Oct 09

- Russia Central Banks Scrambles To Halt Plunging Ruble, Spends Over $2 Billion In Last Three Days As Inflation Soars (ZeroHedge, Oct, 8, 2014):

Recently, not a day passes without the Russian Ruble hitting new record lows against the US Dollar due to a combination of both capital outflows from Russia, tumbling prices of crude – Moscow’s most important export – which deteriorates Russia trade and current account position, coupled with the most acute USD strengthening in history in the past few months over fears of a tightening Fed.

Yet for whatever the reason, after stoically ignoring the impact of its tumbling currency on the domestic economy (and as a reminder, Japan would kill for a currency collapse of this magnitude: just think of the “economic renaissance” that would result if only Abenomics was right about killing your currency leading to growth… which it isn’t), the Kremlin is finally starting to feel the pinch leading to the biggest central bank intervention in FX markets since the start of the Ukraine campaign, buying Rubles for a third consecutive day at an amount of over $2 billion, with $1.75 billion purchased in the first two days of the current intervention attempt, and another $420 million in foreign currencies sold overnight according to Bank of Russia data. Continue reading »

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Aug 31

- It’s Settled: Central Banks Trade S&P500 Futures (ZeroHedge, Aug 30, 2014):

Based on the unprecedented collapse in trading volumes of cash products over the past 6 years, one thing has become clear: retail, and increasingly, institutional investors and traders are gone, probably for ever and certainly until the Fed’s market-distorting central planning ends. However, one entity appears to have taken the place of conventional equity traders: central banks.

Courtesy of an observation by Nanex’s Eric Hunsader, we now know, with certainty and beyond merely speculation by tinfoil fringe blogs, that central banks around the world trade (and by “trade” we mean buy) S&P 500 futures such as the E-mini, in both futures and option form, as well as full size, and micro versions, in addition to the well-known central bank trading in Interest Rates, TSY and FX products. Continue reading »

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Aug 01

BRICS-happy


- Russia And India Begin Negotations To Use National Currencies In Settlements, Bypassing Dollar (ZeroHedge, July 31, 2014):

Over the past 6 months, there has been much talk about the strategic proximity between Russia and China, made even more proximal following the “holy grail” gas deal announced in May which would not have happened on such an accelerated time frame had it not been for US escalation in Ukraine.

And yet little has been said about that other just as crucial for the “new BRIC-centric world order” relationship, that between Russia and India. That is about to change when yesterday the Russian central bank announced that having been increasingly shunned by the west, Russia discussed cooperation with Reserve Bank of India Executive Director Shrikant Padmanabhan. The punchline: India agreed to create a task group to work out a mechanism for using national currencies in settlements. And so another major bilateral arrangement is set up that completely bypasses the dollar.

From the Russian Central Bank: Continue reading »

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Jul 04

- By “Punishing” France, The US Just Accelerated The Demise Of The Dollar (ZeroHedge, July 4, 2014):

Not even we anticipated this particular “unintended consequence” as a result of the US multi-billion dollar fine on BNP (which France took very much to heart). Moments ago, in a lengthy interview given to French magazine Investir, none other than the governor of the French National Bank Christian Noyer and member of the ECB’s governing board, said this stunner at the very end, via Bloomberg:

  • NOYER: BNP CASE WILL ENCOURAGE ‘DIVERSIFICATION’ FROM DOLLAR

Here is the full google translated segment:

Q. Doesn’t the role of the dollar as an international currency create systemic risk?

Noyer: Beyond [the BNP] case, increased legal risks from the application of U.S. rules to all dollar transactions around the world will encourage a diversification from the dollar. BNP Paribas was the occasion for many observers to remember that there has been a number of sanctions and that there would certainly be others in the future. A movement to diversify the currencies used in international trade is inevitable. Trade between Europe and China does not need to use the dollar and may be read and fully paid in euros or renminbi. Walking towards a multipolar world is the natural monetary policy, since there are several major economic and monetary powerful ensembles. China has decided to develop the renminbi as a settlement currency. The Bank of France was behind the popular ECB-PBOC swap and we have just concluded a memorandum on the creation of a system of offshore renminbi clearing in Paris. We have very strong cooperation with the PBOC in this field. But these changes take time. We must not forget that it took decades after the United States became the world’s largest economy for the dollar to replace the British pound as the first international currency. But the phenomenon of U.S. rules expanding to all USD-denominated transactions around the world can have an accelerating effect.

In other words, the head of the French central bank, and ECB member, Christian Noyer, just issued a direct threat to the world’s reserve currency (for now), the US Dollar. Continue reading »

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Jul 03

- India’s Central Bank Will Sell Gold on the Market in Exchange for Gold at the Bank of England (Liberty Blitzkrieg, July 2, 2014):

India’s gold policy over the last several years is about as dysfunctional as any government policy I have ever seen, and that’s saying a lot. In case you need a reminder, here are a few posts I have written on the subject:

The Times of India: “Almost Every Passenger on a Flight from Dubai to Calicut Was Found Carrying 1kg of Gold”

Gold Smuggling Increases 7x in India and Surpasses Illegal Drug Trade

Indian Temples Fight Back Against Government Gold Grabbing Plot

In a nutshell, Indians were buying too much gold for their government’s comfort, so the “authorities” stepped in with duties and import restrictions in an attempt to stifle the trade. So smuggling soared.

Fast forward to today. It appears the government has finally realized they can’t stop their citizens penchant for gold, so they have decided to dump central bank gold onto the market. What is incredible to me is that they are justifying this with a so-called “swap” into phantom gold at the Bank of England. The favored global hub of shady, rent-seeking, banker oligarchs.

What’s even more interesting about this is the fact that so many Central Banks seems to be swapping or selling their gold to Western interests. Most notably Ecuador selling to Goldman Sachs, which I highlighted in the piece: Ecuador to Transfer More Than Half its Gold Reserves to Goldman Sachs in Exchange for “Liquidity.”

Now from Reuters:

MUMBAI, July 2 (Reuters) – India’s central bank said on Wednesday it has sought quotes from banks to swap gold in its own vaults for international-standard gold, aiming to improve the management of its reserves.

Continue reading »

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Jun 29

BIS, the central bank of central banks, is located in Basel, Switzerland, but it also has branches in Hong Kong and Mexico City.  It is essentially an unelected, unaccountable central bank of the world that has complete immunity from taxation and from national laws.  Even Wikipedia admits that “it is not accountable to any single national government.

Related info:

- Another Conspiracy ‘Theory’ Becomes Conspiracy ‘Fact’: ‘Cluster Of Central Banks’ Have Secretly Invested $29 TRILLION In The Market

- 40 Central Banks Are Betting This Will Be The Next Reserve Currency


bis-bank-for-international-settlements-basel-switzerland

- BIS Slams “Market Euphoria”, Finds “Puzzling Disconnect” Between Economy And Market (ZeroHedge, June 29, 2014):

“… it is hard to avoid the sense of a puzzling disconnect between the markets’ buoyancy and underlying economic developments globally….  Despite the euphoria in financial markets, investment remains weak. Instead of adding to productive capacity, large firms prefer to buy back shares or engage in mergers and acquisitions.

As history reminds us, there is little appetite for taking the long-term view. Few are ready to curb financial booms that make everyone feel illusively richer.  Or to hold back on quick fixes for output slowdowns, even if such measures threaten to add fuel to unsustainable financial booms. Or to address balance sheet problems head-on during a bust when seemingly easier policies are on offer. The temptation to go for shortcuts is simply too strong, even if these shortcuts lead nowhere in the end.

     – Bank of International Settlements, 84th Annual Report

It was a year ago when the general manager of the Bank of International Settlements (the central banks’ central bank), Jamie Caruana warned that the “Monetary Kool-Aid Party Is Over.” Since then central banks have proven their own supervisor wrong in their ability to kick the can, because even as the Fed has commenced tapering its own QE (due to the same bond market liquidity issues we warned about last summer) the ECB has more than offset the Fed’s brief attempt at policy normalization by escalating, for the first time in history, from ZIRP to NIRP. In other words, the Kool-Aid keeps flowing.

Which brings us to the BIS’ just released annual report. There are many reason to read the full report cover to cover, but perhaps the most prominent one is that, once again, the Bank of International Settlements has merely compiled a book report of all Zero Hedge posts not only over the past year, but since our inception.

A quick summary of the report comes from FT: Continue reading »

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Jun 16

“Cluster Of Central Banks” Have Secretly Invested $29 Trillion In The Market (ZeroHedge, June 16, 2014):

Another conspiracy “theory” becomes conspiracy “fact” as The FT reports a cluster of central banking investors has become major players on world equity markets.” The report, to be published this week by the Official Monetary and Financial Institutions Forum (OMFIF), confirms $29.1tn in market investments, held by 400 public sector institutions in 162 countries, which “could potentially contribute to overheated asset prices.” China’s State Administration of Foreign Exchange has become “the world’s largest public sector holder of equities”, according to officials, and we suspect the Fed is close behind (courtesy of more levered positions at Citadel), as the world’s banks try to diversify themselves and “counters the monopoly power of the dollar.” Which leaves us wondering where are the central bank 13Fs?

While most have assumed that this is likely, the recent exuberance in stocks has largely been laid at the foot of another irrational un-economic actor – the corporate buyback machine. However, as The FT reports, what we have speculated as fact for many years now (given the death cross of irrationality, plunging volumes, lack of engagement, and of course dwindling credibility of central planners)… is now fact… Continue reading »

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Jun 16

In Explosive Scandal, Head Of Polish Central Bank Recorded Promising Assistance To Government If Minister Fired (ZeroHedge, June 15, 2014):

Remember when conventional wisdom said central banks are apolitical and impartial, and anyone who claimed that the world’s money printers (which in the New Normal of failed fiscal policy means the only source of stimulus, and thus infinite political leverage and an existence “above the law”) are in fact the most political and partial entities was, what else, a conspiracy theorist? Well, there goes another conspiracy theory, replaced by conspiracy fact.

Yesterday, Polish magazine Wprost released a recording of a meeting between Interior Minister Bartlomiej Sienkiewicz and central bank Governor Marek Belka which took place in a Warsaw restaurant in July 2013. In the recording, Belka told the minister he would be willing to help the government out of its economic troubles if the finance minister was fired.

Continue reading »

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Jun 07

AIPAC1

- A Terrible Price to Pay (Veterans Today, June 7, 2014):

In 1913 The City of London Zionist private Central Bankers successfully hijacked the American Monetary Production and Distribution System.

This was done by use of  stealth, bribery and massive political influence and was completely illegal despite any and all claims to the otherwise.

This terrible Treason and Sedition by top USG Officials placed complete control over the whole American economy in the hands of the World Zionists (WZs) and their International Crime Syndicate, the IZCS.

This essentially gave the WZs control over all the personal property, the fruits of labor and production of almost every normal American and all their futures with NO oversight of Congress or any institution of the USG at all, NONE.

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May 21

Putin chess

- As Russia Dumps A Record Amount Of US Treasurys, Here Is What It Is Buying (ZeroHedge, May 21, 2014):

Last week we commented that based on TIC data, while “Belgium’s” unprecedented Treasury buying spree continues, one country has been dumping US bonds at an unprecedented rate, and in March alone Russia sold a record $26 billion, or 20% of its holdings.

So as Russia is selling a record amount of US paper, what is it buying? For the answer we go to Goldcore which tells us thatRussia Buys 900,000 Ounces Of Gold Worth $1.17 Billion In April.”

 Putin-Gold

 

 

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May 20

Related info:

- The Elephant In The Room: Deutsche Bank’s $75 TRILLION In Derivatives Is 20 Times Greater Than German GDP


- Deutsche Bank: “Perhaps The Fed And Other Central Banks Are Controlling The Market Too Much These Days” (ZeroHedge, May 20, 2014):

Perhaps the Fed and other central banks are controlling the market too much these days with their guidance. In the old days central banks used to like to create an element of surprise to ensure that markets didn’t become complacent. With the crisis fresh in people’s minds, with the stock of debt still huge and with the recovery still so uncertain they feel they cannot risk creating too much uncertainty at the moment. ” – Deutsche Bank

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Apr 25

Russia unexpectedly raises interest rates

- Russia unexpectedly raises interest rates (RT, April 25, 2014):

The Central Bank of Russia has unexpectedly raised its key interest rate to 7.5 percent, despite earlier saying it wouldn’t change until June. Aimed at trimming inflation, it means more expensive loans and slows an economy that’s already losing steam.

The rate went up 50 basis points. The last time it was bumped up was in March to 7 percent, a 1.5 rise from the previous 5.5 percent rate.

Continue reading »

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Mar 03

- Russian Stocks Crash As Central Bank Scrambles, Hikes Rates Most Since 1998 Default (ZeroHedge, March 3, 2014):

Following a 150bps rate hike by the central bank – the largest since the 1998 default -desperate to halt capital outflows and a collapsing currency, Russian stocks have crashed 11% led by some of the country’s largest banks. USDRUB rose to just shy of 37 – the weakest RUB rate on record – but rallied back a little on the rate hike but the MICEX stock index tumbled 11% to almost 2-year lows with Sberbank (Russia’s largest bank) down 17% and VTB (2nd largest bank) down 20%. Between the threat of economic sanctions from the West and simple risk-aversion-based capital flight, as one analyst noted, “uncertainty risks a further escalation in domestic capital outflow.”

MICEX is down 11% today alone…

Russian Stocks Crash As Central Bank Scrambles, Hikes Rates Most Since 1998 Default

Ruble at record lows against the USD… Continue reading »

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Feb 06

- Argentine Banking System Archives Destroyed By Deadly Fire (ZeroHedge, Feb 5, 2014):

While we are sure it is a very sad coincidence, on the day when Argentina decrees limits on the FX positions banks can hold and the Argentine Central Bank’s reserves accounting is questioned publically, a massive fire – killing 9 people – has destroyed a warehouse archiving banking system documents. As The Washington Post reports, the fire at the Iron Mountain warehouse (which purportedly had multiple protections against fire, including advanced systems that can detect and quench flames without damaging important documents) took hours to control and the sprawling building appeared to be ruined. The cause of the fire wasn’t immediately clear – though we suggest smelling Fernandez’ hands…

Argentine Banking System Archives Destroyed By Deadly Fire

We noted yesterday that there are major questions over Argentina’s reserve honesty

Continue reading »

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Feb 03

- How Central Banks Cause Income Inequality (Ludwig von Mises Institute, Feb 1, 2014):

The gap between the rich and poor continues to grow. The wealthiest 1 percent held 8 percent of the economic pie in 1975 but now hold over 20 percent. This is a striking change from the 1950s and 1960s when their share of all incomes was slightly over 10 percent. A study by Emmanuel Saez found that between 2009 and 2012 the real incomes of the top 1 percent jumped 31.4 percent. The richest 10 percent now receive 50.5 percent of all incomes, the largest share since data was first recorded in 1917. The wealthiest are becoming disproportionally wealthier at an ever increasing rate.

How Central Banks Cause Income Inequality

Most of the literature on income inequalities is written by professors from the sociology departments of universities. They have identified factors such as technology, the reduced role of labor unions, the decline in the real value of the minimum wage, and, everyone’s favorite scapegoat, the growing importance of China.

Those factors may have played a role, but there are really two overriding factors that are the real cause of income differentials. One is desirable and justified while the other is the exact opposite.

Continue reading »

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Jan 22

- Things That Make You Go Hmmm… Like Gold Bullion, Gordon Brown, & A Growling Bundesbank (ZeroHedge, Jan 21, 2014):

2013 was an absolutely seismic year for gold, but, as Grant Williams details in his latest letter, the way in which the tectonic plates shifted has yet to be fully understood. Simply put, the gold in every central bank’s possession around the world is the property of the citizens of that country – not of the incumbent politicians or central bankers. Consequently, if the people want it audited, there shouldn’t be any reason to say no … unless… Williams firmly believes that in the years to come, when we look back at the great game being played in gold, we will pinpoint January 16, 2013, as the day when it all began to unravel – the day the Bundesbank blinked and demanded its gold… Continue reading »

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Jan 18

- Sprott: “Manipulation Of Gold By Central Banks Cannot Continue In 2014″ (ZeroHedge, Jan 17, 2014):

With Deutsche Bank quitting the price-setting panel for gold and Bafin bearing down on the manipulators, Eric Sprott provides some more color on where the manipulation in the precious metals markets is underway (and when it will end)…

Submitted by Eric Sprott of Sprott Global Resource Investments,

Introduction

As we very well know, 2013 was a difficult but also puzzling year for precious metals investors. The price of gold, silver and their related equities declined by a significant amount while demand for physical bullion from emerging markets and their Central Banks was exceptionally strong.

Continue reading »

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Jan 07

- Forecast 2014 — Burning Down the House (By James Howard Kunstler, Jan 6, 2014):

Many of us in the Long Emergency crowd and like-minded brother-and-sisterhoods remain perplexed by the amazing stasis in our national life, despite the gathering tsunami of forces arrayed to rock our economy, our culture, and our politics. Nothing has yielded to these forces already in motion, so far. Nothing changes, nothing gives, yet. It’s like being buried alive in Jell-O. It’s embarrassing to appear so out-of-tune with the consensus, but we persevere like good soldiers in a just war.

Paper and digital markets levitate, central banks pull out all the stops of their magical reality-tweaking machine to manipulate everything, accounting fraud pervades public and private enterprise, everything is mis-priced, all official statistics are lies of one kind or another, the regulating authorities sit on their hands, lost in raptures of online pornography (or dreams of future employment at Goldman Sachs), the news media sprinkles wishful-thinking propaganda about a mythical “recovery” and the “shale gas miracle” on a credulous public desperate to believe, the routine swindles of medicine get more cruel and blatant each month, a tiny cohort of financial vampire squids suck in all the nominal wealth of society, and everybody else is left whirling down the drain of posterity in a vortex of diminishing returns and scuttled expectations.

Continue reading »

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Jan 03

- Four key lessons from 2013 (Sovereign Man, Jan 2, 2014):

1) Politicians believe there are no consequences for destroying our liberty…

Stimulus and response. That’s the easiest way of summing this up. When politicians steal, and there are no consequences, they’re going to keep stealing.

Cyprus proved this point handily. The government froze bank accounts for everyone in the country (of course, the big bosses got their money out in time). And yet, there was no violent revolution in the streets. People just accepted it.

Poland nationalized pensions. Argentina imposed severe capital controls. The French are taxing everything under the sun. The US government was caught red-handed spying on… everyone.

Continue reading »

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Dec 06

- Kyle Bass Warns When “Everyone Is ‘Beggaring Thy Neighbor’… There Will Be Consequences” (ZeroHedge, Dec 5, 2013)

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Dec 05

- The Complete And Unabridged History Of Gold Manipulation (ZeroHedge, Dec 4, 2013):

On November 1st, 1961, an agreement was reached between the central banks of the United States and seven European countries to cooperate in achieving a shared, and very clearly stated, aim.

The agreement became known as the London Gold Pool, and it had a very explicit purpose: to keep the price of gold suppressed “under control” and pegged regulated at $35/oz. through interventions in the London gold market whenever the price got to be a little… frisky.

The construct was a simple one.

The eight central banks would all chip in an amount of gold to the initial “kitty.” Then they would sell enough of the pooled gold to cap any price rises and then replace that which they had been forced to sell on any subsequent weakness.

*Statement is subject to standard terms and conditions and is not necessarily reflective of any evidence. Government entities are excluded from inclusion based on the fact that we can’t really do anything about them and anyway; they could put us out of business; and it would make things really, really bad for them. Also, bullion banks are not covered under this statement because we were told to turn a blind eye; but individual investors are, and we can categorically confirm that, to the best of our knowledge, no individuals are manipulating the precious metals markets (at this time).

But, as Grant Williams explains in this excellent and complete summary of the history of Gold price manipulation, things don’t always go as planned… Continue reading »

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Nov 30

- Marc Faber: “We Are In A Gigantic Speculative Bubble” (ZeroHedge, Nov 29, 2013):

We have to be careful of these kind of exponentially rising markets,” chides Marc Faber, adding that he “sees no value in stocks.” Fearful of shorting, however, because “the bubble in all asset prices” can keep going due to the printing of money by world central banks, Faber explains to a blind Steve Liesman the difference between over-valuation and bubbles (as we noted here), warning that “future return expectations from stocks are now very low.”

Nope no bubble here…

Along with this pattern…

which has emerged with striking fidelity since 2010, we observe a variety of other features typically associated with dangerous extremes: Continue reading »

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Nov 17

- Nobel Winner Dares To Go There: “No Reason To Fear Deflation… Greece May Benefit From Gold Standard” (ZeroHedge, Nov 16, 2013):

“Historically, there is no reason to fear deflation,” Nobel Laureate Thomas Sargent explains to Germany’s Wiwo.de, “we all benefit from lower prices.” Crucially, he continues, “countries with declining prices, such as Greece, must improve the competitiveness they have lost in recent years,” requiring falling wages and rising productivity (and falling unit labor costs) which will lead to companies cutting prices, “this is not a dangerous deflation, but part of the necessary correction so that these countries are internationally competitive again.” That central banks pursue an inflation rate of around 2%, Sargent blasts, is because they consider it their job to “make bad debt good debt,” adding that inflation is “a major redistribution machine – reducing the real debt burden for the benefit of creditors and devaluing the assets of the creditors.” A return to a gold standard,he concludes, to prevent governments and central banks from limitless money-printing “would not be foolish.”

Thomas Sargent (via Wiwo.de) dares to go there (and is likely about to be stripped of his Nobel)… Continue reading »

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Sep 16

- On The “Lunatics” At The Fed” Bill Fleckenstein Warns “As The Fantasy Dies, Gold Will Soar” (ZeroHedge, Sep 16, 2016):

“Right now, people continue to believe that the same idiots that created all of these problems, namely the central banks, are going to somehow get us out of it with the exact same policies that got us into it,” is the subtle manner in which the outspoken Bill Fleckenstein describes the ‘fantasy’ in which most Americans live during this wide-reaching interview. “We’ve had so much artificial stimulus, and we’ve misallocated so much capital;” he adds, warning that Americans “believe in the lunatics at the Fed, and the rest of the Western world is that way (as well).” His conclusion is clear, “as the fantasy dies, then they will understand the need to own gold,” and if the Fed tapers and is forced to un-Taper, “more people will see that the Fed is trapped.”

Via King World News,

How will the economy handle higher rates?

“It’s not going to handle it. That’s why if the Fed tapers and the bonds start acting funny, they will end tapering because they will start thinking, ‘Geez, we can’t have this happen.’

Then, more people will see that the Fed is trapped.

Via SHFTPlan blog,

Right now, people continue to believe that the same idiots that created all of these problems, namely the central banks, are going to somehow get us out of it with the exact same policies that got us into it, only at a much higher (aggressive) level of pursuing those policies.

We’ve had so much artificial stimulus, and we’ve misallocated so much capital. And over the couple of decades we’ve been doing this we’ve kind of broken the economy and the financial system.  So, I don’t think you can worry about what’s on the other side.  We haven’t even gotten people to understand the charade that we have.

What the masses have done over and over again is to believe one more time that it’s all going to be OK … We are in a unique moment in history.  The whole world is printing confetti, and (yet) people seem to think that’s going to work out fine. Continue reading »

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Aug 02

- Marc Faber On Central Banker Actions: “Insane People Don’t Realize They’re Insane” (ZeroHedge, July 30, 2013):

While we know that the Fed will be forced to taper in the short-term as it desperately avoids the ‘appearance’ of outright monetization that a falling deficit will create, Marc Faber sums up the endgame perfectly in this clip: “I don’t think they will come to their senses for the simple reason that insane people don’t realize that they are insane.” Faber adds, “they think they’re doing a great job,” and in fact they believe – in general – that “if anything, we need to do more, not less.” The ‘forced-taper-to-plunge-to-untaper’ progression means it’s going to get worse; as Faber notes, QE/printing will continued indefinitely “until the system breaks down.” Having printed this much money with such dismal results, Faber concludes, “the Fed is completely clueless.”
Faber covers a wide-range of topics in this excellent interview – from Fed insanity and cluelessness to Gold confiscation and from China’s dishonesty to the destabilizing reality of Stability-hoping Keynesianism…

Will the Fed stop printing? Continue reading »

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Jul 27

Today I talked to several supposedly intelligent people among them economists, doctors & computer scientists.

ALL OF THEM agree that the greatest financial collapse in world history is coming but EVEN the economists are so brainwashed nowadays that they think there’s no need to do nothing about it.

And so they don’t care about preparing themselves in order to save their assets.

They really do not care if they would lose 60% of their wealth overnight.

They literally think that the very next day right after the collapse the baker will continue to bake bread and everything will be just fine.

What can you say?

“There will be, in the next generation or so, a pharmacological method of making people love their servitude, and producing dictatorship without tears, so to speak, producing a kind of painless concentration camp for entire societies, so that people will in fact have their liberties taken away from them, but will rather enjoy it, because they will be distracted from any desire to rebel by propaganda or brainwashing, or brainwashing enhanced by pharmacological methods. And this seems to be the final revolution.”
- Aldous Huxley, 1961


- Here’s what happens when a central bank goes bust (Sovereign Man, July 26, 2013):

July 26, 2013
Kiev, Ukraine

Over the past several decades, people around the world have become so brainwashed that few people really give much thought anymore to the safety of their currency.

It’s not something people really understand… there’s apparently some Wizard of Oz type figure at the top of the hill pulling all the levers of the monetary system. And we just trust them to be good guys.

This is partially true. Today’s financial system is dominated by central bankers who have been awarded nearly dictatorial control of global money supply.

In allowing them to set interest rates, they are able to control the ‘price’ of money, thus controlling the price of… everything.

This power rests primarily in the hands of four men who control roughly 75% of the entire world money supply: Continue reading »

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Jul 17

- Things That Make You Go Hmmm… Like Gold (ZeroHedge, July 16, 2013)

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Jun 30

- Jim Rogers: “This Is Too Insane–And I’m Afraid We’re All Going To Suffer For The Rest Of This Decade” (Bull Market Thinking, June 26, 2013):

I was able to reconnect with Jim Rogers this morning out of Spain, legendary co-founder of the Quantum Fund with George Soros, author of Hot Commodities, and chairman of the private Beeland Holdings.

It was an especially powerful interview, as Jim spoke towards the relentless downward pressure on gold, the upward explosion in interest rates, central bank money printing, and how to protect yourself ahead of the disastrous times he sees coming.

When asked if we’re seeing forced liquidation leading the smash down in gold this morning, Jim said, “We certainly are. There are a lot of leveraged players who are now being forced to sell. Usually when you have this kind of forced liquidation, you’re getting closer to a bottom, maybe not the final bottom, but certainly close to a bottom. I even bought a little bit [today].”

With regard to the intense bearish news stories being published on gold, Jim suggested investors shouldn’t ”Pay [much] attention to other people. I pay attention to what’s going on…Obviously with gold collapsing I know about that—but I don’t listen to other people.”

Continue reading »

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Jun 23

- The Bank Of International Settlements Warns The Monetary Kool-Aid Party Is Over (ZeroHedge, June 23, 2013):

When a month ago the Central Banks’ Central Bank, aka the Bank of International Settlements (or BIS) in Basel where the MIT central-planning braintrust meets every few months to decide the fate of the world, warned that the Fed-induced collateral shortage is distorting the markets, few paid attention. That the implication behind said warning was that QE can not continue at the current pace, was just as lost. A few short weeks later following the biggest plunge in markets since 2011 in the aftermath of Bernanke’s taper tantrum, some are finally willing to listen.However, they will certainly not like what the BIS just released as a follow up, both in the form of the BIS’ 83rd Annual Report, and the speech by Jaime Caruana to commemorate said annual meeting. For the simple reason that it reads like a Zero Hedge sermon, which says, almost verbatim, that the days of kicking the can via flawed monetary policy are now over, and that the time for central banks to head for the exit has finally come.

The BIS message, as summarized by the FT, is that “central banks must head for the exit and stop trying to spur a global economic recovery… cheap and plentiful central bank money had merely bought time, warning that more bond buying would retard the global economy’s return to health by delaying adjustments to governments’ and households’ balance sheets.” Continue reading »

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Jun 06

- India Central Bank Prohibits Sales Of Gold Coins (ZeroHedge, June 6, 2013):

Two weeks ago, with its current account getting crushed by relentless gold imports, India’s finance minister Chidambaram literally begged the people to stop buying gold. Judging by the popular response, the ongoing physical shortage, and last night’s increase in Indian gold import duties from 6% to 8%, appealing to people’s feeling when it comes to the choice of fiat vs physical, has failed miserably. So the FinMin Chidambaram has decided to escalate.

Per Reuters:

The Reserve Bank of India has advised banks against selling gold coins to retail customers, Finance Minister P. Chidambaram said on Thursday, a day after he raised gold import duty to try to ease pressure on India’s bloated current account deficit.

Well, if there ever was one sure way to send demand for any product through the roof (guns, ammo, etc), it is for the government to prohibit its outright sale. What follows next, almost without fail, is a panicked, chaotic buying scramble.

Gold imports by India, the world’s biggest buyer of bullion, surged to
162 tonnes in May — more than twice the monthly average in the record
year of 2011.

“I think the Reserve Bank has advised banks that they should not sell gold coins,” said Chidambaram, while speaking at an event in Mumbai.

Chidambaram also urged banks to advise their customers not to invest in gold.

Why? If it is not clear by now, here is the explanation: there is simply not enough gold to satisfy demand at the current artificially downward-manipulated price, no matter what propaganda script is being spun on Verizon TV at any given moment. And with India’s idiotic decree, even more gold will be purchased at these prices.

Dear India – here is a simple way to limit demand: price.

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