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Central Banks Have Lost Control Of The World

Tyler Durden's picture




 

With the world's oldest central bank - Sweden's Riksbank - taking the plunge into negative rates, there have been 19 'eases' by central banks this year, Morgan Stanley warns of "ghosts of the 1930s." With competitive 'easing' stoking fears of international currency wars, The Telegraph notes however that looser monetary policy is not the order of the day everywhere in the world, and herein lies potential danger for the world economy.

 

The world's interest-rate policies...

Click image for interactive version

As The Telegraph reports,

Looser monetary policy is not the order of the day everywhere in the world (see map above), and herein lies potential danger for the world economy.

 

The expectation of a normalisation of monetary policy by the Federal Reserve has resulted a sustained rally in the US dollar. Such strength in the world's reserve currency has simultaneously applied pressure on economies pegged to the greenback.

 

Meanwhile rate hikes from the Fed - which are expected to begin later this year - will naturally leader to tighter monetary conditions in economies everywhere from Mexico to Hong Kong.

 

It is this divergence in the actions of the world's major central banks which could lead to a new global liquidity crisis, according to the governor of the Bank of England.

 

Despite robust job creation and economic output in the domestic economy of the US, the trend towards lower global interest rates will probably slow the extent of the Fed's rate hikes once it finally gets off zero, according to Kit Juckes at Société Générale.

 

"The best we can hope now is that the dollar’s advance is orderly and the impact on global capital flows is limited" said Mr Juckes.

The 19 Policy 'eases' so far... (or 24 if Romania's 2 and Denmark's 4 are counted)

Jan. 1 UZBEKISTAN
Uzbekistan's central bank cuts its refinancing rate to 9 percent from 10 percent.

Jan. 7/Feb. 4 ROMANIA
Romania's central bank cuts its key interest rate by a total of 50 basis points, taking it to a new record low of 2.25 percent. Most analysts polled by Reuters had expected the latest cut.

Jan. 15 SWITZERLAND
The Swiss National Bank stuns markets by scrapping the franc's three-year-old exchange rate cap to the euro, leading to an unprecedented surge in the currency. This de facto tightening, however, is in part offset by a cut in the interest rate on certain sight deposit account balances by 0.5 percentage points to -0.75 percent.

Jan. 15 INDIA
The Reserve Bank of India surprises markets with a 25 basis point cut in rates to 7.75 percent and signals it could lower them further, amid signs of cooling inflation and growth struggling to recover from its weakest levels since the 1980s.

Jan. 15 EGYPT
Egypt's central bank makes a surprise 50 basis point cut in its main interest rates, reducing the overnight deposit and lending rates to 8.75 and 9.75 percent, respectively.

Jan. 16 PERU
Peru's central bank surprises the market with a cut in its benchmark interest rate to 3.25 percent from 3.5 percent after the country posts its worst monthly economic expansion since 2009.

Jan. 20 TURKEY
Turkey's central bank lowers its main interest rate, but draws heavy criticism from government ministers who say the 50 basis point cut, five months before a parliamentary election, is not enough to support growth.

Jan. 21 CANADA
The Bank of Canada shocks markets by cutting interest rates to 0.75 percent from 1 percent, where it had been since September 2010, ending the longest period of unchanged rates in Canada since 1950.

Jan. 22 EUROPEAN CENTRAL BANK
The ECB launches a government bond-buying programme which will pump over a trillion euros into a sagging economy starting in March and running through to September next year, and perhaps beyond.

Jan. 24 PAKISTAN
Pakistan's central bank cuts its key discount rate to 8.5 percent from 9.5 percent, citing lower inflationary pressure due to falling global oil prices. Central Bank Governor Ashraf Wathra says the new rate will be in place for two months, until the next central bank meeting to discuss further policy.

Jan. 28 SINGAPORE
The Monetary Authority of Singapore unexpectedly eases policy, saying in an unscheduled policy statement that it will reduce the slope of its policy band for the Singapore dollar because the inflation outlook has "shifted significantly" since its last review in October 2014.

Jan. 28 ALBANIA
Albania's central bank cuts its benchmark interest rate to a record low 2 percent. This follows three rate cuts last year, the most recent in November.

Jan. 30 RUSSIA
Russia's central bank unexpectedly cuts its one-week minimum auction repo rate by two percentage points to 15 percent, a little over a month after raising it by 6.5 points to 17 percent, as fears of recession mount following the fall in global oil prices and Western sanctions over the Ukraine crisis.

Feb. 3 AUSTRALIA
The Reserve Bank of Australia cuts its cash rate to an all-time low of 2.25 percent, seeking to spur a sluggish economy while keeping downward pressure on the local dollar.

Feb. 4 CHINA
China's central bank makes a system-wide cut to bank reserve requirements -- its first in more than two years -- to unleash a flood of liquidity to fight off economic slowdown and looming deflation.

Jan. 19/22/29/Feb. 5 DENMARK
The Danish central bank cuts interest rates a remarkable four times in less than three weeks, and intervenes regularly in the currency market to keep the crown within the narrow range of its peg to the euro.

Feb. 13 SWEDEN
Sweden's central bank cut its key repo rate to -0.1 percent from zero where it had been since October, and said it would buy 10 billion Swedish crowns worth of bonds

February 17, INDONESIA
Indonesia’s central bank unexpectedly cut its main interest rate for the first time in three years

February 18, BOTSWANA
The Bank of Botswana reduced its benchmark interest rate for the first time in more than a year to help support the economy as inflation pressures ease.
The rate was cut by 1 percentage point to 6.5 percent, the first adjustment since Oct. 2013, the central bank said in an e-mailed statement on Wednesday.

*  *  *

Not exactly the actions of a world on the verge of escape velocity growth...

 

It doesn't seem to be working... have central banks lost control?

 

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Wed, 02/18/2015 - 23:40 | 5802026 LetThemEatRand
LetThemEatRand's picture

The CBs have a Plan B, unfortunately.  It involves the surveillance state and MIC.

Wed, 02/18/2015 - 23:45 | 5802043 JoeySandwiches
JoeySandwiches's picture

Controlled collapse is always on the table as a plan b.  I think what central banks are doing now is desperation, though.  I think they'd prefer to extend their control quietly and boil us all slowly like frogs.

Controlled collapse into one world currency/one world bank may work, but it could easily fail and they would be on the chopping blocks soon after.

Wed, 02/18/2015 - 23:48 | 5802060 Stuck on Zero
Stuck on Zero's picture

The chart should not give interest rates but interest rates minus true inflation rates.  That's a different story. 

Thu, 02/19/2015 - 00:01 | 5802099 NoDebt
NoDebt's picture

The problem isn't so much on it's economic effects as it is on it's DEBT SUSTAINING EFFECTS.  If you got a huge unpayable debt, increases in rates makes everything go ka-boom.  And that's the end of the story.  

ZIRP, NIRP, QE... all levers have been pushed into the "run until failure" position.  Where they will remain until failure.

Thu, 02/19/2015 - 02:43 | 5802356 BrosephStiglitz
BrosephStiglitz's picture

All about public sector/private sector debt.  CBs give about as much of a shit about the people as a sociopath might: "No money, no job, no house, no car? Get fucked." 

Offload our debt burdens onto the sheep and saddle them with years of hardship.  When the dumb masses awaken into this bleak and dystopian future, it will be time to throw on the riot gear, or send in the tanks.

Thu, 02/19/2015 - 05:28 | 5802504 ebworthen
ebworthen's picture

Yes.  Central Bank policy is succeeding smashingly for:  the elites, the banks/corporations/insurers, their politician lackeys.

I haven't heard any tales of pay cuts, layoffs, or bankruptcies among upper level management and above, nor lobbyist/lawyers/politicians (revolving door).

Thu, 02/19/2015 - 10:21 | 5803073 AE911Truth
AE911Truth's picture

Q&A Disclosure Briefings Illegal NSO
https://www.youtube.com/watch?v=lEXT_s-dLL8

Thu, 02/19/2015 - 00:02 | 5802106 dexter_morgan
dexter_morgan's picture

would seem that way, but could just be a set up where the ultimate solution is not all these disjointed central banks and various currencies - what will be promoted as the solution will be one world bank and one global currency. Basically the ushering in of the ZWO.

Thu, 02/19/2015 - 00:09 | 5802130 InvalidID
InvalidID's picture

 

 Step 1, run up massive debt, Step 2, place debt on sucker nation, Step 3, collapse sucker and continue on...

Thu, 02/19/2015 - 00:55 | 5802237 hairball48
hairball48's picture

"Controlled collapse into one world currency/one world bank may work, but it could easily fail and they would be on the chopping blocks soon after."

Ah Joey, where you been son? "One World currency"?

That Euro and the ECB is really doing well for the single currency Eurozone isn't it?

I'd call you a fucktard but I see you've only been here 6 weeks so you can slide this time :)

 

Thu, 02/19/2015 - 01:27 | 5802290 JoeySandwiches
JoeySandwiches's picture

I'm talking about the theory that the IMF will step in and bail out all the central banks with it's SDR's and establish that as the reserve and only currency once crisis strikes. It's just a theory, but it's been making the rounds for years and years.

Also, when has something being fucked up ever led central banks to do anything different?  Fiat doesn't work, they'll try super fiat... Also, I've been here without an account for a lot longer than 6 weeks, so if you wanna call me a fucktard you got free range to do so.

Thu, 02/19/2015 - 03:13 | 5802380 bag holder
bag holder's picture

+1 for "super fiat"

Thu, 02/19/2015 - 11:57 | 5803613 detached.amusement
detached.amusement's picture

SDR = super dooper rogering

Thu, 02/19/2015 - 15:37 | 5804728 August
August's picture

>>>SDR's... the reserve and only currency once crisis strikes.

That's yes on 1, and no on 2.

We'll all be worshipping at the Temple of SDR, but individual "countries" will be peg their own currencies, and adjust as/if needed. 

The planet is not quite ready for a global command economy; that comes later.

Wed, 02/18/2015 - 23:44 | 5802044 Self-enslavement
Self-enslavement's picture

World Zionism (WZ) is the power to "counterfeit money” to enrich only themselves, the power to tax all others, and immoral pernicious usury, the three of which combine to plague the entire human race and cause massive debt-slavery and starvation worldwide for all. Also the power to evade all criticism, law enforcement and agreements internationally. Such nice people.

http://www.veteranstoday.com/2015/02/05/get-the-hell-out-of-our-country/

Wed, 02/18/2015 - 23:49 | 5802061 Usurious
Usurious's picture

 

 

the debt-money secret will soon be known to all..........

I wouldnt want to be a banker when that shit happens......

Thu, 02/19/2015 - 00:07 | 5802122 AntiFabian
AntiFabian's picture

You sound like so many uneducated, amoral, nihilistic people of Germany in the 1920s and 30s.

Thu, 02/19/2015 - 02:51 | 5802363 bag holder
bag holder's picture

I think the anti-Semites around here are on somebody's payroll, trying to discredit ZH. The thieves and plunderers are hiding in plain sight. We the Consumers don't care enough to do anything about it, but that doesn't mean there's an invisible conspiracy - just an empire in decline.

Thu, 02/19/2015 - 06:25 | 5802552 stacking12321
stacking12321's picture

while "self-enslavement" is indeed a rabid, jew-hating nazi, as evidenced by his other posts, he is nonetheless correct that central banks around the world are impoverishing the people through counterfeiting (money-printing).

how he can specifically ascribe this sort of financial malfeasance to "zionism", which is his code-word for jews, but he can't say jews because that would make him a racist who could get kicked off, is uncertain. perhaps one guess would be, that as a white supremacist, he wants to be able to think of his own race as pure, and that it's all those other people out there who are different from him, that are the problem. it's jews like greenspan and bernanke that are the problem. but, conveniently he seems to want to gloss over the fact that it's christians like george bush and bill clinton that put them in power. because, you know, those jews are crafty devils, and even though they are like, what, 1% of the population, they easily manipulate us god-fearing christian folk, because, you know, we're not so clever like they are.

Thu, 02/19/2015 - 06:08 | 5802543 trader1
trader1's picture

we already have surveillance state and MIC though, right?

 

Wed, 02/18/2015 - 23:44 | 5802041 FrankieGoesToHo...
FrankieGoesToHollywood's picture

The interest rate of greatest import is the rate the FED pays the big banks for excess reserves.  If that B*tch goes negative (FED stops paying), then a party only $2T could buy will start to unfold.  That will boost inflation by anyones definition.

Thu, 02/19/2015 - 00:10 | 5802131 Spitzer
Spitzer's picture

That's not how it works man.

 

A trend reversal in the bond market will cause some dollar depreciation as the dollars move into the forex markets. Then as the reversal progresses, more dollars will hit the forex markets which will cause an uptick in world dollar velocity. The velocity will cause an uptick in US inflation. Then the US inflation will cause more dollars to hit the forex markets. Eventually, capital flight will take hold and dollars will flood the forex market. This will cause domestic US inflation to take hold. The resulting inflation will increase domestic velocity to the point where there becomes a shortage of cash. This is when the Fed will step in and provide the cash that the velocity is demanding. That's where you get  hyperinflation.

 

The printing that the Fed does now just prolongs dollar confidence as it keeps asset markets solvent.

Post currency crisis printing is a totally diffrent animal. That printing is simply the Fed dispensing cash because there is a shortage of it because the money velocity is demanding it.  Because prices keep rising and people are not holding cash for very long.

Thu, 02/19/2015 - 00:16 | 5802140 Usurious
Usurious's picture

 

 

are the Trillion dollar bills (FRN) already printed?

Thu, 02/19/2015 - 00:22 | 5802172 Spitzer
Spitzer's picture

Nope

 

We are still in the pre-currency crisis stage where the money printing  prolongs confidence in a very perverse way.

Money velocity induced base money shortage central bank balance sheet expansion(inflation) is when we get the trillion $ bills.

 

 

Thu, 02/19/2015 - 00:27 | 5802187 Usurious
Usurious's picture

 

 

so the central bank will switch from credit or debt based money to debt free money?

how does a credit based system hyper inflate?

Thu, 02/19/2015 - 00:39 | 5802208 Spitzer
Spitzer's picture

A credit system can hyperinflate because the confidence that debt can be repaid is lost. All debt has a corresponding credit.

Hyperinflation is US Intl monetary system brought to its conclusion. If the 2008 collapse was allowed to take its course just like the Asian financial crisis was allowed to take its course, there would have been hyperinflation by the summer of 2009.

Mounting defaults were leading to capital withdrawal and capital flight from stock markets and "risk assets". If there was no bailouts, the capital flight would have eventually hit the US bond market because the continued defaults would have flushed out the tax base that backs the debt. Once the capital flight hits the US bond market, it will bump up inflation as dollars start flooding the forex markets. This will bump up dollar velocity within the US and abroad. More defaults lead to more capital flight which leads to more inflation/devaluation which leads to more velocity. Eventually, the velocity causes a shortage of base money because there is way more transactions happening. This is when the Fed will have to decide if they want to step in and provide the base money that the velocity is demanding. I don't think this will be as big of an issue for the US in this case because the initial devaluation and forex flood will be so chaotic that there won't be an obvious point where the central bank can notice the shortage of base money and provide it like they did in Germany in the 20's.

The current central bank balance sheet expansion is preventing hyperinflation. For now.... But it is not the same animal as central bank balance sheet expansion that is providing base money because money velocity caused a shortage of it.

http://freegoldobserver.blogspot.ca/2011/10/forgotten-crisis-and-what-ev...

Thu, 02/19/2015 - 00:48 | 5802227 Usurious
Usurious's picture

 

thank you for your response........

were the German and Zimbabwe hyperinflations using debt/credit money or debt free money?

am I asking the wrong question?

when the US hyperinflates, will the trillion dollar bills be printed debt-free or debt based?

Thu, 02/19/2015 - 01:55 | 5802320 Spitzer
Spitzer's picture

debt/credit money and debt free money.. This is all semantics. All non sterilized central bank balance sheet expansion is debt free money.

Case in point was the Germany. First they printed Marks to buy forign currency to pay war reparations. (pre-currency crisis printing)This is similar to what the US is doing now. Printing dollars and standing ready to buy just enough of the Us govt debt back in order for forign creditors to remain confident.

Then through the exchange rate mechanism, this printing on the international markets came home to roost and devalued the hell out of the Mark. The devaluation through lost confidence , upticked local velocity to the point where it created a shortage of base money.

Just imagine you went to your local bank to, to withdraw all your money into cash. What if everyone at your bank did this at the same time ? There would be a shortage of base money at that bank would there not ? It would take some time for that bank to get the money that everyone wants.

Now imagine after you get all your money, prices are way higher because your local money was devalued on the international markets. So it takes double of your personal base money to fill your gas tank. Lets say you still had your job and you had big pay checks being deposited into your account every week. So you go to the bank to get more cash. But its not there. Do you really think the central bank is going to starve the commercial banks and starve you out  or do you think that the central bank will get on its computer and make your hard earned paycheck whole ? By providing the base money ?

Also the whole thing can play out with debit cards and digital money. If your currency is devalued on the intl markets and you pull out your debit card to fill your gas tank, it will simply not fill your tank. That paycheck money you had would get you a cup full. But as the hyperinflation takes hold, wages will rise nominally and employers will pass on the inflation through their payroll which will demand even more base money from the local bank which it will not have. But the central bank can easily get on its computer and provide the base money to the local bank.

Thu, 02/19/2015 - 03:44 | 5802420 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

Interesting, but the historical examples all happened where there were credible alternatives to the Reichsmark etc. Today there is no credible alternative (other than shiny stuff)

Thu, 02/19/2015 - 04:38 | 5802464 dojufitz
dojufitz's picture

Weimar Germany did not have the World's Reserve Currency......so all comparisons are silly.......

 

 

 

Thu, 02/19/2015 - 10:55 | 5803245 Spitzer
Spitzer's picture

You are clueless

Thu, 02/19/2015 - 08:59 | 5802831 Usurious
Usurious's picture

Spitzer, what you explain is inflationary indeed but I dont see how it is hyperinflationary unless we were to switch to debt-free money........we use credit as money and I dont see how credit will hyperinflate


Wed, 02/18/2015 - 23:46 | 5802052 wendigo
wendigo's picture

How many countries don't have a central bank? I would imagine very few. Therefore, all governments are in on the scam. Must be that the CBs and goverments feed each other. 

Wed, 02/18/2015 - 23:59 | 5802087 dexter_morgan
dexter_morgan's picture

exactly. these 'catastrophic' failures are going to get so bad and inflation so bad around the world that only one thing will be able to save us - a global currency, the wet dream of global socialists for well over 100 years. Doesn't it seem like many of these crashes are orchestrated? TO WHAT END?

All the disJointed CB's will be deemed the problem - and gee whiz, guess what we banksters have the solution - global gubermint and a global currency backed by nothing, created out of thin air and the ONLY LEGAL TENDER you can use.

 

Thu, 02/19/2015 - 06:10 | 5802545 shouldvekilledthem
shouldvekilledthem's picture

In some countries they went as far as merging the central bank and the regulator bodies.

It's pretty scary. 

Wed, 02/18/2015 - 23:48 | 5802056 A Lunatic
A Lunatic's picture

They never had control to begin with.......

Wed, 02/18/2015 - 23:53 | 5802073 Usurious
Usurious's picture

 

 

right........Banks are just a theft mechanism....shifting your labor from you to them.....fuck em all......

Thu, 02/19/2015 - 09:11 | 5802865 123dobryden
123dobryden's picture

Spermbank good!

Wed, 02/18/2015 - 23:48 | 5802059 Atomizer
Atomizer's picture

Era Of Shattered Illusions, couldn’t happen to a better group of shithead’s writing policy to implode on themselves. You fucked up in shifting Glass-Steagall Act of 1932.

Wed, 02/18/2015 - 23:55 | 5802080 VWAndy
VWAndy's picture

Its tough finding out ones knowin has been filtered by thier beliefs.

  Instead of having beliefs filtered by thier knowin.

Wed, 02/18/2015 - 23:58 | 5802090 Atomizer
Atomizer's picture

Poetic, yet true.

Thu, 02/19/2015 - 00:02 | 5802103 VWAndy
VWAndy's picture

Thanks.

Thu, 02/19/2015 - 02:51 | 5802364 zebrasquid
zebrasquid's picture

Seriously...you don't know how to spell 'their'?

Thu, 02/19/2015 - 03:22 | 5802393 VWAndy
VWAndy's picture

Actually i just dont give a shit about spelling. If you do. Just skip my posts, really.

Thu, 02/19/2015 - 13:16 | 5803981 detached.amusement
detached.amusement's picture

call me weird but I had to upvote both

Thu, 02/19/2015 - 13:55 | 5804145 VWAndy
VWAndy's picture

Fuck the tower of babble. Spelling and grammer are irrelavent. Lipstick on a pig. To me its all about content.

 A comment like that and the spelling is what is noticed? Now thats pathetic. Thanks for proving the point of the comment.

Fri, 02/20/2015 - 02:44 | 5806853 zebrasquid
zebrasquid's picture

Honestly I could not understand your point, given the weird and mangled language. Nor was I interested in divining the thoughts of someone so lazy or ill-formed.

Fri, 02/20/2015 - 11:48 | 5807972 VWAndy
VWAndy's picture

Yep I understand your point. Skipping my posts is prolly better for ya.

Wed, 02/18/2015 - 23:57 | 5802086 pocomotion
pocomotion's picture

This is all well planned.  We are the ones destined to fail.  A new world order is coming to us whether we like it or not. 

Thu, 02/19/2015 - 00:02 | 5802109 Atomizer
Atomizer's picture

Sorry, it's dead on arrival (DOA). Stop living in fear. IMHO.

Thu, 02/19/2015 - 01:56 | 5802319 walküre
walküre's picture

It's not coming, it's already here. We are in the thick of the NWO and what we're witnessing are the birthing pains. The CBs are colluding and that alone is an achievement of the NWO architects. The people won't do anything against it. Few cases of civil unrest here or there but nothing that would seriously challenge the establishment.

Big on the radar is Monsanto's push into the European breadbasket so that Europeans can enjoy a side of Roundup with their daily bread.

The agenda is to cause and spread diseases among the wealthy populations that require a functioning and debt funded "health" care system. "Health" care budgets in Europe and North America are already the juiciest budgets. At the negotiating table sits Big Pharma across from Big Agri.

Thu, 02/19/2015 - 00:02 | 5802104 Yen Cross
Yen Cross's picture

 When are the banksters going to realize that the U.S. isn't going to, nor has decoupled from the the rest of the world? They need to come to realization that the U.S.can't even carry it's own water, and the $usd isn't going to continue to strengthen.

 Look at the huge selloff in T-10's this month(higher yields) and the $usd has traded sideways to down . The ponzi is moving to Europe to frontrun the ECB buying spree.

 Look at how the usd/jpy trade has lost it's correlation with US equity markets and higher yields. The S.S Ponzitanic has sailed to Frankfurt.

Thu, 02/19/2015 - 00:03 | 5802112 dexter_morgan
dexter_morgan's picture

solved by the ZWO global currency.

Thu, 02/19/2015 - 00:05 | 5802118 Atomizer
Atomizer's picture

Read post above. the light switch is turned on. Winks.

Hope you're doing well. Take care my friend.

Thu, 02/19/2015 - 03:40 | 5802417 Lolitsa
Lolitsa's picture

"...I can't believe they're buying this shit."

Thu, 02/19/2015 - 10:04 | 5803020 venturen
venturen's picture

They don't CARE. Get your millions get out and put it in a tax free haven with multi lawyers making unreachable by the custom laws you had put in place

Thu, 02/19/2015 - 11:12 | 5803326 ChacoFunFact
ChacoFunFact's picture

if only we had one world government, one world IRS, and one world bank all would be well.  we'd be so much better off, safer, protected from terre'st, etc.  where is bhillary when you need her?

/sarc off

Thu, 02/19/2015 - 00:05 | 5802117 DOGGONE
Thu, 02/19/2015 - 00:08 | 5802125 AntiFabian
AntiFabian's picture

So true!

Thu, 02/19/2015 - 00:18 | 5802154 R19
R19's picture

Going long wheel barrow manufacturers.

Thu, 02/19/2015 - 00:24 | 5802179 Ban KKiller
Ban KKiller's picture

Send me one hundred dollars and I will pay you back ninety dollars in 10 years. 

Two plus two is five. I love big brother. 

Thu, 02/19/2015 - 01:14 | 5802261 Atomizer
Atomizer's picture

This reminds me of IRS. How do you want to receive your paycheck. 0-5. We encourage you to take out the least amount so we a can play with your money in the stock market.

I'm blind and should cross the American border for my IRS tax rebate shortly. Boy, this W-4 form feels tricky, do you have a braille version? Just fucking around. All we can do is laugh at the stupidity of the Obama administration.

http://www.irs.gov/pub/irs-pdf/fw4.pdf

Thu, 02/19/2015 - 00:28 | 5802190 Atomizer
Atomizer's picture

Oh shit, you have me in tears laughing. Thank you Ban KKiller. You made my day

Thu, 02/19/2015 - 00:39 | 5802211 q99x2
q99x2's picture

Looks like a global FRAUD chart. The reddish ones are not going to pay their debts back. Wait till one of them backs their currency by gold or crypto. It might even be one of the reddish ones.

Thu, 02/19/2015 - 01:17 | 5802269 tok1
tok1's picture

 

one thing missed is the real issue is contiuned deficits mainly in US/Japan and souther Europe, ie the population wants/exepcts a certain level of service from the Govt, that the Govt just cant afford out of tax take. Thus large deficits continue and QE to cover up the deficit. So it is the peoples inability to accept that 1) the govt cant continue to provide current level of social support. Also the high level of corruption (huge payments to govt officials / special interests ).. that make any real balanced budget impossible.. 

So yes people are looking for escape goat (as you keep putting here NWO ect).. but actually its just the inability of tax income to meet the populations expectations,  and the nondesire of the population to move into a sustainable situation.

See Greece they just voted for a Govt that promises to increase Govt services/employment when they have collapsed from excessive govt spending,  ie why didnt they vote for a free market / low tax / low regulation govt.. (because they want the safe hand of the Govt to support them).

I agree though its gone to far now and the current Govt/special interest have taken so much out of the economy (i control so much) that it wil be tough to go the other way..

CNBC had an interview saying current Japanese 10y rates at 0.4% look dangeriously high. When anything but a negative / record low rates is seen as trouble.. you know the Govt is bankrupt already..

 

We all know the solution.

1) forced balanced budget (no more borrowing by govt)

2) prob debt needs to QE'ed away to get it to real 30-70% of GDP in one large adjustment (and let the currencies go where they go).

then rates can be allowed to rise proper returns that can support pensions ect,, (market rates) and the economy can go back to lots of small fragile business that creates a large stable system, instead of a few large stable business (TBTF banks / GM ecT)  that the govt never lets fail...

The are saving the big companies at the expense of the small/ future companies..the opportunity comes when large companies go under and small ones get their market share and equipment cheaply..

the joke is the FED/Govt keeps pretending the low rates are for households, when its clear its to support the Govt spending and large corporates that have issued huge amount of debt and like the Govt will go under if rates rise.. The small player will benifit when these large leveraged players are gone..

Thu, 02/19/2015 - 01:25 | 5802289 Atomizer
Atomizer's picture

 

 

 

A Fukushima carnival isn't complete without at least a few good shows. Feature your community talent and charge tickets for admission.

Some ideas:

  • Magic Show

  • Puppet Show

  • Talent Contest

  • Skateboard Freestyle Demo

  • Dance Performances

  • Short Play

  • Choral Groups

  • Local Bands

  • Art Show

 

Thu, 02/19/2015 - 07:52 | 5802643 overmedicatedun...
overmedicatedundersexed's picture

tok1, nice summation, but it seems some how off, big companies going BK?, balanced budget?-

perhaps you missed the 2008 paulson stick up-the mega banks bailout?

I think this might be something you missed: corruption ..there will be no justice for bk co's if corrupt legal systems and governments have the control of law.

Thu, 02/19/2015 - 09:02 | 5802839 Ancientkarma
Ancientkarma's picture

I vote many ups for your thoughts.please note ,though,reality has no place in the subject.

Thu, 02/19/2015 - 01:18 | 5802277 yogibear
yogibear's picture

Bernanke's pipe-dream is failing. 

No wonder that bastard left. When his PhD messed up. He messed up big.

Thu, 02/19/2015 - 01:55 | 5802316 Atomizer
Thu, 02/19/2015 - 02:31 | 5802347 VWAndy
VWAndy's picture

Now thats funny stuff.

 

Thu, 02/19/2015 - 01:34 | 5802302 Alvin Fernald
Alvin Fernald's picture

This map lays out the players of ww3.

Thu, 02/19/2015 - 01:42 | 5802312 robnume
robnume's picture

Robust job growth and economic output in the USSA? Is this guy fuckin' kidding? Get the Fuck Off of My Planet, you clueless moron!

Thu, 02/19/2015 - 03:37 | 5802410 Lolitsa
Lolitsa's picture

I believe there is a bot in all major news vendors' software that puts that phrase into any article related to economics. They all use the same terminology. Bots don't care what that truth is. They get paid on time and that's all they know.

Thu, 02/19/2015 - 03:45 | 5802421 22winmag
22winmag's picture

Flying on autopilot with no gas and mountains ahead isn't loss of control, it's called Controlled Flight Into Terrain.

 

1 in 4 Air Force crashes are of this variety by the way.

Thu, 02/19/2015 - 04:21 | 5802443 Batman11
Batman11's picture

The bankers have been busy selling their only product, loans/debt, around the world.

The world is now saturated in debt and with bankers running the show their can be no debt forgiveness or defaults as this means losses for them.

The only solution for this debt tsunami is cheap and freshly printed money, so they can keep collecting the repayments and interest on all this debt.

Unfortunately, those with this debt can no longer afford all those products and services produced by the real economy.

Saving the bankers and their one product line, loans/debt, kills the real global economy.

 

 

 

Thu, 02/19/2015 - 04:22 | 5802444 Batman11
Batman11's picture

Banking is just taking money from the future to spend today.

The loan can be spent today, the repayments occur in the future.

With a world drowning in debt, the future is here.

 

Thu, 02/19/2015 - 04:28 | 5802448 bid the soldier...
bid the soldiers shoot's picture

The Central Banks are still in control.  You will be able to tell when they have lost control when the stock markets are either closed or limit down every day.

Presently the CBs are printing enough to push the markets to new highs and the 1% know if they start selling their stock, the domino will eventually fall on their head.

Also bllions of dollars of CDs are maturing every week. CDs which were paying 3 or 4%. The banks will renew them at .55%.  Much of that money will go into the stock market.

So the Central Banks really haven't lost control of anything.  

Not yet, at least. 

Thu, 02/19/2015 - 04:55 | 5802476 kurzdump
kurzdump's picture

If interest rates turn negative, corporations will be 'profitable' even if they report losses (loss < charge for cash / bonus for debt). Economic stability will no longer be generated by economic growth, it will be 'regulated' by the rate of dispossession. A kind of dispossession executed by the (central) banks instead of the state.

To make this work, the use of cash (for saving) has to be forbidden.

The question is, how can 'they' constantly prop up the markets to avoid a stock market crash?

Thu, 02/19/2015 - 05:46 | 5802527 devo
devo's picture

The question is, how can 'they' constantly prop up the markets to avoid a stock market crash?

Forcing people to buy, privatizing SS, Fed buying stock, etc. Many ways. Better question is what happens when everyone who wants to buy or is being forced to buy has bought.

Thu, 02/19/2015 - 05:50 | 5802523 devo
devo's picture

If you look at a historical stock chart it's terrifying. The retrace coming is ~4k on the Dow. I hope it rises another year or so; still planning a timely short. I think the mania after QE4 will be the mania and official short signal. Come on, Janet, QE4 time.

Thu, 02/19/2015 - 06:10 | 5802547 smacker
smacker's picture

Herein lies a dichotomy: there are two very different views on the current state of global economies.

The Telegraph article is predicated on the back of "official" economic, growth and jobs data. This view is dutifully reported by MSM to the point where politicians & central bankers probably believe their own lies and disinformation. If that data were accurate - if only largely accurate - the progressive normalisation of interest rates and tightening of monetary policy could be just fine. If it's wrong, it could greate a divergence resulting in a new global liquidity crises.

By contrast to the Telegraph, we are fed a daily diet by ZH and others that show quite clearly that nothing is getting back to normal. It's actually getting worse. One look at the Baltic Dry Index is evidence that global trade is sliding. And the banks are in no better shape today that 2008.

Are we slowly getting back to normal or are things getting worse??

Who do I believe? Well, it's ZH of course because the facts don't lie. This is why I believe there will not be any meaningful rise in interest rates this year as the Fed and others peddle. And I don't even think that the Fed believes it because, despite their spin, reality will prevail.

In my view, the world is sliding into a worsening global depression and is on the road to war. Putin is being demonised as "the new Hitler". See the 1930s.

 

Thu, 02/19/2015 - 08:48 | 5802787 Ancientkarma
Ancientkarma's picture

Putin is only one of the new hitlers being proposed.if only Putin then too many eggs in one basket.so we have Assad, boko haram, Isis,and may others.when we only had Osama things were much simpler..but war is the answer.

Thu, 02/19/2015 - 11:31 | 5803455 smacker
smacker's picture

And the irony - even if those other groups were new Hitlers, which they are not really - from a Western POV  it is our own governments who are turning to fascism.

Thu, 02/19/2015 - 06:38 | 5802564 SnatchnGrab
SnatchnGrab's picture

"The reports of my death have been greatly exaggerated."

Thu, 02/19/2015 - 07:55 | 5802652 CTG_Sweden
CTG_Sweden's picture

 

Sweden is pursuing a dangerous strategy. The intention is to counterbalance the expected additional, excessive supply of labour with more favourable exchange rates in order to make the labour market look more healthy than it really is. The stock market, at least companies with a heavy exposure to the export markets, will also benefit from that. But those have very little stock but lots of cash will suffer. Senior citizens, who usually have high cash to total assets ratio, will lose money. The deliberately depreciated krona can be regarded as a tax on households with a high cash to total assets ratio. They are paying the price. The upper-middle class and the lower-upper class will get the hardest hit. Those who are rich enough can ask their bank to put together a portfolio based on many different currencies.

 

Sweden also intends to invest heavily in housing for a rapidly growing population. That means more borrowing of money abroad. If the Swedish krona depreciates that will mean more expensive loans. That could prove to be dangerous in the future. If they intend to keep the unemployment figures down by depreciating the krona and at the same time increase borrowing abroad the result will be that it will be more expensive to pay down the foreign debt. Also keep in mind that more people in Sweden does not automatically increase more exports. But the consumption of imported goods will increase which in turn will affect the trade balance. And a smaller trade surplus, or perhaps even a trade deficit, will put downward pressure on the Swedish krona. I guess that somewhere will the depreciation of the Swedish krona stop since people will buy less of exported goods that get more expensive. But keep in mind that you can´t grow oranges for instance in Sweden and that consumer electronics are no longer made in Sweden. So there seems to be a risk for too expensive foreign loans for Sweden in the future. Remember also that Sweden has the 2nd highest total debt in Europe. Only the UK has a higher total debt (due to its large banking sector). The Swedish public the debt is still low, although it is on the rise. But that is the only advantage Sweden still has.

 

Thu, 02/19/2015 - 08:39 | 5802754 localizer
localizer's picture

Umberto Calvini: [In explaining the "true" nature of banking in the world] The IBBC is a bank. Their objective isn't to control the conflict, it's to control the debt that the conflict produces. You see, the real value of a conflict, the true value, is in the debt that it creates. You control the debt, you control everything. You find this upsetting, yes? But this is the very essence of the banking industry, to make us all, whether we be nations or individuals, slaves to debt.

Excellent quote from an othewrise average movie.

 

Thu, 02/19/2015 - 08:55 | 5802814 eddiebe
eddiebe's picture

The headline is total bullshit. The central banks have in fact complete control of the world, otherwise they couldn't charge you interest on the money you lend them. With this type of fucked up thinking ZH plays right into their hands.

Thu, 02/19/2015 - 09:24 | 5802908 Accounting101
Accounting101's picture

Yeah, I have to agree with you. The central banks never do random. There is always an agenda, or neoliberal philosophy. I believe the 1930's analogy is poor because if history was to have repeated (rhymed) itself, Citi, JP Morgan, Goldman Sachs, HSBC, Deutche Bank, etc., would all be dead now.

Thu, 02/19/2015 - 09:15 | 5802877 Falconsixone
Falconsixone's picture

What's the blue again?

Thu, 02/19/2015 - 09:16 | 5802880 Youri Carma
Youri Carma's picture

Did the Fed Just Enter the Currency Wars? http://www.bloomberg.com/news/articles/2015-02-19/did-fed-just-enter-the...

Here's a $9 Trillion Question - Jim Rickards: Currency Wars http://www.bloomberg.com/news/articles/2015-02-13/-9-trillion-question-i...

Thu, 02/19/2015 - 09:23 | 5802903 Martian Moon
Martian Moon's picture

The currencies being discussed in these charts are not money

Currency / money - two very different things

The fraud is so deep that most people cannot make a distinction between the two

Thu, 02/19/2015 - 10:00 | 5803009 fremannx
fremannx's picture

Central Banks never had control, but that's another subject. However, they have contributed to the biggest debt bubble in history. That bubble has sprung leaks in the past few years, but it is now on the verge of exploding catastrophically... with or without the aid of the Fed.

 

http://www.globaldeflationnews.com/anatomy-of-a-bubble-how-the-federal-r...

Thu, 02/19/2015 - 10:02 | 5803016 Farmer Joe in B...
Farmer Joe in Brooklyn's picture

Peter Schiff has been calling THIS for months: 

The US will NOT raise rates (we are already seeing the beginning dovish language of them backing down). AND the US will launch QE4 sometime in the near future (whenever they want to unleash the Kraken).

The further the dollar runs up, the more room for demolition of the USD the fed has to crush with QE4. 

DOW 25k just around the corner.  When this grand experiment fails, it is going to be epic.  Keep laying out long-dated puts as mkt runs and vol dampens.  We don't know when she'll blow, but we all know she will.

FYI, you can get a lot more "bang for the buck" on XLF puts (over SPY, HYG, or many of the other common indices).  Not sure if it's the lower vol of the index or what, but they are way cheaper way to play a gutting of the markets.  If you look at where the XLF was at the bottom of the 2008-2009 crisis compared to HYG, SPY, etc... they offer by far the best downside delta/gamma, imo. 

Thu, 02/19/2015 - 10:07 | 5803034 venturen
venturen's picture

sorry banks are in full control....and with full access to currency  printers...they will print till you are backing up your SUV to make a withdrawl for bread and milk. It doesn't change....1930, 2020....they have control and unless someone takes it....they are going with what they know. MONEY PRINTING

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