This page has been archived and commenting is disabled.
This Is Central Planning: A "World Of Activist Central Banks" Who "Manage Price Levels In Markets"
Remember when news, fundamentals, ungoalseeked "data", and even math, mattered? Since it is becoming increasingly hazy, here is Bloomberg's Richard Breslow waxing nostalgic over the good old days.
Cui Bono, by Richard Breslow
The bad news is that we are investing in a world where Graham and Dodd’s “Security Analysis” has become a quaint relic of simpler times, when the nuts and bolts of a company’s fundamental were meant to motivate how analysts viewed its prospects. Now we have QE and buybacks.
We live in a world where good Keynesians Tobin and Brainard’s work on valuation (which led to Tobin’s q test) was meant to remind investors that markets needed to be grounded in some form of reality. (Interestingly, as an aside, William Brainard was strongly in favor of Janet Yellen being appointed to the Fed Chair). Today we read that equities are at all-time highs because weak economic numbers may keep the Fed on hold longer. The good news is that investing is a lot easier if you have central banks on your side
Central bankers admit they follow the markets, as they should. What has evolved in this world of activist central banks as proxy sovereign wealth funds are policy makers who watch, care and try to manage price levels in markets, rather than managing liquidity and continuous pricing.
Front-running mutual funds used to be something of a skill and art. Front-running central banks merely requires not losing sight of the bigger picture and managing your positions. Oddly enough, skill at the latter is what old-fashioned traders, who are in the process of being killed off by boxes, were actually most prized for.
In today’s world, negative rates are argued to be realistic. Markets that go up 100% in a year are prescient. Markets that go down are described as killing wealth, not, perhaps, normalizing in the face of better numbers. Economists extol the value of the “wealth effect” on economic prospects. Translated that means central banks should be in the business of helping markets along. We are all meant to be on the same side here, right?
European bonds have sold off in response to better numbers. Cruising speed. Cue the ECB’s Coeure to announce bigger buying of bonds now. He assured us this had nothing to do with the recent back-up in yield but rather prudent liquidity management. Europe does treasure the summer holidays after all.
And it ain’t only developed markets. After a nasty sell-off last week, Egypt’s EGX30 index is up over 9% this week as the government “postponed” the widely-praised capital gains tax on equities. For those gregarious enough to trade this market, watch the key 9000 level which held as resistance today
This morning, everything German responded favorably to the QE-steroid announcement. Later in the session, the ZEW was released and was horrid on its face. Immediate reaction? Profit-taking. Gives you a good example of what is driving things.
»
- 13081 reads
- Printer-friendly version
- Send to friend
- advertisements -
What? No hat tip to Doc Engali who's been saying for years now that the "market" is a policy tool? (Which he's right about, by the way)
They are central planning gold and silver today again, after a wopping three day rise in prices. Options expiration too.
This phase of activist central banks will end violently.
>In today’s world, negative rates are argued to be realistic.< Negative rates are criminal- it's called stealing- people should go to jail.
All kinds o tools for all kinds o fools.
Well NoDebt - the barrel of a gun can be a policy tool as well , y'know taken to its logical conclusion.
Babylon the Great shall fall! Again!We allow them to cheat, so why wouldn't they?
Because not everybody cheats...
Yet...
And to think that for years the West mocked the Communist regimes of the East for central planning.
Neo-Nazi putsch in Ukraine building up their military with U.S. taxpayer money = forward!
The buck stops here, and don't stop thinkin' about tomorrow!
Read my lips: hope + change = mission accomplished.
In a nutshell, I see far too many overcompensated useless fucking middlemen stuck between the actual producer and consumer in the real economy.
"Full faith and credit"
tick tock motherfuckers...
I smell desperation on the short side.. haha.
When the "end" comes, as it must, because you can never beat the physical law. There will be a witch hunt and politicians/economics/scum will rediscover the words "moral hazard."
If the "World Of Activist Central Banks" Who "Manage Price Levels In Markets" are the great rulers of the world.
They better prepare of A "World Of Activist Human Beings" Who want to "Burn Every Secret Society Down" and replace that secret order with people who care about human beings the common man and the planet and not about greed.
http://imgur.com/IxCGHbg
http://imgur.com/oEqrltv
http://imgur.com/07te2em
http://imgur.com/bBheG3I
http://imgur.com/Cf0KPtr
http://imgur.com/lK81rpf
http://imgur.com/VKffyDE
http://imgur.com/j37YFnY
http://imgur.com/gvXq1lr
just listened to a learned man discuss money and wealth
he said money was just a claim against wealth
and that now there are more claims ,ie. money
they there is wealth, to satisfy those claims ...
opppps..
fuckin' interesting says 8 Artois, i'm listening, can you quantify via par example mon ami?
Upon a ponderous proof reading, i realized you had more Stella than i did, commendable, despite the incoherent genious!
Just got home from the ballet! aka, Strip club
Just like any other club, except that that there is a stage often featuring fixed metal poles. The main attraction are strippers - women who dance in erotic way using the abovementioned poles, with most of their clothes off for you visual pleasure while you sit back and drink beers with your mates. Often they will let you get close to them, most likely for you to give them a tip if you are enjoying the display. Office Guy #1: Hey wanna go down to the strip club after work?Office Guy #2: Sure, what the heck, I was just gonna go home and beat off for a few hours anyway. I just wanted to make sure we were all clear par example.
Just got home from the ballet! aka, Strip club
Just like any other club, except that that there is a stage often featuring fixed metal poles. The main attraction are strippers - women who dance in erotic way using the abovementioned poles, with most of their clothes off for you visual pleasure while you sit back and drink beers with your mates. Often they will let you get close to them, most likely for you to give them a tip if you are enjoying the display. Office Guy #1: Hey wanna go down to the strip club after work?Office Guy #2: Sure, what the heck, I was just gonna go home and beat off for a few hours anyway. I just wanted to make sure we were all clear par example.
Secret societies and any (open) "Society with Secrets" are where the Elite and Deep State players hang out.
When doing so, its attributes as a Mutual Interest Society evolve, because... they inevitably share their worldviews, visions (for a 'better' world), and ideas. Relationships and alliances developed naturally. What is Cooperation and Collusion, is often called Conspiracy. For those who don't know this, the former are activities within the Law (with its customized loopholes via lobbying), the latter are not. Hence, top dogs don't need to conspire, as underdogs do.
If you know human nature and history, you'd realize that it's always been so, in all cultures. Even so...
Freedom and Democracy cannot be maintained if society isn't open enough, and if there aren't enough Checks & Balances in place to keep it so. These Societies end up working against National interests when they become international, because their Interests need no longer align with national interests.
Central Planning has turned us into a "financial collective" , eerily reminiscent and smacks of old Mother Russia.
We're being screwed while we're getting fucked...
I continue to state the discussion of dealing with the problems the world and primarily this country are confronted with is a function of centralization vs. decentralization of authority. This country was established on a foundation of state authority and control. The states, through special agreements, have allowed the central government to gain control over its territory.
A large and powerful central government was the platform of the War of Northern Aggression. The founders were well aware of the citizenry losing control if a central government and banking system grew beyond its means. A key problem we face today is zombies are allowed to vote which went against the desires of the founders.
http://www.naturalnews.com/049754_zombie_apocalypse_mindless_voters_irrational_thinking.html
"World of activist central banks"
"World of zionist world order central banks"
fixed.
Sounds like gang violence.
All you need to know about Central Banks is they follow private banks who want funds to flow to them
- less liquidity for households,
- Credit to Households is good since they provide this credit,
- Debt on everyone is good again since private banks provide this credit,
- Govt taxes oh households is good since private banks know how to release these funds to corporations and profit from these kinds of govt fund.
M1V, M2V, MZMV, and Multiplier all seem to Trend down before Collapse in 2008.
https://research.stlouisfed.org/fred2/series/MZMV
https://research.stlouisfed.org/fred2/series/M2V
https://research.stlouisfed.org/fred2/series/M1V
https://research.stlouisfed.org/fred2/series/MULT
- It is wealth transfer, Wealth Extraction, which is the goal of all Central banks
- Debt Service could be called Economic Leakage or Velocity Leakage much like Wealth Being Extracted from USA and Exported Off-Shore. We call this Rentier Behavior in a certain sense too. Excessive Debt service is a wealth transfer and certain to dampen consumption.
We know the Housing bubble High was Oct 2005. So check the chart from FRED for rise. Even in 2004 it was clear that Credit had risen to a Danger Zone in relation to GDP. Anywhere near 52%-54% would be Bubble Zone and this is where we were in 2003-2004.
Credit to GDP Chart shows we are still in Credit Bubble Territory and how obvious it was.
Bank Private Credit to GDP for United States
2011: 55.47615 Percent (Data spans from 1961 to 2011)
http://research.stlouisfed.org/fred2/series/DDDI01USA156NWDB
But this one looks worse (Delinked to Deposits? Bubble 1996, 1998, 1999):
Private Credit by Deposit Money Banks and Other Financial Institutions to GDP for United States, 2011: 189.51640 Percent,
http://research.stlouisfed.org/fred2/series/DDDI12USA156NWDB
Treasury, Jack Lew
SEC, Mary Jo White
CFTC, Timothy Massad
Fed, Janet Yellen
OCC, Thomas J. Curry
CFPB, Richard Cordray
FDIC, Martin Gruenberg
FHFA, Mel Watt
NCUA, Debbie Matz
Insurance, S. Roy Woodall, Jr.
Believe Household Debt is now $14 Trillion, so FRED Data is actually not yet up to date...
Households and Nonprofit Organizations; Credit Market Instruments; Liability, Level
2014:Q4: 13,496.88 Billions of Dollars
http://research.stlouisfed.org/fred2/series/CMDEBT
Here is another big bubble, jumped 8% in Financial Crisis as the USA Surrendered Sovereignty:
Federal Debt Held by Foreign & International Investors as Percent of Gross Domestic Product, 2014:Q4: 34.75940 Percent of GDP, HBFIGDQ188S,
http://research.stlouisfed.org/fred2/series/HBFIGDQ188S
Current Account Balance: Total Trade of Goods for the United States©, 2013: -703,911,000,000 US Dollars,
Sum Over Component Sub-periods (2013 was last data),
http://research.stlouisfed.org/fred2/series/BPBLTD01USA637S
- We just Export our Wealth & Economic Strength, open our borders, and Sell our Wealth building businesses, property & resources including our consumer markets
US-South Korea Free Trade Agreement Anniversary: Opponents
www.ibtimes.com/ us-south-korea-free-trade-agreement-anniversary-opponents-blast-growt h-trade-deficit-1848824
Mar 17, 2015 ... U.S. trade negotiators consider the free trade pact with South Korea to be ... translates to a net loss of roughly 85,000 U.S. jobs,
- To Bad we don't have Honest Brokers in DOJ, FBI, SEC, FINRA, FTC, GAO, CBO, FED, Treasury, OCC, FSOC, BCFP, CFTC, FDIC, FHFA, SIPC
The world of activist central banksters is proactive indeed; they give the “Criminal Justice System” an entirely new meaning from a system that prosecutes criminals to one that is run by criminals. Ha. Ha. Ha.
The central bankster latest move is for a cashless society that will soon be beta tested in Europe that will give the totalitarian fascist criminals total financial control.
The bankster psychopathic wet dream is to bar code everyone and electronically scan them for credit points. Crazy huh? Ha. Ha. Ha.