How Central Bankers Rigged the World

Book - 2018
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Grand Central Pub
In this searing exposéformer Wall Street insider Nomi Prins shows how the 2007-2008 financial crisis turbo-boosted the influence of central bankers and triggered a massive shift in the world order.

Central banks and international institutions like the IMF have overstepped their traditional mandates by directing the flow of epic sums of fabricated money without any checks or balances. Meanwhile, the open door between private and central banking has ensured endless opportunities for market manipulation and asset bubbles -- with government support.

Through on-the-ground reporting, Prins reveals how five regions and their central banks reshaped economics and geopolitics. She discloses how Mexico navigated its relationship with the US while striving for independence and how Brazil led the BRICS countries to challenge the US dollar's hegemony. She explains how China's retaliation against the Fed's supremacy is aiding its ongoing ascent as a global superpower and how Japan is negotiating the power shift from the West to the East. And she illustrates how the European response to the financial crisis fueled instability that manifests itself in everything from rising populism to the shocking Brexit vote.

Packed with tantalizing details about the elite players orchestrating the world economy -- from Janet Yellen and Mario Draghi to Ben Bernanke and Christine Lagarde -- Collusion takes the reader inside the most discreet conversations at exclusive retreats like Jackson Hole and Davos. A work of meticulous reporting and bracing analysis, Collusion will change the way we understand the new world of international finance.

Baker & Taylor
"Central banks and institutions like the IMF and the World Bank are overstepping the boundaries of their mandates by using the flow of money to control global markets and dictate economic policy both at the domestic and global level. These public institutions have become so dependent on funding from private banking and the revolving door between the two worlds is so smooth that public and private banks are effectively working toward the same goals. Packed with bold-faced names from the world of finance--from Janet Yellen, Mario Draghi, and Ben Bernanke to Christine Lagarde and Angela Merkel--Collusion sheds a bright light on the dark conspiracies and unsavory connections between what is ostensibly private and public banking and how it affects us"--

& Taylor

Exposes the collusion between central banks as they control the global markets and dictate economic policy, casting an unflinching spotlight on the dark conspiracies and unsavory connections within the halls of power.
A journalist and former Wall Street executive exposes the collusion between central bankers as they control the global markets and dictate economic policy, casting an unflinching spotlight on the dark conspiracies and unsavory connections within the halls of power. By the author of "All the Presidents' Bankers." 30,000 first printing.

Publisher: New York :, Nation Books,, 2018
Edition: First edition
Copyright Date: ©2018
ISBN: 9781568585628
Branch Call Number: 332.11 PRI
Characteristics: xix, 358 pages ;,25 cm.
Alternative Title: Collusion


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Aug 09, 2019

To begin at the end, after 250 pages of exposition, here are Prins’s prescriptions for curing global monetary policy. First: “Write off all the public debt incurred since 2008 that hasn’t been redirected to the real economy.” Second, “central banks should finance large investment and recovery programs”. Finally, we should break up the banks “à la Glass-Steagall”. One of these things is not like the others. Regarding the second point, the ultra-low interest rates global central banks have been justified everywhere for making public infrastructure investment more feasible by reducing interest carrying charges, but the decision to invest has come from the public authorities, not the central bankers. However, Prins seems to be suggesting that the central banks essentially run their own fiscal policies, making their own decisions on infrastructure spending, whereas the current mainstream view is that central banks should stay out of monetary policy. The third point is valid but ill-defined. The US Glass-Steagall Act, partly repealed in 1999, established a separation between investment and commercial banks. Is this all Prins wants to do: bring back the Glass-Steagall Act, or does she have other ideas? The first prescription is simply crackpot, and any country that tried to do as she suggested would essentially be declaring bankruptcy, and become an international pariah. Such an airy-fairy proposal only distracts from a serious debate about highly indebted countries like Greece, where some debt forgiveness may be called for.
Although all of the central banks that she writes about have inflation targets, if not inflation targeting regimes, none of Prins’s recommendations relate to reforming inflation targetry, a subject about which Prins seems both ignorant and incurious. When she writes: “as per the logic of price targeting to keep money conjuring going, Kuroda confirmed his commitment to the inflation target”, like she doesn’t understand the difference between price level targeting and inflation targeting. (Prins’s heartthrob Mark Carney showed so much enthusiasm for price level targeting while Bank of Canada governor that his Canadian media worshippers thought he might try to switch our central bank to a price level targeting regime. Predictably, his enthusiasm didn’t last.) While she chronicles in monotonous detail how the Bank of Japan continued to fall short of achieving its two percent inflation target, it never occurs to her to recommend that they and other central banks would do better to set a lower target rate.
Although she rightly warns of QE and low interest rates encouraging asset price bubbles, she takes no interest in Eurostat’s project to add an owner-occupied housing component to the HICP measure of inflation, including the ECB’s target inflation measure, the Monetary Union Index of Consumer Prices, which would help protect the euro area against housing bubbles like those that hit several euro area countries at the time of the financial crisis. That project seems to have been sabotaged by ECB President Draghi following publication of Prins’s book, but it is not dead yet, even in the euro area, and is a worthwhile European initiative that deserves to be emulated in other places.
If anyone is still with me, the proofreading of this book was atrocious: there is no central bank for Europe, the Bank of England is the central bank for the UK, and not just for England, Agustín Carstens became the BIS head on December 1, 2017, not October 1. May 9 in Moscow, which is celebrated as Victory Day, is the day after V-E Day, not the day before. I could go on, but I think you get the picture.

Oct 24, 2018

The book's basic premise is true: Quantitative Easing may be the biggest scam ever perpetrated on the people of the developed and developing worlds. Short definition of QE: Central banks try to stimulate the economy by printing new money. They do this by buying government bonds, then swapping them with companies carrying "toxic debt". To date, $21 trillion dollars has been created out of thin air. The winners are the major banks. The losers are smaller banks and ordinary people who have no access to this facility. The problem with this book? The examples used are way too detailed and technical to follow. Appropriate for an economics class. I found this one overwhelming.

May 07, 2018

Which country owns more of the US debt: China or Japan?
If you incorrectly answered China, as most Americans probably would, steeped in a daily barrage of Fake News [Fox, CNN, NPR, CBS, ABC, MNBC, PBS, etc., etc.], then a Real News financial journalist is the order of the day!
With Nomi Prins, with her great comprehension and knowledge of financial analytics, you get real financial journalism. [As opposed to Jill Schlesinger, for instance . . .***]
Ms. Prins begins the book with a concise definition of the result of killing Glass-Steagall [allowing banks to use bank deposits for speculation - - myself, being much less refined, would have phrased it: Allowing banks to use your bank deposits to screw you!], and ends the book with a most important fact: in 2017, US banks used 99 percent of their net earnings to purchase their own stock and pay dividends to shareholders - - and themselves. So where's the future investment or amortization?
And since the major bank loans in the past some years go to corporations for their own stock buybacks and dividend payouts, where is THEIR future investment and amortization? [Not needed when all one is involved with is game rigging, et cetera.]
A very important read!
***This morning CBS senior business correspondent, Jill Schlesinger, claimed that no worries on China since their workers will demand higher wages - - now this is the most stupid comment I've ever heard. This Wall Street mythology that global labor will even out, eventually, due to higher wage demands conveniently excludes important realities such as this was why the Obama Administration [together with Sec'y of State, Hillary Clinton] supported the overthrow of populist president of Honduras, Manuel Zelaya, just because he planned to raise their national minimum wage by a few pennies. This also ignores the important implementation by China of their heinous // social credit system \\ which will label any labor disputants negatively, barring their access to transportation, housing, education, employment, et cetera, et cetera, et cetera!!! In China, when groups become annoying to the government there, like human rights attorneys which were arrested then disappeared in 2015, China's gov't simply disappears them, frequently ripping out their organs {forced organ harvesting} to profit the Princelings who rule. The notion that a Totalitarian Capitalist State like China is simply a civilized state-sponsored capitalism structure is beyond ignorant and stupid!
And in America we have clowns like the former SEIU head, Andy Stern, who promotes the offshoring of labor protests, disputes, et cetera - - and by offshoring I do NOT mean the spreading of, but not taking such actions in the USA, but promotion the OFFSHORING to cheaper climes?!?!
Since 1985 wages in America have risen by only .047 percent, as compared to say, Germany, where they rose by 220 percent. When offshoring is introduced, along with foreign job creation and the insourcing of foreign visa workers along with undocumented workers, wages stagnate or plummet!
Ms. Prins provides us with first-class financial journalism; CBS and the rest provides us with shills . . .

Mar 22, 2018

Only read a few excerpts from this book, not the entire thing yet, but greatly looking forward to it. My only complementary criticism of the quite superior and intrepid Ms. Prins is that she is somewhat understated, while I'll be screaming at the top of my lungs!!!
This should be the exact opposite of a BBC rebroadcast of an NPR/Marketplace interview with the three stooges of the global economic meltdown: Timothy Geithner, Hank Paulson and Ben Bernanke, with most or all of the encyclopedic facts presented as only Ms. Prins is able to!
[Synopsis of what wasn't said in that pathetic fake news interview of Bernanke, Paulson and Geithner:
The first action of Geithner upon being appointed at the FRBNY was to fire Prof. Shiller [long-time advisor and author of Irrational Exuberance fame] for tactfully suggesting that they should add the capability of - - FALLING HOUSE PRICES - - to their Federal Reserve economic prediction models, which only allowed for RISING HOUSING PRICES! The professor was replaced with Catherine Mann from the Peterson Institute - - she's the dudette who created that magical assumption that for every American job offshored, there would be two or more jobs magically created in the USA - - sort of like that magical Keebler cookie factory run by leprechauns, I guess? The Fed's magical economic models remained untouched, allowing ONLY for rising housing prices!
At that same time, Citigroup was selling [and making a fortune doing so] MONEY-BACK GUARANTEED trash CDOs - - but how in creation could they ever back them up with money - - Uh, Oh!!!! So that's why their total gov't bailout amounted to one-half trillion dollars of federal handouts! The dude who was at Citi's Asset Management Group was Jack Lew, future treasury secretary under President Obama; Lew having made his bones at NYU when he broke up a grad student assistant union and was rewarded by NYU with having his mortgage paid off - - the rich absurdity of that is that Lew's actions together with Citigroup's initiated countless fraudclosures of mortgages across the country.
As Prof. Greenburger [who was at the Commodity Futures Trading Commission with Brooksley Born when she attempted to install oversight on the credit derivatives, but was overruled by the Clinton Administration] said, the Credit Default Swap [a subcategory of credit derivatives and an insurance scam instrument] was a or the major cause of the global economic meltdown.
BTW, Timothy Geithner obtained his position as chair of the Federal Reserve Bank of NY, the major bank of the Fed Reserve System, with the influence of Peter G. Peterson, protege of David Rockefeller [some would say Rockefeller's creation], and co-founder of the Blackstone Group, that private equity/leveraged buyout firm which provided presidential candidate Bill Clinton with both office space and donations when he first ran for the presidency. Peterson and Rockefeller established the Peterson Institute [remember Catherine Mann from the Peterson Institute ??] to push forward their agenda.
The last person interviewed after Bernanke, Paulson and Geithner was financier/investment dude, Mohammed El Erian [have to check that spelling, sorry] who just happened to have also been from the Peterson Institute. Small world, huh?
Between 1997 to 2007, $23 trillion of securitized debt was sold - - making BIG BUCKS for the sellers - - and between 2007 to 2009, $23 trillion of assets and wealth of households in America, Europe and Asia was lost! Quite the wealth transfer to the highest .01 percent!
Facts skipped during that original NPR/Marketplace interview, rebroadcast by the BBC!?!?
[Little known fact: That non-econmist wunderkind from the Reagan Administration fame, George Gilder {trickle down economics, et cetera}, just happened to have been the adopted son of David Rockefeller. An incredibly small world, huh???]

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