“Control the coinage and the courts. Let the rabble have the rest.” – attributed to Shaddam IV, Padishah Emperor of the known universe at the time of the rise of Paul Atreides a.k.a. Muad’Dib
It’s been a while since that image was used as a metaphor for the machinations of central bankers. I’m unsure how it originated, but it does express the shadowy nature of currency management at the highest levels. The folks involved in such things are seldom known to the public by name. We usually hear the name of the current nominee for Federal Reserve Board chairman, but the other members of the board tend to remain, in Theodore Sturgeon’s memorable phrase, as anonymous as third assistant clerks. I have no doubt that that’s the way they like it.
Former Fed Chairman, Janet Yellen, recently said something rather startling:
Janet Yellen recently complained to the U.N. Climate Change Conference in Glasgow that the world’s “carbon-intensive economies” need to go away – and to do that will take the spending of about $100 trillion, maybe $150 trillion, she wasn’t quite sure.
She said, too, that the “private sector” needs to rise to the occasion and fund much of that “estimated price tag.”
“Rising to this challenge will require the wholesale transformation of our carbon-intensive economies. It’s a global transition for which we have an estimated price tag: some have put the global figure between $100 and $150 trillion over the next three decades. At the same time, addressing climate change is the greatest economic opportunity of our time.”
At this time, the annual Gross World Product is about $85 trillion. Therefore, Yellen is proposing that “we” spend something close to twice what Mankind produces each year to “fix”…global warming?
“But wait!” I hear you cry. Yellen said that amount would be required over three decades. So we’re “only” talking about $5 trillion per year.
That’s larger than the Gross Domestic Product of any nation on Earth other than the United States, Communist China, and Japan…and guess which nation would be expected to foot the greater part of the bill?
Let’s leave aside for the moment the complete fatuity of spending that much of Mankind’s production to combat a non-problem. If it were proposed that spending that amount would eliminate every form of disease, poverty, and violence no matter where or when, I’d still be appalled by it – and here’s why:
There would be no refunds.
Just like governments, eh what?
Now, Miss Yellen doesn’t exactly live in the spotlight. Financiers seldom do, not even chairmen of the Fed. But she certainly ought to get a bit of it for that pronouncement, especially as (not to put too fine a point on it) she’s been a key player in the destruction of the U.S. dollar. The American dollar is the world’s reserve currency as established by the Bretton Woods agreement et sequelae. If the dollar crashes and burns, so will every other currency now in existence.
The currency controllers of the other major economies are likely to fall in line with this notion. They see the weakening of the U.S. dollar as to their advantage — if they can time it accurately. On the international bourse where currencies are traded and manipulated, timing is everything.
For the rest of us, it’s a call for suicide.
For a long time now, former U.S. Congressman Ron Paul has been calling for an end to the Federal Reserve System and a return to the gold standard. His arguments, though sound, have fallen on deaf ears. Washington is able to spend money it doesn’t have – money that doesn’t even exist – because of the Fed. Politicians love spending money…as long as it’s not their own, of course. Ask them to give up that privilege? Better do it from a goodly distance, Gentle Reader.
But a call to “fix” a non-problem, for the very existence of which there is no hard evidence, by spending amounts unheard of in all of history whether in absolute terms or as a percentage of Mankind’s production, is right up their alley. It would be the safest boondoggle imaginable. No one could possibly know whether their expenditures are having the promised effect!
We have entered a time in which the measures most Americans use to gauge their assets, debts, and futures are being destroyed with malice aforethought. To do so in the name of the chimera of “global warming” is merely salt in an already inflamed and suppurating wound. Don’t imagine that the notion could be killed by any exertion of yours or mine.
I do wish four PM would arrive much sooner than it does every day.
UPDATE: The original piece listed Janet Yellen as the current Fed chairman. She is actually the previous chairman. Jerome Powell is the current chairman. Sorry!