$1 billion is a lot of money, even in the United States. In tiny Hungary it is however a massive sum. This, according to a report from Bloomberg is the amount the head of the Hungarian central bank has siphoned off for himself, friends, and allies in just 3 years. It appears to be a brazen and Putinesque (not a coincidence) act of crony capitalism. And Hungary is not the wealthiest country in Europe either.
It’s hard to overstate how important it is that despite massive, massive, intervention from the Bank of China and huge political pressure from Beijing the Chinese market continued and continues to sell off. This is the first instance of a central bank post-2008 really losing control. And this is happening in the world’s second largest economy and arguably the world’s chief engine of growth.
But remember Denmark is the happiest place in the world. (sic)
Well, that would be weird. I’ll take this report with a grain, but if true…
You know how this goes. The economy slows down and the authorities just introduce some more “stimulus.”
Where does this “stimulus” come from? Who cares!
The stimulus duct tape is so thick around the world economy at this point, things have been “patched” over so many times, it’s hard to remember what the world economic engine is actually supposed to look like.
Sadly it appears that these folks, filled with legitimate indignation, do not understand that central bank interest rate rigging is anything BUT capitalism. A banker politburo issuing edicts from on high pretty much is the opposite of free enterprise. The protester’s problem should be with the state and the bankers colluding, but as we see also in this country many people who have problems with bankers continue to have a love affair with the state. Witness the red flags on display above.
Bernanke has begun discussing exit strategies. How will the Fed end the very accommodative policies which have been in place since the Crash of 2008?