Wednesday, August 10, 2016

The Market’s Narrative Ponzi
Financial Repression Obfuscation
"Too many are forgetting the 'investors' in this scheme are governments (or proxy) with unlimited funding resources, as well as: they also control the narrative. i.e., any data point they wish to convey as what 'is' good or bad .. Why the scheme of today is far more troubling than those of any bygone era is as I iterated: the access to unlimited funds. As has been stated ad infinitum – central banks have the ability to print money ex nihlo. And what people forget is that ability retards the process for the scheme to collapse under its own weight. Remember: a Ponzi scheme works until you begin running out of suckers. And it’s in that math of exponentiation where once you see 'a crack' the crumbling comes with near immediacy .. However, if one has access to unlimited fund? 'Cracks' can be repaired, hence the scheme can continue. The game is the same .. As long as the central bankers of the world are holding the print button down with both hands and feet – the scheme is going to last a lot longer than anyone ever dreamed possible. But, as I said, the 'money' is only half of the equation. This is where the narrative must also match if not supersede .. How can GDP be in the toilet at the same time they’re touting a 'wonderful' employment report? And second: If the 'markets' are a representation of the economy – then why does the economy stink?"
- Mark St Cyr
LINK HERE to the essay


Anonymous said...

look the IMF marketing machine is heating up big time .. #SDRcoming

How the #IMF uses #SDRs to Create ‘Back Door’ Inflation..!!

The dollar won’t be the important global reserve currency. The SDR will be used for the settlement of the balance of payments between countries, the price of oil and perhaps the financial statements of the 100 largest global corporations. The impact on everyday investors will be inflationary.

The difference, however, is that, right now if we have inflation, everyone blames the Fed. In the future, however, you’ll have inflation coming from SDRs. That means when people try to blame the Fed, the Fed will say it’s not us; it’s those guys over there on G Street in Northwest Washington. Go blame them. No one even knows where the IMF is. So the SDR is just a way to get inflation through the back door.

The IMF has a convoluted governance structure in which the highest decision-making body, the Board of Governors, has little power because the votes are weighted in favour of the largest economies, such as the US. Actual power rests with the blandly named International Monetary and Financial Committee, the IMFC.

Everything about the IMF is designed to make it difficult for outsiders like you to have any idea what is going on.

The insiders like that arrangement just fine.

Importantly, the book is highly accessible. Ahamed avoids the arcane jargon that fills most accounts of the IMF as well as the IMF’s official publications and reports. Anyone with the slightest interest in the workings of the international monetary system will find this book an excellent guide to how the IMF goes about its business on a day-to-day basis, and how the IMF has the power to make or break sovereign governments by deciding whether or not to make loans when those governments are in financial distress.

One of the book’s main takeaways is the demonstration that the IMF is just as powerful as the military and CIA when it comes to forcing regime change in governments that do not follow US orders. Of course, the IMF does this without firing a shot. They use money as a weapon just as effectively as the military uses special operations or the CIA uses drones.

Anonymous said...

Epoch Times spoke to Paul about what is real money, why debt can never be repaid, and why he sees gold at $15,000 per ounce.

And I would argue central banks lost the ability to control the credit cycle. Some relatively minor event could trigger a series of events that creates the need for a sit-down among global monetary policy makers who finally have to acknowledge publicly that their policies are no longer able to control the system, the global economy, which is based on ever increasing demand through ever increasing credit.

And what might occur is a natural drop in output. So you’ll see GDP growth begin to fall. Real GDP growth across the world maybe even going into contraction and that would spell doom for these balance sheets. And this is not something I’m predicting or trying to time at all, but the natural outcome of that would be a sit-down like a Bretton Woods where arrangements are reconsidered.
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