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Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...

 
Saddletramp
We Don't Rent Pigs...

User ID: 812002
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12/13/2012 03:31 PM

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Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
Are Central Banks Really Planning To Raise Interest Rates?

[link to www.marketwatch.com]

Here's the skinny on this...

Any signigicant rise in effective interest rates by central banks will cause an instant market crash that will make 2008 look like a cake walk.

You see the Fed and other Central Banks have put themselves in a catch 22, we've been in a chronically low interest rate environment with almost non-existant economic growth for so long it is killing any market bumping lifespan for Quantative Easing Announcements, thereby reducing the power of Central Banks over monetary and economic conditions, and it's having a real dampening effect on fixed income people, and therefore the economy as a whole. But here's the Catch 22, if they raise interest rates, the markets instantly crash. This is all just another sign the economic/debt cycle is almost near its end.

The Fed's tool box is virtually empty now, except for The Nuclear Option, but that is not uncommon at the end of an economic cycle. Bernanke knows where he's at here, he's not stupid despite the role he plays on TV, he's just working within the system as it has been designed, but there are some differences between this cycle and the cycle that preceeded the Great Depression. World population and the sheer amount of debt and currency in the system come springing to mind, but also one of the things they did during the Great Depression was basically tax every man woman and child holding gold backed paper currency 40% overnight by increasing the value of the gold used to back that currency, or devaluing the currency.

But in the current cycle we are dealing with entirely fiat currencies, So Here Is The Nuclear Option, they only way they will be able to pull a version of the same stunt they pulled in the Great Depression is by de-valuing the currency everyone is holding after a hyperinlationary event (which is not growth but rather a loss of confidence in the currency) and then returning backing to said currency with a basket of commodities approach specific to each currency/country but also pegging all backed currencies together, and also taking much of the old currency out of circulation in the process (this will be true for both paper and electronic currency).

In other words, when they return backing to the currency, you will either have your bank accounts (electronic credits and debits) cut by a percentage with a keystroke on a computer, or you will have to bring in any actual paper currency you're holding and exchange it for the new backed currency, at a percentage deduction of course (just as an example, $200 old for $100 new). This will also apply to loans - loan principal will be cut by a percentage (including sovereign debt). But make no mistake, the commodities backing the currency will skyrocket in value, and the elite already own 90% of those commodities around the world, so they will gain despite any reduction in the value of the currency they currently hold.

This Keynesian Econimic system we find ourselves with has always been designed to funnel money from the bottom to the top, then have it trickle back down to the bottom (after a percentage is retained by the top of course), but the Trickle Down effect has been broken through repealing the Glass-Steagall act, Accounting Regulations, and outright greed that have essentially stopped the banks from loaning out money to consumers or small business'. And make no mistake, the breaking of that system has been quite intentional. These guys are not stupid, they recognize where we are in the bigger scheme of cyclical Keynesian Economics and, world cycles such as population, energy, and food, and they would rather break it themselves, then rebuild it, than lose control entirely, though they will certainly appear too...

Don't be fooled, remember, Ordo ab chao, no matter how much chaos you see unfolding around the world when this finally happens, it is all part of the bigger plan...the plan to soak you for half of your net worth overnight!

Not saying we are at this point yet, but if you're not ready for this, you might want to consider getting ready for this...

Last Edited by Saddletramp on 12/13/2012 03:51 PM
"And how can a man die better than facing fearful odds, for the ashes of his fathers, and the temples of his Gods..." ~ Horatius

"Because he told the truth, and once you've heard the truth, everything else is just cheap whiskey..."
Burt Gummer

User ID: 29696048
United States
12/13/2012 03:33 PM

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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
Are Central Banks Really Planning To Raise Interest Rates?

[link to www.marketwatch.com]

 Quoting: Saddletramp


Considering what Bernanke is now doing with the permanent QE4....it's not going to happen anytime in the near future.

Last Edited by Useless Cookie Eater on 12/13/2012 03:36 PM
Saddletramp (OP)
We Don't Rent Pigs...

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United States
12/13/2012 03:35 PM

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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
Are Central Banks Really Planning To Raise Interest Rates?

[link to www.marketwatch.com]

 Quoting: Saddletramp


Considering what Bernanke is now doing with the permanent QE4....it's not going to happen anytime in the near future.
 Quoting: Burt Gummer


And look at what a wonderful effect QE4 had on the markets...

Central Banks are losing relevance, you might want to read my entire post...
"And how can a man die better than facing fearful odds, for the ashes of his fathers, and the temples of his Gods..." ~ Horatius

"Because he told the truth, and once you've heard the truth, everything else is just cheap whiskey..."
Burt Gummer

User ID: 29696048
United States
12/13/2012 03:37 PM

Report Abusive Post
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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
Are Central Banks Really Planning To Raise Interest Rates?

[link to www.marketwatch.com]

 Quoting: Saddletramp


Considering what Bernanke is now doing with the permanent QE4....it's not going to happen anytime in the near future.
 Quoting: Burt Gummer


And look at what a wonderful effect QE4 had on the markets...

Central Banks are losing relevance, you might want to read my entire post...
 Quoting: Saddletramp


QE4 is just getting started.....


QE4

by Larry Levin

"The Chairman of the Federal Reserve, Ben Bernanke, held a 2 day meeting with FOMC members and made an announcement:
QE4 is not only here, it is here to stay – essentially FOREVER."

[link to avidinvestorgroup.com]

heliben

Last Edited by Useless Cookie Eater on 12/13/2012 03:37 PM
Saddletramp (OP)
We Don't Rent Pigs...

User ID: 812002
United States
12/13/2012 03:41 PM

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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
Are Central Banks Really Planning To Raise Interest Rates?

[link to www.marketwatch.com]

 Quoting: Saddletramp


Considering what Bernanke is now doing with the permanent QE4....it's not going to happen anytime in the near future.
 Quoting: Burt Gummer


And look at what a wonderful effect QE4 had on the markets...

Central Banks are losing relevance, you might want to read my entire post...
 Quoting: Saddletramp


QE4 is just getting started.....


QE4

by Larry Levin

"The Chairman of the Federal Reserve, Ben Bernanke, held a 2 day meeting with FOMC members and made an announcement:
QE4 is not only here, it is here to stay – essentially FOREVER."

[link to avidinvestorgroup.com]

heliben
 Quoting: Burt Gummer


Yes, and all the markets that should have gone up on that announcement, have instead gone down.

Central banks are losing their power to manipulate the markets through monetary policy because of the chronically low interest rate environment corner they have painted themselves into.

This happens at the end of debt/economic cycles...and we are very near the end of this one.
"And how can a man die better than facing fearful odds, for the ashes of his fathers, and the temples of his Gods..." ~ Horatius

"Because he told the truth, and once you've heard the truth, everything else is just cheap whiskey..."
Burt Gummer

User ID: 29696048
United States
12/13/2012 03:43 PM

Report Abusive Post
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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
Are Central Banks Really Planning To Raise Interest Rates?

[link to www.marketwatch.com]

 Quoting: Saddletramp


Considering what Bernanke is now doing with the permanent QE4....it's not going to happen anytime in the near future.
 Quoting: Burt Gummer


And look at what a wonderful effect QE4 had on the markets...

Central Banks are losing relevance, you might want to read my entire post...
 Quoting: Saddletramp


BTW.....they will only devalue the currency if the inflation gets out of control.
They have to play out QE4 first...which probably will lead to that inflation.


Here's an interesting related relevant article too....

How A Handful Of Unsupervised MIT Economists Run The World
[link to www.zerohedge.com]


Take special note of who they are....and how they all are from the SAME economic school...literally.

Which means....no diversity of thought....and that can spell doom since they see things all the same way.

Last Edited by Useless Cookie Eater on 12/13/2012 03:43 PM
Saddletramp (OP)
We Don't Rent Pigs...

User ID: 812002
United States
12/13/2012 03:43 PM

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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
Like the preacher said to the congregation..."Can I Get A Pin-ness???"

hf

Last Edited by Saddletramp on 12/13/2012 03:44 PM
"And how can a man die better than facing fearful odds, for the ashes of his fathers, and the temples of his Gods..." ~ Horatius

"Because he told the truth, and once you've heard the truth, everything else is just cheap whiskey..."
Saddletramp (OP)
We Don't Rent Pigs...

User ID: 812002
United States
12/13/2012 03:45 PM

Report Abusive Post
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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
Are Central Banks Really Planning To Raise Interest Rates?

[link to www.marketwatch.com]

 Quoting: Saddletramp


Considering what Bernanke is now doing with the permanent QE4....it's not going to happen anytime in the near future.
 Quoting: Burt Gummer


And look at what a wonderful effect QE4 had on the markets...

Central Banks are losing relevance, you might want to read my entire post...
 Quoting: Saddletramp


BTW.....they will only devalue the currency if the inflation gets out of control.
They have to play out QE4 first...which probably will lead to that inflation.


Here's an interesting related relevant article too....

How A Handful Of Unsupervised MIT Economists Run The World
[link to www.zerohedge.com]


Take special note of who they are....and how they all are from the SAME economic school...literally.

Which means....no diversity of thought....and that can spell doom since they see things all the same way.
 Quoting: Burt Gummer


Judging by the markets, QE4 played out fifteen minutes after it was announced...
"And how can a man die better than facing fearful odds, for the ashes of his fathers, and the temples of his Gods..." ~ Horatius

"Because he told the truth, and once you've heard the truth, everything else is just cheap whiskey..."
Burt Gummer

User ID: 29696048
United States
12/13/2012 03:46 PM

Report Abusive Post
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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
...


Considering what Bernanke is now doing with the permanent QE4....it's not going to happen anytime in the near future.
 Quoting: Burt Gummer


And look at what a wonderful effect QE4 had on the markets...

Central Banks are losing relevance, you might want to read my entire post...
 Quoting: Saddletramp


QE4 is just getting started.....


QE4

by Larry Levin

"The Chairman of the Federal Reserve, Ben Bernanke, held a 2 day meeting with FOMC members and made an announcement:
QE4 is not only here, it is here to stay – essentially FOREVER."

[link to avidinvestorgroup.com]

heliben
 Quoting: Burt Gummer


Yes, and all the markets that should have gone up on that announcement, have instead gone down.

Central banks are losing their power to manipulate the markets through monetary policy because of the chronically low interest rate environment corner they have painted themselves into.

This happens at the end of debt/economic cycles...and we are very near the end of this one.
 Quoting: Saddletramp


Markets go up on QE4?
....not necessarily. naughty

People are pulling cash out of the equity markets before the end of the year to avoid the Fiscal Cliff taxes.
Watch that money go overseas or into precious metals.

Last Edited by Useless Cookie Eater on 12/13/2012 03:47 PM
Saddletramp (OP)
We Don't Rent Pigs...

User ID: 812002
United States
12/13/2012 03:57 PM

Report Abusive Post
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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
...


And look at what a wonderful effect QE4 had on the markets...

Central Banks are losing relevance, you might want to read my entire post...
 Quoting: Saddletramp


QE4 is just getting started.....


QE4

by Larry Levin

"The Chairman of the Federal Reserve, Ben Bernanke, held a 2 day meeting with FOMC members and made an announcement:
QE4 is not only here, it is here to stay – essentially FOREVER."

[link to avidinvestorgroup.com]

heliben
 Quoting: Burt Gummer


Yes, and all the markets that should have gone up on that announcement, have instead gone down.

Central banks are losing their power to manipulate the markets through monetary policy because of the chronically low interest rate environment corner they have painted themselves into.

This happens at the end of debt/economic cycles...and we are very near the end of this one.
 Quoting: Saddletramp


Markets go up on QE4?
....not necessarily. naughty

People are pulling cash out of the equity markets before the end of the year to avoid the Fiscal Cliff taxes.
Watch that money go overseas or into precious metals.
 Quoting: Burt Gummer


Yes, but if that was the case you would expect commodities to go up...

Gold...down
Silver...down
Oil...down
Corn...down

Commodites are, for the most part, a true day trade...there is still plenty of time to take profits before the end of the year...

QE is no longer having a stimulating effect on the markets...it's the only answer to the question.
"And how can a man die better than facing fearful odds, for the ashes of his fathers, and the temples of his Gods..." ~ Horatius

"Because he told the truth, and once you've heard the truth, everything else is just cheap whiskey..."
Anonymous Coward
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12/13/2012 04:20 PM
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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
TOTALLY agree!
Anonymous Coward
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12/13/2012 04:30 PM
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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
I KNOW J.P. Moran and their subsidiaries are from a letter warning about same.
Anonymous Coward
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12/13/2012 04:39 PM
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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
bump
Anonymous Coward
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12/13/2012 04:53 PM
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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
...


And look at what a wonderful effect QE4 had on the markets...

Central Banks are losing relevance, you might want to read my entire post...
 Quoting: Saddletramp


QE4 is just getting started.....


QE4

by Larry Levin

"The Chairman of the Federal Reserve, Ben Bernanke, held a 2 day meeting with FOMC members and made an announcement:
QE4 is not only here, it is here to stay – essentially FOREVER."

[link to avidinvestorgroup.com]

:heliben:
 Quoting: Burt Gummer


Yes, and all the markets that should have gone up on that announcement, have instead gone down.

Central banks are losing their power to manipulate the markets through monetary policy because of the chronically low interest rate environment corner they have painted themselves into.

This happens at the end of debt/economic cycles...and we are very near the end of this one.
 Quoting: Saddletramp


Markets go up on QE4?
....not necessarily. naughty

People are pulling cash out of the equity markets before the end of the year to avoid the Fiscal Cliff taxes.
Watch that money go overseas or into precious metals.
 Quoting: Burt Gummer


"precious metals"? Youwould think youwouldnothave said that considering how much, even today, gold is going down.
Alexander

User ID: 15635858
United States
12/13/2012 04:59 PM

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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
Are Central Banks Really Planning To Raise Interest Rates?

[link to www.marketwatch.com]

Here's the skinny on this...

Any signigicant rise in effective interest rates by central banks will cause an instant market crash that will make 2008 look like a cake walk.

You see the Fed and other Central Banks have put themselves in a catch 22, we've been in a chronically low interest rate environment with almost non-existant economic growth for so long it is killing any market bumping lifespan for Quantative Easing Announcements, thereby reducing the power of Central Banks over monetary and economic conditions, and it's having a real dampening effect on fixed income people, and therefore the economy as a whole. But here's the Catch 22, if they raise interest rates, the markets instantly crash. This is all just another sign the economic/debt cycle is almost near its end.

The Fed's tool box is virtually empty now, except for The Nuclear Option, but that is not uncommon at the end of an economic cycle. Bernanke knows where he's at here, he's not stupid despite the role he plays on TV, he's just working within the system as it has been designed, but there are some differences between this cycle and the cycle that preceeded the Great Depression. World population and the sheer amount of debt and currency in the system come springing to mind, but also one of the things they did during the Great Depression was basically tax every man woman and child holding gold backed paper currency 40% overnight by increasing the value of the gold used to back that currency, or devaluing the currency.

But in the current cycle we are dealing with entirely fiat currencies, So Here Is The Nuclear Option, they only way they will be able to pull a version of the same stunt they pulled in the Great Depression is by de-valuing the currency everyone is holding after a hyperinlationary event (which is not growth but rather a loss of confidence in the currency) and then returning backing to said currency with a basket of commodities approach specific to each currency/country but also pegging all backed currencies together, and also taking much of the old currency out of circulation in the process (this will be true for both paper and electronic currency).

In other words, when they return backing to the currency, you will either have your bank accounts (electronic credits and debits) cut by a percentage with a keystroke on a computer, or you will have to bring in any actual paper currency you're holding and exchange it for the new backed currency, at a percentage deduction of course (just as an example, $200 old for $100 new). This will also apply to loans - loan principal will be cut by a percentage (including sovereign debt). But make no mistake, the commodities backing the currency will skyrocket in value, and the elite already own 90% of those commodities around the world, so they will gain despite any reduction in the value of the currency they currently hold.

This Keynesian Econimic system we find ourselves with has always been designed to funnel money from the bottom to the top, then have it trickle back down to the bottom (after a percentage is retained by the top of course), but the Trickle Down effect has been broken through repealing the Glass-Steagall act, Accounting Regulations, and outright greed that have essentially stopped the banks from loaning out money to consumers or small business'. And make no mistake, the breaking of that system has been quite intentional. These guys are not stupid, they recognize where we are in the bigger scheme of cyclical Keynesian Economics and, world cycles such as population, energy, and food, and they would rather break it themselves, then rebuild it, than lose control entirely, though they will certainly appear too...

Don't be fooled, remember, Ordo ab chao, no matter how much chaos you see unfolding around the world when this finally happens, it is all part of the bigger plan...the plan to soak you for half of your net worth overnight!

Not saying we are at this point yet, but if you're not ready for this, you might want to consider getting ready for this...
 Quoting: Saddletramp


We've been following this for awhile and got our money out of stock last year already losing thousands. Now I'm thinking it would be good to purchase Canadian gold coins in case the dollar tanks. What say you?
The truth is incontrovertible. Malice may attack it, ignorance may deride it, but in the end, there it is.
Winston Churchill
Anonymous Coward
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12/13/2012 05:28 PM
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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
Are Central Banks Really Planning To Raise Interest Rates?

[link to www.marketwatch.com]

Here's the skinny on this...

Any signigicant rise in effective interest rates by central banks will cause an instant market crash that will make 2008 look like a cake walk.

You see the Fed and other Central Banks have put themselves in a catch 22, we've been in a chronically low interest rate environment with almost non-existant economic growth for so long it is killing any market bumping lifespan for Quantative Easing Announcements, thereby reducing the power of Central Banks over monetary and economic conditions, and it's having a real dampening effect on fixed income people, and therefore the economy as a whole. But here's the Catch 22, if they raise interest rates, the markets instantly crash. This is all just another sign the economic/debt cycle is almost near its end.

The Fed's tool box is virtually empty now, except for The Nuclear Option, but that is not uncommon at the end of an economic cycle. Bernanke knows where he's at here, he's not stupid despite the role he plays on TV, he's just working within the system as it has been designed, but there are some differences between this cycle and the cycle that preceeded the Great Depression. World population and the sheer amount of debt and currency in the system come springing to mind, but also one of the things they did during the Great Depression was basically tax every man woman and child holding gold backed paper currency 40% overnight by increasing the value of the gold used to back that currency, or devaluing the currency.

But in the current cycle we are dealing with entirely fiat currencies, So Here Is The Nuclear Option, they only way they will be able to pull a version of the same stunt they pulled in the Great Depression is by de-valuing the currency everyone is holding after a hyperinlationary event (which is not growth but rather a loss of confidence in the currency) and then returning backing to said currency with a basket of commodities approach specific to each currency/country but also pegging all backed currencies together, and also taking much of the old currency out of circulation in the process (this will be true for both paper and electronic currency).

In other words, when they return backing to the currency, you will either have your bank accounts (electronic credits and debits) cut by a percentage with a keystroke on a computer, or you will have to bring in any actual paper currency you're holding and exchange it for the new backed currency, at a percentage deduction of course (just as an example, $200 old for $100 new). This will also apply to loans - loan principal will be cut by a percentage (including sovereign debt). But make no mistake, the commodities backing the currency will skyrocket in value, and the elite already own 90% of those commodities around the world, so they will gain despite any reduction in the value of the currency they currently hold.

This Keynesian Econimic system we find ourselves with has always been designed to funnel money from the bottom to the top, then have it trickle back down to the bottom (after a percentage is retained by the top of course), but the Trickle Down effect has been broken through repealing the Glass-Steagall act, Accounting Regulations, and outright greed that have essentially stopped the banks from loaning out money to consumers or small business'. And make no mistake, the breaking of that system has been quite intentional. These guys are not stupid, they recognize where we are in the bigger scheme of cyclical Keynesian Economics and, world cycles such as population, energy, and food, and they would rather break it themselves, then rebuild it, than lose control entirely, though they will certainly appear too...

Don't be fooled, remember, Ordo ab chao, no matter how much chaos you see unfolding around the world when this finally happens, it is all part of the bigger plan...the plan to soak you for half of your net worth overnight!

Not saying we are at this point yet, but if you're not ready for this, you might want to consider getting ready for this...
 Quoting: Saddletramp


so what? there are very few people remaining that want credit anyway.
Nexus-9

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12/13/2012 05:32 PM
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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
If the Central Banks raise interest rates then that pretty much ends quantitative easing. You cannot have QE and raised interest rates at the same time.
"Fiery the Angels rose, & as they rose deep thunder roll'd
Around their shores: indignant burning with the fires of Orc" - William Blake, America a Prophecy
(...also misquoted in Blade Runner by Roy Batty)

"Tempus est optimus iudex" - "Time is the best judge"

"The very word "'secrecy'" is repugnant in a free and open society; and we are as a people inherently and historically opposed to secret societies, to secret oaths and to secret proceedings." - John F. Kennedy, New York City, April 27, 1961
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12/13/2012 05:37 PM
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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
>>it is all part of the bigger plan...the plan to soak
>>you for half of your net worth overnight!

Ok, that's going to be about $250. They can have it if they take half my debt too.
Burt Gummer

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12/13/2012 05:43 PM

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...


QE4 is just getting started.....


QE4

by Larry Levin

"The Chairman of the Federal Reserve, Ben Bernanke, held a 2 day meeting with FOMC members and made an announcement:
QE4 is not only here, it is here to stay – essentially FOREVER."

[link to avidinvestorgroup.com]

heliben
 Quoting: Burt Gummer


Yes, and all the markets that should have gone up on that announcement, have instead gone down.

Central banks are losing their power to manipulate the markets through monetary policy because of the chronically low interest rate environment corner they have painted themselves into.

This happens at the end of debt/economic cycles...and we are very near the end of this one.
 Quoting: Saddletramp


Markets go up on QE4?
....not necessarily. naughty

People are pulling cash out of the equity markets before the end of the year to avoid the Fiscal Cliff taxes.
Watch that money go overseas or into precious metals.
 Quoting: Burt Gummer


Yes, but if that was the case you would expect commodities to go up...

Gold...down
Silver...down
Oil...down
Corn...down

Commodites are, for the most part, a true day trade...there is still plenty of time to take profits before the end of the year...

QE is no longer having a stimulating effect on the markets...it's the only answer to the question.
 Quoting: Saddletramp


It's not always an immediate action.....from one market to the other. People may have rolled it into cash for the moment. I believe the tax code says you have to hold it for 30 days before it is considered a CAPITAL GAIN...so they have time to rollover yet.

As for QE4.....I agree.....it's diminishing returns.
The more they dilute the currency....the less of a reaction more dilution has.
At some point, when / if people loose faith in the value of the currency....LOOK OUT! All hell will break lose overnight.

Can you say Weimar?....sure you can.

zoinks

Last Edited by Useless Cookie Eater on 12/13/2012 05:43 PM
Pappion
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12/13/2012 06:01 PM
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At some point they will have to raise interest rates. Real Estate will drop somewhat, and the cost of doing government business will be hurt.
Dr Einstein

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12/13/2012 06:23 PM
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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
nope. Bernanke intends on giving out free money indefinitely.
Thee Bob

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12/13/2012 06:28 PM
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uncleben2uncleben3
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Rachel Maddow is HOT!!! - Seriously I'd hit it.

A VOTE FOR JUSTIN TRUDEAU IN 2015, WOULD BE THE MOST COWARDLY & IRRESPONSIBLE THING A CANADIAN CITIZEN COULD DO TO THEIR OWN PEOPLE. GUN GRABBERS ARE THE COMMON ENEMY OF ALL PEOPLE.

GUN CONTROL HAS RESULTED IN THE SLAUGHTER OF 262 MILLION CITIZENS BY THEIR GOVERNMENTS OVER THE PAST 100 YEARS.

THE LIBERAL PARTY OF CANADA & THE NDP ENDORSE GUN CONTROL, AN ESSENTIAL POLICY OF HITLER, STALIN, MAO, POL POT, EDI AMIN, QADDAFI, SADDAM, ASSAD, & EVERY OTHER TYRANNICAL GOVERNMENT THIS PAST CENTURY.

CANADIANS MUST NEVER FORGET THE BETRAYAL OF BILLS C-68 & C-17. WE MUST NOT REST UNTIL THEY ARE FULLY REPEALED.

C-19 WAS A GOOD START......BUT JUST A START. GET OFF YOUR COLLECTIVE ASSES AND MAKE AN IMPACT. WE HAVE 26 MONTHS.

I, THEE BOB, SWEAR ON THE ALTER OF GOD TO FIGHT ALL FORMS OF CANADIAN TYRANNY AND SAVE MY COUNTRY FROM THE EVILS OF THE NEW WORLD ORDER. I WILL NEVER HAND IN MY GUNS. EVER. I AM A FREE MAN, I WILL NOT BE THE BITCH OF THE SOCIALIST ESTABLISHMENT. LEAVE ME ALONE.
Anonymous Coward
User ID: 24046300
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12/13/2012 06:33 PM
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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
Are Central Banks Really Planning To Raise Interest Rates?

[link to www.marketwatch.com]

Here's the skinny on this...

Any signigicant rise in effective interest rates by central banks will cause an instant market crash that will make 2008 look like a cake walk.

You see the Fed and other Central Banks have put themselves in a catch 22, we've been in a chronically low interest rate environment with almost non-existant economic growth for so long it is killing any market bumping lifespan for Quantative Easing Announcements, thereby reducing the power of Central Banks over monetary and economic conditions, and it's having a real dampening effect on fixed income people, and therefore the economy as a whole. But here's the Catch 22, if they raise interest rates, the markets instantly crash. This is all just another sign the economic/debt cycle is almost near its end.

The Fed's tool box is virtually empty now, except for The Nuclear Option, but that is not uncommon at the end of an economic cycle. Bernanke knows where he's at here, he's not stupid despite the role he plays on TV, he's just working within the system as it has been designed, but there are some differences between this cycle and the cycle that preceeded the Great Depression. World population and the sheer amount of debt and currency in the system come springing to mind, but also one of the things they did during the Great Depression was basically tax every man woman and child holding gold backed paper currency 40% overnight by increasing the value of the gold used to back that currency, or devaluing the currency.

But in the current cycle we are dealing with entirely fiat currencies, So Here Is The Nuclear Option, they only way they will be able to pull a version of the same stunt they pulled in the Great Depression is by de-valuing the currency everyone is holding after a hyperinlationary event (which is not growth but rather a loss of confidence in the currency) and then returning backing to said currency with a basket of commodities approach specific to each currency/country but also pegging all backed currencies together, and also taking much of the old currency out of circulation in the process (this will be true for both paper and electronic currency).

In other words, when they return backing to the currency, you will either have your bank accounts (electronic credits and debits) cut by a percentage with a keystroke on a computer, or you will have to bring in any actual paper currency you're holding and exchange it for the new backed currency, at a percentage deduction of course (just as an example, $200 old for $100 new). This will also apply to loans - loan principal will be cut by a percentage (including sovereign debt). But make no mistake, the commodities backing the currency will skyrocket in value, and the elite already own 90% of those commodities around the world, so they will gain despite any reduction in the value of the currency they currently hold.

This Keynesian Econimic system we find ourselves with has always been designed to funnel money from the bottom to the top, then have it trickle back down to the bottom (after a percentage is retained by the top of course), but the Trickle Down effect has been broken through repealing the Glass-Steagall act, Accounting Regulations, and outright greed that have essentially stopped the banks from loaning out money to consumers or small business'. And make no mistake, the breaking of that system has been quite intentional. These guys are not stupid, they recognize where we are in the bigger scheme of cyclical Keynesian Economics and, world cycles such as population, energy, and food, and they would rather break it themselves, then rebuild it, than lose control entirely, though they will certainly appear too...

Don't be fooled, remember, Ordo ab chao, no matter how much chaos you see unfolding around the world when this finally happens, it is all part of the bigger plan...the plan to soak you for half of your net worth overnight!

Not saying we are at this point yet, but if you're not ready for this, you might want to consider getting ready for this...
 Quoting: Saddletramp


Thanks for the post OP. Your last sentence states getting ready? How?
Thanks in advance
Anonymous Coward
User ID: 25140151
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12/13/2012 06:36 PM
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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
Truly, the Catch-22 is real for them.

Further, it has multiple and (fast growing) legs to it...indeed legs that make it increasingly difficult for tptb to hold together; this (very complex) status quo of the global money system (via, the reserve status of the USD).

One example of the (fast growing legs) to the Catch-22, that squeezes their (options) now is the issue of...(per the necessity of the extraordinarily low interest rates, lest the interest on the debt blows out the budget), is that now - due to these artifically low rates (from massive Fed TB purchases), key foreign trading partners, are less and less interested in holding their foreign exchange, in the USD. Not only...it's now to the point where alternative (trade settlement avenues - outside of the USD) are firmly in place, but not just yet in practice: not until, "IT'S GO TIME".

This exacerbates the problem: as more and more are less interested in holding the USD (due to more and more debasement and low rates), the result is less and less demand for the USD. Therefore less and less money (that otherwise would recycle back into the UST market) is no longer there...thus forcing the Fed to make up the difference, hence the less interested even more, are foreign holders of the USD. The (status quo) death cycle continues.

Any thinking person knows (per history; per the ancient books; and per common sense among many other things), that this will not end well...truly, not well at all.

Praise God forever and ever
Saddletramp (OP)
We Don't Rent Pigs...

User ID: 812002
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12/13/2012 06:39 PM

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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
Sorry I had to bail on the thread for awhile, but that is why I went ahead and pinned it.

Had to go pick up the kids at school...

banana2
"And how can a man die better than facing fearful odds, for the ashes of his fathers, and the temples of his Gods..." ~ Horatius

"Because he told the truth, and once you've heard the truth, everything else is just cheap whiskey..."
Saddletramp (OP)
We Don't Rent Pigs...

User ID: 812002
United States
12/13/2012 06:39 PM

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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
nope. Bernanke intends on giving out free money indefinitely.
 Quoting: Dr Einstein


free money is worth exactly that when confidence breaks down...
"And how can a man die better than facing fearful odds, for the ashes of his fathers, and the temples of his Gods..." ~ Horatius

"Because he told the truth, and once you've heard the truth, everything else is just cheap whiskey..."
Epic Beard Guy
Constitutional Crusader

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12/13/2012 06:40 PM

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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
When the EU banks all consoladate into one Frankenstien monster, they will be in control. When they start to raise rates, Benny will have to follow. That could very well be the straw that breaks the camels back. If you are not already prepped, you have a very short window to get that way. If you are not prepared, you might as well stand out on the curb and wait for the FEMA bus.
Hope for the best, but prepare for the worst.
"America is at that awkward stage. It's too late to work within the system, but too early to shoot the bastards." -- Claire Wolfe
Floobarb the Argnorf

User ID: 26218433
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12/13/2012 06:41 PM
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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
Are Central Banks Really Planning To Raise Interest Rates?

[link to www.marketwatch.com]

 Quoting: Saddletramp


Considering what Bernanke is now doing with the permanent QE4....it's not going to happen anytime in the near future.
 Quoting: Burt Gummer


And look at what a wonderful effect QE4 had on the markets...

Central Banks are losing relevance, you might want to read my entire post...
 Quoting: Saddletramp


The announced indefinite QE (printing money). You raise inflation to pull money back (destroy money).

It's antithetical to raise rates during QE. Not going to happen.
The Aluminated One
chumpisme

User ID: 12637312
Canada
12/13/2012 06:41 PM
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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
Saddletramp like your posts but your avitar/picture is a bit distracting
Dr Einstein

User ID: 29369511
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12/13/2012 06:47 PM
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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
nope. Bernanke intends on giving out free money indefinitely.
 Quoting: Dr Einstein


free money is worth exactly that when confidence breaks down...
 Quoting: Saddletramp


for some strange reason american economists seem to
think that america is invincible.
Anonymous Coward
User ID: 2164937
United States
12/13/2012 06:56 PM
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Re: Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
US Fed has been buying over 70% of long term US Treasuries over past three years (China stopped buying US debt, and is buying gold bullion).

QE4 is buying $45 billion per month of more US Treasuries. Fed has to buy because US Gov is deficit spending over $1trillion every year.

At some point in the future, Fed can just "forgive" all the US Treasury debt they hold to bring the total deficit way down. Since the Fed buys all that debt by printing money out of thin air, nothing is lost in forgiving a big chunk of US debt. Problem solved.

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