Remember when conventional wisdom said central banks are apolitical and impartial, and anyone who claimed that the world’s money printers (which in the New Normal of failed fiscal policy means the only source of stimulus, and thus infinite political leverage and an existence “above the law”) are in fact the most political and partial entities was, what else, a conspiracy theorist? Well, there goes another conspiracy theory, replaced by conspiracy fact.
Yesterday, Polish magazine Wprost released a recording of a meeting between Interior Minister Bartlomiej Sienkiewicz and central bank Governor Marek Belka which took place in a Warsaw restaurant in July 2013. In the recording, Belka told the minister he would be willing to help the government out of its economic troubles if the finance minister was fired.
According to Bloomberg, which released the details earlier, Sienkiewicz allegedly heard on recording asking Belka if central bank would be able to support government 8 months before election if slow economic recovery and weak budget situation coincide with surge in support for opposition Law and Justice party.
Belka was then heard discussing “non-standard†support that includes “very significant change†in central bank status, and was heard saying he’s ready to help under condition that Finance Minister Jacek Rostowski is replaced by “technical and apolitical finance minister, who will find full support in the central bank.”
Odd: an elected government official being replaced by unelected technocrats who get the blessing of bankers, pardon, central bankers. Where have we seen that before? Oh wait, pretty much in every insolvent European country whose government is merely a group of sock-puppets designed to perpetuate the lie of democracy, and where all the relevant decisions are made by Mario Draghi.
Needless to say, Belka has been in damage control mode for the past 24 hours. Not because of what was on the tape, but because, just like the taboo topic of gold manipulation finally exploding on the public scene last month, so the fact that central banks are really the only “governing” force, subject to zero checks and balances (remember: “Get to work Mr [central banker]”), in a world in which the farce of democracy has been completely eradicated has finally been revealed to the entire public.
