One Bank's Shocking Warning: Central Banks Will Lead To "An Orgy Of Blood"

Tyler Durden's picture

Whereas several years ago, forecasting that central banks would unleash wars, bloodshed and social conflict was considered so preposterous, it was relegated to the domain of fringe, tinfoil hat blogs, it has gradually been "normalized" as even the mainstream realized just how clueless the world's central planner truly are, and this scandalous topic ghas since migrated to the permitted list of items for discussion by respected, establishment institutions including banks and wealth managers, such as the UK's Clarmond Wealth.

Case in point, in the latest market comment note by Clarmond's Chris Andrew and Mustafa Zaidi, titled aptly enough "An Orgy of Blood" the duo warn, in no uncertain terms, that "central banks are currently furnishing the excess credit that, in the past, has been followed by an orgy of blood."

Below we repost the full Clarmond note which just a few short years ago would have prompted scandalous outrage across the "very serious people's" world of finace, and now is more or less considered common knowledge as to how "this" all ends, and hardly generates any reaction.

* * *

An Orgy of Blood (link)

The Bank of Japan’s current path provides an ominous reminder of a similar era 80 years ago. These policies, which are also being followed by the other world central banks, will lead to disaster.

“One man - one kill” railed inoue Nissho, leader of the Ketsumeidan (the Blood Pledge Corps), a Japanese ultranationalist group of the 1930s committed to cleansing the country of ‘traitors’ - the leaders of business and government.

The first name on their death list was Inoue Junnosuke, a former Finance Minister, an austerity advocate and former governor of the Bank of Japan (BOJ); he was shot as he visited a nursery school. The next name was Dan Takuma, head of the Mitsui Group, the Japanese Goldman Sachs; he was shot in front of his office in the fashionable Nihonbashi district. Further attacks on the BOJ and Mitsubishi Bank followed but were unsuccessful. The “world of cosmopolitan finance had collided with nationalist resentment.” The liberal elite was stunned, unable to provide answers to the social turmoil of the time; and with the establishment paralysed, the public began to sympathise with the killers’ aims.

Enter Finance Minister Takahashi Korekiyo. He placated the nationalists by championing massive deficit financing, via the BOJ, to pull Japan out of its economic morass. Japan’s economy soon embarked on a period of economic growth with stable prices, full employment and humming factories, an “economic nirvana.” Seven decades later these results were heralded a success by another central banker trying a similar trick - Ben Bernanke.

Korekiyo’s plan was to fund government spending by having the BOJ directly purchase all the government-issued bonds. The hope was that, when conditions and inflation improved, the bonds would be sold back into the market. Four years later, the BOJ’s balance sheet was 90% of GDP, and the economy (and for “economy” read military) was totally dependent on government spending financed by the BOJ.

As the first modest hint of inflation arrived Korekiyo attempted to sell government bonds publicly, but the auction failed. With this failure it became clear that the bonds which had been stuffed onto the BOJ’s balance sheet could never be sold. Korekiyo’s struggle to ‘cut up the credit card’ culminated in him suffering a similar fate to Junnosuke and being cut up in an attack of army machetes. As the BOJ’s balance sheet crossed 100% of GDP, there could be no turning back, the road to conflict had been primed by the BOJ’s swollen balance sheet and the money that had flooded into the military.

A world at war?

The current Bank of Japan’s balance sheet has now again crossed that fabled 100% of GDP and it is getting close to owning 45% of outstanding government bonds. There is no end in sight with the BOJ buying $60 billion a month of government debt. At this current pace the modern BOJ will by 2019 be the proud owner of 60% of the local bond market. There is no longer a market price for a Japanese Government Bond, it is an asset whose price is set by the BOJ. The key difference between today and the 1930s is that Japan now has an open capital account, therefore the only untethered market price is the currency. The Yen’s continued devaluation will be deep and comprehensive, while Japanese equities will continue to rise, adjusting to the currency loss.

But there is an even darker side to the actions of the BOJ and its central bank brethren. Central banks continue to act as the enablers to their respective governments. They provide funding that papers over the underlying social anxiety, delaying our much needed dialogue.

When historians look back and see the cavalier balance sheets of the central banks they would rightly assume there was a world war going on as every central bank balance sheet is now approaching or exceeding levels not seen since 1945. However, the worrying truth is that there are no external enemies to overcome; the central bankers are only maintaining the growth trajectory that we demand.   

The age of sloganeers

The current social contract is mired in the quicksand of global finance. It is being kept alive by the corpulent balance sheets of central banks, who do their government’s bidding so that the politicians do not have to put unpleasant choices in front of their electorates. This cowardly behaviour gives rise to slogans and sloganeers, who provide familiar but false checklists of remedies. “Take bank control”…”America First”…”One Belt, One Road”…”Ein Volk, ein Reich, ein Fuhrer”…”One Man - One Kill”.

Central banks are currently furnishing the excess credit that, in the past, has been followed by an orgy of blood.

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Honest Sam's picture

Ah, but eat enough spinach and blood clots quickly.

JRobby's picture

Vitamin K can't fix this one

BennyBoy's picture

 

Gee, I can hardly wait until Iran and North Korea get an official Rothschild central bank to participate in this blood bath.

Start bombing those 2 immediately, make up reasons why later.

Hans-Zandvliet's picture

Typical gringo stupidity: shoot first, ask questions later.

NK would do the whole world a great favour if they would test their hydrogen bomb over Washington.

Paul Kersey's picture

And meanwhile, the Central Banks' darling, Wilbur Ross, who spent 24 years perfecting his money changing at N.M. Rothschild & Sons, just can't stop his cheating ways. Trump's Secretary of Commerce, according to a Forbes report, "left more than $2 billion in assets off his financial disclosure forms — moving them into trusts.”

"According to Forbes, Ross was expected to disclose approximately $3.7 billion in assets before his Senate hearings, but prior to being appointed to head up Commerce, the businessman shifted billions to his family in such a manner that trust experts said he should have resulted in him paying gift taxes of $800 million or more."

Once a gonif, always a gonif. In the Trump Administration, if the House of Rothschild doesn't cheat commoners, then the Goldmanites will.

XBroker1's picture

What is this spinach you speak of?

GunnerySgtHartman's picture

Hopefully, that orgy of blood will start in the Eccles Building.

Cynicles II's picture

Central Banks have been the cause of most wars and other military activites where the US has been involved.

Ghordius's picture

over 5 years here and I am still surprised

"Central Banks" = FED
is used here at the same time and meaning the same as
Central Banks" = all central banks of the world

likewise, "the world = the US and "the West = the US

anyway, the article isn't about history. CB printing is more often then not followed by inflation.... period

South America, Zimbabwe, any period in Europe, and so on

Rapunzal's picture

I'm still wondering why are you here, you really had with most of your post nothing to contribute. Defending useless child molesting EU bureaucrats.
Defending central bankers and their Fiat scam. What else ? Why don't you contribute to CNN, that's more your level of intelligence.

malek's picture

"clueless central bankers"
Sorry, but from a certain intelligence level on that argument becomes invalid.

Probable Deniability is much more likely.

The Wizard's picture

They are all living in a Keynesian world. Not much more to say.

fbazzrea's picture

i'm with Malek on this... Keynesian is merely a cover for complicity in their role to enslave the world with a debt-based currency.

End the Fed!

GreatUncle's picture

In order ... the mandrake mechanism is Keynes just not formalised and was being used for a long time before.

1913 the FED formed to keep those already running the show in power and entitlement.

Keynesian economics was adopted not to enslave you but for those running the show to stay in power and entitlement.

Dropping the gold standard again not to enslave you but for those running the show to ... yep you got it stay in power and entitlement.

Adopted 2008 policy ... yeah need I say more ... for them to stay in power once again power and entitlement.

**** NOW WATCH THIS ***

If any one group is allowed to adopt policies that keep them in power and entitlement if you are not part of that club and in anything ... then you become the slave.

All economic policies of bank leverage etc. yep you are slave forced to carry a debt around your neck like a yoke to keep you this way.

**** REMOVING ANY OF THE POLICIES NOW ****

Wrecks the whole system so either you are prepared to accept unquestionable atrocities and horror to sort this or you remain a slave while they keep their power and entitlement over you.

GAME OVER.

 

 

fbazzrea's picture

i'm prepared to accept unquestionable atrocities and horror.

the alternative is slow death by 1000 cuts. and the bastards would continue to get away with their global domination scheme.

btw, don't mean to be a smartass but you didn't say anything i didn't already know. but thanks!

NoDebt's picture

"The first name on their death list was Inoue Junnosuke, a former Finance Minister, an austerity advocate and former governor of the Bank of Japan (BOJ); he was shot as he visited a nursery school. The next name was Dan Takuma, head of the Mitsui Group, the Japanese Goldman Sachs; he was shot in front of his office in the fashionable Nihonbashi district."

I'm telling this one to my kids as a bedtime story tonight....

"So, kids, what's the moral of this story?"

"Don't be a Keynesian, Dad!"

"That's my boys.  I love you.  Good night."

 

Ghordius's picture

austerity advocate... = keynesian?

oh, damn. that's another of your tongue-in-cheek "reverse" jokes. does your sarcasm/irony meter not melt, after a few hours? mine would

MrSteve's picture

What is more ironic than an orgy of blood? That's a horribly mixed metaphor, a dyspeptic disgorging of wrongful headline-eering. Massacre is the word, not orgy. Massacre, you heard it here second.

Giant Meteor's picture

He was going for the Wes Craven effect. Orgy of blood sounded much better than massacre of blood. Sometimes ya just have to go for it, you know, throw it out there with literary gusto.

Hell, it gave me the shivers and I'm not even a primary dealer !

The Ingenious Gentleman's picture

Don't forget Finance Minister Takahashi Korekiyo:

...After the men smashed their way into the compound, confused servants led Nakahashi and Lt. Kanji Nakajima to Takahashi's bedroom. There Nakahashi shot the sleeping Takahashi with his pistol while Nakajima slashed him with his sword. Takahashi died without waking.

https://en.wikipedia.org/wiki/February_26_Incident#Takahashi_Korekiyo

Librarian's picture

So it will be like a 2004 B-rated erotic horror movie?

That's what most of us had already assumed.

Zero-Hegemon's picture

Wienstein was casting the female lead over in Europe as the article was written

espirit's picture

So who do you think will be cast as the 'Hot, young Janet Yellen' ?

/s

Puke...

Anderson Coopers Gerbil's picture

Rosie with a blond bowl cut wig

espirit's picture

Pass the eyebleach please.

Scrubb that, I'm going for the mindbleach.

Back later.

JRobby's picture

We are already there. "There will be blood" quite simply because we are beyond the point of no return.

shizzledizzle's picture

"One bank","One Trader" and a "Retired Green Beret" walk into a bar... 

small axe's picture

well, that made my day.

Hey Ben, over here!

Disgruntled Goat's picture

Or, they simply give away free money, as is the case in "Interest Paid on Excess Reserves" held with The Fed. Interest is paid on any money that the banks hold on deposit with the Fed..... something that startted as an energency procedure, but now has continued for 10 years.... foreign banks as well.... millions paid out each year..... just more corruption on top of corruption on top of corruption.....

moorewasthebestbond's picture

I'm not done talking about the orgy on Wesinstein's casting couch.

Erwin643's picture

Speaking of which...

QUIT JERKING OFF TO ROGER MOORE!!! Jesus!

Or at least get another login name.

breaktwister's picture

The only blood will be that of the serf and our families. The masses are never going to wake up so someone needs to start organising hit squads for these scum.

Zero-Hegemon's picture

There's going to be an orgy? <rubbing hands>

turkey george palmer's picture

Wat.... Is the problem. We owe it to ourselves.  No one will foreclose. Right?

Yen Cross's picture

   Is this the one of the best E-Trade commercials ever?  E*TRADE COMMERCIAL – Yacht Life - YouTube

  BTFCBput

  The 13 MONTH RSI on the DJ30 is 82.36. The three MONTH is 98.70!  This shitshow is beyond absurd.

1 Alabama's picture

The fact that there is a shit show at all, is absurd

espirit's picture

I've made the realization that cryptos are here to stay, and that pensions will be converted because that asset class will cease to exist as it's already been malinvested.

The smart money will be protected.

Annnd it's gone....

GreatUncle's picture

The problem is if they try and absorb the malinvestment into crypto currency that will be fucked from the get-go.

The real problem is trying to defer the reaility of a collapsed system and just moving it into something else and will not evade the reality.

Then explain to people why all those who profited from malinvestment should not pay for the losses?

Good luck on that last point an angry mob is not going to be pacified ...hence 2008 was to stop the angry mob.

wdg's picture

"The powers of financial capitalism had [a] far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert by secret agreements arrived at in frequent private meetings and conferences." 
  -- Quote from Caroll Quigley's Tragedy and HopeChapter 20

BiggestLoser's picture

These meetings have been brief lately.

1st BIS bankster: How's it going?

2nd BIS bankster: According to plan. Adjourned. Let's eat.

medium giraffe's picture

1st BIS bankster: Ok, but make it quick, I have a blood orgy to get to.

Omega_Man's picture

my thoughts exactly

Rebelrebel7's picture

They are killing off the wealthy, whose assets they can steal, and the truth tellers, leaving a world of idiots and compulsive liars,  dominated by brutal psychopaths.

Some victory. No thanks. Enjoy being engulfed by  flames and tridents.

gregga777's picture

I sympathize 100% with anyone who kills a banking gangster or a Criminal Crony Capitalist. By the way, the CCC (Criminal Crony Capitalist) gangsters were called Fascists in the 1930's.

Erwin643's picture

"An orgy of blood!" 

LOL! How fucking dramatic.

Whatever. What a BS article.

We're gonna have an orgy of blood, regardless, in the near future, and not necessarily from Central Banks.

If Yellowstone blows and we get a volcanic winter, say goodbye to growing food in the Northern Hemisphere.

If the rest of the methane in Siberia blows all at once (around 50 gigatons), then global average temperature skyrockets, and the same thing occurs.

Have a nice day.