Central banks are already doing the unthinkable - you just don't know it

Telegraph (UK) ^ | 19 March 2016 | Mehreen Khan

[Lorianne]

The lords of finance are losing their touch.

Institutions which dragged the world from its worst depression since the early 20th century are finally seeing their magic desert them, if conventional wisdom is to be believed.

Eight years on the from the Great Recession, voices as authoritative as the International Monetary Fund and the Bank of International Settlements - dubbed the 'central bank of central banks' - have called time on the era of extraordinary monetary policy.

Having hoovered up $12.3 trillion (£8.5 trillion) in financial assets and carried out 637 interest rate cuts since 2008, central banks have been stunned back into action in the last six weeks.

The Bank of Japan kicked off a new round of global easing with its decision to cross the rubicon into negative interest rate territory on January 29.

Eurozone policymakers followed suit earlier this month with a triple whammy of interest rate cuts, €20bn in additional asset purchases a month, and an unprecedented move to allow commercial banks to borrow money at negative rates.

The Federal Reserve has also taken its foot off the pedal by slashing its expected interest rate hikes from four a year to just two.

[dp0622]

I wrongly pegged the dollar’s demise against Australia and Europe three weeks ago. Faded rally.

Last week broke out big for the AUD against the USD.

Took out multi monthly highs.

Could be another fake. We’ll see. Who’s money sucks the worst.

[SkyPilot]

Those of us who have been paying attention know what is going on. We are heading towards a collapse of historic proportions. The crisis will alter human history. It will change global governments and our very lives.

A "global reset" will occur, and the powers that be have been preparing for it for a long time.

[SkyPilot]

The Global Economic Reset Has Begun

The global reset is not a “response” to the process of collapse we are trapped in today. No, the global reset as implemented by central banks and the BIS/IMF are the CAUSE of the collapse. The collapse is a tool, a flamethrower burning a great hole in the forest to make way for the foundations of the globalist Ziggurat to be built.

The bailout bonanza was in part a direct intervention in the deflationary avalanche of the derivatives bubble, but also an indirect intervention in that it changed the psychological dynamics of the markets. As former Fed chairmans Alan Greenspan and Ben Bernanke have both hinted at in interviews and op-eds, one of the primary concerns of the central bank was the psychology behind higher stock prices. Stock prices could be propped up by the Fed itself through proxy buyers using the printing press. Or the Fed could inject billions, if not trillions, of dollars into banks and allow them to run wild, artificially boosting investment while doing nothing to solve the existing dilemma of negative fundamentals. Beyond this, the markets began to move on the mere words or edicts of Fed officials as algo-computers and the general investment world placed bets on rhetoric rather than reality; a dynamic which is now ending.

[beejaa]

I took a one-week seminar at Hillsdale College and asked two economics professors about an economic collapse. Both of them said that they did not believe that it would occur. Predictions are always tricky, of course. I don’t deny that our debt is ridiculous, but I do think that some people are making money off of these predictions. (Buy gold! Buy survivalist gear!)

There are scare sites on the web. I copied a YouTube page of 17 predictions about the dollar collapse in February, 2016. When I did a search for the collapse on March 1, there were a lot of pages about the May, 2016, collapse of the dollar. Six of them had the same visual as before except that February was replaced by May, 2016.

[PAR35]

You are trying to look at fundamentals. You have to remember that the game is rigged.

[dp0622]

you are right.

plus I used who’s instead of whose!!!

the whales run the show.

[chit*chat]

I just hope Trump is at the helm when it happens.

[huldah1776]

What if it happened before? he would win 60% of the vote. They’ll do it after he gets in and blame him for everything.

Will he know what to do? He can’t declare bankruptcy and go back to doing business as usual. How will he create jobs then? He’ll create a brown shirt unit to deport 30+ million illegals but won’t be able to get Mexico to pay for the wall since the world is going down with us.

If it happens within the first year of his term it will be on his watch, right, like 9/11?

[Mike Darancette]

Having Mexico pay for the wall is the easy part.

[huldah1776]

Having the drug cartels pay for the wall?

Or will it be by not sending them any money? Your money. So instead of giving your money to Mexico your money will pay for the wall?

Will he stop all funding to Mexico AND get the cartels to pay for it?

[chit*chat]

Point well taken, thank you.

[Mike Darancette]

Charge 10% on all remittances to Mexico. That will cause such a shitstorm that the Mexican government will relent in short order.

[huldah1776]

Wouldn’t that be like an obamacare “tax”? LOL

[catnipman]

“great state investment”

ah, the “educated” fools still believe socialism is the answer. the “state” does not create jobs any more than central banks do. only private industry can create jobs. the “state” employees only government employees, and these have to be paid for by taxpayers in the private economy, or alternatively the employers are simply owned outright by the state, as did the old, failed Soviet Union, as well as modern examples of such dynamic economies as North Korea and Cuba.