by Tim Price, Sovereign Man:
Rule #1 in central banking: Never go full Draghi.
Mario Draghi, of course, is the President of the European Central Bank (ECB) who pledged to do “whatever it takes” to save the euro. Or was it save the world. We forget.
Anyhow, Mark Carney, the head of the Bank of England, just went full Draghi, pledging to do, effectively, whatever it takes… even if that means destroy the British pound or economy.
Future historians will no doubt look back at this period in amazement, wondering, given the stunning and murderous failures of Nazi Germany and Soviet Russia, how central planning ever managed to find a last hold-out amongst the world’s central banks.
Yes, Britain may have finally escaped from the EU lunatic asylum.
But as investors we remain trapped in a surreal monetary nightmare in which clueless politicians and desperate central bankers have no choice but to print more money.
This decision, of course, continually erodes the purchasing power of individuals’ savings. It is a tax. An inflation tax.
And this is a tax that exclusively benefits those heavily indebted… namely governments and commercial banks.
It is perhaps no wonder that our own head of the Bank of England, Mark Carney, is a former Goldman Sachs banker, along with ECB President Mario Draghi (another ex-Goldman Sachs banker).
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