Central Banks and Panic

...Imagine if the Federal Reserve was monetizing $3 trillion a year, which pencils out to some $250 billion a month(!).  A proportional amount of money is being dumped into the Japanese financial system under the new policy [as of October 31, 2014].

...the central banks destroyed price discovery a long, long time ago. First by invalidating the price of money itself (by driving interest rates to zero), and then in everything else -- most importantly risk.

...They've spurred the greatest wealth gap ever in US history, greater even than at the extremes of the Great Depression, apparently without the slightest concerns for Plutarch's ancient admonition that "An imbalance between rich and poor is the oldest and most fatal ailment of all republics."

...When you wreck your currency [Japan], all you do is steal purchasing power from savers and transfer it somewhere else, in this case to those most indebted and/or leveraged -- the biggest of these beneficiaries being the Japanese government and large speculators.

...that's just another happy coincidence in the game that central banks and bankers like to play with us which they call 'heads we win, tails you lose.'

...Whether by coincidence or conspiracy, every possible escape hatch for 99.5% of the people has been welded shut.  We are all captives in a dysfunctional system of money, run by a few for the few...

While some still question whether the US Federal Reserve is monkeying about directly in US equity markets, there is no such uncertainty with the BOJ: it openly buys equities under the pretense that a rising equity market is somehow good for the Japanese economy.

...The virtual lockstep nature of the falling yen and rising Nikkei tell us that we are living in an age of massive and rampant speculation where financial markets react in concert to the newly-unleashed liquidity floods.   All that matters in today's "markets" is how much more money the central banks are going to throw into the system.

...these most recent moves should invoke greater worry for those of us alert enough to see them for what they are: acts of panic."


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