Summarizing The Challenges Facing The "Global Central Bank"

Tyler Durden's picture

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Quixotic_Not's picture

Let them eat cake ~ The Bernank

Mr Lennon Hendrix's picture

Let them eat ink and paper.

-B.S. Bernanke

Herd Redirection Committee's picture

Challenges?  I'd say these are the goals of the central banks, keep people dependent on the central banks, convince people central banks are necessary, central banks are good, and by the way, we only need one "Global Central Bank"! That would solve all our problems /sarcasm!

Check out the latest from the Capital Research Institute "Selling Gold You Don't Have":

"It Seemed Like  A Good Idea At The Time"

"It would be  wise to understand the repercussions of this debt not being paid back.  Those most affected will obviously be those who lent the most money to Greece, Italy, Spain, etc.  It turns out that the governments of Europe have been lending each other the money (that’s right, lending money they don’t have, to their also-broke neighbors, it would land a normal person in jail)!  And not only that, financial institutions across Europe have loaded up on the stuff (government debt).

So that means stay away from government debt and don’t touch bank stocks until after the dust has settled.  Last but not least, currency exchange rates will be affected.  So if you have large savings denominated in either US dollars or Euros it would be wise to reconsider that position.   It is tough to predict how exchange rates will change, because both the Euro and the US dollar will both be greatly devalued 2-3 years from now, but the timing, order and magnitude of the moves that will get them there are not knowable at this point in time.

Anecdotally, the CRI was started at the start of 2011.  At that time the price of gold was $1364/ounce, and today, even after a sharp decline in the last 24 hours, gold is at $1591.  Thats a 16% increase!  Or a 16% devaluation in the value/purchasing power of the US dollar,  if you look at it that way (as we at the CRI do)."

bearnanke's picture

God. And now suddenly half of the people around me know about, think about and worry about this stuff.. only a few months ago no-one cared..


This is scaring me more than anything to be frank...

Let's get it over with please...

I long for whatever shows up after 'the fact'.



Herd Redirection Committee's picture

LOL, I know, right.  It gives you some hope for humanity though, to see that people have become aware at an almost exponential rate.  After 9/11 very few could see it for what it was.  It was America's Reichstag fire.  A turning point used to justify everything that would follow.  War, deficit spending, currency devaluation, expansion of big government...

Quixotic_Not's picture

Remember, democracy never lasts long. It soon wastes, exhausts and murders itself. There never was a democracy yet that did not commit suicide! ~ John Adams

oldmanagain's picture

About half of the econ world is contracting, other half fighting inflation.  The later may draw money from the former  via higher interest rates.

The new historical wrinkle for the contractors is rising resource prices.  The Fed is trying to fight, but now the vote is to see who takes the hit.  Those that have assets or those who need help.  Welfare state or solyent green.

fishbum2's picture

This report orginates out of London, not NYC.

carbonmutant's picture

Euro could face its 'splat moment' as José Manuel Barroso breaks cover

Mr Barroso broke cover with an unusually stark warning that the existence of the euro is at stake at Thursday’s summit because of growing frustration at the top of the EU and IMF that national governments are dodging their responsibilities and endangering global economic stability.

“Leaders need to come to the table saying what they can do and what they want to do and what they will do. Not what they can't do and won't do. This is what I ask from them, he said on Wednesday.

Smiddywesson's picture

Utterly delusional:

Finally, it is worth emphasising that the ‘global central bank’ still has ammunition left, if needed. The Fed and the Bank of England could do another round of QE, the ECB could lower rates and purchase (more) bonds, and EM monetary authorities have room to cut policy rates: hardly an empty arsenal.

Did the last round of QE fix things or were things worse when the effects wore off?  If lowering rate would work then why didn't it work last time? 

No the arsenal is empty and they are out of ideas.

Edward Fiatski's picture

More QE... you want an uncontrolled breakdown of society in the medium-tern future?? :0 Start that world war already, kill off the unemployed, write off the debt, hang your creditors, introduce a cashless currency. Huzzah!

slewie the pi-rat's picture

Of course, this helpful reminder to the BOJ is precisely what will end up happening.

well, maybe so, but it is still really funny that christine lagarde & the imf are lecturing japan about deflation. 


gwar5's picture

The central banks all went to the Jim Jones school of economics and are committing fiat suicide together. They're joined at the hip with incestuous QE instead of DNA.