Central Bankers & the “Blame the Victim” Playbook: Divide and Rule Economics
The global financial system rests on a dangerous illusion: that economic crises stem from reckless consumers, greedy corporations, or irresponsible governments but never from the policies of central banks themselves. Time and again, history reveals a recurring pattern: financial bubbles inflated through cheap money and suppressed interest rates ultimately burst, leaving devastation in their wake. Yet rather than accepting responsibility, the very architects of monetary instability shift blame onto the public and quietly consolidate even more power. This is the modern incarnation of the ancient imperial tactic of Divide and Rule applied through monetary policy.
Central banks have long manipulated economic cycles by suppressing interest rates and flooding markets with liquidity. This creates asset bubbles that distort the real economy, driving surges in housing prices, stock valuations, and speculative frenzies in crypto and meme stocks. When these bubbles pop, the narrative quickly turns accusatory. Individuals are told they borrowed too much or speculated irresponsibly, while the systemic conditions that encouraged risk-taking zero rates and easy credit are conveniently ignored. Workers, meanwhile, are blamed for rising wages as inflation erodes their purchasing power, despite the fact that it is central bank policy that fuels price instability in the first place.
This blame game is compounded by a striking double standard. When crises erupt, banks and large corporations receive immediate support in the form of bailouts, asset purchases, and backdoor liquidity injections. They are deemed “too big to fail.” Ordinary citizens, however, are left to absorb the shock. After the 2008 financial crisis, the Federal Reserve rushed to rescue Wall Street, but millions of Americans lost their homes to foreclosure. Citizens are told to tighten their belts and accept austerity, even as financial elites profit from the chaos.
Inflation, too, functions as a hidden tax on the poor and middle class. When central banks expand the money supply by trillions, the resulting devaluation of currency quietly steals from savers and wage earners. Yet the narrative rarely acknowledges the monetary root of the problem. Instead, inflation is blamed on supply chain disruptions, corporate greed, or wage demands even as real wages stagnate and the cost of living surges. The responsibility of central banks in creating these distortions is seldom discussed in the mainstream discourse.
To maintain control, central bankers and financial elites sow division among the public. They frame economic hardship as the fault of other groups, not failed policies. Workers are pitted against employers in fabricated fears of a wage-price spiral.Homeowners and renters are encouraged to blame each other for housing unaffordability, rather than the low interest policies that inflated real estate prices. The young are set against the old in pension debates, and savers are punished while reckless borrowing is rewarded. This manufactured conflict ensures the public fights among itself rather than questioning the systemic issues at the root of economic pain.
So who really benefits from this arrangement? Banks and financial institutions thrive in volatility, using crises as opportunities to consolidate wealth and influence. Governments mired in debt quietly benefit as inflation reduces the real value of their obligations. Asset owners those who hold real estate, stocks, and financial instruments watch their wealth multiply even as the broader public struggles. Meanwhile, the middle class shrinks, workers lose ground, and economic instability becomes the norm.
The solution begins with rejecting the scapegoating and recognizing that the root cause of many economic problems lies in unsound monetary policy, not individual greed or excess. The public must demand greater transparency and accountability from central banks, institutions that have operated in secrecy for far too long. Exploring decentralized alternatives such as Bitcoin, gold, or local currencies can reduce reliance on fiat systems controlled by unelected officials. Above all, there must be a push for a return to sound money: a disciplined, restrained approach to monetary policy that puts long-term stability ahead of short-term manipulation.