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Jeff Gundlach: "We Are Drowning In Central Banking"

Tyler Durden's picture


Last week, Bill Gross did not mince his words when he said that he now "sees bubbles everywhere" and that "when that stops there will be repercussions" but for now Benny and the Inkjets, not to mention his band of merry statist men, who take from the poor and give to the wealthy, are playing the music on Max, and so one must dance and dance and dance. And after one legacy bond king, it was the turn of that other, ascendant one - Jeff Gundlach - to share his perspectives Bernanke's amazing bubble machine. His response, to nobody's surprise: "there is a bubble in central banking. We are drowning in central banking and quantitative easing.... And it's not ending until there are some negative consequences."

What are those negative consequences? This too should be perfectly expected for regular readers: currency devaluation leads to trade wars (as either is a zero sum game, and in a zero sum game it is very easy to blame someone else for one nation's suffering and economic malaise), trade wars lead to real wars (see the 1930s), and so on.  We are not there just yet: quote Gundlach "With global growth slowing not everyone can increase their imports [indeed: observe just how it was that Spain managed to post its first "trade surplus" since 1971 - hint: not by boosting exports] you're playing a market share game." But it is rapidly approaching: "We are looking at competitive currency devaluations, which causes rancor, causes unhappiness, and fingerpointing and god-forbid tariffs and things that cause even slower economic growth a la the 1930s." Good choice of words, considering it was just a week ago that none other than stagnating metals magnate Lakshmi Mittal, head of ArcelorMittal, who was urging Europe to just go ahead already and declare trade on China asap. For his own selfish reasons of course.


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Sun, 05/19/2013 - 13:16 | 3577972 DaddyO
DaddyO's picture

Control, bitchez!


Sun, 05/19/2013 - 13:39 | 3577999 freewolf7
freewolf7's picture

"there is a bubble in central banking. We are drowning in central banking and quantitative easing.... And it's not ending until there are some negative consequences."

I know I'll get junked, but is this news?
Preaching on a slow Sunday to the choir?

Sun, 05/19/2013 - 13:47 | 3578011 Mark Carney
Mark Carney's picture

OT: If you think about the price of silver, Judas betrayed Jesus for 30 pieces of silver (1 Troy ounce = piece).  It is noted that 30 piece was equivalent to 3 months wage, so in todays terms 3 month wages is equal to $10,000.  $10,000/30= $333/ounce.


Do you people believe that Judas would have betrayed Jesus for only $24/ounce or $333/ounce.

Sun, 05/19/2013 - 13:51 | 3578014 SafelyGraze
SafelyGraze's picture

sorry to go off topic, but whatever happened to paul krugman?

Sun, 05/19/2013 - 14:01 | 3578030 Zer0head
Zer0head's picture

here's the barrons gold article making the rounds

This Time, Gold Bugs May Have a Point Illogical dumping raises questions about causes of the metal's sharp decline.

Sun, 05/19/2013 - 15:02 | 3578118 King_of_simpletons
King_of_simpletons's picture

The beauty of Co-ordinated Central Bank QE world wide is that nothing will happen. No negative consequence will be faced by one party in particular since each currency woe is compared to the other. There is no absolute measure. Yeah some may say there is physical Gold, but that is a manipulated, low liqudity market. 

Sun, 05/19/2013 - 15:14 | 3578143 gmrpeabody
gmrpeabody's picture

"I know I'll get junked, but is this news?
Preaching on a slow Sunday to the choir?"

I did not junk you for voicing an opinion..., but if you are already in the known, why not save your time and move on? Otherwise, ZH is the only place where many of us can read the views of successful investors that are not under the employ of TPTB or CNBC. This is one of our very few choices, and a lot of us appreciate getting their views even on slow Sundays, no matter that these same views were posted earlier in the week, month, day, whatever.

Sun, 05/19/2013 - 15:33 | 3578179 freewolf7
freewolf7's picture

Thank you.

Sun, 05/19/2013 - 14:01 | 3578032 fonzannoon
fonzannoon's picture

maybe truthinsunshine kidnapped him.

Sun, 05/19/2013 - 14:13 | 3578051 Yen Cross
Yen Cross's picture

  lol :-)  Where's, 'Long Soup Line'?  I miss his epic rants.

Sun, 05/19/2013 - 14:19 | 3578056 fonzannoon
fonzannoon's picture

Yen by the time this gets where everyone thinks it's going I bet there are only very few of us still around on here.

The last thing I remember TIS talking about was how the market would tank to start the year. I wonder how many people made all in bets and lost their ass. No disrespect to TIS. He, unlike me, could just have a life. But I sometimes see people disappear after discussing a market call.

Sun, 05/19/2013 - 14:32 | 3578063 Yen Cross
Yen Cross's picture

      I've noticed a lot of new avatars on (Z/H) over the last 24 hours Fonz. ;-)  

   I think the strong $ is going to be the 'Red Herring', that takes us down. You can't have your cake and eat it to, without consequences. I realize the Fed. likes the $ strong in a printfest world. (commodities are priced in $)

  Something is going to snap, and it's going to be ugly!

   *no hard feelings TIS

Sun, 05/19/2013 - 14:33 | 3578067 fonzannoon
fonzannoon's picture

Ekm says this week. I don't know that we get the big one, but everythig is wound so tight right now I think a cable snaps this week.

Sun, 05/19/2013 - 14:39 | 3578079 Yen Cross
Yen Cross's picture

    I stocked up on Popcorn and Koolaid this morning Fonz. (I bought a few cases of beer as well)(for bartering purposes)

   EKM has lived it. He knows.



Sun, 05/19/2013 - 14:59 | 3578115 reload
reload's picture

I listen to what EKM has been saying extremely carefuly. For me the big event which could just grind the world to a screeching halt is a ME conflict resulting in closure of the Straits of Hormuz. Supply lines in Europe would be broken in days then chaos / martial lawn / extended bank hollidays are all a given.

Cameron has been in the US allegedly discussing a European / US trade agreement. No reportage here in the UK about any details - no gurning press shots, almost a black out. Meanwhile we have a frenzy on the media about, will we, should we, could we, must we? hold a refferendum on our membership of the EU......IN 2017 ....2017.

If its a distraction it has worked perfectly, meanwhile Isreal is limbering up for a scrap with a neighbour. Wont be long now. 

Sun, 05/19/2013 - 15:09 | 3578134 Yen Cross
Yen Cross's picture

    I agree with your comment. EKM is hyper-sensitive from first hand experience. I respect his thoughts, knowing full well SHTF moment is coming. I'm not sure what the delivery vehicle will be, but it's coming.

   I can nit-pik EKMs thesis, but the end result is the same...

Sun, 05/19/2013 - 15:12 | 3578140 fonzannoon
fonzannoon's picture

"I can nit-pik EKMs thesis, but the end result is the same..."

Exactly Yen.

I have nitpicked his thesis forever now....and yet my end result is the same.


Sun, 05/19/2013 - 15:15 | 3578146 Yen Cross
Yen Cross's picture

 +1 Fonz

Sun, 05/19/2013 - 14:32 | 3578064 Meat Hammer
Meat Hammer's picture

InTheMix96 has done a nice job filling in for LSL.  His usage of "cunt" is exemplary.  

Sun, 05/19/2013 - 14:34 | 3578069 fonzannoon
fonzannoon's picture


Sun, 05/19/2013 - 14:35 | 3578071 Yen Cross
Yen Cross's picture

    Soup is in a league of his own, Meat. I'll keep a mindfull eye on "InTheMix96" though.

Sun, 05/19/2013 - 14:44 | 3578088 earnyermoney
earnyermoney's picture

InTheMix76, I believe. At least his avatar has that 70's style...

Sun, 05/19/2013 - 15:10 | 3578135 Yen Cross
Yen Cross's picture

       Thanks for the correction.

Sun, 05/19/2013 - 15:08 | 3578131 drdolittle
drdolittle's picture

He was as big a puss as his namesake and couldn't take getting his ass handed to him daily.

Sun, 05/19/2013 - 18:14 | 3578394 RockyRacoon
RockyRacoon's picture

Fight Club ain't for everybody.  I've gotten a few black eyes myself... and given a few.

It's all about the staying power derived from belief in one's convictions.

Sun, 05/19/2013 - 13:57 | 3578025 max2205
max2205's picture

Spy is going parabolic so get on the last wild push before we correct to whatever level  Ben wants the index

Sun, 05/19/2013 - 16:21 | 3578253 negative rates
negative rates's picture

Around here they do that for free, then they take your silver when you are not looking.

Sun, 05/19/2013 - 17:11 | 3578326 Monedas
Monedas's picture

Those silver coins Judas got were about the size of a quarter .... the one troy ounce coins are a much newer phenomenomenumanommenum !

Sun, 05/19/2013 - 14:33 | 3578066 MiltonFriedmans...
MiltonFriedmansNightmare's picture

When trade wars arise, the TLC steps in and headlines are made. There are those who believe that Watergate was brought about by Nixon's tariff policy, which Rockefeller saw as a stab in the back. Free global trade is priority number one with the TLC. We wouldn't want to hamper the multinationals's as they rape and pillage the earth, now would we?

Sun, 05/19/2013 - 13:30 | 3577986 Everyman
Everyman's picture

There are going to be a lot of Central Bankers, Financial Criminals and Politicians bullet ridden bodies all over the place when the music stops.  I wouldn't give you a plug nickle for Hank Paulsen, Ben Bernanke, Timmy Geitner, Loyd Blankfiend, and any of the other oligarchs. 

They are all dead men and THAT is why QE has been played and WHY continued money printing is happening.  It is for their physical SURVIVAL. This is what happens when the oligarchies that have been built on fraud and corruption fall, the "little guys" and there are lots of them WANT YOU FUCKING HEADS! Yachts, and other things like expensive autos will be "targets".  Mansions will be raided.  The people will turn to a mob and there is nothing to stop it.  It is the way of things and has been show through history.  Just ask Marc and Mary Antoinette.

We are about there assholes, when it bursts, it will be pain for us, but DEATH for you!  You are enemies of the people and just like terrorists and probably like Qaddafi, your bodies will be torn asunder.


People will be angry and hurting and rightly so.

Sun, 05/19/2013 - 13:33 | 3577992 kliguy38
kliguy38's picture

Not to split hairs but they are NOT the oligarchs.......only the minions.....but you are correct...the "identifiable" perps above WILL be targets which is why there will be a very strong attempt to divert/game the peeps before chaos ensues in earnest. The real power is pushing this out for final "preparation"

Sun, 05/19/2013 - 13:38 | 3577998 Duke Dog
Duke Dog's picture

Well said! jd.

Sun, 05/19/2013 - 13:37 | 3577997 Seasmoke
Seasmoke's picture

I really believe Geithner will be first. Something about his face, his attitude and his lies. What a fool.

Sun, 05/19/2013 - 13:42 | 3578003 Curt W
Curt W's picture

But first it has to get bad enough for people to get off the couch, or put down their electronic toys.

Take down the cellular networks, if you want to see riots.

Sun, 05/19/2013 - 13:47 | 3578009 Everyman
Everyman's picture

Very true.  We have "electronic distraction" and an "electronic opiate" if you will and those folks don't care on bit if hey aer loosing liberty.  Hell they could be in a cage as long as they have their cellphone and wifi access.

Sun, 05/19/2013 - 13:53 | 3578017 Skateboarder
Skateboarder's picture

The technological distraction is that only, a distraction. The real power play is in shaping the human body and mind to utter and unquestioning subservience. Do not by any chance underestimate the power bigAgra and bigPharma have over the people. What you see now, is the rise of the age of the Orc.

"They were once humans, but through fucked up synthetic food, drugs, and radiation, they turned into something else entirely."

Sun, 05/19/2013 - 14:43 | 3578085 MiltonFriedmans...
MiltonFriedmansNightmare's picture

SB, you are all over it with big Pharma and agribusiness. It started with IG Farben and the Nazi's in their attempt to remake the power structure of the world. Farben continues to exert it's influence today. It's downright scary.

Sun, 05/19/2013 - 15:41 | 3578192 Skateboarder
Skateboarder's picture

Keen observation my friend.

From CIA's own Wiki:

"IG Farben held the patent for the pesticide Zyklon B[20] (used in Holocaust gas chambers), and owned 42.2 percent (in shares) of Degesch (Deutsche Gesellschaft für Schädlingsbekämpfung) which manufactured it. IG Farben also had managers in Degesch's Managing Committee. Of the 24 directors of IG Farben indicted in the so-called IG Farben Trial (1947–1948) before a U.S. military tribunal at the subsequent Nuremberg Trials, 13 were sentenced to prison terms between one and eight years. Some of those indicted in the trial were subsequently made leaders of the post-war companies that split off from IG Farben, including those who were sentenced at Nuremberg."

The fact that today's people ENJOY (sigh...) eating snythetic foods and taking synthetic drugs from the very folks who want eugenics, controlled mutation/degradation/corruption of the human mind/body/spirit, massive slave populations with inhibited higher brain functions, etc...

Their evil knows no bounds, but neither does the good in us. And so we endure.

Frodo: "What are we holding onto, Sam?"
Sam: "That there's some good in this world, Mr. Frodo, and it's worth fighting for."

Sun, 05/19/2013 - 15:21 | 3578089 The Heart
The Heart's picture

"The technological distraction is that only, a distraction."

Good morning SB. Good comment.

Woke up with distractions going around in the mid-level rem stages. All night long, the word distractions, distractions, distractions kept coming in the dream and then the message: could the closing of the S&P at 1666 be the warning about the immigration bill that is being sneaked through? The one with biometrics for all Americans laced in it? The perverbial mark of the beast, 666?

Everybody knows all these cover ups and distractions are just that, cover-ups and distractions. All hands on deck and alert as this crazy train mess gets worse and worse. Lots of things on the front burners, but lets all keep vigilant about this immigration bill with the biometrics attachment being pushed to pass in the cesspools of govt. We could see a false flag event, or attack somewhere any time to cover up this bill being sneaked under the radar. Stay tuned!


Sun, 05/19/2013 - 15:52 | 3578208 Skateboarder
Skateboarder's picture

As a real engineer and scientist (as compared to faux 'engineers' and 'scientists' who are little more than enabled technicians, lackeys, and bitches of some supercorporation, military/defense agency, or the like), I have often wondered how so many of these technically apt people willingly produce to kill. The only explanation I have been able to offer myself (while maintaining the assumption that there is still good in people) is that most of these engineers and scientists are given only portions of the problems to solve but not the entire problem itself. These are the folks developing the very core of the technologies, the gruntworkers. How does an engineer aid in the development of totalitarian surveillance or drone-bombers or HFT algos and still sleep at night?

So many great scientists and engineers, the giants upon whose shoulders we shit, they roll in their graves with utter disgust.

Sun, 05/19/2013 - 16:19 | 3578247 Cathartes Aura
Cathartes Aura's picture

when humans are socialised to compete, encouraged to think in terms of isolated individual units, then it would seem rather easy to assign them pieces of the whole, to perfect and be paid for perfecting. . . the individual units feel satisfaction for playing their part, receive their recognition, and never feel the need to empathise with the whole, with the rest of humanity that might perhaps be on the receiving end of their particular genius cog in the death machinery.

this is the greatest lie, and there really isn't any prize for looking into the Truth behind the lie - the Lie is profit-able, so the lie is prefer-able.  all hail profits, and the stroking of the ego(s).

"When you see something that is technically sweet, you go ahead and do it and you argue about what to do about it only after you have had your technical success. that is the way it was with the atomic bomb."

Sun, 05/19/2013 - 17:17 | 3578311 Lore
Lore's picture

You're right, though it's important to distinguish between the lying psychopathic subspecies and human beings in general.  Your average intellectually disadvantaged family of chumps is getting brainwashed and victimized and broken by so many Big Lies from so many directions that it's hard to know which way is up, hence the rising suicide rate, among other things. Unable to find a place for themselves in an unnaturally segmented, compartmentalised and standardized world, and lacking the tools, time and wherewithal to study, deprogram and understand what's unfolding around them, people self-destruct.

I don't blame an idealistic scientist for trying to understand the atom. I blame those without conscience who worship power, turn ideas into weapons and deliberately allocate capital in the service of Big Lies.  Case in point: Agenda 21 and the origin of "global warming": 

"The common enemy of humanity is man. In searching for a new enemy to unite us, we came up with the idea that pollution, the threat of global warming, water shortages, famine and the like would fit the bill. The real enemy then is humanity itself. - Club of Rome, First Global Revolution

WRONG. The common enemy is the scum that weaves this crap and turns it against us.  

Sun, 05/19/2013 - 17:19 | 3578332 Fedaykinx
Fedaykinx's picture

Such people need to be removed from the gene pool.


Sun, 05/19/2013 - 21:36 | 3579037 Cathartes Aura
Cathartes Aura's picture

we are in agreement Lore, there is a distinction to be made, and not all those who use their mind-talents mis-use them. . . but for me it's a systemic thing, a system that uses / exploits, and rewards those who provide the information /discoveries, etc.  it's a system that also encourages a lack of empathy via othering anything that might get in the way of the desired outcome, which is usually lethal, intentionally.  the corporate fud-stuffs, the toxic pharma, the poisoned tap water, and more, all designed by someOne(s) who appear to care not about the outcome(s).

there are law enforcers who used to "serve the public" now uni-formed for violence.   there is a volunteer military murdering for who? globally.  someOne is flying toxic payloads in the service of weather manipulations.  I could go on, and usually do. . .

those who weave and turn against us, their numbers appear to be increasing, daily.  and that feels systemic to me.

peace, if you can find it.

Sun, 05/19/2013 - 17:00 | 3578308 The Heart
The Heart's picture

Blessings and thanks for your comments.

A little moar to consider:

Sun, 05/19/2013 - 14:43 | 3578086 Ropingdown
Ropingdown's picture

This "losing liberty" thing:  Does it come with a free iPod?

Sun, 05/19/2013 - 14:07 | 3578042 Haole
Haole's picture

That's a nice fantasy, if it makes you feel better but don't be surprised if we don't get that kind of satisfaction.


Sun, 05/19/2013 - 13:28 | 3577988 terex
terex's picture

Wrong order; bitchez, petrol

n cigarettes

Sun, 05/19/2013 - 13:31 | 3577991 HD
HD's picture

Doesn't matter. CNBC has had the Cashin "parabolic" video as its lead story for more than 72 hours already. Nothing else is important. NOTHING.

Sun, 05/19/2013 - 13:41 | 3578002 Peter Pan
Peter Pan's picture

Central banking is just another way of saying central planning and we know that the history of central planning has never ended well.

The only central bank that will be left standing when all is said and done is gold as it always has.

Any paper asset not attaching to a real asset such as farm land, buildings etc is no better than an empty promise and unfortunately there are many of those.

What fascinates though is the FED's insistence at levitating the stock market given that over 80% is owned by the top 10% and which cannot therefore act as any real transmission mechanism, catalyst or multiplier for renewed activity in the rel economy.

In the end two things will "burn" paper and unfortunately people.

Sun, 05/19/2013 - 16:30 | 3578266 lotsoffun
lotsoffun's picture

'trickle down'.  they keep paying for all the totally unneeded junk like getting nails down - redocrating, holidays, restaurants and tipping.  apparently, it does work to some degree.  i saw it 2009 when they stopped spending.  having all that wealth, when they stop spending or mitigate spending and start to think about cost cutting, the bottom 90%  is the first to feel it.


Sun, 05/19/2013 - 17:09 | 3578324 newworldorder
newworldorder's picture

Its all about the public union, municipal, Fedral and fortune 500 pension plans. If those ever go south again, the political establishment will not be saved.

Sun, 05/19/2013 - 13:47 | 3578010 Temporalist
Temporalist's picture

Ohhh, that rancor.

(still stuck on the Star Wars theme)

Sun, 05/19/2013 - 13:51 | 3578015 buzzsaw99
buzzsaw99's picture

We already lost the trade wars bitchez.

Sun, 05/19/2013 - 14:00 | 3578028 Peter Pan
Peter Pan's picture

I upticked you on that although China will go into convulsions if Uncle Sam stops buying. This is why China did not call the bluff when 400 tonnes of paper gold were dumped onto the market.

As we know though, one too many bluffs will bring the house down.

Sun, 05/19/2013 - 13:55 | 3578023 Wilcat Dafoe
Wilcat Dafoe's picture

Well, I mean - what the AP, IRS and Benghazi scandals should have made clear to the American people is that the government {or the CIA shadow government} lies to the media, which then dutifully regurgitates it, and in the rare case of a whistleblower, the DOJ will try to intimidate reporters.


But then, I tend to think that the AP and IRS scandals were leaked in order to distract from Benghazi, which is much, much more serious, and which points to the ongoing US role to destabilize Syria.  I think Syria is as much about preventing an Iran-Iraq-Syria pipelines as any other theory I've read about, including establishing a private central bank or petrodollar concerns.  It's also fair to note that "Zionist" influence in the US can't be under-estimated, and there are policy papers going back to the late 70s calling for a breaking up {e.g. Oded Yinon's "A Strategy for Israel in the 1980s" echoed later by Jewish-neocon groups like PNAC and JINSA in papers like "A New Strategy for Securing the Realm} and while you'd think they want stability under a known devil, they likely view sunnis and shia killing each other as a good thing, that will allow them to invade and annex southern lebanon for it water and gas.


"Greater Israel" - both to please the religious zealots, and for water/gas is ALWAYS in play.


Anyway, we are being lead into more wars in Syria, Iran, and maybe Pakistan and/or Sudan after that, or whatever new threat against Israel's ability to bomb and kill people without being hit back...   but Americans are largely silent on this.  The two party system seems to absorb all the political energy that should be focused on the Fed and the Israel and War Lobbys' hijacking of our foreign policy.


I support tax protests, but don't see anyone doing that.


This government is either legitimate, or not legitimate.


I know what I think.

Sun, 05/19/2013 - 14:12 | 3578048 newworldorder
newworldorder's picture

I may get the junks, but this has to be said. 

The "american people" that we all refer to dont give a damn about much of anything beyond their daily pleasures. They have very little skin in the game concerning foreign wars. We have had a volunteer military for two generations now. Only the "patriotic" few serve. The majority do not serve, and most families dont care if someone elses son and daughter get killed along the way serving the interests of our grand empire.

The american people are too busy to give a s--t about anything other than what the MSM tells them to care about.

Sun, 05/19/2013 - 14:21 | 3578057 Haole
Haole's picture

Uh... yeah.

Sun, 05/19/2013 - 14:33 | 3578065 GoldForCash
GoldForCash's picture

Untill the shit hits the fan and then we will open a large can of whip ass.

Sun, 05/19/2013 - 15:05 | 3578126 The Heart
The Heart's picture

"Well, I mean - what the AP, IRS and Benghazi scandals should have made clear to the American people is that the government {or the CIA shadow government} lies to the media, which then dutifully regurgitates it, and in the rare case of a whistleblower, the DOJ will try to intimidate reporters."

Hello WD, thanks for speaking your truth to power. Here is a corroborating story for you to add to your next report.

Sun, 05/19/2013 - 18:56 | 3578538 forwardho
forwardho's picture

That's some rabbit hole there mate.

Sun, 05/19/2013 - 14:00 | 3578029 Haole
Haole's picture

"We are swimming with drowning men". 

Sun, 05/19/2013 - 14:04 | 3578036 Atomizer
Atomizer's picture

BIS and IMF attacks on quantitative easing deeply misguided warn monetarists


Yet, Lagarde continues to strip wealth to redistribute monies to the 3rd countries who cannot replay IMF loans that were used to reduce poverty. See the irony?


Stability and Growth for Poverty Reduction| May 15, 2013

A speech by IMF Managing Director Christine Lagarde, delivered at the Bretton Woods Committee 2013 Annual Meeting.

Sun, 05/19/2013 - 14:12 | 3578047 Urban Redneck
Urban Redneck's picture

The BIS broadside is an interesting read-

Sun, 05/19/2013 - 14:40 | 3578081 reload
reload's picture

This is the link Atomizer posted higher up sum up; having had a look at some of the historical `unintended` cosequences of QE and also at the narrow scope of `success` it articulates the risks to central bank credibility of persuing a failing course of action, before it closes thus:

`The private sector and policymakers, who have been facing their own set of daunting challenges in extraordinarily difficult times, will have to play a larger role in the next leg of the global recovery. Crucially, this would also allow central banks to normalise monetary policy in a manner consistent with a return to sustainable and balanced growth`.

Which means what exactly? A global bail in.. or less taxation, regulation and govenment? Far too ambiguaous to be useful, or of any comfort.


Sun, 05/19/2013 - 15:24 | 3578160 Atomizer
Atomizer's picture

A global bail in?

Ding, ding, ding

Think financial trading consolidation in the near future, GDOW. It will not go as planned. I cannot comment any further. Just pay attention. :>)

Sun, 05/19/2013 - 18:15 | 3578396 forwardho
forwardho's picture

GDOW, or if you wish .govDOW.

FRB ... it does a market GOOD.

Sun, 05/19/2013 - 15:32 | 3578176 Urban Redneck
Urban Redneck's picture

Interesting in the sense that even Uncle Ben goes before the US Congress and talks about "cutting deficits" and need for sustainable fiscal policy (which is certainly not in the electoral interests of policy makers in US, EU, or Japan).  Normally everyone just ignores the central bank BS, but when the BIS says basically the same thing- all of the sudden it's an issue???  I agree it's too ambiguous to be useful, but if perhaps the central bankers see the deteriorating efficacy of their insanity, we're one step closer to actually moving forward (for better or worse).

Sun, 05/19/2013 - 14:49 | 3578095 newworldorder
newworldorder's picture

We are all well past the stage of warnings. The BIS and IMF warning their pathological masters is "rich" indeed. Their warnings are an insult to anyone with moderate intelligence who can figure their lies out through deduction and reasoning.

What they dont tell you is that without the BIS and the IMF the world wide bankster thievery could not continue. They are "warning" while at the same time coming up with the methods of enslavement and giving the banksters and politicians the tools to perpetuate their financial domination.

Utter Bulls---t. !!!!!!!

Sun, 05/19/2013 - 14:05 | 3578038 Yen Cross
Yen Cross's picture

     Japan is on everyones shit list next week. China and Korea are frothing at the mouth...

Sun, 05/19/2013 - 15:01 | 3578116 newworldorder
newworldorder's picture

Japan is on their own shit list. Through no fault of their own they have a bullet lodged in their body politic that may yet destroy them. Fukushima news is still being desmissed by almost everyone. This is the only news that matters for the Japenese, not their gamble on almost infinate QE.

As Fukushima goes, -  so goes Japan.

Sun, 05/19/2013 - 16:28 | 3578265 negative rates
negative rates's picture

Then GE is in a bit of trouble, since they designed the back up system which proved faulty, to even their own dismay. A few more concrete blocks and we would not have to concern ourselves with all this hoopla of currency warfare.

Sun, 05/19/2013 - 14:06 | 3578041 q99x2
q99x2's picture

Oh Boy the world is going to need a leader.

The only thing powerful enough to win this war is open source software. It should be developed with the same urgency as the Manhattan Project. This is something that even the evil Google might fund. As Michael Tiemann of Red Hat once said, "The thought that a decision that a programmer somewhere makes is going to affect my rights is a scary, scary thought. Unless of course it is open source software and I can fix it."

That is because open source software is community developed and contains the essence of democratic principles.

So it is possible that the mega-wealthy will see a solution to continuing the human race without risking the annihilation of the planet.

They have to be scared knowing how impossible it is to predict the outcome of the situation  we are in.

This solution, if it is a solution, to replace governments with open source software will require a clash of prevailing ideologies. The path we are currently on has been the same as it has always been -- to overpower and annihilate the enemy. But, in a global society everyone is the enemy. 

Sun, 05/19/2013 - 14:38 | 3578075 StrangerThanFiction
StrangerThanFiction's picture

I don't see what open source software has to do with the end of the global ponzi scheme. Or perhaps I am missing something?

Sun, 05/19/2013 - 14:10 | 3578045 toadold
toadold's picture

Used IRS training dolls for sale.  No openings in the front. It starts screaming when you use the one in the rear. Collection masks of current public figures available.  The Hilary mask comes with a free strap on. Blood red lubricant available. 

Sun, 05/19/2013 - 14:11 | 3578046 moneybots
moneybots's picture

"We are drowning in central banking and quantitative easing.... And it's not ending until there are some negative consequences."


We are having some negative consquences.  Savers are being ruined by ZIRP.  However savers are not a Central Bankers constituents.

Sun, 05/19/2013 - 14:27 | 3578062 Meat Hammer
Meat Hammer's picture

<--- SHTF in 1 year or less

<--- SHTF in more than a year

Sun, 05/19/2013 - 14:38 | 3578078 Atomizer
Atomizer's picture

Weeks/months. All the Enron documents were stored in WTC 7. Where are we storing all the juicy evidence on the Obama administration? Just a legit question..

Sun, 05/19/2013 - 14:49 | 3578084 dick cheneys ghost
dick cheneys ghost's picture

I voted 1 yr or less...........but I would have voted that way in 2009, 2010, 2011 and WTFDIK?

So how do we get to 3rd world status?........Will there be an EVENT or will this be a process?

Reconciling the Imperial aspirations of this country/empire/facist state with our sorry economic condition is one tough motherfucker......

Sun, 05/19/2013 - 15:33 | 3578180 css1971
css1971's picture

Process. It's under way already.

Anyone who relies on Walmart for low cost Chinese goods for example is no better off than any developing world person, and as the USD devalues further against CNY these people are going to be unable to continue to afford low cost Chinese goods at Walmart.

A substantial proportion of Americans are already at 3rd/developing world status, that proportion will continue to rise. As the remaining earning percentage decreases, they will be unable to pay for increased taxation to support the increasing poor. There will be an event as the point of inflection is passed, most likely currency related but by that point the damage is already done, it's an effect not a cause.

Sun, 05/19/2013 - 15:54 | 3578217 dick cheneys ghost
dick cheneys ghost's picture

I tend to agree with you............

but......The country is alot like DickCheney..........Lots of heartattacks, pumps, bypasses and transplants.........but sooner or later that motherfucker is gonna die


Sun, 05/19/2013 - 16:33 | 3578269 negative rates
negative rates's picture

That's a good thing, stop buying cheapined stuff from China. It will all work out in the end if you stick to quality, and not to today's qualitative easing.

Sun, 05/19/2013 - 14:52 | 3578104 Curt W
Curt W's picture

After the midterm elections, a lot of crap is going to come out as they race to debunk each other

Sun, 05/19/2013 - 15:35 | 3578183 Meat Hammer
Meat Hammer's picture

I agree, that's why I voted for more than a year.  It might be time for the Republican puppets to take the wheel for the banksters.

Sun, 05/19/2013 - 15:15 | 3578147 drdolittle
drdolittle's picture

one more, I don't know when it will hit.

Timing is really hard. It does seem the pace is quickening.

SHTF when there's an official denial.

Sun, 05/19/2013 - 15:25 | 3578162 seek
seek's picture

I voted the over. I'm still not positive we have a single SHTF moment where we go all Wyle Coyote, look down and collectively realize we're fucked. Even a dollar collapse will most likely happen external to the US (no one wants it anymore) so it might not register as a "boom," and with the uptick in US oil production, the oil price shock might get moderated.

When I do all my number crunching, it seems like we'll have some sort of "event" like 2008 before the end of the year. But that's not SHTF. I think SHTF is more evident in some kind of massive structural shift -- a large power shift between states and federal level, in either direction.

I think the final, definitive SHTF marker is a nominal end to key social support vote buying programs (ie EBT, social security); I say nominal because their "out" will be to fulfill the letter of the obligation with devalued dollars. Even here I think you need to have something of an arbitrary line -- maybe when current average benefits have half the real value of 2007? Or when you combine two average adult benefits they fall short of some minimum benchmark standard of living? In any case I'd argue once votes can't be paid for, the SHTF in a meaningful way, and this is a long way off, basically the tax base has to be destroyed first.



Sun, 05/19/2013 - 18:20 | 3578403 Element
Element's picture

Social security is also soft form of 'rationing'. In the US case, prior to SHTF, rationing would become much more generalized and overt (less available, or metered-out, and more carefully). Think ration cards ... plastic ones ... like now. Let's face it, rationing and food stamp programs are one of the major reasons the US is not in very much deeper internal domestic poop right now.

Sun, 05/19/2013 - 15:20 | 3578156 lizzy36
lizzy36's picture

Wait until the Class (es) of 2013 graduates realize how badly they have been scammed.

Sun, 05/19/2013 - 15:27 | 3578170 Yen Cross
Yen Cross's picture

   Based on my level of stupidity, it will take a decade or 2<

Sun, 05/19/2013 - 15:28 | 3578173 Yellowhoard
Yellowhoard's picture

Currency war
Trade war
War war

We're in the early stages of trade war.

War war is a year or so down the road.

Sun, 05/19/2013 - 17:22 | 3578337 newworldorder
newworldorder's picture

War will NOT occcur unless the US military is unable to keep the commerce lanes open for all countries and especially in the OIL commodity.

Should that happen, then you will see China, Russia, Europe and India engage in the largest land grab into oil producing countries. This is something we should all fear.

Sun, 05/19/2013 - 15:38 | 3578191 KingFiat
KingFiat's picture

Hey, do not worry. Everything is fine, and the equity markets are up.

In case you have not noticed, global exports are higher than global exports. Nobody would lie about these numbers. So that means the martians (or some other extraterrestials) are coming to help us.

If you do not understand irony, you should not have read this.

Sun, 05/19/2013 - 16:14 | 3578241 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Disarm the populace.

Lie some more.

Hand out trinkets.

Make the uber wealthy uber uber wealthy.

This is a time worn strategy.

It's a shame the current administration is so inept at it ...

Sun, 05/19/2013 - 16:37 | 3578278 Seal
Seal's picture

Bernanke [and Greenspan] are fighting the battle of DOW at 40 and ignoring the DOW at 1 million. 


“…..In the meantime, an index of German share prices (1913 = 100) rose from 126 in January 1918 to 531,300,000 in September 1923, and to 23,680,000 million in November 1923 amidst extremely high volatility. (In dollar terms, because of the currency depreciation, the same index (1913 = 100) fell from 101.55 in January 1918 to 2.72 in October 1922, before recovering to 39.36 in November 1923.) The extremely high volatility of the stock market is a typical feature of hyperinflating economies.”

Sun, 05/19/2013 - 19:25 | 3578640 Angry White Dude
Angry White Dude's picture


Mon, 05/20/2013 - 04:43 | 3579569 ak_khanna
ak_khanna's picture

The new normal is that the basic mechanism of price discovery (based on demand and supply for actual use) of anything traded on an exchange has been terminally infected by speculators having access to unlimited funds and super fast computers for trading leading to volatile price swings. This has been made worse by the launch of ETFs for anything and everything under the sun by the financial community.

In a casino, the house always wins and in all the electronic exchanges, the too big to fail banksters are the operators. Armed with funds from the FED and using High Frequency Trading softwares and Derivatives, they move the markets exactly where they want it to cause maximum losses to the traders and the hedge funds.

Even if they do make a loss, their budies, the central bankers and politicians are there to transfer their losses to the taxpayers so that they have a 100% success record in transfering wealth to their coffers from rest of the world.

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