Interpreting psychobabble coming out of the Bank for International Settlement’s Claudio Borio

BIS psychobabble Yesterday, the UK news source The Guardian released a news article stating the Bank for International Settlements (BIS) that “trouble has been brewing for a long time” and the central bank’s options are dwindling.  And appropriately enough as if to emphasize the point, had a picture of a storm cloud over a picture of the City of London. Below the image the caption stated that the Bank for International Settlements has been warning of a “gathering storm brewing for a long time.” The central bank of central banks continues with obscure statements warning that central banks including the Central Bank of Japan is also running out of options. Reading this news on the BIS’s forecast is almost comical using descriptions of weather patterns to describe the potential for instability in global banking and financial markets that could be detrimental for all of us.

I’ve concluded the article is posturing for the Bank of International Settlements behind the central banking shadows to place itself at the head of a world central bank based in Basel, Switzerland. Articles like this give the impression the Bank for International Settlements is some sort of sacred monetary Temple looking down from its mountain peek on all those lowly and inferior central banks. There is nothing being manufactured anymore. All of this economy is built on paper assets, or more like a gambling casino. If BIS’s page off their website is read, there is not one in a million people who could possibly comprehend the significance of this complex technical language with the corresponding graphs used to describe central banking monetary circumstances.

BIS’s head of its Monetary and Economic Department, Claudio Borio, didn’t write the report hyper linked above, it was written by a team of writers inside BIS. Claudio Borio represents the oligarch banking and financial elite out of the City of London being educated at Oxford and sitting inside BIS since 1987. A permanent bureaucratic fixture at BIS. Here’s Borio’s mantra: “Debt is what helps us understand apparently unrelated developments”. Debt is the great master of our existence, without debt we are told we wouldn’t be able to trade or conduct commerce. Debt is permanently fixed like a concrete collar around our necks that we have been strapped to for hundreds of years and there is no avoiding it as it crushes human creativity. It’s a religion, the religion of debt. It isn’t about managing, controlling or easing debt, the BIS’s goal has always been to keep people and governments in debt despite all Borio’s esoteric economic voodoo theories about economics and debt. Here’s Borio’s latest:

“Economists are now trying hard [they need to try harder] to incorporate financial factors [no concrete definition of “financial factors”?] into standard macroeconomic models. [these are central banking models imposed by the hidden banking oligarchy] However, the prevailing, in fact almost exclusive, strategy is a conservative one. [conservatism is a creation of of the Rothschild banking interests who hired Francois-Auguste-Rene, vicomte deChateaubriand to scribble the ideology of conservatism] It is to graft additional so-called financial “frictions” on otherwise fully well behaved equilibrium macroeconomic models, [gee, Borio, would that include derivatives?] built on real-business-cycle foundations and augmented with nominal rigidities. The approach is firmly anchored in the New Keynesian Dynamic Stochastic General Equilibrium (DSGE) paradigm…The main thesis [a thesis is required for esoteric paper asset creation and perpetual debt hyper valued by greed] is that macroeconomics without the financial cycle is like Hamlet without the Prince. In the environment that has prevailed for at least three decades now, [the same length of time Borio has been at BIS] just as in the one that prevailed in the pre-WW2 years, it is simply not possible to understand business fluctuations and their policy challenges without understanding the financial cycle. [“financial cycles” are created by central banks of boom and bust cycles by controlling the amount of money printed then central bankers disguise the turbulence by calling it “inflation”] This calls for a rethink of modelling strategies. And it calls for significant adjustments to macroeconomic policies.”

Everyone get that? We’re in a “paradigm” apparently you didn’t create and have no control over. I’ve never read so much obtuse bullshit in my life. A runaway derivatives market approaching the incomprehensible figure of US$1.2 quadrillion intentionally unregulated now threatening to bring down banks all over the world and Borio is talking about some vague notion of being “built on real-business-cycle foundations and augmented with nominal rigidities.” That’s central banking psychobabble readers. It has no bearing whatsoever on our current economic circumstances. Presidents and politicians come and go while Borio has been at BIS for 30 years theorizing about economics. Did Borio ever come out and intercede to prevent the derivatives from being allowed to destroy their current banking model?

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