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China's is the First Central Bank to Lose Control… It Won't Be the Last
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 last month that things truly became completely and utterly broken.
A month or so ago, China lost control of its stock market. Despite freezing the market, banning short-selling, arresting short-sellers, and injecting billions of Dollars per day into the markets, China's stock market continues to implode.

Please let this sink in: a Central bank, indeed, one of the largest, most important Central Banks, has officially "lost control."
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.
To pick up a FREE copy…
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research
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Fed is not losing control...if only.
why does supposedly communist China have a private central bank and it's own stock market? True communism would ban that kind of parasitism. Oh yeah they're fascist just like how the Nazis had socialism in their name even though they were 100% against it.
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Wait until EVERYONE suddenly returns their US $ holdings and wants something else in exchange.
Both shores will be green with US $'s
It will be akin to 5000 757's circling over JFK all running low on fuel and they all decide to land at the same time.
Good luck everyone and God speed.
Bill Clinton is the absolute worst president the U.S. ever had.
he sold the farm to China and India now the jobs will never come back unless the US starts a war that no one can win.
Bill Clinton was bad but guys like Andrew Johnson and W Bush existed so yeah he wasn't the worst.
The jobs are coming back. It is called reshoring.
Except robots (oil and electrivity) are doing the work.
This history & crash of china's economy, is precisely why the USA should have never gone down the New World Order road ever since 1980, with strong waves thrusting the NWO direction, from Clinton, Bush, and now Obama, directly down everyone's (international) throat. Economic & military tsunamis are part of the USA's NWO direction.
The M. Friedman economics, not the Keynsian theory is what is responsible for the major fraud, the major crashes, and the general race to cut everyone's (internationally) throat. There should be little doubt of this, as R. Reagan & M. Thathcer were so proud of their trickle down economics back in the early 1980's and all of labor (internationally) has suffered from it ever since.
Their NWO desires cutthroat wages, slave wages even, support the massive fraud at the upper levels of management, all corrupt and generally illegal (locally & internationally), and are supported by new laws often called 'free trade agreements', which primarily provide a legal shift of labor value downward (internationally). Backed up with armies of personnel to act out the wars on terror, environmental disasters, and private & public insurance & assurances, & massive surveillance all playing their part in the centralized chaos.
The IMF (International Monetary Fund) has always worked this way, implementing all sorts of economic destruction, in every corner of the globe.
If China wasn't a part of the NWO, the WTO, and if they did not 'prop up their economics with propagandized news reports of rich payments and other activities' we would be seeing the exact same result! Any time your government is hemorrhaging 2 Billion/day,~~~get a clue, your getting ripped off, and no that money will never be seen again, because it was fraud in the first place....
....Just as they have done here in the USA, beginning around late 2007, they made legal, 'the $700B Swindle', and the reality has come to light, and we all know now that law was just a joke to hide a much larger window over at the Fed discount window, billions/day flew out of that window, and still does to this very day.
wwxx
What about Zimbabwe, Argentina, Japan and Germany 1930's?
And I've got a 100 Trillion Dollar Zimbabwae Note if anyone wants to trade a Twix bar.
Bank of China was what saved EU's ass originally
...pretty sure the Fed was the first to "lose control"....
We will know within the next 10 business days if the Central Banks have either lost total control OR they are intentionally allowing this to happen. We are entering the trade war phase as the currency war, phase 1 of 3, begins to unravel and expect the Chinese to completely depeg from the dollar in the near future, which will kill the global economy by melting the bond markets followed by the equity markets. QE4, which QE has never stopped as shown by the FED's balance sheet and now the major banks illiquid balance sheets. THEN, the blame games and hot wars will begin.
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Many "good" voices have said we will not have a hot war, but that is fantasy, for the Scripture says that nation will rise against nation and the truth of God's word has been and always speaks truth. It is coming and eventually it will be the Lord Jesus who cleans up this mess and as anyone can see it will take a supernatural act to clean this mess up. Do you still believe in marco-evolution, "the goo to you via the zoo"? As opposed to the One who was there, did it, and told us, which His telling us is the ONLY way we can know; all else is mere speculation.
Start talking about fictional characters written thousands of years ago by sand dwelling donkey fuckers and you lose all credibility.
"Central Banks went “all in” on the Keynesian lunacy that they’d been employing since 2008"
The idiot belief that monetary policy alone can create economic growth is not Keynesian. It's monetarist. Seriously, am I the only person in the world who's studied this stuff? You know things are bad when some random commenter has a better grasp of economic theory than the analysts providing investment advice for a living.
Thanks Snooz!
Seems to me every time i read a comment that uses "Communist, Keynesian , Socialist etc " tags....the commentor is only showing the shallowness of their thinking. Name calling does not make a good replacemnet for thinking. I've read Keynes and agree that in times of economic slowdown, its a good time for gov to do infrastructure projects...material and labor is cheaper and it tends to smooth out the curve....but i've seen nothing in the way of infrastructure building ...no TVA's, no Hoover Dams etc.....just the banker casino being backed by the cabal in Washington / wall street. This isn't keynesian ....its just plain oliigarchy greed.
Nuff said!
Edit ...sorry, but did i forget to add all the religion flunkies who have given up all reasoning, based on myths and scraps put together by a cabal of licentuous holy men .....i must be slipping.
for money to have value there has to be risk/reward and that is usery.
usery has been all but removed and allocated to the first touch(skim), hence the situation the world is experiencing; out of control misallocation with china being the off the charts keynsian disaster unfolding. simply too much debt with no way of repaying from diminishing income.
bondholders?
Except for taxpayers, who cares about inflated debt?
It seems ridiculous that the IMF is withholding Chinas entry into the basket of reserve currencies. If China sneezes the globe catches a cold. China is far too important to ignore or dismiss. I see their devaluation of the Yuan as a: "How do you like me now" kinda thing.
When in history has the FED had such an inflated balance sheet?
That is irrelevant. The Fed could delete everything it owns and the world would all be better off for it since then there would be no interest servicing. The problem with liabilities is the foreign nations that hold them and what leverage they have to demand payment. Things like withholding vital supplies or making war. That is what it all comes down to. The Fed is a paper tiger and if they ever tried to make a claim, Americans might finally wake up and delete the Fed!
It has become abundantly clear that when it comes to the "economic chips" the powers to be have no intention of letting them fall where they may. However, several factors determine just how much influence can be applied to the the final outcome of current economic policies. Continuing with the metaphor of "falling chips." Things like the size of the chips, the rate or speed at which they fall, and the number of chips in the air may make them uncontrollable.
My point is we could find ourselves up to our neck in chips in a blink of an eye, and in the middle of an economic tsunami all bets are off as to how successful efforts to stem a catastrophe might be. The financial overlords are losing control and this means during the final stage of the global shakedown events will be chaotic and become very wild. More below on how violent the crash might be.
http://brucewilds.blogspot.com/2015/08/the-final-shakedown-will-be-uncontrolled.html
No. That a central bank can "lose control" of a stock market implies that it could ever control a stock market. Pure Keynesian rubbish. Sure, a central bank can somewhat influence a stock market for a short period of time. Control? Never.
China's reaction is only dealing with what the FED, BOJ, ECB and BOE unleashed through reckless money printing to maintain their positions so it was only to be expected.
CURRENCY WAR!
Stop exaggerate things. Chinese market is still 50% above a year ago. And Yuan barely devalued 4 % this week. After running up 25% or more against Euro and Yen.
If Dow, Nasdaq crash, its America's own doing.
SEVEN YEARS of warping support that would've been unconscionable just a couple decades ago...
And where are we?
Unbelievable already...
m
http://www.luogocomune.net/site/modules/sections/index.php?op=viewarticl...
talk about things "that would've been unconscionable just a couple decades ago..."
or would thay?
how much of what we think we "see" and "hear" is just a rich man's trick?
What central banks are next to fall...would like to know so I can short their stock markets...
Well, let's see. If we were to ever lose 500 points in a day, I might be getting nervous, oh..., wait.
When they call out their security forces to stop the protests, then they will of lost control.....
china called out tanks back in 1989 not to mention plain and simple torturing and killing teachers in the cultural revolution with the purpose of making their populace stupid . . .
Isn't that what is happening in Turkey?
isn't that what happened to those people in ferguson, with occupy wall street, at the g20? in palestine, burma. hong kong, syria, kazakhstan, nigeria, sudan, ukraine?
and then there's this:
http://www.zerohedge.com/news/2015-08-21/paul-craig-roberts-america-gulag
so china is the black swan! the black swan is china, right in front of us in the gymnasium.
did you see the gorilla(yet). it moves slow at first, but like a bear, can move deceivingly fast and overpower its adversary. you simply can not outrun a bear. and that shadow that just cast its dark spot briefly, well it is the swan passing overhead. it is airborn...
it will be interesting to see how the worlds banksters try to contain this one.
just remember one tidbit. 6 years of concrete = ,100 years in merica or leveraged overcapacity
the human civialazation has never fathomed possible til china took center stage. this is epic...
oh, and if china built it, it is safe to say it is not safe...