Central Banking Was Responsible For 2008 Meltdown – Nothing Else

The meltdown explanation that melts away ... Although our understanding of what instigated the 2008 global financial crisis remains at best incomplete, there are a few widely agreed upon contributing factors. One of them is a 2004 rule change by the U.S. Securities and Exchange Commission that allowed investment banks to load up on leverage. This disastrous decision has been cited by a host of prominent economists, including Princeton professor and former Federal Reserve Vice- Chairman Alan Blinder and Nobel laureate Joseph Stiglitz. It has even been immortalized in Hollywood, figuring into the dark financial narrative that propelled the Academy Award-winning film Inside Job. Bethany McLean is a contributing editor at Vanity Fair, and co-author with Joe Nocera of "All the Devils are Here: The Hidden History of the Financial Crisis." Her first book, "The Smartest Guys in the Room," co-written with Peter Elkind, became an Academy Award-nominated documentary. – Reuters

Dominant Social Theme: The meltdown was a catastrophe. It was caused by regulations ... taxes ... leverage ... big business ... big government ... mortgage products ... derivatives ... greed ... Satan ... but one thing is for certain, it wasn't caused by fiat-monopoly central banking. We know that for sure. Central banking had nothing to do with it ....

Free-Market Analysis: Following the 2008 global economic crash on an almost day-to-day basis, as we have, we've regularly made the argument that it was caused by central banking monetary inflation and that its result is bound to be the eventual demise of the dollar reserve system.

We believe we're being proven correct on both points. We've also pointed out that the crash itself was predictable and that the top elites that put this global central banking system in place know full well that cyclically it creates crashes, recessions and now depressions.

More