Thursday, June 02, 2016

Stages Of Central Bankers' Failure
"Central bankers must accept the complete and utter failure of their policies if we are to move forward. Central bankers are now in the denial and anger stages of Kubler-Ross's famed stages of loss: denial, anger, bargaining, depression and acceptance. Central bankers are in denial that all their trillions of dollars, euros, yen and yuan have completely and utterly failed to achieve the desired result: 'organic' (i.e. unmanipulated by central states/banks) expansion of productivity, investment and household earnings .. Central bankers are now blaming the masses for maintaining a perverse psychological state of disbelief in the omnipotence of central banks and their policies. Central bankers are raging at the psychology of hesitant households, which they finger as the cause of global weakness: if only people believed everything was great, they'd borrow and blow tons of money, and the ship would leave port with a full head of steam. The central bankers have spent seven years constructing 'signals' that are supposed to create a psychological state of euphoria that leads to more borrowing and spending. The stock market is at all-time highs--don't those stupid masses get it? That's the 'signal' that all's well and they should get out there and borrow more money to enrich the banks! .. There are now signs of debilitating depression in central bankers. The failure of their policies is finally sinking in, and central bankers are sagging under the depressing reality. They look somber, freeze up at the microphone, and have withdrawn from 'whatever it takes' euphoria as they realize that another round of free money for financiers and manipulated markets will only make the problems worse and erode what's left of their crumbling credibility. Only when central bankers accept the complete and utter failure of their policies and accept the reality that their policies have increased wealth inequality and crippled the global economy with debt, speculation and manipulation, can we finally move forward."
- Charles Hugh Smith*
LINK HERE to the essay

1 comment:

Anonymous said...

CalPERS CEO Sentenced for PEU Activity (Bribes)

Zero Hedge reported:

Former California Public Employees' Retirement System (CalPERS) CEO Federico Buenrostro was sentenced Tuesday by a federal judge to four and a half years in prison for accepting more than $200,000 in bribes trying to steer investments.

Buenrostro pleaded guilty to fraud and bribery charges two years ago, saying he started taking bribes around 2005 to try and get CalPERS staff members to make investment decisions that helped Alfred Villalobos, an investment manager and former board member of the fund. The judge called the case "seriously troubling", and said it reflected a "spectacular breach of trust for the most venal of purposes, which is self-enrichment."

CalPERS owned 5% of The Carlyle Group at the time CEO Buenrostro started taking bribes to steer investments to former board member Alfred Villalobos, an investment placement agent.

Villalobos committed suicide five weeks before his trial was to start in 2015. Thus the voice that could have shed light on both sides of the CalPERS situation was silenced. It's amazing how PEU money washing gets swept under a rug with a huge settlement. It almost feels like a bribe to public officials to make their former bribes to public pension officials go away.