I Blame The Central Banks
After chatting with our buddy Chris Martenson I decided to re-post this article he wrote last week. No doubt the central banks have put the world’s financial system in a situation that makes no sense but they are clearly drinking their own kool-aid. I believe we are going to see more aggressive monetary policies as time ticks on. One country will be the first to collapse. There are just so many that it could be.
The central bankers are the enablers, you have said that so don’t blame the politicians they are the puppets. Get your priorities right, who controls the purse strings.
The politicians who are the puppets sell there souls to the elite for campaign money.
The central bankers or fed is nominated by the puppets before they even sign on the dotted line. The elite make sure to let them know the terms.
There all at fault imo..But I lean more towards the politicians. To many powers behind the scenes driving these forces..
CFS, at first I was going to argue with you on your point, but then I remembered the parable of the scorpion, the frog, and the ride across the river. We all know the story, the scorpion ask the frog for a ride across the river. The frog says sure as long as you don’t sting me, the scorpion agrees. Half way across the river the scoprian stings the frog, the frog asks “why?”. The scorpion responds, “Its in my nature”.
To me the scorpion represent the Central Banks (evil), and the frogs are politicians (fools). They did EXACTLY what was in their nature. That right both. Politicians won’t get it until the SHTF, and then claim they didn’t see it coming. Fools!
The signs are everywhere, the real question is when will it hit critical mass. It could happen tomorrow, next year, or 50 years from now (doubt it). My guess on this is that we are still at least a year away from critical mass. The general public is just starting to wake up, but when they do, look out.
Perception is reality, to the individual. This is the real battle.
It’s a turtle not a frog
I agree with you 100% CFS that the Fed is not responsible. Maybe I have been giving Chris Martenson more credit for thoughtfulness than he deserves because this last article from him ignores history and thus comes across sounding idiotic.
Take a look at a chart of 30 year US bonds that is 222 years long and tell me if you also think the Fed is to blame for the obvious cycle pattern that emerges during that time period. Notice the rise and fall, the distances between bottoms and tops for example.
Take note that there was not in fact a Federal Reserve for more than half the charts life.
Very interestingly, the tops are higher on each cycle and the bottoms are lower. This likely would have happened no matter who was in charge of monetary policy as it is the business cycle, introductions in technology and efficiency and the rise of services amongst many other effects that are dictating the moves.
The Fed is most certainly NOT to blame for the cycle. Especially that part where there was not even a Fed to speak of. Chris knows better. He should follow up his article with an apology to readers for deliberately misleading them. I mean, Jesus, how stupid does he think the audience is anyway? He ought to stick that pitchfork right where….er….lets keep this civil maybe…..
Interest Rates on US Thirty Year Bonds Going Back to 1790 — Barry Ritholtz
http://www.ritholtz.com/blog/2012/01/222-years-of-long-term-interest-rates/
Birdman, when I read your posts I can’t help but think that you are a lobbyist for the banks.
Come on Dick. Not all of us go through life eating up the anti-government, anti-Fed, anti-banking, pro-gold propaganda that is the meat and potatoes of the conspiracy crowd that dominates most gold based web sites.
Do you really think we are all fools or something just because our views are in conflict with your bias? Seriously, the bullsh*t that passes for knowledge some days is really beyond belief.
Chris Martenson at least used to offer some common sense and balance but he has obviously gotten desperate as stocks rose, gold fell and his readership has fallen off. This latest offering is maybe the most manipulative thing he has written lately.
Enough said. Your balance compass appears to be broken too. You perhaps need to learn to rebut the topic for a change. Did you even look at the chart before offering your usual personal snide comment directed to me?
Let me help. The topic was the Fed and why it has blown the biggest bond bubble and why they should therefore be punished (in case you cannot figure it out). Now please offer a comment on that subject instead of remarking on my imagined leanings.
How about Birdman just being a lobbyist for the truth something that those doom-and gloomers and fear-mongers don’t seem to care about. All of them misuse data and tell half-truths at times which leads them to make some horrifying conclusions that have little or no chance of happening even though they act like it is guaranteed.
You are telling me JMiller. They play with data and numbers to suit an agenda. Some of these guys are pretty bright too so we shall assume it is deliberate and they have an axe to grind.
My blood really boiled though when that guy suggests the public maybe get the literal pitchforks out while he implores us not to forget whose fault the bursting of the bond bubble really is.
WTF…is he running for office or something and laying the groundwork now? Or is it maybe he thinks he can say anything he wants in his articles including incitements to violence while ignoring historical data. He obviously does not understand who his readership is or he does not care.
The thing is….the bond bubble will burst. A lot of people are going to hurt. Some will be wiped out completely as rates begin to rise, debt payments falter and we enter a prolonged period of slow or negative growth.
There is not going to be much of a surprise that a coincidence exists between the bursting of asset bubbles such as falling stock and home values and rising rates in an environment of increasing unemployment either.
We will see the inverse of our current experience which is to say a negative wealth effect is coming. So people WILL be angry and they will be looking for someone to blame. That is why this kind of article is dangerous. Because it simplifies a complex problem into who should pay a penalty and who should be a judge.
Maybe the best thing we can do for now is to stop giving these guys airtime in our brains. Just tune them out and don’t visit their websites. Martenson is dead wrong that the Fed is to blame. We are in the midst of a multi-decade economic and business cycle that the powers that be really have very little control over.
Just because nothing really bad hasn’t happened yet
certainly doesn’t mean it won’t either.
All of you posters wouldn’t be here if you knew what
the future was 10 years ago. Maybe as far back as
a short 3 years ago. Gold bulls in action buying at
the top…. blogging BS at that time. Whoever you are
but right now all that matters is whats coming down
the pike.
I THINK THE BIG SHOCK OF OUR LIVES IS READY TO BE….
UNLEASHED !!!!!!!!!!!! Are you still being brainwashed ????
You really believe we can go on with all these derivatives,
leverage, fiat money that has never been stores of value
and is not to be trusted to park any wealth temporarily,
spending into oblivion, debt piled through and into far
reaching into the next universe and many more ponzi
schemes to keep the charade going.
If you want to be the one who decides that embracing
this high wire act thats in play its your own doing and
peril.
What were you thinking 3, 5, or 10 years ago. We’re you
right about making good financial decisions or did you
miss the mark by a nice long shot.
BE HONEST and don’t tell me you know whats coming
because its certainly not anything remotely resembling
Disneyland.
I’M BETTING AGAINST ANYTHING GOOD AND QUITE
FRANKLY ITS GOING BE THE OPPOSITE OF GOOD.
I like those apples and not listening to pipe dreams
about our wonderful state.
Its not wonderful and its off the charts into think fog of darkness.
ITS SO DAMN THICK YOU CAN CUT IT WITH A KNIFE SOON WITHIN
A FEW YEARS.
Oh sure they have been saying that for a long time.
I know its a….KILLJOY….but its time to realize we have
entered a time now that even the dark ages would fear.
Remind yourself of the dangers instead of accepting the
brainwashing to sooth you and comfort you to the guillotine.
UNFORTUNATELY THATS WHERE THIS IS GOING.
Its not a slow burn….ha..ha…thats a joke…..ridiculous.
Stupidous thing I have ever heard. Thats bloggers for ya
and anaylists who can’t see the big fork in the road ahead.
GUARANTEED. …OFF THE DAMN CLIFF !!!!!!
Oh and gold will rise very slowly for the next 20 years.
GOOD NITE !!!!!!!!!!!!!!! and go back to a school too.
HOW PREPOSTEROUS …..LOL….what a bunch of bull crap.
Of course the Fed is to blame. Their mere existence is a slap in the face to workers/savers
END THE FED!!!
The FED is to blame. Precisely, because on the gold standard we had
stable money.
All you have to do is look at the last 60 years.
ITS A F..ing …DISASTER MAN!!!!!!!!!!!!!!!!!!!
Going to get much worse to keep the ponzi schemes going.
Who said the FED is not to blame….BULL CRAP !!!!!!!
Unfortunately, Joe Average doesn’t much know or much care about the Fed. Just like the Joe Average didn’t bother to learn the consequences of Obamacare. There was only a backlash to Obamacare when Joe Average saw his premiums go up, and learned that his doctor was not going to accept his new coverage. Similarly, Joe Average won’t care about the Fed until he sees his 401K wiped out. By then, it will be too late.
I disagree that the Central Banks are to blame. They are merely the enablers of the corrupt governments who borrow too much, because they spend too much.
I blame the politicians who spend too much, to buy votes by virtue of their overspending, or to enrich their cronies (and hence themselves) by virtue of their over-spending.