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When Do We Start Arresting The Central Bankers? - Denniger

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http://market-ticker.denninger.net/archives/2386-When-Do-We-Start-Arresting-The-Central-Bankers.html

You want to know where the spikes in the Euro came from today?

Try here:

That's "official intervention" by the Swiss National Bank and if they don't cut this crap out they're going to cause an equity and credit market collapse.

These jackasses now have double the Euros they held just a short while ago from these "operations", and as you can see, they're pissing into a hurricane on even a daily basis, say much less on anything more consequential:

Congress does not have the right to get involved in the affairs of a foreign sovereign.

But Congress has every right to demand that Bernanke close his goddamn swap lines right now until this sh1t stops, lest The Fed be the one who is on the hook when the entire ECB structure comes apart and WE THE TAXPAYERS are on the hook.

This sort of tampering, performed by a private party, is illegal. Of course it's routine and "expected" in the FX space for sovereigns to interfere, but much of the instability that we have seen of late has been caused by this sort of "intervention." Specifically, today it was responsible for a sixteen point, or 1.5%, jackrabbit move in both directions in the stock market in the space of less than two hours.

There is absolutely no excuse for The United States to support this sort of garbage with our taxpayer backstops. These instabilities in the foreign exchange markets make it impossible for real companies to hedge costs and profits in foreign nations and do severe and irrevocable damage to these firm's operations.

It is also reflecting into the US Commercial Paper markets and driving spreads wider there as well. This is the very same market that locked up in 2008 and triggered the equity market collapse.

The SNB's "interest" in doing this is clear: Half of European banks are stuffed full of debt written in Swiss Francs - in nations where the currency is the Euro! These idiots (both the borrowers and the banks that offered these "products") have now seen the principal balance of these loans represented in Euros rise by 11% in the last year.

This sort of idiocy, incidentally, is one of the reasons two years ago that I said there was no chance we could possibly "inflate our way out" or play the "Keynesian game" any more and get away with it. These instabilities can and will come to the fore and force defaults and there is literally nothing that can be done about it. The more the ECB intervenes in the bond market the weaker the Euro gets and the more damage is done to debtors holding Swissy-denoted notes!

We made a critical error in 2007 and compounded it in 2008 and 2009 by building in structural deficits as a supposed "sop" to the banksters who got us into this mess - both here and abroad. We have continued to refuse to force them to eat their own cooking and close those firms that were responsible for doing this and both were and are insolvent, both here and abroad.

Now we have CENTRAL BANKS flailing around trying to stop that which is inevitable, expending tens of billions that have effective time periods measured in minutes, and yet we STILL refuse to wake up and smell the coffee.

There is no durable economic stability or recovery possible until these imbalances are forced out of the system in their entirety. This means forcing those who are insolvent to admit it and swallow their medicine.

The extreme volatility will continue so long as their jackassery by entities like Bernanke and the SNB continue, and as more and more investors and traders give up on any sort of longer-term holding due to the volatility and head to the sidelines liquidity in both equities and credit will contract until there is an all-on no-bid circumstance one day - a full, all-on crash - and this one will NOT retrace.

If you thought the "Flash Crash" was bad I hope you're prepared for what's coming, unless we find a leader somewhere in the world who will pull these jackasses into the dock and demand that they stop it - right now.

I've been warning people now for three years about snipping the fuse before it goes inside the box.

It appears it may have now done so, in which case it's too late.

See the charts at the links.

This is the first time I've read anyone else suggest we should start going after the central banker.

Is Denniger correct on his assertion that the central banks are going to create yet another huge turd with these currency interventions?

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If you thought the "Flash Crash" was bad I hope you're prepared for what's coming, unless we find a leader somewhere in the world who will pull these jackasses into the dock and demand that they stop it - right now.

Watch how quickly the politicians drop their banker friends as the real economic sh1t hits the fan over the next couple of years,

they'll be a neccesary sacrifice to stop impoverished people rioting: Denninger calling for prosecutions might be a fairly lone voice now, but expect statements like this more and more often and eventually at higher and higher levels...this time in 2 or 3 years a lot of bankers and financiers are going to be paying huge retroactive taxation and spending time in prison. Good!

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Denninger calling for prosecutions might be a fairly lone voice now, but expect statements like this more and more often and eventually at higher and higher levels...this time in 2 or 3 years a lot of bankers and financiers are going to be paying huge retroactive taxation and spending time in prison. Good!

It's time to sue the Bank of England / Federal Reserve for GROSS NEGLIGENCE

I think he's joining the lone voice ;)

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If you thought the "Flash Crash" was bad I hope you're prepared for what's coming, unless we find a leader somewhere in the world who will pull these jackasses into the dock and demand that they stop it - right now.

Watch how quickly the politicians drop their banker friends as the real economic sh1t hits the fan over the next couple of years,

they'll be a neccesary sacrifice to stop impoverished people rioting: Denninger calling for prosecutions might be a fairly lone voice now, but expect statements like this more and more often and eventually at higher and higher levels...this time in 2 or 3 years a lot of bankers and financiers are going to be paying huge retroactive taxation and spending time in prison. Good!

this is true, as central bankers are political appointments.

I dont really understand what they are doing. I can only imagine they are pumping liquidity in to markets where they shouldnt..sort of Maxwellian buying of their own interests to prop up prices.

course, banksters are doing this everywhere now...with houses through shells, with assets through mark to model, and now with bonds.

shows the lengths people will go to avoid a good spanking and redundency.

And then they point o the greek rioters waving banners and going on strike...while they carry on to destroy themselves.

In France they have a wonderful device...a Guillotine...cheap, reusable and entertaining.

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How does the Swiss National Bank buying up Euros cause the Euro to weaken?

I think their intervention is in the hope of preventing the CHF/EUR exchange rate from going below 1.4, if so it failed, it's the lowest I've ever seen it at 1.379.

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I like Denninger's blog, but there is something about him that really gets on my tits.

I think it is because he is a "know-all." No grey areas, it's just "this is how things are, this is what we must do and I know everything, if you argue with this then you're a half-wit."

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This was Particleman's 'trade'.

i.e. eventually the size of the Euro flood overwhelms the SNB dam. Looks like it just has.

Can't figure Denninger out sometimes. He's this Great American Patriot and Constitutionalist and yet seems to simply ignore the fact the the dollar IS de facto the global currency. All glow ball assets are effectively denominated in dollars.

You can't be the global reserve currency and not want people to want your dollars.

But hey, that's f*cking yanks for you. Cake and eat it.

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I think their intervention is in the hope of preventing the CHF/EUR exchange rate from going below 1.4, if so it failed, it's the lowest I've ever seen it at 1.379.

As we are seeing in the stock markets intervention become less and less effective as more people realise what is going on.

http://www.zerohedge.com/article/swiss-national-bank-intervention-half-life-down-2-hours

Swiss National Bank Intervention Half Life: Down To 2 Hours

From the moment the SNB intervened in the EURCHF, to the point where the pair went unchanged on the day, a whopping two hours have expired. The last time the SNB intervened, the return to unchanged took 4 hours, and 8 before that. The next time the SNB buys up EUR, we expect the return to unchanged to take one hour or less.

EURCHF%206.8.%202.jpg

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it doesn't,the aim may well be to keep the swissie down vs the euro and stop swissie denominated debts in the euro zone and periphery-of which there are lots-from delinquency as a currency based version of fishers paradox kicks in.

thats what I though too. you buy another currency with your own currency which leads others who have another currency to sell their Gold and buy the Euro which supports Bernanke in his attempt to issue CHF denominated food stamps for a black guy evicted from his sub-prime Marseilles Condo on the coast of Greece.

clear.

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Nah, bring back Albert Pierrepoint, he was a true professional...;)

You don't want these guys to suffer? I suggest what is required is a real amateur who'll make a right botch job of it.

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  • 260 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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