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PIMCO Warns Global Central Banks Are Now Openly Defecting From The Status Quo's Prisoner's Dilemma

Tyler Durden's picture


Uncertainty. That has become the key word of the day, the month, and of 2011 in general. And while broad uncertainty has manifested itself most notably in the capital markets, it has a far more practical representation in labor markets, where the main reason why employers are not hiring more people, arguably the primary scourge of the Obama administration's record low approval rating, is due to corporate uncertainty about the future: about taxes, about government demanding its pound of flesh when the time comes, and about the economy in general. Ironically, as PIMCO speculates in its daily note authored by Tony Crescenzi, probably the primary driver of global uncertainty is the increasingly uncoordinated response by monetary policy authorities (read Central Banks) in which where before all had cooperated in the global game theory, now increasingly it is every printer for himself, as the default response turns to one of defection. And as everyone who has studied Game Theory knows, it is only the first defection that provides the biggest return, with each subsequent act generating far less benefits to the uncooperative actor, forcing even more uncooperative irrationality, and so on in a toxic spiral until outright belligerent action develops. For now said belligerence has begun to manifest itself in plain vanilla trade wars, such as that pointed out last night with the Chinese response to Europe's lack of response to its "bailout" overtures, and following up with the just announced complaint filed by the US against China on chicken prices. Naturally this is just the beginning. The real concern is that where trade wars end (which in turn begin when FX wars end), real ones start. When a year ago we first branded the Chairsatan as "genocidal" we were mostly joking. Perhaps it is time to reevaluate our definition, as it is far less comical under the current environment. Here is what Pimco has to say on the issue.

From PIMCO, Ya Gotta Believe, an extract:

Global Competitive Quantitative Easing

In March of 2009, central banks began a campaign against deteriorating financial conditions. When the Bank of England announced quantitative easing, the Federal Reserve and several other central banks, including the Bank of Japan and the European Central Bank, followed suit. In the 1930s, the U.K. abandoned the gold standard, allowing a devaluation of the pound, and several other countries followed with devaluations. They were known as competitive devaluations, since they sought to boost trade. In 2009, major developed economies experienced severe recessions for similar reasons – credit contraction – and so central banks acted in their own interest. Central banks followed each other in a competitive way, absent a coordinated response. And so quantitative easing was dubbed “competitive QE.”

During QEII, U.S. negative real rates together with uncertainty over the Eurozone debt crisis led to a flight out of the dollar and into emerging market currencies as well as perceived “safe havens” like the Swiss franc. Since the dollar remains the reserve currency, negative U.S. real rates present a choice for global central banks to accept or reject a deflationary impulse from real effective exchange rate appreciation. The choice has become more urgent as downward adjusted growth expectations resulting from fiscal austerity combined with financial market stress have heightened the risk of a liquidity trap.

Central banks could respond to a liquidity trap with tools to make their real rates and currencies as unattractive as possible. Recently, the Swiss National Bank did this by announcing an explicit floor on the Swiss franc. The Bank of Japan responded by expanding its asset purchase fund, while Japan’s Ministry of Finance assisted by unilaterally intervening in the Japanese yen. The G-7 released a communiqué advocating close consultation in regard to actions in exchange markets and appropriate cooperation. Next, the European Central Bank coordinated with the Fed, the Bank of Japan and the Swiss National Bank to offer three dollar liquidity auctions until year-end, but that is a stopgap and not a sign of grand cooperation.

In an environment where large fiscal adjustments are required, central banks rely on mechanisms that are effective. Indirectly through asset purchases or liquidity injections, central banks could competitively devalue their currencies. As competition intensifies, cooperation and coordination among global central banks could diminish and engender a timing dilemma for policy reversal. At the same time, decisions may become asymmetrical as central bank actions are not synchronized but rather self-centered. Both cases of Switzerland and Japan showed by targeting the currency in reaction to flight to safety and negative real interest rates, each central bank acted on its own in a non-cooperative manner, contrary to what the coordinated dollar liquidity action suggests.

Figure 2 depicts that along the distribution of the world’s average real policy rates, there is a very wide range of inflation outcomes. As a competitive process in central bank decisions continues, greater inflation volatility increases uncertainty in global economies and financial markets. The following sections in this commentary explore how individual central banks in developed and emerging markets are dealing with this uncertainty.

Read the full thing here.


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Tue, 09/20/2011 - 11:51 | 1688996 Cognitive Dissonance
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PIMCO Warns Global Central Banks Are Now Openly Defecting From The Status Quo's Prisoner's Dilemma

So.............does this mean they will continue to purchase Gold while claiming it's a useless relic that can't be eaten?

Just sayin'

Tue, 09/20/2011 - 11:58 | 1689021 trav7777
trav7777's picture

think the SNB can get its 1500 tons back?

Tue, 09/20/2011 - 12:27 | 1689150 Ahmeexnal
Ahmeexnal's picture

They'll take more than that. Actually, they already have it. Other people's gold, beneath Zürcher See. Always been that way.

Tue, 09/20/2011 - 12:34 | 1689169 Almost Solvent
Almost Solvent's picture

To help one explain this to those around who are more interested in college sports:


Syracuse and Pitt, basically founding members of the Big East, proactively bolted to the ACC while the getting was good and to not be left without a chair when the music stops.


Now, Texas & Oklahoma are likely next to bolt to greener pastures, leaving the remaining few to scramble for "safety"

Tue, 09/20/2011 - 12:35 | 1689193 Ahmeexnal
Ahmeexnal's picture

All the while the elephant in the room is still unnoticed.
Russia will pick up the pieces of what's left of europe. And europe will still be in debt with the russians.

Tue, 09/20/2011 - 13:43 | 1689440 Biosci
Biosci's picture

so...the TCU football team will have to fly to Russia?

Tue, 09/20/2011 - 12:10 | 1689058 Smiddywesson
Smiddywesson's picture

I agree Cog.  I think what was left out of this article is the cooperation and outright theatre that is going on.  If central banks were not cooperating, we would have $5k gold already rather than $200 moves down on no news, or depressed prices on currency intervention. 

Another way of looking at these selfish moves is that each participant, which is clearly still cooperating in the purchase and price suppression of gold, is taking turns in a controlled retreat.  First one country takes an action, then another takes its turn.  When viewed from the outside, it appears to be retaliation, when in fact it is a slow stalling retreat.  We know they want to kick the can.  We know they are cooperating in kicking the can, so why must we assume they are retaliating against each other?

I disagree with the premise.  There is another more logical alternative.  This is all show.  Do you really think the SNB acted alone?  I don't.  Do you really think Timmy went all the way to Europe to be spontaneously badmouthed, in the press, by finance ministers and central bankers.  These guys didn't get where they are by doing anything spontaneously.

Tue, 09/20/2011 - 12:14 | 1689087 SheepDog-One
SheepDog-One's picture

Exactly right, if ALL central banks were not cooperating, then we'd have gold at $5,000 or at least far higher than today, and countries would have imploded long ago in the Eurozone. This is all just theater for whats next, all the deer in the headlights looks from CB's and Bernank and politicians dont fool me 1 bit, they all know whats going on. Every bit of it theater, the 'ass chewing' by Euros on Geithner, the daily financial 'news' of the day bullshit...all just an elaborate show.

Tue, 09/20/2011 - 12:24 | 1689138 PaperWillBurn
PaperWillBurn's picture

They compete for the flow of gold out of mines and refineries. They know if they start competing for the stock it will go parabolic and they'll quickly lose their grip. Grab the new gold but don't you dare try to purchase the old gold.


How long before they stop playing nice? How long before a country far down in the order decides to go after the existing stock? The game can change quickly.

Tue, 09/20/2011 - 12:43 | 1689232 Smiddywesson
Smiddywesson's picture

How long before they stop playing nice? How long before a country far down in the order decides to go after the existing stock? The game can change quickly.

Truer words have never been spoken.  The most likely answer to that question is when China is ready to crush the can, kicking time will be over, but there are so many other catalysts too.

Tue, 09/20/2011 - 13:01 | 1689296 PaperWillBurn
PaperWillBurn's picture

China definitely has the ability but China (at least those in charge) benefit greatly from the current arrangment. I'd look for someone who's backed into a corner to set off the buying spree. Someone's who's status improves by a much higher POG.

Greece, Portugal, Italy?  Might be able to get past Greece, possibly even Portugal, but Italy won't bend over while sitting on 2400+ tonnes. Lets see how far this contagion will spread before someone chooses to drive up the value of their reserves.

Tue, 09/20/2011 - 19:25 | 1690056 Bicycle Repairman
Bicycle Repairman's picture

It's all kabuki.  The article is wrong.  All the CBs are cooperating.  And there is no advantage to being the first to stop cooperating.  That country will immediately be set upon by all the others, up to and including war. 

Gold doesn't skyrocket unless and until that is the agreed upon action.

Wed, 09/21/2011 - 00:25 | 1691122 thermroc
thermroc's picture

So, would the war be kabuki? Or kabuki kabuki? It wouldn't actually be real would it?

Tue, 09/20/2011 - 13:17 | 1689357 Lucius Corneliu...
Lucius Cornelius Sulla's picture

Gold is down because credit is imploding which is dragging down the prices of all assets (inclucing commodities).  Central Banks have been neutered by politics so outright soveriegn (and in the USA State then Federal GSE) debt defaults will start in Europe and spread across the globe.  Greece is the first crack in the debt pyramid which is doomed to fall regardless of what Central Banks do.  The primary concern of all governments, which is survival (and thus low borrowing rates), is in direct contradiction with an inflationary end-game.  It is only a matter of time before all will see how irrelevent the FED, ECB, PBOC and BOJ are.

Tue, 09/20/2011 - 12:19 | 1689114 LeonardoFibonacci
LeonardoFibonacci's picture

No Doomsday today either!!! So i'm going back to bed

Tue, 09/20/2011 - 12:38 | 1689200 fonestar
fonestar's picture

Silly plebeian, gold is for banksters!

Tue, 09/20/2011 - 12:59 | 1689292 Matto
Matto's picture

Steve keen winner or revere award in economics for correcting predicting the financial crisis and the reasons why (second was roubini) talking in NY this friday.

Tue, 09/20/2011 - 18:42 | 1690347 PeaBird
PeaBird's picture


So.............does this mean they will continue to purchase Gold while claiming it's a useless relic that can't be eaten?

Just sayin'

Look at what 'they' do, not what 'they'


Tue, 09/20/2011 - 11:52 | 1689002 all_in_now
all_in_now's picture

"Uncertainty". What uncertainty? "Stawlk" "market" is near all time high and going higher every day.

Tue, 09/20/2011 - 11:52 | 1689004 buzzsaw99
buzzsaw99's picture

belligerence won't stop the bernank.

Tue, 09/20/2011 - 11:53 | 1689005 SheepDog-One
SheepDog-One's picture

Global Central Banksters now openly defecting from their own 1 World Govt plan?

Uh oh, bitchez.

Tue, 09/20/2011 - 11:56 | 1689014 Oh regional Indian
Oh regional Indian's picture

Unlikely SD1. Verrrrrry unlikely.

All as per plan. This is kaaaaaaaabooooooki we are witnessing.



Tue, 09/20/2011 - 11:59 | 1689022 trav7777
trav7777's picture

break them up with your free magical energy!

You can't be this dumb...plans?  You think these idiots PLANNED for this type of economic catastrophe?

Tue, 09/20/2011 - 12:04 | 1689028 SheepDog-One
SheepDog-One's picture

Trav, youve got to be an IDIOT to NOT see this was all planned!

You REALLY think it was all just 'Oops, gee what happened? Huh guess we'll just have to print all currencies to oblivion because no way could anyone see this coming'?

Get with the program bub, it was all planned long ago.

You think they're IDIOTS to get where they are, in charge of the worlds banks? Give me a break man, take a few anti-retardation pills or something.

Tue, 09/20/2011 - 12:11 | 1689068 Cognitive Dissonance
Cognitive Dissonance's picture


We need to explain to people that by "plan" we don't mean a tight script, but rather an overall agenda. Gentle but constant pressure is very effective when greed is the ruling emotion.

Tue, 09/20/2011 - 12:17 | 1689101 Smiddywesson
Smiddywesson's picture

The very concept of "retaliation" tacitly assumes that central bankers care about countries or sheeple.  Would a central banker endanger himself to take action against another central banker who threatened the welfare of his country or his citizens?


That was a good one.

Tue, 09/20/2011 - 13:49 | 1689463 Lucius Corneliu...
Lucius Cornelius Sulla's picture

I think the Central Banks fear their respective Nation States who will pull the plug on them in a heart beat if it meant their survival.

Tue, 09/20/2011 - 12:17 | 1689106 SheepDog-One
SheepDog-One's picture

Yep, the only problem I see now with the slow but sure chip away at the stone method is theres probably not much time left at all. Like those videos of cliff houses in hurricanes...looks pretty stable untill suddenly the whole things gives way and plunges at freefall speed. Kind of like 9-11 when they 'pulled em' as Larry Silverstein said.

Tue, 09/20/2011 - 12:45 | 1689241 Smiddywesson
Smiddywesson's picture

Yes and when the whole house topples into the surf, what will they say?  Anybody?

We never saw it coming.

Tue, 09/20/2011 - 12:30 | 1689163 dark pools of soros
dark pools of soros's picture

I agree -  even when the wars start, the 'enemies' are usually still just the serfs vs the rulers yet the serfs battle each other instead


Bankers hate sovereign nations..  especially prospering ones  (ask Libya) 

Tue, 09/20/2011 - 12:14 | 1689090 WonderDawg
WonderDawg's picture

I'm not an idiot, and I don't think this was all planned. I think you're giving TPTB too much credit. They might have had a plan, but it's out of control now. Try as they might, they can't control the markets forever, if they ever actually had "control". Influence, yes, but control? I'm still not convinced.

I think they're shitting their drawers right now. They aren't good enough actors to pull off this act of chaos. When you get right down to it, sovereign cooperation is fracturing in a scramble for self-preservation.

Tue, 09/20/2011 - 12:26 | 1689144 thetruth
thetruth's picture

Underestimating the enemy is mistake number one.  This has been in place for a long time.  It's too late in the game to be making that mistake, sir.

Tue, 09/20/2011 - 12:27 | 1689148 SheepDog-One
SheepDog-One's picture

'Out of control'? Not a chance! It APPEARS out of control and chaotic, only proving THEY DID plan it....lets see whats the globalists motto? 'Ordo Ab Chao' Order out of chaos.

Tue, 09/20/2011 - 21:36 | 1690753 StychoKiller
StychoKiller's picture

The dinosaurs also had order on the planet, for millions of years, then Mother Nature came to bat...

Tue, 09/20/2011 - 12:34 | 1689183 Au Shucks
Au Shucks's picture

You don't have to be an idiot to not understand why this was planned.. you need only be a normal person who has not spent the energy to understand what is happening.  You're right in the sense that the PTB aren't happy with what is happening right now, but it is NOT because it is happening that makes them unhappy, it is that the timing is not what they planned exactly.  The pieces to the puzzle have been slowly assembled over time to create the conditions toward a single world currency and governance.  Not ever country supported this plan, but certainly the London-controlled countries have all played their role in the furtherance of the plan.  The countries who did not support the plan are those nations now who are suffering the most at the hands of the military industrial complex through the UN and London nations.  Those who are part of the plan are trying their damnedest to slow the collapse down to a controllable speed so moves can be made to turn the "crisis" into their long sought-after goal.  If this all sounds off the wall to you, again.. it is not because you are stupid.  However, if you now continue with your preconceived beliefs rather than see what is unfolding and go back to reanalyze your views, you do have the option of using the stupid label at that point.

Tue, 09/20/2011 - 12:46 | 1689245 WonderDawg
WonderDawg's picture

I'm pretty normal in most regards, but not with regard to spending the energy to understand what is happening. I've read a number of books, articles, theories, etc. Included on the list is The Creature From Jekyll Island, Blackwater, Endgame, Crossing the Rubicon, to name a few. So to say that I haven't invested the time and curiousity to understand is inaccurate. But, like I said before, I'm not convinced that TPTB are in control. In fact, I believe that the Euro experiment is imploding, and this was definitely not part of the plan. I'm not doubting that they have a plan, just that it's not working out the way they drew it up.

Tue, 09/20/2011 - 12:51 | 1689259 thetruth
thetruth's picture

Interesting point though - a desperate TPTB are likely much more dangerous than an in control TPTB.  Either way, there is some action around the corner.

Tue, 09/20/2011 - 13:44 | 1689444 Green Leader
Green Leader's picture

"I'm not convinced that TPTB are in control."

Yahweh is the one in total control.

You might want to add this instructional video, Mystery Babylon, to your education: 




Tue, 09/20/2011 - 12:50 | 1689256 Smiddywesson
Smiddywesson's picture

Plans change over time, but TPTB don't.  It doesn't matter when this particular installment of "The Plan" came about to give TPTB exactly what they have craved all along.  I'll repeat your words for those that missed it:

 Those who are part of the plan are trying their damnedest to slow the collapse down to a controllable speed so moves can be made to turn the "crisis" into their long sought-after goal. 

Tue, 09/20/2011 - 14:30 | 1689594 Cognitive Dissonance
Cognitive Dissonance's picture

You are confusing TPTB with politicians and other so called leadership. The owners of this world do not party in public.

Tue, 09/20/2011 - 22:06 | 1690805 StychoKiller
StychoKiller's picture

Note to self:  Report CogDis to the paranoia police. :>D

Tue, 09/20/2011 - 17:57 | 1690246 ManufacturedOpinion
ManufacturedOpinion's picture

Yes, Dawg - if you really believe that, you ARE an idiot.  And a fucking stoopid one at that.  And if you DON'T believe it you're just an asshole.

This shit has been planned for HUNDREDS OF YEARS.  Up to and including 3 world wars, all designed to take EVERYTHING from the people and leave the world to the Tribe.


Tue, 09/20/2011 - 20:10 | 1690549 WonderDawg
WonderDawg's picture

You're a bit of a cunt, MO. You give the tin hat crowd a bad name. I suggest you go fuck yourself.

Tue, 09/20/2011 - 21:25 | 1690703 Soul Train
Soul Train's picture

Sheepdog seems to see it all as a long time conspiracy.

Of course, that was the Fed mandate since 1913.



Tue, 09/20/2011 - 12:10 | 1689063 Oh regional Indian
Oh regional Indian's picture

Well Trav, with blinkered, mind-setted and bigoted people like you sitting as gatekeepers, can you see how well their "plan" is working? In a fair world, you would have had your teeth kicked out a long time ago and your fanatical clinging to a dead-end technological path would have been exposed for what it is, Status Quo propogation.

Think about that, you are a result of their plan. And you have kids....*shudder*


THIS is what this Exchange is about

Tue, 09/20/2011 - 12:32 | 1689171 Ahmeexnal
Ahmeexnal's picture

ORI, I'm sure those kids ain't Trav's. Even his wife could not be that stupid. That would explain Trav's racist anger.

Tue, 09/20/2011 - 18:00 | 1690250 ManufacturedOpinion
ManufacturedOpinion's picture

Jeezus Christ, ORI - are you going to be pumping another one of your lame articles in this forum again ??

Probably be pumping it all week, no?  You know, if your articles were any good you wouldn't HAVE to pump 'em up.

People, just ignore this crap by the Indian - not worth your time.

Tue, 09/20/2011 - 12:20 | 1689112 Hook Line and S...
Hook Line and Sphincter's picture

As a juvenile delinquent I once planned for my crappy motorcycle to be stolen. My buddy took the parts he wanted and left the frame in a field. I ate sand when insurance didn't cover it.

But then again, I just might have lied about that story.

Actual intent is always hidden. Speculation upon the fruit that's been produced is all that remains.

Tue, 09/20/2011 - 12:31 | 1689168 Abitdodgie
Abitdodgie's picture

There is free energy , how do I know i've got one S.E.G

Tue, 09/20/2011 - 15:52 | 1689906 bid the soldier...
bid the soldiers shoot's picture


Peak Oil. 2.0

Tue, 09/20/2011 - 12:09 | 1689048 SheepDog-One
SheepDog-One's picture

Yea exactly ORI, this 'sheep in the headlights' looks from the central banksters doesnt fool me for a second....theyre the ones who DESIGNED all this we're seeing today!

Theres no one out there at FOMC consulting on 'Gee, how do we get out of this mess....cntrl/alt/prnt key again'? They had it planned years ago....if they print then it ust means now was the time the picked for implosion of world economies....if they kick the can again then that was planned as well.

No one is in there trying to figure out how to 'fix this mess we're surprisingly in' all FED actions today were planned in 1913.

Tue, 09/20/2011 - 12:24 | 1689136 Smiddywesson
Smiddywesson's picture

I think the discussion of uber decades long plans for a NWO, or a determined opportunistic push for a NWO is irrelevant.  The system we are in was designed to fail from the first, and each new system they install will get them a step closer to what TPTB have always desired, a NWO with global control. 

Embrace the horror.  They are not going to turn on each other unless there is global chaos which breaks the entire financial system.  The other alternative is they just announce a gold referrenced system and while everyone is scratching their heads considering that, TPTB set up a new system with a tighter noose.

Tue, 09/20/2011 - 16:59 | 1690111 IQ 145
IQ 145's picture

"all FED actions today were planned in 1913" Wow. Complete inability to think. Absolute rejection of reality based models of the world around you. Very interesting. I see cognitive dissonance belongs to the great conspiracy story cult too; how interesting. Not too difficult to understand; it's a difficult subject to study; it's a lot easier to just make up a bullshit fairy tale that satisfies some emotional needs; and away you go. So, what's the weather forcast from the Flat Earth Society, today?

Tue, 09/20/2011 - 18:02 | 1690257 ManufacturedOpinion
ManufacturedOpinion's picture

Damn, IQ 45 ... when you spout drivel like that your REAL iq is revealed.

Get it up over 100 and come back to these boards.

Tue, 09/20/2011 - 21:22 | 1690717 Soul Train
Soul Train's picture



Tue, 09/20/2011 - 12:12 | 1689076 Smiddywesson
Smiddywesson's picture

They want to survive.  If they want to do that they have to cooperate, even if that means badmouthing each other.  They will do whatever it takes to remain TPTB.

Tue, 09/20/2011 - 12:31 | 1689170 SheepDog-One
SheepDog-One's picture

Theyve got all the chaos pre-planned....nothing empowers banksters more than world wars, and even thats been planned.

Tue, 09/20/2011 - 13:33 | 1689411 Zedge Hero
Zedge Hero's picture

I think Debt is their biggest power- once everyone has to default and they collect their debts through confiscation of the nation's gold reserve then they reset to a one world currency- IMHO

Tue, 09/20/2011 - 11:55 | 1689008 mvsjcl
mvsjcl's picture

Damn! I was sure I was first! How'd you guys get a few fantaseconds ahead of me?

Tue, 09/20/2011 - 12:57 | 1689277 MsCreant
MsCreant's picture

They must be bots. HFP = High Frequency Posters

Tue, 09/20/2011 - 11:56 | 1689013 Hansel
Hansel's picture

Remember back in the day when central banks were honorable, upstanding institutions?  Neither do I.

Tue, 09/20/2011 - 11:56 | 1689015 John Law Lives
John Law Lives's picture

DJIA is up +125 on uncertainty. FUBAR.

Tue, 09/20/2011 - 12:06 | 1689047 LawsofPhysics
LawsofPhysics's picture

Look behind the curtain, all the indexed funds (you know, those 401k funds) are DOWN almost 2%.  FUBAR indeed.  Get all the sheep out of the market before the real levitation begins.

Tue, 09/20/2011 - 12:28 | 1689153 SheepDog-One
SheepDog-One's picture

Nah, more like 'Keep the sheeple placated with green BS overall markets while we rape their 401K's'.

Tue, 09/20/2011 - 11:56 | 1689016 vast-dom
vast-dom's picture

BULL(SHIT)ISH to the Nth!!!!!!!!!!!!

Tue, 09/20/2011 - 11:57 | 1689017 BenG
BenG's picture

Hmmm, interesting.

Tue, 09/20/2011 - 11:58 | 1689019 Central Wanker
Central Wanker's picture

Uncertainty. That has become the key word of the day, the month, and of 2011 in general.


This talk about uncertainty is something I don't understand. There's no uncertainty. This economy is going to hell with 100% certainty.

Tue, 09/20/2011 - 12:01 | 1689027 Gandalf6900
Gandalf6900's picture

If someone stops them, but it looks like trying to stop a train with a japanese porcelain doll

Tue, 09/20/2011 - 12:18 | 1689037 SheepDog-One
SheepDog-One's picture

I'm certain its all totaly screwed at this point. No uncertainty here at all.

Tue, 09/20/2011 - 12:25 | 1689141 mendigo
mendigo's picture

uncertain is PC speak for totally freaking-out 

Tue, 09/20/2011 - 11:59 | 1689023 Gandalf6900
Gandalf6900's picture

this is all so foreign, please leave us alone, and if you have to exhist at least guarantee our safety and proliferation...governments meet none of these requests, they are pervasively useless and damaging to our exhistance, not to mention growingly a source of hilarity.

Tue, 09/20/2011 - 12:00 | 1689025 Chicago bear
Chicago bear's picture

Swiss seem very CERTAIN that they want that gold back from the SNB. That is an interesting defection from the game. Can all citizens copy that referendum and ask their central bank to stop selling the nation's gold? 

Tue, 09/20/2011 - 18:15 | 1690287 Reptil
Reptil's picture


we will.

a functioning central bank would not sell gold reserves now.

Tue, 09/20/2011 - 12:04 | 1689038 Segestan
Segestan's picture

Ahhhh.. globalization. Now theres an idea that works... until it doesn't. Got Gold?

Tue, 09/20/2011 - 12:24 | 1689140 SheepDog-One
SheepDog-One's picture

Theyre dying for globalization, world slave state under banks, but even their Eurozone is falling apart because the people reject the final step- slavery. 

Tue, 09/20/2011 - 14:22 | 1689575 DCFusor
DCFusor's picture

Most of what you've been saying is hooey, and it fails Occams razor and plain logic, sorry.  No way anyone goes for a NWO and one government unless they are sure to be at the top of something that can't ever be toppled.  As long as there are more than one - can't be sure, and we do the musical chairs dance.  If there is only one, it's already accomplished.  So your statements all Fail.

Second - slavery is what all of us have had for a very long time, it's just how tight the chains are here and there (and now and then).  You can't actually even own much past the shirt on your back even in USA -- property taxes on top of having to pay for the stuff. 

The effect of globalization is obvious to a critical thinker.  Those of us who for centuries have exploited and mined the "lower" or "developing" countries so we could live higher off the hog than the rest, now have the shoe on the other foot, and have to compete fairly.  Uh oh, there went all our advantages in pay, lifestyle etc, which weren't earned, they were stolen in large part.  Now the majority wants all that back, and will get it.  Globalization is just something that levels everything.  So of course, the rich don't want it, but the poor do, badly, and eventually the majority comes out on top. 

Sorry you don't like it - I don't either, much.  But to blame all things on "them" or TPTB without naming actual names, and showing how "they" can do things you can't imagine doing yourself is intellectually lazy, and corrupt.  Because when you blame all bad outcomes on others, you're saying you have no responsibility of your own.

Thanks for the warning.


Tue, 09/20/2011 - 15:06 | 1689722 Smiddywesson
Smiddywesson's picture

You are absolutely right.  Markets are not manipulated.  The central bankers don't control everything, including the politicians, and I am just lazy for not inflating every paragraph by naming names rather than using "TPTB."

Yup, you're right.  I am also to blame for not wanting to give up "all our advantages in pay, lifestyle etc, which weren't earned, they were stolen in large part."  What advantages were those again?  The privilege of working longer hours with less benefits than our fathers and grandfathers?  The privilege of doing without a summer home like they had?  The privilege of limiting ourselves to two children rather then four, or to be called greedy because I took a vaction like my parents did or bought an SUV rather than a fully loaded station wagon like they did?  How about the freedom to impoverish ourselves to educate our children?  (Cough, cough...brainwashed) 

Gee, I'm really really sorry.  You are absolutely right.  There is not an international banking cabal pulling all the strings, and they won't use this event to become even stronger.  The truely tortured logic in your first paragraph has convinced me. 

No way anyone goes for a NWO and one government unless they are sure to be at the top of something that can't ever be toppled.  As long as there are more than one - can't be sure, and we do the musical chairs dance.  If there is only one, it's already accomplished.

ROTFL, are you ok?  Did you have a mini stroke while you ciphered that one out, Jethro?  Want me to call 911?

PS:  If you think globalization was really foisted up the world to create a fair and level playing field, you might want to do a little research and rethink that opinion. 

Tue, 09/20/2011 - 15:46 | 1689870 MantiXX
MantiXX's picture

In regards to the not sure of anyone comment, just remember TPTB are all inter - related.  ie Married to each other.  You think princess Diana of this new 'Kate' chick are not related by blood to the queen. They are.  Hell good morning america did a clip on them all being related (Bush, Chaney, Queen, OBAMA etc etc).  Yeh, they may be 10th cousins, but Blood is thicker than water!!  Keep it in the family and its a 'family' matter.  Thats how they control everything from various separate entities. 


Tue, 09/20/2011 - 21:29 | 1690732 Soul Train
Soul Train's picture

Sheep, we haven't seen nothing yet re: RIOTS.


Tue, 09/20/2011 - 12:05 | 1689043 espirit
espirit's picture

Markets up on all bad news, just think what would happen with good fabricated news.  HFT's will run this whichever way they want, so sad.

Tue, 09/20/2011 - 12:08 | 1689053 Gandalf6900
Gandalf6900's picture

this is funny, I only trade Euro stox but looking at US indexes I have to laugh, you guys are at all time highs, where the hell have you been these past 2 years...hybernating in a cave!!! Did I miss something!!!

Tue, 09/20/2011 - 15:10 | 1689751 Smiddywesson
Smiddywesson's picture

Yes, but the big question of the day is:

If markets are up on bad news, then why isn't gold down on bad news like it has been of late?  How incredibly tremendous is the upwards pressure on gold prices that they can no longer suppress prices?  What is likely to happen tomorrow in light of that pressure?

Sorry for the bold, but it's a real important question.  I see the inability of the manipulation to produce a loss in gold as pretty significant.

Tue, 09/20/2011 - 12:06 | 1689046 Seasmoke
Seasmoke's picture

Sounds like my Homeowners Asscoiation, those who stopped paying the fees first , surely made out the every man , woman and child is looking for the exit as well

Tue, 09/20/2011 - 12:35 | 1689069 reload
reload's picture

Pimpco are not amused - they demand an end to uncertainty. Which form will QE3 take? which crappy paper should they be loading up with? (prior to flipping it to the Fed)

The few certainties we have had since 2008 are; a) that it would be a race to the bottom for the various forms of fiat, that b) it would be `each to his own-printer` and that c) physical possesion of PM`s would become derigour, and `problematic`

Tue, 09/20/2011 - 15:49 | 1689884 MantiXX
MantiXX's picture

A simple question, but the bernacky stated ZIRP till 2013 (or beyond) doesnt actually do anything unless some action is taken to hold rates at 0.  So would that mean they are already doing a stealth QE3 to maintain ZIRP?


Tue, 09/20/2011 - 12:12 | 1689078 Robslob
Robslob's picture

This is BULLISH!

Tue, 09/20/2011 - 12:17 | 1689081 Mercury
Mercury's picture

And as everyone who has studied Game Theory knows, it is only the first defection that provides the biggest return,

That's pretty much the jist of my unsolicited consultancy work for Switzerland this morning.

Tue, 09/20/2011 - 12:17 | 1689105 JW n FL
JW n FL's picture


William K Black on Max Keiser Part 1

On the Edge with Max

Uploaded by RussiaToday on Aug 12, 2010

This week Max Keiser and co-host Stacy Herbert look at Tier Terra and future crimes. In the second half of the show, Max talks to former banking regulator William K. Black about rackets and fraud in the financial sector.


Tue, 09/20/2011 - 12:20 | 1689117 SheepDog-One
SheepDog-One's picture

The only way the banksters keep their puppet Obama in now is as a martial law COG continuity of gubment president. Watch out here.

Tue, 09/20/2011 - 12:29 | 1689162 pods
pods's picture

idk, most peeps are not smart enough so when the big O says "the rich" he really means them, and not THE RICH.

Never underestimate the stupidity of the voting populace.


Tue, 09/20/2011 - 13:22 | 1689376 Miss Expectations
Miss Expectations's picture

The way I'm seeing it, there is a planned demolition of Obama taking place right now. MSM backing has been "pulled."  4 great years...8 years is not in the cards (not now anyhow). And, out of the wings steps....Hillary.

Tue, 09/20/2011 - 12:21 | 1689124 0ppenheimer
0ppenheimer's picture

I can tell you how it ends: Poo-tee-weet?

Tue, 09/20/2011 - 12:32 | 1689172 Diidier
Diidier's picture

This text makes look Krugman clever.

Tue, 09/20/2011 - 12:32 | 1689173 Diidier
Diidier's picture

This text makes look Krugman clever.

Tue, 09/20/2011 - 12:34 | 1689182 nah
nah's picture

lol the whole world sleepwalking past the graveyard of peak energy


Obama 2012 ! ! ! !

Tue, 09/20/2011 - 12:35 | 1689187 fonestar
fonestar's picture

Gold and Silver know what's up today.

Tue, 09/20/2011 - 12:38 | 1689205 PaperBear
PaperBear's picture

Should that be defecating all over the status quo ?

Tue, 09/20/2011 - 12:42 | 1689228 the grateful un...
the grateful unemployed's picture

and then China pegged to the dollar and all that hot money came their way, and they had a slight case of hubris, as they had won a couple hands of game theory (those smart gentiles on Wall Street know that game theory is just a ruse for extracting tribute, front running trades and making money the old fashioned way, by stealing it), but the Chinese love mind game puzzles.

So in the end it was impossible to create a one interest policy fits all in an unbalanced world (now its potlatch time, everyone throw their money back into the pot, and to their credit the Chinese understand this, sort of, but in China you're never sure if the guy you are talking to is the head of the politburo, or a richshaw driver)

the fiscal solution involves cutting off world trade, a slow and painful process, and in the case of the US a weak dollar hasn't done a thing to promote growth, so its doubtful it would work anyway

the other thing is a global deflationary spiral until asset prices in the US and Euro land spur new growth. if the US planners are smart they'll put that new economic growth into the domestic economy, right away, and this creates a problem. everyone turns their economic growth into self development. now the Chinese have to walk the walk, bring up their standard of living, at the same time they are cutting back in production.

anyway you cut it look for a return in profit margins, and inflation which will get us out of the debt trap, albiet with tepid revenue growth.

seems more likely that Ireland will go its own way, they fought British rule, why would they want to be part of the ECB?

massive dislocations, and a real hit to consumers who have been living on Uncle Barrys SNAP peas.



Tue, 09/20/2011 - 12:51 | 1689230 Hook Line and S...
Hook Line and Sphincter's picture

If I was a CB, I'd have all of my eyes open, and aware that I'd be betrayed at any moment. 'Smiles and cooperation' is at the surface of CB's, but below..subterfuge.

The hole of Greed has no bottom. It doesn't stop at the exploitation of sovereigns or citizenry.

The word 'plan' doesn't quite catch the essence of what is transpiring.

Does a car plan to get to it's destination? Does a carrot plan to grow? Does a person plan to be born? Does a bird plan to fly? Does pure fiat money really plan to self-destruct? It does what it does.

Pure fiat regimes have a beginning and end, and to some degree, imply plausible intent. Perhaps the observable historical cycle in fiat is what it is, neither completely planned or entirely un-planned, but just a condition of the soul corrupted and a byproduct of human distraction, rebellion, and greed.


Tue, 09/20/2011 - 12:59 | 1689288 the grateful un...
the grateful unemployed's picture

how many psychologists does it take to change a light bulb?

one, but the light bulb has to want to change.

add to that

unless the light bulb is on trial for murder

then it takes more than one psychologist, and change doesn't really figure into it.

Tue, 09/20/2011 - 13:30 | 1689396 Hook Line and S...
Hook Line and Sphincter's picture

The intent of creating a pure fiat system isn't to reach the end of the cycle. 

Is that filament starting to glow?

Tue, 09/20/2011 - 12:57 | 1689279 reader2010
reader2010's picture

" It's all about bucks, kid. The rest is conversation. "


- Gordon Gekko, 1987


Tue, 09/20/2011 - 13:09 | 1689325 PulauHantu29
PulauHantu29's picture


<<every printer for himself>>

says it all.......thank you for this article.

Tue, 09/20/2011 - 13:16 | 1689355 RSloane
RSloane's picture

Absolutely every printer for itself. However stupidly our market behaves, bankers live as close to the financial heart as snakes live to the surface of the earth. They are going for the self-save.

Tue, 09/20/2011 - 14:00 | 1689501 Whoa Dammit
Whoa Dammit's picture

Bingo! And how do they go for the self-save since cooperative printing is not working?

Financial Protectionism-No country wants to lend to other bankrupt countries any longer, as no one wants to be the final bag holder. Central banks will wall themselves off monetarily in order to keep the assets that they have in their own country.

And I expect this to happen quickly-Global trade will fall off a cliff within the next 30 days, due to a lack of global liquidity.

Tue, 09/20/2011 - 15:21 | 1689791 Smiddywesson
Smiddywesson's picture

That hasn't been my observation.  Up to this point they have bankrupt themselves to kick the can.  Your prediction is they are suddenly going to wall themselves off and practice fiscal conservatism?  When did they all suddenly reach this sea change in outlook?  Wasn't reaching this point predictable to you in the past?  If so, I'm pretty sure they saw it coming.  So why would they go down this road only to change their minds?

No, they are going to hit the reset button, and they will throw all the family furniture on the fire if it helps them to kick the can and make the new system more likely to function, and successful (for them).

Tue, 09/20/2011 - 14:03 | 1689511 taint
taint's picture

there's a case for and against a plan....was Bear Stearns part of the plan, lehman?   Wamu, Wachovi, ML...Each of these parties competed against each other.  jockeying for survival.   Ultimately who survives and why is still up in the air.   This in my view is argument against a 'plan'.  

Is ken lewis sitting in the corner watching babysitter porn as the plan unfolds?   fuld?   countless others.

For there to be a plan, doesn't there need to be a winner?  How is that winner crowned exactly and how do they collect their winnings?

do I think globalists want one currency, one governing body that extracts?  yes, but getting there and determining who that body is and who controls it seems a far stretch and difficult for me to conclude the 'planners' will ultimately benefit from it. 

To get there, at some point, labor must be legally imposed on Americans - can't see that happening without a few billion rounds of ammo flying around.  

count me in for at least 10,000.


Tue, 09/20/2011 - 15:26 | 1689806 Smiddywesson
Smiddywesson's picture

Just because some of the players change during the game, doesn't mean that everybody participating doesn't want to remain within the club of TPTB.  "The Plan" goes on like the basketball game, forgetting the players who drop out along the way.  The pursuit of power if within us all.  It is our nature.  It is not a far fetched conspiracy to believe that the people with the most power, are scheming for more, all of the time.

Tue, 09/20/2011 - 14:05 | 1689513 taint
taint's picture


Tue, 09/20/2011 - 14:37 | 1689622 Iwanttoknow
Iwanttoknow's picture

Let me add my two cents.The Cabal/oligarchy, as I see it, is not a monolith.It is a conglomeration of different power blocks with possible ultimate agenda but differs as to who will have how much control.

Tue, 09/20/2011 - 15:06 | 1689741 Bansters-in-my-...
Bansters-in-my- feces's picture

Central banks don't have tools.they are TOOLS.


Tue, 09/20/2011 - 15:22 | 1689794 saifstolemythesis
saifstolemythesis's picture

It is pretty pedantic to apply prisoner's dilemma (ECON101) to a very basic explanation for why employer's are not hiring.  Sales are stagnant or decreasing; they don't need the help. Doinggg!  It does not take game theory analysis to figure this one out.

Tue, 09/20/2011 - 17:01 | 1690113 htp
htp's picture

In plain English, Wall Street wants to downgrade and possibly eliminate the euro as a competitive reserve currency, Europe counters by threatening to go back to gold.

It's a mistake to think that euro zone central banks are part of the NWO, they are not.

Wed, 09/21/2011 - 09:21 | 1691945 skipjack
skipjack's picture

Occam's Razor still explains it best. This is my thesis -

TPTB, ie the world-wide oligopoly, has been aiming for a world-wide Euro-like economy. Hence the establishment of the UN, the IMF, the World Bank, CBs, the establishment of the Euro, now the pan-Asian currency agreements, and the continued rumors of the "Amero", all I believe to coalesce into a one world currency "run" by the UN, World Bank, IMF.

Problem is, the Euro is now proving the flaw in their system. Without a political union, there is no conceivable way to keep a currency union. The UN was to have been that political union, the "super" government to rule us all. They have failed due to many things, the most being their overt anti-Semitism and anti-capitalism. If they had gone for a soft socialism they may have crept all their takeover ploys more easily hidden, but they went for outright full socialism, population control and the coddling of terrorism.

So, since the political union has failed, the fully socialist countries, like Greece, in the currency unions have now washed up on the shores of insolvency and the not-yet-fully-serfed citizens of Germany are standing up in protest that the Greeks are taking more than their "fair share". (*roll-eyes* as if socialism was anything else, right)

Therefore, IMO, the NWO is doomed and it is evident by the goings-on in Europe.

Wed, 09/21/2011 - 15:15 | 1693907 johnjb32
johnjb32's picture

The first paragraph here just nails it! -- Michael C. Ruppert

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