Central Banker Serenity Prayer
“Hello, my name is Jerome. I’m a central banker.”
“Hello, my name is Janet. I’m a Keynesian.”
“Hello, my name is Ben. I’m a monetizer.”
“Hello, my name is Alan. I’m an inflationist.”
“Hello, my name is Paul. I’m a central banker.”
The sponsor spoke as he smoothed the jacket of his $10,000 suit. “Welcome to our special session of Central Bankers Anonymous. At this point in the evening we recite two prayers.
“God grant me the serenity to accept
the things I cannot change,
courage to change the things I can,
and wisdom to know the difference.”
“And now our special prayer for tonight.” All participants bowed their heads and recited with the utmost reverence.
“God grant me serenity as I accept
the inevitability of printing currencies,
courage to monetize and inflate in
support of the wealthy,
and give me the words to fool most people
into believing our actions are beneficial.”
Later the meeting of Central Bankers Anonymous adjourned. Members returned to their magnificent homes, smiling and self-satisfied. The printing presses, liquidity injections, monetizations and Quantitative Easing operations would proceed, and perhaps accelerate.
Facts that hint at our future:
U.S. National debt. (Not including unfunded liabilities, missing funds, etc.)
1913: $3 billion
1971: $398 billion
2000: $5,600 billion
2019: $22,500 billion ($22.5 trillion) and rapidly rising
U.S. government actual deficit (all expenses less revenues): over $1 trillion per year. The debt ceiling is a pathetic joke. There is no willingness to reduce spending or deficits.
Fiscal responsibility has left the building.
Global central banker balance sheets:
2007: $5 trillion
2019: $19 trillion of created [from thin air] currency units.
Cost of a new truck in 1965: $2,000
Cost of a new truck in 2019: $60,000 (varies)
SNAP (food stamps) program: $65 billion for 2018.
Student loan debt: $1.5 trillion guaranteed by the U.S. government.
Mortgage debt: about $10 trillion and rising.
Pension plan underfunding: Huge, perhaps $3 - $6 trillion and rising. Defaults will occur.
Hospital bills for most Americans: out of control.
Prescription drug prices: High and going higher.
College Tuition: Grim.
Spending to purchase a Senate seat: perhaps $10 million.
Opinions:
- Official national debt has risen about 8.9% per year—every year—for decades. Debt will increase.
- Deficits grow larger each year. Fiscal irresponsibility will persist.
- Student loan debt rises every year. Massive defaults will occur.
- Prices for trucks, drugs, food, hospital services and almost everything but computers and televisions rise every year. Expect price increases to accelerate.
- Central banks make borrowing inexpensive. President Trump wants interest rates to fall even lower. The government budget can’t afford higher interest rates. Inexpensive loans encourage stock buybacks and support higher prices for stocks. This will not end well, but it may not end soon.
- The “Silly Season” has arrived. Presidential candidates make promises and request dollars to buy votes. At a Vegas roulette table, they say, “Around and around she goes, and where she stops, nobody knows.” In presidential politics they say, “polls show blah blah.” It’s the same.
