Monday , 24 October 2016

John Mauldin’s Most Important Newsletter EVER: “Who the Bad Guys Really Are”

Our central bankers have set themselves up as the high priests of an economic religion. They hold certain doctrines on faith, and nothing will shake that faith. That’s the same impulse that drove ancient religious leaders to “policy decisions” like human sacrifice. The gods demand it, so it must be done. Too bad for all the victims.

The comments above and below are excerpts from a post by John Mauldin ( which may have been enhanced – edited ([ ]) and abridged (…) – by (Your Key to Making Money!)  to provide you with a faster & easier read.

The high priests of the global economy are so confident in their anachronistic dogma that they seem intent on sacrificing all of us, or at least those of us who depend on our savings and investments. Time will prove the wizards of central banking wrong, but by then a lot of people will have been hurt.

Trying to explain all this, and thinking about how we might counter it, I have written what may be my longest-ever edition of Thoughts from the Frontline. I feel it’s very important that we get this right. I also want to respect your time and deliver this complex story to you in a readable, interesting way. Here it is entitled Negative Rates Nail Savers.

…What you are about to read could give you serious heartburn, especially if you are an economist or a central banker or a retiree or just someone who has lived life playing by the rules, and now you find yourself getting no return on your savings, forcing you to save even more and work even longer.

I devoted my last two newsletters to the Fed’s seemingly unstoppable momentum toward a negative interest rate policy. Here are links in case you missed them: Six Ways NIRP Is Economically Negative Monetary Mountain Madness

Those letters brought a lot of responses but one in particular from my friend Newt Gingrich, who forwarded a column from John Crudele with a provocative headline “You’re not imagining things, the economy really is rigged against you.” Newt asked me a question that was characteristically short and simple: “Where are you on the rigged economy theme and the Fed–big bank alliance against normal people?” and, as his short questions tend to do, it required a long answer. I sat and thought about it for several days.

Crudele has a point, I told Newt when I wrote back, but the issue he addresses is nuanced and the solution far from obvious and, the more I thought about it, the more it seemed that the best way to answer Newt’s question was to write this week’s letter. [Again, HERE it is.]

Yes, the system is rigged, just not in the way that 99% of the people think it is and not by those they think are doing the rigging. Greed is not the reason for the rigging, nor are any of the other usual “follow the money” reasons. We cannot make a convenient demon out of Wall Street or the big banks and investment banking houses. The real culprits are far less sinister and are actually sincere in their motives, so you won’t see an Oliver Stone movie about the conspiracy to defraud the middle class and strip them of their hard-earned retirement savings. No, the “bad guys” in the story are…[continue reading HERE]

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