What Happened The Last Time Gold And Central Banks Were So Far Apart?

Tyler Durden's picture

From 9/11 on, Gold and the world's central bank balance sheets were as correlated as over-consumption and a hangover (and linked just as causally we suggest). Then a funny thing happened in 2008 - gold slid as the central banks went extreme. Of course, as this divergence occurred, the world's stock markets imploded almost as if the central banks knew their status quo was about to go entirely pear-shaped. From 2008 until November of 2011 (when the world's central banks began their coordinated ease-fest) the correlation went limit up once again. Since then, Gold and CB largesse once again decoupled as liquidity is flushed around the world's markets to suspend reality just a little longer. While this divergence is not as extreme as in 2008, something is afoot.



and now...


Charts: Bloomberg

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Quinvarius's picture

Warren Buffet thinks storing morphine in dead bodies will be applauded by aliens.

eddiebe's picture

Regardless of what charts show, there are paper bugs and there are gold bugs. If you have spare capital, and you want to be liquid, those are the choices.

mainuh1's picture

TShasHTF, the economy is so manipulated and QE'd it will take a while before the band-aids fly off and the REAL depression gets started. Then everyone will feel the pain and payback is a bitch!

johnlaw1971's picture

Favourite Gold quotes:


"In the absence of the gold standard, there is no way to protect
savings from confiscation through inflation. ... This is the shabby
secret of the welfare statists' tirades against gold. Deficit spending
is simply a scheme for the confiscation of wealth. Gold stands in the
way of this insidious process. It stands as a protector of property
rights. If one grasps this, one has no difficulty in understanding the
statists' antagonism toward the gold standard."

Alan Greenspan 1966 

"You have to choose [as a voter] between trusting to the natural stability of gold and the natural stability and intelligence of the members of the government. And with due respect to these gentlemen, I advise you, as long as the capitalist system lasts, to vote for gold."
George Bernard Shaw

"Gold is not necessary. I have no interest in gold. We'll build a solid state, without an ounce of gold behind it. Anyone who sells above the set prices, let him be marched off to a concentration. That's the bastion of money."
Adolf Hitler

"Although gold and silver are not by nature money, money is by nature gold and silver."
Karl Marx

"Buying gold is just buying a put against the idiocy of the political cycle. It's That Simple"
Kyle Bass 

"Because gold is honest money, it is disliked by dishonest men."
Ron Paul (American Presidential Candidate)

“…the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.”
Ben Bernanke

Darth Mul's picture

Just central banks building the ramp on which America will don it's coolest leather jacket and jump the shark:  the long-planned central banker/Likud-Zionist/neocon war on Iran.



I don't think our military is going to 'wake up' - it doesn't seem as if the SEALS get that it was the CIA that shot down that helicopter with their brothers aboard a short time after "bin Laden" was dumped in the sea.


I wish every SEAL and Ranger and GB and DF would read about WTC7 and then closely watch the footage of Ehud Barak being interviewed on BBC.  


The military needs, or would need an 'excuse' to arrest members of the clandestine services.  One way would be arresting Ehud Barak and Dick Cheney and 'making them talk.'


If Christ returned to earth and offered me Australia, I'd be less shocked than I am by the fact Americans aren't in the streets about WTC7...


But then many of our more inquisitive/paranoid minds turn to Alex Jones, whose sponsors have made it clear to him to never link 9/11 to the Israelis... which means all he's doing is working to keep people away from making the correct, and frankly obvious connections.



I see so little hope. That a relatively tiny number of arrogant, stupid men can repeatedly cook up useless wars for profit, that we are sliding into a post-Constitutional fascist war empire...


Ron Paul was the last political chance available.  I wish the gun nuts and "patriots" would stop their chatter and really, really understand that.







Vooter's picture

"If Christ returned to earth and offered me Australia, I'd be less shocked than I am by the fact Americans aren't in the streets about WTC7..."

You're shocked by this? LOL...what do you think the last 60 years of TV, sugar and booze have been all about?

Lord Of Finance's picture

When will gold catch up?


    Whenever the bond market catches up to the fed. But I am increasingly getting the feeling that we are becoming Japan. Late 2013-early 2014 should be time for the bond market to blow. If it does not, then I will just do something that i have been contemplating for several years now, and that is learning another language. I hope by mid 2014 I wil not be having to google: Rosetta stone/Japanese.

  Screw it! I'll just get me a Japanese mail order bride mistress instead.