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Saxo Bank Warns "This Is The Endgame For Central Banks"
From Steen Jakobsen, CIO & Chief Economist, Saxo Bank, via TradingFloor.com,
- Why oh why do we trust central banks?
- Central bankers are politicians' puppets
- This is endgame for the central banks
The Swiss National Bank's removal of the franc's peg to the euro last week had far-reaching consequences because we were all taken by surprise. The fact that it would (and should) happen eventually was not lost on the market, but the SNB was as late as last week end talking tough and telling the market that the floor was an integral part of Swiss monetary policy – until it suddenly wasn't any more.
I fully understand the rationale for the move (Jakobsen: SNB move is rationality itself) but like most of the market I'm extremely disappointed in the SNB’s communication and handling of the issue, but that’s the bigger lesson: Why is it most people trust or bother to listen to central banks?
Major central banks claim to be independent, but they are totally under the control of politicians. Many developed countries have tried to anchor an independent central bank to offset pressure from politicians and that’s all well and good in principle until the economy spins out of control – at zero-bound growth and rates central banks and politicians becomes one in a survival mode where rules are broken and bent to fit an agenda of buying more time.
Just looks to the Eurozone crisis over the past eight years – if not in the letter of law, then in spirit, every single criterion of the EU treaty has been violated by the need to “keep the show on the road”. No, the conclusion has to be that there are no independent central banks anywhere! There are some who pretend to be, but not a single one operates in true independence.
Let's get real — central bankers aren't autonomous. Pic: Jakob Ammentorp Lund
That’s the reality of the moment. I would not be surprised to find that the Swiss Government overruled the SNB last week and the interesting question for this week is of course if the German government will overrule the Bundesbank on quantitative easing to save face for the Eurozone? Probably….
The new dimension of central banking is the “communications policy” which is not only the poorest policy but also only really a front for “talking the market into believing our dream” without any further action.
Look at the Federal Reserve forward-looking guidance: They are constantly over-optimistic on growth and inflation. Constantly. The joke doing the rounds is that to get the proper GDP and inflation forecast you merely take the Fed's own forecasts and deduct 100-150 bps from both growth and inflation targets and voila! You have best track record over time.
Studies shows that the business cycle was less volatile before the Federal Reserves was born. The birth of the Fed meant leverage (gearing) which of course has resulted in bigger and bigger collapses of the economy, but with a trend of major crashes increasing in frequency: 1987 stock crash, 1992 ERM crisis, 1993 Mexico “Tequila crisis”, 1998 Asian crisis and the Russian default, 2000 NASDAQ bubble, 2008 stock market crash, and now 2015 SNB, ECB QE, Russia and China and what's the next crisis?
I don’t know, but clearly the world of finance and the flow of money is increasing its velocity meaning considerably more “volatility”. By the way, the only guarantee I issued at the end of 2014 looking into 2015 was:
Where does this all bring me? The SNB's action was really the culmination of bigger and bigger moves at the end of a low volatility paradigm. I have been trading currencies for more than 30 years, Thursday’s move was single biggest move I have experienced in one market. But let’s look at other remarkable moves this year:
Oil has dropped more than 50%
Source: Bloomberg
Russian ruble falls off a USD cliff
Source: Bloomberg
EURNOK had it biggest move in many, many years (15% in space of a few days)
Source: Bloomberg
EURCHF move in comparison:
Source: Bloomberg
Even overnight, the Shanghai index dropped more than 7% – the biggest move in years on margin calls:
Source: Bloomberg
The lesson is clearly that the market has been trying to tell us for a long time that volatility was a function of an economic model of suspending the business cycle. When you suspend an economic system such as the world markets for an extended period you ultimately release more energy when the business cycle starts anew.
We started the year with Maximum Dislocation of the market in a model of planned economies. We have bond and credit spreads at historic lows, currencies at extremes, equities and real estate in bubble-like valuations, and a geopolitical risk which keeps rising as seen this year in Paris, last year in Ukraine and also the rise of ISIS.
The US dollar is putting pressure not only on US itself but also the world. A journalist asked me last week: Who benefits from a stronger US dollar? I still owe him an answer because very few benefit. In fact the world has two growth engines: The US and emerging markets. Both are pretty much US dollar economies. Debt (US dollar funding) in EM has exploded to an extent that many including the World Bank now call a for risk of “Perfect Storm in EM”. Both US and EM became credit junkies over the QE-to-infinity era in the US. The law of unintended consequences.
Another unintended consequence was that energy was the trigger for the crisis in 2008 as rising energy prices took five trillion US dollars out of the economy – which became the catalyst for the Eurozone crisis and US banking bailout. Now eight year later the drop in energy has broad spillover effects as the wealth is transferred from sovereign wealth funds in resource countries to consumers.
That’s good for Main Street and bad for Wall Street as the “bid” in the assets disappear as these sovereign buyers needs to draw down on their wealth instead of buying overseas assets. Similarly, will a direct impact from SNB not having a floor be less NASDAQ buying which famously SNB had in its portfolio?
Meanwhile the fact that volatility is rising, the fact that we see early signs of the business cycle being activated, is good for the real economy. It’s a sign of money flowing from the 20% QE induced overvalued listed companies to the 80% SMEs (the real economy) as increase in volatility will make expected return less in “paper money” and more attractive in tangible assets and good business.
The world should be concerned when volatility is too low, it’s a sign of the market not allocating money correctly. The one lesson everyone needs to learn is that for a market based economy to function you need to allocate capital to the highest marginal real return of capital. Not to the most politically connected.
When history of 2015 is written I have no doubt that the Paris terror act and SNB's removal of the floor will stand out – both happened less than two weeks into 2015, although that is random, what is not random is that market volatility has been rising directly and indirectly through a misallocation of capital directed by the central bank system.
Endgame for central banks – no more tools, no more options. Pic: iStock
Many central banks will envy the SNB for its move last week, as it at least tries to regain some control of its future, but the conclusion remains: central banks have as a group lost credibility and when the ECB starts QE this week the beginning of the end for central banks is completed. They are running out of time – that’s the real real bottom line: the SNB ran out of time, the ECB will runout of time this week, and the Fed, Bank of Japan and the Bank of England ran out of time in 2014.
What comes now is a new reality – the SNB move was a true paradigm shift – we can no longer look at central banks, the markets and extend-and-pretend in the same light as we did last Wednesday (the day before the SNB pounced).
The king is dead, long live the King.
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Author not write to good.
Need to work on speaking the English...
Russian Ruble falls off a USD cliff
Methinks, it was pushed.
Along with oil.
Poor Central Bankers. Is that what we are supposed to get from this?
pods
Still really looking forward to "Fox and Friends" telling their 4 viewers that "no one saw this coming" the day after the crash.
mistakenly i thought central banks have been historically private ... silly me.
those politicians we elect in office seems to be the ones ...
in final analysis, we have none to blame but ourselves since we elect them ,,, and so on... thanks Saxo bank
Divert, deflect, delay and deny..
Oh, you’ve just got to really feel for those poor central bankers who are just puppets of the politicians..
Who are just puppets of the lobbyists and special interests..
Who are just puppets of the bankers and financiers..
Who own the central banks.
The indecision and lack of conviction from our monetary leadership is very worrying. We desperately need a unified global monetary policy in order to effect lasting economic changes in the global economy. I fear that if our leaders cannot come to a concensus on what is needed for world economy, we may be forced to set up a global governing body with the power to override the decisions of the nation states. This will allow us to enact monetary policy at a global level and create economic stability and growth across the globe in the most efficient manner possible, although it will also come with a loss of sovereignty and will be widely resented by nationalist and right-wing interests.
Central Banks are under the control of politicians? Bahwahahahahahha... He told a funny...
We need monetary union now. It's time for those who care about the global economy to stand up and say enough is enough.
If you believe that a global governing body that answers to and repreesnts the people is the only answer, then stand up for your rights NOW and put an end to this madness!
MBD, that is.
Nobody does snark like MDB.
Reels in more ZH suckers than any other chain puller around.
And all because he doesn't wink.
By the way,
What if Bankers and Politicians BOTH think they are the real shot callers while, behind the scenes, Satan laughing spreads his wings? Oh Lord yea-uh.
The penultimate divide and conquer would be to divide and conquer the "divide and conquerors"
Wow, this dude is deluded to think CBs are beholden to politicians... Politicians are just the convenient middle-man, the lackeys of the bankers! LOL...
Why does ZH publish this rubbish? I mean, did we actually learn anything from this article?
Agreed, it's like those Ramirez cartoons, distracting, off topic, and ultimately useless.
Major central banks claim to be independent, but they are totally under the control of politicians.
What?????? That's the biggest joke I've heard in a long time. My reading stopped right there.
aPlayer - There may be nothing new under the sun but I am glad to see this article posted. It is telling where we are in the cycle.
My prediction for 2015 - Epic finger pointing and this article is just the beginning. Oh yeah, umm deflation.
The good news? There is only a few more bites left of the big shit sandwich. I am optimistic about mankinds future but this last portion of the cycle is reaching it's ugly conclusion and for most, it isn't going to be pretty.
I think the truth is more complex than that, actually. Most of the time the banksters are calling the shots, of course, but governments typically have military, police and intelligence services that can bite the banksters in the ass if they don't largely go along with the collective narrative decided on by all of the above.
As far as I can see, they are all part of the same wolf pack, gazing hungrily at the sheep grazing below, but there are still constant fights over exactly who is where in the pack hierarchy. Doesn't stop them being fucking wolves, of course.
MDB is good. I suspect he's really Sacha Baron Cohen.
I like the authors statement that the market is not allocating money correctly...what market?
This is even funnier....what money?
Who is we?
<<We want... We want... We want...>>
Bankers see the guilotines coming, time to find a scapegoat.
"Central bankers are puppets of politicians."
Bull shit. They're puppets of bankers.
What we have shaping up is the end game blame game, which ALWAYS pits politicians versus bankers. Once this comes, they're no longer unified, therefore they will fall.
We are right at the door folks, things are going to get downright biblical from here onward.
I think Ali G (SBC) is too busy fighting Da East Staines Massiv.
Not for American consumption "Coz I is black"
This SAXO guy is a fucking douchebag sociopath just like all the rest.
So I'll just be the first to welcome him to Zerohedge with a Laurel and Hardy: FUCK YOU, STEEN JAKOBSEN!!!
There just may be a nail gun in this fuck-tard's future.
and I would like to thank the Tyler's for posting this sniveling weasel's laughable "article".
It should be the biggest joke on ZH all day today.
YES!!
Let's be clear, it takes a lot of money to get and stay "elected".
Please, the CBs OWN the political class!!!!!!!!
Roll the motherfucking guillotines, starting with this asshat.
Yeah, Steen is just the latest asshole in a long string predicting the end game for central banks. If we've learned anything, it is that they'll NEVER run out of ways to commit fraud and steal from main street. Only guillotines can stop it.
"This SAXO guy is a fucking douchebag sociopath just like all the rest."
Well it takes one to know one.
The people who have profitted from all this fraud are still have power and control.
Only one thing is crystal clear moron. They will not indict themselves or give up that power and control willingly.
Impress us, bring the first guillotine to D.C., and we will join you.
"Those who make peaceful revolution impossible will make violent revolution inevitable." -- JFK
Tick tock, time is running out to mkae sure we get the right people.
MDB, you forgot your /sarc tag.
If you didn't, that song on the fiddle fools no one here.
"MDB" is the /sarc tag.
"we may be forced to set up a global governing body with the power to override the decisions of the nation states."
And who would chose those individuals? Well the existing PTB of course. Right? To maintain the status quo. Right? Isn't that who you work for?
is that you Christine Lagarde?
Manthong is correct. Pimps already blaming the whores for their problems, with the rest of us just mop boys cleaning up the goo left on the floor, at the peep show.
Those guys should be featured on "The World's Most Dangerous Jobs".
Oooooh.....somebody poke my minds eye out...
AAaandd it's gone. Manthong that is.
Tyler the captured.
Little bit of truth....and loads of bollocks.
What a cunt. Enjoy your lucre...
The original Tylers must be turning in their graves...
This could not be more true "banana hammick"
Especially when combined with:
the national and internation complexity of transactions
the complicity of the press
the dumming down of the populace
The indecision and lack of conviction from our monetary leadership is very worrying. We desperately need a unified global monetary policy in order to effect lasting economic changes in the global economy. I fear that if our leaders cannot come to a concensus on what is needed for world economy, we may be forced to set up a global governing body with the power to override the decisions of the nation states. This will allow us to enact monetary policy at a global level and create economic stability and growth across the globe in the most efficient manner possible, although it will also come with a loss of sovereignty and will be widely resented by nationalist and right-wing interests.
Stop it man. You're giving me the heebie jeebies.
I have heard that China is very nationalistic...nationalism isn't just for White guys with little black mustaches.
besides, we already have a unified global monetary policy based on the USD. Why do you think a similar replacement with a different name will be acceptable now that it is clear that its predecessor has failed? When Fiat money dies it is never immediately replaced with a new confidence game Fiat. Failed Fiat is always replaced with something with physical collateral backing.
Yep--'Little inconequesial item "Loss of sovereignty"; the main reason I said 15 years ago that the EURO would fail and with it the European Union was doomed from the start.
It should be apparant to anyone able to read and think at the same time that merging countries B.S. is contrary to what is happening all over the world, People want a smaller managable unit to live in, Certain to break up is the USA--we are and have been moving unconscieously to that position.
One again all the so call brain people (Tribe) have got it all ass backwards. Force and bullying is their answer to everything. Milestones
Retribution motherfucker! Without it, nothing changes. FYI, the chinese are very nationalist.
He craves a messiah to save his crony bankers.
The more we have moved towards globalism the more our standard of living has decressed. Centralization of power has not been benificial.
MDB - very dry sense of humour!
wrong bus again mdb?... ask the bus driver for a transfer slip... he'll pin it on your shirt for you so you can find your way home...
Central bankers may be controled by politicians, but politicians are controled by oligarchs. Remember, Ted Cruz is married to a Goldman Sachs investment banker. Now, if only we could get the list of who actually owns the Fed...
If you follow the money it takes to some strange places.....
Jim Willie has been saying for a year that the Chinese now own the Fed. He says they own JP Morgan too after they bought JP's building last year. Which is also has connected vaults below to the NY Fed. He says our Fed has defaulted on gold lease deals w/ the Chinese and so the Chinese now control them.
Wierd shit....
While that's not outside the realm of possibilities, I would like to see some hard evidence of it. For now, I'll just be content with the idea that I do not know who the shareholders actually are, but when it all breaks, their power and wealth is going to evaporate.
I'll just be content with the idea that I do not know who the shareholders are, but when it all breaks, their power and wealth is going to evaporate.
And perhaps, then, the Nukes will be launched and we will also evaporate.
I will guarantee that this will not end well...for most of us. And I am not content with that idea, whatsoever.
Enjoy the two suns in the sky...
In the end YOU are ultimately responsible for you and your family's own welfare.
Protect your own self.
Yes, legally, you are. But the state is making it harder and harder for us to actually lookout for that welfare ourselves. This is going to be an untenable position.
I still don't get why these authors still persist that they should have been told in advance of the Swiss move.
Why do they
1) Hold that view?
2) Persist in thinking that it is valid for them to get better info than others?
Because everyone bought the BS that "we are all insiders now" and "The CBs are looking out for us insiders".
No one is that stupid.
We are all Muppets now is a more apt statement.
Saxo Bank is wise and good. I reccomend it. They have a great on-line trading platform; and they're not going to go broke. Check it out on Google; it's very interesting, I used to do biz with them.
say it loud... I'm muppet proud...
I'm shocked, SHOCKED I tell you.
and they'll also say you are antisemetic for talking about the central banks
The author is blowing smoke about who controls what. Politicians and central banks are both controlled by ____________. No one is supposed to know who.
All things come to and end.
Unlike king Canute the CB's actually think they can control the tides but still it rises and falls.....
"Politicians and central banks are both controlled by ____________"
The Vatican
Satan. Does it not seem fairly obvious?
LOL, some articles really have to twist a lot so they won't be noticed they came from the villains. This is laughable... just an INEPT propaganda to make a dig against RUssia & China which are out to sal some big villains... the bankrupt Western powers are the ones comatose on life support but they seem to escape direct hits just to deflect the DOOM stories to the supposed enemies. I had a hearty laugh looking at the CONVENIENT graphs against the new heroes- Russia & China- here. I think this kind of squid tactics had had their heydays long ago & only the most clueless can't see thru it these days
Kinda OT, but just think what's going to happen as fiat dies and everyone, and I do mean everyone, scrambles to buy phyzz and mining stocks at these rock bottom all time historically low prices.
The explosion will be unstoppable. So while these banksters mainpulate the market to destroy the mining sector and phyzz prices via the paper scam, who do you think (other than us few stackers) are the ones who are scooping up the phyzz and getting ready to position themselves for the rocket ride in mining stocks once all available phyzz has been squeezed out of the system?
The banksters are running the scam and we just have to play along and keep stacking because they're not going to stop what they're doing.
And look at this news from Revett Minerals this morning:
Revett Minerals places Troy Mine on care & maintenance.6:17 AM ET, 01/20/2015 - Briefing.comCo announced that it has decided, due to low metal prices, to place the Troy Mine on care and maintenance. Development work to the Troy Mine I Beds will cease immediately and milling operations will continue through to the end of January 2015. An orderly shutdown will take place during the month of February with the expectation that development and operations may resume in a more favorable metals price environment.
Co states "Although this is a difficult decision, it is important to note that redevelopment efforts at Troy have been successful. Unfortunately, at current metal prices, commercial operations are not sustainable in the near term. We believe that in a higher metals price environment, it may be possible to recommence operations at Troy and complete development to the I Beds."
The stock is down over 30% so far to it's near all-time low from the crash after Lehman. Talk about a fucking bargain at .43/share right now!!! Personally I have a small position that I've held for 3 years now...I won't sell because I just want to hold on for fun to see what happens once phyzz and the miners explode one of these days soon. My avg cost per share that I'm holding is $4.93 each! HAHAHA
Oh well...nobody expected the beat-down that was coming back then, but this shows what a fucking bargain many good miners are right now as they're being strangled to death (for now).
But this won't last forever. And some miners who are positioned well and can continue to wait out this insanity are going to prosper immensely with massive gains. Cheap oil is helping some already to be able to mine a little more cheaply.
But once the in-flows of desperate cash comes flooding in we're going to see some off the charts historic shit.
Place yer bets, keep stackin' phyzz, and make sure you have lotsa popcorn ready too!
What you are not participating in all the muppets favorite: Buy high and sell low? Geez!
This is only a silver mine, one who makes pure profit from the silver they mine and sell the rest of the materials to pay the bills. The large copper mines in AZ will slow down and or shut down if the price of copper is too low. But make no mistake about it, the other mines are still selling the silver & gold they get on the market to pay their own bills. A vehicle takes up to 30 different minerals mined from the earth to make. http://www.geosociety.org/educate/LessonPlans/Earth_Materials_in_Subaru.pdf
I worry (based on history) that as soon as phyz takes off the PTB will nationalize the miners immediately. One may still be holding only paper silver/gold.
Trust me when I tell you this: If/when the SHTF and fiat dies and the world economy goes to shit then the LAST thing on anyone's mind at that point will be do I own enough gold and silver. It'll be more like do I own enough guns and ammo and do I have enough food and water and a way to dodge the hordes of people that don't. Gold and silver will not save you when the inner city hordes descend upon your neighborhood.
I think it's "when" and j0nx is exactly right if the govt quits making the entitlement payments - water, food, guns, ammo in that order to survive but a little Au & Ag will come in handy should you actually live and society breaks back out of the Dark Ages and goes into the Renaissance period. Where have I heard about this before....???
For you guys the questions are real, whereas for me and most other peons in UK, its rhetorical, cos owning guns is virtually illegal unless you're a major landowner, i.e. farmers and the aristocracy. Therother factor is that UK is a small overcrowded island and there are few places to run tio to get out of the way. And the banksters/politicos/business community still think it's a good idea to keep bringing in immigrants from all the wrong places. Clearly lots of peeps in the US have thought about the breakdown scenario and are preparing for it. What would worry me if I were in the US, is what the DHS has planned for all the ordnance they've recently bought and all the camps still being built all over the Union. I've long thought that the future holds Balkanization for the US, just didn't expect it in my lifetime, now I'm not so sure.
Yep, I would agree, you are in a 9 line bind. Two things on the DHS, one is whether or not the "employees" of the DHS or the police force or the armed forces will actually follow those who have broken stride with our Constitution. That will be the real test of how well our country has educated the masses aka when in a corner how will American citizens behave, patiots/revolutionaries or sheep/slaves. The other point is that there are millions and millions of people with millions and millions of weapons and many are marksman, capable of amazing shots at long distances. I can't remember where I read it but I think that I read just the deerhunters in Wisconsin were a larger number than most world armies (like no. 4...).
yeah but that's a sucker trap bobdog... to overreact too soon? - they WANT people to start some shit, and it drives 'em nuts we don't... gives them justification to come down hard... rational attrition wins the game and most dhs grunts will still be capable of situational awareness... just sayin'...
...peace...
with all due sympathies (seriously) for your future on the island, walktheline... sarc/on...those "immigrants" will actually know how to party/survive like it's 999... A.D.... handy skills for a hand to mouth world... sarc/off... but over here, those happy dhs folks in the trenches gotta' eat too, and where I live (serendipity) every freaking body is armed (it's a regional thing, you wouldn't understand)... BUT, who they gonna' side with? - a knucklehead diarrhea-chow supply-line or people with hot-cheesebugers and real food?... btw, those camps are a red-meat pipe dream of intimidation - the one mapped, supposedly, in my area is a myth... and with due diligence and all - been there, laughed at it... several others around the this big dirt-patch we call a country report the same thing - don't believe the hype... ...sincerely and seriously walktheline - good luck to you and yours... ...peace...
Would you rather be illegal, without telling anyone about it; or dead ? A shotgun is not illegal. it just needs to be registered. it can be done.
register your dog or your mail... not the other...
When are some of these beaten down miners going to realize that their only hope is to start eliminating the bastards that are driving them out of business. I would think they had the powder and expertise to tunnel under the FED and turn that operation into a historical note. Or, they could seek out the old dying miners and have them do a few last operations at Davos or something. Everyone knows you have to be crazy to be a PM miner these days. They could show "them" what crazy really means.
comment deleted because the Sober One already made it
Drink more and type faster and soon you will make as much sense of the octogenarians pulling the strings behind the curtian...
Couldn't read past "Major central banks claim to be independent, but they are totally under the control of politicians." - bullshit detector blew up.
Poor Central Bankers. Is that what we are supposed to get from this?
Yeah - exactly. I think the author has it backwards - politicians come and go, Bankers are the constant here - like cockroaches - they just hide in the walls and come out in the dark. Bankers use politicians (whores) to promote agendas and policies that benefit THEM and only THEM.
What I get from this is a bankster douchebag who sees the writing on the wall, and is trying to start the momentum for shifting blame to someone else - same old bankster bullshit, different era.
"Poor Central Bankers. Is that what we are supposed to get from this?"
I think he is also whinning that the SNB didn't give the market a head's up, to allow all those short the Franc to cover their positions somehow. The consequence, of course, is all those bets lost.
In other words, if you are gaming the market but don't have the inside info on where it will go, you end up like all the other loser schmoes.
Whatta maroon.
I agree ....what a bunch of apologist bullshit. Those weasels have foisted humanity with their fractional reserve banking/credit based money scheme. Now they want to blame the public for its inevitable collapse.
Don't the banks own the politicians?
... beat me to it.
,)
I guess you could ask Abraham Lincoln, Andrew Jackson and JFK. The only three who ever tried to take the printing press back to the Treasury where it belongs. Yep, all three got nailgunned
Jackson survived the attempt.
COuld we please complete this cycle while Obama is still in the White House? I just want to be able to say "Obama's fault" for the next 20 years.
Future history: By executive order with only 6 months left of his term in office, Barack Obama annexed Canada and Mexico and made himself Emperor of the North American Continent and Hawaii, in name as well as fact, to be addressed in future as His Imperial Royal Highness. A livid George W. Bush was heard to comment, "This is all my fault. I should have thought of that."
He will convince folks that the Canadians and the Mexicans begged the USSA for entry into the union.
He made his heir presumptive, Her Royal Highness Malia, Princess of Canada and Mexico and Duchess of Disney.
pushed by reality, not cb. cb's are out of power. that is why all they can do is guide with words.
For the CB's to be indepentent dont they need to be voted on by public then being appointed?
We inflated some folks.
Holding the Ruble long from .0151; presently at .01481; very interesting chart. Looks like it's forming a bottom. I'm not scared yet.
Holding the Ruble Long @.0151; presently at .01481; very interesting chart; looks like it's forming a bottom; I'm not scared yet.
LOL, this is laughable... just an INEPT propaganda to make a dig against RUssia & China which are out to sal some big villains... the bankrupt Western powers are the ones comatose on life support but they seem to escape direct hits just to deflect the DOOM stories to the supposed enemies. I had a hearty laugh looking at the CONVENIENT graphs against the new heroes- Russia & China- here. I think this kind of squid tactics had had their heydays long ago & only the most clueless can't see thru it these days
SEE!!??
WHAT HAVE I BEEN TELLING YOU MOOKS!?
THE FERAL RESERVE HAS TO SAVE ITS OWN ASS NOW AND SCREW THE ECONOMY COLLAPSING!
"Are you callin me a mook?"
"What's a mook?"
notice how they are already trying to shift blame from the CBs to the governments. that's like our current war on drugs: jail the users while the real kingpins are never caught and never stopped.
not that I'm making excuses for the politicians. God knows they every bit as guilty and complicit, but to characterize the CBs as defenseless technocrats fufilling the wishes of their (supposed) superiors is not exactly the whole story.
It was translated by Instagram
Mish repost:
http://globaleconomicanalysis.blogspot.com/2015/01/endgame-for-central-b...
Is this volatility in CB's a function of the new multilateral currency/IMF reform lining up for July 1, 2015?
Thanks in advance.
'Central Banksters operate under the direction of the politicians'.....sorry if you actually believe that, but it's the other way around. 'Give me control of the currency and I care not who makes the laws.'
Central banks under control of politicians? WTF is the guy smoking. Sir Josiah Stamp, Rothschild quotes:
Banking was conceived in iniquity and was born in sin. The Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create deposits."....but like most of the market I'm extremely disappointed in the SNB’s communication and handling of the issue."
Fuck you. Go cry to someone else that you weren't given the news ahead of time by the Swiss so you could trade on it and make a fortune. Fuck you.
The author is Danish, not American or English, and his mastery of English is as good as or better than of most Americans and even better than many an American ZH blogger. Just an observation, sad to say.
You wish you could speak Danish as well, don't you, you....speaking English only person.
This whole site is written by Putinbots, basically its Russian propaganda. Not saying I believe its completely wrong, just that its completely bias.
Let the down voting commence.
Quick! Don't everybody run to that same side the boat at once.
"Saxo Bank A/S is a fully licensed and regulated Danish bank specialising in online trading and investment across global financial markets. Saxo Bank enables private investors and institutional clients to trade FX, CFDs, ETFs, Stocks, Futures, Options and other derivatives via multi-award winning online trading platforms. In addition, Saxo Bank offers professional portfolio and fund management."
Fuck you guys want? It's an online investment bank. Progress!
Who do I get in touch with for complaints?
And you wonder why their Engloooosuh is funny.
See, we're investment bankers on YOUR side.
Now here's how to open an account.
Why am I so jaded, cynical and sarcastic?
"Saxo Bank, cornholing our clients one at a time for a brighter future"
Saxo is something like a pocket dreadnought. or the miniature of the megabanks. but it makes up the small number of employees with plenty of computers
Now, where in the world have I heard that ever so sensitive, caring and endearing term before, cornholing?
LOL
You made my morning. Thank you!
As Jimmy Carter once told Barack Obama; "It's nice to be remembered for something."
Ah, the heady days of the Peanut Man...lol. State of the Union tonight too! What a glorious day...... #WINNING
The pot is on the boil knucks....energy, credit, oil, gold, silver, BDI all flashing RED now. How you spin that as "recovery" is as Orwellian as it will ever get.
Being right for too long does that knukles.
pods
Pods
What sucks is being right and knowing what is coming. This does really suck. I have prepared for a long time. Having said that this is not going to end well for anyone to be honest, even if you are prepared. I really do not want this to happen to people. I am old and not really relevent but when you try to talk to people you are shunned, demonized, and told your nuts. If this SHTF really happens while I am alive I can imagine so many scenarios ending so badly for good people and it sucks balls to be honest. Historically speaking I know this will happen it always does when the government goes down this route and the voters basically vote for those that promise them stuff on the productives back. Fascism took hold of our country decades ago.
This article does sound like a rant from a banker that lost money and nothing more to me. His temper tantrum will solve nothing. What did the author think that the SNB was going to tell everyone so he and others could bet against the SNB and basically pull a Soro's on them. I am actually glad alot of these CB's and elite lost tons of money myself.
What is even more fucked up is MDB's satire or sarc is the way most pleebs think these days.
Vindication is so bitter sweet.
GCT that has to be the most honest and uinsightful post I've seen on here. The only way anything can work, can be effective, is when people coooperate with each other and work to get real things done. All I see here in the UK is what you are seeing over there: a devil-take-the hindmost grab all you can and fuck everyone else attitude that will lay us in the dust of history.
We need to change the existing model(s) with the Co-operative model world-wide.
"Why am I so jaded, cynical and sarcastic?"
You aren't Knuckles, just experienced and sick of this shit. You deserve to be. I sure am sick of it.
"Why am I so jaded, cynical and sarcastic?"
No matter how cynical you are, you can never keep up. -Erma Bombeck
I've avoided some pretty awful pitfalls in my life by being cynical. It's not a bad thing. Especially in these times that will somebody be called the "Gilded Era of Lies".
Umm, you don't particularly enjoy getting Effed in the A?
There were some crazy serious market crashes and depressions BEFORE the fed was formed! Just sayin....
1837, 1873, 1893, 1907.....
...and the Fed was created specifically to make sure that the things you describe didn't happen again. But wthin 20 years, 2/3 of all deposit-taking institutions had gone under in the US, and depositors lost their money. Worst bank crisis ever.
In addition, inflation from 1865 to 1914 was 3%. Total. Much higher since the Fed was created.
So tell me again why we need the Fed?
1997 Glass - Steagall repealed and they blew it up in 10 years (less than 10 really)
HELLO?
MOAR!
Actually it was 1999 and pushed through with the help of Democrats and signed into law by Clinton.
"On November 4, the final bill resolving the differences was passed by the Senate 90–8, and by the House 362–57. The legislation was signed into law by President Clinton on November 12, 1999."
http://en.wikipedia.org/wiki/Gramm%E2%80%93Leach%E2%80%93Bliley_Act
IIRC, it was a Republican congress though. Bipartisanship at its finest!
And I wouldn't be so put out at the repeal of Glass Stegal if we had just let the TBTFs actually fail instead of printing to infinity and beyond and stealing from the public via TARP.
Citi was already proceeding as though it was repealed in 1997. I guess that was what I was thinking...........
more like 3yr. do you not remember the dot com bust? I think that was the true top. this stuff now is just numbers. but the minds of the people in the clouds drunkin on technology optimisum. the parties back then were on a scale we have not seen since.
Dot Com was people's retirement
2008 was people's jobs, homes, cars etc.
Dot Com was people's retirement
2008 was people's jobs, homes, cars etc.
2015 will be people's lives - queue famine, war, pestilence...
What you're saying is that, the very best possible scenario here is that the Fed is an abject failure when it comes to its stated goals. Emphasis on "best possible scenario" and "stated goals."
Human greed has always been self-correcting ... since before Christ . Central banks only serve to delay and distort the natural process.
Absolutly, that's they way it should work and they don't last long. Deadwood is bankrupt, bought up for pennies on the dollar and on and on. Winners win and losers lose, no props, and there is pain. Then you get up and go back at it. Much like the cycle of life.
The un-fed comes along and fucks it up, drags corrections on and on, prop the insiders and speard any pain onto others.
No system will be called "perfect" by all, but one thing is damned sure this current one has failure written all over it and not short and sweet either!
FUBAR!
Forget Redshield?
Someone hasn't read their Murray Rothbard. In short, business cycles are entirely caused by the state due to the allowance of fractional reserve banking and inevitable credit expansions that result (sometimes due to corrections after wars). Even then, those depressions were short lived (usually not longer than a year or so).
"There were some crazy serious market crashes and depressions BEFORE the fed was formed! Just sayin..."
Misleading:
1837 = Andrew Jackson paying off the debt & 'killing' the banks. The 2nd Bank of the United States charter was expiring & the 'CRASH' was engineered to try & teach a lesson. Jackson won a pyrrhic victory and essentially stalled central bank formation for the next 76 years while other dynamics played themselves out.
1873 = Came on the heels of The Coinage Act. I don't want to waste space here so look it up.
1893 = The Railroad Crisis having an effect on the closing of silver mines after the Sherman Silver Purchase Act [1890] had provided for 'bi-metallization'
1907 = JP Morgan essentially crashing the market singlehandedly to be able to buy up assets on the cheap.
Essentially, all of these 'crashes' had the invisible hand of the banking industry [central or not] balls deep in the matter because every single one was the result of a rapid withdrawl & or contraction of the money supply.
in other words "capital flows" ... simple very very simple ...
makes sense, don't it?
Essentially, banks 'lend money' [which, as human nature would have it, almost always leads to overspeculation in the area of interest at the moment, aka HOT MONEY]. Then, when enough sweat, blood, & ingenuity has been spilt in the name of building out the essential infrastructure of the industry in question, they [the banks] pull the carpet back from under everyones feet, exposing the 'naked swimmers' to bankruptcy.
Afterwards, the crafty bankers become owners of:
- farmland
- mines & mining equipment
- oil rigs
- housing & tenements
All CENTRAL BANKING really does is add parabolic leverage, & leveraged derivatives on top of that to the equation. Plus, of course, the opportunity to, in the process, capture the political & legal systems to avoid criminal prosecution.
But y'all knew all that already.
Below is from Martin Armstrong's blog, his reply to a question. It seems the real thing...
REPLY: Thank you for the flattery. I sure hope I am not the lone individual history produces in its darkest hour. It would be nice to have some help. This is my DISCOVERY rather than my theory. Running around the globe I would meet the same top brokers who were dealing in Geneva with members of OPEC in the early 1980s moving to Tokyo in the later 1980s post-1986 reforms. The talent followed the money flows and so was the demand for our services. It was this tremendous diversity of clients that forced me to see the light. I looked upon myself as a simple trader. It was Milton Friedman who came to listen to my speech in Chicago that forced me to see what I was observing was important to the world. So this was NEVER my assumption from the outset, It became my DISCOVERY from working globally.
It is strange that everything I have been through has been about trying to suppress this discovery because the ramifications are massive. Politicians cannot run for office proclaiming vote for me and I will do this or that when the free markets internationally dictate the trend. Everything changes right down to the core assumptions of how to run a government once you see the light.
All I can do is try to help others turn on the light that still others are trying so desperately to suppress. It is our future at stake. I can personally retire. But what about my posterity. What will we leave behind for them unless reform takes place? I do know this is a serious point in history. A real crossroads that we face.
"Men are haunted by the vastness of eternity. And so we ask ourselves: will our actions echo across the centuries? Will strangers hear our names long after we are gone and wonder who we were, how bravely we fought, how fiercely we loved?"
~Odysseus
As I recall... someone here posted all the economy and market crashes in the last 200 years. I also remember being surprised at how many had occurred during the "Gold Standard" era before the Fed of 1913.
For me, the Takeaway was the a "Gold Standard" alone does NOT prevent booms and busts. Which makes me wonder its fiat replacement merely induces BIGGER bubbles, booms and busts.
To use an analogy, it seems that the fiat currency standard is like adding more yeast to the bread. You get a Bigger loaf, but no more substance. Only more air. So maybe the Bread buyer needs to judge the bread by its weight, not its size.
Moral: Caveat Emptor. Be they an Imperial CB, a noble Merchant or Unwashed Masses.
Technology has ushered in &/or facilitated a lethal combination of leverage, derivatives, leveraged derivatives, globalization, hyperspeed data transfer capabilities, plus, well, more FOXES in charge of proverbial henhouses.
I'm sad to say that this is NOT the "Endgame for Central Banks".
Perhaps it's the endgame for "Central Banks 2.0" [or whichever version you choose to nominate]. I can't remember which version of 'The Matrix' program Neo & The Architect were discussing during their inevitable encounter. It probably doesn't matter anyway.
Different scale. These caused stock market crashes. The current credit bubble is destroying nations.
Booms and busts are caused by fractional reserve banking. Getting rid of centrall banks doesn't fix fractional reserve banking. You have to explicitly fix that to prevent the booms and busts.
But, but but! Without fractional reserve banking, we won't have enough liquidity to run the economy!
(Yes, I've heard that one before.)
Get rid of FRB, and the relative values of things would look very, very different. This is not necessarily a bad thing.
"The current credit bubble is destroying nations."
Dude ~ there are no 'nations'. The quaint idea of 'nations' was usurped long before you were even born. They're all just captured corporate entities [though the masses have been conned into believing otherwise].
FFS ~ The UNITED STATES hasn't been a 'nation' since The Act of 1871.
If you can stomach the pain, watch the SOTU tonight. See all those gold fringes around the flags? They're there for a reason [& the reason is that THE UNITED STATES OF AMERICA is not a nation].
Has he been fired yet?
That's just it isn't it?
"There's no flow."
So folks run to the perceived safety of oil only to find that is an even bigger liquidity trap.
So now the belief is in a solvency crisis...and that means gold, silver and Switzerland.
But how does that solve the liquidity crisis again?
And here we go... CBs shifting blame. As expected.
Financial crisis (theft) = sovereign crisis = political crisis = public crisis.
CBs are built to be dismantled. The owners get the loot. The politicians and bankers get the rope. The masses starve.