The Chinese currency, which is rigged, has risen 1% against the dollar this year. If it were not rigged, it would have risen far more.
The Chinese central bank inflates. The Federal Reserve inflates. The Bank of Japan inflates. The European Central Bank inflates, the Bank of England inflates, the Reserve Bank of Australia inflates. The central banks all inflate to keep the recovery going or to get out of the recession. All over the world, central banks are inflating as never before in peacetime.
Voters don’t know. They don’t care. Most voters have never heard of a central bank. They assume that people in charge know what they are doing. They know only this: they are not the people in charge. They are correct about this. Voters are not in charge. They have no say in the matter.
The race to the bottom is on. The central banks are on a collision course with reality. It is not possible to fund businesses if the central banks are buying government debt. The commercial banks are not lending to small businesses. So, only big businesses are able to raise money. Big business and big government are doing just fine. Main Street isn’t.
Committees of monetary experts in central banks around the world are deciding on policies that will re-shape the world. Yet these experts have only one permanent policy: inflate. The day they move to monetary stability is the day their economies move toward the first stage of recession. So, they inflate.
Bubbles, bubbles everywhere. But the voters do not understand. The voters think the people in charge can be trusted, or at least must be trusted by default.