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

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

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

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

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An Orgy of Blood (link)

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

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

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

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

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

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

A world at war?

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

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

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

The age of sloganeers

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

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

Comments

Rapunzal Blue-Berry Mon, 10/16/2017 - 17:28 Permalink

I'm surprised every time anew, when ZH is claiming our leaders or banksters are clueless. They are not, they know exactly what they are doing. They know the next crash will be different. The next crash will change society as we know it. The next crash will implode all Savings and pensions.
They know it's a gamble, they know it's a risk. But they think they can prepare for this.
How ? More false flags and disarming the people. More flouride into the water. That's what Nazis did with the water in concentration camps.
But most important have another to blame for the next economic collapse.

In reply to by Blue-Berry

BobEore Rapunzal Mon, 10/16/2017 - 23:09 Permalink

I'm surprised every time anew, when ZH is claiming our leaders or banksters are clueless.

Your surprise is ... surprising. Given that - every day, in every way, the outlines of the media psyop get more apparent to anyone really... paying attention.

"WE" have crashed... already. Absolutely and totally - the job of the fake news medias - in their 'alt' or 'msm' flavor formulas... is to disguise that fact, with a barrage of 'information' which keeps the dupes hooked on an illusory 'news cycle' ... like an intravenous tube which trickles nutrients to the bed bound.

Therefore no attention is paid to the numerous, in yur face components of the breakdown which 'one's own lyin' eyes' could not fail to perceive... were they no glued to the everpresent eye candy soap operas of the occidents' virtual reality.

This is free fall live time... including the rushes of ecstasy in the excitement of the momentary freedom from gravity... illusion...

and anybody who hadn't packed a parachute long time gone will be presented soon nuff with the indelible evidence of 'how it all ends'

In reply to by Rapunzal

Paul Kersey Honest Sam Mon, 10/16/2017 - 15:36 Permalink

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

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

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

In reply to by Honest Sam

Ghordius Cynicles II Mon, 10/16/2017 - 15:43 Permalink

over 5 years here and I am still surprised

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

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

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

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

In reply to by Cynicles II

malek Mon, 10/16/2017 - 15:26 Permalink

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

Probable Deniability is much more likely.

GreatUncle fbazzrea Mon, 10/16/2017 - 17:43 Permalink

In order ... the mandrake mechanism is Keynes just not formalised and was being used for a long time before.1913 the FED formed to keep those already running the show in power and entitlement.Keynesian economics was adopted not to enslave you but for those running the show to stay in power and entitlement.Dropping the gold standard again not to enslave you but for those running the show to ... yep you got it stay in power and entitlement.Adopted 2008 policy ... yeah need I say more ... for them to stay in power once again power and entitlement.**** NOW WATCH THIS ***If any one group is allowed to adopt policies that keep them in power and entitlement if you are not part of that club and in anything ... then you become the slave.All economic policies of bank leverage etc. yep you are slave forced to carry a debt around your neck like a yoke to keep you this way.**** REMOVING ANY OF THE POLICIES NOW ****Wrecks the whole system so either you are prepared to accept unquestionable atrocities and horror to sort this or you remain a slave while they keep their power and entitlement over you.GAME OVER.  

In reply to by fbazzrea

NoDebt Mon, 10/16/2017 - 15:29 Permalink

"The first name on their death list was Inoue Junnosuke, a former Finance Minister, an austerity advocate and former governor of the Bank of Japan (BOJ); he was shot as he visited a nursery school. The next name was Dan Takuma, head of the Mitsui Group, the Japanese Goldman Sachs; he was shot in front of his office in the fashionable Nihonbashi district."I'm telling this one to my kids as a bedtime story tonight...."So, kids, what's the moral of this story?""Don't be a Keynesian, Dad!""That's my boys.  I love you.  Good night." 

The Ingenious … NoDebt Mon, 10/16/2017 - 16:31 Permalink

Don't forget Finance Minister Takahashi Korekiyo:...After the men smashed their way into the compound, confused servants led Nakahashi and Lt. Kanji Nakajima to Takahashi's bedroom. There Nakahashi shot the sleeping Takahashi with his pistol while Nakajima slashed him with his sword. Takahashi died without waking.https://en.wikipedia.org/wiki/February_26_Incident#Takahashi_Korekiyo

In reply to by NoDebt

Disgruntled Goat Mon, 10/16/2017 - 15:34 Permalink

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

breaktwister Mon, 10/16/2017 - 15:40 Permalink

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

GreatUncle espirit Mon, 10/16/2017 - 17:53 Permalink

The problem is if they try and absorb the malinvestment into crypto currency that will be fucked from the get-go.The real problem is trying to defer the reaility of a collapsed system and just moving it into something else and will not evade the reality.Then explain to people why all those who profited from malinvestment should not pay for the losses?Good luck on that last point an angry mob is not going to be pacified ...hence 2008 was to stop the angry mob.

In reply to by espirit

wdg Mon, 10/16/2017 - 16:09 Permalink

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