And the main point is that the banks have a fiduciary mission to create money for the real economy, and they don’t respect it. So the money in circulation in the real economy is indeed crashing, while the created money goes all bank to bank, shadow or not. The “leaders’ are incredibly non cognizant of what is going on. And this extends to the likes of the honorable Paul Krugman.

BTW, real leaders, such as Thesmistocles, had very advanced economic theories. And they acted on them, differently from the decomposing deers in headlights we now enjoy.
PA

http://m5.paperblog.com/i/19/192724/the-changing-value-of-money-L-AX1_yl.jpeg

https://rodeneugen.wordpress.com/2012/07/15/the-real-us-government-debt/

At this point the worst problem is that a whole bunch of Germans don’t understand they are playing with fire. As I explained in earlier essays, the ECB system was set-up by French Socialists who thought smart to duplicate the system installed by Pompidou, an employee of Banque Rothschild…

Right now, bankers are pocketting the money, and look happier than ever (except Swiss bankers who the USA first of all, and others such as Germany, esp. the SPD, and France are pressuring; the USA motivation seems more to grab market share than having justice triumph everywhere.)
PA

https://rodeneugen.wordpress.com/2012/08/03/an-advice-to-central-banks/

I have a excellent plan to solve the monetary problems caused by sovereign debts in Europe. Most of the central banks activity is the trade with the Government trusties. Trade with these trusties is also the main source of profit of the commercial banks and source of the inappropriate behavior of the bankers. To prevent situation, when only French or Russian stile revolution can change the political social evil the activity of these institutions causes, the best would be to let the central banks to purchase all the freely marketed government securities. If this step would cause some increase in inflation pressures, the minimum reserve rate requirement should be raised accordingly. By this step could be achieved several goals.
1.Reduce the government debts and the interest payments that burden the national budgets. (The interests paid to the central bank will be registered as Government income).
2.The banks would lose a chalk of their activities, where they can make profit without risk, which is translated later to unjustified reward to the executives and managers.
3.The Central Bank would have much better control on the credit volume. It could pour directly money in the system by printing it, and sucking it out by increasing the Reserve Rate Ratio.
4.To prevent from government to misuse the system of unlimited “free money” to spend, the government expenses and deficit should be controlled directly, by limiting it to the level of economic growth plus half of the inflation rate.
5.The only reason to increase the deficit above the mentioned limit would be war, and this should be financed directly by tax increase on the companies and wealthy. This would make wars very unpopular among the decision makers, and it is also only for good.
6. The most important result of the above proposed changes in Commercial Banks – Central Bank relation, will be probably the increased stability of the commercial banking system.

The only problem not solved by such a change of the system is, what will do all the unemployed bankers.

The financial plutocracy collaborates and is entangled with the Military-Industrial Complex, MIC, and the fossil fuel plutocracy, plus the security establishment (CIA, intelligence agencies, various military types). And they think long term, on the scale of many decades. The case of Iran is revealing. Messing up with Iran started in 1930s. It reached a fever pitch to throw out democracy from the country, then the MIC invested enormously under the Shah’s bloody, torturous dictatorship, and so it went.

Sometimes, like in Rome, various plutocratic currents are at odds, such as when the French brought back Khomeiny to Teheran. They were afraid the IsraeliS would shoot down the plane, so they stuffed it with famous people… (I read, I forgot the source) Later though the French helped Saddam Hussein as if he were the best friend they ever had (true he had given hospitality to Khomeiny, for years…) Times of Iran-Contra…

Too many crises piling up, something may well happen, so the MIC will thrive…. And when one has a look at the Putinocracy, or the Maocracy, let alone the crazed plutotheocrats in Pakistan, it’s hard to disagree. Pakistan is piling up nukes as fast as it can, as attacks again military bases become ever bolder. It is case where a preemptive strike may be what the doctor ordered…

Although, as far as the MIC is concerned, it may be even better if there was a real (nuke) war. Hence the hundreds of millions sent to Pakistan by the USA MIC to its Pakistani colleague, to perfect Pakistani nukes… Hard to see why this is not extremely high treason.
PA