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Central Banker "Confession" Of The Day
When it comes to Central Banks, there are doves and hawks - though in recent times, the two have become confused as to just what they think. However, it is becoming clear that in spite of their incessant need to print money (liquidity) into existence to maintain the status quo, some (but not all) are realizing there are very real costs to this insanity. Compare:
- ECB - *COEURE: LIQUIDITY INTERVENTION CAN INTERFERE WITH PRICE STABILITY
- ECB - *COEURE SAYS CRISIS SUPPORT CAN LATER HAVE "PERVERSE EFFECTS"
and
- FED - *WILLIAMS SEES UNCONVENTIONAL STIMULUS FOR NEXT FEW YEARS
- FED - *ROSENGREN SAYS FISCAL CONFLICT WARRANTED FORGOING FED QE TAPER
- FED - *FED ZERO-RATE MOVE DIDN'T COMPROMISE POLICY
It seems central bankers believe what they want to believe.
ECB's Coeure had some other words of warning to a Fed that appears set to extend the Un-Taper to support its feckless politicians...
- *COEURE SAYS LIQUIDITY INTERVENTION CAN GENERATE MORAL HAZARD
- *COEURE: LIQUID INTERVENTION CAN LEAD TO UNWARRANTED CREDIT RISK
- *COEURE: LIQUID. INTERVENTION CAN INTERFERE WITH PRICE STABILITY
- *COEURE SAYS CRISIS SUPPORT CAN LATER HAVE `PERVERSE EFFECTS'
- *ECB'S COEURE SAYS `FINE LINE' BETWEEN LIQUIDITY, SOLVENCY NEEDS
- *COEURE: CENBANK LIQUIDITY SHOULDN'T SUBSTITUTE LACK OF CAPITAL
Whocouldanoda?
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Oh the fed is going to hurt the dollar? Thats bearish for gold , sell sell sell!
just remember jerry....its not a lie, if YOU believe it....
<-- Central bank is perpetual surprise
<-- Central bank is fiduciary custodian of economic well being of ALL citizenry
Delusion is an intrinsic part of psychopathic behavior.
Don’t take my word for it, ask a psychiatrist
http://www.medicinenet.com/psychotic_disorders/page3.htm#what_are_psychotic_disorder_symptoms_and_signs
When Boris is apply for Red Army, is meet with soviet psychiatrist doctor and is fail test for delusion. Delusion is essential ingredient for subject to group think.
that describes almost the entire US political, financial and educational class.
And virtually everybody else in this stupefied, trivial, enthralled culture. Blame Bernays.
edit: Actually, that's not entirely fair. Save some blame for those that paid Bernays' paycheck, and continue to pay the paychecks of his spiritual descendants.
Creds on the Bernays observation..
you could even consider taking a good part of it back to Wundt, and then the damage of the Vienna School.
FED - *COEURE IS FULL OF SHIT AND TERRRIST. FAGS.
Boris is wonder if bankster smart enough and is anticipate ultimate demise of central bank scam,... maybe like child game of hot potato chair, is skim off wealth until only empty shell is remain and masses left in chaos? Maybe smart citizenry is prepare against mass exodus of paper wealth to hard asset?
So said a wise Roman in 460 AD.
I assume you are well stocked with absinthe. For medicinal purposes, of course.
First time in literally years I have seen the phrase "moral hazard".
That would be like lending money that you create out of thin air to people and then demand that they endure hardship to service the interest.
"unconventional stimulus for the next few years" So...buy gold. Roger that.
yeah, eventually gold will do what it is supposed to despite their manipulations.
If not gold, lead will put end to central bankster class.
Gold has no value outside one's head.
Yesterday I watched a local 100+ cow dairy farmer hauling manure down to do some fall fertilizing of a multi acre post-harvest corn field. I later learned it's his corn field.
Now THAT is a guy with some real assets.
GDX is very very close to signaling counter trend rally. Something on the order of a 9 cent per share improvement on a closing basis. Probably close enough for a half position now...with the obligatory gap down threat on open.
Liquidity intervention can interfere with price stability.
Sounds like a nominee for the No Sh*t Sherlock quote of the year. Intervene on the supply of anything and it's price should change (if the market has any notion of efficiency). But intervene on the supply of the currency, and the "price" of EVERYTHING should change. Price stability is an over-used political term. Give me price efficiency.
Alas, the dolts among us are multiplying...
Boris Theory of Inflation, Deflation, & Volatility
1. Inflation is product of loose monetary expansion by Central Bankster while rob saver and citizenry of wealth through theft of equitable share of economy. Inflation is not natural product of orderly market.
2. Deflation is product of increase of productivity and, in some case, inverse kinematic reaction in collapse of asset bubble which previously is subject to 1.
3. Inflation and deflation is not to worry, volatility (i.e. instability) is primary disrupter, of orderly market transaction and productivity.
... but what is Boris know?
Both the FED and the ECB get Captain Obvious awards today.
You would think that after all this time with an economy in the pits that central bwankster's tiny brain cell would at last fire up and see that what they are doing is not working for the economy.
They are just TOOOOO thick, that's the problem
Well well well.
http://talkingpointsmemo.com/livewire/mcconnell-rand-paul-recorded-while...
In the video recording, Paul was confident that the GOP's pivot from demanding Obamacare be defunded to seeking out compromise would succeed.
"I think if we keep saying 'We wanted to defund it. We fought for that but now we're willing to compromise on this,' I think they can't -- we're gonna, I think -- well I know we don't want to be here, but we're gonna win this I think," he said.
The whole thing is theater. The RINOs, Rand Paul included, were never really serious about standing their ground... shocker! NOT.
Fuck all of them, I've taken my marbles and gone home. I no longer have confidence in the system. I will not comply and I have withdrawn my willingness to contribute to the system.
318-2596 Bernanke!!
now they've done it. i am baffled by bullshit
They have no clue. The economy is out of control.
I'd like to hear 'Satanic Whispers' from a CB, that disclose their plans for the day that their End-Game goes "exponential" (3rd-order or higher), i.e. when TSHTF (The Shorting Hits The Fed).
And exactly WHO will trigger a 'tranche' of TEOTWAWKI avalanche? When? Year and Quarter please, as all of us can read the seasons, can see storm clouds on the horizon, and know that our broken clock is spot-on 2x/day.
Well doncha see that the ECB has to talk the Euro down. Euro is getting too strong, so..time for ECB to talk about "responsible" CB behavior.
same thing with the BP, at 1.6150 or wehatevah, these guys no likey.
"Greece is facing accumulated problems to run the health and education sectors efficiently, as the Troika lenders push for massive public sector job cuts and privatizations. In this case, money comes from the European Central Bank, which controls money supply through the whole eurozone. Therefore, ECB banksters coordinated with the global and local big capital to blackmail Greece to take the measures they want, otherwise they will cut money supply to the country. Obama faces a similar situation with the Fed banksters."
http://failedevolution.blogspot.gr/2013/10/the-1-blackmails-obama-us-gov...
The evolution of the Basel Committee
Fuck you Central Banks, I’m a standard setter exposing your lies.
Also, Fuck you Barry Hussein Obama for lying on National TV again. Please don’t misunderstand, I don’t want you to stop. At the rate you’re going, no one will believe a word you say. Carry on Barry winkle!
I think the central banks and governments wield too much power ... it's time to chop them back down to size ... I think one way to accomplish this for everyone to quit their job immediately, not buy anything other than the essentials, and basically go on a massive sit-down strike.
Well, yea, water is wet. Bet they didn't know that either.
Central Bankers have created another vulnerability they are not talking about.
We can focus the discussion with a simple proposition: what bankers are allowing to happen (consciously or not) at Central Banks and Financial Institutions is far more fearsome than what terrorists have planned in the past. A failure of their jointly operated payments and settlements system would do more systemic damage to the advanced economies than any terrorist attack has done to date. This failure could result from an exterior attack by a state or group, an insider threat, or from technical failures in an overly complex system.
See more at: http://www.brokenmirrors.ca/?p=230
http://www.safehaven.com/article/31295/ready-for-qe-five-its-already-here
Ready for QE Five? - It's Already Here
The sad truth is that the primary function of the Fed and Treasury has now become the sustention and expansion of disastrous asset bubbles. In fact, while Mr. Bernanke officially acknowledges QEs one through three, the truth is he has embarked on QE V. What's QE five all about? Putting a lid on U.S. Treasury yields.
The reason for this is our anemic economic recovery has been predicated upon artificially boosting consumption, which is 70% of US GDP. That consumption is, in turn, predicated on borrowing; because we don't have any real income growth on the part of the consumer. The borrowing has been predicated on government's ability to build upon the asset bubbles in stocks, bonds and real estate. And the creator of all these bubbles is our central bank, which is the progenitor of this deadly-addictive cycle. The Fed does this by providing ultra-low interest rates and through the massive monetization of government debt.
To prove we have learned nothing from the previous Great Recession; we now have a situation where the FHA will most likely need a $1 billion bailout for the first time in its 79 year history. But why do taxpayers have to bail out the FHA, which provides insurance to lenders such as banks and other financial institutions? The reason is because our government has once again compelled lenders to make loans with next to nothing for a down payment, to individuals who can not afford to purchase a home--doesn't this all sound chillingly familiar? Therefore, we have subjected ourselves to yet another bubble in housing, where home prices are once again rising at double-digit rates and marginal home owners are just a few points higher in interest rates from foreclosure.
It's not just house prices which are in back in a bubble. Stock prices are also growing at double-digit annual rates. These double-digit gains in stocks are taking place in an environment of little earnings and revenue growth. Meanwhile, Treasury bonds offer only half of their average yields going back over 40 years. So, for the first time in our lives we have three bubbles that exist together -- equities, bonds and real estate. But the real catastrophe this time is that these bubbles will become exponentially larger than previous episodes. Therefore, when they burst the devastation will be many times worse.
Believe it or not there is limit to Benny boys printing press and that is the debt ceiling hence the banksta visit and the Treasury jawboning.
Bennie can only print or hit control p against bonds issued by the Treasury if they don't raise the ceiling, the Treasury can't issue new bonds for Benny boy to monetize to support QE. The liquidity in the stock market will dry up real quickly once that happens then we find out exactly how juiced the whole thing is. It is the best way to force a taper cold turkey style, just don't raise the debt ceiling, sit back and watch the chaos or prepare accordingly to trade on it if you are a gambler.
If I understand the situation, what you say is certainly partially true.
Yes Ben can only print to buy treasuries as a way to sterilize QE and the debt ceiling may put an end to that.
But notice, he is not bound to sterilize anything if he's not in the mood of if he runs out of avenues.
Instead Ben could (legally) print dollar denominations on actual paper and toss these out the windows of the Marriner Eccles building and into the actual streets for passers by to fight over, and ultimately to spend however they like. Less dramatic but just as effective, Ben could mail every household a check drawn on the Federal Reserve (not the UST) for the amount of $100,000. Of course doing so would signal the end of the world but it would no doubt advance the velocity of money, purchase of goods, elevation of the consumer confidence and all that for perhaps a fiscal quarter.
Would Ben do this? If there was anything to gain personally from it then absolutely yes. And if the president asked for it, absolutely yes. If the dollar was dead and they were going to issue a new currency anyway, then absolutely yes.
So what will Ben do? We can only wait and see.
They are locking down washington under a false flag just in case the dollar explodedes because of a default.
if they put in the army, it will be a sign that it's over guys!
If money is printed to benefit banks and corporations the moral hazard is that labor and saving lose all meaning, as well as paying taxes.
Moral Hazard rides again!
I love this band. The big spending "Conservatives" and "Liberals" do too.
Too bad the "Progressives" can't figure out how "Keynesianism" kills democracies. Oh well.
The "Progressives" are prefectly aware, that is why the cabal started the movement in the first place. Useful idiots.
For more on QE and 'Moral Hazard', see this:
http://nipponmarketblog.wordpress.com/2013/04/18/qe-moral-hazard-bubbles...
"central bankers believe
what they want to believe:"
Money System as State Religion.
What were the historical mechanisms which enabled this social insanity to develop? Obviously, those were the ways that lies were backed up by violence, for many generations. Within slave societies, as enough time passes for generation after generation of human beings to live and die within the established systems, BOTH the ruling classes and the lower classes develop their personal and social habits to operate within those social slavery systems. As long as those systems survive, they are able to become more complicated and more sophisticated. However, the foundations always stay the same: FORCE BACKED FRAUDS.
Meanwhile, "some (but not all) are realizing there are very real costs to this insanity."
It is almost impossible to estimate the full, long-term magnitude of the "real costs to this insanity." What has happened is that almost everything human beings do is controlled by huge lies, which are insanely out of touch with more objective facts, but nevertheless, have prevailed to become well-established psychological and social habits, because those action patterns were established by the history of the biggest bullies being able to back up their bullshit with coercion.
Generation after generation, the vast majority of people were beaten into submission, in ways that resulted in them agreeing with HUGE LIES. Furthermore, those who would agree with those HUGE LIES were then rewarded by the biggest bullies, for agreeing with their bullshit, while those who refused to agree would continue to be punished. That spiral of social insanity went around and and around, for generation after generation. Everything that human beings are doing is based on being able to operate systems of force backed frauds, or lies backed by violence. Those things have been able to become the almost totally dominant social systems, within which the vast majority of people perceive their world. The central bank system is fundamentally FRAUD, which has been able to be FORCED to become our State Religion. People have accepted the implicit social situation of the bullies having been able to back up their bullshit with FORCE, until that became the basis for runaway triumphant FRAUD, to become the way that people adopted to filter their "reality."
TO REPEAT: Our social reality has become triumphant runaway FRAUD, which was enabled to become "successful" due to being FORCED to become adapted to by generation after generation of previous human beings. There are at least two deeper, and much deeper, levels to this situation that our society is almost totally dominated by a State Religion, in which its "money" is "god" for the majority of people, despite that that "money" is only what it is now because of the long, long history of being able to USE FORCE TO BACK UP FRAUD. The first level is to recognize that the currently established systems are organized lies, operating organized robberies. The second level is to recognize that human realities are ALWAYS organized lies operating organized robberies.
Central banks are doing what all human beings have always necessarily done ... except they are now doing it on an astronomically amplified scale. THE PROBLEM is that the majority of people do not understand the even the first level of this social situation, while almost nobody understands the second level of that. The theoretical ways to deal with THE PROBLEM is for the dynamic equilibria of the different systems of organized lies, operating organized robberies to evolve their ecologies. However, in practice, the overwhelming degree of the runaway triumph of the currently dominant central bank systems of privatized, fiat, faith-based, "money," made out of nothing, as debts, backed up by the force of governments, have become an utterly dominant, globalized, STATE RELIGION, which is quite insane, since it is ALL BASED ON HUGE LIES, which ONLY "work" and are "successful" to the degree that history was able to use violence to back up those LIES, for generation after generation.
Neolithic Civilization as a whole is runaway State Religion, based on force backed frauds, which have gotten bigger and bigger, throughout history. That has created a global system which is insane to a degree which can barely be comprehended. However, any return to relatively more "sanity" is practically impossible, since almost everyone would have to go through profound changes, to face the facts that human realities are ALWAYS organized lies, operating organized robberies, in order to do politics that could negotiate the evolution of ecologies of better dynamic equilibria between those different systems. Instead of that, what is happening is that the established STATE RELIGION IS GOING MAD, and so, becoming more self-destructive, and headed towards some series of psychotic breakdowns.
Of course, "central bankers believe what they want to believe," BECAUSE they are the high priests of a State Religion, which for generation after generation developed as systems of force backed frauds, whereby the fraudulence of that State Religion was able to be amplified to astronomical sizes by the progress in science and technology. In theory, our understanding of politics should go through profound paradigm shifts, comparable to those paradigm shifts that other sciences and technology have already gone through. However, in practice, our social and psychological systems are so totally insane, and have been behaving in such insane ways for so long, that the future appears to require some series of psychotic breakdowns, while the possible emergence of a sufficiently popularized, different perception of politics appears to require some series of political miracles, for generation after generation!