The Illusionists

Touted as the number 1 best selling and largest touring show in the world, “The Illusionists: Witness The Impossible,” hit the road in January 2012 and has been performing to sell-out audiences from Sydney to Mexico City and is currently doing its magic around the UK, Mark Carney’s new stomping ground.

Described as, “the most important live magic show currently touring the world,” with, “seven of the most incredible illusionists on earth, who enact mind-bending acts of magic and illusion, many of which have never been seen before.” It makes a bold statement.

There are, however, seven other illusionists who play to far larger audiences and appear to offer new tricks, albeit that they are usually the same old “con-tricks” dressed up in new labels.

These are, of course, the World’s most important of Central Bankers’, those of the G7 economies.

Post the 2007 financial crisis they have been elevated to rock-star celebrity status thanks to a combination of their perceived wizardry, such as, “the ability to provide free-money; re-flating economic growth whilst keeping interest rates at near zero for ever and a day.”

Unfortunately for the G7 illusionists, their tricks are not working. The addition to global economic growth, despite $20 Trillion or there about of free-money, has been modest at best, whilst inflation, outside of certain financial markets, has been trending lower and those pesky markets have been driving longer term interest rates higher, despite the soothing words of the maestros’.

Furthermore, they have managed to impoverish a generation of savers, through the confiscation of income from safe deposits and the encouragement of speculation into corporate bonds, stocks and/or into buy-to-let real estate.

The audiences are starting to see through the tricks and realising that it’s the market that sets interest rates, not the illusionists. Those newly purchased bonds are falling in value, as interest rates soar, which are now hurting stock values and in time will hammer real estate prices.

Dis-illusion is a tricky area as it tends to ferment anger and confusion, none more so than in the area of financial wellbeing. The blame-game following the 2007 crisis took a while to develop and to date policy-makers and the G7 illusionists have maintained a united front, but this may be about to change.

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