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What Options Are Left For Central Banks?
Submitted by Charles Hugh-Smith of OfTwoMinds blog,
Central banks have reached a fork in the road.
Never before have quasi-omnipotent financial gods had so few powers. A lot is being written about central bank policies now as the Federal Reserve ends its primary quantitative easing (QE) program and the limitations of central bank easing become increasingly apparent in Europe and Japan.
Let's start by listing the tools central banks have on hand. Strip away the fancy footwork and econospeak mumbo-jumbo, and what's left is:
1. Offer cheap credit to the banking sector, the idea being that the banks will use the free money to make loans to households and businesses. These new loans would inject the central banks' new money into the real economy.
2. Buy bonds to push interest rates down and buy mortgages to support the housing market.
3. Provide unlimited liquidity so banks and key financial institutions facing a liquidity crunch have a lender of last resort.
The basic idea here is that central banks provide a buffer against financial crises. When short-term loans come due and the borrower has run out of cash, rather than slip into insolvency they can borrow short-term money from the central bank.
The ability to push down interest rates is helpful as a buffer when credit-tightening and fear of defaults push interest rates up enough to choke off normal lending.
What happened over the past six years is that central banks have moved from providing short-term buffers to being the saviors of the government, economy and asset markets. This is an extraordinary transformation, and it's the core reason why central bank policies are now failing to move the needle: they were designed to serve as short-term buffers during crisis and the resulting recession, not permanent props under government borrowing, the financial sector and the stock, bond and real estate markets.
Every conventional analyst expected the global economy to recover quickly after the central banks provided the usual buffer. But they were wrong; the structural problems stemming from financialization--excessive debt, leverage, risk and opacity--coupled with near-zero oversight and perverse incentives have wreaked havoc on economies around the world.
On Monday, I suggested central banks would resort to buying stocks to prop up the stock market: Will the Fed Let the Stock Market Crash Before an Election? Reports suggest central banks and states are already buyers of equities, either via proxies or via public pension funds that have increased their ownership of equities.
Central banks have reached a fork in the road. The policies have the past six years-- jawboning, i.e. talking up the power of the central banks, buying bonds and shoving new money into the financial sector--have reached diminishing returns. The public's once unbounded faith in the efficacy and power of these policies is waning, and now central banks face open skepticism.
One path is to admit the limits of central bank powers. This is tough to do when you've been glorified for so long, but the honest confession of the limits of making short-term buffers into permanent policies would force governments to deal with the issues that have been avoided for the entire six years of central bank free money.
The second path is to start buying assets en masse. With jawboning and easing both discredited, there really is nothing else the central banks can do to support asset prices and keep the thin veneer of a healthy economy from peeling off.
The third choice--continue jawboning and launching yet another failed easing program--will only further discredit central banks and their policies.
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The Central Counterfeit ears will do what the Pentagon tells them to do...
We are so forked
They still have the Helicopter Option. The masses of sheep will think its mana from heaven, all of the dollars dropping into their laps. They won't have a clue why they still can't afford to buy food and fuel though.
Options left:
http://upload.wikimedia.org/wikipedia/commons/7/70/US_Navy_100420-N-0000...
Time for full, in your face, fascism, Ukie Style.
Federal Reserve "Bank" alone has 4.43 trillion FRN balance sheet already.
Then there is the ECB, PboC, BOE, etc.
Good luck & Godspeed.
Ebola doesn't travel. People travel.
* Cough, cough, sneeeeeeze *
Going long DLAR - all that business shortly coming their way.
FIRE! FIRE! FIRE! in the Federal Reserve's movie theatre...
Musical Chairs at the Banksters Ball: They dance 'til the music stops.
Shut down the Federal Reserve "Bank" and cancel the debt.
Obama doesn't have the balls- maybe the Wookie does?
CBs are so Ebola'ed
And therefore, we are so Ebola'ed
I don't suppose "Jump off-of the nearest tall building" is considered viable?
If it happens, spen these $$ wisely.
Provisions
Storable Energy
Home Defense
war, with staged ebola outbreaks to distract and stupify the sheeple.
URGENT: Pass along.
Decontamination Procedures
http://www.fao.org/docrep/004/y0660e/y0660e03.htm
Fed / US has a bunch more options.
1) direct asset purchases
2) more infrastructure
3) one time direct payments to consumers (say 5k to every member of the FSA)
4) bunch o batshit crazy stuff people havent even thought of
All options have big time repercussions now. More easing risks lighting a fire under inflation which could finally let precious metals break loose which in turn would force either the dollars demise or an increase in interest rates, which would be suicide for the FED.
Not a knife thing to say in the least.
a good start would be Dr Jim Willy for fed chairman.
How about Dirt Naps for every Fucking one of them......
and their little dogs to!
suicide?
< --- Jim Crater
< --- Jim Cramer
Booyah!
Who cares, the only option/hope for 99.9% of the planet is to execute the paper-pushers/moneychangers and return to sound money. nothing changes otherwise.
yup
Preach on!
All it takes is about 5-10% sleepers of the 99.9% to wake up and exchange some fiat for sound money.
There is always another option...double down.. or in other words, say whatever you need to.
like when shit gets serious you have to lie
Print moar fiat!
Gold Standard?
Oh wait; you would have to have some gold, right?
Print moar fiat!
You and I are familiar with the definition of insanity.
Keep comming back.
Print moar fiat!
Print moar fiat!
Look East to Japan young man...you will find your answers in the power of printing...
Options left?
Get the broom and dustpan. Stand aside. Wait for partiers to leave/pass out
One path is to admit the limits of central bank powers. This is tough to do when you've been glorified for so long, but the honest confession of the limits of making short-term buffers into permanent policies would force governments to deal with the issues that have been avoided for the entire six years of central bank free money.
The second path is to start buying assets en masse. With jawboning and easing both discredited, there really is nothing else the central banks can do to support asset prices and keep the thin veneer of a healthy economy from peeling off.
The third choice--continue jawboning and launching yet another failed easing program--will only further discredit central banks and their policies.
Number two is my bet.
not now ... maybe later
FR done all it could. Needs to let things reset ... which will force congress to DO SOMETHING ... obviously, we're in (or very close) to next recession.
$trillion deficits (again) will provide plenty of ammo for FR to buy
The second path is to start buying assets en masse.
Its only worthless money and it isn't my money
Buy! Buy! Buy! Buy! Buy! Buy!
So that's it? They're just going to keep propping up things forever?
When things get really bad, you just need to tell some lies.
IMF - everything is getting better
EU - the technicals are getting better
FED - Green shoots abound
Hookers and blow for everyone!
So, if the WHO is telling us there might be 10,000 cases a week of ebola in Africa by December, does that mean its really 100,000 a week? Or a million??
that means its 10,000 a week right now. lies and halftruths and obfuscations
Or 10 but fear abounds so go get your anti Ebola shot that is tainted with the real plague of choice...just say'in.
Silly phone, duplicates are for kids.
Duplicate, bad phone!
Perhaps the Chinese and Russian hackers are starting to use the malware they have been loading for years...
Bring out the helicopters and start dropping FRNs. The steeple will buy plenty of iGadgets then.
That will be one of their last tools IMO. Buying stawks can only do so much to stimulate the economy---which it hasn't. They will use that tool to pacify the sheeple for a bit longer---they will think they are getting something for nothing. Of course they will blame everyone who runs a business that they are gouging people, when in reality, the business will probably be losing money. When the second cup of coffee you buy at the restaurant costs more than the first one, you will know we have a problem. Food and fuel will still cost more than the average millionaire will be able to afford.
They only have two weapons.
1. Print paper IOU's
2. Mystically determine interest rates.
This is all they can do. Since they've moved interest rates to ZERO, now they are just a one whores act.
You nailed that one. Currencies are IOUs, glorified and pretty pieces of paper printed and handed out by governments. Whether because of modern printing options or in an effort to thwart counterfeiters most of us will admit countries have raised the bar concerning the appearance of their currency.
This has almost become a full blown beauty contest and taken our minds off what is really behind these pretty little tokens. A piece of paper with great power, based only on faith, they are mere promises of stored value and wealth, and the value of these promises can change in an instant. With this in mind currencies may not be the best place to store your wealth. The article below delves deeper into currencies as a great "Trojan horse" for governments to fleece the average citizen of their wealth.
http://brucewilds.blogspot.com/2014/10/currencies-are-ious.html
when i work, i EARN a dollar. That dollar has the value of X hours worked. When the FED prints dollars, those dollars have no EARNED value. They go into the circulation with my EARNED dollars, thus devaluing my Earned dollars by amount put into circulation. it really is disgusting, isn't it. If somebody worked for it, and the FED paid them, then i'd really not have a problem with it. But, to print it, and hand it to the banks or the Gov is shameful. The banks just sit on it (that takes a lot of work), and don't lend it out. this is a back door form of recapitalizing the bankrupt banks. the Gov on the other hand just hands it out to people. shit loads of people who aren't working... collecting ssi, collecting ss, collecting food stamps, ebt, rent assistance, heating assistance... hell, government contracts are handouts paid with borrowed money. fucking criminal.
Another form of stealth tax, or another form of slavery. Take your pick. Either way your labor is being devalued for someone else's benefit.
Well, if they told the truth most people wouldn't believe it anyway.
in other news....
Saudi ex-officer forms liberation movement for Arabian Peninsula
A former Saudi army officer has announced the formation of a movement aimed at unseating the Al Saud dynasty in Saudi Arabia.
In a video message, Dakheel al-Qahtani declared “the establishment of the Arabian Peninsula liberation movement,” noting that it “aims to begin a revolution in the Arabian Peninsula in order to topple the government of Al Saud…[and] to uproot their rule.”
He also called on the people in the kingdom to begin a popular uprising against the regime “for the sake of a nation destroyed by Al Saud corruption.”
Qahtani further denounced the Saudi regime’s “dirty” foreign policies which “are working against the interests of the nation.”
The ex-officer took to task the Saudi regime for its support of the US-led invasion of Iraq in 2003 and the finance of extremist Takfiri groups in Syria, noting that the Al Saud family supported the 2013 military-backed coup in Egypt which ousted former president, Mohamed Morsi.
Putin will be pleased.
Oh, good, just what we need; peace and stability in the Arabian Peninsula.
Oi Vey !
You don't get it. The Saudi's are leaving the USD for their oil. They are cozying up with Russia and China. This is the US striking back with yet another CIA coup.
Whatever.
Actually, that is a good point and one that we should keep in mind in the days ahead. The USA and SA are like two rings that are beginning to seperate. There is less and less overlap of common area as they pull apart and then..pop
Qahtani sounds like a Persian name, perhaps it is a Shia uprising backed covertly by Iran.
Thank God the beige book is out with calming and uplifting words...phew that was a close one.
The Soviets had a beige book, too. Damn, all this time I thought it was reckless printing of currency, government interference in the markets and artificial interest rates that destroyed economies. It is actually Beige Books, who are the culprits. Who knew!
Damn; that's a nice picture at the article head; so that's what a Fork in the Road looks like ? been wondering about that for years.
The Dow could drop 2000 more and it wouldn't even be a blip. It's still up a ton from the lows of 2008. Wake me up when it breaks 11,000.
Stocks down 400, silver up a nickel.
Sounds about right in a Bizarro world
All the shorts just got killed on the NYmex Silver Market; go look at the daily chart at Kitco.com. It's pretty amazing.
option 4: create a fictitous crisis (ebola)/false flag event and blame the tanking of the economy on it
Hey now! Enough with the spoilers. We paid a lot of money to watch this production, and we deserve to be on the edge of our seats.
Buffet news?
It appears the central banks of the world have made the crux of their existence a balancing act. You can almost imagine these bankers standing atop a fence. On one side lays a field of inflation and on the other a deep pit of deflation.
A new round of easing by central banks to combat a slowdown in growth may again be in the cards but do not be surprised if this time it is less successful. The magic of this policy is losing its luster. More on this subject in the article below.
http://brucewilds.blogspot.com/2013/11/central-banks-try-to-balance-on-fence.html
"A new round of easing by central banks to combat a slowdown in growth may again be in the cards but do not be surprised if this time it is less successful. "
Yet another penetrating insight. Keep 'em coming, Bruce – your website is likely to be snapped up by Yahoo! any day now.
The problem with the world economy is the problem with the US economy. By that I mean the US has been the economic engine of the world economy for 100 years. Then we elected the "you didn't build that" President and we've been sinking ever since. Yes, the big problems started on Bush's watch (and some even earlier than that). But the bottom line is that we've been in a quasi-depression for the past six years...and we didn't lift a finger to reverse the decline while the FED propped up the economy...and that's all on Barack Obama.
with all due respect Raoul, this shit been fucked for centuries, obummer never had a chance to scheme near this much BS, although he tries.
I'd say the problem started 100 years ago with the act that allowed the US to be the economic engine of the world.
Who knows how many centuries of demand was pulled into the 20th?
The idea that the problems just started in the last twenty years is laughable. Even Nixon found himself between a rock and a hard place. But hey, it worked for him didn't it?
The CB's will print by any means they can think of. There is no plan B.
From a couple years back, a Zerohedge Poster (not me).
"Hope you didn't put much money on that bet, Dawg. These fuckers are going to print hard enough to wake the dead. They'll print like mo'fos, print like mad men, print like fly pimps. Print until their eyes bleed. They will print via the swaps, via bank bailouts and mergers, via fixed Treasury yields, via real honest-to-God negative interest rates, via loans to banks on no collateral, via payroll tax reductions, and in the end via actual fiat paper instruments which they might very well drop in bails from actual mutherfucking helicopters. They will not give two figs what anyone thinks. Here is why. Because this is the Goddamned end of it my friend. There is no accounting beyond this point. There will be no history of it. No one to take notes of rates of exchange, or of the graft and violence, nobody to worry about the deficit or the GDP or the national debt of any nation large or small under the blazing Goddamned sun. End. Of. It. Does anyone bitch about how Rome totally debased their coinage at the end? Hell no. But whoever did it had enough to hand and grabbed some land with a nice vineyard and sat back and waited for the Middle Ages to start 700 years further on. And that's what a singularity is about. Anything that passes through is striped of all meaning. Nothing we think is important now will remain so beyond the event horizon. Nobody will remember, nobody will write about it, nobody will be held to any standard. Ever for evar. So yeah, they'll print like the mad crazed terrorists they are. Because they have nothing to lose, and maybe something to gain. Maybe a dollar. Maybe a day. Maybe a slim chance to escape with some of the loot. Whatever the fuck advantage they see in it, for themselves and their elite crap wanking buddies, they will full-on-full-time-fucking do it to advantage. Watch for it, Dawg. It's totally on this time, on like Donkey Kong. And when the dust is settled in a generation hence it's going to have become another unbelievable episode among the ages of men."
Clear 'nuff.
They'll print until each new buck brings zero return to GDP. Then they'll turn off the lights and expatriate.
Bring Gasoline down to 1 USD
That and That alone
Will bring the Field of Dreams
Jump
Trading forecast for upcoming Thursday session:
"CBOE who...? Halted what? Look pal, I think you've got the wrong number, I don't have your money."
Liquidity Trap
No One Escapes
Stop pretending they are interested in fixing it. This is just how they want it to work. They have the ability right or wrong to run it any way they so choose.
Its not the lies its that we fall for them.
to a point, but lets not forget they need x amount of morons to keep the show going and from where i sit the awakened mass is growing.........
Exactly.
Everyone, just keep donating, I mean contributing to your 401K. We're talking about your retirement after all... but only the money you can afford to lose.
That's right. Clap for Tinkerbell.
The next chapter of QE is under cover of disease and war. The final prop to executing the greatest stage of theft in human history.
Stick a fork in them banksters, make sure to poke them in the eye to see if they're done...
Fuck the Prudential full screen popup.
Fuck ios8 that disabled adblocking on all iPad browsers,
Fuck Apple.
Of course, Android sucks just as bad. I'm getting really close to rooting my tablet and putting Linux on it.
You use an Apple product???
We don't even need a gold standard. Just stop printing fucking money. We can keep most of the current system in place. Still use dollars, use the same paper, the same banks, the same lending standards. Just stop printing. It's that simple, but it won't happen until it's too late.
so we just need to ask the career criminals to stop stealing? why didnt i think of that.
The notion of a "fork in the road" is both too old school narative and too generous. The road has been blown up.
there never was a road, that's the true context.
https://www.youtube.com/watch?v=flge_rw6RG0Is that a silver or gold fork?
It should be quite obvious that the market is a entral bank steroid addict now. QE isn't even over in the U.S. and it is begging for more juice. And btw, the government buying stocks (owning the means of production) is better known as socialism.
Bernanke's essay, "Deflation, making sure it doesn't happen here" should have been called "Capitalism and Free markets, how to destroy them"
When you reach a fork in the road...take it...Yogi Berra I believe....seems like appropriate advice for today's markets.
Yeah; yeah. You're right. Yogi Berra. That's too funny.
a. Price fix gold much higher
b. More QE
c. Negative interest rates
d. Some other scam we/they haven't thought of yet but will by Oct 29th.
Central Banks have only one tool in their toolbox - cheap money.
The only question for Central Banks:
How do we throw money at this problem?
Don't forget the old shave and a haircut, two bits.
Haircuts and let's make the customers pay a fee for us stealing their savings while we're at it. Thievery is hard work and we deserve to be compensated for it.
Print Moar Fiat paper and this time bypass the banks and go to each of the citizens directly.
Every breathing voter gets 10,000 $, no better, 100,000$ in increments spread over a year.
/s
Well, if Evans or Dudley came across such a fork, why, they'd just sit themselves down and have a nice big piece of apple pie
In case you missed the memo, The Helicopter is called “S.S. Disability Check”.
With todays antics...you can see that they are not going to allow Gold and Silver to be a safe haven anymore.....they want everyone to run to treasuries....they need to sell trillions more and that is where they want people to run to.....they have trashed gold and silver
Governments always want money to spend on whatever foolish plans they can conceive, but without raising the ire of the citizens of the nation. In early times, gold and silver were money and kings and rulers could not wage war, or spend recklessly without it, else the peasants would revolt. This is tricky business, but now it can be done for a time by sleight of hand with the complicity of the banking interests and fiat currency.
However, as history shows, this always ends badly. There is no beating around the bush here. The End Game for this folly will be an ultimate collapse of the entire system. History repeats. The end result is always the same. We are not there yet, but closing in. Congress has abdicated their control of money creation and limiting debt per the US Constitution and have given it over to a band of thieves. What was set in motion in 1913 will be the end of empire and the destruction of a nation.
The following quotes are timeless, and apropos.
"Fiat money eventually always goes back to its
intrinsic value - zero" – Voltaire
"Gold is money, all the rest is credit" - JP
Morgan testifying in Congress in 1912
"Permit me to issue and control the money of a nation,
and I care not who makes its laws." - Mayer Amschel Rothschild,
International Banker
“That is what our money system is. If there were no debts in
our money system, there wouldn’t be any money.” - Marriner S. Eccles, Chairman
and Governor of the Federal Reserve Board
“I have had men watching you for a long time and I am
convinced that you have used the funds of the bank to speculate in the
breadstuffs of the country. When you won, you divided the profits amongst you,
and when you lost, you charged it to the Bank. ... You are a den of vipers and
thieves.” - Andrew Jackson, 1834, on closing the Second Bank of the
United States; (unabridged form, extended citation)
“When a government is dependent upon bankers for money, they
and not the leaders of the government control the situation, since the hand
that gives is above the hand that takes. Money has no motherland; financiers
are without patriotism and without decency; their sole object is gain.” - Napoleon
Bonaparte
"The issue which has swept down the centuries and which
will have to be fought sooner or later is the people versus the banks." –
Lord Acton
“And remember, where you have a concentration of power in a
few hands, all too frequently men with the mentality of gangsters get control.
History has proven that. All power corrupts; absolute power corrupts
absolutely.” – Lord Acton
"There is no means of avoiding
the final collapse of a boom brought about by credit (debt) expansion. The
alternative is only whether the crisis should come sooner as the result of a
voluntary abandonment of further credit (debt) expansion, or later as a final
and total catastrophe of the currency system involved." - Ludwig von Mises
“Money is a new form of slavery, and distinguishable from
the old simply by the fact that it is impersonal, that there is no human
relation between master and slave.” - Leo Tolstoy
“You cannot spend your way out of recession or borrow your
way out of debt.” - Daniel Hannan, Member of the European Parliament
“The American Republic will endure until
the day Congress discovers that it can bribe the public with the public's
money.” - Alexis de Tocqueville
Governments always want money to spend on whatever foolish plans they can conceive, but without raising the ire of the citizens of the nation. In early times, gold and silver were money and kings and rulers could not wage war, or spend recklessly without it, else the peasants would revolt. This is tricky business, but now it can be done for a time by sleight of hand with the complicity of the banking interests and fiat currency.
However, as history shows, this always ends badly. There is no beating around the bush here. The End Game for this folly will be an ultimate collapse of the entire system. History repeats. The end result is always the same. We are not there yet, but closing in. Congress has abdicated their control of money creation and limiting debt per the US Constitution and have given it over to a band of thieves. What was set in motion in 1913 will be the end of empire and the destruction of a nation.
The following quotes are timeless, and apropos.
"Fiat money eventually always goes back to its
intrinsic value - zero" – Voltaire
"Gold is money, all the rest is credit" - JP
Morgan testifying in Congress in 1912
"Permit me to issue and control the money of a nation,
and I care not who makes its laws." - Mayer Amschel Rothschild,
International Banker
“That is what our money system is. If there were no debts in
our money system, there wouldn’t be any money.” - Marriner S. Eccles, Chairman
and Governor of the Federal Reserve Board
“I have had men watching you for a long time and I am
convinced that you have used the funds of the bank to speculate in the
breadstuffs of the country. When you won, you divided the profits amongst you,
and when you lost, you charged it to the Bank. ... You are a den of vipers and
thieves.” - Andrew Jackson, 1834, on closing the Second Bank of the
United States; (unabridged form, extended citation)
“When a government is dependent upon bankers for money, they
and not the leaders of the government control the situation, since the hand
that gives is above the hand that takes. Money has no motherland; financiers
are without patriotism and without decency; their sole object is gain.” - Napoleon
Bonaparte
"The issue which has swept down the centuries and which
will have to be fought sooner or later is the people versus the banks." –
Lord Acton
“And remember, where you have a concentration of power in a
few hands, all too frequently men with the mentality of gangsters get control.
History has proven that. All power corrupts; absolute power corrupts
absolutely.” – Lord Acton
"There is no means of avoiding
the final collapse of a boom brought about by credit (debt) expansion. The
alternative is only whether the crisis should come sooner as the result of a
voluntary abandonment of further credit (debt) expansion, or later as a final
and total catastrophe of the currency system involved." - Ludwig von Mises
“Money is a new form of slavery, and distinguishable from
the old simply by the fact that it is impersonal, that there is no human
relation between master and slave.” - Leo Tolstoy
“You cannot spend your way out of recession or borrow your
way out of debt.” - Daniel Hannan, Member of the European Parliament
“The American Republic will endure until
the day Congress discovers that it can bribe the public with the public's
money.” - Alexis de Tocqueville
They could put cronies in positions at all the levers of power and do anything they want.
What they won’t want it to help the masses, because that is socialism, and they will want to help the rich because that is stability.
This is not rocket science ….. its embezzlement!
What options?
Same as it ever was: More theft.
An American, not US subject.
"My bank said that I wrote a bad check and charged me $55. I sent them back a note saying that the check was for materials for my guillotine and to come and get the $55."
Governments always want money to spend on whatever foolish plans they can conceive, but without raising the ire of the citizens of the nation. In early times, gold and silver were money and kings and rulers could not wage war, or spend recklessly without it, else the peasants would revolt. This is tricky business, but now it can be done for a time by sleight of hand with the complicity of the banking interests and fiat currency.
However, as history shows, this always ends badly. There is no beating around the bush here. The End Game for this folly will be an ultimate collapse of the entire system. History repeats. The end result is always the same. We are not there yet, but closing in. Congress has abdicated their control of money creation and limiting debt per the US Constitution and have given it over to a band of thieves. What was set in motion in 1913 will be the end of empire and the destruction of a nation.
The following quotes are timeless, and apropos.
"Fiat money eventually always goes back to its
intrinsic value - zero" – Voltaire
"Gold is money, all the rest is credit" - JP
Morgan testifying in Congress in 1912
"Permit me to issue and control the money of a nation,
and I care not who makes its laws." - Mayer Amschel Rothschild,
International Banker
“That is what our money system is. If there were no debts in
our money system, there wouldn’t be any money.” - Marriner S. Eccles, Chairman
and Governor of the Federal Reserve Board
“I have had men watching you for a long time and I am
convinced that you have used the funds of the bank to speculate in the
breadstuffs of the country. When you won, you divided the profits amongst you,
and when you lost, you charged it to the Bank. ... You are a den of vipers and
thieves.” - Andrew Jackson, 1834, on closing the Second Bank of the
United States; (unabridged form, extended citation)
“When a government is dependent upon bankers for money, they
and not the leaders of the government control the situation, since the hand
that gives is above the hand that takes. Money has no motherland; financiers
are without patriotism and without decency; their sole object is gain.” - Napoleon
Bonaparte
"The issue which has swept down the centuries and which
will have to be fought sooner or later is the people versus the banks." –
Lord Acton
“And remember, where you have a concentration of power in a
few hands, all too frequently men with the mentality of gangsters get control.
History has proven that. All power corrupts; absolute power corrupts
absolutely.” – Lord Acton
"There is no means of avoiding
the final collapse of a boom brought about by credit (debt) expansion. The
alternative is only whether the crisis should come sooner as the result of a
voluntary abandonment of further credit (debt) expansion, or later as a final
and total catastrophe of the currency system involved." - Ludwig von Mises
“Money is a new form of slavery, and distinguishable from
the old simply by the fact that it is impersonal, that there is no human
relation between master and slave.” - Leo Tolstoy
“You cannot spend your way out of recession or borrow your
way out of debt.” - Daniel Hannan, Member of the European Parliament
“The American Republic will endure until
the day Congress discovers that it can bribe the public with the public's
money.” - Alexis de Tocqueville
Find the Preview & Edit buttons
It is sort of axiomatic that the current batch of human beings seems to feel they are unique, living in unique times, under unique conditions.
In actuality, the only uniqueness are the tools which are utilized in the practice of accumulating “wealth” surreptitiously.
The most unique thing about America is the gall that we will not become another Europe, via multiculturalism and electing dual citizens to run our country.
Again, I am reminded of what the late Michael Ruppert argued in the 2009 documentary Collapse: "Certain things are inevitable right now. FDIC insolvency I will tell you is coming. Insolvency of the Federal Reserve is coming. The Federal Reserve can go bankrupt. T-Bill defaults. We're looking at major bankruptcies, starvation, dislocation, all these things are already on the way. Everything is going to breakdown."
http://olduvai.ca
To sum up as to why this time is different.
Previous times: FED action pumps up stocks and somehow economy pumps up so pumped up stocks aren't over valued. :-)
This time: FED action pumps up stocks, economy doesn't pump, stocks over valued. Boom. :-(
They are playing the only option they have left:
Keep the people distracted and scared (Ebola) so they won't get angry enough to revolt while the market tanks, the economy fails and the freebies disappear. Remember, the same players are running every component of this $hit show.
only down 285 now, yellen must be fitting her big girl panties up as we speak.
lets stop the BS :you know what , just send a paycheck to each citizen in the country for the Next 12 months and call it
QE-R01:(Qualitative Easing- Rest01)
Option 1: Print
Option 2: Print even more.
http://www.bloomberg.com/news/2014-10-10/fed-aim-off-target-as-inflation...
Daaaanger zooone.
https://www.youtube.com/watch?v=ZzQ3eBerHfM
is hari-kari an option?
The right hand has done everything possible to help the left.
The institutions are fine.
But you're fucked.
It's 3:00 and Janet told Kevin and the PPT to buy with both fists, anything and everything for the last hour ramp.
That is some serious coin being skimmed off the top of rigged s&p lately
Print.
You're welcome.
Next question....
How your central bank works.
The founding principals of all central banks revolve around the three "P'S" of banking.
Namely:
What is left beyond financial asset buying? The Fed and the ECB could finance big infrastructure projects designed to create jobs. The Federal fiscal authorities of Congress and the EU Commission are fiscally deadlocked. So, these CBs could invite State governments and private companies to commit to big infrastructure projects, and the CB could buy up all the revenue bonds for these projects. Want high speed vacuum tube trains? Mr. Yellen could finance it all. New roads and bridges? Check. 2 outer beltways around DC? Check. HOT lanes all the way up and down I-95? Check. Bases on the moon to mine helium-3? Check. Oil drilling in Antarctica? Check. New nuclear power plants? Check. Grandiose laser fusion projects? Check. Instead of just backing mortgages, the Fed could back small business loans. The Fed could buy up foreclosed properties directly, instead of just buying the mortgages. The Fed could buy gold. It could finance new technologies to get at gold deep within the earth inaccessible to current mining techniques. I could go on and on.
Or they could shut down their operations and admit failure, things would then straighten out. The financial types would have to become productive at something. Long live anarchy! No more government sanctioned belligerance at all levels!