Monetary Policy and these recessions

Time Magazine

The primary difference between Iceland and Ireland at the moment is that Ireland was insulated from speculation by membership of the European Monetary Union. Our joyous embrace of the European Project has prevented a disaster.

The primary difference between America in 2009 and America in 1929 is the depression-averting cut in interest rates to zero. This has curtailed the extent of the recession to mediocre levels:
The big bad Fed have kept people in their jobs and seem to be doing their best to minimise the effects of the financial crisis to the average worker.

How are these realities reconciled with the typical CT approach that the Fed/European Banking is complicit in the NWO, insofar as it is attempting to create a crisis from which repressive powers are granted to governments? Surely, in the wake of the financial crisis, no NWO-child would seek to mitigate the problem?

Sofa_King Good

The Economist wrote: »

The primary difference between Iceland and Ireland at the moment is that Ireland was insulated from speculation by membership of the European Monetary Union. Our joyous embrace of the European Project has prevented a disaster.

The primary difference between America in 2009 and America in 1929 is the depression-averting cut in interest rates to zero. This has curtailed the extent of the recession to mediocre levels:
The big bad Fed have kept people in their jobs and seem to be doing their best to minimise the effects of the financial crisis to the average worker.

How are these realities reconciled with the typical CT approach that the Fed/European Banking is complicit in the NWO, insofar as it is attempting to create a crisis from which repressive powers are granted to governments? Surely, in the wake of the financial crisis, no NWO-child would seek to mitigate the problem?

Probably naive but I think it would have been better to let the financial institutions fail and keep the real money in the real economy to support employment and maintain economic activity.

Seems that there was however many trillions wiped out. The cuts and the bailouts needed to happen around this time last year, not in drips and drabs.

Time Magazine

Sofa_King Good wrote: »

Probably naive but I think it would have been better to let the financial institutions fail and keep the real money in the real economy to support employment and maintain economic activity.

Okay, it's a reasonable (if probably incorrect) view to think that employment would be higher had the banks failed. That's the "no bailout" view. Okay.

The cuts and the bailouts needed to happen around this time last year, not in drips and drabs.

:eek:

You say two things here. One is that the interest rate cuts needed to happen this time last year, and the other is that the bailouts had to happen around this time last year.

You think interest rate cuts were needed this time last year? That's fascinating because last month you were saying low interest rates were the cause of this bubble:

Sofa_King Good wrote: »

Straight after September 11th 2001 the Federal Reserve in the U.S. drastically lowered interest rates in order to prevent panic in the markets - some 4% of a rate cut if my memory serves me right.
This encouraged the credit bubble that has now spectacularly exploded.

You think bailouts had to happen around this time last year? That's also fascinating because you just said you thought the banks shouldn't be bailed-out at all.

Anyway. I agree with the logic of CTers that if a NWO plot did exist, it would be best implemented during a crisis as some "emergency measures". That seems like faultless logic to me. However having a reasonable understanding of economics and of political institutions, I've always taken exception to CTers' assertion that this was all connected to the monetary system and to the floating of currencies etc. Mahatma_coat has argued regularly and in great depth that not tying a currency to gold (which allows Central Banks to lower interest rates) put the whole economy on a seriously dangerous footing. I've always argued that the ability to adjust interest rates when required (e.g. right now) put the whole economy a much sounder footing. It was argued that the Fed and the EU etc. were all puppets of the NWO, just waiting for to create the next financial crisis that could enslave the proles.

Can anyone try and reconcile this argument with the fact that the actions of the Fed, the ECB and the Bank of England have had a big effect in curtailing this recession and in so doing kept potentially millions people in the job? Why would big, evil, NWO-controlled cartels of bankers do this?

Mahatma coat

Duh, people with Jobs pay taxes TO the Lizzzzzzzards, People without Jobs are a drain on the Lizzzards anywhere they have tried to implement their 'Socialist Expirement'

I think I conceded that gold wasnt the best solution, I still think that the value of the money has to be tied to SOMETHING, not just made up out of thin air.

where is this 700Bn coming from, they just made it up based on some shakey promise that it'll get paid back, paid back with what?? itself plus the interest, where does the interest come from, we make that up too, and so the bubble is perpetuated for another 18 months til someone actually looks at the balance sheet again

Kama

Meh, I'm too boring in my paranoid theorising to be a 'proper' CT...far more concerned by the blatant regulatory capture than the long-term Lizzard Mast0r Planz...the clear and odious is, like soo much less interesting than Nibiru channeling through the Transdimensional Matrices.

'Regulatory capture' sounds more polite and less scary than 'looting banksters', but its the same phenomenon imo...

mysterious

The people who own the monetary system. Created the system.

They created your reality, and you all manifest it, by using their system.


So when they create a global downturn, you all fall with it. As most people today don't know how to create their own reality.

Kama

*Furiously searches through bookstores for The Idiots Guide to Reality Creation*

Contra to 'most people don't know', we are all constructing realities right now. The trick is to do so collaboratively, and manifest it collectively. The alternative is a species of narcissism that 'reality creation' can fall into; I'll quote Paradox:

'I'll create my own reality/Coz I can't deal with the real thing'.

PK Dicks aphorism on reality is also worth keeping in mind; reality is what, when you stop beleiving in it, doesn't go away. The performativity of belief systems only goes so far before your head hits a quite real and manifest rock, stubbornly manifesting its own reality

Vadrefjorde

Such a big question :P
I think in time we'll look back on this thread and realise how wrong we were however.
An answer as to why they would mitigate the problem is quite easy though,
"A government's job is to be seen to fail"
The $787billion "Stimulus package" will have zero effect on the US recession. Nor will it have any knock on effect for the rest of the economic world.
Why? Lets watch closely next week, paying particular attention to Citigroup
Secondly, the previous depression had the benifit of the Glass-Steagall act, which Bill Clinton repealed during his administration.
I'll make another assertion, the $787billion stimulus package will never make it past the hedge fund hurdle and investor hurdle, if it does it will fall at the local politician hurdle.
To answer this question more coherently is a days work lol
But in short "you have to be seen to be trying".