Jim Willie: No CB Solutions: Liquidity Vs Insolvency

Jim Willie CB / GoldenJackass.com

GoldSeek.com

The Hippocratic Oath dictates never to do harm to the patient. The central bankers instead take the Hypocritical Oath that dictates to cripple the patient, to drain the blood, to preserve power by tightening the straps, to erode buying power from hard work, and to render life savings a weak shell, while whispering lies in the ears on blame for what went badly wrong, against the background din of endorsed war themes. The effectiveness of the latter oath is seen in the systemic failure of the USEconomy, whose financial and economic structure has been destroyed by bad economic policy, the poor paper financial foundation from the monetary system, corrupt bond market practices marred by $trillion frauds, and a marriage between the state and sanctioned large corporations whose only efficiency is seen in dark corners protected by criminal impunity. The Fascist Business Model showed itself in bold terms in the 1990 decade, in the strengthened links between state and major corporations, where inefficiency, favoritism, and corruption produce the bitter fruit of a sclerotic financial structure and weakened body economic. The Gold price responds to the systemic failure of the ruinous financial and economic policy, aggravated by the devoted ghoulish doctors and their perverse solutions that neither fix anything nor attempt to apply remedy.

The Jackson Hole conference was another gathering of losers, stuck in apologist mode to explain their vast ongoing enduring failure. It has become an empty echo to the Davos Forum. This year, after two years of the drastic treatment reliant upon bond monetization (Quantitative Easing), the display revealed more vividly than in the past the gaggle of losers gone fishing. The Bernanke speech said nothing of substance, nothing. He is out of ideas, out of tools, out of credibility, holding a ruined balance sheet which will not be restored. The latest Bernanke stupidism is the continued bond monetization until a certain threshold of economic growth (GDP) is reached. These loser bankers do not even attempt legitimate solutions, choosing instead their usual fare to work toward power preservation whose schemes are marred by yet more paper mache covering of toxic sores. The financial markets look to clues on QE when it never ended, and thus its participants appear truly clueless. They appeal beseechingly like emaciated hound dogs seeking small food scraps from the fat bankers who never miss a $200 lunch, the tab always paid by the starving serfs and vassals that peer through the windows. In past years the Jackass was eager to hear the buzz from the conference, looking for choice morsels to indicate future direction. This year, a walk around the block to look at blossoms from the vibrant flora has been brought more satisfaction. Even EuroCB chief witch doctor Draghi decided not to attend the conference, perhaps unwilling to be tarnished by a broad inept banker brush, or to find himself impaled by a fishing hook.

The banker losers will continue to ply their trade, to print more money and avoid the Gold Standard. They will find ways to justify more propping of the giant insolvent banks, whose business model has been wrecked, whose balance sheets have been wrecked, whose executives live large despite the wreckage. The dangerous dastardly desperate concoctions with hidden derivative platforms and cables erected by the big banks in the 1990 and 2000 decades bought them more time, but did not avert the mutually assured destruction. The central bankers have no solutions. The Gold price responds to the systemic failure of the ruinous financial and economic policy, aggravated by the devoted ghoulish doctors and their perverse solutions that neither fix anything nor attempt to apply remedy.

MONETARY POLICY GONE ABSURD

Discussion of growth targets has turned absurd, since the recession is accelerating in speed. Discussion of bond buying shell game specifics has turned absurd, since the USFed has been buyer of over 80% of USGovt debt since 2010 during a foreign buyer strike. Discussion of inflation considerations and the ordinary deceptions has turned absurd, since the CPI has been over 7% or 8% for years on end. Discussion of the stimulative effects of 0% has turned absurd, since it is a giant wet blanket that shrinks profits and kills capital through retirement of equipment in unprofitable business enterprise. Current monetary policy assures a greater and faster economic decline, where GDP minimum limits will not be reached. Discussion of the benefits of more printed money has turned absurd, as the nation slowly becomes wise to the sham and counterfeit to wealth. If dispensed money is not earned, the hangover arrives the next year or next decade, whose tab is due now. Discussion of the urgently needed spending restrictions imposed upon the USCongress has turned absurd, since they are deadlocked and should be disbanded as an ineffective temple of beggars to banks and industry, whose main function has been to raise funds and win the next election. Discussion that relies upon keywords laced throughout commentary has turned absurd, since the entire vocabulary has suffered from propaganda in a vast dumbing down of the American people. The national hive is in its sunset and twilight phase, long past the point of remedy, due to two decades of ransacking the asset base and capital base. The nation no longer comprehends the basic concepts of capitalism. Instead it embraces socialism and carries out fascism against a constant drumbeat of war, which even features appearances of military symbols at signature sporting events. The Gold price responds to the systemic failure of the ruinous financial and economic policy, aggravated by the devoted ghoulish doctors and their perverse solutions that neither fix anything nor attempt to apply remedy.

The Euro Central Bank has announced its own vapid stupid pointless monetary policy to enforce a cap on sovereign bonds. The absurdity runs parallel with the inept US counterpart. The USFed will buy bonds until an economic growth level is attained, never to be attained. The EuroCB will buy bonds to prevent the sovereign bond yields from reaching a dangerous level, which will always be pressured. No bond market can claim legitimacy when an imposed limit is enforced on bond yields. Harken back to the USFed buying TIPS bonds, like icing down the thermometer that measures fever levels.

The failure is stark and clear. Monetary policy has gone amok. They have no solutions, so they press harder in the same reckless direction. What the world is witnessing is the official institutionalized ruin of sovereign bond markets in the United States and Europe, which serve as foundations for the USDollar and Euro currencies.Both currencies are doomed to the dustbin of history, all in time. Central bankers have lost all credibility, cornered without options in a public way. Central banker appear writhing flailing wiggling as they apologize for lack of solutions, while their integrity vanishes like an oily mist off an overused printing press. Central banks are presiding over wrecked bond markets, wrecked currency markets, and a divergence gold market (paper versus physical). They are at the helm of giant vessels, which are sinking from their own ordered liquidity measures, taking on water, unable to negotiate around icebergs.

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