On The Goldman Path To Complete World Domination: Mark Carney On His Way To Head The Bank Of England?

Tyler Durden's picture

Back in November we penned "The Complete And Annotated Guide To The European Bank Run (Or The Final Phase Of Goldman's World Domination Plan)" in which we described what the long-term reality of Europe, not that interrupted by the occasional transitory LTRO cash injection and other stop-gap central bank measure, would look like. And yet there was one piece missing: after Goldman unceremoniously set up its critical plants in Italy via Mario Monti and the ECB via Mario Draghi, one key target of Goldman domination was still missing. The place? Why the center of the entire modern infinitely rehypothecatable financial system of course: England, which may have 1,000x consolidated debt/GDP, but at least it can repledge any asset in perpetuity thus giving the world the impression it is solvent (no wonder AIG, MF Global, and now the CME are scrambling to operate out of there). Which is why we read with little surprise that none other than former Goldmanite, and current head of the Bank of Canada, is on his way to the final frontier: the Bank of England.

From the FT:

Mark Carney, the governor of Canada’s central bank, has been informally approached as a potential candidate to replace Sir Mervyn King as head of the Bank of England in June next year.

 

One of the world’s most respected central bankers, Mr Carney, 47, now heads the Financial Stability Board, which oversees global financial regulation. He was approached recently by a member of the BoE’s court, the largely non-executive body that oversees its activities, according to three people involved in the process.

Far more importantly, Carney was a 13 year veteran of Goldman Sachs, most recently and very appropriately co-head of sovereign risk, which is ironic considering that Goldman had a grand rehearsal for the Greek currency swaps fiasco precisely with Carney at the helm in 1998, when Goldman got into hot water for the first time because while the company was advising Russia it was simultaneously betting against the country's ability to repay its debt. Sounds like yet another man doing the will of god: it is only fair he be promoted to run world banking capital.

More from the FT:

Very rarely are national central banks headed by foreign citizens, with a notable exception being Stanley Fischer, the American appointed as Israel’s central bank governor in 2005. Naming a foreigner as governor of the 318-year-old central bank would break with tradition, although Mr Carney has a British wife, studied at Oxford university, and worked at Goldman Sachs in London early in his career. “As a Canadian national he is a subject of the Queen,” said one supporter. “That is important.”

And most importantly, we can now update the map of Goldman conquests so kindly put together by The Independent last year, from this:

to this:

Is anyone left?

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Bay of Pigs's picture

Yeah, run away from the epic housing collapse before it hits in Canada.

Nice work Mark.

spiral_eyes's picture

On a long enough timeline, the survival rate for everyone (even vampire squid) drops to zero.

SHEEPFUKKER's picture

Planet Dearth.....as in scarcity of intelligent lifeforms. 

Oh regional Indian's picture

Planet Dearth....

Sheep, that needs to go into some hall of fame. Brilliant!

Planet Dearth... Such a sad name!

ori

wang's picture

the epic housing collapse has been a long time coming, any idea what the trigger might be? anyone who exited the CDN market 2 or 3 years ago (thinking the bubble was about to burst) have had their sorry asses handed to them with prices in some markets 30% or 40% higher - not that I don`t think it is going to crater but why and when are the questions

Renfield's picture

It's been China that's held it up this long. As China cools, the property market here and in Aus will continue its collapse (already begun).

http://canadabubble.com/charts/canadian-major-city-housing-price-chart-.html

wang's picture
wang (not verified) Renfield Apr 17, 2012 7:14 PM

I know Van was soft against huge numbers a year ago  but Tor is sizzling with extremely low inventory. Look at some of the secondary and tertiary markets e.g. Winnipeg or Regina imagine a half million for an older ranch in decent hood in an effing frozen turdra.

Renfield's picture

Sorry, I linked the wrong chart. I'll find a better one and update this comment.

Trouble with those charts is they are out of date. Aus and Canada, the "resource" currency countries, experienced the same thing - the downturn began, but was "rescued" by loose gov policy and Chinese bubble money, which is now beginning to peter out. The big picture still remains: as China goes, so goes Canada. (The financing has to come from somewhere.)

ETA:

http://paul.kedrosky.com/archives/2011/10/tracking-the-great-canadian-real-estate-bubble.html

This was the graph I meant to link in the first place. I have too many bookmarks and clicked the wrong one...yeah, I know, try being a little less eager next time, right? It's still a bit out of date but I haven't found a good (i.e., from a reliable source) 2012 chart yet.

I find the Canada Bubble blog a good resource to watch what's going on in the Canadian market:

http://canadabubble.com

Generally speaking, I watch Chinese government policy on speculation, to anticipate what will happen in our housing market. It sure as hell isn't local investment that fuelled this latest leg up in the Canadian and Australian "resource" economy bubbles.

wang's picture
wang (not verified) Renfield Apr 17, 2012 8:12 PM

thanks for that, I have also read Mish and the Greaterfool guy but they have been sooo  wrong for so long that even if it corrects 50% you would be higher than when they were saying the peak has arrived

Careless Whisper's picture

One of the world's most respected central bankers...

There is no such thing as a respected central banker, and why would TD repeat this crap from the controlled Financial Times? What kind of bullshit is this? Oh, and, "Masters of the Eurozone?" Perhaps a better description would be Criminals and Tyrants of the Eurozone.

Oh, and Mister Carney is "a subject of the Queen"? And who is the Queen a subject of? That would be the Lord Mayor of the City of London Corporation, which is a sovereign nation where corporations (mostly banks) get to vote because they are people too.

 

 

palmereldritch's picture

Who better then to helm the bridge of the Mother Ship (aka The Debt Star )?

rocker's picture

Goldman Sachs Rulers of the World.  It is so Sssaaaaaaaaasaddddddddddddddddd.

Western's picture

the Queen is not subject to the lord mayor of london.. lol

Kiwi Pete's picture

No she isn't. To quote from that wikipedia page

'At Temple Bar the Lord Mayor presents the City's pearl-encrusted Sword of State to the Sovereign as a symbol of the latter's overlordship. The Sovereign does not, as is often purported, wait for the Lord Mayor's permission to enter the City.'


Western's picture

Did he actually post a wiki article as a response?

ChrisFromMorningside's picture

The bigger they are, the harder they fall. 

Pass the popcorn. 

Paul Atreides's picture

I have been looking at this recently and it is my opinion that the bubbles are centered around major urban/industrial centers (with the exception and inclusion of properties like lake front cottages).

Travel 2+ hours outside of one of these centers in Canada and housing becomes quite affordable

The Canadian housing bubble seems to be more thickly skinned as the mortgage laws in Canada are quite strict when compared to american laws. I think it will take a major event to Canadian currency or employment precentages to replicate the housing collapse that we have been witnessing in the US. Knowing what I have learned on ZH and other sources I would think this would start from a major cascadding derivative event most likely coming out of Europe.

P.S. FUCK YOU MARK CARNEY

wang's picture

depends how you define affordability but I agree concentric circles become cheaper the further out except in Toronto you move from urban to vacation property, which is totally insane

 

this thing in Toronto just sold with multiple offers for $900  (its only half the house in the picture) and its on a busy street and is one of the cheapest (non condos) in the central area

 

http://realestate.canada.oodle.com/view/77-albertus-ave-toronto-on-m4r-1...

I understand the Chinese thing but it is not just Chinese but Iranian $$$ as well as BRIC $$$$ pouring in - in the Toronto Condo market some buildings 80% investors, it is like effing Dubai in downtown Toronto. I know it will burst but timing that is the challenge (likely a fools game to try and time real estate, but then again)

MeelionDollerBogus's picture

"purchasing power"

as long as the person can save and/or borrow without default/hardship then so let it be.

Some can't but there's been opportunities. Not tons but some.

 

Silver Pullet's picture

I hope it does so I can sell the condo in Vancouver and buy the farmland on the Island. A steady influx of foreigners is keeping the prices up though.

I think, in Vancouver anyway, the crash is going to be more like a dip.

My 2 pence.

DormRoom's picture

The trigger will be a hard landing in China.  All the hot money (Toronto Bay St.) into Western resources will stop.  That's why the markets are hot.  The Canadian economy has recovered because of the commodity superbubble, and not because of Canadian Central Bank.

 

If China has a hard landing, Canada will experience some dark winters.  Though Vancouver will remain hot, because rich Chinese will try to exchange their yuans for hard assets like property, in a friendly nation like Canada.

 

darkpool2's picture

You basically captured it. As long as Canada is perceived as relatively safe and economically stable, AND provided it remains relatively easy to immigrate to and invest in Canada, the funds will keep flowing. Its a small pond so money flows exaggerate asset price changes. As Tyler keeps reiterating, its the FLOW that keeps things going. Another thing is Canada is NOT the US ( very important these days as political risk keeps rising down there). Lastly,its also part of the flight of paper to harder assets. Not every dime can or will go to PM's. A safer living environment for the family is also a very valuable asset.

francis_sawyer's picture

On a long enough timeline, the survival rate for hair on the scalp of GS dudes turns to zero...

NoClueSneaker's picture

How about skinning Lloyd tommorrow? ( con public viewing ) ...

Don't give a fuck about the "timeline long enough". I do live in the perverse shit about 34 years, since Zbignew kicked off his program.

All the motherfuckers who have been in charge since then are the filthy liars, and they made this whole world brain damaged.

Congrats to all the Reagan cocksuckers - he brought the mega-filth on the market.  Barry is his most devoted fan - I knew it about 2 yrs. before this ugly peace of shit became teleprompter-in-chief . No1 wanted to hear a word of my scepticism.

 

Shit, I do really need a bullet in my brain. I'm obsolete and disgusted.

 

Renfield's picture

You're not the one who needs a bullet in the brain.

knukles's picture

Ever notice in the Annual Queen's Celebration of Diminioshment and Humiliation in the City, He rMajesty (or his as the case may be when the right honorable Prince of Penises asscends to the throne) walks several steps behind His Honour the Lord Mayor Wanker in Chief of the City?
LOL
Many folk just do not get it, so to speak. 
There is Always as Reason for Tradition, Myth and Ceremonial Standards.
This shit does not just appear without reference.

Ah, just like who was it, Vivinar at Goldman said to Tiabbi (one of two comments starting this whole miasma of Goldman) "We Own the World."

 

ZackLo's picture

So he's moving on to the main tent in the circus.

The Alarmist's picture

And the fact that they (parliament) do not immediately answer the door when black rod bangs against it? iIs it a sign that "jingle-mail" is a viable strategy?

Renfield's picture

We ran away from Aus just before the epic housing collapse hit there. Trouble was Canada was the only place we could go...from the fire, into the fry pan. But it still worked out better for us on an individual circumstance level. Not convinced old Mark is going to find things much better in England than he has here but maybe he has a better arrangement worked out there.

Not to justify any bankster pig (is he the one who sold all of Canada's gold back around 2001?), but that said, I can't really blame anyone - even a bankster - for acting to improve or preserve their own individual situation provided they aren't doing so on a sociopathic, destructive level. It comes down to we each need to do what we have to for ourselves and our families.

knukles's picture

Not whether MarkieBoy finds the Olde Lady of Threadneedle Street to his bloody liking, it's whether the VampireSquid gets to dig deeper into her Gold Vault, Reserves, lack of oversight and audits, infinite rehypotication, administration of regulations, LMBA (BoE oversight, LOL.  Oversight, my ass.) Borrowings capacity, Golbal Wire Transfer Credibility. (Nobody ever questions an incoming wire from the Fed or the Olde Lady... "You're free to move around, the money." to paraphrase the ad.

It's whether the Squid find Markie and the Olde Lady to their liking.

Renfield's picture

I have little doubt they will. The fiat system that spawned the squid (and JPig, and Shitibank, and Douche, etc.) pretty much came from there, dinnit?

Could see it as the prodigal son returning home.

knukles's picture

Actually, I've become significantly more jaded than the return of the prodigal son.  
If the serious behind the scenes banking families, which I have little doubt do exist such as the Rose Shield, etc., they'd not be inclined to be installing their own into positions as such. 
Rather, by placing an expendable, replacable tool in such positions of authority and responsibility thereby ensuring arms length plausable deniability, they insulate themselves from the furore yet to come, the repurcussions and demise of the stage props.
If my menory seves me well, was it not Rome that offered up it's own financial and power enablers when they became too arrogant, absorbed and aggressive for crucifixion along the Apian Way thereby quelling the unruly masses at the worst of times? 

Renfield's picture

heh - I guess that's jaded, but I'll take it. Beats seeing nobody being offered up anywhere, when some serious propitiation is so called for.

Since our respective "justice" departments won't do it, let the bigger criminals set up the smaller ones for a public fall, suits me...If Carney gets his then that'll be at least more satisfying than the deafening silence so far. Not sure I mind the unruly masses getting quelled if it means society doesn't descend into complete anarchy. I'm not so easily satisfied with the appearance of "justice" as I am worried about what will happen when misery filters through enough of the 99 percenters to lead to complete rage and despair. They called the Romans a lot of things, but I bet "stupid" wasn't one of them and they really knew how to build and maintain empire, right?

As for justice for the big fish you're talking about at the top...that will take some serious planning and I bet it won't come from any government.

MeelionDollerBogus's picture

No one really sold "all of Canada's gold"

we have quite a lot in the ground, coming up on a regular basis.

Renfield's picture

According to Eric Sprott, yes they did:

http://www.valuewalk.com/2011/12/canada-gold-reserve-problem

And see this:

"According to the latest Bank of Canada statistics, its gold reserves total only US$160 million. Contrast this modest figure to its US$28.604 billion in U.S.-dollar-denominated reserves and US$19.055 billion in other foreign currencies. IMF reserves are more than twenty times gold reserves.

"Given those intentions from other central banks, and given that gold is only 0.262% of the Bank of Canada's reserves, there's a good case to be made that gold is underserved. This relative paucity does not impel the Bank of Canada to back up the truck and shovel gold into the vault: not at these prices, which are on the high side. As I'll explain below, there is a way to boost Canada's gold reserves by using market forces to concentrate the accumulation when prices are on the low side. In a sentence, it involves letting Canadian corporations pay their federal income taxes in gold bullion.

"With regard to selling the reserves it formerly had, the Bank of Canada has an enviable record. There was no "Brown bottom" when the Bank of Canada decided to offload its gold. Instead of blunderingly selling near the bottom, the Bank of Canada's reserve managers sold at the top. The original decision to offload the gold was made in 1980, when the 1970s gold bull market had started to crack. Had the Bank of Canada been a private investment institution, it would have eaten out on that sell call for the rest of the 1980s – perhaps for longer."

http://www.enterstageright.com/archive/articles/0411/0411cangoldreserves.htm

According to my own notes, Canada's reserves were less than 190 tonnes at the beginning of 1994, when it disposed of another 67 tonnes. Canada has sold an average of nearly 13 tonnes per year since. Canada is now the world's only major economic power to have virtually eliminated its gold reserves. I would have to try to find where I got those particular figures, but FWIW there they are.

There is a lot in the ground coming up. But it isn't owned or bought by Canada as reserves. It's owned by those private miners, and of course, their customers - including foreign central banks. Not hard to figure out who they are...

CPL's picture

Here it comes...market reset to 1995 prices.

ebworthen's picture

All those centuries to rid society of oppressive Monarchs and arrogant Nobility and they are reincarnated as bankers.

Shylockracy's picture

To get rid of nobility as the ideal of honor, selflessness and voluntary public service was the biggest mistake civilisation ever made. Your caricatural view of nobillity is informed by 300 years bankster propaganda, corruption and subversion. Mind you there is no nobility left in the world anymore, especially not in England. Once the ideal of voluntary duty and honor dies, noble men cease to exist.

By the way, the roman republic, without a well established nobility would not have lasted 500 years. Just google "mos maiorum".

 

 

falak pema's picture

 

Don Quichotte must be laughing in his grave; but Paratge when it reigned true was a blessing. Paratge and Hubris; the dividing line between selfless honor and overpowering pride and greed. Now all packaged neatly into 'Reason of State' hegemonical ideology, justifying social darwinism as a healthy destructive process. Manifest destiny and rule of the best etc. etc. etc. 

Civilization morphs from one to other; its called the entropy effect and it is fed on success not failure. Once you undestand that successful civilizations are programmed to decay PRECISELY because they have succeeded you understand the human conundrum and why losing is the best way to feel hungry once again for Paratge and virtuous living and for wanting to win the RIGHT way. 

Humility always comes first to wash away what remains of hubris, once destroyed by Nemesis, then the hunger for Paratge...to reclimb the hill.

 

ebworthen's picture

Couldn't have said it better myself.

dannyboy's picture

This is so fucking sad and frustrating it's getting beyond a fucking joke, why does nobody but a handful care?

AUD's picture

If you accept the full faith & credit of either the BoC or the BoE, then you do not care either.

 

dick cheneys ghost's picture

Are we in the "Twilight Zone"?.....

 

Or is this just a bad dream?

Ag1761's picture

Short CAD long GBP

CPL's picture

No...long USD.

 

The powers that be are going after oil prices.  Knee cap the CAN support and in theory oil drops in price against the USD because CAN gets weaker.

 

Every move, every single one right now is to figure out how to extend cheap oil illusions until the pots are empty.  There is no other reason to go to war over anything else right now.