Central Bank Monetary Policy Leads To Certain Collapse - It's Just Policy

'Who Could Have Known?' and 'Mistakes Were Made' Is Not Going To Work

In 2007, I went to see a speech by Bank of Canada Governor David Dodge. I had made the acquaintance of Mr. Dodge while I was working toward my MBA at the University of British Columbia in 1997/98 where Dodge was a visiting scholar at the time.

Dodge had previously served as Canada’s Deputy Minister of Finance and afterward went on to the Bank of Canada where he served as Governor from February 1, 2001 to January 31, 2008.

Dodge was always affable and generous with his office time (in our discussions, when he got up to close the office door, you knew frank thoughts were going to fly). I could not help but like him.

In September 2007, Dodge gave a speech at a Vancouver Board of Trade luncheon that I attended and I was concerned with Dodge’s characterization of the disruption of the Asset Backed Commercial Paper (ABCP) markets as a repricing of risk whereas I saw it as the onset of collapse of a speculative bubble that had been fueled by loose central bank monetary policy.

After his speech I mentioned these concerns to Governor Dodge and he gave me his card and asked me to write him with my concerns.

The following two letters sent to the Governor and his acknowledgement (there was also an e-mail response from Dodge to my second letter) are posted for record purposes.

Mark Carney took over as Governor of the Bank of Canada (BoC) in February 2008.

I pressed the BoC for a substantive response later in 2008 and was informed that the materials had been passed to Prime Minister Harper’s office to respond. In turn, the Prime Minister’s office stated that Minister of Finance Jim Flaherty would be responding.

From 2004 through 2008 I repeatedly wrote directly to Prime Minister Paul Martin and then Prime Minister Steven Harper regarding these monetary fueled debt and asset bubble matters with no substantial response.

In the end, Minister Flaherty responded to the years of correspondence stating that my concerns were reviewed and that the Minister of Finance and the Bank of Canada were being careful not to execute inflationary monetary policy.

The Harper government response entirely avoided the central issue that our central banks were inflating debt and asset bubbles by running loose monetary policy utilizing distorted inflation indices and rigging of the gold market coordinated by the Bank for International Settlements (BIS) to mask their monetary inflation.

What we have seen for decades is evidence that central banks have executed, and denied, inflationary monetary policies that inflated global debt and asset bubbles that are now collapsing.

After their 2008 global bubble collapse, central banks digitally ‘printed’ currency and purchased more than $21 trillion (T) of assets to fake their value as a ‘solution’.

Nothing was resolved after 2008 with the increased central bank monetary and market interventions and now we face a compounded debt and asset bubble collapse.

We are left to conclude that we are witnessing a deliberate policy of asset and debt bubble inflation and inevitable collapse which will be followed by an attempt to implement total control of Western society citizens using central bank digital currency, digital personal identifications, social credit scoring of citizens, etc.

Below is:

A) Letter 1 to Governor Dodge

• price inflation running higher than stated due to systematic understatement

• gold historically acted as a monetary and price inflation warning system

• gold price manipulated by off-balance-sheet market interventions by central banks coordinated by the BIS

• credit bubble and asset bubble and moral hazard driven by central bank loose monetary policy while denying that monetary inflation ultimately results in price inflation

• requirement for monetary reform, financial market reform, alternatives to oil-based energy to offset price escalation as inflation price inflation

B) Letter of acknowledgement from Governor Dodge

C) Letter 2 to Governor Dodge

• two choices faced by central banks - either stop loose monetary policy OR continue loose monetary policy while utilizing false price inflation gauges and gold market interventions

• we are in the midst of a credit and asset bubble from central bank loose monetary policy that will lead to financial and social collapse if continued.

Best regards,

David Jensen

Letter 2 to Governor Dodge will follow in the next post (too large for this Substack post).