This just in:
CNBC is reporting that central banks are ruling the financial world. In an article published today called “Central Banks: How They Are Ruling the Financial World,” the new world order was spelled out.
Entities such as the Federal Reserve and the European Central Bank in 2012 took control of global
economies like never before. Based on current market and economic behavior it’s likely to be years
before anything changes.
Ok…well, thank you for that. In the following paragraph, CNBC offers some gross statistics that fall well-short of the reality of the situation. We are looking at a dominant financial system worth quadrillions of dollars in derivatives. Most of this equity is suffering from liquidity problems. Meaning, nobody wants it at this point, and so it passed among the holders of such derivatives so as to present the illusion of velocity. The velocity does not exist.
After all, how can central banks take their foot off the stimulus pedal when there’s so much at stake?
In all, 13 other central banks in the world have followed the Fed’s lead and set interest rates at or near
zero in an effort to keep the liquidity spigots open and prop up their ailing economies. Those 14
economies represent a staggering $65 trillion in combined equity and bond market capitalizations,
according to Bank of America Merrill Lynch.
Many of the main US banks survive off taxpayer subsidies. Low interest rates for quick cash due to underlying assets banks cannot do anything with will persist, and thus, as CNBC notes tardily, their power. The underlying axiom promoted in the media recently has been that everything is going on until the world becomes a more equitable place. But nothing in the history of mankind demonstrates this is the path we are currently on. There has not been a free market since the paleolithic, just as this article demonstrates the media is the Fourth Branch.
As for the bond-buying programs – aka quantitative easing – that dovetail with the low interest rates,
the U.S. central bank alone shortly will eclipse $3 trillion on its balance sheet and is expected to end
2013 north of $4 trillion in electronically created money.
And this does not continued the corporate welfare in the form of climate stamps, otherwise known as carbon credits. Or, how about Special Drawing Rights, distributed benevolently by the IMF to preferred clients globally.
Indeed, central banking has become an economy unto itself, a multi-trillion-dollar empire that
massages and manipulates markets, which respond to the slightest news out of the respective entities’
policy making committees.
Haha – “massages?” WTF…
I can picture it now – WilliamBanzai7 composed – Bernanke sucking on a markets utter. Milking it for all it is not worth.
Or, maybe this is the sort of massaging at the end of a Asian massage parlor. A “Happy Ending” until it’s over and you realize you sat on your Iphone and it dialed your partner’s phone and kaboom…
Nobody is buying the upside since the nadir in 2008. Especially considering the vast theft upon which it is based in terms of presumed tax revenue. People are already beginning to flee ship. Still, very many do not know where to go.
“We have never seen investors so nervous after such a strong market. We would have expected
greater enthusiasm,” Deutsche Bank’s strategists said in an analysis. “If the Fed were to leave (policy)
alone and let markets decide, then equity markets would probably fall. But, as it is, if real investors
can’t predict which way markets will go, then they will stay on the sidelines.”
Surprising that investors are not kowtowing to the outsourcing of wealth management by putting them in the traditional western vehicles. Thus, this piece from CNBC. To keep up with the times, the propaganda will attempt to become increasingly sophisticated.
Gripe though they may, however, investors are not apt to swim against the tide.
None of the major Wall Street houses is betting against the stock market in 2013, reasoning that
equities will be pushed forward by a modestly strengthening economy and continued Fed
JPMorgan Chase, for one, correctly anticipated that the Fed would tie its policy to specific economic
targets – in part as an effort to counteract the political and fiscal mess in Washington.
The entire world is marked-to-model. Therefore, economic rationality in the face of real life circumstances is out the door. In other words, There Will Be…Something. Economic la-la land is a euphoric place until flatline. The policy makers have already acted in the future by alerting us of their moral centers and philosophies. They have already reacted to future events by virtue of what they have done in the past. We know they will not acknowledge real life events – their causes, their effects, the why’s and where fores. Instead, they will base their understanding of you and me, themselves and us all in terms of 1s, 0s, circles and squares.
“We’re in open-ended QE across the globe,” Doss said. “I don’t know what the end game is.”
We can know the endgame because of actions on behalf of the powers that be in the past. Most have already reacted to tragedy, including central banks.