Bank of England

Scandal: Albert Edwards Alleges Central Banks Were Complicit In Robbing The Middle Classes

We apologize in advance for the NY Magazine-style headline, but this is a report that has to be read by all Senators who are preparing to reconfirm Bernanke for a second term. When voting for the Chairman, be aware that all of America will now look at you as the perpetrators who are encouraging the greatest inter and intra-generational theft to continue, and as prescribed by Newton 3rd law, sooner or later, an appropriate reaction will come from the very same middle class that you are seeking to doom into a state of perpetual penury and a declining standard of living.

America spoke in Massachusetts and will speak again very soon if you do not send the appropriate signal that you have heard its anger - Do Not Reconfirm Bernanke.

Another Gold Bull Emerges: Hermitage Capital, And The Fund's 2010 Predictions

Earlier we presented a very bearish piece on Emerging Markets from UBS. Now we present a somewhat opposite view from Hermitage Capital Management, which does not share quite the bearish sentiment on EM's but rather is very bullish on "frontier" markets: Kazakhstan, Saudi Arabia, Abu Dhabi, Lebanon and Nigeria. One interesting observation from Hermitage when asked which currency to own: "The answer is none of the developed market currencies...If the supply of fiat currencies is changeable at the whim of government policy, while the supply of gold or oil is fixed by the physical limitations on new production, which would you rather own as a store of value? The answer seems pretty clear to us. You want to own the commodities because they are insulated from the actions of vote-seeking politicians and their amenable central bankers who in our view will carry on in debasing their currencies." Can we get a Gold, B#@$&*s?

smartknowledgeu's picture

I hate bankers and so should you. Why? Because bankers steal a little bit of Christmas cheer every year. For the past several years, bankers have stolen a lot of Christmas cheer. Like the Grinch from Dr. Seuss’s famous children’s tale, How the Grinch Stole Christmas, bankers have hearts two sizes too small, and by means of burglary, they do their best to deprive everyone of Christmas every year.

Frontrunning: December 18

  • Skies darken for Ben Bernanke nomination (Politico)
  • Discord behind TARP payment (WSJ)
  • UK public sector net borrowing hits record high in November (BBC)
  • The Great stabilization: The recession was less calamitous than many feared. Its aftermath will be more dangerous than many expect (Economist)
  • Bank of England official says crisis shows U.K. bank exodus may be no bad thing (Bloomberg)
  • Obama loses lending lever as Citigroup, Wells Fargo repay TARP (Bloomberg)
smartknowledgeu's picture

Today there is still an unbelievable opportunity to invest in gold that will disappear over the next several years as this monetary crisis deepens. Despite the general widespread sentiment of Western financial advisers that they have missed the run-up in gold and now it is too late to buy, this is not true at all.

The Four Things That Keep Morgan Stanley's Teun Draaisma Up At Night

As Europe continues shouldering the burden of the devaluing dollar, courtesy of a Euro that just wont quit, even as the Eurozone is constantly putting out fires in its own backyard (Greece, Hypo, Latvia, ongoing downgrades), the optimism over European prospects is now more pervasive than ever. In a report titled "Key Surprises for 2010" Morgan Stanley's ever insightful Teun Draaisma has attempted to present the intangibles: the unquantifiable risks. As he points out "if there is a lesson the markets keep telling us, it is the persistence of uncertainty. Unlike risks, which are known and measurable, uncertainty is difficult to calibrate. We can never know the exact payoff distribution for any given investment." In order to conceptualize the 4 key areas of possible systematic impact, the strategist has provided 4 main scenarios he believes may shape equity returns over the coming year in a downside case.

Lunatics At Institute For International Economics Endorse $6 Trillion More In QE, Cite Fred "Iceman" Mishkin For Corroboration

The latest lunacy out of the Institute for International Economics notes that the dollar can and should go to negative territory courtesy of another roughly $6 trillion in Quantitative Easing. Enter Joseph Gagnon, who is obviously daring to boldly go where the Fed Chairman can only dream of going, and is set on ruining whatever is left of America's (and the world's) middle class.

Leo Kolivakis's picture

Graham Turner is an outsider. In his view, the Japanese experience offers a frightening glimpse into our future, with deflation, where the prices of assets such as houses and shares are locked into a downward spiral, becoming entrenched. If that happens, conventional policy measures, such as reducing interest rates and pushing through huge increases in government spending, can fail, as indeed they have in Japan.

What Came First: The Federal Reserve Or Economic Bubbles? A Brief History Of The Federal Reserve's Creation

A fantastic history of the reasons for, and the creation of, the Federal Reserve, courtesy of Murray Rothbard and our friends at Mises Institute, with the article originally appearing in Quarterly Journal of Austrian Economics, Vol. 2, No. 3 (Fall 1999), pp. 3–51. It is also reprinted in A History of Money and Banking in the United States and as a monograph. This is a must read for anyone who is curious why the Federal Reserve (with or without Goldman) is the sole organization responsible for not only perpetuating the interests of a select few of financial oligarchs, but in essence shaping monetary, fiscal, financial and political policy in the entire developed world. If after reading this, one is not convinced that the Fed screams a need for at least some supervision or accountability, one is likely a borderline-corrupt Senator who is on the payroll of Citi, Bank of America and/or Goldman Sachs (or, what may be worse, infinitely naive).

Bank Of England Preparing To Blow Bubble Of Unprecedented Proportions

In the latest attempt to prove that nobody ever learns anything from history, the Bank Of England is practically betting the Devonshire farm that by putting the UK's economy on nitrous, it will recapture all the lost output during the recession, and that it will be able to time the stimulus exit perfectly, thus avoiding hyperinflation, or so thinks Citigroup economist Michael Saunders. We are fairly confident that the Weimar Republic also did not have hyperinflation as a policy end goal. Saunders was quoted by Bloomberg, that “Policy has been set to produce a boom to close the output
gap in the next few years.”

Frontrunning: November 11

  • Goerge Soros: A new world architecture (Project Syndicate)
  • Under attack, Fed chief studies politics (NYT)
  • The real threat to Fed independence (WSJ)
  • Bank of England to keep the heroin IV drip: King says BOE has "open mind" on more bond purchases (Bloomberg)
  • Yet somehow, global confidence dips as policy makers begin exit strategies (Bloomberg)
  • Hypocrite (lecteur) Geithner yaps about strong dollar policy, glances nervously at gold ticker every 15 seconds (FT, Reuters)
  • Greatest trade ever: Paulson's $15 billion (Newsweek)

The Cost Of The 60% Market Move; The Benefits Of Free Liquidity

There is now no question that the sole, undisputed factor driving credit and equity markets is the dollar destructive collusion between the Fed and the major global central banks. As long as the Fed is dead set on inflation, and is willing to throw trillions of free liquidity at any problematic flare up, and is happy to keep interest rates at 0%, liquidity-addicted equities will likely push higher until such time that the incremental hopium "hit" does nothing, and markets overdose, ending up not just in the critical condition reminiscent of fall 2008, but outright death. Until then, expect to see your daily dose of market buoyancy from whatever algo is currently the dominant momentum platform gunning the market ever higher, even past all disconnect with traditional correlations such as FX, credit and commodities. If the Fed wills it, so it shall be. Alas,while the Bank of England was apparently an easy target, when it comes to massive financial fraud and malfeasance, the Fed is untouchable.