The Central banks made a laughing stock of themselves post the 2008 meltdown. Revelations regarding the nexus between mortgage companies, insurers, investment banks and the regulator should be enough for anyone to never dare to trust them anymore.
What the article says may very well be true. Their is a resurgent China which is making things difficult for US and other Western countries. The US/ West cannot cut down on their expenses without risking the scenario of a Russia/ China dominance or being seen as weak in the wake of of Jihadist terrorism. This brings us to a situation where they need to print more and spend more. This is very similar to the examples given in the article.
If this does happen, it'll be a painful and long process. In today's connected world, we don't want this to happen. If a decision has to be taken on replacing the reserve currency, can it be taken without hurting world stability? I don't think it's possible for such a thing to happen in a non-violent, prudent decision kind of way.
The Central Banks never necessarily caused the housing market crisis, but rather it was the "too big to fail" banks that did. They lended out money like crazy in "subprime mortgages" that were pretty much guaranteed to fail, but the banks wanted to sell as many as they could and irresponsibly make people enclosed in debt with no end in sight.
Sure, Central Banks do other irresponsible stuff, but that has to do more with the money supply, not necessarily loans to everyday normal people.
What
was the embarrassing part was the reaction the government had and bailed out the greedy CEO fucks at the "too big to fail" banks because they deemed them too crucial to the economy to let them fail... "free markets" my ass.
You're right about the "too big to fail" banks. I feel the central bank was complicit in this because they are supposed to be the regulator right?
The bubble that was forming due to all those mortgage derivative bonds couldn't have escaped the attention of the regulator/ watchdogs. They just chose to look the other way while credit rating agencies stamped them as AAA. Though most reports absolve them of all blame, pointing on the lack of focussed oversight, it still is hard/ naive to believe that the officials involved were completely clueless. There is a good documentary by Michael Moore on this.
And absolutely yes, the bail-outs for all these millionaire CEOs and the increase in their payouts was just a "Fuck You" to the common people I guess.