Nomi Prins reveals how central bankers reshaped the global economy in “Collusion”

• After the financial collapse, central bankers like Bernanke (U.S.), Draghi (ECB) and Kuroda (Japan) led a global effort using “quantitative easing” (QE) massive liquidity injections.
• Nomi Prins reveals that QE was a “coordinated global strategy,” benefiting financial markets and corporations while leaving the real economy behind, widening inequality and stagnating wages.
• Emerging markets like Mexico and Brazil faced instability due to Fed policies, while Japan’s aggressive QE under “Abenomics” boosted exports but raised living costs and debt.
• China leveraged the crisis to challenge U.S. dominance, with the yuan’s 2016 IMF inclusion marking a shift in the global monetary order and intensifying U.S.-China tensions.
• Prins warns that prolonged QE has created asset bubbles and a reliance on cheap money, leaving the world vulnerable to a future crisis with fewer tools to respond.

In the wake of the 2008 financial crisis, a quiet but seismic shift occurred in the global economy. Central bankers, often seen as technocratic figures operating in the shadows, took center stage in a coordinated effort to stabilize a teetering financial system. Their tool of choice is quantitative easing (QE) – a massive injection of cheap money into the global economy.

But as Nomi Prins reveals in her groundbreaking book, “Collusion: How Central Bankers Rigged the World,” this was no ordinary policy response. It was a carefully orchestrated, global effort that reshaped the world economy – often at the expense of ordinary citizens.

Prins, a former Wall Street insider turned investigative journalist, pulls back the curtain on the collusion among central bankers, exposing how their actions have propped up financial markets while leaving the real economy – and the majority of people – behind. Through meticulous research and sharp analysis, she uncovers the hidden alliances, power struggles and unintended consequences of this unprecedented monetary experiment. The result is a gripping narrative that reads like a geopolitical thriller yet is firmly rooted in the realities of global finance.

The story begins with the 2008 financial crisis, a catastrophe that exposed the fragility of the global financial system. In response, central bankers from the world’s largest economies embarked on a coordinated effort to prevent total collapse. At the helm were figures like Ben Bernanke and Janet Yellen of the U.S. Federal Reserve, Mario Draghi of the European Central Bank and Haruhiko Kuroda of the Bank of Japan. Together, they unleashed trillions of dollars in liquidity through QE, a policy that involved purchasing government bonds and other assets to lower interest rates and stimulate borrowing.

But as Prins explains, this was not merely a series of independent actions. It was a global collusion, a tacit agreement among central bankers to flood the financial system with cheap money. “This wasn’t just about saving their own economies,” Prins writes. “It was about maintaining the stability of the entire global financial system.” The goal was to prevent another Great Depression, but the consequences were far-reaching and often devastating.

While QE succeeded in stabilizing financial markets, its benefits were unevenly distributed. Banks and corporations reaped the rewards, with stock markets soaring to record highs. Meanwhile, wages stagnated, inequality widened and the seeds of future crises were sown. “The real economy was left behind,” Prins notes. “While Wall Street celebrated, Main Street struggled.”

The effects of this collusion were felt across the globe. In Mexico, central bankers faced a dilemma: follow the Fed’s lead and risk economic instability, or chart their own course and risk isolation. In Brazil, the country became a battleground in the global struggle for supremacy between the United States and China. As the Fed’s policies sent shockwaves through emerging markets, Brazil grappled with the challenges of attracting foreign capital while maintaining economic stability.

Japan’s experience with QE was equally fraught. Under Prime Minister Shinzo Abe’s economic strategy, known as Abenomics, the Bank of Japan implemented the most aggressive QE program in history. Yet, as Prins points out, the results were mixed. While the yen depreciated, boosting exports, Japanese households faced higher costs of living and the country’s debt burden grew.

Amid this turmoil, China emerged as a formidable player on the world stage. Under the leadership of Xi Jinping and central bank governor Zhou Xiaochuan, China used the financial crisis to its advantage, forging new alliances and challenging the dominance of the U.S. dollar. The inclusion of the yuan in the International Monetary Fund’s (IMF) special drawing rights basket in 2016 was a watershed moment, signaling a shift in the global monetary system.

Prins highlights how China’s rise has complicated the dynamics of central bank collusion. “China is no longer just a participant in the global economy,” she writes. “It is a challenger to the existing order.” This has created new tensions, particularly as the U.S. and China vie for economic and geopolitical influence.

As Prins warns, the collusion among central bankers has created a fragile financial system, one that relies on constant infusions of cheap money to survive. But this artificial stimulus comes with risks: asset bubbles, market distortions and the potential for a catastrophic collapse. “The question is not if, but when the next crisis will occur,” Prins writes. “And when it does, the tools that central bankers used to fight the last crisis may no longer be effective.”

Watch the video below to learn more about how central bankers rigged the world.

This video is from the BrightLearn channel on Brighteon.com.

Sources include:

Brighteon.ai

Brighteon.com