A Change in Tone Amongst Central Bank Language Forewarns an End to the "Good Times"

Phoenix Capital Research's picture



As we’ve noted in recent articles, the US Federal Reserve has blown another bubble in stocks and facilitating the exact same risk-taking behavior that brought about the 2008.


The Fed realizing that it’s done this, which is why it’s now trying to manage down expectations of future stimulus (see the multiple suggestions from Fed officials that the Fed might reduce QE before hitting its unemployment target).


The Fed is not the only Central Bank to have shifted tone.


Chinese authorities took a step to ease potential inflationary pressures Tuesday by using a key mechanism for the first time in eight months.


The move by the central bank to withdraw cash from the banking system is a reversal after months of pumping cash in. That cash flood was meant to reduce borrowing costs for businesses as the economy slowed last year—but recent data has shown growth picking up, along with the main determinants of inflation: housing and food prices.


The People's Bank of China used a liquidity-draining tool in the interbank market that enables the central bank to borrow money from commercial lenders. It withdrew 30 billion yuan ($4.81 billion) by offering 28-day repurchase agreements, alternatively known as repos. The PBOC hadn't offered repos since June.


"The central bank is trying to send a message that it will not tolerate too-easy liquidity conditions," Dariusz Kowalczyk, a senior economist at Crédit Agricole, ACA.FR +0.99% wrote in a research note.




Investors are ignoring this story for the most part. This doesn’t bode well for the economy as China was the alleged growth story that pulled the world out of recession in 2009. China did this via a massive stimulus program equal to nearly 20% of GDP (not to mention a massive expansion of its banking system).


So if China is curbing its stimulus, the rest of the world will soon feel the impact.


Another Central Bank that has failed to engage in more monetary stimulus is the Central Bank of Japan. Despite, recently re-elected Prime Minister Shinzo Abe has been talking down the Yen and urging the Bank of Japan to act aggressively to raise the stock market and Japanese economy, the Bank of Japan didn’t announce any new QE or stimulus in its latest meeting.


The significance of this is tremendous. Besides the Fed, the Bank of Japan is one of the most profligate money printers in the globe. For the Bank of Japan to NOT announce any new QE despite extreme pressure from Japan’s prime minister is yet another warning that something major has changed in the financial system. 


With that in mind, smart investors are taking advantage of the lull in the markets to position themselves for what’s coming.


We offer several FREE Special Reports designed to help them do this. They include:


Preparing Your Portfolio For Obama’s Economic Nightmare


What Europe’s Crisis Means For You and Your Savings


How to Protect Yourself From Inflation


And last but not least…


Bullion 101: Everything You Need to Know About Investing in Gold and Silver Bullion…


You can pick up FREE copies of all of the above at:






Phoenix Capital Research





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divide_by_zero's picture

Funniest thread comments of all time, kudos

HalinCA's picture



Bulls to the fore!


bigkahuna's picture

Stop the music and start the dance.

newengland's picture

I'm going to repeat my comment made on George Washington's blog posted on ZH:


Your point of view depends on where you are standing. Choose friends carefully. On this point of banks, I believe in this:


  • The BIS
  • Anna Schwartz
  • No more easy money, and no more something for nothing two faced lying thieving political class, and bureaucrats.
  • Pay up or shut up - and that goes for you too JPMorgue. One law. Jail 'em. Don't bail 'em. Dimon is a gangsta banksta...no different than Corzine.

The new kids on the block like Greenspan, Bernanke and their media shill Krugman have had their time, and failed.

Enough, already.

But a PS

Trust good gold and silver man James Sinclair. I do, and do well because of it...as time goes by. Pity some people are no better than TV reality slut Kardashians, strippers for money.


Slightly Insane's picture


I would rate your comments at 100 pts.  You sir GOT IT.  May the good force be with you, Semper Fidelus, amen.

Lordflin's picture

Will the printing stop... who the hell knows? It depends on the endgame plan... there are numerous possibilities from an immediate confiscation of muppet wealth (how many have truly been lured back into the water?)... war with the Russians and Chinese... bullion banks jumping on the long side of metals... implosion of the economy and martial law... really, I think you folks are as capable of speculation as I am.

On the other hand... what is said or not said by CBs in the public forum is of little consequence. And there is nothing that can be said that will cause me to part with metal...

Room 101's picture

Gad these articles are bad.  Take something that was talked about at ZH a week ago, repackage it and post it with links to some investment company.  I guess at marketwatch  this would be considered cutting edge, provocative stuff.  But here at ZH it's lame squared.  

I keep reading on the hope that someday, somehow something new and provocative would be posted.  I guess today is not the day.

Fuck you bernanke.

The Heart's picture

"I keep reading on the hope that someday, somehow something new and provocative would be posted."

All great trees begin as a seed. All great deeds are from seeds of thought manifest by the right hand of Man.

Posted this on another thread and as it is related to your quest, here it is again just in case it does not really matter anyways.


Blessings of Old America to all. Here, the Eagles still hunt fish on the river. The deer play. In Old America, the beauty of what it was, is actually still alive and today this beauty is being sent to you all for the outstanding works you are all doing. A mighty hearted big pat on the backsides of those who can make a difference, and will do so when the time comes.

Here on ZH is this great collection of minds and hearts. We see the finest of intelligent commentary, the greatest of thinkers and market-wise intelligencia. The great part of this picture is everybody knows WHO, and what most of the mechanisms of empire have manifested that are faulting and destabilizing the entire enchilada. Wowie, even a star struck kid has to marvel at it all, even in it’s slow motion fall.

So what to do?

Many people are angry. No more than Mr. John Stadtmiller in this repeat show from January, who using his abilities on the daily radio that he barely keeps on the air, is doing his best to reveal the truth to people. If he had major money support behind him, only one deep pocketed person to help him, these messages could get out to the nation, and it could be possible to steer the ship away from the iceberg it is fast headed towards. At this point in time, it is not too late to stop the insanity that is looming outside the nations perimeter, like comet ISON is coming from the other side of the Sun.

Sure, that major emotion of anger that comes up first from the deep place of fear is resoundingly getting louder and louder. Recognize that. How to turn the fear into the true Light of Truth and real Justice is that right every soul on deck has. With all the ZH’ers gathered here, it could well be the greatest think tank in the world. Much honor and respect to you all. Thank you for many great and powerful additions to the whole moving picture. If there is a future, this site and it’s archives will offer the intellectual of the future many hours of historic spine tingling revelations that are being created as fast as they can be written.

Imagine if you will, all the great thinkers here gathering into this circling of the wagons to brainstorm about what actual solutions could be implemented RIGHT NOW to possibly stave off the coming babalonic hell planed to conquer the last free country, or sorta free…er…never mind. What can actually be done to stop the insane course of certain destruction the world is facing? Can it be done? And what if maybe some of those supposed leaders that are not on the pay roll…er…well…never mind. Maybe one or more of those souls that COULD make a difference actually used some of the ideas and suggestions brought forth, and really did something to stop the destruction of all biological life forms on the planet. Oh, the humanity?

To expound on that; what if say some large object in the coming future COULD MAYBE threaten life, all life on the planet as we know it. Would it be better to face it with all hands on deck, or no? WHAT IF, certain elements within walls of secrecy had this knowledge and did everything they could to destroy and destabilize the planets people for their sakes of profits, but maybe also so when these potential celestial events begin, the world’s people will not lets say, freak out, or go zombie on those who are presumed to be responsible for the impending catastrophe. Maybe the plan is that the world’s people just be non-existent before these greater universal things happen in this matrix. Maybe even before a planed market crash.

Could it all be different? You betcha. Knowledge is power. In the ancient days of earlier times of this epoch, those who attended Watchman’s Temple of Awareness University learned in Prophets Class 101, that it was their job to tell the people what could happen simply by observing the signs. It was up to the people to actually change the forecast, or not. This was a time when telling the truth was far more virtuous, than lying and deceiving the mass mind to gain from the secrets that are meant for all.

So let this challenge go out world-wide. Can all the wagons here gather to brainstorm answers that maybe the matrix might cease upon to really cause some real changes for the better of all? Is it possible to see the glass is half full, and not half empty? There is great knowledge here. May this Heart invite you all to share it for posterity purposes. Maybe a pre-emptive Solutions Thread is in order Sir Tyler?



Slightly Insane's picture

If you understand programming (old school), We are in a DO LOOP.  We may get out of the do loop upon crash of the machine.  Every new line of code that the statists produce takes us deeper down the rabbet hole.  The crash is inevitable, and must happen.  What the Government and the Fed is trying to sell is that 2 = pick a number other then 2.  They do not understand that there are laws (of nature - physics, chemistry) that cannot be changed ... they can only be discovered.  They beleive that if you repeat the lie long enough ... that it becomes truth.  A turd by any other name is still a turd.  Anything other than the truth is a lie (or a misrepresentation).

It all depends on the strength of the machine .... to weather the same bullcrap story line day in and day out .... sooner (or later) even the idiots wake up.

Zero-risk bias's picture

Up vote for 'lame-squared'. Preordering an engraving on my tombstone, or maybe on my ipod, not sure yet.

Maybe my ipod could just be my tombstone? Yes!

Poor Grogman's picture

This poker machine hasn't paid out for over four years therefore it must pay out if I spend another 20 on it....

What part of "the casino is rigged" is hard to understand?

Any play that gets investors in, is a winner for the house eventually, it just takes some time to get as many sheeple in as possible

ebworthen's picture


They might QE forever, but if they have re-ramped enough Pension and Retiree cash trapped in the casino, they may let the bubble pop and have a re-do of 2008.  Who won in 2008? 

The banks, insurers, and corporations of course.

So why blow a bubble if you aren't going to pop it and steal some more assets?

Another crisis a great opportunity for more bigger government too.

WhiteNight123129's picture

MOst profligate printer? Japan? Do you know what was the compound increase in teh monetary base of Japan from 1992 until Fukushima?

About 5%, and it shrunk its monetary base from 2005 until 2011 BTW.

Also most of the debt was financed by deposits until recently unlike the US which after 2008 did not borrow that much since most of the debt ended up on the FEd[s balance sheet, which is not borrowing because it will be roll-over indefinitely. So US was really money printing base money.

Check you stats on Japan monetary base.


Bendromeda Strain's picture

Doesn't Japan measure their sovereign debt in quadrillions?

nofluer's picture

Who wrote this crap? Oh... Phonics Capital. I stopped reading when I got to the part about

China was the alleged growth story that pulled the world out of recession in 2009.

Ummmm, gosh. I hate to be the bad news guy, but the "recession" didn't end in 2009.

TheFourthStooge-ing's picture


Who wrote this crap? Oh... Phonics Capital.

Hooked On Monkey Phonics Capital.

Ummmm, gosh. I hate to be the bad news guy, but the "recession" didn't end in 2009.

Their monkey must have arrived dead, or else they'd have known this.

Madcow's picture

The central bankers are trying to explain that they're done "lending money" to goveremnts. But no one is willing to listen.  The USD is rocketing higher as gold collpases.  Clearly, the FED has "pulled the plug" on the terminal patient that WAS the US economy.  

Hyper-Deflation it is. 

Eventually. a crisp $100 bill will buy all the real estate in Manhattan. 

akak's picture


The USD is rocketing higher as gold collpases ... Hyper-Deflation it is.

Bovine Spongiform Encephalopathy: such a sad, sad disease.

Naively and/or ignorantly following the perverted tune of the flat-earth deflationary Pied Pipers, like a cow's trip through the stockyards, will only inevitably lead one to the slaughterhouse of currency depreciation and collapse.

TheFourthStooge-ing's picture

The USD is rocketing higher, hurtling ever upward in its ascent to the depths of Fiat Hell.

Meanwhile, the gold death spiral has accelerated, approaching free fall speed toward $2000 and higher.

nofluer's picture

Gold collapses?

At 15:40 EST it's down a whole .0022. (Or if you like the percent sign in there - 0.22%.) Gosh... That's really scarey! (/sarc)

I'm pretty sure we can survive such magnitudes of collapse without undue pain...

semperfi's picture

"A Change in Tone Amongst Central Bank Language Forewarns an End to the Good Times"

So Graham, you are assuming Bankers are honest?  Hmmm?

Do you also believe the president is honest? 

Do you believe in unicorns?  green men from mars?  global warming drawing asteroids towards earth?  170 million now unemployed from the sequester?

Jack Sheet's picture

This "news" is as stale as a pole dancer's shorts at 3 am on a Saturday.

Tinky's picture

At the risk of being pedantic, the pole dancer's shorts wouldn't technically be stale until 3:00 pm on Sunday. At 3:00 am on Saturday, they would be very ripe.

WTFUD's picture

Despite O'bummers Sequestration scare i freshen my panties and sequins every other hour depending on how aroused i get. I find that a fresh pair of panties enhances my performance and is in keeping with hygience code GETTHEMOFF C12 where SEC inspectors reserve on the spot ( wet patch ) checks on a daily basis.

Ms Tittyfuchs

Jack Sheet's picture

Thx ! you're right, of course, could even be a bit of both.


digitlman's picture

GS's main act: puke up old news as new; sell as new.

Fuck off GS.

KidHorn's picture

The central banks are going to stop printing. They mean it this time. I swear they'll stop printing.

If you make the same prediction over and over eventually you'll be right.

Buck Johnson's picture

They won't stop, they are jawboning the market and hope it stops the bubble but it won't.  If they stop the pumping or reduce it it will stop the up movement of the market and have it go negative.

DavidC's picture

Did you think they'd be desparate enough to pull all the tricks they have done over the last four years? I didn't.


Element's picture

You'd never have thought pushing on a ZIRP string could play out so long, but it's just that indirect and then direct monetizing can go on for longer then anyone expects. As past examples have showed it takes forever for the crisis to come, but then it comes on so much faster than anyone ever expects.

lasvegaspersona's picture

The world's CBs will stop printing when to cost of 1s and zeros gets too high....no fiat has ever failed because of deflation...it is simply against nature and all that is holy.

centerline's picture

Attempting to avoid it leads to catestrophic failure - and war.  Nation killing sort of pain.

lasvegaspersona's picture

Deflation is what OUGHT to happen...it is never allowed to happen if there are options. In a gold standard you run out of options....with fiat the option is PRINT and they always have. That is true nature, taking the easy way out.

Winston of Oceania's picture

Sorry but deflation is the natural course of events, intervention to gain an advantage while predictable is not the natural course of events. I do however understand what you are saying...