Central Bankers, Fear and Other Bad Counselors

 

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  • #16780

    NPC US Navy photographers March 24, 1925 The original idea behind a central bank is that medium and longer term monetary policy should not be allowed
    [See the full post at: Central Bankers, Fear and Other Bad Counselors]

    #16783
    rapier
    Participant

    I use this web site often, Bloomberg stock futures, to see what the market is doing.

    https://www.bloomberg.com/markets/stocks/futures/

    There is a little box to the right explaining the market moves. They don’t say the market moves “because” like the lamest the mainstream but instead use “as”. It has been striking how most of blurbs and stories do not pertain to the economy at all. It’s all “as Dragi” or “as the PBC or “as the Fed”.
    https://www.bloomberg.com/markets/stocks/futures/

    This is actually a positive development in the sense that stocks have always simply been a barometer of financial market liquidity and central banks ultimately are the source or cause of the liquidity trends. The thing is however that this fact has always been hidden behind stories like ‘the market rose because earning’, etc. etc. It has been the project of everyone to maintain the stock market was a mirror of the economy. That is no longer the case. No longer is the pretense worth advertising, which is the bad part too. How long can the system hold when one of its most important myths is abandoned? As in we don’t care about you losers, just print and we win.

    Hendry’s knowing skepticism and cynicism is all well and good for him but he’s a winner working for the winners. What about the losers with no job at all or the slightly better losers with a job that doesn’t pay the bills. They are not going to be skeptical they are going to become ever more cynical. More and more people are onto the game. Central banks ‘stimulate’, stocks rise. The winners are as happy as could be, poor children be damned.

    #16784
    Raleigh
    Participant

    rapier – “More and more people are onto the game.” I was talking to a lady in the supermarket yesterday, just a stranger, and I was surprised that she knew exactly what was going on. She laid out the central banks, the corruption. I couldn’t believe how knowledgeable she was. Then up at the checkout, I overheard two more strangers discussing cereal, genetically-modified foods, and one of them said, “It’s criminal. They are slowly poisoning us.” People are catching on!

    Karl Denninger today had a post entitled “Bluntly: QE Doesn’t Work”.

    “Growth? What growth?

    And yes, credit emission is not limited to central banks or governments — in point of fact they’re not the largest source of the problem in that they step in only when private banks can’t or won’t!

    Everyone wants to scream “END THE FED!” but in fact if you ended the Fed you’d do nothing for two reasons:

    The Fed is not the largest source of the problem; that is (by a huge margin) found in the private banking cartel.

    The Fed can only buy US Government securities. Therefore, if there is no deficit there is no Fed buying activity.

    It’s that simple folks when you boil it all down. The Fed can want to engage in QE but if there are no government bonds to buy then it is unable to do so. Without continued new emission of more and more bonds (that is, more and more deficit spending) The Fed is unable to perform “QE”; it is not mathematically possible given the boundaries they are forced to operate under.

    The reason that such attempts cannot work is that the smaller is never able to upstage the greater. That is, a minority position is never larger than the whole. By definition it is impossible for The Fed or any other Central Bank to violate this precept; it is simple arithmetic.

    So why do it?

    That’s easy: It’s far easier to steal, and you’re less likely to get shot doing it, if you steal by subterfuge than engaging in your theft through a straight-up “in your face” assault.

    But it is The Federal Government and their cronies, not The Fed itself, that is doing the stealing.”

    https://market-ticker.org/akcs-www?post=229610

    And Greenspan was at a New Orleans Investment Conference in October where he admitted that the Fed does what Congress requires of it, that it merely plays along. He said, “I never said the Fed is independent.”

    When it comes right down to it, Congress could dismantle the Fed tomorrow if they wanted to, and you can bet they would if the Fed didn’t do as they were told. Somebody is pulling the strings, and it sure isn’t Obama and the other slimeballs in the Capitol (they’re puppets too). The Fed AND Congress are taking orders from someone. Who is it?

    #16785
    V. Arnold
    Participant

    Just listening to the politicians in the U.S. is one of the most frightening things I do on any given day…

    #16794
    Jef Jelten
    Participant

    Raleigh – You are all over the place.

    The “private banking cartel” is the fed check out who is who in those structures and you will see and they can and do buy just about anything they want.

    The fed is the front man for the banking cartel and pretends to be cowed by congress but it is all Kabuki. Greenspan, bernank, Geithner, whoever… they all have about as much decision making power as G. “the decidamicator” Bush or any other Prez for that matter.

    “The Fed AND Congress are taking orders from someone. Who is it?” Banking cartel … got it?

    #16821
    Ken Barrows
    Participant

    The Fed isn’t audited, so who knows what it buys. It has admitted to buying mortgage backed securities (MBS) as well as Treasuries.

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