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Art Cashin On The Clandestine War Among Central Banks

Tyler Durden's picture





 

Nothing dramatic here, but the Chairman of the fermentation committee just has that unique flair in explaining things so simply, even an economics Ph.D., a caveman, or the other kind of 'Chairman', would understand...

The Not So Clandestine War Among The Central Banks - Back in Philosophy class in the 5th grade, the instructor in Epistemology used to have an interesting parable on problems of perception.

 

The thesis went something like this: Suppose you are an alien and have been told about the game of chess. Due to a technicality, however, your equipment would only allow you to see one square on the board. Over the course of the game any, or all, the pieces might arrive on your square.

 

You might see a Knight or a Bishop; a Rook or a Queen or a Pawn, but you would never know where it had come from nor where it had gone when it disappeared. You never got quite enough information to envision the entire board or the concept of the game.

 

I was reminded of the parable as I have watched the actions of some key central banks over the last few years.

 

According to the financial media, each central bank is easing aggressively to serve a need of the area it serves.

 

The Fed is easing to help employment and the housing market in the U.S. The ECB is easing to help it banks, sinking under sovereign debt problems. The People’s Bank of China is easing to avoid a hard landing. The Bank of Japan is easing to restart an economy that has been dormant for two decades.

 

Those may be the official lines but cynics think there may be more to the game than is seen through this telescope. Cynics think it’s all about the currencies.

 

The thinking is that each bank would like to see its currency weaken to make its exports more attractive. It doesn’t stop there. With Europe being China’s biggest trade partner, some believe the PBOC is the bid under the Euro at 1:30, keeping the Euro strong enough to make Chinese goods attractive.

 

The currency influences of the other central banks may be a bit more subtle but no less effective or intense. No trade war yet but lots of drilling and marching.

Actually that is not true. from Mercopress: "US and EU considering WTO actions against Argentine ‘protectionist practices"

The US and forty countries which formalized a joint statement before the World Trade Organization complaining about Argentina’s trade restrictions are considering moving a step further and begin a “disputes settlement” process which could lead to an open condemnation if the administration of President Cristina Kirchner does not lift the protectionist network.

 

According to Buenos Aires daily Clarin quoting WTO sources in Geneva, “expectations are that it will be the US that presents the “disputes settlement” process since the White House was the main sponsor of the joint statement. The process could end with a formal condemnation of Argentina opening the way for commercial reprisals”.

 

In the March joint statement presented by the US and forty other leading countries the main complaints against Argentina included the non automatic licences system; the previous sworn statement registry to obtain the approval of an imports operation and the policy forcing companies to apply the ‘dollar-to-dollar’ mechanism which means they have to export a dollar for each dollar import.

 

Once the disputes settlement begins there is a period of consultations in which in this case Argentina must prove it has not infringed WTO rules, and if no agreement is reached a three member panel is named, chosen by the litigants or WTO Director General Pascal Lamy.

Time for some blogger-cum-budding author (which is about 99% of all) to write a currency wars sequel: Trade Wars: The Final Frontier.

 


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Wed, 04/18/2012 - 09:48 | Link to Comment gjp
gjp's picture

Who cares about all that.  Europe faces the long-extinct-on-this-side-of-the-pond bond vigilantes while America celebrates by buying AAPL, AMZN, and SBUX.  Hallelujah!

Wed, 04/18/2012 - 09:54 | Link to Comment Thomas
Thomas's picture

Philosophy class in fifth grade? I am outgunned. I can't even see a whole square of the chess board.

Wed, 04/18/2012 - 09:56 | Link to Comment francis_sawyer
francis_sawyer's picture

beat me to it... WTF?

Wed, 04/18/2012 - 12:36 | Link to Comment johnu1978
johnu1978's picture

It's getting worse by the day!!!

 

-John
Edible Plant Tours - Bowmaking Classes
http://www.heartrootnatureconnection.com

Wed, 04/18/2012 - 10:06 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

You missed out then.  Our public school encourage paste eating at the 5th grade level.  My daughter aced that bitch.

Wed, 04/18/2012 - 15:39 | Link to Comment PianoRacer
PianoRacer's picture

I feel so sorry for your daugher that her father has chosen to subject her to state prisons...

Wed, 04/18/2012 - 10:13 | Link to Comment Raynja
Raynja's picture

He is just dating himself, they stopped teaching how to think and started teaching what to think a long time ago.

Wed, 04/18/2012 - 11:37 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

My school offered face painting in the 7th grade.  This is why I read Plato at home.

Wed, 04/18/2012 - 10:02 | Link to Comment Nukular Freedum
Nukular Freedum's picture

Yes they were all killed off by the bond- vigilante vigilantes at the Fed. Tough place, Dodge.

Wed, 04/18/2012 - 09:49 | Link to Comment Eireann go Brach
Eireann go Brach's picture

Maradona for President! It now deserves a true lunatic to drive it over the cliff!

Wed, 04/18/2012 - 10:03 | Link to Comment Dr. Engali
Dr. Engali's picture

Madonna can't be run for president. She is currently on tour. But my guess is she would be just as capable as any of those ather clowns. At least she knows how to make money.

Wed, 04/18/2012 - 10:05 | Link to Comment machineh
machineh's picture

Madonna and Maradona are the same person?

* claps hand to forehead *

Now that you mention it, I've never seen them in public together ...

Wed, 04/18/2012 - 10:10 | Link to Comment Dull Which
Dull Which's picture

Maradonna has bigger boobs

I said bigger, not necessarily better....

Wed, 04/18/2012 - 10:16 | Link to Comment Dr. Engali
Dr. Engali's picture

Yeah but Madonna could poke an eye out with hers.

Wed, 04/18/2012 - 10:28 | Link to Comment ihedgemyhedges
ihedgemyhedges's picture

Now you're thinking of Belladonna in those scenes with Peter North...................

Wed, 04/18/2012 - 14:36 | Link to Comment roadhazard
roadhazard's picture

I have no idea what you are talking about.

Wed, 04/18/2012 - 11:39 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

Dig up Eva Peron, prop her up and have Kirschner use her as a talking dummy.  The Argentinians will buy it.  Then wooden dummies as world leaders will become all the rage.  And matches will be illegal.

Wed, 04/18/2012 - 17:17 | Link to Comment AchtungAffen
AchtungAffen's picture

Argies will believe anything as long as you can paint a bogeyman that reminds them of the military Junta.

Wed, 04/18/2012 - 10:17 | Link to Comment eddiebe
eddiebe's picture

You mean to say she could do worse than our current commander in chief?

Wed, 04/18/2012 - 09:50 | Link to Comment SheepDog-One
SheepDog-One's picture

'The FED is 'easing' to help the U.S. housing markets and unemployment'....LOL sure, have another drink Art.

Wed, 04/18/2012 - 09:58 | Link to Comment francis_sawyer
francis_sawyer's picture

Dual mandate:

1. Print

2. Print at mega fucking hyper warp speed

Wed, 04/18/2012 - 10:01 | Link to Comment t_kAyk
t_kAyk's picture

'They've gone into PLAID'

http://www.youtube.com/watch?v=NP6DXoNKITc 

Wed, 04/18/2012 - 14:59 | Link to Comment Ultros88
Ultros88's picture

It doesn't matter how much is printed provided the additional money supply is contained and does not find its way to general consumer goods or their industrial precursors. If Benny Boy printed $5 trillion and gave it all to say... me, then there would be no general inflation as a result. Any inflation that occurs will only be in those goods demanded by the recipients of the added dinero, and so on down the pyramid from there. If it all gets pooled up and doesn't move then it really doesn't matter how much is printed. The broad effects of hyperinflation can and do only occur when nominal holdings increase on a widespread basis. Keep the monies in some 'local' region and there is no issue or chance for hyperinflation.

Wed, 04/18/2012 - 17:26 | Link to Comment hoos bin pharteen
hoos bin pharteen's picture

There is no such thing as "containment."  Even black holes leak.  The money sloshing around to cover broken, derivitized instruments can and always will spill over into the real world. 

The only thing that delays hyperinflation is imperfect knowledge about who leaks said over-printed capital at what rate.  The more information that gets out, the faster the initial recipients of said capital use it to pay salaries, bonuses and acquire hard assets in anticipation of collapse. 

Stagnant wages don't matter at that point, except as a predictor of whether someone becomes a pitchfork-wielder in the inevitable conflagration. 

On a long enough timeline...

Wed, 04/18/2012 - 11:10 | Link to Comment alexwest
alexwest's picture

thanks pal.. you were first to catch..

alx

Wed, 04/18/2012 - 09:49 | Link to Comment Eireann go Brach
Eireann go Brach's picture

Bloop de squeak, blobby boo who bababoohey!

Wed, 04/18/2012 - 10:10 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

So there was only one thing that I could do...

..that was ding a ding dang my dang a long ling long.

Wed, 04/18/2012 - 11:01 | Link to Comment mathdock
mathdock's picture

I thought you were going with ding dang walla walla bing bang....

Dang!

Wed, 04/18/2012 - 09:49 | Link to Comment manhunter
manhunter's picture

So Europe is China's biggest trade partner. Europe doesn't even run much of a trade deficit (sometimes a surplus). And the euro currency has a mysterious bid, despite all the bad press.

Maybe things aren't so bad in Europe as some think. Maybe Europe is winning the clandestine war.

Wed, 04/18/2012 - 09:50 | Link to Comment SheepDog-One
SheepDog-One's picture

Yea? Well I wouldnt bet on it myself.

Wed, 04/18/2012 - 10:00 | Link to Comment youngman
youngman's picture

I am amazed how "strong" the Euro has stayed....its not right

Wed, 04/18/2012 - 10:24 | Link to Comment Dr. Engali
Dr. Engali's picture

  When you say "strong" what is your measuring stick? Another basket of shit currencies? We are as fucked up as Europe. Besides there is nothing that is "right" with any of these markets.

Wed, 04/18/2012 - 13:31 | Link to Comment moonshadow
moonshadow's picture

pick a horse in the glue factory...even the swiss horse voluntarily walked in to hang out with his buddies there!

Wed, 04/18/2012 - 11:15 | Link to Comment alexwest
alexwest's picture

aha.. you are not manhunter.. you are TRURH CATCHER..

EXACTLY.. NOT WHOLE EUROPE IS BAD... north europe/ protestant europe is doing pretty fine... average gov debt, mostly positive balance of paymets,, average citizen is for sure likes to save... people are very frugal..

N. EUROPE WILL GET BY AS IT HAS BEEN FOR THOUSANDS YEARS..

here in USA .. its totally collapse.. fed gov/ local gov/ citizens are all fucked up.. all are upto eyeballs into debt.. so I guess this 200 years experiment will end sonner or later...

so sad
alx

Wed, 04/18/2012 - 13:25 | Link to Comment Clowns on Acid
Clowns on Acid's picture

alex - so you are saying that Germany will leave the EUR and write off all the bad debt from the PIGS?

If the US goes down....Europe will not be far behind, or if europe goes down...US will not be far behind...

 

Wed, 04/18/2012 - 09:51 | Link to Comment HD
HD's picture

"Cynics think it’s all about the currencies"

Cynics KNOW it’s all about the currencies.

Central banks can print all they like, but have little control over where the money ends up.

Wed, 04/18/2012 - 09:52 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Open up that perspective just a bit more and one might see that there is a coordinated effort among all the central banks to keep the Ponzi going just a little bit longer.

To think that the various central banks are competing with each other when they are all dependent for their very survival upon the same financial/social system to function is childish. They are in cahoots with each other, but maintain their own distinct flavors and political orientations in order to maintain plausible deniability.

Wed, 04/18/2012 - 09:54 | Link to Comment SheepDog-One
SheepDog-One's picture

Yeay, but then when you ask why theyre keeping it going a little bit longer, theres no clear answer at all, wheres the benefit in that unless its simply about ensuring all currencies are totaly destroyed.

Wed, 04/18/2012 - 10:03 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

When it can no longer be kept afloat, take it down and rebuild it to suit your needs.

Remember, never waste a crisis. Particularly one you created all by your big boy self.

Wed, 04/18/2012 - 10:57 | Link to Comment SheepDog-One
SheepDog-One's picture

See but my point is, they could do that right now, or could have done it 3 years ago for that matter, and who would have done anything against it? No one. This is about the same as telling your wife she's crazy and youre not cheating when she has a stack of pictures of you with another chick. Its just delusional.

Wed, 04/18/2012 - 11:06 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

I agree.

But who is the one who is delusional here? Those who promote the insanity or those who believe in (or at least live and prosper within) the insanity?

Or maybe those like us who don't believe in it....yet go along with it because we have convinced ourselves we are powerless? Isn't that what the delusions is all about, creating the sense of powerlessness (combined with some sugar and honey) in the population so they do as they are told?

I would need to amplify on this thought. But you get my drift.

Wed, 04/18/2012 - 11:30 | Link to Comment john39
john39's picture

the masses need to be sufficienty frightened before they will accept what the banker cabal has in mind for the next stage.  Sure the masses are largely asleep, but if the bankers move too quickly, the plan will not work.  It is all carefully choreographed.

Wed, 04/18/2012 - 10:24 | Link to Comment Chief KnocAHoma
Chief KnocAHoma's picture

Yo SheepDog, watch your ass!

Dog... it's what's for dinner!

http://annoyanidiot.blogspot.com/

Wed, 04/18/2012 - 11:00 | Link to Comment mick_richfield
mick_richfield's picture

Who tells the central banks what to do?  What is at *their* center?

I can't believe the CBs are the top of the pyramid, and it seems obvious that their respective nations' political leaders are just entertainment for the childrens' tables.

The CBs are clearly coordinated, so I expect there is a coordinator, and I sure don't think it's Bernanke. 

In my model of reality, the more famous a man is, the less real power he has.  So Bernanke, whose name everybody knows, has less real power than less famous bankers -- and much less real power than names we *never* hear.

 

 

Wed, 04/18/2012 - 11:28 | Link to Comment czarangelus
czarangelus's picture

Rothschilds? Reptilians? Satan?

Wed, 04/18/2012 - 11:22 | Link to Comment RunningMan
RunningMan's picture

Really CD? I think they want to keep it going, but that it isn't necessarily a formal coordination. Ego-centricity is way too big an issue for these folks to all just get along and make nice. It plays out exactly the same way - all the currencies bob around as the money prints to fill the holes of destroyed assets.

But behind the scenes is some serious game theory. Coincidence that forty countries plus US go after Argentina to play nice on trade and then they nationalize an oil company? China broadening the currency range, but all optics, not substantive. Fed involved in Eurozone solution, but not (yet) propping individual countries since Spain seems doomed. Gold manipulated six ways to Sunday... The list goes on. This all seems like a big conspiracy, but I see desperate and uncoordinated actions of individual groups.

The plan may actually work, with everyone declaring victory despite the ongoing challenges, except the downside risk is massive. You can't coordinate every atom in the system as a central banker, you can only set policies to influence the atoms and molecules to behave a certain way. We've got no way to earn interest on savings, but people are either too poor to save, or afraid to invest. This is the trigger for the next event. Our current liquidity trap blows up when either one country goes rogue and decides to look out for #1, and people fear their cash is worthless and start panic spending on real assets (commodities, real estate, etc.). The apparent coordination will be revealed as a fragile truce on the road to complete economic war.

Spend it if you've got it.

Wed, 04/18/2012 - 13:34 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

I do not deny that there is "competition" among the CBs. And I am certain that the so-called CB "heads" might actually think they are in control. But the primary purpose for their existence is to serve their masters, which on the surface appears to be the banks and financial houses.

I suspect that there are deeper tentacles working behind the scenes. The people whom we think control the system are simply pawns. The real power, the true hands that control the power levers, never show themselves in public.

Never.

Wed, 04/18/2012 - 09:54 | Link to Comment Dr. Engali
Dr. Engali's picture

I disagree to a certain extent Art. I think it's east vs west when it comes to currencies. The U.S and Europe are clearly working in tandum when it comes to easing trying to keep the scam going. I don't think that each central bank is "easing aggressively to serve a need of the area it serves".  The only area they serve are the bankers.

Wed, 04/18/2012 - 10:14 | Link to Comment Rainman
Rainman's picture

Banksters are re-classifying their growing inventory of unsecured shit paper

http://www.bloomberg.com/news/2012-04-18/bank-of-america-faces-bad-home-equity-loans-mortgages.html

Wed, 04/18/2012 - 10:17 | Link to Comment Dr. Engali
Dr. Engali's picture

The only way to stay solvent in the U.S.S.A is to change the rules whenever needed.

Wed, 04/18/2012 - 10:32 | Link to Comment Amagnonx
Amagnonx's picture

I am not convinced that China isn't just another puppet state, Japan certainly is.  The US, EU, CHina and Japan central banks I think are all aligned, possibly Russia also - there are not many nations resisting this process of rebalancing the world order - I think the banksters are simply rebalancing - use of the names of states is essentially confusing.

When you talk of banks and who is in control - you need to divide them into two groups - those aligned with the banksters, and those not aligned.  I think China is aligned.

Wed, 04/18/2012 - 10:39 | Link to Comment Dr. Engali
Dr. Engali's picture

I disagree. Japan is clearly a  U.S vassal state, but I think that is rapidly changing as they see the hand writing on the wall. The U.S is clearlly losing influence in the world and China has it's own ambitions. That is apparent in the fact that they step in strategically where they see weakness.

Wed, 04/18/2012 - 11:40 | Link to Comment WonderDawg
WonderDawg's picture

And they've got Sun Tzu going for them, which is nice...

Sat, 04/21/2012 - 00:30 | Link to Comment Amagnonx
Amagnonx's picture

The problem is in the confusion of using names of nations - we need to focus on three interests, the govts of certain states, banksters and the peoples interests.

 

It should NEVER be assumed that the govt of any state is interested in the increasing wealth of its citizens - or in peace, or in maintaining the current economic system.

 

It appears the banksters wish cause a massive economic disaster - the great suffering brought about by this will allow them to introduce radical changes - improving their long term goals and ambitions in terms of more centralization of power, and less freedom for the people.  They directly control the govts of many nations - including almost all of the EU, the US, Japan, Israel, Australia, Canada, South Africa to name some - their influence and control through Africa and South America I am not sure of.

 

THe small group of nations who directly oppose them as states is very small - Iran, North Korea, Venuzuela, Iceland are the prominent ones - the question is - in which bloc are the govts of Russia, China and India (and Brazil) - are they aligned with the banksters?  To me the answer is not really known - I think they are probably aligned with the banksters - this is a hammer and anvil effect, so the BRIC's people are simply being used to destroy the western world.

 

The govt of China appears to be helping the decline of the US by continuing to borrow - in fact it seems that is its policy.  Ultimately this will result in losses for China the nation (but remember if these guys are working for the banksters, they dont care if China gets turned into radioactive dust).

 

TO me the question is an open one.

Wed, 04/18/2012 - 10:47 | Link to Comment rosiescenario
rosiescenario's picture

.....and Argentina is not, so its off to the wood shed for them....get the 're-aligned'.

 

Perhaps it is not one country against another here, its just all the world bankstas vs. the population at large???

Wed, 04/18/2012 - 09:59 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

The work of Ha Joon Chang is finally catching up with the populace at large. The WTO, along with the IMF and World Bank, was the completion of the 'Unholy Trinity'. Nice to see the old lies no longer work.

A little jab at Rickards I see...

Wed, 04/18/2012 - 09:58 | Link to Comment HD
HD's picture

http://www.cnbc.com/id/47084924

 

 

"As federal regulators put the finishing touches on an overhaul of the $700 trillion derivatives market, a major provision has been tempered in the face of industry pressure. On Wednesday, the Securities and Exchange Commission and the Commodity Futures Trading Commission are expected to approve a rule that would exempt broad swaths of energy companies, hedge funds and banks from oversight."

The mind boggles.

Wed, 04/18/2012 - 10:48 | Link to Comment rosiescenario
rosiescenario's picture

Moot point whether they are exempt or not.....rules are not enforced unless it is against a small defenseless player...one not in the 'inner circle of trust'.....

Wed, 04/18/2012 - 09:58 | Link to Comment WhyDoesItHurtWh...
WhyDoesItHurtWhen iPee's picture

 

 

"Cynics think it’s all about the currencies"

WOW..........DUHHH

Wed, 04/18/2012 - 10:00 | Link to Comment Treeplanter
Treeplanter's picture

What happened to that bounce?  Must be time to look at charts.

Wed, 04/18/2012 - 10:29 | Link to Comment scatterbrains
scatterbrains's picture

Charts say 1200ish SPX  based on where our overlords are probably trying to push UGA.. or so I'm thinking.

 

http://fiatflaws.blogspot.com/

Wed, 04/18/2012 - 10:59 | Link to Comment SheepDog-One
SheepDog-One's picture

WTF charts are now completely useless day to day.

Wed, 04/18/2012 - 13:49 | Link to Comment scatterbrains
scatterbrains's picture

Well this is true but they are still good for visualizing all the fed manipulation.  They have to crush the energy "speculators" going into the elections.  I like to use UGA as a gauge of how deep they may be able to push things down. Everything will correlate to some degree off of the attack. Overlaying SPX on UGA suggest it could get knifed down to that 1200ish area if only intraday.

Wed, 04/18/2012 - 10:08 | Link to Comment bigbucksr
bigbucksr's picture

the war amongst central banks?  you have it all wrong, Art......the central banks are all working together on the same side!

Wed, 04/18/2012 - 10:09 | Link to Comment Bartanist
Bartanist's picture

There is the world central banking conglomerate and then there are likely to be a few nonaligned states, who think they can go alone. My guess is that the coordinated world central government puts financial pressure, economic pressure and then military pressure on them as they so decide, depending on the situation.

The bankers and their overlords apparently believe that regardless of what it propagandized in the individual countries, they know best and will make make decisions for the entire world.

I see no evidence to believe that anyone at the highest levels in any of the countries are warring amongst themselves, YET! That supposedly comes later.

Wed, 04/18/2012 - 10:09 | Link to Comment misterc
misterc's picture

Some anecdotal observations from "solid" Germany.
I went around Berlin today and what did I see? Real estate agencies popping up in the inner city, like were there were second hand shops or hair salons a few years ago. Windows full of ads for properties, I had a look. Oh boy, what did I have to see? Three room apartment in a middle class neighbourhood going for 499.000,- EUR (plus 5% tax plus commission plus notary commission plus land register charge).

And I read that 30% of all cars are now bought by the dealers themselves. Channel stuffing anyone?

Really, really fishy. I'd get out of German Bunds right now. This is a recipe for desaster.

 

Wed, 04/18/2012 - 10:35 | Link to Comment Bam_Man
Bam_Man's picture

Now it's time for a German housing bubble.

Yours is the only major country in the EU where the population isn't up to its eyeballs in debt as a result of a housing mania.

Will the people fall for it?

Wed, 04/18/2012 - 11:32 | Link to Comment misterc
misterc's picture

Yes, they will. We are no different from anyone else. Animal spirits.

Wed, 04/18/2012 - 11:21 | Link to Comment alexwest
alexwest's picture

yeah.. its called taxi driver report.. google it..

hey buddy.. PROP market in Berlin was stagnant for years... google why..

you are an american.. right? you even dont accept that houses are jsut commodities , and DONT HAVE TO GO UP ALL THE TIME..

you seems already forgot what happened in USa after 2001-2007 housing bubble..

and btw, you example 'or 499.000,- EUR' DONT MEAN A FUCKIGN THINKG..why ?
nominal prices dont matter.. its all relative to average income..

if your income is EURO 1 mmln , so its cheap .. if you are bum,, its fucking priceless..

so try to think before blubbering

alx

Wed, 04/18/2012 - 12:08 | Link to Comment misterc
misterc's picture

So, half a million for a three bedroom-condo in a middleclass area seems fairly priced to you?
You working for Fannie / Freddie?

Wed, 04/18/2012 - 10:14 | Link to Comment Angus195
Angus195's picture

I am not sure I agree.  James Dines discusses this at length in the book Goldbug and his articles going back to the 1990s predicted a currency 'race to the bottom' when nations would see as a way to inflate their failing fiat based economic systems by focusing on increasing exports.  China and Japan print money to purchase US dollars.  This causes China and Japan's currency to go down in value (increasing their exports) while at the same time increasing the value of the US dollar - but also destroying US exports and thus the US job/manufacturing base.  It this not exactly what has been happening over the past 20 years?  It is a form of war and the US's strategy was in all respects entirely 'short sighted.'  China is using very long term thinking.  Japan has made some monetary missteps and has suffered as a result.

Wed, 04/18/2012 - 10:14 | Link to Comment wang (not verified)
Wed, 04/18/2012 - 10:26 | Link to Comment Downtoolong
Downtoolong's picture

What if you can see the entire chess board and you do understand the game, but, you also realize you’re just a pawn sitting in your square, and there are rarely any pawns left at the end of the game?

Wed, 04/18/2012 - 10:26 | Link to Comment eddiebe
eddiebe's picture

 Yup, it's the nag(s) in the glue factory thing. Got gold?

Wed, 04/18/2012 - 10:44 | Link to Comment New American Re...
New American Revolution's picture

You don't think that it might occur to Art, that the primary central banks are working in collusion, each taking their turn and opening the spigot, then closing while the other picks up the slack.   This would give credence to their "ganging up", on a maverick like Argentina, who is trying to upset their apple cart before they trash Argentina's apple cart.   It all depends upon your perspective, Art.   Who are you working for?

Wed, 04/18/2012 - 10:47 | Link to Comment eddiebe
eddiebe's picture

Looks to me like China is playing along for now and are biding their time. It also must be kept in mind that the people in power in China are in it for themselves and are only acting in the peoples or the people of chinas interest as much as they have to to stay in power.

Wed, 04/18/2012 - 10:57 | Link to Comment Stuck on Zero
Stuck on Zero's picture

Can someone give me one instance where the money central banks are printing money for the middle class?  Me thinks central banks are printing money for the billionaires. 

Wed, 04/18/2012 - 11:00 | Link to Comment SheepDog-One
SheepDog-One's picture

No WAY! You mean the bailouts and all these rescues and stimulus were only for the billionaires? Seems I remember someone saying that about 4 years ago...oh yea it was me.

Wed, 04/18/2012 - 11:08 | Link to Comment Benjamin Glutton
Benjamin Glutton's picture

this guy needs to read Zero Hedge occasionally while fermenting. Is he really trying to suggest CB's are not working together to expand monopolistic control of wealth through money printing?

 

is that a stiff drink he's holding or just water?

 

 

Wed, 04/18/2012 - 13:16 | Link to Comment Clowns on Acid
Clowns on Acid's picture

Ben - What Cashin is saying is that the central banks are working in their self interest (see China example).

Sometimes that self interest works to expand monopolistic control through money printing, but it is for the monopolistic control of their individual CBs.

Both China and the US are propping up the EUR to maintain tarde flows with Europe (in their individual self interest).

Cashin's salient comment was that the MSM has not been reporting the US propping up (via FX swaps...and whoi knows what else), and few have mentioned China's CB's involvement in the propping up of the EUR,.

I don't see where the confusion is.

Wed, 04/18/2012 - 11:09 | Link to Comment alexwest
alexwest's picture

# According to the financial media, each central bank is easing aggressively to serve a need of the area it serves.
The Fed is easing to help employment and the housing market in the U.S
#

is he an idiot? ow what?

sometimes I read that knd of bullshit i wonder, does person even understand what he/she wrote..

SO MR OLD FART, FEDs is helping labor/ housing,, what are results?
did it help?

no wonder we are so #ucked up..

alx

Wed, 04/18/2012 - 13:11 | Link to Comment Clowns on Acid
Clowns on Acid's picture

alex - Cashin did not say that Fed easing was in fact helping, he was merely stating the Fed's (and LSMs) line of BS.

Don't blame the messenger, but with Cashin read in between the messenger's lines.

Cashin is great, and has been for a long time, and is getting better....just like a fine wine.

Wed, 04/18/2012 - 11:23 | Link to Comment flyme
flyme's picture

There getting in position for a reset.

Wed, 04/18/2012 - 12:02 | Link to Comment buzzsaw99
buzzsaw99's picture

The "free trade" koolaide is strong in the usa.

Wed, 04/18/2012 - 12:13 | Link to Comment carbonmutant
carbonmutant's picture

Art has access to more squares on the chessboard than the rest of us aliens...

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Nike TN's picture

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