Is the election really the reason why investors are scared?
As the Fed’s Beige Book, which was released this afternoon stated, the US election is partially responsible for the US economic uncertainty?
The fact is the Beige Book told us what we already knew and what we already heard before. Now eyes will turn to the ECB who is meeting tonight then the Fed in 2 weeks. The one aspect that is noteworthy recently is Angela Merkel’s party getting beat (pretty badly) in their home state. This is showing how the German people are starting to fight back against a continued system that is not helping out the economy.
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Central banks & Satanists have the world at the brink
And maybe worse than that is the prayerlessness of most of the world.
FWIW I believe Merkel is paying for her stance on refugees as much as anything to do with the economy.
Gary Savage yesterday
http://www.howestreet.com/audio/Savage_Gary_2016_09__06.mp3
how come doc dont comment when his predictions dont follow through
The Pentagon says a Russian fighter plane flew within about 10ft (3m) of one of its reconnaissance aircraft operating over the Black Sea.
US officials described the intercept by the SU-27 jet on Wednesday as “dangerous and unprofessional”.
Russia’s defence ministry said the US plane had been approaching Russian territory and the SU-27 pilots had adhered to international rules.
Yep wonder how that would go if Russia flew close to US territory
The US is the ‘exceptional country’. Therefore the rules do not apply to them.
Yesterday David Stockman published a fascinating article titled “It Won’ Be Long Now, The End Game Of Central Banking Is Nigh ” where he pointed out that the ECB is running out of sovereign debt to buy. That’s something of a revelation for a lot of us even though just such an event was predicted at the outset of its purchase program.
Similarly, the Bank of Japan is now the largest single holder of its own nations debt with a whopping 40% of all public debt in its portfolio. Central Banks across the globe have taken to snapping up every imaginable asset that they can get their hands on.
While China, Russia and Turkey (among others) gorge themselves on gold, the more advanced economy Central Banks have instead shown a preference for absorbing debt and equities.
This is what ZeroHedge has come to call the biggest leveraged buyout of assets in all history. And they are not far wrong in my opinion. They may be genius for recognizing it before anyone else.
Several years back on this site I wrote a brief article arguing that if gold was really so important to the worlds monetary system then why did the Federal Reserve (who was engaged in a mammoth Quantitative Easing Program at the time) not just print up all the dollars they needed and buy whatever was available.
It was a good question but I had no answer for it at the time. The Fed was in fact NOT buying up gold but instead concentrating on debt and mortgage backed securities while presumptively playing in the futures market to manage commodities including precious metals.
But it did not matter in the big picture. Across the other side of the globe the Chinese were already doing the heavy lifting to absorb whatever excess gold came to the market while hoarding copper by the thousand tonne. They supposedly sold off treasuries to do that just as have Turkey and Russia.
And not only that but in Europe the Sovereign wealth fund of Norway and the Swiss National Bank among others had taken a keen interest in gorging on public company stock.
So what we have seen is that collectively the worlds CB’s have become the largest single owners of every major asset class available. And this has now gone to the point that in some cases they will have a majority share (European Bonds with a half percent yield is our example here today).
In secondary cases they collectively already have absolute control. And that assumes or perhaps implies that they have carried out just such purchases by high level agreements. The ECB for example is not the only CB that buys European sovereign debt.
What is interesting is how all of this has happened right in front of our eyes without anyone really catching on that this might be an organized effort. We simply cannot understand the magnitude of this effort nor its impact on our markets in isolation by analyzing one country at a time.
We need a global view. We need to understand what this means when we add up all the efforts together and I suspect most of us have missed out in that regard. So while Russia dumped Treasuries to buy gold, the Fed ginned up ever more dollars to absorb that US debt while sopping up a variety of other domestic paper. Both efforts are essentially the same though if we appreciate what money may become down the road.
For example almost all the theories about why China is buying so much gold might be dead wrong if they are really just one part of a global organized machinery to take state control of most market assets.
What exactly does it mean when as a group they will have effective majority control of all the worlds assets such as commodities, stocks and bonds in the next few years? This is in fact what I see happening. Even now the CB’s are looking for new ways to deploy the ginned up cash they create on a printing press to acquire real assets or other top rated debt obligations.
They are literally turning paper into hard assets in front of our very eyes and hardly a person in ten thousand seems to recognize what is actually taking place. And in the process, those countries who were engaged in this effort will end up being the beneficial owners of just about everything of value on planet Earth while leaving dozens of uninformed nations out of the sweepstakes altogether.
But whats the end game? Is it possible that a new currency really is coming and that on the inside that is well known which has compelled the CB’s to secure their own nations wealth by taking ownership of stocks and bonds and precious metals at cheap prices? Was the Credit Crisis therefore just a cover or a ruse to make an opportunity for this to happen?
We really don’t know for a fact. What we do know though is that no matter how many times an analyst claims the CB’s have run out of firepower they are wrong and that even as we speak they are taking effective control over everything of value all at once.
With Japan buying up the majority of its ETF’s and soon going to direct stock purchases along with the ECB and possibly even the Fed then those participating Central Banks will effectively be in a position to control almost every price that the free market used to be charged with determining.
And all they need do is sell and buy the assets among themselves. In doing so they might actually achieve the Holy Grail of market management when in the process of control they literally eliminate the outward signatures that tell us where we are at in the business cycle.
I mean to suggest that with unlimited fiat money at their disposal and the subsequent ownership of most debt, equity and commodity assets they will be able to cooperatively set prices at any level they choose simply by trading among themselves!
Well they already control currencies. What else will be left for them to manage once everything comes under the control of a few key CB’s? But of course this also implies that business itself will be beholden to authorities in a way they never imagined. Seats must be reserved at company board levels for the largest owners of those public bodies.
I hope readers can appreciate where I am going with this. The variables of what might really be coming down the road are endless but I suspect it does end with a world government as many have long postulated. And clearly the key players will be the US, Russia, China, Turkey (unbelievable but true), what remains of the European Union, England and a few key commodity nations.
And just forget the idea that Central Banks will have to unload all those assets at a loss in the future. What nobody is considering is that those assets might never come to the market again EVER.
Just think about that for a minute.
So David Stockman is on the right path with many of his facts…..he just gets the final conclusion all wrong. This is not the end of Central Banking at all. It is merely the first few innings and they are stronger than ever.
It Won’t Be Long Now—-The End Game Of Central Banking Is Nigh
http://davidstockmanscontracorner.com/it-wont-be-long-now-the-end-game-of-central-banking-is-nigh/
If any of you here read my post above and wondered what the Hell I am talking about I just want to ask you to consider a what-if scenario. What if the very essence and beating heart of the marketplace could effectively be managed by using the new tools of the worlds central banks which is pricing power over every major asset class on Earth?
By beating heart, I refer of course to interest AND inflation rates. See that is the key. You need to have control of both to make either one really meaningful to the other. and the way to achieve the goal is to own both the resource and the means of production.
That is basically what is now underway. We just have not got to the final acts yet.
And what if the zero bound really does not matter in the big picture once you take the power of inflation and resource control into account? I think what some of us may not realize is just how big a game Central Bank interventions really are as they gradually close in on the new era of total control.
We might even become crash proof once that is achieved (no matter how improbable that may sound right now). But if you or I could pull the levers on currency fluctuations, interest rates and inflation what might the world look like in the future?
And if such a thing were done cooperatively the reach is entirely global. I am only looking at some of the basic facts here btw and trying to divine what it all means. You may come to different conclusions. But these guys are now buying everything known to man and between them and our governments who are doing a good job of managing most other wealth including lands, student debt and services of all kind there really isn’t much left over to the average guy except stamp collecting.
A cabal of a handful of the worlds major nations may now be within reach of price management of everything from the cost of money to the inflation rate on a bushel of corn in the US Midwest. And in the process every aspect of what we used to think was the free market will vanish into the machinery and magic of global governance via the nice buyers at the Central Banks who made it all possible.
Whose the boss then?
This is a very interesting discussion you bring up Bird. I am going to take some time and get my head around this topic. Thanks for bringing it up!
So I’m not crazy?
Thanks Cory.
Of course your not crazy Bird, the banks could end up owning everything.
Thats been the Rothchild goal since waterloo hasnt it?
Heck, wasnt it just a decade or so after that some people figured they owned half the wealth on the planet?
Its surpriseing there is anything left now really.
We mortals are just ripe for being picked. We must be part of the crop!
Fear not….
Philippians 3:20
Bird,
Good post. I’ve been wondering the same thing. Maybe the CBs are absorbing the debt to write it off? Maybe when the stystem changes from fiat to asset backed that’s the plan?
With the low bond yeilds and investors chasing yeilds, they have pushed investors into high yeild junk bonds that are the biggest potential bubble. When the stock prices fall ( and they will ) those bonds are worthless. And this time, there’s no QE to save it…
I wish I knew what the real plan was. I really do. Better buy some stock though before its all gone since it looks like thats the direction we are heading in.
IMO, they are unwinding the debt system before our eyes.
Simply put, as easy as it is to create fiat money, it’s easy to charge-off its debt. Derivatives are 65% of the money supply. A CB can charge-off that debt and then monetize gold, oil or even a countries in ground assets to create liquidity. Without ever changing the money supply or creating hyper inflation.
All they need to do is create a crisis for the masses to go along with the idea. That’s coming soon, I’m certain😉
Its been awhile since anyone talked about the CBs buying everything up.
Maybe it is possible, as long as people accept the “cash” I guess it is.
Couldnt help but think of some David Icke lectures when reading your post Bird.
SilverDollar,
That damn sure filled in a Big blank! Thanks
We just can’t make this stuff up bb. Crazy isn’t it? But facts are facts and they are indeed buying a very significant piece of the markets. Piece by piece year after year. In aggregate its actually kind of mind blowing. Its why I suspect there is more to it than meets the eye. We are just not privy to the agenda.
Well, there are “conspiracy nuts” that feel we already have 1 world government.
For a long time I have wondered if its not all the same bank.
Thats why I mention D Icke, he has been saying for some time thats the case, or goal.
He really seems to have connected dots, then he mentions aliens.
Like Hudas, connects dots and mentions aliens.
If they are actually right, everything is controlled, like the “Matrix”.
Kind of a leap for me.
John Rubino yesterday:
London closes and DOWN we go!!!
More circumstantial evidence that the LBMA is short of physical meta?
Not so with crude….up 3.78%.
Looks like we are confirming the decline I was talking about yesterday. I really don’t know that gold will fall much below 1200 though. A few bucks at most. That’s as far as I can project it even in a worst case scenario right now. Just technical trading is all…..nothing nefarious about this Jerry.
Weekly 1323.88….close below that for the week,and we might see if 1307 gets a retest. Nefarious is the System ,fractional reserve banking 🙂
Bob M mentions a good buying opportunity coming our way in a few weeks.
He is definately not saying anything nefarious, just normal markets going up and down.
Remember……” nobody knows anything.”..Per Bob M.
you guys are wierd. I think this is the 5th time this week you guys are talking about some revived roman empire. Don’t know what you guys are talking about.