer announced that the ECB will drop its deposit rate from 0 to -0.1% (“negative interest rate”), in effect charging banks for leaving their funds with the ECB. The other significant measure is the creation of a 400-billion-Euro “liquidity channel” for banks to encourage lending.
Ostensibly, the measures are intended to keep the supposed European recovery from stalling and to stave off any potentiality of “deflation.” Price inflation in Europe has supposedly fallen to 0.5%, which is well below the ECB’s target of 2%. Moreover, the Eurozone’s growth rate for the first quarter was an abysmal 2%–while the official unemployment rate remained at nearly 12%.
Advertisement-content continues below
None of Draghi’s measures, which in actuality boil down to money printing via bank credit expansion, will accomplish their stated goals. Such polices, to one degree or another, have been tried before and ultimately lead to hyperinflation, the destruction of the currency, and depression. This, however, assumes that central bankers’ primary goal is to “fight deflation,” reduce unemployment, and/or promote growth. It is not.
The principal objective of every central bank is the preservation of the banking system and the governmental authority that privileges it. Unemployment, price inflation, booms, and busts are at best secondary concerns for central banksters.
Central bank “self preservation,” however, comes at a tremendous social cost – the impoverishment of everyone outside of the banking-governmental orbit. The creation of a “liquidity channel,” Quantitative Easing, ZIRP, or whatever other term the economic spinmeisters use are attempts to hide the fact that central banks create money out of thin air, which ultimately results in the transference of wealth to the banking and governing classes of society. This is how the global ruling elites maintain their power and how, in the United States, a world empire is financed.
While the redistribution of wealth via monetary policy enriches the politically-connected financial elite, there are other baneful consequences. Money printing leads to the depreciation of the currency, which manifests itself into a rise in overall prices. Naturally, central banksters and the clueless financial press blame general price increases on other factors – “oil price shocks,” “speculators,” “greedy” businessmen – when, in fact, it is the inflationary actions of the central banks.
Advertisement-content continues below
While central banks do not (as of yet) use bullets and guns to conduct policy, their actions are still destructive of peoples’ well being (and, for those who oppose the United States empire, quite deadly.) It is undeniable that nearly every single financial crisis that has taken place since the inception of central banking can be traced to their policies.
It is, therefore, unlikely that central banksters would deliberately sabotage the financial system. While they, of course, would suffer a lot less from a collapse than the general public, a hyper-inflationary event and/or a currency crack-up would threaten their power and lead to a search for alternative monetary paradigms. They, thus, will seek to do all in their power to continue the existing fiat monetary order.
While Draghi admitted in 2012 the he would do “whatever it takes” to save the Euro, it can be assured that he will not implement a policy of sound money based on gold and silver. While such a move would begin a general recovery, it would also mean the end of Mario the Money-printer’s career as a central planner; and he would then have to find productive employment in the real world.
In what should make every European tremble, Mario the Money-printer promised more of the same if conditions do not improve: “Are we finished? The answer is no. We aren’t finished here. If need be, within our mandate, we aren’t finished….” Unfortunately, Draghi, in this case, is a man of his word; and as things deteriorate, which they certainly will, there will be more money printing. Until the power relationship of central banking is understood, and meaningful action is taken to dismantle central banking and prohibit state involvement in money, Mario Draghi’s war on Europeans and the rest of the world will continue.
Photo credit: ECB European Central Bank (Flickr)
The views expressed in this opinion article are solely those of their author and are not necessarily either shared or endorsed by WesternJournalism.com.