Renowned investor and trends forecaster Marc Faber has issued a warning regarding central banks and socialism. View the entire article on Zerohedge here.
What he warns of involves central banks buying all financial assets the world-over: all corporate bonds, all government bonds, all mortgages and mortgage-backed securities.
Central banks have been doing this to some extent for many years now. Yet given that their policies never work, and only do additional harm to the global economy, one can assume they will begun to purchase MOAR of everything in the years to come. As things fall apart, the central banks rejoice, for they can "come to the rescue" and own everything.
"The central banks aren't interested in what works, they're interested in their own prestige. And they are so deep into it already and it didn't work. They will increase the medicine," said Faber, the publisher of The Gloom, Boom & Doom Report."Eventually, they'll buy all the government bonds; they'll buy all the corporate bonds, all the shares outstanding. Afterwards the housing market goes down, they'll buy all the homes and then the government will own everything."
That's the road to socialism, he ominously concludes.
As one comment on Zerohedge notes, the term "socialism" fails to describe this situation. Something like Global Feudalism more accurately describes what the world faces.
For those unfamiliar, feudalism involves a system of slavery whereby peasants tend to the land in exchange for shelter and safety. It was the system used when Kings ruled all the land. Our current model of society today has often been referred to as "neo-feudalistic", even in formal academic circles involving anthropology, sociology, communication.
We will never live to see the day when central banks own everything. Even though they already own much of the world, their system depends far too heavily on the illusion of faith.
And this year in particular appears to be one in which the public has begun to lose faith, en masse.
Evidence for that fact lies all around, but most notably in Gold's historic, meteoric rise this financial quarter. It has already been the best financial quarter for gold in USD terms in over thirty years, as I have written about previously. This indicates a widespread loss of faith in the dollar, in turn pointing to a loss of faith in the entire system itself.
People will always look out for their best interests. And millions have begun awakening to the fact that the central banks' very existence can never be in their best interest. So, the flight out of fiat currencies has begun. Let the rebellion against fiat debt slavery commence. Allow their castle walls to fall and crumble. No bankers shall be spared the wrath of a vengeful public.
Do not fear global feudalism. Resist it.