In the world the
damage is increasing and human civilization has a growing threat of a
catastrophic crisis.
International institutions The and governments are
looking for the cause.
Targeted research has
revealed that the primary source of increasing damage is the work of the
Central Bank (CB).
The objective of the
CB is to maintain price stability by ensuring the stability of its currency and
conducting monetary policy in accordance with the requirements of the adopted
laws.
The complexity of
business processes is an obstacle for the CB to achieve the intended objective.
The Bank has significant opposites: (1) benefits from beneficial holdings and
(2) business damages.
In October 2018, US
President Donald Trump publicly presented the truth that the US suffered
damages from the US Federal Reserve. Similarly to the United States, the damage
from the work of the respective CB affects the state.
The conclusion is: The
CB has no ability to operate without incurring incidental damage.
In order to escape
from collateral damage from the CB, the respective government now applies
absolute assurance of economic growth. This approach has the quality of a basic
mode of management. It creates wealth, but creates conditions for new
collateral damage from the CB. Unlimited contiguous damages from the CB
contribute to the emergence of economic crises. Governments are using loans to
protect the state from ruin. Confirmed: economic growth is not enough to save
unlimited concomitant damage from the work of the CB.
In the absence of a
successful counter-action against collateral damage from the CB, respectively,
the government is in an economic trap. The more the ministers work for economic
growth - the more they are the collateral damage from the CB. The Prime
Minister has a failed failure.
Example:Uninterrupted collateral damage from the European Central
Bank has ensured the political failure of German Chancellor Angela Merkel.
The constant increase
in collateral damage from the work of the CB proves admission of irregularity.
For the first time in the world, the basic way to manage a monetary system with
absolute economic growth was introduced at the initiative of John Law in 1716.
In his case, the fatal weakness is the lack of proper counter-treatment against
incidental damages by the CB. Preserving this wrong way has increased
incidental damages from the CB.
The salvation of human
civilization from a catastrophic crisis is achievable. It is vital for the
country concerned to act as a true counterparty against incidental damages by
the CB. This improvement in the monetary system is a global innovation. The
same creates the correct basic way of managing a monetary system with joint (1)
CBs, (2) stable economic growth and (3) a successful counter-performance
against collateral damage from CB operations.
The sustainable
prosperity of human civilization is only possible in the course of proper
protection against incidental damage from the work of the CB.
11.02.2019 Ivan Mitev
- economist
