Tag Archives: central banks

Bail-ins for everyone

17 Jun

Satan TrappedIt could only happen in Cyprus?

Think again. The latest thinking coming out of the Federal Reserve is that the entire world is going to be subject to ‘bail-ins’ to save all of the banks which own the Fed:

Here’s a quote:

“Perhaps more to the point for TBTF, if a SIFI does fail I have little doubt that private investors will in fact bear the losses.”

You have been warned.

And note the inability to call TBTFs (Too-Big-To-Fails) and SIFIs (Systemically-Important-Financial-Institutions) what they are, which is ZBs (Zombie-Banks), and the use of these obfuscatory acronyms perhaps designed by neurolinguistic programming gurus to make their unfailability ‘inevitable’ in our minds.

Perhaps, Jeremy, we might let the free market work? It’s an idea which gave us western civilisation. It’s a shame we started letting go of this idea in 1913, when the Federal Reserve was created by the big banks of New York to eventually get us into this mess.

The Gold Chimpanzees

24 Apr

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So, it appears bullion banks have been conspiring to take down the futures price of gold to try to profit from the ensuing over-leveraged multi-stopped panic.

But this is absolutely fine with me, on several different levels.

First, I would definitely be fine with this in an entirely private world, if private speculators directing bullion-market banks tried to do this to extract economic profits.

If they got it right, they would make a fortune by exploiting the market’s incorrect Hayekian knowledge that gold was more highly valued than market reality (the only true reality) actually judged it to be.

If they got their massive shorting bets wrong – along with the associated price manipulation shenanigans – then they would be bankrupted (or at least lose extremely heavily) and the imperfect Hayekian knowledge of the market would show us that gold was actually undervalued according to the fickle instantaneous subjective collective desires of eight billion free people.

However, alas, we fail to live inside a private market.

We live instead inside one in which the chaos of delusional force-initiating mafiosi government constantly tries to interfere with market realities, for instance by telling these bullion bank shysters to keep any profits they may make on shorting gold and by promising to print infinite amounts of paper scrip to back up any fiat losses they might make.

Heads you win, tails you fail to lose is a bet I would like to be on the inside track of, if I ever suffered an ethics bypass on robbing my fellow human beings.

So, am I huffing and puffing with indignity as I watch the manipulations of the paper gold market play with what actually may be real volatility in gold’s relentless rise against fiat paper scrip?

Of course not.

I’m just buying more physical unleveraged gold, thankful that the western central banks are willing enough and stupid enough to keep selling me hard cold real tangible assets in return for their elastic paper monkey bubble notes.

The problem of retaining my gold when these self-same chimpoid government monkeys try to steal it back from me in the future, to fund future violent stupidities, I will leave to another post.

In the meantime, back up your truck. Enjoy the cheap gold while it lasts. And fill that truck up.

The unintended consequence of the central planning government bureaucrat clots giving us all all of this gold at knockdown prices will show itself soon enough, fear ye not.

The trick is to be on the right side of the George Carlin joke, when it eventually materialises, to leave homogenised egg all down their bamboozled condescending faces.

You have to remember that these clowns are the same chubby fools you were with at school who spent too much time reading mathematics books, too much time feeling sorry for themselves, and not enough time working out how to chat up the opposite sex.

They’ve spent their lives trying to get revenge on you for kissing all the people they wanted to kiss, but they still failed to learn the only lesson that matters.

And that is, that in the end, the truth will out. And the truth is, that these people, these central bankers, these masturbationary fools, these chubby sad incompetents, are all losers.

And that you are a winner.

And as you’re a winner, help them keep losing to prove me right.

Buy gold. Keep it physical. Keep it unleveraged.

And make sure you keep it safe enough to stop it being stolen back from you in the future.

You are fighting the good fight.

And together, in the glorious pioneering spirit of 1776, we shall win.