Yellen & Jackson Hole – The Central Bank Marxist Festival

 

Global central bankers led by Federal Reserve Chair Janet Yellen gathered in Jackson Hole for their annual Marxist Festival. Of course, those in government are just way too dangerous because whatever they see never involves them as a cause of any problem. It is impossible to see how to engage the economy when you eliminate yourself as an antagonist in the plot.

What we MUST understand is there are two paths in economics. The first was Adam Smith’s approach as to lets see how this thing works and the second Marxist path that saw how it worked, did not approve of that function, and embarked on the path of intervention, manipulation, and control.

 

Fed Chairman Arthur Burns who presided at the time of the collapse of Bretton Woods in 1971, was rather blunt that this Marxist path of intervention has not been successful at all. The same basic statements were made by Paul Volcker. What you have to understand is this is a battle for confidence of the people and they know that. No Fed Chairman while in office can come out and say what they really think.

All the institutions and provinces knew I advised the central bank of Canada. At an institutional conference in Toronto, the central bank was there with its top 10 people. Everyone would ask me questions about the central bank and what were they looking at and then turn to look at them when I responded. After the session, I went up to the head guy I knew because they were stone-faced the whole time. I said I hope I did not offend them. He said it was a great conference and he wished he could stand-up there and tell these people the same thing.

Central banks have no magic-bullet. They operate the same as everyone one else responding to each other and the latest news. When the markets crashed from the 1989.95 turning point on the ECM, I had two central banks on the phone at the same time asking what the computer said and should they have to intervene. That was the Tokyo Crash 1989.95 that peaked at 38957 against our projection of 39314 but to the day. I explained the focus would be Japan and it should be the start of a 23 to 26 year depression. However, the rest of the world would survive and new highs would still be made going into various targets from Europe and then North America into 2032. No intervention would be needed.