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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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"Destroy the currency to create flow."
Only that doesn't work either.
sounds about right ... then the cycle starts again ... i am sure there are plans already of something new to be shown completely in couple of years. saying completely because already there are leaks out there of new reserve currency etc.
I find it funny that the SNB is the thing that people claim is a catalyst for a shift. Not all of the bullshit the fed has spewed over the years about an improving economy, unemployment, interest rates, real estate, etc. Or what Draghi has droned on about and hasn't done or hasn't come true, etc.
No, some financial folks were surprised and lost some money, and that's the thing. To regular people, all we've seen and heard from the CBs over the years is utter bullshit, so color us not the least bit surprised.
+1
if you think about it, is not the first time ... the reason given for World War I was the killing of some duke somewhere. if there is any other more ridiculous reason ever given i dont know ... but there you have it ... it is history being taught at schools everywhere
"Major central banks claim to be independent, but they are totally under the control of politicians"
Bullshit. That's backwards.
Yes, and by this time, that much should be obvious. Which means, of course, this author has no credibility.
Governments and Central Banks are married. That was the second biggest point I learned reading TCFJI.
This piece is a central banker's cover piece. Blame shifting.
No worries, a government cover piece will come next week.
Blame is like Hot Potato.
pods
Saxo Bank is european. yes, european central banks are, generally speaking, under the control of politicians
one excellent example is the Bank of England
the typical American generalization is that central banks are private, because the FED is private
the typical European generalization is that central banks are under the control of politicians because it is so
the truth is that every CB is a bit special, like the "special snowflake" meme, or "special" in the PC sense
Bullshit. The City of London and Bank of England is one of the worst examples you could have given.
suit yourself, Bay of Pigs. The Bank of England is completely under the control of the British gov, specifically of the minister called The Chancellor of the Exchequer, which traditionally is a kind of vice-PM, the second-in-charge of the ruling party and the prospective next PM. You can look it up
I guess history isn't your strong suit? Rothschilds ring a bell? And don't forget who is running that bank now, none other than ex Goldmanite Mark Carney. Some of us can connect the dots and see through the lies and deception. And as to your argument on gov't control, many in the US and elsewhere would make the same claim. It doesn't make it so.
history, interestingly, is one of my stronger passions. yes, the Bank of England used to belong, among other shareholders, to the Rothschild family
and then the BoE was nationalized, in 1946 if memory serves me well. The British government bought it up. Very... "socialist" of them
this has little to do with the fact that a lot of bankers and central bankers come from the "Squid Academy", like Carney and Draghi
if the Chancellor of the Exchequer wants the BoE to jump, Mark Carney still has to ask "how high?". Of course the question is always how much does a politician know in order to best a Goldmanite, a completely different situation altogether
within the FED construct, things are slightly different, with the NY-FED being the "house bank" of the US Treasury
I think your toast may have landed butter-side down on this slice of history Ghordius, the 'house' banks were effectively subjugated ~1974 when,
"the Basel Committee was established by the central-bank Governors of the Group of Ten countries of the member central banks of the Bank for International Settlements (BIS). A key objective of the Committee was and is to maintain “monetary and financial stability.” To achieve that goal, the Committee discouraged borrowing from a nation’s own central bank interest-free and encouraged borrowing from private creditors, all in the name of “maintaining the stability of the currency.”"
Of course national debts have exploded since, and we all know who pumps the cheese in the debtor/creditor symbiosis, regardless of all whom-answers-to-whom posturing. You would be hard pressed to find a currently vetted politician (alive) that will even discuss the former role of the 'house' banks; that's one helluva tell, no?
"Major central banks claim to be independent, but they are totally under the control of politicians"
Blogging Solution: List the owners (known or suspected) of all CBs in the G20, plus the following countries that attract attention and make headlines (in descending GDP):
Argentina, Sweden, Poland, Norway, Belgium, Austria, UAE, Colombia, Iran, S. Africa, Denmark, Singapore, Israel, Chile, Hong Kong, Egypt, Finland, Greece, Pakistan, Iraq, Venezuela, Ukraine, Libya.
Tyler? Or where's the "List" guy... Michael Krieger or Snyder, who loves to write Top ___ articles?
LOL, jail the financial criminals? It won't happen
Who just took down Dodd-Frank and obtained the promised derivative bailout?
Citi, JPM, Goldman, MS, and all the rest of the criminal banksters.
New, improved and larger bankster caper.
Robert Rubin and Larry "The Looter" Summers did the most damage.
Yes, the people in power like the way things are. They tweek the system in different ways. That is what congress is for. And Money controls congress completely.
So I'm not sure I buy into change very much.
I called for a Collapse in April 2015 about 6 months ago. I figure too many things are being propped up. I'm not that smart, but it will be credit, bank credit between banks, stock prices will collapse. Not sure if the USD will get devalued in 2015, maybe in 2016.
TPTB like Status Quo.
- So they will keep the Fiat USD if they can, it won't even be on the table for change
- What would be on the Table would be very narrow fix to some symptom
- Low Demand for Skilled and Unskilled Labor is one problem, but no one will touch this in 2015
- Wall Street has infinite power to create fiat out of thin air, but they won't touch this either
- Maybe we could move some power to small banks and public banks like the Bank of North Dakota, that would serve the Community or Region, but Bank of North Dakota would seem to be exposed to Falling Oil Prices, risk to loans, but people need money to serve them better than what Wall Street Does
- Free Tuition doesn't address low demand for Labor, but it could help teach skills to people that could work for themselves, cars, trucks, farms, machines, food manufacturing, energy generation, construction... Free Tuition might fly if they limited it to $100 Billion or less per year, $40 Billion a year is a good number
What drugs is this fool on? " Major Central Banks are under the control of the politicians" ...who are under the control of the banksters, who own the central banks, which should be owned by the public, who should be respresented by honest politicians, but are not thanks to the banksters who own the central banks.
Pardon me if I'm not wowed by the author's insight that central banks are not independent and that they are influenced by politicians. It's the other way around, central banks OWN the politicians.
Exactly. The banksters own DC.
Smartest guys in the room painted into a corner.
The "great economic minds of our time". If they are so great, they know that fiat has a finite life cycle and "painted into a corner" is the known end outcome.
"Major central banks claim to be independent, but they are totally under the control of politicians."
"Major politicians claim to be working for their constituents, but they are totally under the control of the central banks."
There, fixed it for you Mr. Jakobsen from Saxo Bank.
BIS being the headquarters all major Central Bankers are directors.
This is global.
Politicians are national.
Hey Steen you tribal piece of shit, you've got it backwards, on purpose might I add. The politicans are under the total control of the Central banks for the very reason that if the politicans try to do the right thing by reining in the Central banks, everything blows up and they lose their jobs.
Didn't that dick Rothchild state that give him control of a nation's money and he cares not who writes the laws.
Nice tribal shyster double speak and lie once again.
You know that now that the banks are getting set to implode blame has to be laid at their servants, the politicians, feet. That was always their exit option: exit and reset, as long as sheeple will be sheeple it shall always be so.
Another asshole trying to tell us the way it is. Probably a shill, or just fucking dumb. This from his mouth:'
Major central banks claim to be independent, but they are totally under the control of politicians.
Really? No, it's the other way around.
Yes, it's pretty fucking clear now isn't it? My question is, why didn't we try to stop them?? Knowing my children are fucked after the fact doesn't give me much comfort.
And just exactly how do you propose 'we' stop them?
We don't. It's too late. The damage is done. We made a shit sandwich, and now we're going to eat it.
It was done pretty much in secret in 1913 and pushed through a legislature that was heading out for holiday break and or looking the other way.
But that is an old story told over and over now isn't it?
A word of caution. The Rotschilde central bankers will shift heaven - make that hell - and earth to prevent this development. As Ghadaffy, Sadam Hussein and one Mr. Hitler could tell you had they not been prematurely offed.
And the central banks under the control of politicians? Oh PULEEZE!! So Obama controls the FRB? No, they control him.
Better under the control of the elected governments than under the control of the TBTJ banks and their owners. The reality is that fractional reserve banking is inherently a ponzi where phantom AND SENIOR financial claims on real flows of value concentrate "wealth" and control/power in the financial sector through boom/bust cycles over time. TBTJ abuses its control of the effective money supply (which is credit, not base money) to frontrun the cycles and effectively steal from the broader population. Any system run for those who extract or destroy value at the expense of those who create it is certain to collapse and eventually fail. The root cause is TBTJ Fractional reserve banking, not Central Banking per se (but I encourage all to convert essentially fraudulent financial assets to gold in any event).
There will be a LOT of checks cashed in Washington DC before the 'Audit the Fed' vote fails.... That might hint at the real relationship between Central Banks and governments.
"Major central banks claim to be independent, but they are totally under the control of politicians"
Should read "Both politicians and central banks are fully bought and paid for by the banksters."
Not to mention that the central banking cartel are a network of private corporations.
The management of private corporations primary legal responsiblity is to act in the best interest of their private shareholders, which by deduction means they have to do their best to screw the people given mutually exclusive interests.
Unfortunately, we don't even know exactly who those private shareholders are, because in the case of the FED, it is classified on the grounds of national security. Go figure.
gramps woulda said that this in the tank banker has put the nag before the horse. that gov"t and CBs are working together to shag humans and get MOAR of everything is clear to anyone who isn't drinking high fructose corn syrup. the central banks in the case are the horse and the politicians are their liar interface to the pitchfork mob.
but we know that..right?
Major central banks claim to be independent, but they are totally under the control of politicians.
Really?? I think they're under the control of the 1%. In the global corporatist partnership we have, politicians are just a front for that.
But you're right, the King(dollar) is dead - long live the KING(gold).
http://roacheforque.blogspot.com/
the 1% are the central bankers clients. now that goldman has FDIC, and cromnibus passed without a whimper. central bankers are political appointees, and the 1% are central banker clients. the flow chart is a massive trickle down, when hillary says government creates job she is correct, government operates the central banks and they create wealth, demand created through government spending. if somehow government were to get out of the business of running a central bank the system would probably collapse, since the 1% do not have the means to create demand, and have flooded the global economy with supply.
"Major central banks claim to be independent, but they are totally under the control of politicians."
Totally bass-ackwards
"Major central banks claim to be independent, but they are totally under the control of politicians."
Politicians are totally under the control of central bankers...fixed it for ya
+1T
At this point, in the U.S. and much of the world, the politicians were bought by the bankers and then the politicians appointed bankers into key posts (of all sorts). So, in fact, the politicians and bankers are pretty much the same. Damn "the small people."
Horse manure... the CB's (and most politicians) are OWNED by the Rothschild cabal... if this author doesn't get THAT... he should be beaten, buggered, tarred and feathered, and boxcar'd.
Maybe the Danse Macabre of the banks has finally begun.
How can a banker, whose whole constellation world-over relies on QE and ZIRP and price fixing of Libor etc. shenanigans, now spit on the hand that feeds it?
What sort of freak out is this? A rat fleeing the sinking ship?
Is the Jesuit now saying "God betrayed me by making me his evil thing crucifying the native!"
Pot and Kettle.
Jamie Dimon has no such compunctions. "The FED works for me King Banker. I don't spit on those who feed me."
I prefer a hole in the wall robber who goes down all guns blazing than a turn-coat who wants to play at gaining redemption by blaming others.
Hey mate, you were a sailor on the Costa Concordia, even if you were ONLY taking orders like a soldier of the Conquistadors on your way to Eldorado.
LOL. Saxo Bank sometimes makes a good show of being the "smallest of the megabank bunch"
"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. "
and there you have it: the dollarzone grows! but it also has a debt addiction... and the eurozone does not grow. but of course, what is the real reason for this article? to ask for QE, and moar debt, and moar CB action in the eurozone, and so a way back to the debt addiction spiral
who benefits from the strong dollar? well, for sure not the EM countries where the dollar ebbs are more pronounced, and where the dollar tides cause untold malinvestments
I have a feeling the ECB is going to disappoint. I wouldn't be surprised to see the Fed. talking about easing again as early as summer.
The big problem is the deficite spending issue for the Fed.(being able to monetize a large enough amount of money) The lower oil prices and stronger $usd should widen the gap back out though.
I hope that the ECB is going to disappoint... the "moar" megabanksters
Keep your eyes on the BOJ later Gordo. If the BOJ is hawkish the ECB will probably be dovish. Make sure you watch the size of the ECB commitment. I'm thinking Draghi is going to jawbone a huge ECB commitment that hasn't been ratified, and drag this into the Spring.
Tentative JPY Interest Rate Decision 0.10% 0.10%
20:30 JPY All Industries Activity Index (MoM) 0.1% -0.1%
Tentative JPY BoJ Press Conference
*Times are GMT-8
excellent point, Yen Cross
Hey why don't you two guys get a room.
"Major central banks claim to be independent, but they are totally under the control of politicians"
Fixed it
Major central banks claim to be independent, and they totally control of politicians
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...
Propaganda much!? Should have led with this so I could have stopped skimming much earlier! Pfffftttt...
"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?"...
Frame this one as the 1 quadrillion in derivatives "question mark" that should have been addressed in Washington D.C. 7 long years ago when they all should have been sequestered in a prison cell for the crimes they committed before giving us the tab!
Everyone's onto the Central Banksters now, they're not able to operate from the shadows behind the curtain anymore since the advent of the inter webs.
If it were only so Sheepdog. Ask a hundred people on the street what a central bank is, or what they do, and I would bet you a silver dollar to a shiny zink penny that not 5 will have the faintest. More like 1 actuallyl, but I kinda get really stingy when it comes to my Ag.
"Everyone's onto the Central Banksters now"
Except for 99.999% of Americans. For years I have been advising people to learn what is happening.
1. Knee-jerk reaction, "I don't believe it." (Of course, no follow-up investigation on their own.)
2. "There's nothing I can do about it, so I don't want to hear about it." (No desire to learn if there are things that can be done."
3. Frustrated and tired of being looked at like I am a crank or a kook. I've stopped trying to inform people about what is sure to be a disaster.
Atticus,
I get the very same reaction living in the UK. Most people don't realise the significance of the one mile 'City of London'. People assume the City of London Mayor is 'Boris'. When I mention the 'Inner Temple of the BAR', people have no idea the connection to the 'British Crown'. It is presumed to be a refreshment venue and Knights Templar is a musical.
Apparently Steen, you don't remember the 1992 drop in GBP from 2.04 to about 1.40 in a few days as the UK dropped out of the EU. But I digress ... the only Central Bank I believe in is GOLD. Politicians and bankers lie, GOLD never lies, and that's why Pols hate it and will do everything to suppress its price and keep people from owning it. In this era of CNTRL-P fiat currencies, a "smart" country would peg its currency to gold, but alas they also have politicians who can't stomach the thought of not having control over people's money. Fuck them all.
www.traderzoo.mobi
" the 1992 drop in GBP from 2.04 to about 1.40 in a few days as the UK dropped out of the EU... "
not from the EU, from the currency grid. the precursor to the EUR
ahh...never mind.
im 100% with you, the question sort of is what happens when the clients (the other than central bank, goldman jp morgan, are in disagreement with the political chair ) greenspan and bernanke kept the fed under single leadership, but yellen allows dissent, the question then is does obama or whowever is running the wh provide leadership and what happens if he cant bring them to follow wh policy? bush had bernanke attend cabinet meeting which were corporate rah rah sessions. obama is less involved, its a matter of how much the train tends to stay on the tracks by itself i guess.
Any President who provides leadership on the road back to a Constitutional Republic goes the way of JFK and that message was delivered to all future Presidents on November 22, 1963.
True leadership to restore the ideals of 1776 cannot be allowed. Afterall the US needs to keep killing hundreds of thousands of children throughout the world to keep the USD as the reserve currency.
There will be no leadership from the President or any future President.
'Give me control of the currency and I care not who makes the laws'....a famous central bankster tribesman.
To Tyler and the band: Stop posting crap articles from stiffs who think they're with the 'polite' society.
". . . the conclusion has to be that there are no independent central banks anywhere!"
You don't say? And the next thing we'll hear is that politicians really don't represent the citizenry.
"1 quadrillion in derivatives "
It's the Too Big To Fail banksters forcing a fail to transfer debts and bad bets to the sucker taxpayer.
Socialize losses and privatize profits.
Rinse and repeat.
Yogi - Yes. The more I look at it from afar the more it looks like the US is the global "bad bank." The debt cant be repaid, adding derivative losses is part of this plan.
The IMF did state in 2014 China was the defacto new reserve currency. The IMF and CB's are renominating in Yuan.
My opinion is we'll be America 2.0 by 2020. Your best hedge is your health followed by hard assets.
"This suckers going down."
- GW Bush
Central Banks create paper currency with interest due for which there is insufficient currency to pay said interest, thus creating unpayable debt. The system is fraud. Stop participating in the crime. Shut it down. Use interest free money. Actually, we don't need banks at all. We can create our own currency.
https://www.youtube.com/watch?v=5hfEBupAeo4
https://s3.amazonaws.com/khudes/Twitter1.15.15.pdf
https://s3.amazonaws.com/khudes/BILATERAL.pdf
https://s3.amazonaws.com/khudes/breakthrough.pdf
https://s3.amazonaws.com/khudes/mboard3.pdf
http://professorfekete.com/articles/AEFMonEcon101Lecture2.pdf
Greece Default and let's start to heal from the banker's greed. Bankruptcy is the American way. Corporations do it all the time. A neighbor of mine was released from $92,000 of short term debt 3 years ago. Took out a car loan a year later and got a house loan last year because he claimed hardship due to lost job. Let the bankers eat their loans and move on.
I think it's backwards. It should be:
Politicians claim to be independent, but they are totally under the control of Major central banks.
"Major central banks claim to be independent, but they are totally under the control of politicians..."
Really and the international banks had nothing to do with the $50 trillion dollar giveaway by the Federal Reserve.
The politicans made me do it. Really?
Major central banks and politicians claim to be independent, but they are totally under the control of the .01%
There - fixed it.
By George, I think you've got it. The tribe is strong with the .01%.
Where Russian Federation and Al Qaeda/ISIS/ISL finally intersect?!!!
Will the "Brain Fart-in-Chief" announce in the State of the Union that Russia is now officially with the terrorists?
Them Zionist Yids got Chutzpah!
http://rt.com/news/224459-france-planned-attack-russians/
"Major central banks claim to be independent, but they are totally under the control of politicians."
Bull Shit!
The central banks own the politicians!!!!!!!
Dumb ass!
Tuco
Best Guess Federal Reserve ownership:
The top 4 banks: B of A, JP Morgan Chase, Citigroup & Wells Fargo-Wachovia control roughly 54% of the stock of the Federal Reserve Bank. The top 10 banks, including Goldman Sachs, HSBC and the Bank of New York control roughly 70% of the stock.
This is who runs the CB's
ROTHSCHILD OWNED & CONTROLLED BANKS:
Afghanistan: Bank of Afghanistan Albania: Bank of Albania Algeria: Bank of Algeria Argentina: Central Bank of Argentina Armenia: Central Bank of Armenia Aruba: Central Bank of Aruba Australia: Reserve Bank of Australia Austria: Austrian National Bank Azerbaijan: Central Bank of Azerbaijan Republic Bahamas: Central Bank of The Bahamas Bahrain: Central Bank of Bahrain Bangladesh: Bangladesh Bank Barbados: Central Bank of Barbados Belarus: National Bank of the Republic of Belarus Belgium: National Bank of Belgium Belize: Central Bank of Belize Benin: Central Bank of West African States (BCEAO) Bermuda: Bermuda Monetary Authority Bhutan: Royal Monetary Authority of Bhutan Bolivia: Central Bank of Bolivia Bosnia: Central Bank of Bosnia and Herzegovina Botswana: Bank of Botswana Brazil: Central Bank of Brazil Bulgaria: Bulgarian National Bank Burkina Faso: Central Bank of West African States (BCEAO) Burundi: Bank of the Republic of Burundi Cambodia: National Bank of Cambodia Cameroon: Bank of Central African States Canada: Bank of Canada – Banque du Canada Cayman Islands: Cayman Islands Monetary Authority Central African Republic: Bank of Central African States (BCEAO) Chad: Bank of Central African States Chile: Central Bank of Chile China: The People’s Bank of China Colombia: Bank of the Republic Comoros: Central Bank of Comoros Congo: Bank of Central African States Costa Rica: Central Bank of Costa Rica Côte d’Ivoire: Central Bank of West African States Croatia: Croatian National Bank Cuba: Central Bank of Cuba Cyprus: Central Bank of Cyprus Czech Republic: Czech National Bank Denmark: National Bank of Denmark Dominican Republic: Central Bank of the Dominican Republic East Caribbean area: Eastern Caribbean Central Bank Ecuador: Central Bank of Ecuador Egypt: Central Bank of Egypt El Salvador: Central Reserve Bank of El Salvador Equatorial Guinea: Bank of Central African States Estonia: Bank of Estonia Ethiopia: National Bank of Ethiopia European Union: European Central Bank Fiji: Reserve Bank of Fiji Finland: Bank of Finland France: Bank of France Gabon: Bank of Central African States The Gambia: Central Bank of The Gambia Georgia: National Bank of Georgia Germany: Deutsche Bundesbank Ghana: Bank of Ghana Greece: Bank of Greece Guatemala: Bank of Guatemala Guinea Bissau: Central Bank of West African States (BCEAO) Guyana: Bank of Guyana Haiti: Central Bank of Haiti Honduras: Central Bank of Honduras Hong Kong: Hong Kong Monetary Authority Hungary: Magyar Nemzeti Bank Iceland: Central Bank of Iceland India: Reserve Bank of India Indonesia: Bank Indonesia Iran: The Central Bank of the Islamic Republic of Iran Iraq: Central Bank of Iraq Ireland: Central Bank and Financial Services Authority of Ireland Israel: Bank of Israel Italy: Bank of Italy Jamaica: Bank of Jamaica Japan: Bank of Japan Jordan: Central Bank of Jordan Kazakhstan: National Bank of Kazakhstan Kenya: Central Bank of Kenya Korea: Bank of Korea Kuwait: Central Bank of Kuwait Kyrgyzstan: National Bank of the Kyrgyz Republic Latvia: Bank of Latvia Lebanon: Central Bank of Lebanon Lesotho: Central Bank of Lesotho Libya: Central Bank of Libya Uruguay: Central Bank of Uruguay Lithuania: Bank of Lithuania Luxembourg: Central Bank of Luxembourg Macao: Monetary Authority of Macao Macedonia: National Bank of the Republic of Macedonia Madagascar: Central Bank of Madagascar Malawi: Reserve Bank of Malawi Malaysia: Central Bank of Malaysia Mali: Central Bank of West African States (BCEAO) Malta: Central Bank of Malta Mauritius: Bank of Mauritius Mexico: Bank of Mexico Moldova: National Bank of Moldova Mongolia: Bank of Mongolia Montenegro: Central Bank of Montenegro Morocco: Bank of Morocco Mozambique: Bank of Mozambique Namibia: Bank of Namibia Nepal: Central Bank of Nepal Netherlands: Netherlands Bank Netherlands Antilles: Bank of the Netherlands Antilles New Zealand: Reserve Bank of New Zealand Nicaragua: Central Bank of Nicaragua Niger: Central Bank of West African States (BCEAO) Nigeria: Central Bank of Nigeria Norway: Central Bank of Norway Oman: Central Bank of Oman Pakistan: State Bank of Pakistan Papua New Guinea: Bank of Papua New Guinea Paraguay: Central Bank of Paraguay Peru: Central Reserve Bank of Peru Philip Pines: Bangko Sentral ng Pilipinas Poland: National Bank of Poland Portugal: Bank of Portugal Qatar: Qatar Central Bank Romania: National Bank of Romania Russia: Central Bank of Russia Rwanda: National Bank of Rwanda San Marino: Central Bank of the Republic of San Marino Samoa: Centra+D574l Bank of Samoa Saudi Arabia: Saudi Arabian Monetary Agency Senegal: Central Bank of West African States (BCEAO) Serbia: National Bank of Serbia Seychelles: Central Bank of Seychelles Sierra Leone: Bank of Sierra Leone Singapore: Monetary Authority of Singapore Slovakia: National Bank of Slovakia Slovenia: Bank of Slovenia Solomon Islands: Central Bank of Solomon Islands South Africa: South African Reserve Bank Spain: Bank of Spain Sri Lanka: Central Bank of Sri Lanka Sudan: Bank of Sudan Surinam: Central Bank of Suriname Swaziland: The Central Bank of Swaziland Sweden: Sveriges Riksbank Switzerland: Swiss National Bank Tajikistan: National Bank of Tajikistan Tanzania: Bank of Tanzania Thailand: Bank of Thailand Togo: Central Bank of West African States (BCEAO) Tonga: National Reserve Bank of Tonga Trinidad and Tobago: Central Bank of Trinidad and Tobago Tunisia: Central Bank of Tunisia Turkey: Central Bank of the Republic of Turkey Uganda: Bank of Uganda Ukraine: National Bank of Ukraine United Arab Emirates: Central Bank of United Arab Emirates United Kingdom: Bank of England United States: Federal Reserve, Federal Reserve Bank of New York Vanuatu: Reserve Bank of Vanuatu Venezuela: Central Bank of Venezuela Vietnam: The State Bank of Vietnam Yemen: Central Bank of Yemen Zambia: Bank of Zambia Zimbabwe: Reserve Bank of Zimbabwe.
Reference: Educate Yourself
‘Rothschild Banking Empire Valued at $100 Trillion’
http://humansarefree.com/2013/11/complete-list-of-banks-ownedcontrolled.html#sthash.XyMig9Pd.dpuf
Very informative mich
Thx
He's not a dumb ass. He's giving out the new Approved Message for the masses.
Eeeexxxcellent! +1
PLEASE! This ZH not USA today.
The central banks are OWNED by the commercial banks. International banks own chunks of every central bank. I'm not guessing or reading between the lines here, this is a simple fact.
The banks are managed by guys like Blanckfein and Dimon, but owned by shadowy banking families trhough a blizzard of shells, investment groups and closely held banking interests. Only families that pass wealth through several genreations have enough time to acquire this much capital and influence. You should be trying to imagine 10 Rothschild families here. (Not all Jewish BTW)
The Politicians are controlled by these same families, because no one gets close to office without their approval.
The whole thing is an Unholy Trinity, with the central banks acting lightening rods for all the criticism that should be directed at the politicians and banking ownership.
What a load of bollocks
Traders launched an attack on Sterling the BoE capitulated
Traders launched an attack on the Swiss Franc the SNB capitulated
Shock horror Central Banks are not there to line traders pockets.
This business of blaming the Fed for everthing is getting tiresome. The Fed has only two legal mandates: to maintain price stability and minimize unemployment. Everything else, like maintaining GDP growth and exchange rates has been assigned to it by outside interested parties who wish to conceal their own misbehavior and incompetence. The Fed is being used as a scapegoat to distract the public from the criminal activities of commercial bankers and the increasing mal distribution of income.
CB's and POL's are both under the control of the ZWO'ers. Can probably go all the way back to some Rothschilds folks at the root, but basically they are both pawns for the ZWO'ers.
"Major central banks claim to be independent, but they are totally under the control of politicians."
That would be totally incorrect. Central banks are owned by private banks which are owned by a select few, who in turn 'own' the politicians and thus, by proxy, entire countires.
"Nope, it's not us bankers, nossirree Bob. It's those politicians who run the CB's and made a mess of things."
"If they only listened to us, everything would be hunky dory, ok fine."
1.) Lying his face off.
2.) Living in a delusional world.
Either way, your answer choice makes no difference. These are the people that control your money ie. your labor.
They can, and do, diminish and destroy it daily.
Strange- seems like most everybody agrees (in the comments) that the premise of this article is bullshit (correctly so).
And yet, it has a solid 4 out of 5 rating.
disconnect
I thought 4/5 was the 'BS-o-meter' reading... silly me heh
True enough...kinda. But it's not like the central banks don't own the politicians as well...they are corporatists...they have merged. Better analysis when that's recognized...but the same outcomes the author notes.
There are three kinds of central bankers: those who can count and those who can’t.
Don’t worry! Central bankers and politicians just took an IQ test and the results were negative.
True enough...kinda. But it's not like the central banks don't own the politicians as well...they are corporatists...they have merged. Better analysis when that's recognized...but the same outcomes the author notes.
Double post...sorry...grrrr
Let me sum up things...nothing is worth almost anything except for dollars. Copper, oil, lumber, hogs, cotton...all worth very little... even other currencies. The only thing of value left is a currency that can be created at will by the Fed. I wonder how long the rest of the world wants to continue playing this game. So far we are winning....so far..
disappointed in the SNB’s communication and handling of the issue
He is just furious that he could not tip family and friends.
The king is dead, long live the King.
And all the past pissing ain't helpin much!
To our journey!!!
In unrelated news all middle-management & up at Saxo Bank received complimentary boxes of nailguns and free nails, 1 box per person, with free pre-printed suicide notes.
In unrelated news all middle-management & up at Saxo Bank received complimentary boxes of nailguns and free nails, 1 box per person, with free pre-printed suicide notes.
Wonder if some of them will be heading to the U.S. Treasury where they have survival kits?!!
Depending on how you look at it, it must be like winning the lottery after everything they've done!
But I bet if they make that switch to the U.S. Treasury the survival kits they get probably have "nail guns" in 'em too!
Isn't it spelled Sexy Bank, not Saxo?
Most of the comments, and voting patterns upon them, above already stated my view when I read: "Major central banks claim to be independent, but they are totally under the control of politicians."
The political situation is that THEORETICALLY the people, through their elected representatives, are supposed to be in control. HOWEVER, in fact, when one looks at enough of the history of civilization it becomes obvious that CIVILIZATION OPERATES ACCORDING TO THE METHODS OF ORGANIZED CRIME.
THAT has been developing at an exponential rate for thousands of years. The point of maximum leverage is the FUNDING OF THE POLITICAL PROCESSES, which is what one has to study most in order to understand what has been really happening. To add enough historical depth to that, one also has to study the ways that their sources of funding also created vicious spirals that directed the education systems and mass media.
The basic facts are that a tiny minority of the people totally DOMINATE the funding of the political processes, while the vast majority never played any significant role in funding the political processes. The FUNDING of politics is not merely a range of legalized corruption, and bribery, but also intimidation, as well as assassination of politicians which could not otherwise be bribed or intimidated. Thus, the current situation is that the successful and surviving politicians are the BANKSTERS' PUPPETS, who are voted for by enough of the muppets, who are the majority of people, whose schooling, as well as the mass media, have brainwashed to beleive in the banksters' bullshit.
While the existing debt slavery systems have generated numbers which have become such debt insanities that those overall systems are headed towards some sort of pyshcotic breakdowns, one should NEVER underestimate both the short-term and long-term significance of human civilizations ACTUALLY operating according to the principles of organized crime. The ways that ACTUALLY works are that all private property is based on backing up claims with coercions, while money is measurement backed by murder. HOWEVER, the social successes of those systems result in most people believing in utter bullshit about that ...
There is no reasonable hope for the foreseeable future, because there are no good grounds to expect that enough people will overcome the degree to which they believe in bullshit, because the dominate natural languages, as well as the dominate philosophy of science, are based on the long history of civilization being controlled by backing up lies with violence, in which context, the central banks were the most extreme manifestation of sophisticated systems of legalized lies, backed by legalized violence.
The profound paradoxes built into the basic structure of social pyramid systems is that while they necessarily operate according to the principles and methods of organized crime, the most socially successful ways of doing that were to operate the death controls through the maximum possible deceits, in order to back up financial controls based on the maximum possible frauds. Those systems necessarily suffer from final failure from too much "success" at doing that, since enforcing frauds never stops those frauds from being false, although their social successes were based on the vast majority of people believing in absurdly backward bullshit about the basic social and political facts.
That is what this article above did. It cruised through on autopilot, superficially understanding things. Despite the THEORY that We the People control the politicians, and their government charters the banks, including the central banks, the PRACTICAL REALITIES are that governments are the biggest form of organized crime, controlled by the best organized gangsters, who are currently the international banksters, that set up the central bank systems.
Furthermore, the few people who actually understand that continue to mostly be controlled opposition, who promote various old-fashioned bullshit "solutions" which tend to deliberately ignore the deeper reasons for why and how MONEY IS MEASUREMENT BACKED BY MURDER, and therefore, tend to promote nostalgic nonsense about some sublime politics based, on impossible ideals, that would not operate according to the principles and methods of organized crime.
The deeper realities are that the debt controls were backed by the death controls, because they MUST necessarily be. To be more realistic about the political problems tends to result in extremely dismal conclusions. THEORETICALLY, we would have to change the ways that the political processes were funded, in order to change anything else. However, that is obviously a Catch 22 double-bind paradox. The privileged people who already can legally make the public "money" supply out of nothing are in a league of their own. Nobody else can compete with their ability to dominate the funding of the political processes, and the vicious spirals that drives.
IF one is serious about the actually existing problems, then the only genuine solutions must be better organized crime, to operate better death controls, to back up better debt controls. However, the actual tragic trajectory we are on is for the runaway debt insanities to provoke death insanities.
Given that the ruling classes operate through backing up lies with violence, and they benefit from doing that, at least in the short to medium terms, and those they rule over have thereby been brainwashed to believe in bullshit for generation after generation (which continues to overwhelmingly be the case now through the public schools and mass media) there are NO practically possible solutions. Instead, we are headed towards a series of severe social storms and psychotic breakdowns of the established systems of enforced frauds, collapsing into chaos, due to the paradoxes of their final failure from too much social success, for too long, based on being able to back up lies with violence, driving civilization as a whole to become criminally insane.
I would NOT look forward to the "END GAME FOR CENTRAL BANKS," because that would amount to some series of psychotic breakdowns of the established systems of ENFORCED FRAUDS. When that happens, as it inevitably must, the vast majority of people will likely continue to want to believe in bullshit, while some people will scramble to develop some new systems of lies backed by violence, which can reassert political control afterwards ... I would like to think that enough people would learn enough so that we could go through intellectual scientific revolutions that applied to political science, in order that we could transform the social pyramid systems into toroidal vortex systems, that operated better combined money/murder systems. However, that currently appears to be nothing more than vain political fantasies.
Although the majority of people who bother to post comments and vote on Zero Hedge articles immediately recognized that it is ridiculous bullshit to assert that the politicians theoretically control the banksters, when it is obvious that the opposite is actually the case, the people who read Zero Hedge and comment are nothing more than a tiny minority of a tiny minority, while the vast majority continue to incompetent political idiots who know nothing about how the monetary and taxation systems really work, because, for a wide variety of reasons (which seem to make sense to them) they do not want to know.
Governments are basically military organizations, which citizens are members of. However, most of those citizens have been brainwashed to believe in bullshit to the degree that they are now nothing more than Zombie Sheeple, being fleeced to exhaustion, while they, and their lambs, are being set up to be slaughtered. Since those Zombie Sheeple do not understand how and why the Vicious Wolf people, i.e., the banksters, operate in the ways that they do, there are no reasonable ways to expect that those kinds of Zombie Sheeple will promote representatives which were serve the interests of those Zombie Sheeple better, rather than continue to promote representatives which are actually the banksters' political puppets.
THE VAST MAJORITY OF PEOPLE BELIEVE IN BULLSHIT TOO MUCH TO BE ABLE TO UNDERSTAND AND OPERATE BETTER ORGANIZED CRIME, BACKING UP BETTER DEBT CONTROLS, WITH BETTER DEATH CONTROLS.
While it is theoretically possible that human beings could understand themselves more scientifically, and thereby actually resolve their problems better, at the present time the vast majority of people believe in bullshit, and most of the controlled opposition to the established systems promotes the same basic bullshit, which makes any genuinely better resolutions of the real problems basically impossible. At the present time, it is practically impossible to image the emgence of a political situation wherein the most successful politicians were not still the best available professional liars and immaculate hypocrites. (In order for that to happen, enough people would have to stop believing in false fundamental dichotomies and related impossible ideals, in order to elect enough politicians who were not still the banksters' puppets, spouting the banksters' bullshit.)
Practically everyone, including the author of the article above, stays INSIDE the bullshit frame of reference, that is based on deliberately ignoring those basic social and political facts. Therefore, our political economy is based on enforced frauds, which enabled that to operate through attitudes of evil deliberate ignorance towards human ecologies in the context of the greater overall environmental ecologies. Therefore, our economic problems are actually many orders of magnitude WORSE than anything which is being promoted as "solutions" in any publicly significant way.
Every person on the planet needs to read and understand your comment. We all need to help spread this truth via internet and face to face.
Wish I could upvote you again. Great rant. You must have been the other "Poor" vote for the article. I posted my synopsized version below, before I saw your post. Peace.
These irritating little shits should be wearing the star of david with 'zionist disinformation operative' writ large upon it
More Ramirez cartoons coming soon too ill bet, you could make a whole spin off show with all the trash that's getting through the filter here.
Germany is an occupied vassal state, it will cave. Merkel has about as much power as my state governor. I'm sure you didn't hear it here first!
Wah wah wah!!! They didn't TELL me first!
If the CB's were controlled by politicians (and the politicians were moral), the Fed would have been abolished long ago. These fuckers are in cahoots.
As to your "good for Main Street" comment, fuck you.
Well I think there's one thing we can all agree on: Central Bank decisions don't exist in a bubble.
Or wait... do they?
Well I think there's one thing we can all agree on: Central Bank decisions don't exist in a bubble.
Or wait... do they?
Stack On
That voice from a bunker in WWII iGermany is no doubt reverberating and haunting every central bank vault on Earth.. To their credit the Dutch and Merkel at least got some of their Gold back, but it may be too little too late. https://www.youtube.com/watch?x-yt-ts=1421782837&x-yt-cl=84359240&v=cmxE...
Man - I fucking love this site. The articles, the comments - even people I disagree with generally make a decent point here and there.
Plus - free speech! You know - that shit some of us fought for [it weren't oil or Israel or central banking, I'm assured].
I'm just coming off reading MSM articles and comments - it's like stepping out of NARNIA, coming here after reading the thoughts of 2 party partisan America.
"Why oh why do we trust central banks?"
I don't, but there is not choice but ot use the legal money. Let us assume we would not have to use this funny money. Does it mean central banks would not exist? Anyway as long as they are there and to control the "money" there will be always Boom/Bust. That's the sad but neverthless truth.
just to play devil's advocate
Surely you remember the events in the Spring of 1982 when Henry Kaufman "of Salomon Brothers, where he was Managing Director, Member of the Executive Committee, and in charge of the Firm’s four research departments. He was also a Vice Chairman of the parent company, Salomon Inc. Before joining Salomon Brothers, Kaufman was in commercial banking and served as an economist at the Federal Reserve Bank of New York."
Yes, that Henry Kaufman
And according to the Christian Science Monitor of June 1, 1982
But what was happening at the Jumboest of all Central Banks?Less than two months after the first Dr. Doom predicted "spectacularly higher" interest rates, the Fed, Kaufman's old employer, began to cut rates.
All of which is well and good except for the wild rumors that Solomon Bros was buying bonds hand over fist in the period of time from May 20, 1982 until the the Fed first dropped the prime and discount rates on July 20, 1982.
Remember that tv show where you could keep as many $100 bills as you could shove in your pockets and inside your shirt and pants in 5 minutes?
Well, Kaufman and Solomon Brothers had 2 months to do the same with US Bonds trading at 50 cents on the dollar.
So why blame the "banksters" for everything if it's the govt that's running the show?
Yes, but politicians are in the pockets of bankers and financiers... so????
One of the essential characters of Capitalism is that is is an economic system, NOT a political or a social one. Let companies grow above a certain size and capitalism dies becoming an economy cartel price driven or powerful enough to influence regulators. One way out is bring economy where it belongs, back at a manageable level, not above it. Unfortunately those companies that are too big to fail are the one that should be broken up in pieces in every field so that capitalism could go back to its mechanisms.
The ONLY action that governments should do to keep an healthy economic capitalist system is to prevent any company to grow above a certain absolute size or market share (national market share, not global market share). Unfortunately the global competition was the excuse to remove those boundaries and what we see today is a direct consequence of those boundaries been put aside...
No, it is better to preserve competition by preventing government from intervening in free markets. Government is ill suited to choosing winners and losers compared to the "invisible hand". It stifles real price discovery and efficient allocation of valuable resources. It takes a government to perpetuate a monopoly and prevent a level playing field where anyone who so chooses may enter the market without getting aced out by a bureaucrat or politician. Capitalism is Marx's term. Laissez faire free enterprise is to be desired as the remedy to cure the ills of corporativism.
I suggest that the Rothschilds are not in anyone's pocket. They can and do play both (any) side they choose.
The Davos Forum will be taking place soon. That's right- the people who cause the global problems are meeting to tackle global problems. Think about it. They use their wealth and connections to steer political endeavors, if not out right buy them and then these policies- that are in the globalists best interests- cause problems for the rest of the world.
When 80 people can own over half of the world's wealth you know the playing field is uneven. These people believe they have special abilities or are somehow above the common folk but in reality they are nothing more than opportunists with an ability to sell.
Wars are money making opportunities. Tragedies can be profitted from. Central Bankers feed them money created out of thin air.
You want sloutions for the world's problems- enact campaign finance reform and get rid of Central Banks. If governments can print bonds then they can print a dollar. Peg these dollars to something physical so no country can go crazy printing money like the U.S. or Japan
When money has a finite supply wars will end quicker or even be avoided through diplomacy. The world's carbon footprint will slow as capital is not thrown at ridiculous endeavors like fracking, this activity uses more energy than produces. People will use resources more wisely.
Let's not forget that these people pay little to no taxes thanks to a bevy of tax specialists. So when this group adjourns with their well thought out "solutions" it will be you and I paying.
Just say "No to Davos"