By Gregory Mannarino, TradersChoice.net
In life there are a few certainties. Among these certainties are death, taxes, and central banks.
I personally believe that most of us would like to see central banking go extinct, but the fact of the matter is this; today central banks are THE most powerful institutions on the planet. Moreover, world central banks’ power continues to increase exponentially in direct proportion to ever expanding global debt.
As most people who follow my work are already aware, a central bank’s power resides in only ONE THING! And that is their ability to issue debt, and therefore inflate.
Every manner of ANYTHING you can possibly think of, and things which you can’t even dream of, WILL BE USED to allow central banks to inflate.
Central banks have every single so-called “world leader” in their back pocket, turning them into puppets to assist them in implementing their grand plan to inflate/issue more debt.
Things like Warp Speed Vaccines, Wars, Expanding Wars, Congressional Acts/Policies, etc. are all tactics used upon an unsuspecting public which allow central banks to gain power.
It is central banks which run and (mis)manage the global economy and the entire financial system, not politicians. It IS NOT We the People, NOR policymakers who make the laws which we all must live under, but the central banks.
Below is an infamous quote which many of us have become familiar:
Permit me to issue and control the money of a nation, and I care not who makes its laws!
For many months now central banks including the Federal Reserve and the European Central Bank, have been aggressively raising rates.
The narrative of central bankers is this: by raising rates this will slow the pace of skyrocketing global inflation.
Well, TO DATE central banks raising of rates has been totally and completely ineffectual and why? Because it was never meant to work!
Central banks raise rates to hit demand and slow the economy, NOT to slow inflation—but this is the general LIE currently being sold to an unsuspecting and uninformed public.
How could central banks actually slow or even stop inflation? THEY COULD CONTRACT THE MONEY SUPPLY by raising the capital reserve requirements of the major banks.
The ROOT CAUSE of surging inflation IS NOT a rate issue! It is a money supply/currency issue.
Currently and collectively central banks are deliberately KILLING the purchasing power of their respective currencies.
Despite all this we should expect a few things to happen.
Firstly, MORE PROPAGANDA! Specifically, the narrative will change from “inflation is worsening” to “inflation is slowing.” This will be followed up by central banks, and I believe that it will be the Fed first, which will so-called “pivot” from an aggressive rate raising stance to a less aggressive stance, and then a PAUSE.
Understand, any so-called “pivot” will do nothing to prevent the root-cause of global inflation from abating—the global money supply will continue to grow.
With the current situation, I would say that a December “pivot” is likely.