Central Banks Have Gone Rogue, Putting Us All at Risk

Central bankers are now aggressively playing the stock market. To say they are buying up the planet may be an exaggeration, but they could. They can create money at will, and they have declared their “independence” from government. They have become rogue players in a game of their own.

Excluding institutions such as Blackrock and Vanguard, which are composed of multiple investors, the largest single players in global equity markets are now thought to be central banks themselves. An estimated 30 to 40 central banks are invested in the stock market, either directly or through their investment vehicles (sovereign wealth funds). According to David Haggith on Zero Hedge:

Central banks buying stocks are effectively nationalizing US corporations just to maintain the illusion that their “recovery” plan is working . . . . At first, their novel entry into the stock market was only intended to rescue imperiled corporations, such as General Motors during the first plunge into the Great Recession, but recently their efforts have shifted to propping up the entire stock market via major purchases of the most healthy companies on the market.

The US Federal Reserve, which bailed out General Motors in a rescue operation in 2009, was prohibited from lending to individual companies under the Dodd-Frank Act of 2010; and it is legally barred from owning equities. It parks its reserves instead in bonds and other government-backed securities. But other countries have different rules, and today central banks are buying individual stocks as investments, with a preference for big tech stocks like Amazon, Apple, Facebook and Microsoft. Those are the stocks that dominate the market, and central banks are bidding them up aggressively. Markets, including the US stock market, are thus literally being rigged by foreign central banks.

The result, as noted in a January 2017 article on Zero Hedge, is that central bankers, “who create fiat money out of thin air and for whom ‘acquisition cost’ is a meaningless term, are increasingly nationalizing the equity capital markets.” At least they would be nationalizing equities, if they were actually “national” central banks. But the Swiss National Bank, the biggest single player in this game, is 48% privately owned; and most central banks have declared their independence from their governments. They march to the drums not of government but of big international banks.

Marking the 10th anniversary of the 2008 collapse, former Fed chairman Ben Bernanke and former Treasury secretaries Timothy Geithner and Henry Paulson wrote in a September 7 New York Times op-ed that the Fed’s tools needed to be broadened to allow it to fight the next anticipated economic crisis, including allowing it to prop up the stock market by buying individual stocks. To investors, propping up the stock market may seem like a good thing; but what happens when the central banks decide to sell? The Fed’s massive $4 trillion economic support is now being taken away, and other central banks are expected to follow. Their US and global holdings are so large that their withdrawal from the market could trigger another global recession. That means when and how the economy will collapse is now in the hands of central bankers.

Moving Goal Posts

The two most aggressive central bank players in the equity markets are the Swiss National Bank and the Bank of Japan.  The goal of the Bank of Japan, which now owns 75% of Japanese exchange-traded funds,  is evidently to stimulate growth and defy longstanding expectations of deflation. But the Swiss National Bank is acting more like a hedge fund, snatching up individual stocks because “that is where the money is.” About 20% of the SNB’s reserves are in equities, and more than half of that is in US equities. The SNB’s goal is said to be to counteract the global demand for Swiss francs, which has been driving up the value of the national currency, making it hard for Swiss companies to compete in international trade. The SNB does this by buying up other currencies, and it needs to put them somewhere, so it is putting the money in stocks.

That is a reasonable explanation for the SNB’s actions, but some critics suspect other motives. Switzerland is home to the Bank for International Settlements, the “central bankers’ bank” in Basel, where central bankers meet regularly behind closed doors. Dr. Carroll Quigley, a Georgetown history professor who claimed to be the historian of the international bankers, wrote of this institution in Tragedy and Hope in 1966:

[T]he powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole.  This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences.  The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.

The key to their success, said Quigley, was that they would control and manipulate the money system of a nation while letting it appear to be controlled by the government. The economic and political systems of nations would be controlled not by citizens but by bankers, for the benefit of bankers. The goal was to establish an independent (privately owned or controlled) central bank in every country. Today, that goal has largely been achieved.

In a paper presented at the 14th Rhodes Forum in Greece in October 2016, Dr. Richard Werner, Director of International Development at the University of Southampton in the UK, argued that central banks have managed to achieve total independence from government and total lack of accountability to the people, and that they are now in the process of consolidating their powers. They control markets by creating bubbles, busts, and economic chaos. He pointed to the European Central Bank, which was modeled on the disastrous earlier German central bank, the Reichsbank. The Reichsbank created deflation, hyperinflation, and the chaos that helped bring Adolf Hitler to power. The problem with the Reichsbank, says Werner, was its excessive independence and its lack of accountability to German institutions and Parliament. The founders of post-war Germany changed the new central bank’s status by significantly curtailing its independence. Werner writes, “The Bundesbank was made accountable and subordinated to Parliament, as one would expect in a democracy. It became probably the world’s most successful central bank.”

But today’s central banks, he says, are following the disastrous Reichsbank model, involving an unprecedented concentration of power without accountability. Central banks are not held responsible for their massive policy mistakes and reckless creation of boom-bust cycles, banking crises and large-scale unemployment. Youth unemployment now exceeds 50 percent in Spain and Greece. Many central banks remain in private hands, including not only the Swiss National Bank but the Federal Reserve Bank of New York and the Italian, Greek and South African central banks.

Banks and Central Banks Should Be Made Public Utilities

Werner’s proposed solution to this dangerous situation is to bypass both the central banks and the big international banks and decentralize power by creating and supporting local not-for-profit public banks. Ultimately, he envisions a system of local public money issued by local authorities as receipts for services rendered to the local community. Legally, he notes, 97 percent of the money supply is already just private company credit, which can be created by any company, with or without a banking license. Governments should stop issuing government bonds, he says, and instead fund their public sector credit needs through domestic banks that create money on their books (as all banks have the power to do). These banks could offer more competitive rates than the bond markets and could stimulate the local economy with injections of new money. They could also put the big bond underwriting firms that feed on the national debt out of business.

Abolishing the central banks is one possibility, but if they were recaptured as public utilities, they could serve some useful purposes. A central bank dedicated to the service of the public could act as an unlimited source of liquidity for a system of public banks, eliminating bank runs since the central bank cannot go bankrupt. It could also fix the looming problem of an unrepayable federal debt, and it could generate “quantitative easing for the people,” which could be used to fund infrastructure, low-interest loans to cities and states, and other public services.

The ability to nationalize companies by buying them with money created on the central bank’s books could also be a useful public tool. The next time the megabanks collapse, rather than bailing them out they could be nationalized and their debts paid off with central bank-generated money. There are other possibilities. Former Assistant Treasury Secretary Paul Craig Roberts argues that we should also nationalize the media and the armaments industry. Researchers at the Democracy Collaborative have suggested nationalizing the large fossil fuel companies by simply purchasing them with Fed-generated funds. In a September 2018 policy paper titled “Taking Climate Action to the Next Level,” the researchers wrote, “This action might represent our best chance to gain time and unlock a rapid but orderly energy transition, where wealth and benefits are no longer centralized in growth-oriented, undemocratic, and ethically dubious corporations, such as ExxonMobil and Chevron.”

Critics will say this would result in hyperinflation, but an argument can be made that it wouldn’t. That argument will have to wait for another article, but the point here is that massive central bank interventions that were thought to be impossible in the 20th century are now being implemented in the 21st, and they are being done by independent central banks controlled by an international banking cartel. It is time to curb central bank independence. If their powerful tools are going to be put to work, it should be in the service of the public and the economy.

________________________

First posted on Truthdig.com. Ellen Brown is an attorney, founder of the Public Banking Institute, and author of twelve books including Web of Debt and The Public Bank Solution. A 13th book titled Banking on the People: Democratizing Finance in the Digital Age is due out at the end of the year. She also co-hosts a radio program on PRN.FM called “It’s Our Money.” Her 300+ blog articles are posted at EllenBrown.com.

23 Responses

  1. Wow. U R. Brilliant

    Sent from my iPhone

    >

  2. The Bill Browder-Magnitsky Act scandal is the most important and unreported story of the 21st century.

    Browder-Magnitsky is directly related to the issue of the “money power” being concentrated in far too few hands on Earth, as noted in Ms. Brown’s excellent article(s) and books.

    Research director Andrei Nekrasov, whose documentary film exposing the Browder-Magnitsky scandal, “The Magnitsky Act: Behind the Scenes”, was recently taken down by Vimeo.com. Research author Alex Krainer, whose book “Grand Deception: Exposing the Bill Browder Hoax” was recently taken down from Amazon.com. Research investigative journalist Lucy Komisar (TheKomisarScoop.com) – possibly the foremost expert on the Browder-Magnitsky scandal in the Western world.

    In his Helsinki, Finland press conference with Donald Trump, Vladimir Putin mentioned Bill Browder by name. The truth must absolutely become known by people in all nations and regions. Exposing the Browder-Magnitsky scandal to the world is arguably the most important challenge facing humanity in the year 2018.

    The enormity of the story historically is immeasurable, directly relates to real potential for world war, and therefore the urgency of tackling the issue cannot be overstated.

  3. The banks have entered the realm of corporate fascism.

  4. Reblogged this on California freelance paralegal.

  5. No fix will ever happen. It is meant to fail. The higher forces that are unmentionable mean to crash the old system and enslave the world to their new, digital system. Want to buy or sell anything? Put your hand on the Reader.

  6. I wish it were as simple as them playing the Stock market.. and truly wish it were..This only affect 1% of the USA population as the Pension funds and private ownership are next to nothing. WE American are so ignorant of the POWER we have given these central banks as to be considered no longer “useful idiots.” but “RETARDED meat sacks” Money is not and never was their objective, it is only their TOOL… not yours..even if you have a billion Dollars in Stocks or gold or cash.. Its’ not YOURS.. they are lending it to you… They are AFTER WW3.. & Population decimation.. If you all knew the REALITY of this situation, Not a banker or politician in the western world would remain alive for long. At least 14 Assassination attempts have been made against Trump in 18 months. with several casualties along the way. Like him or not, go to church and pray god watches over him, and I truly non religious at all,.. You don’t incur this kind of hatred among the Rich unless you’re doing some thing right…
    Consider this, Everything you think you know, everything you think you have learned , everything you believe to be true is mostly wrong and a lie.. “NO” the Human race is not EVOLVED from Monkeys, the Human race is hundreds of millions of years old.. and yes there were REAL giants in our past and some dozens of types of human subspecies.. While my comments are not based on any particular books, a closer vision is that portrayed the “forbidden Archaeology” series.. One can contradict theory, but not a rock or a bone or physics

  7. I would add, There is NO DEBT.. NONE at all.. NO MORTGAGES, NO CREDIT card DEBT, NO STUDENT LOANS , NO NATIONAL DEBTS None of it is real.. because you never borrowed any.. not the country , not you personally.. only CREDIT was accepted and extended.Secondly, it is and has been ILLEGAL for any bank to do business in the USA since 1921 and the laws are on the BOOKS still today.. They were only permitted to do business OUTSIDE the Continental USA…using the US federal Reserve ” NOTE” ..People should know the LAW and READ legislative & economic history and “Understand” that their grandparents and great grand parents were much much smarter than they are today.. I liken our civilization to H.G.Wells book , “the Time Machine” whereby those who READ become the overlords and those who don’t become the MORLOCS (grovelling grunting animals).. and of course those who do nothing become the FOOD for both..
    It amazes me truly, how everyone or nearly everyone in the USA can claim they know how to play POKER and all its different versions as well as RULES and are truly “PROUD” of this achievement, which has no valued baring on their’s or their children’s life. and 99% can’t tell you the difference between the Declaration of Independence, Bill of Rights, and the US Constitution.. (let alone who wrote them and why) who collectively take less than 1 hour to read ( even for a dyslexic)…and are responsible for their physical safety and security and right to exist on this planet. US students can’t even find the USA on a Global Map..
    don’t believe me? ask anyone you know , how many amendments are there in the US Constitution? prepare to be shocked

  8. […] Ellen Brown Writer, Dandelion Salad The Web of Debt Blog September 15, […]

  9. Pat Buchanan once said that “Washington DC is an occupied territory.” But occupied by whom?

    In my view, the United States, not just DC, has been ‘occupied’ by the devils from Jekyll Island since the Federal Reserve Act of 1913.

    The FED started off with zero reserves. Today, the Fed’s balance sheet is over US$4.8 trillion and the US national debt has crossed the Rubicon, to reach US$21.4 trillion.

    The Fed is the National Bank of the Zionists and not the de facto Central Bank of America. Search and read the “Harold Wallace Rosenthal Interview of 1976″ to understand this.

    According to Catherine Austin-Fitts, another US$21 trillion are missing. If that is not bad enough a depressing news for Americans, according to Prof Lawrence Kotlikoff the long-term fiscal gap covering SS and Medicare is way past US$220 trillion. The US is insolvent, he says.

    So who are these occupiers? They are the globalist bankers who control the FED, Wall St, the big banks, big media, big social media, big pharma, big oil, majority of the Fortune 500 companies, Hollywood, Las Vegas, CFR, NED, other Think Tanks, academia, the Courts, and the Military Security Congressional Complex.

    Trump wants to drain the swamp infested by these globalists bankers who are destroying America for their own nefarious reasons and the ‘Empire’ is striking back at him from within.

    What can Trump do? Nationalize the FED, breakup big media and if there is any designed chaos from the globalist bankers and big media, Trump can declare Martial Law and put the treasonous globalist bankers, Neocons and politicians on trial by a military tribunal for national security reasons or else the United States’ fate is sealed as its economy will collapse under the weight of its colossal debts, sooner or later.

  10. Reblogged this on amnesiaclinic and commented:
    Very important article.
    Please share and bring it to the attention of your elected representatives at both local and national levels.
    Brilliant!

  11. […] Central Banks Have Gone Rogue, Putting Us All at Risk […]

  12. Dear Ellen, my bank refuses to answer these 3 questions. I have withheld payment for 4 months so far. Should I continue?
    Questions presented for loan origination actual monies.
    1. Produce documentation of prior title, ownership and rights to the money you purportedly loaned me;
     2. Produce documentation of the history and origin of funds that you/principal purportedly had prior title, ownership and rights to that you purportedly loaned me. It’s my comprehension that banking requires 3 generations at least if not all the way back to issuance/creation of the alleged funds and that this is why banks issue a letter of origin/history of funds.
     3. Produce documentation of the actual transaction and transfer of said funds (prior title, ownership, and rights) from loaner to borrower (invoicing/receipts) as there is a difference between a “loan” and “debt”, conceptually and factually.

    • Here’s another great question for your bank manager: “If a criminal, say from the IRS, demanded you take funds out of my account, would you investigate the criminal before removing the funds?” You will be amazed by the answer.

      • I’m sure you understand the bank cannot prove there was any actual money involved with the loan or any other loan since all is just digital entries today. This is the reason I and others have withheld payment until they produce the requested documents. The real fear they have is us pursuing a trial by jury which would let the public know of this fraud.

        A inquiry was made to a friendly judge about this potential fraud and he said should the bank file suite we could also apply for further, counterclaim for monies already paid with interest and for voiding of promissory note and extinguishing of any interest in the asset by the alleged loan originator via quiet title.

        There is much that troubles the bank in pursuing foreclosure because they know as Pre-trial evidence there is discovery demand and that is the opportunity for production of documentation by them via subpoena and/or Subpoena duces tecum.

        Just in case as a CYA safty net we all have escrow accounts should we need to settle but, some have not paid for over six months and two loans we sold in a bundle to other loan serving companies and we told they have no loan and explained the 3 questions. Again the response remains crickets from them as well.

      • Jerry,
        Please consider, this is serious stuff. You always want to ask a question that the banks refuse to answer or cannot answer. You don’t want an answer, you want an offer for remedy making these questions go away. Suggesting a trial by Jury for remedy is the motivator for them to settle and the have. Why? They do not want the public to know they cannot respond to the 3 questions because there was never any actual money involved. It’s all fraud, they have no risk.

        They know the MAXIMS OF LAW From a wrong no contract can arise.
        False in one thing, false in all things.
        It is a fraud to conceal a fraud.
        Fraud and deceit should benefit no one.
        Fraud and justice never dwell together.
        Fraud lies hidden in general expressions.
        Fraud is most hateful to law.
        He truly acts fraudulently who, observing the letter of the law, eludes its spirit.
        Right and fraud never dwell to­gether
        A maxim is so called because its dignity is chiefest, and its authority the most certain, and because it is universally approved by all.
        Once a fraud, always a fraud.
        That which is not valid at the beginning, improves not by lapse of time.
        What otherwise is good and just, if it be sought by force and fraud, becomes bad and unjust.
        Time cannot render valid an act void in its origin.
        That which is not good in its principal, will not be good as to accessories or consequences.
        In default of the law, the maxim rules.
        A mandate of an illegal thing is void.
        Remove the foundation, the work falls.
        Things grounded upon an ill and void beginning cannot have a good perfection.
        Void things are as no things.
        When the foundation fails, all fails.

        Please know this applies to any bank loan. you do have to follow through just ask these 3 questions of them in writing saying you did not received all the paper work pertaining to the loan origination for the purported money you lent me.

        Or you could apply for a home equity loan but request a bank check from them for the loan amount. it won’t happen because then they then would be liable and at risk. that is not the business they are in. they are only in the digital entry business – not real money.

  13. […] Central Banks Have Gone Rogue, Putting Us All at Risk […]

  14. […] ⇧   Central Banks Have Gone Rogue, Putting Us All at Risk […]

  15. A little more REALITY //www.youtube.com/watch?v=5-9MzmUu9R4&t=5s

  16. […] Central Banks Have Gone Rogue, Putting Us All at Risk […]

  17. […] From Ellen Brown: […]

  18. […] From Ellen Brown: […]

  19. […] From Ellen Brown: […]

  20. […] From Ellen Brown: […]

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