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It Will Take A New Credit And Money System
“The policy of quantitative easing … did not solve the problems, but only pushed them into the future.”
The big central banks continue to beat their way back to the quantitative easing schemes they all used to drag the London and Wall Street banks through the last crash — signaling the approach of another. The Federal Reserve, which after 10 years finally raised its discount rates in 2018, has resumed lowering them; its chair, Jerome Powell, said, don’t regard the bailout measures used in the last crash as “unconventional” — they’re going to be used again. After the European Central Bank supposedly left its discount rate unchanged for a year on June 6, its head, Mario Draghi, spent the days since putting out rumors and leaks that, in reality, its board was discussing interest rate cuts and increased buying up of corporate and sovereign bonds from private banks. The Canadian Central Bank “reluctantly” returned to cutting rates. And so on for the rest.
Are we to believe the central banks, that they are just “supporting continuation of the expansion”? Stagnant and low-wage as that “expansion” has been since the crash of 2007–08, it has ended in Europe and is slowing in the United States. The central bankers know, and admit, that trillions in the debt of overindebted corporations and super indebted “zombie companies” will now default in these…
