Lord Rothschild: "This Is The Greatest Experiment In Monetary Policy In The History Of The World"

Tyler Durden's picture

Two months ago, the bond manager of what was once the world's biggest bond fund had a dire prediction about how "all of this" will end (spoiler: not well).

Now, it is the turn of another financial icon, if from a vastly different legacy -  and pedigree - that of Rothschild Investment Trust Chairman himself, Lord Jacob Rothschild, who appears to be the latest entrant to the bearish billionaire club.

We were surprised to find his summary of recent events downright gloomy, and certainly non-conforming with a stock "market", manipulated by central banks as it may be, trading at all time highs. Here are the key excerpts:

The six months under review have seen central bankers continuing what is surely the greatest experiment in monetary policy in the history of the world. We are therefore in uncharted waters and it is impossible to predict the unintended consequences of very low interest rates, with some 30% of global government debt at negative yields, combined with quantitative easing on a massive scale.

 

To date, at least in stock market terms, the policy has been successful with markets near their highs, while volatility on the whole has remained low. Nearly all classes of investment have been boosted by the rising monetary tide. Meanwhile, growth remains anaemic, with weak demand and deflation in many parts of the developed world. 

 

Many of the risks which I underlined in my 2015 statement remain; indeed the geo-political situation has deteriorated with the UK having voted to leave the European Union, the presidential election in the US  in November is likely to be unusually fraught, while the situation in China remains opaque and the slowing down of economic growth will surely lead to problems. Conflict in the Middle East continues and is unlikely to be resolved for many years. We have already felt the consequences of this in France, Germany and the USA in terrorist attacks.

As a result, Rothschild has put his money where his mouth is: "we have reduced our exposure from 55% to 44%. Our Sterling exposure was significantly reduced over the period to 34%, and currently stands at approximately 25%. We increased gold and precious metals to 8% by the end of June."

* * *

Not surprising, RIT's investment portfolio continues do quite well, and has now returned roughly 2,000% since inception

 

Here is the full section from the RIT Capital Partners' latest half-year financial report.

The six months under review have seen central bankers continuing what is surely the greatest experiment in monetary policy in the history of the world. We are therefore in uncharted waters and it is impossible to predict the unintended consequences of very low interest rates, with some 30% of global government debt at negative yields, combined with quantitative easing on a massive scale.

 

To date, at least in stock market terms, the policy has been successful with markets near their highs, while volatility on the whole has remained low. Nearly all classes of investment have been boosted by the rising monetary tide. Meanwhile, growth remains anaemic, with weak demand and deflation in many parts of the developed world.

 

Many of the risks which I underlined in my 2015 statement remain; indeed the geo-political situation has deteriorated with the UK having voted to leave the European Union, the presidential election in the US  in November is likely to be unusually fraught, while the situation in China remains opaque and the slowing down of economic growth will surely lead to problems. Conflict in the Middle East continues and is unlikely to be resolved for many years. We have already felt the consequences of this in France, Germany and the USA in terrorist attacks.

 

In times like these, preservation of capital in real terms continues to be as important an objective as any in the management of your Company’s assets. In respect of your Company’s asset allocation, on quoted equities we have reduced our exposure from 55% to 44%. Our Sterling exposure was significantly reduced over the period to 34%, and currently stands at approximately 25%. We increased gold and precious metals to 8% by the end of June. We also increased our allocation to absolute return and credit, which delivered positive returns over the period, benefiting from a number of special situations. Within this category our new association with Eisler Capital had an encouraging start. We expect this part of the portfolio to be an increasingly important contributor to overall returns.

 

On currencies, we reduced our exposure to Sterling in anticipation of Brexit and the generally unsettled UK political environment. Our significant US Dollar position has now been somewhat reduced as, following the Dollar’s rise, we saw interesting opportunities in other currencies as well as gold, the latter reflecting our concerns about monetary policy and ever declining real yields

Below is a snapshot of where every hedge fund wants to end up: the Rothschild investment portfolio.

 

Finally, for all those wondering where the Rothschild family fortune is hiding, here is the answer.

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Kaiser Sousa's picture

DEATH TO THE FUCKING MONEYCHANGERS.

TahoeBilly2012's picture

First, hide the kids, then everything else. Do not look him in the eye.

I MISS KUDLOW's picture

ill never forget him coming on to cnbc at closng bell in 2009 after crash in 2008 with a botoxed Maria Bartrolhomolosolo,,,,

Maria Bartrolohomooloa asked him should investors still put money in their 401ks????? keep their contributions up? he couldnt stop laughing,,,,,,at her and the system,,,,finally belly laughing he said probably not i dont think so,,,more laughter

O C Sure's picture

 

 

Again and as always, a monetary policy is a most welcomed environment.

 

The global cartel of fractional reserve counterfeiters cannot have a policy of managing money.

 

This is not their nature.

yrad's picture

And I'm guessing Lord Roth knows which side to be on.. Both sides

O C Sure's picture

Exactly correct. For, this has nothing to do with an experiment in money policies.

It is the greatest demonstration of Sophistry by indoctrinating their most simple tool known as THE TURNING OF NAMES...

HopefulCynical's picture

Is he fucking serious?

Like his family isn't calling every fucking play being run...

Death to the moneychangers, indeed.

knukles's picture

He looks like a Shape Shifting Reptiod.*

 

*  Remember kids, there are two and only two remaining Conspiracy Theories; Shape Shifting Reptilian Overlords and UFOs

Tom Servo's picture

This is another fucker that's long past his expiration date...

WHY DONT THESE FOSSILS FUCKING DIE ALREADY...

 

scintillator9's picture

Has one ever felt very tired next to a very old person, or felt how powerful, as in full of life and energy, a few hours old newborn child feels?

That is ALL one needs to know.

espirit's picture

Lord Roth Lizzard only has a dollar (Euro?) bet on the outcome.

SMG's picture

This is no experiment.  This evil f***er and his minions know exactly what happens at the end of this just as he and his buddies planned.  All these bastards and their minions need to be hanged.

Stainless Steel Rat's picture
Stainless Steel Rat (not verified) SMG Aug 16, 2016 10:09 PM

We probably have little more than a week...

gargoylian's picture

The ROTHSCHILDS are the bane of humanity. https://goo.gl/bFYusM

Pinto Currency's picture

The Rothschilds introduced unallocated gold contracts ('paper gold') to the LBMA in the late 1980s thereby rigging the global gold market (i.e. short circuiting the monetary warning system) and global interest rates:

http://www.safehaven.com/article/41072/moving-to-the-post-lbma-era-gold-price-reset-watch-out

In 1988, Rothschild's Economist magazine could thus confidently predict a new global gold currency in 2018 as global bond market and monetary system colllapse was inevitable after that point:

https://www.reddit.com/r/Bitcoin/comments/4nag4b/1988_economist_cover_predicting_a_world_currency/

spastic_colon's picture

"The six months under review have seen central bankers continuing what is surely the greatest experiment in monetary policy in the history of the world. We are therefore in uncharted waters and it is impossible to predict the unintended consequences of very low interest rates, with some 30% of global government debt at negative yields, combined with quantitative easing on a massive scale.

 

 

Hey! he stole this from my 3rd graders economics project!

 

chunga's picture

These demons that profit by experimenting with the livelihoods of millions stride the earth with impunity. The first one of these deities flopping around out there that throws a good smite on them can sign me up for monthly auto-tithing.

weburke's picture

zero betrays itself again by calling this guy LORD.

royals are self appoint, russia is a parlimentary monachy.  we lost the 1776 war against the royals.

BullyBearish's picture

More like LORD VOLDEMORT...

Escrava Isaura's picture

Lord Rothschild: it is impossible to predict the unintended consequences……. 

 

Once it fails, the population will be giving the final reason to free themselves of all repressive and authoritarian state and private institutions.

 

So, you, and your institution, can count on be out of a job.

 

eforce's picture

When that happens the migrants will be unleashed as a distraction.

Escrava Isaura's picture

You might have a point there.

 

Troy Ounce's picture

 

 

If the sheeple would only give a fuck. 

It seems, they rather eat mud.

No wonder banksters exist.

RaceToTheBottom's picture

I firmly believe this is why we are seeing the drug laws being softened:

1) Monetary decision about the totals costs of restricting the drug trade.

2) Using the drug trade to keep a docile, stupid slave force.

michelp's picture

Lord Rothschild: it is impossible to predict the unintended consequences……. 


"In government, nothing happens by accident.  If it happens, you can bet it was planned that way."  

-- Franklin Delano Roosevelt

 

 

sleigher's picture

"This is another fucker that's long past his expiration date..."

 

They have kids that take over them when they die.   Either that or they do some ritual to have satan put their souls in a babies body.   Probably the latter...

thetruthhurts's picture

 ...it is impossible to predict the unintended consequences of very low interest rates, with some 30% of global government debt at negative yields, combined with quantitative easing on a massive scale."

It was also impossible to see that device in the middle of the room called "Little Boy" taking out a major Japanese city.....BooooooM!

Socratic Dog's picture

Speaking of conspiracy theories, I recall reading recently that there is some doubt about whether Little Boy took out any city at all.  Wasn't that on the Hedge a coupla weeks ago?

nailGun's picture

yea exactly. both tend to vaporize shit.

Casey Jones's picture

Because they're all rigged out with advanced organ transplants, the latest gene therapy, and only God knows what other DoD-researched life extension shit just for them. Dick Cheney is in that club, too. Maybe it was his reward for such a bang up job on 9/11/01.

fishpoem's picture

LMFAO! Thank you. I needed that.

SamAdams's picture

Because "his" heart is with the Palestinians?

J S Bach's picture

Oh, God of truth... let this wizened creature of usurious death die upon its vine.  Let the fruit of a new age bear witness to an harmonious and honest rebirth of humanity without the encumbrance of debt around its neck.  Let the tide of history FINALLY commence undistorted and unencumbered by the forces of the kosher Adversary.

Here2Go's picture
Here2Go (not verified) J S Bach Aug 16, 2016 11:07 PM

Maybe the Cubs win the World Series too

IS BE's picture

Ha! And now he admits they are real!

RichardParker's picture

He looks like the The Croglin Vampire (hat tip to fellow ZHer for the ref.):

http://www.lesedwards.com/galleries/vintage/the-croglin-vampire/1090

Keyser's picture

They are not theories, nor is it a conspiracy as they have stopped hiding it... When the Queen Mum comes out stating that she is a not human, you know the end is nye...

Chief Wonder Bread's picture

Let's not get hung up too much on "Lord" Rottenchilld and his connections to lizardry. I have to comment of the well-circulated Bill Gross quote at the top about a "supernova that will explode one day". I think this is a mischaracterization and tends to panic investors to indiscriminately abandon all investments, bonds as well as stocks.

This is just the opposite of what's happening IMO. It is not an explosion at all, just the opposite is happening. This is a historic IMPLOSION that we are witnessing; a vast destruction underway of debt money on an unprecedented scale. The history books will have to be rewritten to cover it. As it gathers speed one of its effects will be to smash to ruins the elevated stock prices certainly, but U.S. gov't bonds at least have different characteristics and should do well (at least during this phase of the long cycle) in terms of capital appreciation.

This phenomenon acts as a giant sinkhole that is pulling everything into its funnel in the course of which it destroys credit money (or debt money: same thing), that's what neg interest rates are. The bank says lend us your money and for the privilege we will take part of that loan and extinguish it and return less than you loaned out. The part that they keep is the initiating force and first manifestation of this debt destruction building on itself like a firestorm and creating further destruction.

Government debt of the major developed nations should do well as this process unfolds.

nope-1004's picture

Geeze... Groenings' drawing style sure is getting bad.  Or did Mr. Burns have a stroke?

And, WTF is the guy "lord" of?  My Lord didn't have a wallet, didn't steal, didn't manipulate, didn't start wars, and likely wouldn't qualify to be Pastor or Priest of ANY Christian church today, by current prerequisite standards.

That's the problem with humanity today.  Fuck you and your Fucking gay name, mr lord rothy.  You're anything but a lord, and quite frankly, I'd like to see you grab a shovel or collect garbage one day a week for some city somewhere, you holier-than-thou asshole.  Be productive instead of a one-way suck.

All he knows how to do is take.  The next obvious questions is, from whom do you think?

Yep.... its you!

 

Seek_Truth's picture

He is a lord of Mammon.

His family name is bathed in blood, deceit, usury and treachery, in order to gain power and wealth.

But he will have his comeuppance when the true LORD returns.