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The Central Planners Are Failing Fast

Tyler Durden's picture




 

For the last few years, the mantra of central planners around the world has been "if at first you don't succeed... buy a bigger printing press." However, as Citi's Matt King notes, the following four charts show the monetary experiments are having less and less impact (on the real economy and the pretend stock-market-based one) as peak debt overhangs swamp anything but financial asset inflation.

 

The PBOC is losing it...

 

The BoJ has lost it...

 

And as far as The Fed's Legacy...

 

Simply put - King concludes, Most of the economic benefit accrued during QE1..

Because there are structural things that you can't fix with liquidity...

 

 

Source: Citi's Matt King

 

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Thu, 02/12/2015 - 19:24 | 5778266 trader1
trader1's picture

Because only after we have lost everything are we free to do anything, like shelving the current financial economic system.

Thu, 02/12/2015 - 19:32 | 5778287 WhackoWarner
WhackoWarner's picture

I made a remark on another thread.

Krokodil. The junkie will inject until their flesh falls off and the bones are exposed.

Now I hear this wonder drug is being imported into the US to replace the soon to be inflationary crack.

But in financial terms it has been here for years.

(for less quick minds...Krokodil IS the finance system. Been injecting this crap until gangrene sets in and still a junkie)

Thu, 02/12/2015 - 19:36 | 5778302 Tao 4 the Show
Tao 4 the Show's picture

Problem with "central planning falling fast" is something called "full-spectrum" control. Means that printing is simply one of many control mechanisms. People are so far gone now, that if central planning did somehow fail, I think most people would not have the slightest idea what to do with themselves.

Here is an interesting exercise: Spend some time watching television in some country besides your own. If there is enough cultural difference, you may be able to see the social conditioning going on much more clearly than in your own country. For example, British TV is enough to convince a person that the Brits checked into the insane asylum years ago.

Thu, 02/12/2015 - 23:32 | 5779131 Colonel Walter ...
Colonel Walter E Kurtz's picture

Krokodil you say........looks like I picked the right week to stop sniffing glue!

Thanks for the tip Whacko.

Thu, 02/12/2015 - 19:49 | 5778342 WhackoWarner
WhackoWarner's picture

yes when the flesh melts off your bones.

Saw a story of a "pet" who was recovered recently. Husky cross that was hours away from death. ONLY thing in the belly was gravel and dirt.

Is that the grand plan? Is that nothing left to lose?

(are we now the pets of the 1%?)

Thu, 02/12/2015 - 20:04 | 5778401 Harbanger
Harbanger's picture

Socialism and it's central planning counterpart is bankrupt and failing.  They will not relinquish control however, until they turn every person and group against each other in the blame game, as they will NEVER take responisbility for what they created.  They will not stop until have taken the last bit of blood through taxation and confiscation from the Nations corpse.  All to maintain their last breath of power.  Only after this, comes the crash, burn and revival.

Thu, 02/12/2015 - 20:19 | 5778439 WhackoWarner
WhackoWarner's picture

Labels need to die.
Marxism,
Socialism
Capitalism

Does nobody think for themselves?

WTF. Lazy. As you argue semantics see what happens to reality.

Thu, 02/12/2015 - 20:31 | 5778490 Harbanger
Harbanger's picture

Reality exists regardless of what you call it, this is why the left in the US now HATES labels.  That's why they started  the "no labels" movement. It calls them out for who they are and makes them defend their actions.

Thu, 02/12/2015 - 20:33 | 5778502 Shad_ow
Shad_ow's picture

+1000

Thu, 02/12/2015 - 20:33 | 5778498 Shad_ow
Shad_ow's picture

Does the truth frighten you Whacko?

Thu, 02/12/2015 - 20:53 | 5778552 falconflight
falconflight's picture

Wait a minute, what ism would you suggest explains the state of affairs in economics (please don't go GeoWash on me).

Thu, 02/12/2015 - 20:59 | 5778567 Harbanger
Harbanger's picture

Good question.  I'll pick it up later or on another thread.  Have to go see a lady about a dog.

Thu, 02/12/2015 - 20:14 | 5778426 booboo
booboo's picture

Debt Merchant junkies are main lining with diminishing highs, these junkies are going to die before they hit bottom.

Thu, 02/12/2015 - 20:23 | 5778453 WhackoWarner
WhackoWarner's picture

And what is the drug for the 1%?

I think you can preorder and Ihone6 in 24 kt. gold with a pink frigging diamond for 48 million.

Not a joke.

Thu, 02/12/2015 - 21:07 | 5778590 p00k1e
p00k1e's picture

‘And what is the drug for the 1%?’

Indulgences.  Those ‘milk carton kids’ are ending up somewhere.

Thu, 02/12/2015 - 19:26 | 5778280 TheRideNeverEnds
TheRideNeverEnds's picture

You're gonna need a bigger helicopter... 

Thu, 02/12/2015 - 19:27 | 5778283 SWRichmond
SWRichmond's picture

They're not experiments, they are the desperate acts of panicked control freaks.

Thu, 02/12/2015 - 19:47 | 5778349 Alea Iactaest
Alea Iactaest's picture

Articles like this are utter bullshit to distract you. The Fed has no intention of improving the economy. The "bugs" are a "feature". The entire QE program is simply an elaborate con game to concentrate wealth for the Chosen Ones.

That part in the article about "if at first you don't succeed... buy a bigger printing press"? Utter bullshit! The program is succeeding wildly, for those who designed it.

If any of the above is news to you or -- worse -- you deny it, then there is no hope for you.

If you are uncomfortable with the above, then simply go back to your regularly scheduled programming.

If, however, you are tired of being fucked then just lube up. Cause it ain't gonna stop anytime soon.

Thu, 02/12/2015 - 19:28 | 5778286 Pairadimes
Pairadimes's picture

The drug doesn't work anymore. Time to kick the addiction.

Thu, 02/12/2015 - 20:06 | 5778407 new game
new game's picture

i want free money, i want free money.  i want free money.

i don't have to work anymore because i deserve free mony.

send free money to me, i am american and vote accordingly.

thanks in advance, great job o, keep the free money coming.

i am most gratefull to all of you hard working americans, thanks!

while you work i eat for free, get subsidized housing, get my heat bill mostly paid for and go out and 

pick up free food. if the car won't start i can call ride share and get a free lift to the grocery store, awesome. if i need to get ahold of someone, the call is free. thanks for all that too. oh, i also get my health care for free, also i qualify for pell grant and the leftover credit allowedd me to get a free apple. wow, so gratefull cause now i post here on zh. keep up the hard work cause it is super of you all to help me with all these free things i really need cause i really don't want to fight all those crowded roads and go to work. really mean it - super duper thanks!

merica is my home, i love it here. sincerly special merican.

Thu, 02/12/2015 - 20:29 | 5778485 WhackoWarner
WhackoWarner's picture

Yup I will kick my addiction for sure.

INSTEAD of the IPhone6 at 48 MILLION. I will downgrade to the 25 million option.

And then I will sympathize with the rest of society? (which I avoid like the Black plague)

Think I am angry? Try again, today I am in a good mood.

I abhor abuse. Instead of guillotines I now advocate SWAT team confiscation of assets....and Stocks in public squares where rotten fruits can be hurled....and then decades of actual community service.

Guillotines are too easy.

Thu, 02/12/2015 - 20:48 | 5778541 new game
new game's picture

the free ride gets better. while you all hard workers are working i go to free stuff on craigs list and get all kinds of moar free stuff from hard working mericans. some really nice stuff. mericans have big hearts for us free deservers. another trick of my free trade is to keep an eye out free stuff on the curb. couches, tv's you name it, even got a free snowblower! and while i go to the library and hang out i meet the coolest free thinking people. acorn invited me to helpthem rally for all kinds of stuff i never thought was out there. now i also got a tip to call this law guy who could get me a monthly check. all i have to do is practice my limp and he told me i have disability and it would take about 6 months and it will kick in. might mess with other free stuff, but now i can move about even more freely. i will pass on moar tips because some of you might like my freedom and want it. ps. spring is coming and while you work i will get a killer tan while you are stuck inside. my tan for free looks like a million dollars-priceless as i circulate around the parks and play volleyball and keep fit. thanks so much, awesome to live in merican land of the free...

Thu, 02/12/2015 - 19:29 | 5778290 Stoploss
Stoploss's picture

"financial asset"

WTF is that???

Thu, 02/12/2015 - 19:35 | 5778305 kaiserhoff
kaiserhoff's picture

That's us, in gubbermint, PC talk.

Calling people slaves is so Nineteenth Century.

 

Thu, 02/12/2015 - 19:31 | 5778298 Dr. Engali
Dr. Engali's picture

Stawks are up, Gold and silver are contained, oil and commodities are down, it seems to me like a central bankers have it under control.

Thu, 02/12/2015 - 19:34 | 5778311 kaiserhoff
kaiserhoff's picture

Have you asked the Greeks about that?

(Tyler was exactly five years early.  Amazing.)

Thu, 02/12/2015 - 20:04 | 5778386 noben
noben's picture

My broken clock is spot on twice a day.

So, yeah, being "5 years early" is Amazing, alright. Amazingly bad: Nothing you can front run JIT, or something you want to miss out on.

p.s. If we agree that everything is MA-NI-PU-LA-TED, then WTF do we even bother with porn charts or so-called fundamentals?

Seems to me that the only Fundamentals we need to heed are those that TPTB and the EBT/SNAP crowds heed: VOM, filled shelves and Plastic that works.

-exasperated noben

Thu, 02/12/2015 - 19:33 | 5778306 i_call_you_my_base
i_call_you_my_base's picture

The super wealthy are getting wealthier. Mission accomplished.

Thu, 02/12/2015 - 19:35 | 5778314 Sudden Debt
Sudden Debt's picture

Shit started turning sour 6 months ago and now in februari, it just kicked up a notch.

small businesses are now really getting into troubles and projects have stopped all together. It will take about 2 months for the data to show up in the graphs but it’s bad. It’s now worse than 2008 already.

2 months. That’s the ECB’s and FED’s deadline to get back in action.

so if they want to raise rates, that’s the window.

they just can’t do it, if they do it, they themselves go bankrupt.

if they don’t the serve no purpose when the second crash comes.

And no, the market won’t dive during the next month, it will keep on rising because it’s clear they won’t raise rates and start QE CC

Thu, 02/12/2015 - 19:48 | 5778355 disabledvet
disabledvet's picture

It is an interesting concept that say...the SNB goes bankrupt.

 

Something certainly scared them.  I doubt it was the IRS.

 

Not that the media will say anything of course. Interesting though that "new media" is in fact always being "shocked."

 

Never trust anything you read online?  Why does everyone want to turn that thing off then?

 

The US Treasury Secretary has been making a lot of noise of late about the value of the dollar...when his job in fact is to say "no comment."

 

The fact that folks were always commenting on their currencies was a big reason for the Great Depression.

 

Not a good time to be long equities.

Thu, 02/12/2015 - 19:50 | 5778360 optimator
optimator's picture

should read, "if at first you don't succeed at first -STOP- why make a fool out of yourself a second time"

Thu, 02/12/2015 - 19:55 | 5778373 lordbyroniv
lordbyroniv's picture

fuckk everyone

 

i love u zerohedge,..you are all my brothers and sisters

 

fuck everyone

 

fuck them all 

Thu, 02/12/2015 - 20:09 | 5778408 LooseLee
LooseLee's picture

Do any of you dip shits know that 'Central Planning' is a COMMUNIST edict?

It is antithetic to FREEDOM.

So any of you 'Tards that support this and profit from it be forewarned:

Your 'reward' for this action will not only be uncomfortable, but downright painful.

It is written.

Thu, 02/12/2015 - 20:11 | 5778420 lordbyroniv
lordbyroniv's picture

This is  why i support Elizabeth Warren 

 

/ sarc

Thu, 02/12/2015 - 20:14 | 5778423 falconflight
falconflight's picture

Dig it, she is supportive of total nationalization of the economy.  Not that I feel any affection for the quasi (fascist) nationalization of the economy for which we now find ourselves.

Thu, 02/12/2015 - 20:25 | 5778468 Harbanger
Harbanger's picture

The economy has already been practically nationalized by the Fed printing.  It's like being at war and rather than declaring a war or calling it a war, we make up nice names for it.

Thu, 02/12/2015 - 20:31 | 5778492 falconflight
falconflight's picture

Let's not underplay the regulatory ownership of every sector right down to cup cakes and lemonade.  

Thu, 02/12/2015 - 20:38 | 5778518 Harbanger
Harbanger's picture

Yes, you can indirectly Nationalize through regulatory agencies.  These bureaucracies have more power than the President.

Thu, 02/12/2015 - 20:47 | 5778536 falconflight
falconflight's picture

The Bureaucracy is a legislative branch, in effect, within the  Executive Branch.  None ever face the taxpayer or voter.  It is the heart of authoritarianism, the administrative state.

Thu, 02/12/2015 - 20:11 | 5778421 falconflight
falconflight's picture

This could go on for many more years, the Soviets and the Warsaw Pact nations managed it for decades. Merikans are being molded to accept an existence based on public charity, with a few electronic baubles.  I've been waiting for reality to manifest now for five years, and amid all the alternative media blogs pointing out the fallacy of it all, it rolls on.  Maybe tomorrow, we'll wake up to utter chaos... struggling to live beyond basic survival, but maybe, and just as possible, tomorrow plus 20 years.  

Thu, 02/12/2015 - 20:21 | 5778444 lordbyroniv
lordbyroniv's picture

one needs not even look so far as the Soviets.  Look at Europe !!!!!!!!!!!!

Thu, 02/12/2015 - 20:33 | 5778499 falconflight
falconflight's picture

Well Europe at least had an American benefactor post WWII through the 80's.

Thu, 02/12/2015 - 21:11 | 5778604 kchrisc
kchrisc's picture

The banksters are like tourists stranded on a sinking swamp boat deep in the Everglades except instead of hungry alligators, guillotines await.

The banksters need to repay us.

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