Tag Archive: central banks

“It’s Prohibited By Law” – A Problem Emerges For Japan’s “Helicopter Money” Plans

2016-07-14

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2016-07-14

Over the past four days, risk assets have been on a tear, led by the collapsing Yen and soaring Nikkei, as the market has digested daily news that - as we predicted last week - Bernanke has been urging Japan to become the first developed country to unleash the monetary helicopter, in which the central banks directly funds government fiscal spending, most recently with an overnight report that Bernanke has pushed Abe and Kuroda to sell perpetual...

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Alan “Bubbles” Greenspan Returns to Gold

Under a gold standard, the amount of credit that an economy can support is determined by the economy’s tangible assets, since every credit instrument is ultimately a claim on some tangible asset. […] The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit.

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SIBOR Forex Banking Fraud – another FX rate rigging scandal

2016-07-06

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2016-07-06

Forex has been the big banks secret gold mine, supporting their other losing operations (like normal banking business, lending, etc.). To a large extent this has been unraveling, and this SIBOR lawsuit is another attack on their risk free profit center (FX). Read the entire lawsuit released by Elite E Services here in full.

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ETF Securities Reports Biggest One-Day Gold Inflow Since Financial Crisis

2016-07-04

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2016-07-04

It never ceases to amaze how vastly different the investment styles of gold paper vs physical traders are: while we have documented previously how the latter tend to buy progressively more the lower the price (as traditional "buy low, buy more lower" investing would suggest), "investors" in gold paper-derivatives such as ETFs and ETPs are quite the opposite: in fact, they rarely buy until someone else is buying and generating momentum.

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Swiss Bond Yields all Negative up to 30 years: Greatest Bubble in Financial History

2016-07-02

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2016-07-02

yield curve Switzerland
Graham Summers says that central banks have lost control and investors are crazy. They pay the Swiss government for the right to own their bonds. One point is missing: Swiss rates are "more negative than others", because investors expect a slow appreciation of the Swiss franc.

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When the Deep State Controls All Wealth

2016-07-01

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2016-07-01

Helicopter money
The feds got out the knife in 1971. They changed the money system itself. They severed the link between gold and the dollar – and between value and price. It was so subtle almost no one objected… and so clever almost no one saw what it really meant. It took us more than 40 years to figure it out.

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Why the Fed Will Talk Down the Dollar

2016-07-01

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2016-07-01

And right now, in the wake of Brexit, tighter monetary policy is clearly not an option. Plus, a stronger dollar (by virtue of the “peg”) strengthens the Chinese Yuan and the Saudi Riyal… something neither country will tolerate.

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BofA: To Save Markets Central Banks Just Made Inequality And Populism Even Worse

2016-06-29

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2016-06-29

There is a large dose of irony to the post-Brexit market response: while on one hand stocks have soared and as of today the S&P500 has already recouped more than half its post-Brexit losses (the SPX sank 5.7% peak-to-trough since the referendum and has since bounced 3.5%) an even sharper reaction has been observed in bonds.

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“Brexit Sends A Clear Message To Sick Political Elite” Marc Faber Sees “Only Good Contagion”

2016-06-28

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2016-06-28

"We're moving into a global recession that has nothing to do with Brexit," warns Marc Faber stressing that Britain leaving the EU would not be disastrous, saying that if Switzerland can operate in a "single" market and outside of the EU so can Britain.

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In Surprising Development NIRP Starts To Work, Pushing Rich Swiss Savers Out Of Cash Into Stocks

2016-06-23

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2016-06-23

One of the rising laments against NIRP is that far from forcing savers to shift from cash and buy risky (or less risky) assets, it has done the opposite. Intuitively this makes sense: savers expecting a return on the cash they have saved over the years are forced to save even more in a world of ZIRP or NIRP, as instead of living off the interest, they have to build up even more prinicpal.

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Who Is The “European Movement” And Why The Answer May Change How You Vote On “Brexit”

2016-06-23

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2016-06-23

The UK has to choice: Remain as sovereign state or merge it into the undemocratic United States of Europe. Big business, banks, central banks and the IMF want to excercise their power through unelected officials. And wonder who is responsible for the "European Movement."

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The British Referendum And The Long Arm Of The Lawless

2016-06-23

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2016-06-23

Kings have long arms, many ears, and many eyes.” So read an English proverb dated back to the year of our Lord 1539. And thus was born an idiom that today translates to the very familiar Long Arm of the Law. It stands to reason that such a warning was born of feudal times when omnipotent and seemingly omnipresent monarchs personified the law.

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World’s Central Bankers Gathering At BIS’ Basel Tower Ahead Of Brexit Results

2016-06-22

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2016-06-22

What happens on the 18th floor of the main tower at Centralbahnplatz 2 in Basel, stays on the 18th floor of the main tower at Centralbahnplatz 2.

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Soft and Softer Silver Fundamentals

2016-06-21

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2016-06-21

Keith Weiner's weekly look on Gold. Gold and silver prices, Gold-Silver Price Ratio, Gold basis and co-basis and the dollar price, Silver basis and co-basis and the dollar price.

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JPMorgan CIO Crushes Cameron’s Scaremongery: Brexit “Hardly The Stuff Of Economic Calamity”

2016-06-16

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2016-06-16

First The Telegraph, then The Sun, and today The Spectator all came out on the "Leave" side of the Brexit debate. However, perhaps even more shocking to the establishment is the CIO of a major bank's asset management arm dismissing the apparent carna...

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IIF Chief Warns “Brexit Bigger Threat To Global Economy Than Lehman”

2016-06-15

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2016-06-15

As Brexit appears to gathering pace among British voters, Bloomberg Briefs interviews Hung Tan, executive managing director at the Institute of International Finance in Washington, DC., to understand the global impact of a decision by Britain to leav...

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Need Safe havens: CHF or Gold?

2016-06-09

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2016-06-09

In times of negative interest rates and falling earnings per share, gold is the ultimate safe haven. Due to negative rates, it is not the Swiss Franc.

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Visualizing “The 5000 Year Long Run” In 18 Stunning Charts

2016-06-09

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2016-06-09

In the long run, as someone once said, we are all dead, but in the meantime, as BofAML's Michael Hartnett provides a stunning tour de force of the last 5000 years illustrates long-run trends in the return, volatility, valuation & ownership of financi...

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The Global Monetary System Has Devalued 47 percent Over The Last 10 Years

2016-05-25

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2016-05-25

Authored by Paul Brodsky via Macro-Allocation.com, We have argued the inevitability of Fed-administered hyperinflation, prompted by a global slowdown and its negative impact on the ability to service and repay systemic debt. One of the most political...

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Three unintended consequences of NIRP

2016-05-24

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2016-05-24

Central bankers use low or negative interest rates so that it leads to more investment. For them interest rates are a consequence of the currently very low inflation rates. Patrick Watson argues differently: Falling prices are a consequence of low interest rates.

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