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BIS Slams "Market Euphoria", Finds "Puzzling Disconnect" Between Economy And Market

Tyler Durden's picture


"... it is hard to avoid the sense of a puzzling disconnect between the markets’ buoyancy and underlying economic developments globally....  Despite the euphoria in financial markets, investment remains weak. Instead of adding to productive capacity, large firms prefer to buy back shares or engage in mergers and acquisitions.


As history reminds us, there is little appetite for taking the long-term view. Few are ready to curb financial booms that make everyone feel illusively richer.  Or to hold back on quick fixes for output slowdowns, even if such measures threaten to add fuel to unsustainable financial booms. Or to address balance sheet problems head-on during a bust when seemingly easier policies are on offer. The temptation to go for shortcuts is simply too strong, even if these shortcuts lead nowhere in the end.

     - Bank of International Settlements, 84th Annual Report

It was a year ago when the general manager of the Bank of International Settlements (the central banks' central bank), Jamie Caruana warned that the "Monetary Kool-Aid Party Is Over." Since then central banks have proven their own supervisor wrong in their ability to kick the can, because even as the Fed has commenced tapering its own QE (due to the same bond market liquidity issues we warned about last summer) the ECB has more than offset the Fed's brief attempt at policy normalization by escalating, for the first time in history, from ZIRP to NIRP. In other words, the Kool-Aid keeps flowing.

Which brings us to the BIS' just released annual report. There are many reason to read the full report cover to cover, but perhaps the most prominent one is that, once again, the Bank of International Settlements has merely compiled a book report of all Zero Hedge posts not only over the past year, but since our inception.

A quick summary of the report comes from FT:

The Bank for International Settlements has warned that “euphoric” financial markets have become detached from the reality of a lingering post-crisis malaise, as it called for governments to ditch policies that risk stoking unsustainable asset booms.


While the global economy is struggling to escape the shadow of the crisis of 2007-09, capital markets are “extraordinarily buoyant”, the Basel-based bank said, in part because of the ultra-low monetary policy being pursued around the world. Leading central banks should not fall into the trap of raising rates “too slowly and too late”, the BIS said, calling for policy makers to halt the steady rise in debt burdens around the world and embark on reforms to boost productivity.


In its annual report, the BIS also warned of the risks brewing in emerging markets, setting out early warning indicators of possible banking crises in a number of jurisdictions, including most notably China.


“Particularly for countries in the late stages of financial booms, the trade-off is now between the risk of bringing forward the downward leg of the cycle and that of suffering a bigger bust later on,” it said.


The BIS, the bank for central banks, has been a longstanding sceptic about the benefits of ultra-stimulative monetary and fiscal policies and its latest intervention reflects mounting concern that the rebound in capital markets and real estate is built on fragile foundations.

Or, as Hyman Minsky and Zero Hedge would call it "common sense."

But why use an establishment paper, one whose very existence has repeatedly been shown to rely on perpetuating the broken and unsustainable status quo, when one can quote from the BIS itself. Of course, to anyone who has read Zero Hedge either extensively or in isolation in the recent and not so recent past, all of this will be very familiar territory.

Below we present some of the key excerpts from the 84th BIS Annual Report. As you read these, please recall all those idiots who said the Fed is not solely focused on boosting stock prices and that anyone claiming that is a conspiracy theorist.

Overall, it is hard to avoid the sense of a puzzling disconnect between the markets’ buoyancy and underlying economic developments globally.

Yes BIS, we know you read us. Here's why:

The global economy continues to face serious challenges. Despite a pickup in growth, it has not shaken off its dependence on monetary stimulus. Monetary policy is still struggling to normalise after so many years of extraordinary accommodation.  Despite the euphoria in financial markets, investment remains weak. Instead of adding to productive capacity, large firms prefer to buy back shares or engage in mergers and acquisitions. And despite lacklustre long-term growth prospects, debt continues to rise. There is even talk of secular stagnation.

And here the BIS explains broken markets so easily, even a Janet Yellen can get it:

Financial markets have been exuberant over the past year, [...] dancing mainly to the tune of central bank decisions. Volatility in equity, fixed income and foreign exchange markets has sagged to historical lows. Obviously, market participants are pricing in hardly any risks.

* * *

Growth has picked up, but long-term prospects are not that bright. Financial markets are euphoric, but progress in strengthening banks’ balance sheets has been uneven and private debt keeps growing. Macroeconomic policy has little room for manoeuvre to deal with any untoward surprises that might be sprung, including a normal recession.

* * *

There is a common element in all this. In no small measure, the causes of the post-crisis malaise are those of the crisis itself – they lie in a collective failure to get to grips with the financial cycle. Addressing this failure calls for adjustments to policy frameworks – fiscal, monetary and prudential – to ensure a more symmetrical response across booms and busts. And it calls for moving away from debt as the main engine of growth. Otherwise, the risk is that instability will entrench itself in the global economy and room for policy manoeuvre will run out.

* * *

The combined public sector debt of the G7 economies has grown by close to 40 percentage points, to some 120% of GDP in the post-crisis period – a key factor behind the 20 percentage point increase in total (public plus private sector) debt-to-GDP ratios globally.



... government debt-to-GDP ratios have risen further; in several cases, they appear to be on an unsustainable path.

* * *

Once more, communication from the Federal Reserve and the ECB [...] helped support credit and equity markets, with the major stock exchanges reaching record highs in May and June 2014.

* * *

The S&P 500 Index, for  gained almost 20% in the 12 months to May 2014, whereas expected future earnings grew less than 8% over the same period. The cyclically adjusted price/earnings ratio of the S&P 500 stood at 25 in May 2014, six units higher than its average over the previous 50 years.

* * *

On record low default rates:

Low corporate bond yields not only reflect expectations of a low likelihood of default and low levels of risk premia, but also contribute to the suppression of actual default rates, in that the availability of cheap credit makes it easier for troubled borrowers to refinance. The sustainability of this process will ultimately be put to the test when interest rates normalise.

What forward guidance leads to:

If the public fails to fully understand the conditionality of the guidance, the central bank’s reputation and credibility may be at risk if the rate path is revised frequently and substantially, even though the changes adhere to the conditionality originally announced. Forward guidance can also give rise to financial risks in two ways. First, if financial markets become narrowly focused on it, a recalibration of the guidance could lead to disruptive market reactions. Second, and more importantly, forward guidance could lead to a perceived delay in the speed of monetary policy normalisation. This could encourage excessive risk-taking and foster a build-up of financial vulnerabilities.

As Bloomberg summarizes, "Central bank policy makers, who expressed concern low market volatility is masking future risks, are helping suppress price swings with their accommodative monetary policy." Aka, Bill Dudley hypocrisy 101:

The developments in the year under review thus indicate that monetary policy had a powerful impact on the entire investment spectrum through its effect on perceived value and risk. Accommodative monetary conditions and low benchmark yields – reinforced by subdued volatility – motivated investors to take on more risk and leverage in their search for yield.

But the biggest "heresy": even the BIS is suggesting that, gasp, deflation isn't the end of the world:

It is essential to discuss the risks and costs of falling prices in a dispassionate way. The word “deflation” is extraordinarily charged: it immediately raises the spectre of the Great Depression. In fact, the Great Depression was the exception rather than the rule, in the intensity of both its price declines and the associated output losses. Historically, periods of falling prices have often coincided with sustained output growth. And the experience of more recent decades is no exception. Moreover, conditions have changed substantially since the 1930s, not least with regard to downward wage flexibility. This is no reason to be complacent about the risks and costs of falling prices: they need to be monitored and assessed closely, especially where debt levels are high. But it is a reason to avoid knee-jerk reactions prompted by emotion.

And the punchline:

Never before have central banks tried to push so hard.

Which nobody will care about until it's too late, for one simple reason:

As history reminds us, there is little appetite for taking the long-term view. Few are ready to curb financial booms that make everyone feel illusively richer.  Or to hold back on quick fixes for output slowdowns, even if such measures threaten to add fuel to unsustainable financial booms. Or to address balance sheet problems head-on during a bust when seemingly easier policies are on offer. The temptation to go for shortcuts is simply too strong, even if these shortcuts lead nowhere in the end.

So when even the BIS says it's game over, it may be time to sell every last VIX contract, because the alternative - admission that the central banks have finally failed - is hardly an enjoyable one.

The alternative message is more pleasant: indeed - why worry. Just because every single previous central-bank inflated bubble has always burst, resulting in tears for most (if not those who precipitated the crash and managed to load up on liquidating hard assets at firesale prices) this time will be different.

As for the BIS authors of its last two annual reports: please stay away from nail guns.

Full BIS report below (pdf link)


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Sun, 06/29/2014 - 14:11 | 4907398 LetThemEatRand
LetThemEatRand's picture

"Few are ready to curb financial booms that make everyone feel illusively richer."  

And therein lies the real problem.  To the BIS, "everyone feel[s] .. richer," because to the BIS, "everyone" is defined as members of the financial sector.   They forgot there is an "everyone else," who did not benefit from the boom in the financial sector.

Sun, 06/29/2014 - 14:19 | 4907425 JaKst3r
JaKst3r's picture

I think that is a direct dig at the politicians and banks closest to the well still enjoying stealing the gains of their actions..

Sun, 06/29/2014 - 14:23 | 4907434 suteibu
suteibu's picture

I think the BIS is just trying to be the first out with this to try to appear as if they are credible and to distance themselves from the ultimate outcome.

Sun, 06/29/2014 - 14:25 | 4907450 jim249
jim249's picture

ZH was years ahead of these guys.

Sun, 06/29/2014 - 14:28 | 4907455 suteibu
suteibu's picture

Of course.  But ZH is just an internet blog with no official standing.

Sun, 06/29/2014 - 14:32 | 4907459 ilion
ilion's picture

BIS is part of the group of scumbags who have created these distroted markets in the first place.

Sun, 06/29/2014 - 14:34 | 4907466 Manthong
Manthong's picture

So they have been the Bankers Inhaling Snow for the past few years?

Sun, 06/29/2014 - 14:51 | 4907509 SamAdams
SamAdams's picture

As part of their code, they tell you what is coming.  It is up to you to recognize and take precautions.

Brought to you by the triangle club.

Sun, 06/29/2014 - 15:13 | 4907581 Manthong
Manthong's picture

But interesting to note, Greenspan’s “Irrational Exuberance” comment was made in 1996.. years before the market bubbled up and actually burst.

Sun, 06/29/2014 - 15:22 | 4907599 mvsjcl
mvsjcl's picture

The BIS is puzzled? LOL! They're the douche bags directing this massive market cluster fuck!

Sun, 06/29/2014 - 15:38 | 4907649 fonzannoon
fonzannoon's picture


Sun, 06/29/2014 - 15:52 | 4907673 BKbroiler
BKbroiler's picture

they're puzzled by the disconnect? really? let me give this a go:  The last time the dow crashed the global economy went with it.  Anyone with a stake in that not happening again (Central Banks & co) is all in.  Not the Bernanke or Yellen put, but the Mutually Assured Destruction put.  Shit I think I just convinced myself to buy stocks.

Sun, 06/29/2014 - 15:57 | 4907687 scraping_by
scraping_by's picture

You needed the word in April 09. The rest of us outsiders worry about not getting the word when the spigot's turned off and the everybody piles in at the exits.

Sun, 06/29/2014 - 16:03 | 4907695 BKbroiler
BKbroiler's picture

Like many people, I lost a good portion of my ass in the Horrendous Financial Kablooie of 08 and erroneously got out for good.  At least the gold trade was good for a few more years.

Sun, 06/29/2014 - 16:47 | 4907763 Pinto Currency
Pinto Currency's picture



From Dimitri Speck's work, we know that intervention in the gold markets with paper trading in NY and London as well as  central bank silent physical gold leasing CENTRALLY COORDINATED BY THE BIS accelerated in August 1993.

Rigging gold leads to rigged interest rates and excessively loose monetary policy with the usual series of bubbles.

Greenspan knew about the rigging of gold and interest rates and knew what was coming in the equity markets.

Thanks BIS for your concern now after your 20 years of manipulation have sent the global economy off the edge.

Sun, 06/29/2014 - 18:25 | 4907853 flacon
flacon's picture

I am shocked. Shocked, I tell you! No one could have seen this coming. /sarc


Breaking News: S&P futures up 0.11%. Green light to buy more I suppose.... sigh... 

Sun, 06/29/2014 - 21:48 | 4908489 NoDebt
NoDebt's picture

BIS knows exactly what's up.  They're setting themselves up as "the adults in the room" to be tapped to run monetary policy under the NWO, after the nation-state level central banks have been shown to be unreliable and unworthy of trust in such an important matter.

Just because they say what we say doesn't mean they're on our side.

Sun, 06/29/2014 - 22:01 | 4908518 markmotive
markmotive's picture

Watch Chris Martenson's Crash Course. He'll tell you all about the fu#king disconnect and then some.

Sun, 06/29/2014 - 14:34 | 4907465 Latina Lover
Latina Lover's picture

BIS knows that financial markets booms do not end well and is positioning in advance of the inevitable crashes.  Personally, I find the BIS to even worse the Fed, and I would gladly welcome its demise.

Sun, 06/29/2014 - 14:41 | 4907486 Da Yooper
Da Yooper's picture

Oy vhats da problem


vee skim a little here


vee rigg a little there


manipulate a little here


vhats da problem vit us skimming a sheckle or two no vone vill miss it


It is all just the vay vee do bidness

Sun, 06/29/2014 - 15:17 | 4907589 disabledvet
disabledvet's picture

Funny that they would complain. "Bankers think there is too much debt in the world!" Really? Gee, thanks.

Tell that to your Governments that are racking up trillions in debt BIS.

In the meantime "the citizens will deal." The fools are the ones who pay their taxes? Let's ask Jack Lew...he was in charge of that division at Citigroup. "No problem with his confirmation hearings either."

It really is sad to even have to say all this at this point actually. No one actually believes in their own rhetoric anymore do they?

The computer already knows "if it's not even based on the pretense of fact" (that data exists) "then there are only a VERY a finite number of fictions available" thus making behavior all to predictable.

If however the machine discovers even the pretense of a fact that is acknowledged to exist...a "btu" or a "mph" will simply move along.

Sun, 06/29/2014 - 16:01 | 4907694 scraping_by
scraping_by's picture

Believing the rhetoric may not be in the point. It's probably the same as Barry's usual headfake, when he says the right thing and then goes on to do the opposite. The MSM has to bless it as truth, but that's their job.

Sun, 06/29/2014 - 16:27 | 4907738 max2205
max2205's picture

Seriously,  bubbles don't end while central banks actually are buying common stock. 

Sun, 06/29/2014 - 23:12 | 4908685 scraping_by
scraping_by's picture

Yes, and if it crashed they'd lose lots of money. Which means they'd have to print more.

It's also a good excuse for their sock puppets in government to shift more of the nation's wealth away from social needs to bank bailouts. So instead of one nation at a time, they camn get everyone into that death spiral. The test run in Greece worked pretty well, it's time to scale up.

Mon, 06/30/2014 - 00:15 | 4908768 o2sd
o2sd's picture

Correct, bubbles end BEFORE central banks begin actually buying common stock. It is the price movement that carries on, but the bubble is well and truly burst.


Sun, 06/29/2014 - 15:16 | 4907586 fleur de lis
fleur de lis's picture

The BIS is a hive mate of the FED. Both were hatched before WW1 to buy up Europe for pennies on the dollar afterwards because the perps who spawned both knew the outcome well ahead of time. Because they planned it that way. 

Mon, 06/30/2014 - 03:19 | 4908863 JuliaS
JuliaS's picture

BIS and IMF are upper branches of the FED. Even through it appears that the Fed is leverating the rest of the cabal through its reserve currency, they're not calling any of the shots. Got to remember that the Fed itself was a result international central bankers (at the time stationed in Britain) to pry open American markets to the same exploits that had ravanged the European economy for centuries. The Fed has more connections with the Bank Of Israel, than with any other institution. They receive their marching orders from the outside...

... then again, when it comes to people in charge of cental banks, we're talking about "world ciitzens" - people with unlimited funds and briefcases full of passports. Citizens of no country in particular. Most governments will offer investor visas and even citizenships, if the price is right. Bankers may have residences in one country, offices in another, mistresses in the third and kids getting an edication in a dozen other.

In their world there are no borders. Those lines in the sand are there for herding the rest of us - the common folk. They exist for compartmentalization of sentiment. Like water dams they create points where energy can be generated through the effects of gravity. And if anything's to happen to any specific compartment, the bankers are free to migrate to a safer pasture, leaving the rest of us quaranteed, cut off from the world they might want to enjoy.

Mon, 06/30/2014 - 11:27 | 4909616 Cathartes Aura
Cathartes Aura's picture


if you are reading words telegraphed to media, then those words are meant to be read.  the measures taken otherwise are for those who compose the "press releases" - always.

if you know about the BIS or IMF or any other alphabet-acronym of string-pullers, then you are meant to watch them while the "other hand" continues its work - those agencies work on behalf of their Agenda, but are in no way the full Agenda.  it's up to individual minds to see beyond and through the massive, global scam perpetrated.

In their world there are no borders.

there are no borders, no nationstates - all that exists is connected, indivisible.  the only lines are those drawn in minds, via "beliefs" installed to keep the scam ongoing.

know what it is you desire to believe, and know that it is your choice to believe.

Mon, 06/30/2014 - 21:18 | 4912360 o2sd
o2sd's picture

Probably one the best posts on ZH. About 10 years ago, all of the Western Powers, in the name of terrorism, began the process of making it more difficult to obtain a passport. However, if you look carefully at these changes, the outcome is that is makes it more difficult for citizens of the Western Powers to leave. In other words, as you so eloquently state in your post above, more and more of the common folk are trapped, leaving them to deal with the mess the world citizens leave behind when they flee for greener and safer pastures.


Sun, 06/29/2014 - 16:29 | 4907741 Carpenter1
Carpenter1's picture

Think your long position is safe until 2016? Think again. And this time you'll feel doubly stupid after being warned by even the status quo.


I'll have no sympathy for those who get caught this time around, neither will 99% of ZH'ers.

Sun, 06/29/2014 - 15:39 | 4907648 lasvegaspersona
lasvegaspersona's picture


The BIS is always lumped in with 'the evil bankers' here at ZH. The idea that they see the problem as a normal person might causes surprise here and a good deal of suspicion.

The possibility that some central bankers might not be profiting from and in agreement with current market activiites is an idea that should be watched closely. If anyone can exert a change it is the BIS.

Sun, 06/29/2014 - 16:16 | 4907719 mvsjcl
mvsjcl's picture

You postulate that the Central Banks are separate entities? Beholden to their sovereign nations? That's quite a stretch, don't you think?

Sun, 06/29/2014 - 19:01 | 4908085 teslaberry
teslaberry's picture

the bis fed and other deep state actions are what zero hedge reports on, not the other way around. 


this report is not 'news' it's a report about what the bis and fed ahve been doing for years, straight from their own mouths!

Sun, 06/29/2014 - 17:14 | 4907824 Drummond
Drummond's picture

If Switzerland thinks it's staying neutral this time around then they're well wide of the mark. Chocolate, fondue and pre-charged to blow bridges are not getting them out of this pickle. I piss on your snow.

Sun, 06/29/2014 - 14:25 | 4907448 LetThemEatRand
LetThemEatRand's picture

My opinion is that there are no innocent mistakes in all of this.  The central bankers knew full well what they were doing.  Perhaps many in the financial industry who made millions believe the BS, but the guys at the top who made billions always knew it was BS.  They enriched themselves exponentially with the remaining wealth of the middle class, and now they are beginning to tell us they will be taking what's left of the husk of our economy and moving to a well fortified island somewhere and good luck, but they meant well.

Sun, 06/29/2014 - 16:57 | 4907792 malek
malek's picture

 but they meant well

Unfortunately that is not limited to central bankers or politicians nowadays, as you might be aware

Sun, 06/29/2014 - 18:34 | 4908022 Da Yooper
Da Yooper's picture



You know vhat dhey say


a sheckle stolen  here


a sheckle stolen  there


& pretty soon you are talking real money

Mon, 06/30/2014 - 00:40 | 4908782 TheReplacement
TheReplacement's picture

Good post.

Mon, 06/30/2014 - 01:11 | 4908811 RaceToTheBottom
RaceToTheBottom's picture

It was for the children...... their children.

Mon, 06/30/2014 - 03:21 | 4908904 Global Observer
Global Observer's picture

They enriched themselves exponentially with the remaining wealth of the middle class, and now they are beginning to tell us they will be taking what's left of the husk of our economy and moving to a well fortified island somewhere and good luck, but they meant well.

They created the massive middle class and when the physical resources are no longer sufficient to sustain this huge middle class, they are reverting to a system that worked for almost all of human history, a tiny elite, a small middle class and a huge underclass. It is kind of funny that when the middle class was booming they congratulate themselves and when they don't like what is happening, the responsibility is someone else's.

Mon, 06/30/2014 - 11:38 | 4909653 Cathartes Aura
Cathartes Aura's picture


They created the massive middle class . . .  when the middle class was booming they congratulate themselves and when they don't like what is happening, the responsibility is someone else's.

privilege always believes in its inherent position "over" others, that is the function of hierarchy.  if wealth is valued, then the wealthy-er are more "valuable" than those they see as worth-less.

in cultures based on accumulation, people will be trained to scramble over each other mercilessly in order to accumulate more, be it in "markets" or resource wars or whatever means to grab-more is currently available.  and they will look to their "lesser" accumulators and feel exceptional.

as the schemes unravel, and history proves they always unravel, the infighting is kept local, the hatred and anger turned on each other, and those who write the story retreat to celebrate their latest cycle of thieving.

Sun, 06/29/2014 - 15:07 | 4907562 JaKst3r
JaKst3r's picture

In fact the report comes out and says it...


This raises the issue of the balance of risks concerning when and how fast to normalise policy (Chapter V). In contrast to what is often argued, central banks need to pay special attention to the risks of exiting too late and too gradually. This reflects the economic considerations just outlined: the balance of benefits and costs deteriorates as exceptionally accommodative conditions stay in place. And political economy concerns also play a key role. As past experience indicates, huge financial and political economy pressures will be pushing to delay and stretch out the exit. The benefits of unusually easy monetary policies may appear quite tangible, especially if judged by the response of financial markets; the costs, unfortunately, will become apparent only over time and with hindsight. This has happened often

enough in the past




Sun, 06/29/2014 - 14:24 | 4907443 DavidPierre
DavidPierre's picture


The Bank of International Settlements (BIS) is created by a group of the world's major central banks. The ostensible purpose of the BIS, established under J.P. Morgan banker Owen D. Young's so-called Young Plan, is to provide the Allies with German reparations for World War I.

Strangely enough, the BIS soon turns itself to exactly the opposite purpose, siphoning money from the U.S. to the Nazis to build the Hitler war machine.

The structure of the BIS, safely tucked away in war-free Basle, Switzerland, is inspired by none other than Hjalmar Schacht, who will shortly become Nazi Germany's Minister of Economics and president of the Reichsbank, a man with powerful Wall Street connections.

Even before Hitler rose to political power, Schacht had pushed for an institution which would maintain channels of communication and collusion between the world's financial leaders in the event of a world war.

By its very structure, agreed to by the governments of all participating nations, the BIS is the perfect instrument for the boys in the back room. Written into the BIS charter is total immunity from closure, seizure or censure, regardless of who is at war with who. How convenient.

By 1939, the BIS will have invested millions in Nazi Germany while the Nazis, in turn, will have deposited vast sums looted from various groups of "subhumans" into the BIS.

Aside from laundering Nazi loot, the BIS will grow to be a supranational club with membership restricted to the handful of families who have defacto control of much of the global economy.

Sun, 06/29/2014 - 14:49 | 4907505 Bay of Pigs
Bay of Pigs's picture

And look at who is there now. Ex Goldman Sachs managing director, and current CEO of the NYFED, the William Dudley.

"In 2012, Mr. Dudley was appointed chairman of the Committee on the Global Financial System of the Bank for International Settlements (BIS). Previously, Mr. Dudley served as chairman of the Committee on Payment and Settlement Systems of the BIS from 2009 to 2012. He is a member of the board of directors of the BIS and a vice chairman of the Economic Club of New York."

Sun, 06/29/2014 - 14:25 | 4907447 TeamDepends
TeamDepends's picture

They just can't help themselves!  "The temptation to go for shortcuts is simply too strong, even if these shortcuts lead nowhere in the end."  This is akin to "I didn't want to rape her, but she was dressed too provocatively."

Sun, 06/29/2014 - 14:27 | 4907452 LetThemEatRand
LetThemEatRand's picture

No doubt.  The middle class really did ask for it, what with the way they were dressed.

Sun, 06/29/2014 - 15:43 | 4907661 Kirk2NCC1701
Kirk2NCC1701's picture

Don't confuse change of tactics with change of heart or change of nature.

They're simply PLAYING FOR TIME. To delay the Reset, i.e. Dollar's loss of GRC status. And thus keep the Status Quo: Power, Wealth, Lifestyle. Same as it ever was.

Sun, 06/29/2014 - 19:59 | 4908249 ZH Snob
ZH Snob's picture

"... it is hard to avoid the sense of a puzzling disconnect between the markets’ buoyancy and underlying economic developments globally....


Tyler could have easily set them straight long ago, but did they even ask his opinion?


Sun, 06/29/2014 - 14:14 | 4907405 suteibu
suteibu's picture

So the central banker's central bank is complaining about the central banker's policies?  What's up with that?

Sun, 06/29/2014 - 22:05 | 4908533 BeagleOne
BeagleOne's picture

False Flag...

Sun, 06/29/2014 - 14:13 | 4907406 Jack Sheet
Jack Sheet's picture

Disgusting hypocrites.

Sun, 06/29/2014 - 14:14 | 4907408 localsavage
localsavage's picture

SHHHH....It's just taking longer for them to cash out than normal

Mon, 06/30/2014 - 00:45 | 4908786 TheReplacement
TheReplacement's picture

It sounds more like, 'Almost finished.  The end of days will be along shortly now.  Ta-ta.'

Sun, 06/29/2014 - 14:16 | 4907414 stant
stant's picture

There is no market. As for the economy it's running on what's left in the cash register

Sun, 06/29/2014 - 14:26 | 4907418 Escrava Isaura
Escrava Isaura's picture

BIS... C'mon!


Global Reserve Currency

…… a system of triangular trade: the United States would use the convertible financial system to trade at a tremendous profit with developing nations, expanding industry and acquiring raw materials. It would use this surplus to send dollars to Europe, which would then be used to rebuild their economies, and make the United States the market for their products. This would allow the other industrialized nations to purchase products from the Third World, which reinforced the American role as the guarantor of stability. When this triangle became destabilized [starting with China in 1949 followed by Southeast Asia in the 50’s. Then, South America in the 60’s. Central America as well as Asia in the 70’s and 80’s by trying to get out of this system], Bretton Woods entered a period of crisis that ultimately led to its collapse.


Sun, 06/29/2014 - 14:23 | 4907441 Oh regional Indian
Oh regional Indian's picture


What A Freaking Farce!

The BIS what? The Group of 30 maybe?

C'mon, they are the primary cause and control mechanism....

Talk about totally false outrage...


Truly Inverted World...


Sun, 06/29/2014 - 14:31 | 4907458 TeamDepends
TeamDepends's picture

BIS:  Bureau of Internal Sheisters

Sun, 06/29/2014 - 18:09 | 4907976 Goldilocks
Goldilocks's picture

Animal House I'm a Zit (2:19)

Sun, 06/29/2014 - 14:24 | 4907442 JaKst3r
JaKst3r's picture

Still, im gonna read the full report, for shits and giggles :)

Sun, 06/29/2014 - 14:24 | 4907444 jim249
jim249's picture

I read about this report prior to ZH posting about it. My first thoughts were no news here. Been reading about this for several years on ZH.

Sun, 06/29/2014 - 14:26 | 4907449 Jack Burton
Jack Burton's picture

This whole article is simply stating the obvious and something many of us said since the market began it's post 2008 Bull Run. We all know the money printing, liquidity injections, manipulations and now even Central Bank buying. The governments made a concious choice to ditch all reality and to ditch the middle class and to ditch the real economy, instead they went for broke funneling untold trillions of printed dollars all across the globe. First they made the entire world whole for their 2008 losses, all the bankers and the hudge funders and the big trading firms. That done, they switched to generating a Bull market by liquidity injections, this not boosting stocks enough, they moved to rank manipulation of interest rates and even stock indexes. The result has seen a mass wealth transfer as the small minority who hold the majority of assets profited from all the printed money and manipulations. The people we call rich, have seen mass income growth. Those working for wages or who have saved and expect a decent interest rate on deposits have been screwed and screwed.

A certain sort of person tries to pass this whole thing off as free market capitalism and the results a natural selection of the hard workers over the lazy. Well, maybe to a tiny degree. But if we pulled government and central bank support for assets, then most all of the elites income growth would never have happened. I believe any look at the numbers prove this.

The real American economy is in terminal decline, but the little bit of the trillions that did trickle down has kept us from slipping into an out and out depression. But that effect is small and about to go away. First another financial crisis worse than 2008, then a depression the likes of which no living person can imagine. As for the 1%, they have already collected more than enough for a 100 life times of rich lifestyles.

Was that the plan all along? perhaps. But the US drive for was across the globe that we all see happening. Or at least those who don't rely on Main Stream media. That war drive is going to blow up and things might turn very nasty. Why? Because I think poor Americans are now reluctant to send their kids to another US manufactured war. Syria, Iran, Iraq, Libya, Ukraine. All of these are prime US war targets. I doubt Middle America is ready to send their kids this time.

Sun, 06/29/2014 - 15:25 | 4907612 Clowns on Acid
Clowns on Acid's picture

"This whole article is simply stating the obvious and something many of us said since the market began it's post 2008 Bull Run."

Agreed Jack, BUT the timing of thisi BIS report would seem interestng. Obama, Reid et al and his minions have just completely fucked everything up to the degree that even the Bankers cannot hide it anymore.

Mehtinks it is finally a time to get short with low cost Puts as VIX is essentially zero. Although I have said tyhois before and lost $$. When the rats start jumping off of the ship with "don't blame us, we told you so" reports.... time is close.  

Sun, 06/29/2014 - 16:51 | 4907779 Reaper
Reaper's picture

CYA for BIS. They want to claim they knew what was wrong and be seen as the wise bankers who must be empowered to fix it.

Sun, 06/29/2014 - 15:36 | 4907629 r3phl0x
r3phl0x's picture

With drones and other modern US military toys, American boys hardly need to die at all - let alone in huge numbers - anymore.

But the real show starts once 2nd-world nations get those same toys, and Iranian drones can reach NY, WDC, etc.


Mon, 06/30/2014 - 11:46 | 4909681 Cathartes Aura
Cathartes Aura's picture

the "Industrial" portion of the MIC doesn't really care who buys their war toys, nor who plays with them.

business is business.

war is profit.

Sun, 06/29/2014 - 16:54 | 4907770 Escrava Isaura
Escrava Isaura's picture

Jack.... "The real American economy is in terminal decline...."

Jack, the ‘Terminal’ decline is everywhere. US is actually doing better than most. The problem will be:

a) When Americans find out that, they 'We' are next.

b) Because we built our economy and way of life on energy that is going extinct


Mon, 06/30/2014 - 04:42 | 4908921 atoast2toast
atoast2toast's picture

its a bit of a stretch to think that BIS or anyone except for rednecks read zerohedge

Sun, 06/29/2014 - 14:33 | 4907463 Seasmoke
Seasmoke's picture

Should have let the reset happen in 2008. Period !

Sun, 06/29/2014 - 14:44 | 4907492 TeamDepends
TeamDepends's picture

Oh no, can't have that.  Those institutions were/are too big to fail.

Sun, 06/29/2014 - 14:36 | 4907470 RaiZH
RaiZH's picture

Is the BIS still stacking? 

Sun, 06/29/2014 - 14:47 | 4907499 TeamDepends
TeamDepends's picture

Yes, stacking plastic coffins which can hold 3-4 corpses.

Sun, 06/29/2014 - 17:23 | 4907841 americanreality
americanreality's picture

You're posting too frequently with not much to offer, bible boy. 

Sun, 06/29/2014 - 18:35 | 4908023 TeamDepends
TeamDepends's picture

Thank you very little.  Did not junk you, others will take care of that.

Sun, 06/29/2014 - 22:50 | 4908630 DaddyO
DaddyO's picture

And your post was enlightening?


Sun, 06/29/2014 - 14:38 | 4907477 buzzsaw99
buzzsaw99's picture

...when interest rates normalise.  lolz out loud

Sun, 06/29/2014 - 14:40 | 4907480 buzzsaw99
buzzsaw99's picture

when hell freezes over it is going to cause problems. lolz lulz lmao

Sun, 06/29/2014 - 14:43 | 4907488 Kirk2NCC1701
Kirk2NCC1701's picture

OT... Somebody should tell Mexico that it's a 90 minute game, not a 70 minute game.

They lost the game because they lost their heads. Cooler heads prevailed.

Sun, 06/29/2014 - 14:48 | 4907503 TeamDepends
TeamDepends's picture

And it's a cryin' shame, ain't it?  Perhaps they said "puto" one too many times, you know, karma and all that.

Sun, 06/29/2014 - 14:45 | 4907495 Madcow
Madcow's picture

Wow - it's even worse than I thought. The BIS is apparently unaware that it is instructing Central Bankers to buy equities with "tax revenue from the future".

Can't the BIS hire an economist? Or maybe a banker? Or at least consult an economics professor from a local college ??

Sun, 06/29/2014 - 14:47 | 4907501 Cycle
Cycle's picture

The "disconnect" is precisely what the US central bank wanted out of the policies implemented over the past 6 years. Mission accomplished! Unfortunately there is one natural law that rules all economies: "There ain't no such thing as a free lunch."  Sometimes there is a lag time before the law reasserts itself. We are in such a time. We better enjoy it.

Sun, 06/29/2014 - 14:47 | 4907502 Peter Pan
Peter Pan's picture

Welcome to Economics 101..........exactly 101 years since the FED was established.

Sun, 06/29/2014 - 14:58 | 4907536 Kirk2NCC1701
Kirk2NCC1701's picture

"Raise productivity". Really?

This is an eternal and false argument, that almost everyone falls for in a reflexive manner, without thinking it through.

Under the prevailing system, the Productivity of the 99% versus the Profits of the idle 1% is a perpetual arms race. Which keeps experiencing diminishing marginal returns.

Sun, 06/29/2014 - 15:13 | 4907577 Peter Pan
Peter Pan's picture

Productivity is not the problem. The problem is the distribution of its gains and the misuse of its gains.

Sun, 06/29/2014 - 15:49 | 4907675 Kirk2NCC1701
Kirk2NCC1701's picture


Sun, 06/29/2014 - 15:00 | 4907540 hooligan2009
hooligan2009's picture

thanks for the summary, saves reading the report.

time to correct a few fallacies.

1. Central bank actions do not make a difference to asset prices. Intervention, via stuff like QE, simply swaps zero coupon bank notes for coupon bearing debt that results from deficits. Ask what would it mean if the Fed monetized all Government debt rather than just the deficits (as it has been for the last five years). Instead of Treasuries costing a coupon, we would have bank notes, that never have to be paid pack and have no interest bill. Ergo, there would be no government debt, just bits of paper called bank notes. The end game for the Fed occurs when it starts monetizing bank notes and insisting that it is offering higher quality debt in exchange for these bank notes. The Fed is irrelevant to asset prices since asset prices inflate to excess borrowing by governments beyond their ability to repay the debt they accumulate. 

2. Central bank actions do not impact economic activity. In this sense, economic activity excludes all government activity, since this is not real unless it is involved in asset destruction via wars or legislation that otherwise kills economic activity. Companies create assets that generate cash flows beyond the cost of capital. The sales of products by a company have no relation to the way it is financed. A consumer buys a washing machine because of its utility and price not beacuse a company has a particular debt/equity balance sheet structure. The same applies to an economy and the Feds actions within it.

3. There is no such thing as inflaiton of deflation within an economy, only barriers to companies competing because of Fed or Government actions and regulations. Consumers make their own choices regardless of general inflaiton and can generally substitute, increase or decrease consumption of any consumer durable that is included in the general inflaiton measure. There is no consumer basket that represents economy wide inflation. All products obsolesce, so there is no point in trying to control or stop a natural process. The only items that will never obsolesce are food (including water) and energy, which are generally not viewed as important by the Fed. It would do better to exclude all consumaer durables and focus only on food and energy inflation, as would the government; leaving people to enjoy life and make their own choices. 

4. Central banks have no control over employment. Zero, nada, double O, triple O, eff all, blank. If they did there would only ever be a fully employed economy and governments would (presumably) never run deficits, since tax revenues would be higher. Whatever the Fed does, employment will proceed along its own dynamic despite Fed actions, not because of them. If anything the Fed did was ever going to work, it would have worked in basket cases like Japan and Argentina (not to mention Zimbabwe). If the Fed prints money (supply driven logic) it is attempting to compete with credit creation in the economy (demand driven logic). The Fed would do better giving every citizen a credit card with a limit of, say, $100,000 and an interest rate of zero (and no repayments). If the Fed can do this, it would drive a large proportion of credit formation out of the economy (e.g. 150m US people getting 100,000 to blow in vegas =  15 trillion) - this is mid set that the Fed and the Treasury would have you believe is whats needed.

There's bunches more, but Costa Rica are about to kick off against Belgium :)

Sun, 06/29/2014 - 15:20 | 4907594 Clowns on Acid
Clowns on Acid's picture

wow... either a sarc or a really dumb fuck.

Sun, 06/29/2014 - 15:27 | 4907617 hooligan2009
hooligan2009's picture

you are right.i meant greece not belgium - have you noticed how well they are playing with LTRO?

Sun, 06/29/2014 - 17:26 | 4907848 Dapper Dan
Dapper Dan's picture



Central bank actions do not make a difference to asset prices.?


 By adjusting the level of short-term interest rates in response to changes in the economic outlook, the Federal Reserve can influence longer-term interest rates and key asset prices. These changes in financial conditions then affect the spending decisions of households and businesses.

Sun, 06/29/2014 - 19:57 | 4908242 hooligan2009
hooligan2009's picture

ah hah...quoting the offical (mind capture dogma") line..i also said that "The Fed is irrelevant to asset prices since asset prices inflate to excess borrowing by governments beyond their ability to repay the debt they accumulate. "

"value" is the missing link.. central banks have no value and perform a bit like the answer to the question on whether there is any answer to the your thumb the missing link?

Sun, 06/29/2014 - 19:59 | 4908246 hooligan2009
hooligan2009's picture

( does not matter one whit) it is ummmm amorphic

Sun, 06/29/2014 - 15:04 | 4907553 Seal
Seal's picture

The Fed  has not tapered one bit and in fact has INCREASED its money printing 

Sun, 06/29/2014 - 15:04 | 4907557 DOGGONE
DOGGONE's picture

DEMOCRACY is at fault! As practiced, elected officials give the highest priority to getting reelected. This creates a 'flow' of short term dominance in decision-making, and the Fed goes with the flow too. Look at this -- note the several charts that are nearly never seen, because they are INSTRUCTIVE!
The Public Be Suckered

"If you voted for me, you are as smart as you need to be."

Sun, 06/29/2014 - 15:11 | 4907574 Inthemix96
Inthemix96's picture

The Bank Of International Settlements?  What a queer name, for a queer organisation?

Whos settled what you theiving cunts?  Why are we in so much interest enabled debt then you theiving fuckers?  Just who did you settle on and blame it for then?  Why is England in 1.5 trillion quids worth of debt?  Why is America coming close to 18 trillion of debt?

Who the fuck do you think you are fucking kidding you cunts?

Another note, off topic, whos this new boy Top Gear?  With the avatar of a bloke called Jeremy Clarkson in an Ariel Atom motor car?  This bloke Clarkson is paid by the British tax payer £14 million pounds a year through a disgusting tax on the whole populace so he can fuck about in cars most will never get their arses in.  A fucking TV tax, not one that I pay mind.

Thats more than Wayne Rooney, the thick cunt who kicks a pig skin for Manchester United.

Is that you Jeremy?


Sun, 06/29/2014 - 15:27 | 4907610 Fuh Querada
Fuh Querada's picture

re "TG", nice catch itm, I was wondering who that brass-plated jerkoff might be. It was generally taken to be a program.

Sun, 06/29/2014 - 15:34 | 4907635 Inthemix96
Inthemix96's picture

Fuh Querada,

No flies on me mate, I hope to engage this cunt, and see if he knows who he is.

Never liked cunts mate.

Top Gear?  Fuck off and talk sense, who the fuck would do that and use the cunts face as your avatar?


Mon, 06/30/2014 - 02:39 | 4908870 Tall Tom
Tall Tom's picture

I think that Top Gear is NSA. I called him out on that on the other thread. Instead of the denial that he gave nmewn for other possibilities he did not deny it.


That is known as a "tell" in the Poker Game of life.


I wish I had him at the Poker Table. It will be more than a pleasure to punk him for all of his money.

Sun, 06/29/2014 - 16:08 | 4907693 Atomizer
Atomizer's picture

He could be the old stig who wrote a book and got sacked. Is this Jeremy? Not a chance in hell. 

Sun, 06/29/2014 - 15:15 | 4907578 slackrabbit
slackrabbit's picture

Wow even Satan is worried, pity he's only the chairman of the board.. and has no voting rights...

Sun, 06/29/2014 - 15:25 | 4907608 yogibear
yogibear's picture

Nothing changes until there's a currency crisis, where the fed loses control. Until then the Federal Reserve inflates this pig of a market further.

Sun, 06/29/2014 - 15:27 | 4907615 SheepDog-One
SheepDog-One's picture

Banksters puzzled? Give me a fucking break you bailed out douchebags!

Sun, 06/29/2014 - 15:50 | 4907667 Atomizer
Atomizer's picture

This brings tears of joy in my eyes. My persistence has finally paid off. 

Thank you Zerohedge contributors, and Tyler. 


Sun, 06/29/2014 - 15:57 | 4907688 lasvegaspersona
lasvegaspersona's picture

Jack B

The middle class will be hurt but so will everyone who holds wealth in the paper and electronic derivatives of  real wealth.

The primary problem is that paper is the only place to go with savings and paper is now printed in great excess. When it comes time to trade paper for the real stuff paper will fail. 

This will also affect the rich. They see it coming and are trying to flee into antiques, art and rare wines. Too bad they can't get the best wealth preserver, gold. You or I could buy a million dollars worth but a billionaire cannot get half a billion in gold at current prices.

 Even if all of GLD could be had (now about 780 tons) that would only soak up about 30 billion dollars seeking the shelter of the safety of gold. The prime problem is that there is no where to go. If you have excess production one is forced into dollars or one of the many derivatives of the dollar....and the BIS certainly sees that the dollar as a reliable long term store of value is dubious at best.

This could be resolved if gold were to find a much higher value. This seems odd after watching the whole system supress gold as a store of value for the past 40 years (or  more) but in the end it is the only way out. 

Imagine the dollar faltering and the ECB deciding to try to step into the role of international trading currency. Since there would need to be a lot more Euros around the ECB could expand it's balance sheet. Instead of buying bonds it could buy gold, physical only at market prices. Overnight gold goes way up and the Euro keeps its value because now all those new Euros are backed by the gold the ECB just purchased at gold's new price. Crazy? Yes it seems that way now but it could work.

Mon, 06/30/2014 - 01:20 | 4908818 RaceToTheBottom
RaceToTheBottom's picture

Thanks, interesting writeup.

Sun, 06/29/2014 - 16:04 | 4907703 Davos
Davos's picture

They are laughing at us, they know how its all gonna turn out and they are laughing.

They dont give a shit, the central banks central bankers, what does that make them then?

The kingpin? I wonder what percentage sharholders the roths and rocka's are....

Sun, 06/29/2014 - 16:10 | 4907709 trader1
trader1's picture

how does this coming from the BIS really change anything?

it's all foreplay before the next world order.


Sun, 06/29/2014 - 16:20 | 4907728 kurt
kurt's picture

Puzzling Disconnect?

Howza 'bout this:

                  The entire market is being modelled and controlled from a redundant set of super computers, one in Utah, another in Colorado. There is also a NOC (Network Operating Center) where techs watch for break out of norm of any significant deviations from the presets. High frequency trading can never go away as that is the "static" in which the activity is hidden. There are several parallel "economies" some are absolutely illusions: you see that on CNBC and the major indexes. Simply put, the economy will not be allowed to fail. When some metric falls out of line in "reality", say the price of gold, it is steered back over several days. Attempts are being made to randomize the movements in a camoflage function.

Why? To preserve the Military Industrial Complex which can no longer depend on a "weak link" economy. 

Sun, 06/29/2014 - 16:25 | 4907734 Victor999
Victor999's picture

Never understood the mystery of this.  The real economy is not doing well because none of the money currently landing in the hands of the investment banks via the central banks is reaching the consumer.  Stock market gains and property bubbles are doing great!  Give that money directly to the consumer and guess what?....they will consume.  And when they consume, businesses will grow.  And when businesses grow, jobs are created.  And when jobs are created more is consumed.  And get the point....

But don't listen to me.  What do I know?  These Nobel Economists know far more than me - look what a job they have done so far!

Sun, 06/29/2014 - 21:50 | 4908486 Mentaliusanything
Mentaliusanything's picture

Victor, If they gave the money they have printed to the Consumers there would be way to much money chasing to few goods. Even Taco's and Pizzas would rise in price to astronomical levels, such is the amount of New Digital Money.

With ZIRP, money has no value so it buys no value and stock prices and other risk assets must rise. You need to lift Interest rates (normalise) and then money flows where is earns the most return with regard to risk. The only good thing Central banks have done is that they have kept the lid on things by not letting it trickle down.

However the mistake they made is you can't undo what you have created for free without a subsequent crash in "Risk assets" and that is nearly every asset but Hard assets. Hard assets will suffer less and the scramble to get hold of what exists is going to be epic.

In the end its deflation which ends with Lenders screwed on the asset side or its inflation to the moon which ends in Lenders being screwed again via borrowing short and lending long.

Its the Interest rate movements you have to watch and mostly CB's have painted themselves into what they thought was a safe corner. Care to lend them a helping hand again when they find no way out.  

But SOME trickle down would be most welcome, even if its Piss

Mon, 06/30/2014 - 02:05 | 4908847 Victor999
Victor999's picture

Mentaliusanything, you have a good point.  I agree.  But the real issue to me is the banking system we have allowed to arise - the banks are allowed to create money via debt.  To my mind the government to assume the responsibility for money creation and issue debt-free interest free money into the economy, thus spurring the real economy, creating jobs at reasonable wages.  The banks could go back to doing what banks do best - commercial banking.  When you have an economy based entirely upon money creation though debt, it means that for every dollar created there must also be a dollar of debt and the interesdt due on that debt isd not accounted for, which is of course an in-built inflationary regime. 


The US on multiple occasions in the past assumed this role from the banks and every time they did it they experienced huge growth in the real economy, much to the disdain of the bankers who saw their parasitic profits disappear.  Germany did it when Hitler came to power.  And Germany raised itself out of the economic quagmire it had been living in since the end of the war and experienced amazing growth - this was BEFORE they started their disarmament programme in 1936.  When the government creates money, there should be one dollar produced for each unit of production, not each unit of debt.  This is what I meant when I said get the money to the consumer.  I meant directly to the REAL economy where the consumer lives, not the financial sector where the parasites live.


So my point is this - put the economy (and the money supply!) back into the hands of the government where it belongs and out of the hands of the parasitic bankers.  There is absolutely no reason that governments should have to pay interest on money that is created - it is an absurd system, even though the banksers insist that it is the ONLY way to provide for a viable financial and econominc system. It isn't and it has been proven many times. 

Sun, 06/29/2014 - 16:35 | 4907750 Karaio
Karaio's picture

Well, maybe this is one of the last comments that I will make here, after this, I will be negated so that probably exclude me. There is a big problem in the U.S. on notice. Most realize you do not know what is happening, can not imagine how the rest of the world sees them. Believe me, do not see a good way. Gay is not natural, gay marriage is against the family since time immemorial. Separation of couples, dissolution of families is not natural, we are what we are thanks to agglutination families. The economy emerged with the exchange of goods by fine equivalent. These things are not paper, is the result of insanity. Or do you have food and exchange for gold and then by a tractor or have nothing if you is Professor, exchanges its lessons for better or food, the thing is simple. You work, produces, you must return. Are you a bum,'re screwed, will starve, always has been. When you have a family, kids do, you are responsible for the product of what you created. On gay marriage what happens is sustained by an incompetent working, does not have anything to society. What scares watching from afar (I'm in Brazil) is to see the U.S. military assimilate gays and women on the front line. Had already assimilated Latinos and others to ten years. The Roman Empire fell because of it, Rome assimmilou an army of strangers, and fucked. For me (and many others here in Latin America and Europe), Paul Craig Roberts was the President of the USA and, Sergey Lavrov take care of foreign policy. You, Americans of "USA" or vote know, has no direct vote for President! You vote in a guy who will vote in another and do not know whether it will succeed because there is a lot of money involved along the way. Is this democracy? This is something the "demo"! I will not even mention the women that pile of ass blondes without, skeletal without substance. Decent woman should have wide hips to children, there is a running joke here: According to the size of the ass you know the pressure per cubic centimeter at the head of the cock. hehe. Yes, the U.S. is exceptional in shit that make the world. What Paiz has scattered so many bases? This lot of people would not be there in the best producing factories? The U.S. has a lot of technology, but I agree, you eat technology? The rest of the world looks today with a magnifying glass and can believe, the view is not pretty. A Civil War is about to happen there, it worries because 99% of the population is armed, many people die. You kill themselves is not our problem, it is yours, grab the shit is that if we go out there with the same tone of war, we must fight back. Not cool, not cool to kill decent people. you can not be considered human being, when it is born, tell you they need to kill another human being. It is not natural. I'll be back at the beginning: you guys in the U.S. need a little more insight into how others see them. Can not believe that with good eyes. Unfortunately.



Sun, 06/29/2014 - 16:55 | 4907785 Atomizer
Atomizer's picture

It's too late, you're on the list. Don't stop posting, ride it all the way down. 

We have a great momentum in breaking down the corrupt system. Don't bail out now.

Of course, make your own decisions. Food for thought.

Sun, 06/29/2014 - 17:20 | 4907834 Karaio
Karaio's picture

The only good thing that the U.S. export today is the Jehovah's Witnesses!
I am married to one, can believe, decent woman, decent creed, never fight a war.

Sun, 06/29/2014 - 17:22 | 4907839 geekz_rule
geekz_rule's picture

rome burns in so many ways.. and you actually see it as a gay problem?? c'mon man. gay is a symptomn.. forever growth is impossible.. its a  nature's response to limit breeding... we're exhausting resources at a exponential rate... life randomly responds...

morality, especially as preached by immoral fake religious control systems.. is meaningless and actually.. comical... tehre is no invisible man in the sky dropping puts or longs... 

Sun, 06/29/2014 - 23:57 | 4908754 Manipuflation
Manipuflation's picture

Well that was a tough read of seriously broken English.  I'm not sure I exactly interpreted it correctly though.  If I did understand coorectly then what would you have us do?  I mean, like, get involved in politics?  Do you realize what website you are on?  Do you realize that we have already done what we could.  Do you relaize that many of us have fucked up our lives and careers by supporting Ron Pual. 

So what more are you suggesting that we do?  We come here to bitch but we have earned the right to do so.  We have paid the price of admission and no one ever said we are done.  Listen up here now, Do Not Fuck With Us.  If you want to be one of us then tell us what you have done and not what we should do.  We do not need a lecture on how fucked America is; we already know about that.  We can always use new ideas but we don't need to be told that we suck hind tit because we already know that fact at this point.

So what do you have to offer?  What do you care?  So now you have a response:  What are you going to do with it?  Stand up and tell us or shut your mouth. 

Mon, 06/30/2014 - 00:36 | 4908778 Atomizer
Atomizer's picture

First of all, who are you directing the question to? Secondly, I read the BIS/IMF site as if it were the Wall Street Urinal.

Await your response. 

Mon, 06/30/2014 - 02:07 | 4908844 Manipuflation
Manipuflation's picture

Atomizer, you have been around the block a few times.  I doubt we will get a response from this guy.  If he really wants to post here then he needs to step up.  We all know the rules of fight club.  Holy shit, we are giving this guy a chance but he still has to fight.  We aren't here for fucking charity. 

Mon, 06/30/2014 - 02:54 | 4908886 Tall Tom
Tall Tom's picture

Karalo is just AFP...Another Fuckin' Pussy.


If he wants to bail then he will not stand up for his principles. There is no respect in that.


There is no damned solution either. We just write the fucking requiem of a dying empire.


THERE IS NO SOLUTION. Just like most Math Problems the damned predicament has no solution but only that of an outcome.


You had best get Gold and ride this out. There are individual solutions but the collective is dying out. And that...Well that ain't such a bad thing.

Mon, 06/30/2014 - 12:07 | 4909802 Cathartes Aura
Cathartes Aura's picture

perfect ZH rant, just the right mix of "religious" non-sense, and old skool hierarchy designed to privilege believers.

problem is dude, you're sipping THEIR kool-aid, and you don't get pie in the sky when you die. . . whatever privilege you believe yourself entitled to by virtue of your body & hormones will be null 'n' void in time, just like every other hunk of meat that runs thoughts through their dendrites.


For me (and many others here in Latin America and Europe), Paul Craig Roberts was the President of the USA


believe whatever you like - but know that "they" are making moves on South America over this last century, the next land mass is being set up for cultivating "civlisation" - religion is already in place, next up?  install some mighty State figureheads, re-draw some State boundaries to suit the looting, and voila!  a new peasant class gets force-fed the meme of "special" while the State land mass resources are fully looted, and meanwhile, things get wound down in the northern hemisphere. . .

same as it ever was.

Sun, 06/29/2014 - 16:44 | 4907754 Atomizer
Atomizer's picture



Knock, knock 

Who's there? 

Systemic Risk.

No one is at home.

Sun, 06/29/2014 - 16:39 | 4907757 Inthemix96
Inthemix96's picture


I dont need to fall at your feet, just cos you cut me to the bone, and I wont miss the way that you kiss me we were never caught this strong, oh oh oh, if I dont listen to the talk of the town, and maybe I can fool myself I'll get over you, I know I will I pretend my hearts still beating, and I'll tell myself I'm over you cos I'm the king of wishfull thinking.

Go West for those that are bothered.  Relax, switch off, enjoy life.

Not long now eh?


Sun, 06/29/2014 - 16:57 | 4907788 adonisdemilo
adonisdemilo's picture

Bloody Hell, and there's me thinking we had enough ropes and lamp posts.

Time for a stock check,

Sun, 06/29/2014 - 17:19 | 4907809 DarthVaderMentor
DarthVaderMentor's picture

There's nothing troubling or puzzling about good old fashioned stupidity, theft, narcissism and greed covered up by obfuscating GAAP accounting, big complex "college"words, economic theories and other bull crap that PhD smart asses in government and Wall Street have used to fool the sheeple. As ole "Honest Abe" said before he was shot dead, you can fool all of the people only for some of the time......

Don't worry folks, there's plenty of pitchforks and hanging trees for all if we run out of lamp posts and we can use HFT computer cables and barbed wire if we run out of rope. 

Sun, 06/29/2014 - 17:16 | 4907829 geekz_rule
geekz_rule's picture

I personally just can't imagine this is stupidity, or greed, or anything that naive..

way too many dots connet for way too long, to just chalk this off to occums razor or anything like that. NO

this all reeks as evidence of corroboration. of conspiracy. of intent.

it isnt socialism, communism, authoritarianism. this is MONOPOLIZATION.

that is the true end game state. cradle to grave, ownership of all things for the randomly born into wealthy families, hemophyliac inbred euro-royality wanna bes, aboslute slavery for the sheep..

Sun, 06/29/2014 - 17:18 | 4907832 geekz_rule
geekz_rule's picture

long guillotines! where's this generation's "pre-corrupt days" robiespierre when we need em?

Sun, 06/29/2014 - 17:56 | 4907899 Karaio
Karaio's picture


No, it's not only a problem "gay", it's a whole sociological dysfunction where you see people killing children in schools, see SWAT shoving grenades in cribs, see politicians lying about inezistentes attacks in other countries as you would at home.
I talked about the fags just to put the hottest thing, doi way like sheep.
3% of the population are fags, they speak louder and have more space in the media that we, who know that shit will grab soon, very soon.
Everyone who enters is that scar the ass and the bag (if you have not, try find another place to comment) knows that you will not survive without the balls.


Mon, 06/30/2014 - 02:59 | 4908889 Tall Tom
Tall Tom's picture

Then why in the hell are you writing about bailing out, chickenshit?


You will not survive without ballz. But ballz without conviction just spread unwanted disease and pregnancy.


We need men and not boys. If you want to bail...then bail. What a fucked up post above.

Sun, 06/29/2014 - 20:29 | 4908319 Crocodile
Crocodile's picture

FREEDOM, the ability to act, think and speak w/o internal or external constraints/restrictions or fear of consequences does not exist; even for the "shadow-ruling-authorities"; it is the grand delusion, for we are all slaves to someone (look up the broad definition).  The question one needs to ask themselves and seriously consider is "who is your master?"  Anyone who says "I am my own master" is living in some fantasy that ends as a nightmare.  Make no mistake; everyone is a slave and has a master. 

Sun, 06/29/2014 - 17:36 | 4907852 Atomizer
Atomizer's picture

The United States of America will emerge after we shit can a few foreign policy makers. The council of foreign relations needs to fire the entire staff. The moles are quite obvious. You stupid cunts can't see it. Fire the staff. 

Rehire after you ran a positive background check. 

Sun, 06/29/2014 - 18:05 | 4907872 the grateful un...
the grateful unemployed's picture

this is weimar germany, and hyperinflation of the money supply has brought about zero or negative money velocity. there is a solution (in Germany there was forced labor) and that is to count every economic activity that is being done, and tax that activity as though it were done for payment. if you fix your own plumbing, then you have to pay the tax just as though you paid someone else to fix it. and theres more to it, if the person is different from the person actually doing that service, then you should have to pay them. your neighbor gives you a basket of his own home grown vegetables, you would have to pay your neighbor. (or least consider it for economic and tax purposes) its similar to the German forced labor solution. with all the new NSA products they have its much easier to find out who is working the underground economy, but they could just estimate the number too. if you have the receipts for home repair for the year, then you're okay, but if you did all the work yourself, then you owe them (at the least they can count that, but how do you count activity in which no money changes hands, only goods or services). i see it coming, these guys are just like the old fascists, without the ovens, or the death camps. they're going to whip us all like dead mules until we take up the yoke of economic activity.

Sun, 06/29/2014 - 20:21 | 4908306 Crocodile
Crocodile's picture

Do you have to get a permit first?

Sun, 06/29/2014 - 20:46 | 4908367 bunnyswanson
bunnyswanson's picture

I notice the stores want our e-mail addresses and phone numbers to give us bonuses after we have purchased a certain amount, or to be informed of upcoming sales.  When you check out, they assign the purchase to you even when paying cash.  Something to think about.  Thank you for your comment.

Sun, 06/29/2014 - 22:44 | 4908615 the grateful un...
the grateful unemployed's picture

before the NSA data gathering scandal, the privacy advocates were complaining that stores require you join their club, in order to get a fair price. the store gathers data on you which they share. its all tied together, the NSA scandal is not about political gaming, its about handing you over to the corporate masters for all of you essential needs.

Sun, 06/29/2014 - 17:48 | 4907884 Minburi
Minburi's picture

BIS is ground zero of this globalist clusterfuck.

Sun, 06/29/2014 - 18:11 | 4907980 Goldilocks
Goldilocks's picture

Grind 'em up, feed 'em to the pigs.

Sun, 06/29/2014 - 19:17 | 4908119 Karaio
Karaio's picture

I pity the people who are not following this conversation here.
Unfortunately with water will be contaminated by "fracking", radiation, no food, no where to run except give shots.
Not a good situation especially in cidaes above 450,000 inhabitants.
There will be flights, airports will be full, flee them.
There will be no roads, flee them.
In the summer, have a motorcycle near in the winter, a pair of snowshoes and a lot of wool, protect the kidneys and knees, is what counts most.
You will have at most 72 hours to find a place to hide, either in the cave or railway tunnel more than 700 meters.
Have said.
Good luck

Sun, 06/29/2014 - 19:17 | 4908120 Duc888
Duc888's picture



Gott laugh....from the link off of drudge:

Central Bankers, Worried About Bubbles, Rebuke Markets.


NY slimes, good thing their right on top of things...

Whew, not a minute too soon either.






Sun, 06/29/2014 - 19:57 | 4908241 moneybots
moneybots's picture

"The combined public sector debt of the G7 economies has grown by close to 40 percentage points, to some 120% of GDP in the post-crisis period"


Martin Armstrong: "The money people have saved the IMF maintains should be used for debt service by sheer force. To reduce the enormous national debt, they maintain that government has the right to directly usurp the savings of citizens. Whether saving money, securities or real estate, about ten percent could be expropriated. This is the IMF view. "

Sun, 06/29/2014 - 20:04 | 4908267 eurobuddha
eurobuddha's picture

This fiat ponzi scheme will crash and burn sooner rather than later. US will have to default/devalue there is no other way.

Sun, 06/29/2014 - 20:34 | 4908314 exartizo
exartizo's picture

are you kidding me?





Sun, 06/29/2014 - 20:32 | 4908328 TabakLover
TabakLover's picture

Wow, talk about noise.

Sun, 06/29/2014 - 20:48 | 4908370 Karaio
Karaio's picture

Dear Sheeple:

Have you ever been in the woods, shot someone who shot you?
Have you pointed a rifle, aimed and pulled the trigger targeting a human being?
Believe me, it's not a decent thing to do.
Ever happened to me and I have nightmares about it every time I remember, so I try to forget, but I avoid talking when one appears Anta (with apology to the animals that exist only in the Atlantic Forest - Brazil) as you need to clarify.
Or you are hunting or hunter is.
The thing is simple.

Mon, 06/30/2014 - 03:07 | 4908895 Tall Tom
Tall Tom's picture

Try being in South Phoenix, Arizona, USA...or East Los Angeles, CA, USA...Or...wait...What is the difference???


Phoenix is East LA.


On a long enough timeline the survival rate for everybody is zero.


Does death frighten you that much? When you fear death then you will end up fearing living.


YOU HAVE LIVED THROUGH IT. That is EVIDENTIAL as you are writing. What is the big fucking deal?

Sun, 06/29/2014 - 21:24 | 4908426 Jackagain
Jackagain's picture

This has to be a Wall Street head fake with the purpose of fleecing the suckers. I would guess that the market will be up 4% tomorrow. (won't bet on it though)

Sun, 06/29/2014 - 21:44 | 4908479 Herdee
Herdee's picture

Funny that the BIS never talks about the U.S. Government use of the global drug trade to overthrow freely elected governments.I suppose hundreds of billions in drug funds laundered through New York banks doesn't matter.But then there's this sticky little economic issue of all the major world powers being in the arms race.That's another polite term for arms trafficking.Dope and weapons seem to go together for The Fed and The Pentagon.

Sun, 06/29/2014 - 21:49 | 4908492 AdvancingTime
AdvancingTime's picture

Only a year ago the Bank for International Settlements (BIS) said that banks have done their bit to help economic recovery and now it is time for governments to do more. This means that governments must take responsibility for their economic policies and responsibility for how these policies effect the economic prosperity of their nation both in the short term and the long haul. Governments should oil the wheels of the economy by reforming labor markets and undertaking a forceful program of "repair and reform" the BIS said this is the only way to bring about a lasting economic revival. More on what they think must be done in the article below.

Mon, 06/30/2014 - 06:50 | 4908981 overmedicatedun...
overmedicatedundersexed's picture

hey bruce nice blog, but your little thread, said not word one on what .gov should do, just they should do something to repair the economy..disappointing

Sun, 06/29/2014 - 21:52 | 4908498 hungrydweller
hungrydweller's picture

There is no "market euphoria".  This is just the most recent version of "program trading" as it was called in 1987.  Expect the same outcome without the subsequent bull market when it is over. 

Sun, 06/29/2014 - 22:52 | 4908633 El Hosel
El Hosel's picture

"Puzzeld" eh? Lying sack of shits know exactly why the markets are going up.

Sun, 06/29/2014 - 22:58 | 4908651 ak_khanna
ak_khanna's picture

Derivative positions determine price movements and the media and so called financial experts scramble to assign reasons linking the moves with events in the real economy.

 The stock, bond, commodity and currency exchanges have been reduced to gambling dens whereby the more powerful traders with deep pockets move the markets to maximize their own profits at the expense of the remaining not so powerful players. The big boys have enormous money power to move the markets in the direction which results in maximum profits for themselves. They effectively use the media to lure the other players in the market to a position where they would incur maximum loss.

The markets continue to rise till all short positions in the market are covered and the majority of traders move to the long side. Once this is done the market falls till all long positions are closed and short positions undertaken. Then rinse and repeat. The price mechanism has little to do with the actual demand, supply, fundamentals or state of the economy.

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