Category: Central BanksThe analysis published under this category are as follows.
Monday, March 20, 2017
It has been a busy couple of days for the world's central banks. Since the U.S. Federal Reserve made its decision to hike interest rates, rate announcements have followed from the People's Bank of China, the Bank of Japan, the Swiss National Bank and the Bank of England. This confluence of activity from most of the key guardians of the global economy provides a good opportunity to take stock of where things stand.Read full article... Read full article...
Tuesday, October 25, 2016
The Western central bank franchise system is totally broken, totally insolvent, and totally corrupt. It invites the Gold Standard return. The entire financial system is built upon a debt-based monetary system. The debt saturation process has run its full course. The central bank heads have been covering the sovereign debt for the last five years, having rendered their balance sheets as ruined. Debt is at obscene levels, like $19.7 trillion for the USGovt. No debt limits are in place anymore, a signal that most likely it has already defaulted. A hidden game is underway, with control lost to the creditors, even as they attempt to salvage their debt holdings. The major central banks continue to manage badly the great game, where money is fake phony and a farce. A titanic battle is underway, where the Eastern nations are discarding their USTreasury Bonds, and doing so in tremendous volume while they set up the many platforms and pieces to the Gold Standard.Read full article... Read full article...
Monday, September 26, 2016
The Bank of Japan gave us a glimpse as to just how far down the rabbit hole we may have to follow global policy makers as we try to make sense of ever more complex and shall we say, innovative ‘tools’ being used in the effort to engineer individual economies and asset markets within the global financial system. BoJ announced it would conduct “JGB purchase operations” in order to “prevent the yield curve from deviating substantially from the current levels”.
The market initially interpreted this to mean BoJ stood in support of a rising yield curve, which would for example, help the banks (ref. MTU and SMFG, which exploded higher off of the support levels we had projected), but by the end of the week the Japanese Yield Curve had eased substantially and there seemed to be confusion about what the policy’s intent, or would-be effects, actually were. I wonder if the BoJ even fully knows what it is doing now. Lots of moving parts in a complex system.Read full article... Read full article...
Saturday, August 13, 2016
If the Economy were a car, productivity would be the engine. Heated seats, on-demand 4-wheel drive and light-sensitive tinted windshields, are all very nice. But they mean little if the engine doesn't turn and the car just sits in the driveway. The latest productivity data from the Commerce Department confirms that our economic engine is sputtering.
If you strip away all the bells and whistles of economic analysis, the simple truth is that the increased living standards that have taken us from the stone age to the digital age happened because we increased our productivity. Better plows, windmills, bulldozers, factories and, more recently, better software, technology and automation, have allowed economies to produce more output with less human effort. This means there are more goods and services for more people to share and workers can work less to acquire those goodies. When productivity stops increasing, no amount of financial gimmickry can compensate.Read full article... Read full article...
Monday, August 01, 2016
The mainstream news sources seem determined to ignore the extent of the global slowdown in trade. Whether exports, imports, industrial production or whatever your preferrred metric, the facts are undeniable. Nevertheless, the mainstream media chooses to refuse to cover it. It begs an obvious question of - why?Read full article... Read full article...
Thursday, July 21, 2016
The Bank of Central Banks Reveals the Biggest Threat to the Global Financial System / Interest-Rates / Central Banks
The Bank for International Settlements (BIS) is in the unique position of serving global economic stability in general… and central banks in particular.
It functions as a master hub for all the world’s central banks. It settles transactions among central banks and other international organizations. It doesn’t serve private individuals, businesses, or national governmentsRead full article... Read full article...
Wednesday, June 15, 2016
The majority of economists view deflation as a general decline in prices of goods and services. This is viewed as a major threat to the public’s well-being for deflation is seen as a major factor that plunges the economy into an economic depression. Most of them are of the view that central banks and governments’ worldwide must aggressively fight the possible emergence of deflation. This way of thinking stems from an erroneous view of what deflation is. As a result, it is overlooked that it is not deflation but rather monetary pumping which is the root of economic hardship.Read full article... Read full article...
Friday, May 06, 2016
Hi its Friday May 6th 2016 so it's the first Friday of the month and usually
that means non-farm payrolls in the us- or the jobs data and yeah was
disappointing number for the you s economy jobs rose by a hundred non-farm
payrolls rose by a hundred and sixty thousand I was expected to be above
$200,000 $205,000 employment rate which is totally fictitious number status 5%
to reel in double double digits the other thing that's pretty bad for the economy and it shows that the USA
economy not only us' but you know the Western world economies are you know
haven't recovered from the collapsible wait prime age workers this is a story
Thursday, April 28, 2016
The Central Banking Prisoner’s Dilemma: Fed Freezes, BoJ Stammers, Dollar Drops 2% Overnight / Politics / Central Banks
In today’s communist-style, centrally planned world, when big central bankers meet and make decisions, no matter how small, markets quake and currencies shake. And that’s what just happened.
Bankers at both the Federal Reserve and the Bank of Japan met in the last 12 hours to decide where they would take monetary policy next. But when they sat down to make decisions, they were faced with a classic prisoner’s dilemma: Options were precluded. There was a lot they wanted to do but little they could do.Read full article... Read full article...
Wednesday, March 23, 2016
The stock market has regained all of its loses year to date as economic indicators continue to flash red, corporate profits continue to plunge, consumers continue to spend less at retailers, real wages continue to fall, and housing sales continue to decline. The entire dead cat bounce has been generated through corporate stock buybacks, Wall Street lemmings trying to make up for their terrible year to date investing performance, and central bankers who will stop at nothing to verbally manipulate markets higher - since their monetary machinations over the last seven years have been a miserable failure in reviving the real economy.Read full article... Read full article...
Tuesday, March 15, 2016
The helicopter statement isn’t meant literally. It conveys how central banks approach an economy when mainstream – and even out of the mainstream – monetary policies have failed.
Read full article... Read full article...
Tuesday, March 15, 2016
The Banco Central de Venezuela (BCV) wins the prize as the world’s worst central bank – at least for the time being. Venezuela’s annual inflation has been in triple-digit territory for more than three years. As the accompanying chart shows, the implied annual inflation rate soared as high as 800% last summer. Since then, inflation has fallen to its current 320% annual rate. This is still well above the phony 180.9% annual rate reported by the BCV in December.Read full article... Read full article...
Thursday, February 25, 2016
Brendan Brown writes: In 2008, the Federal Reserve began paying interest on reserve balances held on deposit at the Fed. It took more than seven decades from the US leaving the gold standard — in 1933 — for the fiat regime to do this and thus revoke a cardinal element of the old gold-based monetary system: the non-payment of any interest on base money.Read full article... Read full article...
Monday, February 22, 2016
That the world’s central bankers get a lot of things wrong, deliberately or not, and have done so for years now, is nothing new. But that they do things that result in the exact opposite of what they ostensibly aim for, and predictably so, perhaps is. And it’s something that seems to be catching on, especially in Asia.
Now, let’s be clear on one thing first: central bankers have taken on roles and hubris and ‘importance’, that they should never have been allowed to get their fat little greedy fingers on. Central bankers in their 2016 disguise have no place in a functioning economy, let alone society, playing around with trillions of dollars in taxpayer money which they throw around to allegedly save an economy.Read full article... Read full article...
Monday, February 15, 2016
It is now self-evident to any sentient being (excludes CNBC shills, Wall Street shyster economists, and Keynesian loving politicians) the mountainous level of unpayable global debt is about to crash down like an avalanche upon hundreds of millions of willfully ignorant citizens who trusted their politician leaders and the central bankers who created the debt out of thin air. McKinsey produced a report last year showing the world had added $57 trillion of debt between 2008 and the 2nd quarter of 2014, with global debt to GDP reaching 286%.Read full article... Read full article...
Monday, January 18, 2016
Transcript Excerpt: Monday January 18th 2006 still like to talk about the big short book written by
mouth Michael movers who is really a lot of other books about finance he wrote
liars poker that was the region no
also lashed boys Wall Street that came out in 2014 the bigger shirt came was
written in and came out in 2010 and I watched the new movie that's come out
the big short that came out on December 15th in the USA is interesting because
it was the day before
hydrates and Wikipedia call in the American biographical comedy drama and
it's interesting to see that it cost twenty million to me the movie and it's
already grossed seventy million dollars in box office which is not bad for a
Monday, December 21, 2015
The most important question investors will soon have to face is: "what's going to happen once central banks finally meet their inflation targets?"
For example, let's assume after years of monetizing government debt, bidding up equity prices, and forcing debt on the public by keeping borrowing costs at or below zero; that the ECB is finally able to achieve its inflation target rate of 2%. This would only occur once money supply growth becomes both robust and sustainable. It is silly to believe ECB President Mario Draghi can bring inflation to just 2% and nail it at that level. Inflation will continue to rise past 2% until the ECB raises interest rates by reducing its pace of bond buying. So, we will have the environment where inflation is rising north of 2% and the central bank will be forced to start cutting back its purchases of debt and preparing the market for eventual outright sales.Read full article... Read full article...
Monday, November 09, 2015
Stocks have rallied over the last 10 days in part by ECB President Mario Draghi’s statement that if push comes to shove, the ECB will push interest rates even further into negative territory (NIRP).
This represents just another round in the War on Cash, first implemented by the Central Banks in 2008.
It’s a little known fact that the cause for the gut-wrenching collapsing in late September-October 2008 was due to a significant portion of investors trying to move their money out of money market funds.Read full article... Read full article...
Monday, November 09, 2015
There are various examples in history of when national currencies have been debased so much that confidence in those currencies have been lost to such an extent that the nominal value of hard assets and productive assets in those currencies have gone up in a parabolic fashion. The grandaddy of currency debasement was the reichsmark during the Weimar Republic period in the early 1920s Germany. There are present day examples of currency debasement and rising local stock prices like Argentina and Venezuela but we will focus on the German example.Read full article... Read full article...
Friday, September 25, 2015
According to mainstream thinking, the central bank is the key factor in determining interest rates. By setting short-term interest rates the central bank, it is argued, through expectations about the future course of its interest rate policy influences the entire interest rate structure. (According to expectations theory (ET), the long-term rate is an average of the current and expected short-term interest rates.) Note that interest rates in this way of thinking are set by the central bank, while individuals in all of this have almost nothing to do and just mechanically form expectations about the future policy of the central bank. (Individuals here are passively responding to the possible policy of the central bank.)Read full article... Read full article...