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Subject: Armstrong is wrong if he is claiming central banks aren't complicit
From:    AnonyMint
Date:    Sat, July 26, 2014 10:17 pm
To:      "Armstrong Economics" <armstrongeconomics@gmail.com>
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http://armstrongeconomics.com/2014/07/26/stockman-v-greenspan-just-absurd/

Armstrong is correct that the fundamental problem is the power vacuum of democracy which is inherent in human nature, that allows socialism (i.e. debt, pensions, vested interests) to grow until it strangles the productive economy.

Armstrong is correct that capital moves internationally to escape such peaking socialism, and central bankers could not stop this movement forever as the fundamental rise of socialism is not under their control.

However, Armstrong is contradicting himself as he implies (unintentionally?) that central banks aren't complicit in that they have collaborated to extend the debt bubbles and socialism to prevent a crash and reset that would have otherwise have occurred much sooner. Armstrong wrote about this collusion just days ago:

http://armstrongeconomics.com/2014/07/24/world-central-bank-secret-agreements/

Also there is substantial evidence that central banks cause delays in debt and socialism resets. For example, the depression of 1919 was finished in only 2 years, primarily because the government and central banks did not intervene. The defaults proceeded rapidly and the reset and adjustment occurred at full speed. In the 1800s, there were numerous short-lived depressions (or recessions) often due to bank runs because there was no central bank backstopping these private banks who were issuing fractional reserve loans. The resets were more frequent and thus more shallow.

What global central banking has done to use since the early 1900s is sustain (preventing a default and rest of) the largest and longest growth of socialism without a reset since perhaps Rome.

Central banking is an invention of the socialism, for the socialism to sustain itself. Central banking needs to recede for the socialism to recede. They go hand-in-hand together.

Even Armstrong has written about how the Fed was originally charted only to buy corporate bonds. Socialism morphed it. Yeah it is fundamentally human nature at the root cause, and central banking is one of the bad symptoms or artifacts.

Sorry Martin.