6 Central Banks & The Ponzi Scheme That Will Bankrupt The World

By Tyler Durden  Wed, 04/29/2020 - 22:05

Authored by Egon von Greyerz via GoldSwitzerland.com,

The destiny of the world is now in the hands of 6 central banks, Fed, ECB, BoE (England), PBOC (China), BoJ (Japan), SNB (Swiss). This in itself bodes extremely badly for the global financial system. This is like putting the villains in charge of the judicial system. For decades these central banks have totally abused their power and taken control of the world monetary system for the benefit of their banker friends and in some cases their private shareholders.

The central banks have totally corrupted and destroyed the financial system, by printing money and extending credit that doesn’t exist. Everyone knows that creating money out of thin air makes the money totally worthless. These bankers know, that if you stand next to the printing press and get the money first, it does have some value before it circulates. And this is exactly what they have done. Once the money reaches the people, it devalues rapidly. As Mayer Amschel Rothschild said over 200 years ago:

“Permit me to issue and control the money of a nation, and I care not who makes its laws.”

WORTHLESS MONEY PRINTING LEADS TO WORTHLESS ASSETS

But the bankers are not just in charge of the printing press, they are also in control of the cost of money in the form of interest rates. By manipulating rates, they are setting aside the natural laws of supply and demand. So they can print unlimited amounts of money and price it at 0%. The effect of this is a debt bubble that can never be repaid and an asset bubble that is so fake that not a single asset is worth a fraction of the value it is priced at.

The central banks are now panicking and are creating trillions of dollars, euros etc. Add to that additional bank lending and government debt and we are in the tens of trillions.

Just looking at the 6 biggest banks mentioned above, their balance sheets have gone  up by $3 trillion from $21 trillion at the end of February 2020 to $24T today.

But this is just the beginning. We must remember that it wasn’t the Coronavirus that started the money printing. It all began back in late July 2019 when the ECB warned the world that something was seriously wrong by saying, we will do whatever it takes. A few weeks later the Fed started daily Repos of $100s of billions. This was the time when serious problems in the financial system started.

$5 TRILLION CREATED WITH ZERO INTRINSIC VALUE

At the end of Sep 2019, the Fed balance sheet was $3.8T and today it is $6.6T, an increase of $2.8T most of which occurred since March 2020. During the same period (Sep 2019-April 2020) US debt grew by $2T from $22.7T to $24.7T.

To continue reading, please go to the original article here:

https://www.zerohedge.com/geopolitical/6-central-banks-ponzi-scheme-will-bankrupt-world