Showing posts with label ECB. Show all posts
Showing posts with label ECB. Show all posts

Thursday, September 18, 2014

Plateau of Permanent Addiction to Monetary Liquidity Injections


Here is one chart that should put everything in perspective, and explain why the world has reached a plateau of permanent addiction to monetary liquidity injections, and why nothing else matters.
Source: "JPM

Thursday, July 5, 2012

Anglo Central Banks Creating Inflation in a Global Currency War

For those of you familiar with the New World Order, read the post below.  If you are not familiar with the concept, start doing your research.  It will take you a while to put the pieces together.  Start with George Bush Sr's NWO speech on YouTube and then watch "The Invisible Empire".  

The New World Order has many different facets.  This particular post will look at the coordinated global central banks moves to "save the economy".  What the central banks really do is print money, lend it to their cartel buddies, and suck the life out of economies, like a vampire squid sucking the tit of the earth.

The following post came in on Mike Shedlock's global financial analysis blog.


Global Uncoordinated Panic; ECB Cuts Rates to Record Low, Deposit Rate to Zero; Bond Market Response Was "Not Enough"; Words "Heightened Uncertainty" Explained

Global Uncoordinated Panic
In a 45-Minute Salvo today, the ECB cuts rates to a record low 0.75 percent and reduced the deposit rate to zero. Meanwhile, the People’s Bank of China cut their benchmark borrowing costs (the second time in a month), and the Bank of England raised the size of its asset-purchase program.
Also note the central banks of Australia, the Czech Republic, Kazakhstan, Vietnam and Israel cut rates in June, while the Swiss National Bank is buying euros to defend its franc ceiling.
ECB president Mario Draghi said these events were not global coordinated easing.
I am willing to take him for his word. Thus, it's safe to assume that what has transpired was more akin to global uncoordinated panic.

Fed Uncertainty Principle
Now would be a good time to review the Fed Uncertainty Principle, especially corollaries one and two. 
Corollary Number One:The Fed has no idea where interest rates should be. Only a free market does. The Fed will be disingenuous about what it knows (nothing of use) and doesn't know (much more than it wants to admit), particularly in times of economic stress.

Corollary Number Two:The government/quasi-government body most responsible for creating this mess (the Fed), will attempt a big power grab, purportedly to fix whatever problems it creates. The bigger the mess it creates, the more power it will attempt to grab. Over time this leads to dangerously concentrated power into the hands of those who have already proven they do not know what they are doing.
What I said about the Fed apples to central banks in general.

So this particular post from Mish talks about the ECB, the Federal Reserve, and a few other market where central banks turned on the spicket.  Before you go any further, you should recognize that outside of the EU, the UK, and USA, most central banks are increasing interest rates to tame inflation.  That inflation is created by the Anglo Central Banks (EU, UK, ECB) lending more money into the system.  It is quite confusing and will take several months of serious effort to understand.  For the purposes of this article, just understand that most central banks around the world are RESPONDING to  a currency war that has been CREATED by the Anglo Central Banks.  It is also important to note that the Anglo Central Banks are owned by mostly the same people or institutions, and have been for generations.  Yes, I am talking about oligarchs, aristocrats, the 1%, the mega wealthy and elite that control 80% or more of the resources and wealth on this planet.