Nomi Prins, the author of “Collusion: How Central Bankers Rigged the World,” explores the triggers for the recent shifts in global central banking and for the increasing coordination among major economies. She highlights five regions and central banks that played integral roles in reshaping geopolitics. She also argues that the policies they implemented in the wake of the financial crisis have created cracks in the global economy.
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How Have Central Banks Evolved Since 2008? (w/ Nomi Prins) | Expert View | Real Vision™
So what I see going on right now is that, since the financial crisis of 2008, which is now a decade ago, there are a lot of “remedies” that were put into the economy through banks that were supposedly done to help the economy. When, in fact, all they did was help the private banks, and the markets, and created a lot of sort of bubbles throughout the world that were performed by central banks, which are the bankers for banks, like the Federal Reserve in the United States, like the European Central Bank in Europe, like the Bank of Japan in Japan. I chose the word collusion to define what happened over this past decade between central banks and among central banks, because collusion has two connotations. One is, it's about groups or people working together in a sort of secret fashion that, then, part two, perform a sort of deceit, or a crime, or a cheating of some sort. And it's not a term that's used for what central banks do because, mostly, what they are considered to be is helpful for the economy, because that's the narrative under which they operate. That's the narrative under which the governments in which they reside are also operating. However, the reality is, there's a lot of coordination, particularly amongst the major central banks of the world, that's happened during the last 10 years to do two things. One is to keep the price of money extremely low. That's why we have 0% interest rates throughout the world. That's why when people put money into their savings accounts, they get 0.1%, if they're lucky, interest on it, because of the idea that these central banks would pump money cheaply to banks. And banks would somehow use it to help small businesses, to help spur the economy, to help individuals, and so forth, rather than simply help themselves, which is what they did with it. And the second part of this coordination or collusion together amongst the major central banks is to fabricate money electronically, and use it also to provide to the banks and the banking system in return for the assets or the bonds that they had on their books. So it's equivalent for central banks to get together and say, look, we're going to create a whole bunch of money out of nowhere. And we're going to give it to banks. And we're going to say to banks, you know what? Any junk you have on your books lying around that you can't get rid of, which was definitely the case in the wake of the 2008 financial crisis, just give it to us. We'll pay whatever. It's good. You keep the money. And that happened to the tune of $21 trillion, or the size of the entire United States GDP, over the course of a 10-year period. And in some countries, it's still going on. So that's where the collusive activity of-- something's happening in secret, the conversations. A lot of things documented, but not publicly put together.