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The Final And Ultimate Crisis Will Be a Crisis of Faith
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.
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I dont think that ...the primary driver of stocks is no longer fundamentals, but Central Bank intervention... I think that primary driver of stocks is RISK PREMIUM ... when you see that dividen yield coming from equity is 200 or 300 basis point better than 10y governative bond yield , you have to be sure there wont be another financial crisis ...
Hallelujah! There is hope for the Evangelical and Scientology brotherhoods.
Once the faith in God $ dies the people will fly to other temples of similar sleights of mind.
What won't people do with that toxic blend of psychology of Mad Men brand, showmanship of Tom Cruise style and misdirection that even Von Mises would not consider a false flag as it would be glittering in Midasian fervour.
"I want my gold back !"-- Can't imagine a better phrase to sum up the distaste and ire of destitute citizenry for the Greenback's age.
The only question that comes to mind : Will they burn the WS bean Stawk?
Who has more Faith, the Gnostic or the Catholic ?
Immanentize the Eschaton.
More Ammo, less HOPIUM....
The Great Bowel in the Sky has been constipated for a very long time. When this thing moves it will be a legendary shitstorm.
John Hiatt & The Guilty Dogs - Perfectly Good Guitar 1993 Austin
https://www.youtube.com/watch?v=pzeoLe6nSrU
Ik heb de @RaadvanState al in 2007 duidelijk gemaakt dat 'mijn rijgedrag' het gevolg was dat (vijandelijke) inlichtingendiensten mij aan het achtervolgen waren. Hier zijn camera-beelden van die nog steeds niet zijn vrijgegeven.
http://www.gelderlander.nl/regio/maasland/wereldformule-geen-excuus-voor...
Dat netwerk @SuperWil schrijft dat de @RaadvanState de 'wiskundige definitie van de absolute waarheid' niet willen (h)erkennen, om zo "het systeem 'Liegen om te Leven' zo lang mogelijk in de lucht te houden" in in mijn geweten een waarheid als een koe.
http://www.mintpressnews.com/chomsky-takes-on-mainstream-media-us-warmon...
Of MarietjeD66 echt "d'n Arend van hotel GradjA" in de "Parodie op de Waarheid" mag spelen is nog het geheim van @SuperWil.
http://www.zerohedge.com/news/2015-05-01/jp-morgan-cornering-silver-bull...
Hi Asherah,
Indien ik jouw meisjes opleid in de 'Logica van de 1', wordt hun marktwaarde het tienvoudige van wat ze nu verdienen.
http://www.gelderlander.nl/regio/maasland/wereldformule-geen-excuus-voor...
Wil je meer weten dan wil ik jouw wel eerst opleiden tot een @CP_sME.
Voor vragen over mijn persoontje moet je bij mijn vrienden zijn.
https://www.facebook.com/grad.cuypers
Liefs https://twitter.com/GuusjA
In der BND-Affäre erhöht die Opposition den Druck auf die Bundesregierung. Nach dem Willen der Grünen soll auch Kanzlerin Merkel über die Zusammenarbeit zwischen Bundesnachrichtendienst und NSA aussagen. Auch in der SPD will man die Kanzlerin befragen. Die CDU sieht jedoch keinen Grund zur Eile.
http://www.faz.net/aktuell/politik/inland/bnd-affaere-cdu-bremst-schnell...
De CDU staat in nauw contact met netwerk Juncker en nu de NAVO weer een 'hotline heeft met Poutin' kan de 'gecontroleerde paradigma-wisseling' naar het systeem Leven en Laten Leven' de volgende fase ingaan. De Duitse minister van Buitenlandse Zaken Frank-Walter Steinmeier heeft de eer gekregen dat Klaveren- en SchoppenTeam weer met elkaar waarheiddelen en daarmee is Ruiten weer troef. Ofwel aan Merkel de eer om te achterhalen wat de Griekse minister van financiën Gianis Varoufakis aan diverse anarchisten heeft verteld.
http://www.trouw.nl/tr/nl/4496/Buitenland/article/detail/3995878/2015/05...
Dinsdag werd hij in een restaurant in de anarchistenwijk Exarchia, waar hij zat te tafelen met zijn vrouw, belaagd door een groep van zo'n dertig tot veertig woedende jongeren in capuchontrui. Zij wilden weten waarom het systeem 'Leven en Laten Leven' met als grondwetten het 'recht op waarheid', 'recht op uniciteit' en het 'recht op vrijheid' nog steeds niet in de publiciteit is gekomen.
http://nos.nl/artikel/2033737-we-mogen-de-verschrikkingen-van-dachau-noo...
Bondskanselier Merkel was bij een ceremonie ter nagedachtenis aan de bevrijding van kamp Dachau, 70 jaar geleden, en dacht aan het ArbeitMachtFrei-beweging van weleer. Nu is die beweging verworden tot een ambtenaren apparaat die niet willen dat de cultuur van waarheiddelen wordt ingevoerd.
Ry Cooder - Down In Hollywood 1/2
https://www.youtube.com/watch?v=l_kbGttueAY
it is done.
what next?
Si! When Confidence in The FED is all gone the $US Dollar "collapses"!
All fiat currencies are Con jobs!
The final crisis will be loss of faith in the dollar
The loss of faith in the dollar_will_be_the_end_of_Babylon_the_Great.
The only real difference between a $20 and $100is the 'faith' that the FED will somehow give you five times as much stuff for the $100. Neither bill has true value.