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The Ultimate Crisis Will Be a Central Banking Crisis

Phoenix Capital Research's picture




 

The final and ultimate round of the Crisis that begin in 2008 will occur when faith is lost in the Central Banks.

 

The entire rally in stocks post-2009 has been due to Central Bank intervention of one kind or another. Whether it be by cutting interest rates, printing money, buying bonds, or promising to do more/ verbal intervention, the Fed and others have done everything they can to push stocks higher.

 

As a result, today, more than 90% of market price action is based on investors perceptions of what the Central Banks will do… NOT fundamentals. For instance, if bad economic data hits the tape, the market tends to rally because investors believe this will result in the Fed having to print more money.

 

Again, the primary driver of stocks is no longer fundamentals, but Central Bank intervention.

 

There are many problems with this, not the least of which is the fact that we now know that Central Bankers will openly LIE about what they’re doing. Consider the recent revelations concerning ECB President Mario Draghi’s claim that he will do “whatever it takes” to hold the EU together.

 

Geithner: [T]hings deteriorated again dramatically in the summer which ultimately led to him saying in August, these things I would never write, but he off-the-cuff – he was in London at a meeting with a bunch of hedge funds and bankers. He was troubled by how direct they were in Europe, because at that point all the hedge fund community thought that Europe was coming to an end. I remember him telling me [about] this afterwards, he was just, he was alarmed by that and decided to add to his remarks, and off-the-cuff basically made a bunch of statements like ‘we’ll do whatever it takes’. Ridiculous.

 

Interviewer: This was just impromptu?

 

Geithner: Totally impromptu…. I went to see Draghi and Draghi at that point, he had no plan. He had made this sort of naked statement of this stuff. But they stumbled into it.

 

http://blogs.ft.com/brusselsblog/2014/11/11/draghis-ecb-management-the-leaked-geithner-files/

 

Here is former Secretary of the Treasury, Timothy Geithner, stating openly that Mario Draghi had “no plan” and was simply bluffing when he claimed, “we’ll do whatever it takes.”

 

Draghi  was not only being deceptive (he didn’t have a plan); he was actually lying in the sense that the ECB couldn’t “do whatever it takes.” The OMT policy he talked about creating is in fact illegal based on EU law. He couldn’t do anything then and he can’t now.

 

And yet, EU stocks have rallied hard, EU sovereign bond yields have fallen, and the world has proclaimed that the EU Crisis is “over”… all based on this lie.

 

If you think Draghi is somehow unique in this regard amongst Central Bankers, thinking again. Recently Bank of Japan Governor Haruhiko Kuroda increased the Bank of Japan’s QE program, not because it would benefit Japan’s economy, but because doing so would make his colleagues’ forecasts better match his own.

 

Put simply, the folks who are supposed to be holding the financial system together have been caught openly lying and spending money just to suit their own egos. The consequences of this have not yet been felt. But the seeds of the next crisis have already been sown in these revelations.

 

The next time stuff hits the fan, will the world be as trusting in Central Banker proclamations? Will we continue to believe these folks are omnipotent? Or will their phony promises accomplish nothing?

 

We’ll find out.

 

Don’t let the second round of the financial crisis crush your portfolio… we offer a FREE investment report Financial Crisis "Round Two" Survival Guide that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.

 

You can pick up a FREE copy at:

http://www.phoenixcapitalmarketing.com/roundtwo.html

 

Best Regards

Phoenix Capital Research

 

 

 

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Wed, 02/18/2015 - 02:02 | 5797630 TheRideNeverEnds
TheRideNeverEnds's picture

Yea yea, been hearing it for years

Meanwhile back in reality.

E-minis ---> the moon

Bonds --->. The moon

Commodities ----> the trash.

Everything real is practically cheaper than its ever been, all speculative 'risk' assets are rising to never before inhuman history high prices.

There are two possible outcomes. 1- free money forget. 2- the end of money as we know it.

Considering that the interests of those who literally run the world favor the first I betting on that one....

Wed, 02/18/2015 - 04:59 | 5797808 Memedada
Memedada's picture

Right now we see the velocity of quantitative changes increasing – meaning, todays crisis (or ‘growth’ of the Ponzi scheme) is measured in trillions. A number formerly (rightly) reserved to those studying the universe.

You should however be aware that all quantitative changes of any magnitude most often (if not always) result in a qualitative change. A systemically/structurally change. Nothing goes on forever – especially not weak human abstract constructions like the fiat Ponzi scheme/Casino-Gulag-model. It’s destined to fail. The question is not if but when.

Tue, 02/17/2015 - 23:18 | 5797300 Chalan
Chalan's picture

What crisis? If we learned anything from Cyprus 3 years ago is that that the MOFO Banksters are very resourceful with Tax payers' money.

Tue, 02/17/2015 - 19:35 | 5795750 Radical Marijuana
Radical Marijuana's picture

Central Banks are the Kings of Fraud.

FAITH IN ENFORCED FRAUDS ???

To have "faith" in those Banks is to have faith in the ability to back up legalized lies with legalized violence. To the degree that money is measurement backed by murder, one can have faith in the ability of the debt slavery systems, supervised by the central banks, that they can continue to be backed up by the death controls of sovereign states, in ways which require the vast majority of people do not understand that, because they do not want to understand that.

The established systems are based on being able to count on the systems of lies backed by violence keeping enough people ignorant and afraid, so that those established systems can continue to operate. To have faith in the ability to back up lies with violence takes place in the context where the monetary system is the supreme State Religion, in which the Central Banks are the High Priests. Any faith in that State Religion is due to the prolonged history of being able to back up lies with violence. During the life time of those still alive today, the exponential growth of those Enforced Frauds has resulted in globalized electronic monkey money frauds backed up by the threat of force from apes with atomic bombs.

The Central Banks are the pyramidion structures in pyramid systems of Enforced Frauds, where both those frauds, and the force to back them up, have been amplified many orders of magnitude. That monetary system has become utterly psychotic, however, that MAD Money As Debt system deserves the same degree of practical faith as does the MAD Mutual Assured Destruction system. The basic paradoxes of civilization based on being able to back up lies with violence have been developing at exponential rate for thousands of years, while each doubling became a more flabbergasting level of fraud than the previous doubling. Meanwhile, most analysis only notices how blatantly bizarre the latest doubling of the debt slavery system numbers has become. There is little public analysis of the deeper social facts that civilization has been controlled through being able to back up lies with violence, which was never able to resolve the contradiction that enforcing frauds cannot stop those frauds from still being false!

The faith that people have in the monetary system is based on them not being able and willing to face the facts about that monetary system. Basically, our society is totally dominated, throughout both the established systems, and their controlled opposition, by the best professional liars and immaculate hypocrites. Their degree of social success was based on how well they could bullshit about the banks' enforced frauds, and find ways to successfully operate through the banksters' bullshit world view, etc. ... The monetary system is quite the astonishing State Religion, which is utterly irrational, when one looks at that in any more relatively objective ways. However, the social habits which have faith in that system are based on thousands of years of successfully being able to back up lies with violence, so that we could arrive at the point where we are today, where the Central Banks' ENFORCED FRAUDS, are struggling to double their total insanities yet again one more time.

The Phoenix Capital series of articles are like a boy skipping stones across a very deep ocean. There is nothing there but the most superficial recognition of the magnitude of social storms that are brewing on the horizon of history. Of course, NONE of the banksters have any way to better understand their problems regarding how to keep on enforcing frauds, after those have become electronics backed by atomic energy, other than endeavouring to continue to be all-star can kickers.

Generally speaking, our society has become terminally sick and insane, because our systems are based on enforced frauds, that most people had unthinking trust in, because they never thought about where the exponential growth of backing up lies with violence was going, but rather, only personally attempted to take advantage of that situation, as it developed.

While I agree that the ultimate crisis will be a central banking crisis, the reasons for that are the central banks are the ultimate expression of ENFORCING FRAUDS, in ways that the vast majority of people do not understand because they do not want to understand. Since that is the case, more radical truth is not going to make any real difference to the criminally crazy civilization that we are living inside, as it drives itself through its contradictions towards psychotic breakdowns. Almost nobody is able and willing to fully face the facts that they have had faith in a criminally insane system. The consequences are going to be spectacular psychotic breakdowns. However, even when that happens, most people will likely continue to cling to believing in bullshit, rather than begin to better understand how and why the current runaway debt insanities breaking down provoked death insanities.

The vast majority of people will probably continue to NOT want to understand that money is measurement backed by muder, while the public "money" systems were based on governments enforcing the banksters' frauds. The future of civilization will surely continue to be controlled by systems of enforced frauds, while too few people will ever want to understand that enough to change it, until that becomes too little, too late, to matter much anymore. The ultimate crisis will be a central banking crisis, BECAUSE social pyramid systems are based on being able to back up lies with violence, for generation after generation, so that most people have faith in lies, or believe in the banksters' bullshit.

Since that includes to controlled opposition groups just as much as it does the established systems, and that includes the ways that the dominate natural languages and philosophy of science were built on top of the biggest bullies' bullshit world view, being the most prevalent social stories, more radical truth is several orders of magnitude more radical than what the series of articles from Phoenix Capital, et alia, have been presenting on Zero Hedge! It is almost impossible to overstate the degree to which we are living inside of a Bizarro Mirror World, or a Wonderland Matrix, where everything appears backward and absurd, including the bogus "solutions" proposed by the controlled opposition groups, just as much as the bullshit "solutions" promoted by the established systems of the banksters! To go more thoroughly through the analysis to to recognize that not only is money measurement backed by murder, but it necessarily must be. Therefore, not only are the enforced financial frauds due to debt controls being backed up by death controls, but they necessarily must be.

To more fully understand the established systems, and their controlled opposition groups, one must admit and address the basic issues that governments are the biggest forms of organized crime, controlled by the best organized gangs of criminals, which currently happen to be the banksters, in which the National Central Banks are the National Kings of Fraud, while the Bank of International Settlements is the King of Kings of Fraud. One is NOT recognizing the deeper nature of the problem if one then proposes bogus "solutions" based on impossible ideals that should stop that from being the case. The only genuine solutions are to develop better systems of organized crime to control civilization (or the more probable default "solution" that civilization will destroy itself.)

The approach taken by Phoenix Capital is a very shallow one, verging on being silly, other than when compared to those who continue to promote the established systems of enforced frauds, without admitting that they have already generated numbers which have become debt insanities. Of course, on the superficial level which Phoenix Capital presents the problems, that is correct enough. The central banks are obviously run by liars, who do not know what to do other than keep on telling bigger lies. After all, that has worked well enough for them for Centuries. That their enforced frauds were on exponential growth curves, which are reaching some real limits, is NOT something that they ever had to cope with before.

They were only prepared to continue to operate as professional liars and immaculate hypocrites within the established systems, while not having to deal with any opposition which was not also controlled to continue to operate within the same basic bullshit world view. The fundamental structure of the established systems are based on being able to continue doubling down on enforcing frauds ...  Neither the central banksters, nor their controlled opposition, has anything else to offer in a public debate.

However, it is clear that the only things that they have actually prepared to do is to drive death insanity situations. After all, the ACTUAL systems are ENFORCED FRAUDS, which have operated as debt slavery backed by wars based on deceits. Thus, the ONLY things that the banksters are really doing is advancing their agenda to provoke more wars based on deceits. They are continuing to do that despite their MAD situations developing to the degree of electronic frauds backed by atomic bombs.

IF the opposition to the central banks was not almost totally controlled, THEN they would be proposing better death controls, to back up better debt controls. However, obviously, that is NOT the case. Instead, we continue to drown in bullshit, piled deeper! The FACTS are that money is measurement backed by murder. The ways that the vast majority of people continue to not want to understand that manifest in the ways that they continue to have faith in systems of ENFORCED FRAUDS, because of the history of civilization being built on the basis of backing up lies with violence becoming the currently established systems of legalized lies, backed by legalized violence, in the form of the established State Religion Monetary System, that people can have faith in only to the degree to which they continue to not want to understand how that actually works.

Tue, 02/17/2015 - 21:16 | 5796763 Creepy A. Cracker
Creepy A. Cracker's picture

I'm not sure that you wrote/cut-and-pasted enough.  Did you have somewhere to rush off to?

Tue, 02/17/2015 - 23:43 | 5797380 Radical Marijuana
Radical Marijuana's picture

Yes, I had to rush off ... However, nothing was cut and pasted in that except the quotes featured as such from the article above. Otherwise, I simply wrote what I was thinking, after reading that article.

(Your apparent ad hominem was a Creepy waste of electricity.)

Wed, 02/18/2015 - 09:24 | 5798153 Creepy A. Cracker
Creepy A. Cracker's picture

Dude... I'm solar powered, man.  No wasted electricity here...

Tue, 02/17/2015 - 16:44 | 5795270 dexter_morgan
dexter_morgan's picture

No, really?

Tue, 02/17/2015 - 15:32 | 5794938 KnuckleDragger-X
KnuckleDragger-X's picture

Plan or no plan, it makes no difference, the final outcome is set and how we arrive is the only thing left to be determined, freedom is just another word for nothing left to lose.....

Tue, 02/17/2015 - 16:46 | 5795285 Cynicles
Cynicles's picture

The US, where freedom from liberty still exists.

-Cynicles

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