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The Financial System Broke Last Year… We've Just Yet to Feel It
Global Central banks’ reputations are on borrowed time.
ALL of the so called, “economic recovery” that began in 2009 has been based on the Central Banks’ abilities to rein in the collapse.
The first round of interventions (2007-early 2009) was performed in the name of saving the system. The second round (2010-2012) was done because it was generally believed that the first round hadn’t completed the task of getting the world back to recovery.
However, from 2012 onward, everything changed. At that point the Central Banks went “all in” on the Keynesian lunacy that they’d been employing since 2008. We no longer had QE plans with definitive deadlines. Instead phrases like “open-ended” and doing “whatever it takes” began to emanate from Central Bankers’ mouths.
However, the insanity was in fact greater than this. It is one thing to bluff your way through the weakest recovery in 80+ years with empty promises; but it’s another thing entirely to roll the dice on your entire country’s solvency just to see what happens.
In 2013, the Bank of Japan launched a single QE program equal to 25% of Japan’s GDP. This was unheard of in the history of the world. Never before had a country spent so much money relative to its size so rapidly… and with so little results: a few quarters of increased economic growth while household spending collapsed and misery rose alongside inflation.
This was the beginning of the end. Japan nearly broke its bond market launching this program (the circuit breakers tripped multiple times in that first week). However it wasn’t until late 2014 that things truly became completely and utterly broken.
We are, of course, referring to the Bank of Japan’s decision to increase its already far too big QE program, not because doing so would benefit the country, but because it would bring economists’ forecast inline with governor Kuroda’s intended inflation numbers.
This was the “Rubicon” moment: the instant at which Central Banks gave up pretending that their actions or policies were aimed at anything resembling public good or stability. It was now about forcing reality to match Central Bankers’ theories and forecasts. If reality didn’t react as intended, it wasn’t because the theories were misguided… it was because Central Bankers simply hadn’t left the paperweight on the “print” button long enough.
At this point the current financial system was irrevocably broken. We simply had yet to feel it.
That is, until, January of 2014, when the Swiss National Bank lost control, breaking a promise, and a currency peg, losing an amount of money equal to somewhere between 10% and 15% of Swiss GDP in a single day, and showing, once and for all, that there are problems so big that even the ability to print money can’t fix them.
Please let this sink in: a Central bank lost control last week. This will not be a one-off event. With the Fed and other Central banks now leveraged well above 50-to-1, even those entities that were backstopping an insolvent financial system are themselves insolvent.
The Big Crisis, the one in which entire countries go bust, has begun. It will not unfold in a matter of weeks; these sorts of things take months to complete. But it has begun.
If you’ve yet to take action to prepare for the second round of the financial crisis, 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.
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Best Regards
Phoenix Capital Research
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Central Banks buying bank assets is not Keynesianism. Keynesianism is governments increasing their deficit spending significantly to stimulate the economy. If you don't like what the Central Banks are/were doing, find a suitable word for what they are/were doing. Just because Keynesianism happens to be something you don't like, don't call everything you don't like Keynesianism.
I'd put some dough into more fruit trees but they're sprayin' em all stone dead with my tax dough! Maybe I should just buy flour dough. That's fungible ain't it?
Yes - all the trees are dying - The nano particuales enter the cells and destroy from within the latest research also shows that it is happening in us as well - Read here - http://beforeitsnews.com/alternative/2015/05/nanoparticles-in-food-and-w...
This policy for the .001% has forced me to get creative in the fruit tree and bush growing rhelm. This year I cloned grapes, cherry bushes, apple, and elderberry. I hope they don't turn into zombies.
http://www.gardenguides.com/93002-clone-fruit-trees.html
http://www.amazon.com/Dyna-Gro-Rooting-Concentrate-Kln-008-0-009-0-011-0...
pheonix iimited views ignore 7 billion people who need to eat. think there is a god of math do you?
They're NOT rolling the dice. They know exactly what they're doing; but it's not for you. It's for a group of "Snakes In Suits" that are collectively called "The Great Red Dragon," who's goal is "to own the earth in fee-simple." In ancient times, a dragon was a serpent, a very large snake like a python, with all the characterics of a snake. The Great Red Dragon book was published in 1889, warning the people of the U.S. against foreign money power. Back then the "drift of gold" was to the U.S., which is why England's power declined, but not the power of the City of London Corportion. They just funded a more powerful patsy (U.S.). Now that the "drift of gold" is to China, guess who's going to suffer, and who's going to be the new front (patsy) for the financial sociopaths. Guess who's got 30 million males who will soon be of marrying age, but will not find a mate in China. They have a great incentive to join the military and travel to other parts of the world. Scary thought.
=== Economic activity is not reflecting the performance of netwerk WitteGejT ===
http://www.mintpressnews.com/shooting-rampage-fort-hood-texas/188117/#co...
Het gerucht gaat dat HollywoodHillarY het personeel van hotel GradjA heeft ingehuurd om haar bij te staan in de 3e SpinozaGolf.
http://www.nrc.nl/nieuws/2015/05/05/hillary-clinton-bereid-om-te-getuige...
Natuurlijk had de Amerikaanse regering de veiligheidsrisico’s voor diplomaten van het Amerikaanse consulaat in Libië onderschat, omdat ze niet op de hoogte waren dat de 'wiskundig definitie van de absolute waarheid' door netwerk @SuperWil wordt gebruikt om het systeem 'Liegen om te Leven' ten val te brengen.
http://www.zerohedge.com/news/2015-05-03/financial-%E2%80%9Cseismograph%...
Wanneer je de tekst: "Joden doden is een religieuze daad die ons dichter bij Allah brengt" toetst aan de 'Logica van de 1' (Wat eigenlijk de taak van de Rechtelijke Macht zou moeten zijn) dan kom je tot de volgende conclusie. Natuurlijk is het 'recht op vrijheid' van iedere individu om te roepen of schrijven wat die wil. Het is immers aan zijn karma (de '1' - geweten, ofwel de TijdRuimte waarin de uiting wordt gedaan) wat die met zijn uiting doet.
http://www.trouw.nl/tr/nl/4496/Buitenland/article/detail/4000628/2015/05...
In de optiek van @GuusjA had de rechter moeten toetsen aan het 'recht op waarheid' en niet het 'recht van uniciteit' van de 'metro van New York' moeten overtreden, omdat ze de uiting niet op hun trams door New York wilden verspreiden. Uiteraard is de bewering wel juist dat 'het doden van een geweten een psychosegelovige daad is, wanneer je denkt dat je dan dichter bij de ABSOLUTE WAARHEID komt'.
Omdat 'de overwinnaar altijd de geschiedenis schrijft' is de Senaat in de VS al ingelicht dat Joseph F. Dunford de rol van RuitenKoning gaat spelen.
http://www.trouw.nl/tr/nl/4496/Buitenland/article/detail/4000650/2015/05...
=== Death by design ===
Netwerk @SuperWil zegt nu al tegen Amerika dat de 3e SpinozaGolf niet tegen te houden is.
http://www.politico.com/magazine/story/2015/05/urban-mothers-around-the-...
Secretaris-generaal Ban Ki-moon van de VN zei in een officiële verklaring dat 'zulke daden niets te maken hebben met religie of overtuigingen', maar alles met het feit dat de VN nog steeds niet het systeem 'Leven en Laten Leven' willen invoeren.
http://nos.nl/artikel/2034037-europese-economie-groeit-maar-niet-in-grie...
Volgende week is er opnieuw een bijeenkomst van de Eurogroep en dan kan Griekenland de knuppel in de hoenderhok gooien door ...
https://www.youtube.com/watch?v=5rdGDL5Vw8E
... de fundamenten van de 3e SpinozaGolf in de publiciteit te gooien.
De Griekse vicepremier Yannis Dragasakis heeft vandaag de Europese Centrale Bank (ECB) laten weten dat de ministers van Financiën van de eurozone nog niet zijn ingewijd in het GELD=ZUURSTOF-paradigma. In het script van KlaverenTeam staat dat de ECB de Griekse overheid alleen meer financiële ademruimte mag geven, indien ze zich blijven onderwerpen aan het SCHULD=H00P-principe.
Ook is er geen vooruitgang in de onderhandelingen tussen Stichting Met Elkaar en netwerk Juncker om legaal de 'logica van de 1' te gebruiken om de conflicten in netwerk WitteGejT (met betrekking tot de psychosegelovige contacten) vreedzaam op te lossen.
Das ist gut scheissa.
Huh? Did I miss some news or are these dates wrong?
"That is, until, January of 2014, when the Swiss National Bank lost control, breaking a promise, and a....."
"Please let this sink in: a Central bank lost control last week."
WTF?
WTF indeed....
swiss, january 2014, just last week.
and with BoJ QE, "misery rose alongside inflation.". he must be refferinng to the "lost decade", deflation all the way.
i guess this must me some alternative reality short-story.
I read this already Graham...................IN JANUARY !!!!
The Central Banks screwed up when they deinstitutionalized Glass-Steagall. The first few years of excessive leverage should have made them collectively realize that if they took leverage to a logical conclusion it would eventually blow up in their collective faces. Excessiveness on the part of Type "A" personalities is such that they cannot be stopped until they literally screw up so bad that their excessiveness becomes obvious to all. This is exactly what is occuring right now in terms of the BIG Box Ponzi implosion that is wiping out all the old BIG Box stores that built their phoney markets off of the false CB belief that housing prices would never go down, ever. Once the first sub-prime meltdown occured the CB should have realized what leverage was doing to markets and companies, but the CB is run by the dumbest motherfuckers God ever manufactured. Why they cannot understand basic mathematics is beyond my capacity to think. Frankly, I tend to believe that the CBers know that this is going to blow apart, but they see no gain in warning the masses so they just keep on with the charade hoping some miracle will manifest. As one that knows God well I can assure all that God is not going to be able to help out on this one and the World will decend into abject poverty and hell on Earth for all.
Dumb? They know it will result in a pennys on the dollar vulture fest.
We are the ones who are dumb suckers. They have no intention of fixing anything, IT IS FIXED.
From the academy award winning movie, "The Sting"
https://www.youtube.com/watch?v=VYjyFQS3DWM
“Solutions” that amplify, to a rentier’s profit, the very “problem” they claim to solve."
http://www.nakedcapitalism.com/2015/05/note-elite-playbook-self-licking-...
"This approach has the merit of including the feedback loop but making it positive (“amplify”), connoting false justification (via the irony quotes shrouding solutions, and problems, but including a metric — profit![3] — that’s far more appropriate than weapons counts or jobs, which are mere proxies for profit. In addition, I say “rentier”[4] since, again by definition, a SLICC is about business and not industry; hence the false justifications. A business model that sold bottled water to people after polluting their wells would be the mother of all SLICCs."
Slick, huh?
I always give PC posts 5 stars, not sure why.
When this motherfucking Phoenix Capital refrains from posting a TEOTWAWKI for at least 3 days, then and only then will the obviously bubble-tastic "market" crash.
I harbor an immense rage toward the Hebrewtocracy and other fucktards who have robbed me out of the standard of living I thought I'd have at this stage in life. They have caused my dear wife to part from me due to the stress a few years back. I persevered. I persevere. I still harbor rage and it will be alleviated one way or another.
"QE" is like stealing the windows and doors of a home after you have robbed it of all of its valuables.
Liberty is a demand. Tyranny is submission.
http://www.bizjournals.com/houston/news/2015/05/04/as-oil-prices-slide-h...
The Federal Reserve Corporation's only obligation is to make money for their anonymous foreign shareholders.
As the Federal Reserve Corporation produces no actual work output, they do that simply by taking it from the infinite well of ignorant Americans.
U mean January 2015 the Swiss peg came off... Right?!!!
"Please let this sink in: a Central bank lost control last week"
Swissy was January, the unnamed central bank was just last week, but evidently ZH somehow missed it.......................
Could it be that the article was written in January 2015 but posted here only now?