Bernanke's Banking Misdirection

Ben Bernanke tells EU to clean up banks ... Federal Reserve chairman Ben Bernanke has exhorted Europe's leaders to take further action to beef up banks and help southern Europe claw its way back to health, warning that the world financial system is not yet on a sound footing. Strains in global financial markets "continue to pose significant downside risks", said Bernanke. –

UK Telegraph

Dominant Social Theme: You've got to get your banks in better shape, the way they are in the US.

Free-Market Analysis: This is surely a dominant social theme – that banks can be seen as healthy due to so-called stress tests. The whole idea is that the paper money reserves held by banks must be adequate to surmount any larger financial downturn.

This is part of a larger dominant social theme of the power elite, that central banking economies have banks or even money in the normal sense. In the modern world, money is anything but "normal."

But the elites that want to create world government want to insist on mimicking pre-modern monetary environments. They need to create the perception that the faux-money of central banking is every bit as valid as previous monetary systems.

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