Conspiracy Theorist: 3/15

Bankers gone wild

By Mark Luedtke

After nearly a decade of ZIRP (zero interest rate policy), Janet Yellen’s Federal Reserve (Fed) is considering NIRP (negative interest rate policy). This literal downward spiral orchestrated by our rulers is the major cause of the world economy’s downward spiral.

Interest rates are a price like any other. In a free market, sellers and buyers negotiate prices to match supply to demand. If a price is too high, surpluses result, and since producers don’t want product sitting idle, they lower prices to clear their inventory. If a price is too low, shortages result, signaling producers to raise prices until supply and demand match.

The natural interest rate is the price of borrowing savings. It matches the supply of savings to the demand of people wanting to borrow saved money for projects like expanding production. If an entrepreneur wants to start or expand a business, he must first save his money to do so or borrow someone else’s saved money. Savings is the fuel that powers economic growth, and entrepreneurs are the engines of economic growth.

Enter the Fed. Some people think the Fed is a capitalist institution. Nothing could be further from the truth. The Fed was created by Congress, and its board is dominated by presidential appointees. Our banking system is thoroughly fascist, controlled by government.

The function of central banks is to pervert interest rates to benefit our rulers. They do this by printing money, which pushes down interest rates. Artificially low interest rates, like all price controls, cause shortages, in this case a shortage of savings. Borrowing exceeds savings, creating the unprecedented debt and anemic savings that threaten civilization today.

ZIRP means the big banks can borrow money at zero interest then turn around and loan it at higher interest rates, making a killing while the rest of us drown in debt. They use the free money to buy government bonds to satisfy their government masters and enable runaway government spending.

But, surprise, surprise, this outrageous counterfeiting scheme hasn’t improved our economy. It’s made our economy worse. A crash much bigger than 2008 has already started, and the bankers know it. They’re panicking. The Japanese central bank first implemented NIRP, and the European Central Bank quickly followed. NIRP means the central banks are charging savers, eating up their savings, trying to pressure them to spend their money instead of save it. Yellen is preparing to do the same here.

But the bankers have a problem: saving makes people richer while spending makes them poorer, so savers are hoarding—another word for saving—cash instead of spending. Rulers are demonizing savers and waging war on cash in response. The Wall Street Journal informs, “Are Japan and Switzerland havens for terrorists and drug lords? High-denomination bills are in high demand in both places, a trend that some politicians claim is a sign of nefarious behavior. Yet the two countries boast some of the lowest crime rates in the world. The cash hoarders are ordinary citizens responding rationally to monetary policy.”

To combat this, the ECB just banned €500 notes. Former Clinton Treasury Secretary Larry Summers called to ban bills over $50. Even Monopoly has gone cashless as part of the propaganda campaign.

But this attack on cash and interest rates undermines the function of interest rates. Interest rates provide the incentive for people to invest. The goal of investing is to produce greater wealth in the future than what you have at present.

ZIRP was bad enough. Nobody invested in the future to obtain zero return. That wouldn’t be rational. That’s why real economic growth halted, and we only experienced price inflation for the last eight years.

NIRP is worse. Nobody in his or her right mind would invest to obtain less in the future than he had in the present. NIRP will worsen the impending crash as people hoard cash, gold and silver to protect themselves. Home safes recently sold out in Japan.

Writer and blogger Charles Hughes Smith explains why NIRP will backfire on bankers: “If banks start charging savers interest on their cash, savers will have to save even more income to offset the additional costs imposed by central banks on their savings.”

Smith also explains the real motive behind NIRP: “What exactly are we saving by destroying savings and capital? Isn’t capital the foundation of capitalism? The answer is we are saving nothing but a rotten-to-the-core, parasitic, predatory banking system, coddled and enabled by corrupt central banks and states.”

NIRP and banning cash are the final steps to universal, modern serfdom.

The views and opinions expressed in Conspiracy Theorist are the views and/or opinions of the author and do not reflect the views and/or opinions of the Dayton City Paper or Dayton City Media and are published strictly for entertainment purposes.

Mark Luedtke is an electrical engineer with a degree from the University of Cincinnati and currently works for a Dayton attorney. He can be reached at

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Reach DCP freelance writer Mark Luedtke at

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