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The First Lesson In Dealing With Central Bankers
As Scotiabank's Guy Haselmann noted in his morning comment today,
"A G-5 central bank just broke its promise to the market... Hidden risks and uncertainties are growing."
As the following note suggests, we have some lessons to learn from yesterday's SNB decision...
Authored by Swaha Pattanaik, originally posted at The NY Times' Dealbook,
Central bankers have to live up to high expectations. Investors and politicians expect them to control inflation, prevent deflation, promote growth and keep the financial system healthy. The Swiss National Bank, an above-average institution, has failed at two simpler tasks, keeping its word and preventing destabilizing currency moves. The lessons for the rest of the world are scary.
After three years, and without either notice or much of an explanation, the Swiss abruptly ditched their cap on the franc’s value. The franc promptly surged 40 percent against the euro before giving back more than half its gains. Investors and Swiss firms were in uproar.
The first lesson is never trust a central banker when he or she makes a commitment or gives guidance.
The Swiss National Bank was considered a reliable institution with a firm grasp on policy. After three years of relying on what it called the cornerstone of monetary policy, it let the edifice tumble. In the messed up world of high debts, slow growth and negative rates, other central bankers can change their mind in equally disruptive ways.
Next, don’t expect miracles in the fight against deflation. Swiss consumer prices are already falling annually, and cheaper oil will weigh on them further. Yet, the Swiss central bank decided that a higher franc, which will increase deflationary pressure, was a lesser evil. European Central Bank chief Mario Draghi wants to do anything and everything to resurrect euro zone inflation. He may not manage.
Finally, don’t believe central banks are omnipotent. Swiss monetary policy did not work as planned. The Bank of Japan, and the European Central Bank, which is expected to launch a government bond-buying program soon, may not be any more successful. The Federal Reserve and the Bank of England do not have to worry much about stimulating growth now, but if they do, their arsenals are depleted.
Politicians have left a lot of the hard work of stimulating growth and inflation to the politically independent central banks. It is high time for elected leaders to take more risks.
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The first leeson when dealing with central bankers:
1) Shoot first
2) deal with hem later.
Yup.
We will not monetize the debt.
- Bernocchio
Tomorrow’s Headlines:
The Swiss National Bank has filed for bankruptcy.
The head of the SNB, Thomas Jordan, committed suicide by shooting himself with a nailgun 243 times.
The Swiss government has announced the immediate dropping of the Frank and adopting the Greek Drachma as the national currency.
The referendum to join the Russian Federation is to be held on Saturday, January 24, 2015.
If the referendum fails, next morning Switzerland declares war on Russia and unconditionally capitulates 10 minutes later. ;-)
Looney
My point, exactly.
Full faith and credit.
They need an EUR czar. With all the damage that thing has caused you would think that it would be treated at least on par with Ebola.
pods
If traders can't even trust thier own central bankers then what can we rely on? Central banks are supposed to uphold their dual mandate of maximum employment and stable prices. How the hell does the SNB's decision create stable prices??? I've always traded on the principle that central banks will manage the economy professionally by keeping prices at sensible levels and preventing events such this ... THIS IS THE WHOLE PURPOSE OF CENTRAL BANKING. If I can't rely on this, then I don't know who to believe!!! Investors need to know that CENTRAL BANKS ARE WATCHNG THEIR BACKS!!!!
The Swiss probably do want a cheaper Swissie but doing it with the peg became too costly. They are probably looking for other ways to lower the value.
One other thing. I thought we want to hunt down and kill countries that manipulate their currency but everyone is now hating on SNB for ending the manipulation of their currency.
"It is high time for elected leaders to take more risks."
The stupidity that passes for analysis.
It is time to restructure and repair not to take risks - that time is over.
Jackass:the movie was not a howto......
But Central banks don't care if they create money out of thin air and it either goes out of country or is hoarded by Private Executives or Wealthy Investors... No Inflation in that case.
Off shore Jobs... No Inflation in that Case
No Money Velocity, No Multiplier Effect, ... No Inflation in that Case either
Systemic Deconstruction of US Economy... No Problem, No Inflation.
- Dual Mandate today is just one Mandate, you missed the Memo, FED doesn't care about Jobs or Unemployment, unless you mean a Dual Mandate to watch Deflation & Inflation??
The Swiss were "Gaslighted".
Banksters.
They earned that name.
Well, banks are a good idea in general, so long as they actually have to accept the risk of their own actions.
For example, I propose a banking model whereby if they cannot produce your money, they must give you their own or their fucking head.
Don't make banking more complicated than it has to be "folks".
The first lesson in posting:
1) Don't post while talking on the phone.
Hmm, these banksters are over the cliff edge, holding onto a rope. The only solution, which they will not countenance is...LET GO OF THE ROPE!
Complete BS. A policy is not a promise. Policies by a governing body are subject to change. Promises (in the form of contracts) are legally enforceable.
That you, Mr. Holder?
And if you think central banking isn't a competitive business, well, you just witnessed that it is. Central bankers are not your friends. They are each presumably trying to do the best they can to fulfill their mandates related to the economy over which they have jurisdiction--that can and frequently does conflict with other economies and other central banks and yes, the trade positions of those trying to make money by front or back running CBs policies.
Don't be a whiny faced bitch--trade accordingly and manage your risk appropriately.
Central banking is not a business at all. CBs are agents of coercive policies that separate people from the fruits of their labor.
A more apt definition of a CB is a racket. Nothing more, nothing less.
pods
my scotch always tells me to use lots of words.
Nicely put, although I might be more specific and say fractional reserve banking. Remember, banking actually started out by holding/storing real fucking assets. Asset that they kept safe or lost their fucking head over. In other words, like other business, they had to deal with real risk. Fractional reserve banking and the printer changed all that.
ml8, tell that to C Lagarde, at IMF she's a little pissed right now. ps which beauracracy pays you, not the same EU agency as Ghordius? as to trying fill mandates well there are public ones and private ones wink wink.
Please asshat, there is no longer any risk for bankers. That's the fucking problem. It will change motherfucker. You fuckers have stolen enough. Go ahead motherfucker, beg for another bailout, I triple dog dare you.
CB is Racketeering & Treason. FX Exchange is probably a Racket too. These guys just "Gaslight" everyone into thinking it is hard. Just like writing out long Legislation to put on top of reams of other Legislation. Tax Code of 70,000 Pages. WTF?
- You can't come up with one reason why we need Central Banks
- We can set up Regional Centers for Cash Notes in the Event of a Bank Run
- Leader of Last Resort, Discount Window, we know they should have called it the Government Printing Office from 2008-2011, we don't need that if we don't export Fraudulent Derivatives and have to bailout foreign governments to prevent war
- Look at Domestic Private Investment Levels, Look at Capital Equipment & Facilities Expansion... these are small numbers compared to the $1.7 Quadrillion in Global Derivatives, WTF?? USA is the Richest county, but we don't have anywhere near $1 Quadrillion in Assets & Stocks & Bonds
- CBs are very cool with Exporting Jobs & Industry & Military Secrets & National Technology (They are Vultures)
- CB are cool with new minimum wages & Obama Care Taxes... and they don't have a problem with Augustine's Law, the exponential Increases in the Cost of US Military & US Weapons... So they don't count Food, Shelter, Health Care, Social Security, Education, or Military Costs in Inflation... and Fiscal Policy is not their Bailiwick... Even though Federal Spending is Exponentially Growing & represents Half of the Economy Now
NO, I'm sure we can't find a single reason to have a CENTRAL BANK... Not when they are all on the Take, and True Pirates, True Racketeers.
Hey, I'm not here to defend central bankers. They distort the hell out of markets, artificially supress interest rates, skew currency relationships, etc. Again, the distortion wrought by the SNBs policies could not be made more clear than by the massive moves in currencies around the world after they removed their constrictive policy on the Eur. But we all know that. And we all have to deal with it. If you want change, go lobby your government to audit your local CB or abolish. I don't give a care.
But if you trade, don't act like this is some big surprise. It's happened countless times through history, and it's going to happen again. Probably very soon, for example after Japan's CB is forced to step in and defend their currency and then have to give up when they run out of firepower as their entire econmy collapses.
But to claim that a CB policy is a promise? That's bullshit whining. If you trade on that basis, you're a fool.
And yes, I know CB'ing is a "business" but it is a competitive undertaking when it conflicts with the interests of other economies.
Live be central bank, die by central bank. It is not a business, it used to be, back when bankers had to put up their OWN wealth if the bank went under.
Go ahead, beg for a bailout, just one more time...
I totally agree with you that there is too much moral risk inherent in commercial banking. And TBTF banks should be broken up. Our economic and banking system is big enough that there should be no such thing as a bank that is too big to fail. IMHO, if SIFI has declared your bank systemically important, then you're in violation of the anti-trust laws by virtue of the fact that you have too much market power over your fellow banks, insurance companies, etc., and your company should be immediately broken into smaller chunks that, individually, could be allowed to fail.
CBs, I would argue, are an entirely different animal. They regulate commercial banks. If you have a problem with the way they do that, go lobby or propose new legislation that's better. Think an individual person can't do thatj? Wrong-o. It can and has been done. You can argue that CBs have moral risk but if so it's a kind entirely different from a normal commercial bank.
Investment banks should be separated from commercial banks. That part of Glass Steagall should be re-instituted.
Banks that bitch about needing economies of scale to compete in the global market? Too f'ing bad. We shouldn't put our economic system at risk just so banks can "compete" (read: make more money). Oh, and if you're a foreign bank and want to play in our markets? Comply with our laws or go back and bank in your own country.
Sorry, meant to say it *isn't* a business. Typo.
Bank on it - has lost its meaning.
or perhaps it has a new meaning.
Bank on it ...has a new meaning......bank on it.
....Bitchez
I know how to eliminate the CB's problem of having to live up to high expectations. Eliminate the CB.
Fixed! Booyah!
"Finally, don’t believe central banks are omnipotent."
Never did
"The last duty of a central banker is to tell the public the truth." - Alan Blinder PBS
The first duty as a god on earth is to lie your asses off to the donkeys.
Dafuq is going on with CU?
The first lesson is never trust a central banker when he or she makes a commitment or gives guidance.
Not only that but you better keep a close eye out on your kids if they're around.
never trust a central banker who can squat on pumpkins and make them disappear, right yellen?
most of them are from the tribe...
The 50 most influential Jews of 2014 | Jerusalem Post
1. Jack Lew, Secretary of the United States Treasury
2. Janet Yellen, Chairwoman of the Federal Reserve
14. Stanley Fischer, Vice chairman of the US Federal Reserve Bank-former head of the bank of Israel
http://www.jpost.com/Jewish-World/Jewish-Features/The-50-most-influentia...
Caveat Argentarius...always
After three years, and without either notice or much of an explanation, the Swiss abruptly ditched their cap on the franc’s value.
The only way they could have done this was with no notice or explanation. Even hinting that it was possible would have had the same effect, but more drawn out and with more confusion. Once decided, it's better the way they did it. Now people can adjust.
Also, notice that when something is important, all the jawboning goes out the window. When Russia saw a threat to their border, they took Crimea. No words, action.
Same thing here. This was clearly not something they were "thinking about". There was no room for discussion, only acting. Now it's done.
On the whole I think "Preparation H" feels good. [/dr. evil]
Traders thought they had found a way to make some easy money.
The Central Bank acted rationally under these conditions.
+1 and -1 for you Batman.
To buy silver and gold coins and reject their fake script,to protect
yourself from hidious wealth confiscation trough inflation.
lesson 101
When I was younger high inflation helped quickly erode the pain of my mortage repayments.
The younger generation will never experience this.
Or to sum up the advice given to Navin Johnson (played by Steve Martin) by his cousin in the movie The Jerk "Never Trust Whitey". Of better yet "If you get it, see a doctor and get rid of it". Well, never trust a CB and at this stage, we've all "got it" so we better find a way to get rid of it.
Pushmi-pullyu bankers at work.
Central bankers push one way, traders pull the other way.
Be careful this upcoming THREE DAY WEEKEND !!!!!!!
Oh no cheaper prices. Oh the humanity of it all.
When dealing with someone that thinks they are a god. Bring a wood chipper and test them with it.
Good thing I've been long BTC since last summer. None of these crazy price moves for me.
Comments from the investment banking and trader communities make it sound like the CBs owe it to them to announce their intentions.
Which really tells you all you need to know about who CBs work for.
Lesson 2:- Central banks only operate to benefit the entitled elite not the vast majority of the population.
As for deflation, an abstract concept where ...
Through leverage and pretending we had growth with all the money creation over decades leaves a whopping great hole to fill if it kicks in. YEP GOT THAT!
Disaterous for sovereign debts that were *never* supposed to be repaid, only the interest, stuffed now as all government can do would be to tax and pay down debt under falling earnings but as deflation kicks in the market pressure to pay less will start to gear up == the coming poverty. Minimum wage won't work because you can't go up, holding the same becomes less competative so has to fall. YEP WE GOT THAT TOO!
For the dumb central bankers, the deflation can only fall to the minimum price but what is it? What is the minimum price? You have been stimulating upwards for so long you don't recgnise it anymore.
*** Affordabilitiy at the lowest level. ***
SOMETHING COLLAPSING FROM SAY $100 IF THE MAXIMUM A POOR PERSON CAN PAY IS $50 IT WILL START TO STABILISE AT THAT PRICE.If the poor person can never afford it the price collapse == $0.
That's where this is all heading from the central bankers position in cahoots with the sovereigns.
I could go off on one but I reckon that when you examine fiscal policy everywhere there is ONE NOT ONE OF THEM CAN OR WILL DO AND YET IT WOULD MINIMISE THE ECONOMIC DAMAGE.
*** Close the wealth gap ***
*** Nationalise the banking system ***
The price of anything actually falls in the wealth gap and raising the bottom it hits a limit quicker where it starts to stabilise. Nationalise the banking system to support the wealth gap across the total population as what we have has is print by the elites for the elites making the problem a whole lot worse.
Kill Them Before They Kill YOU!!!
The First Lesson In Dealing With Central Bankers: BUY SILVER BULLETS
The SNB is the smartest monkey in the room.
Make no hints under oath of death.
Drop the bomb.
Walk away while putting on a sweet pair of Persols.
"Make no hints under oath of death.
Drop the bomb.
Walk away while putting on a sweet pair of Persols."...
"."
Don't we wish some American bankers were dumped off the top of the Empire State or Freedom 1 by now for 2008?!!!...
What happens when greed turns into pure stupidity! Or is it insanity???!!!
Take your pick
The banksters are thieves.
Why would anyone trust a lying, stealing, and murdering thief?
The banksters need to repay us.
this article is beyond silly and naive
1. " Investors and politicians expect them to control inflation, prevent deflation, promote growth and keep the financial system healthy. " BS
2. "After three years, and without either notice or much of an explanation, the Swiss abruptly ditched their cap on the franc’s value. " it should be obvious that the euro is on the skids. why sacrifice the CHF?
3 "The first lesson is never trust a central banker when he or she makes a commitment or gives guidance. " i thought greenspam taught the world that lesson.
4. "Swiss consumer prices are already falling annually, " this is bad?
5. "Yet, the Swiss central bank decided that a higher franc, which will increase deflationary pressure, was a lesser evil. "
tell me what the other evil is again? right now Basel is running extra trains and buses to accomodate shoppers going into DE.
6. "European Central Bank chief Mario Draghi wants to do anything and everything to resurrect euro zone inflation " staggering unemployment rates throughout euroland inflation is what it needs, right on.
7 "Finally, don’t believe central banks are omnipotent. " no s*it they are all failing where have you been?
8. "Politicians have left a lot of the hard work of stimulating growth and inflation to the politically independent central banks. "
name one 'politically independent central bank' - just one.
"Swaha is a columnist for Reuters Breakingviews. She has been covering financial markets and policymaking for 22 years, "
22 years hmmm
The Federal Reserve does have to worry about stimulating growth because they put all the Neo-Keynesian 'stimulus' into the stock market and banks, so they could blow more bubbles for the masses in indentured servitude to the CB, and addicted Wall Street money junkies.
Monetary heroin is a money junkie's living and without the FED they would all have to find a new drug dealer on Wall Street.
END the Crack-House FED and the Opium Den Bank of England we
have too many addicts on the loose.
The first lesson in dealing with central banks is NOT merely that they lie, but that their lies are backed up with violence! Generally speaking, because the whole history of civilization was based on backing up lies with violence, almost nobody can gain proper perspective upon that situation, and even IF they somewhat do, the actual situation continues to be Huge Lies, backed up by Lots of Violence, as the basis of the entire economic system.
Most articles republished on Zero Hedge, like the one above, operate within taking for granted some level of the systems of lies and violence, as if those were not based on backing up lies with violence. That enables relatively silly parroting of some level of the established and entrenched systems of lies being presented as if those were not lies. For instance, the rather ridiculous conclusion of the article above, which makes goofy presumptions on so many levels, that I will not bother to go through them all systematically. Rather, I will simply REPEAT the basics, for those who may care to consider those:
The relatively simplicity and antiquity of the book by Sun Tzu on the Art of War makes it one of the most important to contemplate. It starts by stating that success in war depends upon deceit, and ends by stating that spies are the most important soldiers. Civilizations and states were made by the history warfare selecting for what survived through the crucible of conflicts. As power blends into information, so then the War Kings morphed into the Fraud Kings.
Neolithic Civilizations are social pyramid systems based on "successfully" backing up lies with violence, which is why central banks are based on controlling the ENFORCED FRAUDS, which are the foundation of our political economy. The paradoxical nature of social successes based on being able to develop more and more sophisticated systems of social slavery, through systems of legalized lies, backed by legalized violence, drives society as a whole to become more and more criminally insane.
The article above is classic Zero Hedge fare, since it grossly underestimates the degree to which society is being controlled by the principles and methods of organized crime, whose "success" creates the greatest possible instability, due to its profound contradictions that successfully being able to control civilization through being able to back up bigger lies, with more violence, inevitably drives that society as a whole to become too criminally insane to be able to cope with that problem by anything that can operate within its own frame of reference!
Basic central bank behaviors:
INSIDE JOB DRIVEN CRISES.
CENTRAL BANKS are the core of established systems of ENFORCED FRAUDS. Almost everyone else gets screwed by those runaway frauds, while only a few benefit (at least in the short-term), from the frauds of banksters being enforced by governments. Even worse, people end up with profoundly irrational attitudes towards the "real" world, since their social situation is based on "successfully" adapting to live inside of systems of ENFORCED FRAUDS, which appear to blatantly violate the basic laws of nature. ACTUALLY, CENTRAL BANKS ARE THE CORE OF CONTROLLING CIVILIZATION THROUGH THE METHODS OF ORGANIZED CRIME. Their "successes" have created almost incomprehensible levels of INSTABILITY!
NONE of the dictionary definitions of the words that most people use to attempt to discuss the social situations actually apply very well, rather than mislead more. The single best word is "plutocracy," however that is not correct either, because the greatest "wealth" of those plutocrats is to be able to make the public "money" supply out of nothing. The Central Feature of Central Banks is their legal ability to create endless amounts of "money" out of nothing, while that public "money" supply is something that everyone else is forced to work for, and pay taxes with. Moreover, another crucial feature of Central Banks is that they are all effectively under Private Control. The policies of the Central Banks are coordinated through an international system set up by international bankers:
As historian Carroll Quigley wrote:
"powers of financial capitalism
had another far-reaching goal,
nothing less than to create a
world system of financial
control in private hands
able to dominate the
political system of
each country and
the economy of
the world as
a whole ..."
However, that REAL history is more like ancient archeology now, because the successful creation of those ENFORCED FRAUDS, which have become electronics backed by atomic energy, has driven the BIG BANKS to become inconceivably BIG expressions of runaway crazy corruption, to the point where the little lives of flesh and blood people, inside the physical markets are relatively trivial factors, within the virtual reality using "money" made out of nothing to speculate with, since that virtual reality now exceeds the physical reality of physical markets by orders of magnitude, similar to the degree to which electronics and atomic energy exceeds the common sense of the vast majority of people.
After one recognizes that all the "money" that the vast majority of people use to buy food and fuel, etc., is now but a TRIVIAL aspect of the established economic systems, the REAL problems are so BIG that the lives of ordinary flesh and blood people no longer matter to the virtual world of finance based on runaway, triumphantly enforced frauds. The overall situation is that the financial world is dominated by a collective group of trillionaire mass murderers, while nobody else is remotely close to being in their league.
Since almost everyone has adapted to living inside of dominating empires based on systems whereby the public "money" supply could be made out of nothing, in order to "pay" for strip-mining the planet's natural resources, there is not any reasonable hope in hell that enough people will ever understand the levels of absurdity found in the conclusion to the article above:
"Politicians have left a lot of the hard work of stimulating growth and inflation to the politically independent central banks. It is high time for elected leaders to take more risks."
The Big Picture is that the ability to continue to strip-mine the planet's natural resources, through being able to make the "money" to pay for that out nothing, is reaching real limits of diminishing returns. There are NO good reasons to believe that enough of the masses of muppets that vote for the banksters' puppet politicians are going to be able to face those basic facts. Rather, almost everyone continues to presume that the ways that they perceive the world are not based almost totally on the psychotic bullshit of bullies.
The surreal situation where the "money" made out of nothing to gamble with is orders of magnitude bigger than everything that flesh and blood people ever actually pay for, using the same public "money" supply, requires facing some extremely distressing basic facts. Our fundamentally fraudulent financial accounting systems HAVE enabled us to live AS IF there were more than 10 extra planet Earths, inside of the virtual world created by the banksters' abilities to have their frauds enforced by governments. Anyone who thinks we could fix the problems that exist when everything that operates now is based on pretending there are more than 10 more planet Earths in the virtual world, than in the real world (because that virtual financial world is based on systems of electronic monkey money, backed by apes with atomic bombs), is NOT remotely close to being in the order of magnitude of what those problems ACTUALLY ARE.
There is no rational way to imagine what the possible "market corrections" could be, when the ERROR was based on acting like there were more than 10 more additional planet Earths!
Overall, a good argument can be made that the ratio is more like 100 to 1, rather than merely 10 to 1, while that is headed towards becoming 1,000 to 1 at an exponentially accelerating rate. For example, it appears there is 100 times as much electronic and/or paper "gold" as there is physical gold, and similar situations appear in every area that one more critically examines! The accumulated CONTRADICTIONS between the imaginary, virtual, financial world, based on government enforced bankster frauds, versus the real, physical world, ARE AT LEAST AN ORDER OF MAGNITUDE OFF!
The banksters are surely driving one INSIDE JOB CRISIS after another, in order to advance their agenda. However, their agenda is criminally insane. Of course, it appears to make no significant practical difference to understand that, nor to try to develop a language to describe that which is not totally bullshit, because our social systems are almost totally based on bullshit.
At present, the banksters' bullshit is overwhelmingly dominant. The only publicly significant opposition is controlled, to be reactionary revolutionaries, who are supposed to be waking up the mainstream morons, to understand the social facts, but which never propose realistic solutions consistent with those real facts. THEY NEVER PROMOTE BETTER SYSTEMS OF ARTIFICIAL SELECTION, CONSISTENT WITH NATURAL SELECTION. Instead, the vast majority of the reactionary revolutions stay WITHIN the biggest bullies' bullshit world view, still using the same bullshit language.
Since the fundamental system is based on being able to make "money" out of nothing, which fraud is enforced by governments, which operate through enough of the masses of muppets that vote for the banksters' puppet politicians, there are NO good reasons to expect anything else can happen than the established systems of enforced frauds will be driven through wilder oscillations, towards overall psychotic breakdowns. It would take profound, pervasive, social psychiatry, for enough people to understand enough of the degrees to which they were brainwashed to believe in bullshit, in order to possibly pull out of the vicious spirals of enough of the masses of muppets that vote for the banksters' puppet politicians.
The banksters are deliberately destroying the middle class, and the kinds of social systems which would allow those kinds of middle classes to exist. However, that is because the ruling classes rule by being the best organized gangs of criminals, who have successfully waged war against those they rule over so much, for so, long that the vast majority of the middle class are mainstream morons, utterly brainwashed to believe in bullshit, while the mostly desultory efforts to educate them are conducted by the controlled opposition of reactionary revolutionaries, who continue to operate within the same frame of reference as the banksters' bullshit social stories, because almost nobody would understand anything else.
The only ways which theoretically could work better would be to understand human realities as manifesting general energy systems, which end up best described by the principles and methods of organized crime. I.e., human realities are ALWAYS organized lies operating robberies, with the banksters operating the most abstract forms of frauds, as symbolic robbery.
However, generally, almost everyone continues to think through using DUALITIES based on false fundamental dichotomies, and therefore, propose bogus "solutions" based on impossible ideals. All of the generally understood and used language about politics and economics is almost totally BULLSHIT. There are realities behind that, but practically NO good language, with good labels, to be able to discuss those realities. Instead, we are operating a civilization based on enforced frauds, which are automatically becoming more criminally insane, the more successful they are. ...
THOUSANDS OF YEARS OF SOCIAL "SUCCESS" BASED ON BEING ABLE TO BACK UP LIES WITH VIOLENCE HAVE BECOME THE SYSTEMS OF GOVERNMENT ENFORCED, BANKSTER FRAUDS! Hence, the wilder oscillations being observed, which are surely going to get wilder still! However, while there will be plenty of destruction of the lower classes that are being ruled over, the ruling classes do NOT deserve to be referred to as the "elites." They merely have psychological and political habits which enable them to back up lies with violence, while the lower classes have social habits were are used to that happening. Overall, the ruling classes are criminally insane, while those that they rule over are also criminally insane.
The entire human species has become way too good at lying to itself, because within human societies success was achieved by backing up lies with violence, therefore, our political economy is based on enforced frauds, within which systems the central banks and the most obvious symbols, as the Kings of Fraud. However, being the Kings of Fraud actually means that the central banks are the most criminally insane, central components of an overall criminally insane civilization.
There is no good language to discuss relatively more object facts, because the central social facts are the control of society through systems of enforced frauds, as seen by how central banks can make "money" out of nothing, and do so to deliberately drive crises, in order to move forward their overall criminally insane agenda, while those they rule over are similarly too criminally insane to be able to comprehend that, because they have been conditioned to not want to understand that. Therefore, the language that almost everyone used to discuss these situations is almost totally based on bullshit, while even those who try to understand things better tend to still be stuck inside of using bullshit language to explain those social situations. Hence, it is typical for Zero Hedge articles to grossly underestimate the magnitude of the problems that they are discussing, such as to make the kind of statements above.
In my view, it is impossible to exaggerate the degree to which controlling civilization through being able to successfully back up lies with violence has resulted in that civilization overall becoming criminally insanity headed towards instabilities on the scale of collective psychotic breakdowns and severe social storms. The apparent "success" of the central banks, as the biggest gangsters, able to control governments, DOES HAVE A GLOBAL AGENDA. However, there are no good labels for that, because it is actually the trajectory of the application of the principles and methods of organized crime, which ultimately are CRIMINALLY INSANE, and become more so to the degree that they continue to be socially successful.
While I believe it is theoretically possible to develop a better language, and ways of labeling the phenomena, the groups of people who would like that are vanishingly small. Meanwhile, the groups of people who continue to want to believe in bullshit, and use bullshit language. are overwhelmingly dominant, not only in the ruling classes, but also throughout the controlled opposition.
The banksters plan on continuing to deliberately cause crises that enable them to ramp up their ability to control society through systems of legalized lies, backed by legalized violence. However, exactly to the degree that they are successfully able to enforce more and bigger frauds, then civilization as a whole will become more criminally insane. The banksters will surely be able to continue to destroy the lives of the Zombie Sheeple and mainstream morons, or the masses of muppets. However, that does NOT mean that the banksters agenda is not criminally insane, rather, the more successful they are, then the more criminally insane they become, due to the inherent nature of the increasingly severe contradictions that controlling civilization through backing up lies with violence.
In that context, the destruction of the natural world driven by fundamentally fraudulent financial accounting systems is way worse than the social polarization driven by those frauds. There is NO good language which is generally understood, in order for enough people to be able to be more realistic, since there has been thousands of years of dominating society through systems of backing up lies with violence, which have resulted in almost TOTAL DOMINANCE OF ALL NATURAL LANGUAGES, AS WELL AS THE PHILOSOPHY OF SCIENCE, BY BULLSHIT!
The political paradoxes driven by each increment of being able to SUCCESSFULLY enforced frauds have created social systems which are criminally insane, and therefore, headed towards a series of psychotic breakdowns, whose degrees of INSTABILITY are impossible to fully imagine! However, practically nobody who was socially successful operating within those systems in the past is able and willing to understand the deeper levels of the more radical truth about that, and even if they attempted to do that, there is no generally understood language which can be used to communicate those insights with any other significant number of people.
I think this article is very bad advice. It encourages the reader to place himself against the CBs. It makes the reader arrogant (I know better than these stupid central banksters). Which is stupid. A good article would advice the reader not to place himself against CBs, until it is better to do so. To get the judgement right, is difficult, not easy. But to say "do not trust CBs" is deadly for one's portfolio, because it's not about being right in the long term, it's about making money and that means not to be too long on the wrong side of price movements. Being early is being wrong, too!
One should not believe in the biggest bullies' bullshit, but one should recognize the real degree to which they CAN back up their bullshit.
That applies to the banksters more than anyone else, which is why your view, Againsthelie, is practical. As my comment above emphasized, the banksters' power is based on ENFORCING FRAUDS, and therefore, understanding that they CAN enforce their frauds is necessary to realistically attempting to cope with the ways that they CAN control the political economy. Understanding systems of organized crime does NOT make them disappear, since one still has to deal with them.
Of course, that gets harder and harder to do, since their basic system of enforced frauds automatically gets worse, faster, due to its inherent structure, which makes the oscillations driven by those processes wilder and wilder. It is extremely difficult to predict unprecedented events. The basic history of recent times has been one new flabbergasting level of enforced frauds, after another!
It is my overall view that is it extremely tragic to "successfully" make "money" within the established systems, since one has to adapt to living in a criminally insane society in order to do that. It is tragic that there is practically no other way to live than through participating in fundamentally fraudulent financial accounting systems. Doing that is a kind of an increasingly paradoxical "sanity:"
It is no measure of health
to be well adjusted to a
profoundly sick society.
--- Jiddu Krishnamurti
They are normal not in what may be called the absolute sense of the word; they are normal only in relation to a profoundly abnormal society. Their perfect adjustment to that abnormal society is a measure of their mental sickness.
--- Aldous Huxley
maybe the snb took it's fiduciary responsibilities seriously.
it was not founded to be a globalist tool.
pegging your currency automatically puts you into the soros fish tank, ask the boe..
want some interesting reading, look at which countries didn't have a BIS. central bank 20 yrs. ago, and what happened to them before getting a BIS cb., and the progression.