Carlin: Wall Street Owns Washington

Investors Beware of Central Banks Bearing Austerity


from The Daily Bell:

IMFCentral banks must be responsible for financial stability … Financial stability should become a core central banking objective alongside monetary policy, although potential conflicts between the two functions might require some institutional redesign, the International Monetary Fund (IMF) said. The IMF noted in a study that although central banks had delivered low inflation, they had failed to prevent the devastating global financial crisis of 2008–2009. As a result, the IMF said new tools were needed to prevent excessive risk-taking, and that central banks may be best-placed to take on these tasks, although monetary policy should stay primarily focused on price and output stability. – Star Online

Dominant Social Theme: Central banks need to reduce the supply of money.

Free-Market Analysis: We were struck by a modest report (excerpt above) in the Star Online because it shows us once more that when it comes to monetary control, the International Monetary Fund is a big booster of central banking.

The IMF and the world’s current monopoly-model central banks work hand-in-glove; this is simply an unfortunate fact.

Read More @ TheDailyBell.com