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This Is What It Looks Like When Central Banks Lose Control
In the utopian world of US equities - where every dip is a buying opportunity and "The Fed's got your back," - it is blasphemous for anyone to suggest this state of affairs cannot go on forever is extreme. However, as China encountered an accelerated version of the farce that the US has experienced in the past few years, the same "The PBOC's got your back" mentality dominated every fundamental fact and central bank omnipotence was doctrine. That is until 2 weeks ago... when modest efforts to rein in exponentially-growing leverage pricked the new normal's narrative. Now every "save" by the government and every plunge protected is sold into by a desperate population burned...
This is what it looks like when a central bank loses control...
Couldn't happen here? That's what the Chinese said 2 weeks ago!
And by the way - it already did happen in America - twice...
Charts: Bloomberg
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Time for a new 4th of July holiday Golden Jackass interview on TFMR
Turd and the Jackass for 1.5 hours...what could possibly go wrong? haha :-)
It's on the house, so if ya wanna kill some time and hear Jim Willie's thoughts on the geo-political and economic collapse underway as we speak, here's the link:
http://www.tfmetalsreport.com/podcast/6968/jackass-our-own-yankee-doodle-dandy
Enjoy this 4th of July, folks. Think about what it means and what it stands for. The future of freedom not just in America but the rest of the world hasn't been in this much jeopardy since WWII. The new threats to freedom and liberty are hitting us from all angles. Get prepared. By this time next year the scumbags in charge will be banning the 4th of July just as they're banning everything else and driving us into another world war situation.
Speaking of Central Banks... This is hilarious!
According to FAZ (Frankfurter Allgemeine Zeitung), Greece has defaulted TWICE.
Firstly, to the IMF (EUR 1.6 Billion), and now to its own Bank of Greece (EUR 470 Million).
It seems, everybody everywhere has been consumed with Greece’s not making payments to the IMF, ECB, EU, so they “forgot” to make a payment to their own Central Bank on an old pre-Euro loan from the mid-90’s.
No matter how ridiculous this is, the ISDA f… f… fornicators cannot sweep this default under the rug without triggering the CDSs.
Popcorn, anyone? ;-)
Looney
Long Bank of Utica would appear.
"That's the distribution center for all the Electricity."
Sure looks like these batteries are the real deal...not cheap though.
When CB'ers lose control you better have your Bitcoin ready.
"Breaker breaker one-9, can you read me? Cryptoanarchy is online."
What does it mean for bitcoin if China's government is the largest miner? Do they not become the "trusted" third-party? I'd rather have metal in my hands.
Chinese .gov is not the biggest miner. Stop being dumb.
stop trying to junk teh we!
It will not happen here because are central bankers are smarter, Aks them.
Loony,
I am so glad that paper changed it's name to Frankfurter Allgemeine Zeitung. It used to be called Wurst Allgemeine Zeitung, or WAZ.
Looney speaks the truth, and a hat tip for the info.
Incredible ! Greece can't even pay back a loan to it's own Central Bank made in ......1993 !!!!
What's more is....this loan was sort of a "consolidation" debt instrument of PREVIOUS loans by the Greek Central Bank to Greece because after the ratification of the Masstrict treaty, the Greek Central Bank couldn't "monetize" their debt.
LOL !!!! Greece is not only financially fucked....they're COSMICALLY FUCKED !!!
I'm celebrating Independence Day by flying my Pirate flag. You don't get more independent than a Pirate or a Hermit.
http://geopoliticainternazionale.blogfree.net/?t=5153942
Greek ...
http://albainternazionale.blogspot.it/2015/07/sousse-falsa-bandiera-e-la...
Sousse, False flag and Inside Job ...
The most glorious people's republic has instituted protection to all great citizens who hold faith in our glorious market...all dissident accounts to be seized, and offenders to be sent for political reeducation. Political reeducation will involve ak-47 and wall to stand at. Blessed be the glorious people republic.
And, best of all, you'll get to pay for you're own bullet before they use it to blow your brains out.
It will happen here...time to fire up the william wallace freedom speech. God help us.
I can see it now. William Wallace rises up to extort the liberties for all mankind only to hear the peaceful bleating of the sheep at the end of his speech.
its a matter of how big their balance sheet gets. i dont really have an idea how much more QE they can do, but when it happens the fed will become as irrelevant and just as reviled as fannie mae. what happens then is just a bit more legerdemain. they open a new line in a new agency, or they just go off balance sheet and use direct intervention. since they already do these things it should not surprise anyone, great collapses dont occur because of change, the world doesnt end because of some rogue asteroid, it ends because we keep doing the same things until their limits are reached. and when old institutions are made obsolete by new ones. and so it may also be that IMF and their SDRs will replace the dollar and the euro. the fed ends with a whimper not a bang
The "Federl Reserve" is defaulting to the dollar.
Who gives a fuck?
So they and their Government minders have printed trillions in U payable debts into existence?
They sound will nigh worthless to me.
The Teasury Department is the repository of actual CURRENCY.
Unlike the Fed the Treasury Department actually HAS MONEY.
This is what would have happened to US and European stock markets without QE.
Which would have created some legitimate buying opportunites.
So much of this is caused by the fact that the rally was financed by borrowed money.
The mighty "Federal Reserve" couldn't even afford the cotton and linen.
"They hit the send button on their Cell Phone."
Needless to say "that line isn't secure!"....
Just wait until the tsunami hits hits western markets Tyler. it's different this time, in that there's 14-15 $usd trillion extra of funny money floating around the system.
It's different this time in that there's no way out but to monetize new debt and make the rampant inflation on essential living items even MOAR unbearable.
everyone is forgetting that the big fund complexes now have lending arrangements with their funds that have lots of cash.
thus, NO NEED TO SELL THE UNDERLYING TO MEET REDEMPTIONS.
our CB's are much, much better thieves than the chinese. more experience.
Which is why interest rates will never go up.(offically)
This is how "free market" looks, not a picture of PBOC losing control. By the time PBOC cuts one year benchmark rate from 4.85% to 0.25% as the Fed did, then it's losing control.
That's a great point imo despite someone giving you a down vote (not me). I wonder if the PBOC will lower rates that much since the Chinaman already thinks he's gettin gripped off with a yield of 4.85%, even though merikan retirees would love that yield.
If the PBOC cuts rates again, more people might be pushed out of savings and into risky markets (such as is happening in the West) and drive up their already crazy RE prices higher. It's odd the Chinaman ran into paper stuff (like stawks) instead of piling up bars of gold. It's true, gold buying there is still hot but I wonder why more did not grab a hard, undervalued, asset (like gold or silver or even platinum ---which is very hot in HK I read) vs paper c-r-a-p that can be Corzined in a blink of the eye.
Free market because central bank? LOL.
When central banks cease setting interest rates, and the market takes over, then you will have a free market.
What's wrong with fleecing idiot investors of their savings? Why not entice an untold number of retail investors into the market to provide liquidity for your exit?
“One vast and ecumenical holding company,
For whom all men will work to serve a common profit,
In which all men will hold a share of stock,
All necessities provided,
All anxieties tranquilized,
All boredom amused”
Network, 1976
Unfortunately, we all know how this ended for Howard Beale, the voice and spirit of the truly free and independent. He got sacrificed on live TV taking five slugs to the chest in a blaze of gunfire.
It's the Old Double Whammy or Insult to Injury Bad Hand Dealt to Joe Public.
The BankCorp Cabal run the Worlds' Economies into the Ground with the blessing of Governments & MSM , LAYING THE BLAME at Gadaffi's Door ( or Saddam's or Assad's . . or Russia's or China's or Greece's . . . . ) then Declare WAR , MURDERING AT WILL , DESTROYING CIVILIZATION.
Cosmos in the week said ' regrettable to back another country ahead of your own ' (paraphrasing)
It's not YOUR COUNTRY, it's the Cabal's Cuntry and you're just a temporary Guest.
Time to break out the ventilator for the sick-man of Asia.
Will Greece go cold turkey on the Euro debt needle, or will it start to prostitute itself to keep the habit going?
Clearly it has been skimping on food and the electricity bill is overdue, but will it start giving bj's to earn extra dough?
There is no cure for sucker.
Lol ... why would anyone ever think that the central bank lost control instead of simply understanding that this is what central banks do, by design.
Thomas Jefferson told us so.
Graph of Chinese Market Drop Rates: https://www.dropbox.com/s/iayr39yhm2kjgjp/ChineseMarketDeclines_A00.png?dl=0
Statistical analysis of the Chinese Stock Market data presented above has a rapidly increasing rate of decline;
First plunge: 6.44% per hour
Second Plunge: 11.94% per hour (85% faster)
Third Plunge: 144.9% per hour (1100% faster)
Central Bullshitters bullshit has utility in so far as it serves a purpose, purportedly. Notice all the propaganda campaigns the bankster/gangsters have utilized since 2008. Frankly, the USA alone likely has upwards of one million propagandists shilling for the most dominant players in the de Rothschild banking empire, and the Israel lobby 24/7. BIG Propaganda costs BIG bucks, and takes hundreds of thousands of media personalities. I am calling for a moratorium on being phased by their constant, and non-variable, bullshit. We all know that they lie every single day of the week. It's nice to see empirical data that directly refutes their collective infallibility. Like Pope Ponzi Climate Change they are always feeding us their brand of 'religion and are asking for donations for their coffers.
Yes. Except... it would be nice if they just ASKED!!!
No such luck. "Ask" is not how predators operate.