The Spoliation of Central Banking January 5, 2006
Posted by Resident Egoist in : Economics , comments closedStefan Karlsson has a great article on the destrutiveness of central banking at the Daily Reckoning. He offers a rather insightful way of looking at the all the different and oft-hidden ways that the centralized banking system can manipulate economies. Here’s the gist of the article:
The Fed does not just manipulate the economy through increasing the money supply. It also manipulates the economy through the expectations of changes in the money supply.
Illustration:
[Fed Chairman, Alan] Greenspan has been the single most powerful individual in the world in the economic sphere.
By merely changing his choice of words between different speeches he has been able to rattle the markets. When he merely removes or add words like “measured” or “accommodative” somewhere in his speech, the markets either rally or panic. And through his words and his actions he has had a profound effect on the US Economy and the world economy as a whole.
Read the rest here.
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