One Bank's Striking Admission: The Fringe Is Now In Charge Because Of Central Banks

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 planning elite truly are, and this scandalous topic has 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.

Last October, in a market comment note by Clarmond's Chris Andrew and Mustafa Zaidi, the duo warned, 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."

In today's note, instead of looking at the inevitable militant outcome of failed central bank policies, they instead take on the connection between monetary policy and the rise of the "fringe" in politics, buoyed by a resentful electorate, which unable to partake in the "rise in asset prices, be they in equities, fixed income, or real estate" and where the "continued stagnation in income has only highlighted the disparity between income and asset growth", meant that the "resentment has simmered in the electorates of the developed world."

The cost of these policies, like in Takahashi’s time, is being paid years after the event. QE and deficit spending has brought unexpected and unsavoury guests to the political dinner table, invited there by the angry electorates. In 2012 we did not know who they would be in 2012, now we do and the guest list is nearly complete.

This list of actors spawned by central bank actions include those on the edge of acceptability: "the kind of characters who have provided diversionary entertainment for decades. These are now the main guests, sitting on both the Left and Right sides of our table: Trump & Bernie, Jacob & Jeremy, the Europeans leaders of AfD, Podemos & LegaNord."

These couplings are the costs of QE’s best intentions. These new guests bring with them their outlandish ideas to our desperate mainstream, that is struggling to find a vision of the future.

In short, "the fringe is now in charge because the centre is bankrupt of ideas."

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 finance, and now is more or less considered common knowledge as to how "this" all ends, and hardly generates any reaction.

* * *

The Best Of Intentions (link)

Dear Mustafa,                 

In preparing for my annual pilgrimage to the wifi-free valleys of the Cevennes National Park in France I have been reviewing our old pieces to remind me on what we were thinking in the past. One piece written in November 2012 jumped out at me, we called it ’Resurrecting Reflation’.

In it we introduced Takahashi Korekiyo, finance minister of 1930s Japan. He combined massive Quantitative Easing with deficit spending to propel Japan out of its slump. The result…the equity markets tripled, employment soared, and inflation decreased. Sadly for Korekiyo he paid for this easy money with his life. The loose money went into the military and when he tried to turn this tap off the group of army thugs visited him and cut him to pieces.

In 2012 it was only Ben Bernanke who was engaging in serious QE and we suggested that we should not be surprised to experience a similar outcome. Well Draghi, Kuroda and Carney soon joined the party and what a ride we have had.

We have enjoyed a significant rise in asset prices, be they in equities, fixed income, or real estate. However, this has coincided with continued stagnation in income - and this rise in asset prices has only highlighted the disparity between income and asset growth. So resentment has simmered in the electorates of the developed world.

The cost of these policies, like in Takahashi’s time, is being paid years after the event. QE and deficit spending has brought unexpected and unsavoury guests to the political dinner table, invited there by the angry electorates. In 2012 we did not know who they would be in 2012, now we do and the guest list is nearly complete.

Our guest include those on the edge of acceptability; the kind of characters who have provided diversionary entertainment for decades. These are now the main guests, sitting on both the Left and Right sides of our table: Trump & Bernie, Jacob & Jeremy, the Europeans leaders of AfD, Podemos & LegaNord. These couplings are the costs of QE’s best intentions. These new guests bring with them their outlandish ideas to our desperate mainstream, that is struggling to find a vision of the future. The fringe is now in charge because the centre is bankrupt of ideas.

If we fast-forward another 5 years from now I only see this guest list expanding, all the while the central bankers silently attempt to skulk away. In the past both parties eventually collided, with the new guests prevailing.

Comments

TBT or not TBT Mon, 07/09/2018 - 20:39 Permalink

Direct election of Senators scuttled the idea of a serious, non demagogical upper chamber for our republic .    They used to represent state legislatures .    

nope-1004 TeamDepends Mon, 07/09/2018 - 20:44 Permalink

"Ideas"?  Banks are licensed thieves and the best you can call their satanic policies is an idea?

My goodness..... time to call things EXACTLY what they are and stop the bullshit lies.

Banks steal through inflation and debt financing.  Low interest rates cause asset prices to skyrocket, forcing the average person into either borrowing for a home or living with mom and dad forever.

WE NEED TO STOP BULLSHITTING so life can be restored for humanity.  Bankers need to hang!

It's not an idea but a satanic policy.

It's not a credit rating but a slavery index.

It's not low interest rates but currency debauchery.

STOP THE LIES.

In reply to by TeamDepends

Radical Marijuana HillaryOdor Mon, 07/09/2018 - 21:56 Permalink

The history of the vicious feedback loops of all aspects of the funding of the political process enabled the banksters to capture control of governments. In John Perkin's terms, the economic hit men use the tools of bribery and intimidation, both of which are backed up by the jackals, who use the tools of murder on various scales.

Politicians who are not able to be bribed or intimidated can be assassinated. After a history of the banksters getting away with series of successful assassinations, there are no longer any publicly significant number of successful politicians who are not the banksters' puppets, who are voted for by enough of the masses of muppets, who were manipulated through generation after generation of being brainwashed to believe in bullshit by the schools and mainstream media.

Those few laws left which might restrain the banksters are no longer significantly applied. Rather, as William K. Black, one of the greatest experts on these topics, has stated: THE BEST WAY TO ROB A BANK IS TO OWN ONE.

While it may be theoretically correct to assert that the state has more power than private corporations, even the central banks, the actual roles of money through the political processes have effectively captured control over all branches of the government. FOLLOW THE MONEY TO ITS SOURCE.

In reply to by HillaryOdor

el buitre Radical Marijuana Mon, 07/09/2018 - 23:18 Permalink

States are the servants of the banks and their enforcement arm.  Was it a coincidence that the IRS was started when Wilson signed the Fed into existence?  There was no "best intentions" behind the creation of this everything bubble which is now coming to a head like a large, pustular pimple.  When it pops, and I figure it will be within the next 12 months, the whole system will come down.  Credit will dry up which means that the food trucks to the supermarkets will stop.  One need not be Nicola Tesla to figure out what happens then.  This has been designed for a long, long times to usher in the start of a Hunger Games society.  This does not mean that the satanic scum is going to win.  Their arrogance will probably be their downfall.  In the meantime, the human race is about to go through some very hard times.  But don't for a moment think that the coming times were the result of ignorance on the part of the banking cabal..  Academics out of touch with the real world.  Really?  They have known exactly what they have been doing and the agenda and results they expect which will prove to be misery to 97% of humanity.  They expect us to beg them to fix the shitstorm they just created.

In reply to by Radical Marijuana

el buitre Justin Case Tue, 07/10/2018 - 00:43 Permalink

A lot of libertarians focus on fiat currency alone as the tool of the bankers to enslave us.  But fiat current is only one arm of the pliers squeezing our collective nutsack.  The other arm is the legal license given to commercial banks to counterfeit which is called the fractional reserve system.  This system was functioning when gold and silver were still the money of the land and was used then to crush the people.  Banks must be denied the license to counterfeit money.  All loans must be made from deposits or their own capitalization. 

In reply to by Justin Case

Balance-Sheet el buitre Tue, 07/10/2018 - 10:13 Permalink

There has never been such a system as 100% reserve at least since the days of Babylon or more than 1 minute after any bank has opened so there is about a 0.0001 chance that your idea will be implemented. About 7 billion people would begin to starve then sink bank to a hunter gatherer life style. Some people might object to such a program.

 

In reply to by el buitre

lonesome foghorn 07564111 Mon, 07/09/2018 - 23:50 Permalink

wrong ;) the people can reach out and 'touch' those organisms, all it needs is the will to do so and the right trigger

With all due respect, the vast majority of The People have no clue that these organisms exist. 

Most folks think money is created by the govt printing it. Fractional reserve lending? Wazzdat?

It will happen when a demagogue rises. A Lenin or Hitler. And the Powers will be watching for him. They learned a lot from the Twentieth century.

 

In reply to by 07564111

Hugh_Jorgan nope-1004 Mon, 07/09/2018 - 21:11 Permalink

The center is not bankrupt of ideas, the center has no more ideas that they want to present to the adult children that we have running around as the center of our societal bell curve right now.

 

There is no more ammunition to make the economy go boom until we accept a SERIOUS set of realities that the Central Banks are not willing to entertain until they pull the pin on the whole mess and blame it on Trump and Conservative policies in general.

In reply to by nope-1004

O C Sure nope-1004 Mon, 07/09/2018 - 21:39 Permalink

Good for you, nope-1004. The turning of names is Sophistry 101 but they can only turn the name. A thing is what it does not what we name it. Better to keep calling things by the phrase that represents what it does rather than its pleasant "name."

In reply to by nope-1004

JerseyJoe lonesome foghorn Tue, 07/10/2018 - 04:14 Permalink

And that is exactly why they did this Marxist divide and conquer strategy.   Most immigrants washing up in the US come from places (and shit holes) where our Constitutional freedoms (or what they once were) are such a foreign concept that they same immigrants would stand against us.  Free men versus Statist sheeple.  

But even more basic, how did our system of government evolve to be the complete and blatant corruption and enrichment of our elected leaders?  How pathetic is that?

In reply to by lonesome foghorn

NoDebt Mon, 07/09/2018 - 20:42 Permalink

"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..."

We built this city...

We built this city on rock and roll.

 

booboo NoDebt Mon, 07/09/2018 - 20:52 Permalink

Without the purposeful dissemination of false and failing economics policies at every level of education coupled with money for nothing and chicks for free policies offered by what the author deemed “normal people” in so many words the normal people running things will be “fringe” in a few years and may very well be hung as a result of their widely accepted theories for the past 100 years. They are not bankrupt of ideas as they always only had one the whole time and that was to sheer the sheep.

In reply to by NoDebt

. . . _ _ _ . . . Mon, 07/09/2018 - 20:45 Permalink

Is there a minimum word count to post articles on the Hedge?
I ask because there seem to be a lot of articles which repeat entire paragraphs (tweets, quotes, etc.) verbatim.

fulliautomatix snblitz Mon, 07/09/2018 - 23:28 Permalink

While the circumstances continue the analysis will continue to run around madly in little circles, yapping insistently. It tries to show us the way out, but it isn't an acceptable solution (although the only one).

Political cowardice and the results thereof: maybe it is this that I miss in the story of Jesus, it would explain a lot.

In reply to by snblitz

earleflorida Mon, 07/09/2018 - 21:01 Permalink

https://www.rothschildarchive.org/materials/ar2006japan.pdf

Note: Jacob Schiff family and Rothschild (Red Shield) family shared the same duplex 'The Green House' on the main Frankfort...

http://www.lovethetruth.com/books/13_bloodlines/rothschild_03.htm

it's important to scroll 'PDF' for visual of Takahashi Korekiyo --- he financed the Japanese war via the jew power brokers in Europe's bloodline in Russia Korea's 'Russo-Jap War 1904-05(?07?)' that put Russia on notice that in less than a decade later the Romanov Family would be fighting (dying) for its very existence...

JerseyJoe waspwench Tue, 07/10/2018 - 04:33 Permalink

Thank you.   The unsavoury ones were the corrupt pieces of shit that have been running things into the ground for decades...that evolved to the maximum outrage - banksters too important to prosecute ala Holder. 

Tyranny is not knocking, it is in the house when criminals are put above the law.   BTW Where is the indictments of Hillary?  

But Trump is fringe?  As opposed to not completely controlled by these fucking criminals? 

 

In reply to by waspwench

Let it Go Mon, 07/09/2018 - 21:15 Permalink

Both Wall Street bankers and the government, including the Federal Reserve, hold great sway over the economy. This is true with bankers and central banks across the world. When forced to ask which is the worse of these two evils the answer is very troubling. Government wins hand down. We elect politicians to lead, protect and guide us, we do not elect or appoint bankers.

Years ago President Eisenhower warned the American people about the Industrial Military complex, but nobody warned us an even more evil alliance that of the "Financial-Political Complex." The article below explores this beast and how it came to be.

  http://Lessor Of Two Evils Wall Street Or Bankers?html

Thugocracy Mon, 07/09/2018 - 23:38 Permalink

Scribblers hired to defend printing money to buy votes with.

Incompetent to manage the State? Print money to buy votes with.

Incompetent to manage the economy? Print money to buy votes with. 

Same as it ever was. When Rome collapsed, the dinarius was .02% silver. 

Today, the dollar is five percent it's value in 1915.  Looking for correlation or causation? Answer coming soon.

Money_for_Nothing Tue, 07/10/2018 - 07:42 Permalink

The center went with Trump. The fringes are the NeverTrumpers of the Republican and Democrat parties. NeverTrumpers are marginalizing themselves. Automation will allow stuff to be made at a fraction of the cost today. The US will start giving away stuff. Asia will be flooded with well made cheap trinkets and non-contaminated food. Payback.

Balance-Sheet Tue, 07/10/2018 - 10:29 Permalink

If a Central bank is instructed to prepare an emergency financing program for a war military leaders are planning to initiate in the immediate future such a program can be implemented. Germany did this in the immediate run up to WW1 (1912?) and WW2 (1934) but both Germany and Japan knew they would start WW2 soon and if they lost the national finances would be minor losses compared to a losing blood bath and if they won the extravagant financing program would be redeemed by the victory as it was for the USA.

FDR had instructed the Fed to provide unlimited financing for the looming WW2 he planned for the US to enter so they did as ordered but Germany, Japan, USA, etc. knew war would breakout almost immediately.

The Central Banks did NOT just start creating vast amounts of currency which (somehow) inspired Japanese and German imperialists to start WW2 or WW1 for that matter.

Congress passes budgets and taxing programs as laws and these laws create deficits. The UST and the Fed arrange financing for these mandated deficits NOT the other way around.