Pathogenesis of Central Bank Ruin

[pmbug]

Jim Willie published a very long piece covering a number of related topics that have been touched on here in the forum lately:

Central banks are the current sovereign debt market. It is a vacated market. They are the majority bidders via debt monetization. The monetary inflation has become the New Normal and a travesty. In perverse fashion, the financial markets celebrate the monetized purchases, even calling for higher volume. In the process, bond and stock market integrity has been destroyed. Foreign creditors depart the USTreasury Bond market. Large European banks depart the Southern Europe sovereign debt market. Central banks step in to avert panic as the underlying structure to the global monetary system crumbles. When government bond yields rose quickly in Europe, it was not from abandonment by their central bank. The big Euro banks sell boatloads of bonds while the EuroCB buys only truckloads. The bond market integrity has been deteriorating very quickly. The dependence upon the debt monetization process is vividly clear. It is hyper monetary inflation to fill the void, thus providing the dominant bid. Ironically, the dullard stock market mavens celebrate the arrival of the central bank purchases without truly comprehending the destroyed integrity of the bond market. IQ levels are falling along with stock index levels.
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More: http://news.goldseek.com/GoldenJackass/1323982800.php

 

[ancona]

I find the Jim Willie stuff to be about 60% over the top and 40% informative. He really does try to inform us, but the apocalyptic stuff surpasses even my most dystopic rants by an order of magnitude. I agree he has had some very prescient forecasts, and has good delivery, but some of it is just too much for me.

That said, he is a good read for those who can read and discern for themselves what is possible and what is babble.

 

[pmbug]

Agree. Much like ZH in that regards.

 

[DoChenRollingBearing]

Ha ha! I like Jim Willie too, but he is the most growlingest bear out there...! I think there IS some drivel in there, but I cannot parse the truth from the BS, my BS and Sarcasm Meter doesn't even really function...

I printed out his latest and will read it now while having my "Good Night Irene" drink...

DoChen's "Death After Midnight" (modeled on Hemingway's "Death in the Afternoon"):

-- one part cold water
-- one part absinthe
-- three parts raspberry vodka

all straight out of the freezer! Keep a "wingman" glass of water handy for parched throats...

 

[ancona]

Ahhh......................Absinthe!

I remember some many years ago while working at Lisnave Shipyard, we would take the ferry in to Lisbon proper to frequent local watering holes. Many a night were spent with a hash hookah an glasses of absinthe. Tlthough that was twenty five years ago, it is a fresh memory to me.

We found a place that would still sell you true absinthe.

 

[DoChenRollingBearing]

My understanding is that "true absinthe" is now legal again. French and American scientists found the thujone amounts to be too tiny to cause problems. My current favorite brand is the "Pernod", make sure to buy the absinthe, not the "Ricard" which is more an anisette.