Did A Central Banker Just Margin Call All Other Central Banks’ Credibility?

Did A Central Banker Just Margin Call All Other Central Banks’ Credibility?

Authored by Mark St.Cyr,

In a stunning policy move Bank of Japan Governor Haruhiko Kuroda introduced and adopted negative interest rates. The word “stunning” is fitting, for just weeks prior he stated there was no need to adopt such measures. It seems by all accounts his mind changed (or was made right?) after returning from Davos.

Whether or not this is the case one thing is certain: The Bank of Japan (BOJ) has thrown not just a monkey wrench into the financial system. He may have simultaneously made every other central bankers toolbox irrelevant, as well as incapable, to deal with the resulting damage. It’s one thing to have the right tool at the right time to tweak or fix. It’s quite another to lose grip of that tool where it falls into the running gears of the machinery. That’s when far more can (and usually does) go awry than just the original issue. (Think losing the small water pumps that keep water in a nuclear reactor as an analogy.)

No matter what anyone in the “smart crowd” would argue different. Today, both the financial world along with business in general is currently being manipulated made possible via crony capitalism as well as simultaneously being stymied by central bank policies. All occurring through the direct myriad of interventions into the capital markets globally. I believe that in no other time since the days of direct rule of Kings and Queens has such a small cabal of people had so much influence, as well as control, of global finance and business influence. Ever.

Politicians of all stripes sway or prestige are pale in comparison today as to the dictates coming from one central banking authority or another. However, with such authority comes a very heavy price. That price? It’s becoming easier to spot both the “who,” as well as the “where,” catastrophic mistakes in policies effecting societies well-being may originate from. And I don’t think many central bankers truly understand just how precarious in that position they now sit.

We were told (“we” being the business world) ad nauseam by the central bankers themselves that they knew precisely what they were doing. In 2008 as the financial markets as well as the economy came-off-the-rails the Federal Reserve stepped in and stabilized what seemed to be an out of control death spiral. Many will argue valid points on both sides whether it was good, bad, or an ugly way the tools used to stem that tide were employed. Personally I believe there was a legitimate and valid argument to step in.

However: It was the remaining “in” while supplying ever more of the very things that made the original crisis inevitable in the first place that had/has anyone with a modicum of business acumen apoplectic.

The relentless iterations of QE (quantitative easing) and an unrelenting stance to remain at the zero bound on interest rate policies for years could be seen for the ever ballooning, ticking time bomb they were. It didn’t take too much imagination and thought thru to envision just how difficult along with its disruption in both financial as well as business thing would become once the proverbial punch-bowls were taken away.

Economic theory as to explain and guide central banks through this malaise are suddenly finding themselves squarely in the line of fire of business and financial fact: They’ve created an absolute mess. And what’s worse? It may be the bankers themselves that may no longer trust their own omnipotence to deal with what’s coming. i.e., They aren’t going to wait or care any longer about coordination of moves. It’s now everyone for themselves as just witnessed by what many are now calling a “Kamikaze” bank policy move from the BOJ.

Why is this so troubling many are asking. After all, it seems that the BOJ governor’s mind changed after meeting with all the other bankers and attendees at Davos. And if one is to believe all the reports; more QE, and negative interest rates were what was being called (as well as begged) for as to help stem the tide of this current market malaise. Maybe the BOJ just decided to emulate what’s now taking place in the EU? Sounds logical right?

Well yes, maybe. However, what may be far more front-of-mind for the BOJ is the current meltdown in China. Japan may try to sweep away concerns regarding contamination of any meltdown at their nuclear plants. What they can’t turn a blind eye to is the potential for contagion in any currency meltdown in the CNY. e.g., Chinese Yuan. And it seems that potential grows stronger with each passing day.

And just like the potential for radiation effects are at first unseen to the naked eye. The possible ramification of suddenly throwing one of the most heavily traded currencies (e.g., ¥Yen) into an anytime, anywhere, out-of-the-blue change in monetary pricing stability can affect carry trades across the global markets in ways far more treacherous, as well as dangerous than anyone ever considered. Especially in today’s highly levered, correlated, high frequency trading (HFT) algorithmic based market. The resulting effects are yet to be felt. After all – this all just happened Friday.

I would garner there were many a meeting across many financial houses over the weekend than will admit. For when it comes to a carry trade – any carry trade – stability of perceived pricing models is key. A change of just one fractional amount too far in the wrong direction for assumption can render a fortress balance sheet into a falling house of cards with an immediacy most never truly comprehend. One would think 2007/08 would still be well-remembered. By the way many are talking – it seems as if it was ancient history. It’s unnervingly surreal.

Today the markets are gyrating widely reminiscent of those early stage stresses and/or warning signs just prior to the first real downdraft experienced during the initial stages of the financial crisis. Back then we had one policy move, or jawboning official after another announcing plans to do this or that, sending the market into fits and starts near daily.

Many times these daily knee-jerk rises of 1% plus moves were only to be followed with subsequent selloffs erasing (and then some) any gains made prior. Sometimes with incalculable speed and disruption. Today, with an ever infected market now under near complete and utter dominance via HFT parasitic trading programs, these swings may become even more violent as well as fear induced as supposed “liquidity” vanishes and/or appears from markets faster than the laser beams can quote stuff that “liquidity” in the first place.

The problem now is: Which central banker or policy is to be believed? And more importantly: for how long? Couple that with: Who will now be trusted as having credibility both in stating what they mean, and doing what they said? As well as: doing what they said because they know what they are doing? Quite the conundrum, yes?

The issue at hand is answering the question of: just why did the BOJ do what it just did – in the way that it did it? The ramification to those questions could not be more explicit in their meaning than almost any other in my opinion. For the global markets may be in far more perilous a position than the central bankers themselves ever imagined, let alone – contemplated.

For those who never seen the movie “Margin Call” there’s a great scene as it’s then irrefutable and understood that it’s all about to fall apart where Sam Rogers (Kevin Spacey) is expressing concerns to John Tuld (Jeremy Irons) that he believes the firm is panicking in selling everything all at once, causing a possible run on everything and melting down the system. The response from Tuld is quite fitting when he states, “It’s not panicking if you’re first.”

Today, as many of the financial media and others are trying to explain away this monetary move by the BOJ as something as simple as “Kuroda has said he likes to shake things up, or be unpredictable.” I think they may be looking in the wrong direction. For what now must be considered into that equation is something that portends to far more concern than meets the eye at first blush. To wit:

Did the BOJ’s out-of-the-blue reversal on its monetary stance which was refuted just weeks prior by Mr. Kuroda himself take place because after listening to the arguments, suggestions, as well as concerns, from the participants at Davos he concluded much like what the movie “Margin Call” depicted: It was all about to unravel? And if so: is this him deciding to be “first” and considered it his only choice?

And if so, what does his actions pose for the credibility of his brethren bankers? Do they now act from a place of “Who can they trust?” And what does that mean for the rest of us? The implications are staggering when you begin to open those doors for they have the potential of making Pandora’s box seem harmless in comparison.

However, maybe this is all hyperbole and should be disregarded as over the top rhetoric from Chicken Little types with no actual central banking policy experience. Maybe we should take comfort in the unwavering hand of credibility that never saw the great financial crisis to begin with when he argued that subprime mortgages and the crisis they foretold were “contained.” Then Fed. chairman Ben Bernanke.

What does he say today? Well, when he was speaking in Hong Kong at the Asian Financial Forum as Davos was also transpiring he stated, “I don’t think China’s economic slowdown is that severe to threaten the global economy, ” along with “The U.S. and China are not as closely tied as the market thinks.”

Maybe “Margin Call” was one of the movies available on demand in the rooms at Davos, and all Mr. Kuroda is now doing is channeling his inner “Jon Tuld” moment. And why not? “It’s not panicking if you’re first.”

However, for the rest of us, we can only wait and see what happens next.

(PN Editor:  If you haven’t seen “The Big Short”, you need to!  Deja Vu on a biggers scale!  “The Big Short tells us to keep the focus on Wall Street: A caption at the end highlights a new product being sold called a “bespoke tranche opportunity,” just another word for a CDO. But the underlying assets in these derivatives are largely corporate debt, and the numbers are so far pitifully small — $20 billion a year, compared to the trillion dollars annually in securitized subprime loans during the bubble. Private securitization for mortgages has been basically flat for seven years.” http://www.thefiscaltimes.com/Columns/2015/12/11/Big-Problem-Big-Short

Federal Reserve Is At The Heart Of The Debt Enslavement System

The Federal Reserve Is At The Heart Of The Debt Enslavement System That Dominates Our Lives

Submitted by Michael Snyder of The Economic Collapse blog  to Tyler Durden on 11/25/2014 15:55 -0500

From the dawn of history, elites have always attempted to enslave humanity.  Yes, there have certainly been times when those in power have slaughtered vast numbers of people, but normally those in power find it much more beneficial to profit from the labor of those that they are able to subjugate.  If you are forced to build a pyramid, or pay a third of your crops in tribute, or hand over nearly half of your paycheck in taxes, that enriches those in power at your expense.  You become a “human resource” that is being exploited to serve the interests of others.  Today, some forms of slavery have been outlawed, but one of the most insidious forms is more pervasive than ever.  It is called debt, and virtually every major decision of our lives involves more of it.  For example, at the very beginning of our adult lives we are pushed to go to college, and Americans have piled up more than 1.2 trillion dollars of student loan debt at this point.  When we buy homes, most Americans get mortgages that they can barely afford, and when we buy vehicles most Americans now stretch their loans out over five or six years.  When we get married, that often means even more debt.  And of course no society on Earth has ever piled up more credit card debt than we have.  Almost all of us are in bondage to debt at this point, and as we slowly pay off that debt over the years we will greatly enrich the elitists that tricked us into going into so much debt in the first place.  At the apex of this debt enslavement system is the Federal Reserve.  As you will see below, it is an institution that is designed to produce as much debt as possible.

There are many people out there that believe that the Federal Reserve is an “agency” of the federal government.  But that is not true at all.  The Federal Reserve is an unelected, unaccountable central banking cartel, and it has argued in federal court that it is “not an agency” of the federal government and therefore not subject to the Freedom of Information Act.  The 12 regional Federal Reserve banks are organized “much like private corporations“, and they actually issue shares of stock to the “member banks” that own them.  100 percent of the shareholders of the Federal Reserve are private banks.  The U.S. government owns zero shares.

Many people also assume that the federal government “issues money”, but that is not true at all either.  Under our current system, what the federal government actually does is borrow money that the Federal Reserve creates out of thin air.  The big banks, the ultra-wealthy and other countries purchase the debt that is created, and we end up as debt servants to them.  For a detailed explanation of how this works, please see my previous article entitled “Where Does Money Come From? The Giant Federal Reserve Scam That Most Americans Do Not Understand“.  When it is all said and done, the elite end up holding the debt instruments and we end up being collectively responsible for the endlessly growing mountain of debt.  Our politicians always promise to get the debt under control, but there is never enough money to both fund the government and pay the interest on the constantly expanding debt.  So it always becomes necessary to borrow even more money.  When it was created back in 1913, the Federal Reserve system was designed to create a perpetual government debt spiral from which it would never be possible to escape, and that is precisely what has happened.

Just look at the chart that I have posted below.  Forty years ago, the U.S. national debt was less than half a trillion dollars.  Today, it has exploded up to nearly 18 trillion dollars…

National Debt

But the national debt is only part of the story.  The big banks which control the Federal Reserve also seek to individually dominate our lives with debt.  We have become a “buy now, pay later” society and the results have been absolutely catastrophic.  40 years ago, the total amount of debt in our system was just a shade over 2 trillion dollars.  Today it is over 57 trillion dollars

Total Debt

The big banks do not loan you money because they want to help you achieve “the American Dream”.  The elitists loan you money because it will make them wealthier.  For example, if you only make the minimum payment on a credit card each month, you will end up paying back several times as much money as you originally borrowed.  It is a very insidious form of debt enslavement that most Americans simply do not understand.

Meanwhile, the Federal Reserve is also systematically destroying the wealth that you already have.  If you try to buck the system and actually save money, the purchasing power of that money is continually being eroded by the Federal Reserve’s inflationary policies.  The following chart comes directly from the Federal Reserve and it shows how the value of the U.S. dollar has plummeted over the past 40 years…

Purchasing Power Of The Dollar

Overall, the U.S. dollar has lost approximately 98 percent of its value since the Fed was first established in 1913.

Most people seem to assume that if we could just send the “right politicians” to Washington D.C. that we could get our economy back on the right track.

What those people do not understand is that our system is fundamentally broken.  We are trapped in a perpetual debt spiral that is destined to end in a horrifying collapse.  Just “tweaking” a few things here or there and adjusting tax rates a bit is not going to fix anything.  The vast majority of the “economic solutions” that our politicians talk about are basically equivalent to rearranging the deck chairs on the Titanic.

And of course the elite don’t want the rest of us to truly understand what is going on.  Just think about it.  Even though the Federal Reserve is one of the most important institutions in our society, and even though it is at the very heart of our economic system, our kids are taught next to nothing about the Fed in school.  The vast majority of them have absolutely no idea where money comes from.

Isn’t that pathetic?

But the elite know that if we did understand what they were doing to us that most of us would start to get very upset.  Henry Ford, the founder of Ford Motor Company, once said the following…

“It is well enough that people of the nation do not understand our banking and money system, for if they did, I believe there would be a revolution before tomorrow morning.”

The truth sets people free, so let us do what we can to wake our fellow Americans up to this insidious debt enslavement system which dominates our society.

 

 

The Elite – No Longer

10 Signs The Global Elite Are Losing Control
~~~~~~~~~~~~~~
Free Energy Information Booklet 
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The Elite

Sourcehttp://www.scribd.com/doc/163851591/SecretCovenant-EliteNetwork

THE SECRET COVENANT

An illusion it will be, so large, so vast it will escape their perception.

Those who will see it will be thought of as insane.

We will create separate fronts to prevent them from seeing the connection between us.

We will behave as if we are not connected to keep the illusion alive.

Our goal will be accomplished one drop at a time so as to never bring suspicion upon ourselves. This will also prevent them from seeing the changes as they occur.

We will always stand above the relative field of their experience for we know the secrets of the absolute.

We will work together always and will remain bound by blood and secrecy. Death will come to he who speaks.

We will keep their lifespan short and their minds weak while pretending to do the opposite.

We will use our knowledge of science and technology in subtle ways so they will never see what is happening.

We will use soft metals, aging accelerators and sedatives in food and water, also in the air.

They will be blanketed by poisons everywhere they turn.

The soft metals will cause them to lose their minds. We will promise to find a cure from our many fronts, yet we will feed them more poison.

The poisons will be absorbed trough their skin and mouths, they will destroy their minds and reproductive systems.

From all this, their children will be born dead, and we will conceal this information.

The poisons will be hidden in everything that surrounds them, in what they drink, eat, breathe and wear.

We must be ingenious in dispensing the poisons for they can see far.

We will teach them that the poisons are good, with fun images and musical tones.

Those they look up to will help. We will enlist them to push our poisons.

They will see our products being used in film and will grow accustomed to them and will never know their true effect.

When they give birth we will inject poisons into the blood of their children and convince them its for their help.

We will start early on, when their minds are young, we will target their children with what children love most, sweet things.

When their teeth decay we will fill them with metals that will kill their mind and steal their future.

When their ability to learn has been affected, we will create medicine that will make them sicker and cause other diseases for which we will create yet more medicine.

We will render them docile and weak before us by our power.

They will grow depressed, slow and obese, and when they come to us for help, we will give them more poison.

We will focus their attention toward money and material goods so they many never connect with their inner self. We will distract them with fornication, external pleasures and games so they may never be one with the oneness of it all.

Their minds will belong to us and they will do as we say.

If they refuse we shall find ways to implement mind-altering technology into their lives. We will use fear as our weapon.

We will establish their governments and establish opposites within. We will own both sides.

We will always hide our objective but carry out our plan.

They will perform the labor for us and we shall prosper from their toil.

Our families will never mix with theirs. Our blood must be pure always, for it is the way.

We will make them kill each other when it suits us.

We will keep them separated from the oneness by dogma and religion.

We will control all aspects of their lives and tell them what to think and how.

We will guide them kindly and gently letting them think they are guiding themselves.

We will foment animosity between them through our factions.

When a light shall shine among them, we shall extinguish it by ridicule, or death, whichever suits us best.

We will make them rip each other’s hearts apart and kill their own children.

We will accomplish this by using hate as our ally, anger as our friend.

The hate will blind them totally, and never shall they see that from their conflicts we emerge as their rulers. They will be busy killing each other.

They will bathe in their own blood and kill their neighbors for as long as we see fit.

We will benefit greatly from this, for they will not see us, for they cannot see us.

We will continue to prosper from their wars and their deaths.

We shall repeat this over and over until our ultimate goal is accomplished.

We will continue to make them live in fear and anger though images and sounds.

We will use all the tools we have to accomplish this. The tools will be provided by their labor.

We will make them hate themselves and their neighbors.

We will always hide the divine truth from them, that we are all one.

This they must never know!

They must never know that color is an illusion, they must always think they are not equal.

Drop by drop, drop by drop we will advance our goal.

We will take over their land, resources and wealth to exercise total control over them.

We will deceive them into accepting laws that will steal the little freedom they will have.

We will establish a money system that will imprison them forever, keeping them and their children in debt.

When they shall ban together, we shall accuse them of crimes and present a different story to the world for we shall own all the media.

We will use our media to control the flow of information and their sentiment in our favor.

When they shall rise up against us we will crush them like insects, for they are less than that.

They will be helpless to do anything for they will have no weapons.

We will recruit some of their own to carry out our plans, we will promise them eternal life, but eternal life they will never have for they are not of us.

The recruits will be called “initiates” and will be indoctrinated to believe false rites of passage to higher realms. Members of these groups will think they are one with us never knowing the truth.

They must never learn this truth for they will turn against us.

For their work they will be rewarded with earthly things and great titles, but never will they become immortal and join us, never will they receive the light and travel the stars.

They will never reach the higher realms, for the killing of their own kind will prevent passage to the realm of enlightenment. This they will never know.

The truth will be hidden in their face, so close they will not be able to focus on it until its too late.

Oh yes, so grand the illusion of freedom will be, that they will never know they are our slaves.

When all is in place, the reality we will have created for them will own them.

This reality will be their prison. They will live in self-delusion.

When our goal is accomplished a new era of domination will begin.

Their minds will be bound by their beliefs, the beliefs we have established from time immemorial.

But if they ever find out they are our equal, we shall perish then.

THIS THEY MUST NEVER KNOW.

If they ever find out that together they can vanquish us, they will take action.

They must never, ever find out what we have done, for if they do, we shall have no place to run, for it will be easy to see who we are once the veil has fallen. Our actions will have revealed who we are and they will hunt us down and no person shall give us shelter.

This is the secret covenant by which we shall live the rest of our present and future lives, for this reality will transcend many generations and life spans.

This covenant is sealed by blood, our blood. We, the ones who from heaven to earth came.

This covenant must NEVER, EVER be known to exist. It must NEVER, EVER be written or spoken of for if it is, the consciousness it will spawn will release the fury of the PRIME CREATOR upon us and we shall be cast to the depths from whence we came and remain there until the end time of infinity itself.