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Page added on March 25, 2018
Collusion – Central Bank Money Rules The World
Central bank credit that supports markets – is not just creation of the Fed, but by central banks and institutions around the world colluding together. Global markets are too deeply connected these days to consider the Fed in isolation.
Since last month’s correction, the world has been watching the Fed because its policies have global implications. And worldwide sell-offs sent a clear sign to Fed Chair Powell to relax with the rate hikes.
When fears arise that central bank QE will recede on one side of the world, we see more volatility and rumors of hawkishness.
To counter those fears, there will be a move toward dovish policy on the other side of the world.
Central banks operate in collusion. When the Fed signals it is raising rates, or markets over-react negatively to the threat, another central bank steps in. By colluding, other central banks offer even more dark money-QE to keep the party going.
The net result is a propensity toward the status quo in global monetary policy: a bullish, asset bubble-inflating bias in the stock markets and caution in the bond markets.
Here’s what’s going on with some of the most powerful central bankers right now, starting with Japan…
While U.S. markets were correcting earlier this month, Japan’s financial benchmark, the Nikkei 225 index fell more than 1,200 points. At the same time, the rumors of Japan’s central bank curbing its dark money-QE programs are just that.
While investors have speculated that the BoJ could be moving towards an exit from dark money policy (despite the BOJ denying this), we know that central banks are too scared of the outcomes.
In an economic pinch, the Bank of Japan (BoJ), will keep dark money flowing.
Confirming my premise, when Japanese Government Bond prices were dipping too fast, the BoJ announced “unlimited” buying of long-term Japanese government bonds. This is simply the continuation of the policy the BoJ already has in place.
It was also, as CNBC reported, “the first time in more than six months that the BOJ has conducted special operations to buy bonds to achieve the yields it wants to see…”
That’s a clear sign of more manipulation of the bond market. And now we have confirmation that Japan likely has more dark money coming…
For the past year, there have been media rumblings that Japanese Prime Minister Shinzō Abe would relieve current Bank of Japan (BoJ) head, Haruhiko Kuroda. The dark money maven was set to end his term on April 8.
Seeing through the media craze, I have repeatedly detailed that it would not be the case. Abe and Kuroda go together like peanut butter and jelly. Abe specifically chose Kuroda to implement a massive dark money strategy in what has been referred to as a monetary “bazooka.”
A piece in Japan Today confirms this view. It concludes that 73-year-old Kuroda will stick around for a second five-year term, through 2023. So as the article notes, “He would be the first BoJ governor to serve two terms in half a century.”
Kuroda has implemented the most aggressive dark money manufacturing on the planet since taking the helm of the BOJ in 2013. Prime Minister Abe has become the longest-standing Japanese prime minister in years with the success of the snap elections he called for last fall.
Logically, why would he seek to end a partnership that is lifting the Japanese markets and making its economy appear rosy? (Though as in the U.S., wage growth and consumption remain tepid.)
With core inflation rising just 0.5% last year, well below Kuroda’s 2% target, you should expect that he’ll be pumping even more dark money into Japanese markets. For investors that means more opportunities in Japanese stocks. Currently, I’m focused on sectors related to the 2020 Olympics and the infrastructure projects that come with it.
Japan offers us a clear roadmap. Financial markets in Japan are clearly addicted to dark money.
Meanwhile, over in Europe, on Feb. 5, European Central Bank (ECB) President Mario Draghi told a European parliamentary hearing in Strasbourg, France, that the ECB can’t yet “declare victory” in its fight to resurrect inflation.
To calm financial markets, he noted, “Monetary policy will evolve in a fully data-dependent and time-consistent manner.” That means more central bank intervention to bolster markets when they buckle.
Draghi espoused some concerns for the strong euro. Draghi’s euro concerns translate into keeping interest rates lower for longer as a way to cool off euro strength. That means more dark money.
In the U.K., the jobless rate rose for the first time since 2016 and wage growth isn’t hitting the Bank of England’s 3% target. Here are the implications: The Bank of England, despite having hinted at tightening, can keep rates where they are given that elements of economic weakness still prevail. More dark money could be coming if economic conditions warrant it.
Of course, one of the most powerful dark money leaders is the head of the International Monetary Fund (IMF), Christine Lagarde.
That’s because the French leader manages the organization that directs an internationally accepted currency basket and coordinates global monetary policy. Lagarde provided a highly optimistic message at the recent World Economic Forum amongst the elites in Davos. Now she is attempting to step in again to sooth markets.
As one report reveals, while speaking at another elite gathering on global business in Dubai, Lagarde said, “I’m reasonably optimistic because of the landscape we have at the moment.” She also warned that, “we cannot sit back and wait for growth to continue as normal.”
When Lagarde speaks, we should listen. While it is true that global markets sank after the optimism at Davos, the elites have quickly pivoted. Their optimism and associated perception of inflation served to add to market volatility and contributed to the correction. So, they’ve now dialed it back.
“I’m ringing not the alarm signal, but the strong encouragement and warning signal,” Lagarde told an ultra-wealthy Dubai audience.
What central bankers don’t want you to know is that after a decade of cheap money policy to fix the worlds’ economies – they’ve only inflated asset bubbles. That’s why Lagarde repeated last month’s IMF forecast, singing the chorus that the global economy would hit 3.9% growth in 2018 and again in 2019.
Don’t expect this to happen.
But Lagarde’s dark money leadership wasn’t completely oblivious to a developing crisis. Of course, she tried to cast away blame from central bank collusion to other scapegoats. She noted, “We need to anticipate where the next crisis will be. Will it be shadow banking? Will it be cryptocurrencies?”
What this statement should signal to you is that central bankers are hitting their limits. They don’t want you to know how ineffective dark money policies have been for real economic growth.
The concept of central bank collusion is not one that is built upon conspiracy theories. To the contrary, the alliances make perfect sense and operate publicly.
If the Fed rate hike this week teaches us anything, its that Jerome Powell will eventually embrace the same unlimited easy money policy on any sign of market weakness, while the global web of central banks remain as omnipresent as ever.
* * *
Earlier in the week, Nomi appeared on Lance Roberts’ “Real Investment Hour” to discuss the Fed’s rate hike decision this week and the end result of the ongoing surge in debt combined with continued Central Bank interventions.
Spoiler Alert: “It Ain’t Good.”
Nomi, is also graciously giving our readers an “exclusive 40% discount” on her upcoming book “Collu$ion” just by clicking here: Pre-Order “COLLU$ION” Now – 40% OFF
Nomi Prins via The Daily Reckoning
17 Comments on "Collusion – Central Bank Money Rules The World"
fmr-paultard on Sun, 25th Mar 2018 3:19 pm
ok i’m a former paultard and i became the second most conservative man in the USA after president paul. But I was using religion to hide my urge to look at naked ladies. I don’t do that anymore. I hate alt-tard currencies because it’s still based on federal reserves notes.
my gold investment is sh*t.
i don’t like it. idealism is my undoing and we had cliques like ISIS with the index finger up signifying one god allah.
I’m happy to say alt-tard media is well done and supertards experienced catatrophic alt-tard media fatique.
but how do you modify human impulses? why give up a useful tool to stop the killing? Even ISIS exists upon the use of non islamic money.
fmr-paultard on Sun, 25th Mar 2018 3:27 pm
nobody has passion stronger than a paultard, not even eurotard or SENTAPBs.
why doesn’t nomi prins talk about women control of America?
who do the shopping, who ends up with the house in a divorce, who initiates the divorces, who control paultards with sex, who responsible for raising supertards? who vote mostly on the sexual gender basis?
what?
oh? that’s right. I’m an ex paultard and Im nto a eurotard so I’m not going jihad on women. I love women, I want them to kill to get stuff …i mean by enlisting in us armed forces and fly planes to drop bombs and the A10 to straff enemies.
leave all that social issues to the power of money to make everything pallatable.
Cloggie on Sun, 25th Mar 2018 4:06 pm
“I love women, I want them to kill to get stuff …i mean by enlisting in us armed forces and fly planes to drop bombs and the A10 to straff enemies.”
You are the purest embodiment of American decline, supertard.
“why doesn’t nomi prins talk about women control of America?
who do the shopping, who ends up with the house in a divorce, who initiates the divorces, who control paultards with sex, who responsible for raising supertards? who vote mostly on the sexual gender basis?”
Sounds like a lament from a deep wound.
You say you love women? What did Nietzsche say again: “You go to women? Do not forget the whip!”
BobInget on Sun, 25th Mar 2018 5:15 pm
Gee, where were we?
Chinese futures don’t indicate a big CL price drop.
https://www.exchangerates.org.uk/commodities/live-oil-prices/OIL-CNY.html Hang on to this link.
MAN bites dog.
60 Minutes should charge Super Bowl ad prices for tonight’s ‘expose’. ( Horny old rich guy fucks
porn actor). THEN, Cheats on said porn actor with Playboy centerfold and third wife giving birth.
THEN w/ *OPCM, pays Playmate 20 G’s more then porn star to STFU. Now, At least three ladies pissed off at horny old dumb rich guy. Third wife soon joins club one and two divorced from President Mendacity.
There, I’ve saved everyone here an embarrassing “60 Minutes”.
Monday:
‘President Putin defends President Fallacy.
(direct quote)”Russian hookers…. best in world”.
‘Nice clear pee every time’.
“OUR girls would NEVER talk” You know why-;) “America, Trump, so weak, permitting whores to rat out clients!”
“We never should have hired him in the first place”
*OPCM= ‘Other People’s Campaign Money’.
fmr-paultard on Sun, 25th Mar 2018 6:31 pm
guys dawkins are afraid LOL. i think he wants to go to church now like i told you guys to do. i’m a constinean catholic and i go to church regularly.
dawkins is supertard and he’s afraid. that’s why the religon for worshipping of supertards mandate supertards ownership of multiple kel-tec 2000 auto with 5000 rounds. all funded by zakat money from meretards
Sissyfuss on Sun, 25th Mar 2018 9:13 pm
Monday could be quite interesting or the plunge patrol could jump into action again. We shall see. And though I venerate Nietzsche, Cloggadamus I prefer my shaman who said ” men need to be led, woman contained.”
MASTERMIND on Sun, 25th Mar 2018 9:20 pm
The Oil Market Problem No One Is Talking About — Yet
https://www.fool.com/investing/2018/03/25/the-oil-market-problem-no-one-is-talking-aboutyet.aspx
Boat on Sun, 25th Mar 2018 10:06 pm
Mm
You need to learn about the real oil world. Venz is down 600,000 BPD because of political stupidity. OPEC/Russia is down another 1.8 mbpd due to collusion. Equals 2.4 mbpd. The US and Canada can make up for around 1.6-1.8 mbpd of that loss. So yes there is a shortage that is drawing down stock piles. But it is gradual.
As prices rise more and more drilling will take place along with a probable cut in demand. During this upcoming period peak after peak record will be set. Not a collaspe. You owe me. To much typing.
Boat on Sun, 25th Mar 2018 10:17 pm
You read that others think there will be no oil to drill when prices rise. That may be true at $50 but at $80 or above oil companies will make so much money they will squeeze oil out of your toilet.
Solution? Take over Russia and OPEC for having the balls to screw with the worlds economy. Putin ain’t to smart.
Cloggie on Mon, 26th Mar 2018 12:21 am
And though I venerate Nietzsche, Cloggadamus I prefer my shaman who said ” men need to be led, woman contained.”
If you venerate copy cat Robert Pirsig, you automatically venerate the Nietzsche original.
No surprises here.
MASTERMIND on Mon, 26th Mar 2018 7:50 am
Is the World Sleepwalking Into The Next Oil Crisis?
https://www.forbes.com/sites/rrapier/2018/03/23/is-the-world-sleepwalking-into-an-oil-crisis/#3dd6e74344cf
MASTERMIND on Mon, 26th Mar 2018 8:21 am
Clogg
Trump expels 60 Russian diplomats, shudders Seattle consulate
https://www.yahoo.com/news/poland-summons-russias-ambassador-over-spy-case-123355904.html?soc_trk=gcm&soc_src=bad81b5f-db87-38f1-ad4e-b7e8e737f190&.tsrc=notification-brknews
The wood has been slowly dried for some major future event, and a false flag event will be like a lit match on the kindling. The media will pick it up and run with it full-throttle, and people will be herded by fear toward the war door.
fmr-paultard on Mon, 26th Mar 2018 8:54 am
ok china is very sneaky and say their mission in africa is harmless. bald faced lie like putin the dictator and the dictator xi.
when they had some doughs it went to modernizing the military and shooting down satelites, building islands, restricting shipping lanes.
i don’t even have to attack russia. wait the usual russian bots come to defend of china and their shady practices. the average chinese hate america while benefit from dumping goods here.
fmr-paultard on Mon, 26th Mar 2018 8:58 am
just to review:
if you google image “white power” and “isis” then it becomes aparent they’re extremists.
this is why the religion for worshipping supertards mandate ownership of multiple kel-tec 2000 automatic with 5000 rounds, a lot more rounds for practice.
the google images reveal pictures in BLACK. the weakness is more RED on the white power side.
traditionally SENTAPBs exist in their own fenced off communities and ban outsiders. Here they are powerless and their brains get screwed with moderation constantly.
Cloggie on Mon, 26th Mar 2018 1:56 pm
Clogg
Trump expels 60 Russian diplomats, shudders Seattle consulate
https://www.yahoo.com/news/poland-summons-russias-ambassador-over-spy-case-123355904.html?soc_trk=gcm&soc_src=bad81b5f-db87-38f1-ad4e-b7e8e737f190&.tsrc=notification-brknews
The wood has been slowly dried for some major future event, and a false flag event will be like a lit match on the kindling. The media will pick it up and run with it full-throttle, and people will be herded by fear toward the war door.
You didn’t even bother to pretend it is not a false flag. With utmost cynicism you gloated that “it works”.
Probably some Mossad or MI6 or CIA false flag. These folks have plenty of nerve gas.
https://wikispooks.com/wiki/2001_Israeli_Nerve_Gas_Attacks
Interesting that apneaman’s hero Nafeez Ahmed is thinking along the same lines:
https://medium.com/insurge-intelligence/the-british-governments-russia-nerve-agent-claims-are-bullshit-a69b4ee484ce
And what is your opinion, millimind.lol Rhetorical, you are a walking false flag event yourself.
https://www.thetimes.co.uk/article/russia-social-media-blames-mi5-clinton-or-israel-for-toxin-xwn2jlxbq
Poor governments, they are playing a risky game. No proof whatsoever was given. The Dutch PM even had the nerve (pun intended) to claim that it must have been Russia, because there was no credible alternative.ROFL
Russia 2018 is the new Germany-1933: being set up for war by the (((globalists))). Unfortunately for the stinking, dying West, Russia is nuclear armed and doesn’t have sucker Italy, but China and Iran and probably Turkey as an ally. And the European Right and the US alt-right. And then there is the Brexit looming, that could get out of hand and deteriorating relations between Anglosphere and continental Europe. And then there is that little Gibraltar wild card looming.
Interesting times.
Davy on Mon, 26th Mar 2018 2:10 pm
The nedernazi’s whole life revolves around a few decades of the 20th century when his pride got an asskicken twice. If you want to peer deep into the nedernazi soul go to 1930-1945. Everything is explained in the nederwelt view.
Cloggie on Mon, 26th Mar 2018 2:35 pm
The nedernazi’s whole life revolves around a few decades of the 20th century when his pride got an asskicken twice. If you want to peer deep into the nedernazi soul go to 1930-1945. Everything is explained in the nederwelt view.
My world view goes back 3000 years and a few bush-rangers like you are not going to destroy that civilization.
Now role over and die.