Global Central Banking Crisis
- Part III

Go back to Global Inflation Crisis - Sub-zones

Global Central Banking Crisis
|Part 1|Part 2|Part 3|

Banking Crisis - The central banking system of easy money and excess money supply is central to the GFC. From the original Bank of England to the global central bank - the IMF - look inside the banking crisis.

8 – Moving Forward -

28) Influence of the central banking system and impact of the banking crisis.

Globally, inflation and unemployment are becoming increasingly obnoxious, and perhaps, reflecting Dr. Bates's comment, one may largely attribute these sickly conditions to central banking influence over money supply and job availability.

Furthermore, central banking systems throughout history have imploded due to financial malpractice.

The Bank of Amsterdam, Stockholms Banco – antecedent to the Bank of Sweden, the Bank of North America, the First Bank of the United States, and the Second Bank of the United States all had to close their doors due to lending more money that it had on reserve and was either closed due to a run on the banks by weary depositors scurrying to save their deposits from use in bank loans or wild inflation prompting society to end the crisis by ending its source.

Countless banks have seen bank runs or wild inflation even though they are still alive – due to bailout, the savior or simply continuing to do business in spite of the monetary madness – and the Bank of England, the world's first central bank and thus the world's oldest central bank, at over 300 years and counting, is an example of the central bank that has concocted crisis from a combination of money power and private power and yet, is alive and well.

When further profits can be made or when there are debts too deep to fill with income from labor, a seductive yet toxic option is to use the power to create currency.

Currently, during the GFC, many nations around the globe, particularly the higher income western nations, are well over their heads in debt and are continuously burrowing deeper

Henceforth, from this bellowing issue, a global central banking crisis could erupt simply because nations such as the United States, Portugal, Ireland, Italy, Greece, Spain, England, and Japan, have been facing large debts and deficits.

If nations such as these choose to create hefty sums of currency to assist in filling their hefty sums of debt – as we discussed in Global Inflation Crisis and United States Hyperinflation Crisis – the growth in money supply could cause high inflation, perhaps even hyperinflation.

Martin Hennecke, associate director at Tyche Group independent investment firm out of Hong Kong comments:

“..the US...[has] a fiscal deficit that it can never repay...and...Japan is also in danger, but even in China...talking about inflation...

if you have major countries going down this path of potential national bankruptcy and they can print their own currencies, what they usually do is print.

So we're looking at potentially hyperinflation in these western countries and this is going to be imported around the world and also in Asia. So the inflation rates [are not just] homegrown, but [also] imported from the western countries.

What I'm saying here is we haven't seen the final leg of the global financial crisis yet, what we have been seeing are the first parts...the main wave of inflation...could get much, much worse...

But basically it's not the end of the world – currency crises always happen and sometimes they reintroduce a new currency and if you know that before and trade your assets...then well, life is going to go on, it just means you have less or more money to spend after that.”

29) At present, the central banking system are lording over greater than 154 nations around the globe and 5 central banks are interfacing entire regions, such as the European Central Bank ( ECB ), the Bank of Central African States ( BEAC ) – Banque des Etas de l'Afrique Centrale), the Eastern Caribbean Central Bank ( ECCB ), and the Overseas Issuing Institute ( IEOM – Institut d'Emission d'Outre Mer).

(Source: Florian K) – European Central Bank – Frankfurt, Germany
– Est. 1988 -

30) The central banking system certainly appears to be a nearly omnipresent characteristic of the global financial market.

Central banking cancer – benign or unkind – with the power of world-money, in private control, could bring about a central banking crisis that sparks the most spectacular wildfire of the global financial crisis.

Global central banking crisis - a significant subset of global inflation crisis - and another component of the GFC.

How does global central banking crisis interlink with the global financial crisis?

I Click here to go into Global Inflation Crisis.

On behalf of The Global FC Zone,

Crisis to Profit.

Roth

Sources -

1) Mike Maloney Interview with Ron Paul. http://tinyurl.com/TheGlobalFCzone

2) The Money Masters. http://tinyurl.com/TheGFCzone-com

3) http://www.wikipedia.org.

4) http://tinyurl.com/4talw8c

5) Ferguson, Niall. The Ascent of Money.