Central Banks

Where Deflation Comes From

Attempting to boost inflation, or boost demand, before letting the debt deflation run its course through restructuring and defaults leads only to 'further' distortion, and 'further' impoverishes society’s poorer (at some point to a large extent the former middle classes) whose lower spending, as nary a soul seems to comprehend, is the origin of the deflation to begin with.

"What Goes Up Can Also Come Down"

Our governments and central banks have created a financial  environment where traditional savers receive little to no interest on their cash deposits, and an economic environment whereby sophisticated investors are slowly withdrawing investment. This combination is creating deflationary trends around the world, and it is causing the Velocity of Money to plummet. Ironically, this central-bank induced economic combination, is causing central banks and governments to do even more of the same. Insanity at its best.

What Markets Are Telling Us

There are many Wall Street cheerleaders who are trying to say that this is just a technical correction, that the bottom is near, and that everything will be getting better soon. They are ignoring the real message the markets are trying to send: you cannot print your way to prosperity.

Finally, China’s Alan Greenspan Speaks Out

Finally, China’s Alan Greenspan, Mr. Zhou Xiaochuan speaks out in an interview with Caixin Magzine.  The market has been waiting for his comment on Yuan since the RMB exchange rate reform in Aug 2015.  However, he has been hiding and did not “give a clear message” as asked by IMF chief Lagarde.  Just before the lunar new year holiday, even the Chinese local media started to ask him to show up, which is really unusual in China.  And last Friday, Caixin published its 12000 words interview with Mr. Zhou Xiaochuan.  This is the most important interview for China’s economy and Yuan in 2016. 

Deranged Central Bankers Are Blowing Up The World

The fiat currency system, fractional reserve banking fraud, insane Keynesian fiscal policies, and consumer debt based consumption economy are mathematically unsustainable, so they won’t be sustained. The world is about to sit down to a banquet of consequences, served by deranged central bankers.

Goldman Tells Clients To Short Gold 5 Days After Saying Gold May Soar "Much Higher Over Time"

"Bottom line, although 1,200-1,202 might hold in the near-term, there’s scope to extend much higher over time." - Goldman Sachs, Feb 10, 2016

"As we maintain our view of rising US rates and hence lower gold prices with a 3-month target of $1100/toz and 12-month target of $1000/toz, we are recommending shorting gold through a GSCI-style rolling index" - Goldman Sachs, Feb 15, 2016

GoldCore's picture

Volatility, loss of confidence and central bank impotence stalk the capital markets. Gold pulls back in an expected retrenchment. Equity markets are still digesting what the world looks like. Absence of a strong Chinese domestic economy. A developing economy losing its easy credit. Oil prices adjusting to demand levels indicative of economic activity and, most tragically, the continuing proxy wars fought in the middle east as warmongers continue to slaughter innocent civilians.

Mario Draghi Speaks In Brussels, Says ECB "Won't Hesitate To Act" As World Falls Apart

Mario Draghi is set to address the European Parliament's Committee on Monetary and Economic affairs in Brussels on Monday. Draghi's comments will of course be parsed for any hints as to what the ECB will do next month, when Draghi is expected to announce further easing, either in the form of another rate cut or an expansion/extension of PSPP.

SocGen: "The Market, Today, Is Clearly Hoping The Authorities Will Step In"

"With the introduction of negative rates and the subsequent rise in the Yen, are the Japanese authorities, once again, about to snatch defeat from the jaws of victory, as has happened so many times in the past? The market, today, is clearly hoping the authorities will step in.... whilst QE typically pushed investors out of bonds into riskier assets, negative interest rates could potentially do the exact opposite. "

Global Stocks Soar On Stimulus Hopes After Miserable Chinese, Japanese Data; Short Squeeze

"The Chinese market didn’t react as bad as we feared and with the weak export data there is some big hope that he central banks will react quite fast," John Plassard, senior equity-sales trader at Mirabaud Securities LLP in Geneva, told Bloomberg. "It’s a mix of hope of intervention from the Asian central bank, short squeeze and also a relief in some energy and banking sectors, the most shorted sectors." And there are your catalysts for today's surge: hope of more central bank intervention and a global short squeeze.

When Trust Is Bust - All The Charts You Can Eat

The greatest disappointment has to be the meager results emanating out of the massive and unprecedented easing around the globe. There is now little confidence in even the drastic measures that have been undertaken by central banks.