Submitted by Charles Hugh-Smith of OfTwoMinds blog,
Goosing stocks ever higher will eventually push wealth inequality to the point that it unleashes social instability.
Central banks around the world share a few simple goals:
1. Defeat deflation by sparking inflation--in the cost of goods and services, not wages.
2. Weaken the currency to boost exports and counter beggar thy neighbor devaluations by other exporting nations and trading blocs.
3. Boost the value of stocks to keep pension plans afloat and project a politically powerful message of "growth" and "prosperity."
What no central bank dares say is what happens should they manage to boost inflation, devalue their currency and continue pushing assets higher: when we succeed, we fail.
Consider the consequences of juicing inflation: every click up in inflation further reduces the purchasing power of wages, which do not keep up with inflation in a world of labor surplus.
When central banks succeed in jacking up inflation, they will fail the households and enterprises whose income is stagnating or declining:Were European Central Bank head Mario Draghi honest, here is what he would say:
Devaluing one's currency is another way of pushing down the purchasing power of households' income and savings. Were Bank of Japan head Haruhiko Kuroda honest, here is what he would say:
Goosing stocks ever higher will eventually push wealth inequality to the point that it unleashes social instability. Were Federal Reserve chair Janet Yellen honest, here is what she would say:
Should central banks succeed in jacking up inflation, devaluing the purchasing power of fiat currencies and pushing stocks to the moon, they will have failed their citizenry. Should they succeed in reaching their goals, they will trigger catastrophic instability.
Buy Higher. Sell Never.
Payback is a bitch MF'ers.
Should expect to see some pretty big names nailgunned.....any day now.
It's already too late
Buy high sell never.. Yup thats the central bank MO as of late. When an entity has the power to fabricate currency and monetize debt, it eventually ownz all. How could anyone compete with that??? CB's buying s&p futs!?!
Not quite.
Create debt/fiat and buy equities.
Create more debt/fiat so others can buy the equities.
Rinse.
Repeat.
Selling is totally part of the cycle but it is just as manipulated as if you buy something with one account and then sell it to another. You can claim a profit with one and then leverage that to buy it back so the second account makes a profit too. Eventually if you lever up enough you can buy everything and be the master of all baters.
Bankers:
The only profession capable enough to piss off Jesus to the point of throwing shit and flipping tables.
Yeah but,
He eventually got hung up over it.
That won't happen a second time.
Remember, inflation is simply a different style of TAX —
The only way to create inflation is through wage inflation or import inflation.
And that are sound inflation results that don't harm the people.
And it's the exact opposite of what they're doing.
Obama tried is by jacking up the minimum wage but it wasn't evenly devided. He needs to raise wages for everybody with 10 to 15%.
The minimum wagers wouldn't profit as much as they do now but it would be spread out and purchasing power for everybody would have gotten bigger. Most important, the middle class.
Import inflation has been the trick since Nixon and that barrel is tapped out.
And the balance is so big that the wages would need a 10 to 15% raise about every 2 years 5 times in a row.
So when you hear wages are down or stay the same, it spells doom as we're getting behind more and more.
And why won't that happen? The rich big companies have spend only a few million in lobby work to make sure that never happens.
And where it used to be when people always wanted bigger wages, as weird as it gets, now they only care for the fact that others make less than them.
So just declare a $50/hr minimum wage...problem solved!
No, you just say: whatever you make, you get a 10% raise.
If you make 10 dollar a hour you now get 11 dollar a hour
If you make 100 dollars a hour you now get 110 dollars a hour
That's how you do it. It might not sound "fair" to the minimum wagers but why are they minimum wagers in the first place and getting a 1 dollar raise compaired to a 10 dollar raise is the fairest and most normal thing.
Oh, and get rid of the 15 dollar minimum asap.
If it was 10 before, just raise it to 10.
The alternative is helicopter money: a trillion USD equates to roughly $3000 per head. If they distributed the cash instead of POMOs you can be sure that spending and inflation would go up. And, for once, not only the banksters would enjoy it.
Soon QE will be done the old way: give aways the $$$ to calm the rioting masses.
that will never happen and if it would, those 3000 would be worth 30 dollars the next day.
Never ever will they just give money to the people.
They tried it in europe and it failed bigtime.
In Belgium, it where called ecocheques and you got 300 euro's.
People just said they didn't want them anymore and they got cancelled.
The reason was because they had to be spend on eco friendly products.
So if they would give you money, it would be in the form of cheques to spend on certain products and everybody would be complaining and half of the money wouldn't get used.
I coudn't have said it better. We need a mass realization of those two points.
"that is their goal not their failure"
It's kind of both imo in that althouygh it is their goal - transferring all the wealth to them and I do mean *all* the wealth - but at the same time every time they gain enough control of a nation or civilization to attempt this the economy eventually collapses because an economy literally cannot function above a primitive agrarian level if a tiny number of banking mafia have all the money. If they didn't lie to themselves about their history they'd know this because of all the other times they've done it in the past.
To say the market is rigged is an understatement. After over 30 years of trading commodities I will flat out state without any reservations that lies and manipulation run rampant. If you think anyone is looking out for the small independent trader you are wrong. An unholy alliance of the Federal Reserve, the government, and the too big to fail has left the rest of us in a precarious position.
For the big boys, its insider information and computer trading, this includes computing patterns that exploit where stops are placed, this improves their ability to wash the weak out of their positions. The bottom-line is that the higher the market goes the more vulnerable it becomes to a major collapse and sudden downward move. More on this subject in the article below.
http://brucewilds.blogspot.com/2013/07/markets-more-lies-and-munipulatio...
And they said gordon gecko was a fictional character...
We are all teldar paper
Gordon Gecko was a Saint next to the real thing.
Social instability is an understatement. When prople cant eat or feed their kids.... I will be serving up cabeza de banker at my shindigz.
it's going to be like a fast zombie movie imo - a bit like the Ukraine famine in the 1930s when the Bolsheviks took all the food and then stood back and watched while gangs of starving young men ran around killing and eating people.
Kabbalah magic
Dude.....you're giving away our best stuff......shhhh!
ASIF Central Banks give a rat's arse about THEIR citizenry when pondering their heavy duties and burdens.
Yes i can hear 'em crying into their pink gins and XO.
Why can no author call it what it is. Synthetic or "central" banking of ANY sort is racketeering dripping with fraud.
Instability is a nice way to put it - right with lollipops and teddy bears.
Truthfully these assholes are already crispy toast. No one in any part of my family going on three generations will ever touch fraud finance again - no bank accounts, no debt, no "purchases" in God's-fiat. These crooks Inc have no idea of the generational poison they are dispensing on themselves and to the system. One cannot print prosperity, and no crisis [circus] undermining the rule of law in the name of "trust" comes without consequence. In fact, nothing has done more to undermine the well being of the USA than "central banking."
The rest of you poor schmucks better watch out, else you be killed in the crossfire for being totally flacid whimps, afraid to stand up to politicians and close your BAC and Shittygroup accounts.
Because here is the rub....
"The cb is independent"
And.... Average joes wouldnt believe how the system works if you told em.
As independant as my crotch is to my bunghole. Same body, same death.
My experiences say you are wrong and Average-Joes do have a big clue. Everyone notices when "the Lords" are molesting family finances.
You probably wont believe this because BS-ona-stick media won't touch it, but there is a huge exodus of smart money from IRA's/401's etc. The secret is it aint just Boomers.
My sentimetns exactly.
I have no more hope no more feeling whatsoever. All I think about daily is inflicting terminal pain on as many of these mthfkers responsible for this mess as possible...
I just can't wait till it starts.
Von Mises could never figure that out.
"Vee believe in market nirvana; ideality of invisible hand."
When the crash occurred in 1929 he blamed monetary manipulation. He was right. He felt that by going to a gold standard we took away the monetary weapon from the state and gave it to the market. He was less than half right.
In fact History has proven that the private Oligarchs can manipulate : slave labour arbitrage pricing, commodity pricing, PM pricing (that of Gold the God) and monetary flows acting as pseudo money. In fact the market is theirs as a make belief affair which makes them wealthy until their greedy speculation makes them fall like Gulliver tied down.
We saw that in 1929; oligarchy's iconic Great Gatsby market. We saw that in the US/UK deregulated combine when the Oligarchs had all the latitude in the world under : RR, Bush Snr, Clinton and Dubya and it went busty boom in 2008. (after many mini busts along the way). From 1980 to 2008 !
So the sons of Von Mises still sing : if we went back to the Gold all problems would be solved and State would become monetarily impotent. The world would be saved.
Ha, ha ha-- Mother Nature is more clever than Von Mises's make belief world. There are many ways to thread the needle and the Oligarchs know how to do it like nobody's business !
Von Mises's ghost should read Piketty. Just as Homer's ghost should read the Odyssey once again and not confound Phoenicians with Semites; even less Hittites. But some bogies are difficult to get rid off.
Not easy to be a sub par player on the course!
Not that these squiddy Oligarchy deniers, the Draghi/Yellen brigade, masquerading as CB honest bankers, are true reps of an honest law abiding state!
Your comment is another way of saying that Oligarchs are inately superior, not superior by virtue of tilting the rules of society in their favor.
I don't buy it.
I don't buy it as an ideology.
But I do buy it as a REALITY. Its what it IS.
And it came about 'cos everybody thought Ronnie & Maggie and their successors were acting for the general good. Hmmmm....
Don't fool yourself on reality....sold in "trickle down" glossy papered wrapping but rotten to its elitist and financialised core.
They are only superior to the exent that the people are APATHETIC.
Reality says they are inferior. They make it harder for their species to continue. Extinction is not the goal of any species but these bastards sure as hell are pushing hard for it. That makes them far inferior to the local garbage man in my opinion.
inferior- superior, it depends what meaning you give to those words.
Their political power is superior to that of the people. That is the reality today.
That as humans they be inferior in their mindset and values cannot be questioned, by all the criteria civilization gives us.
If there were any justice, it would be applied to them. But power protects them.
They're a parasite so the inferior / superior thing doesn't apply in the same way. They're superior at being a parasite but without the host they'd die whereas the host would be healthier without the parasite.
"Your comment is another way of saying that Oligarchs are inately superior, not superior by virtue of tilting the rules of society in their favor."
Sociopaths have a competitive advantage by virtue of being sociopaths. I wouldn't call that being superior but it is a competitive advantage all the same. The trick for normal people is to create societies which close down the parasitic niches that sociopaths thrive in to the point where eventually they can tilt the rules of the entire society in their favor. One of these parasitic niches - and I'd say the biggest overall - is the banking mafia niche and it desperately needs closing down.
Even if it's too late for Rome 2.0 then the south and east Asians ought to realise that they need to close down the banking mafia niche in thier own societies before they are infected too deeply.
Von Mises and others don't say all problems would be solved, they merely state it would be far more difficult for the bankers to hide their doings. Take the way they're marking to fantasy rather than to market. They do this with the full knowledge of us all. And we let them.
The banks today are breaking law after law in the name of saving the world. And we let them.
I don't like private central banks controlling the Peoples money BUT if they were simply FORCED to obey pertinent laws, and use known correct accounting standards probably half of what they are doing would disappear.The fact none have went to jail is proof that most perps are easily bought off.
Because they are the masters of illusion many 'folks' think they are getting a piece of the cake and are quiet as to the dubious and/or outright breaking of laws. Only when the crash occurs will they cry foul never once considering their conspiracy to the fact.
In the current context of WHAT IS; aka deregulation and its dystopian fall out, it is relevant to be specific to the point where we put our finger on why Von Mises's analysis leads us up the garden path.
I'll try by quoting something I read in another blog :
The Big Lie (or the BIG iLLUSION if you like) in all of this is that neoclassical Austrian economics takes power completely out of the equation. While it does assume selfishness, in that everyone is out for himself to maximize his utility, it also assumes atomized actors who lack the power to influence markets. (Just as a reminder Keynesian Economist Joan Robinson was the first to study imperfect market behavior under Oligarchy rule).
One instructive way to see how these arguments break down is by looking at neoclassical economists justify large disparities in pay. Piketty shows that the idea that people are paid what they are worth, or in neoliberal-speak, according to their marginal productivity, to be a sham.
This decreasing marginal productivity meme is a key element of Von Mises's analysis. Its been deeply contested by the turn of current events as Piketty's analysis (now universally admitted) shows.
The banking mafia have a first line of defence - and a second line for people who look beyond the first.
Monetary policy cannot create wealth, in the same exact way that stock dillution cannot increase shareholder value.
Whether I issue 10 shares in a loaf of bread or 10,000, there is still only one loaf of bread.
Currency is simply stock in the economy that uses it. Increasing or decreasing the issuance of those shares redistributes that wealth, and will destroy some of the wealth in transition costs, but will not create any - ANY - additional wealth i.e. it is still just a loaf of bread.
Should central banks succeed in jacking up inflation, devaluing the purchasing power of fiat currencies and pushing stocks to the moon, they will have failed their citizenry. Should they succeed in reaching their goals, they will trigger catastrophic instability.
In a word. "Yep"!...
You forgot the part about Yellen saying not long ago that for the average young American who can't pay their food bill, rent or mortgage payment because of "deflation" that all they reall need to do is find a sugar daddy in addition to gambling in the market more...
Good to hear about banksters jumping and not making it out of their bathtubs.
Would prefer to see a central bankser get it.
So much for price stability, no inflation or debasement and no booms and busts,,, the reasons given for the Fed initiallly. My, my.
Let me have central bank 'poweres' in the game of monoploy and I'll destroy you every game........ just like they're destroying us.
These money changers represent the worst of the worse of the specie. A distant second with the politico's with their lying, thieving and murderous ways.
"failed their citizenry."
The BIS and its various branches don't act on behalf of national interests.
But, we can use their distortions to our advantage. Tell EVERYONE you know to liquidate float scams (high multiple tightly controlled stocks where options algos have been running a protection racket and stealing money from float manipulation) in order to buy gold. There are trillions in float scams -- orders of magnitude more than the "gold float". By converting essentially fraudulently priced financial assets to gold, we can restore integrity of money supply and restore investment signal to the marketplace. It is also the stable path out of financialization and TBTJ because it brings real assets in line with financial ones without amplifying moral hazard of the broader public.
The citizenry does not matter. Only power over the citizenry matters. (in keeping with the theme).
doop
If the masses stop spending, central banks are powerless.
And that's pretty much what appears to be occurring.
Problem: The people are too stupid to connect the dots. I really don't think people in this country (US) realize that they are being swindled.
People sense something is wrong, but are too intellectually lazy to pay attention to what's happening.
Who knows what the problem is? Who even cares?
There's also a question of scale. If the evil is too big or the lie is too big or the robbery too blatant then the average person can't believe it.
"And in a similiar story..."
http://www.theguardian.com/world/2014/nov/24/cesspool-excrement-explosio...
Too big to fail. No secret, they have no other options. It will all collapse if they don't print to infinity. The markets move up as millions know the central bankers have given implicit and explicit guarantees to support the markets. The openings are now driven the Fed/BOJ futures buying and they basically admit as much. BOJ routinely buys ETF’s. Cheap money can never go away; it fuels massive stock buybacks as sales falter, and massive deficit spending by consumers and the government. If faith in the Fed ends, bears will enjoy the greatest and fastest ride to Dow 6,500 ever seen. Even talk of more QE won’t stop the plunge once the lemmings fear the Fed is useless. So far, the Fed is 100% successful and bears have felt plenty of pain. Most people who matter only care about stock prices, not wars or inflation. So the oligarchs remain in firm control of monetary policy. There will not be any popular uprising over soaring stock prices, so long as the handouts for the lower classes continue, and they will.
"It will all collapse if they don't print to infinity."
It will all collapse if they do.
If the Central Banks can just create money out of thin air to buy, why does anyone have to work. Just print enough money for everybody.
They fail no matter what because rigged markets are an oxymoron and do not a market make.
"Devaluing one's currency is another way of pushing down the purchasing power of households' income and savings."
How many people will that bankrupt, when they won't be able to repay debt with cheaper dollars?
911 ISRAELIS DANCED FOR JOY WHEN THEY SAW US ATTACKED ON 9/11
The Internet just show the perpetrators as poor young hapless young men from Israel who were actually stopped by the US police & put in handcuffs. They are held up high as great men of Israel.
However there is no mention of the facts that go against them!
1. They were seen jumping for joy when they witnessed aircraft that went into the WTC Towers.
2. They were seen photographing the WTC destruction.
3. They said they had come from Israel to film the WTC destruction.
4. How did they come to be in the very best vantage point - far away from the mayhem - & how did they know that the WTC Towers were going to be destroyed in the morning of 911 - 2001?
5. It was never elaborated as to why the white van in which the Israelis were travelling was painted on its sides with a jet crashing into the WTC Towers?
6. The Police arrested the Israelis driving a white van [painted on its sides with a jet crashing into the WTC Towers] that was loaded full of explosives on 911 - when they were meant to be "mere students"! For what were the huge cache of explosives intended?
7. After a de-briefing they were rapidly whisked out of the country & the very same short video clip represents the Israelis as "poor unfortunate students that were actually stopped by the police & put in handcuffs" - at the wrong place and at most certainly the very wrong time!
CUI BONO? Who was to Benefit?
http://www.youtube.com/watch?v=EVkzdTerRCQ
"Goosing stocks ever higher will eventually push wealth inequality to the point that it unleashes social instability."
"Printing," stealing, is what is causing the "inequality," not "goosing" the stock market.
Jon Corzine exemplifies the other inequality at work causing "social instability."
While those closest to the "printing" spigot get rich and free-walks on their crimes, the sheeple struggle to make ends meet while trying not to get robbed, caged and/or killed by the banksters' local gun and badge thugs.
An American, not US subject.
"Guillotines kill Leviathan."
weimar again
lets say all the american markets drop 30% tomorrow, lets say $6 trillion dollars of personal assets, (as they always state), disappeared, where does that go?
all co.'s still have their tangible, or non tangleable, assets, they've just been revalued, on average, (not by 6 trillion dollars).
i think since the 2008 crash, the BIS has been trading long, on any short, using americans tax-dollars
it must be nice, the BIS can buy long forever, collect on breaking the shorts, and can't lose during a crash.
there's two impossible soulutions, everyone exits the market, orderly, or wait for regulators to do their job.
can't wait till the 95% of the uninformed market participants, save their money, and buy tangleable assets, some thing that doesn't disappear into thin air.