Aberrant Central Banks

In a report to be presented on Wednesday June 17 in London, the Official Monetary and Financial Institutions Forum (OMFIF) will reveal that central banks are increasingly investing in the stock market and that they will most likely continue to do it in the future. “A cluster of central banking investors has become major players on world equity markets” can be read in the report, according to an article published in the Financial Times. What should be considered an aberration, that is, that central banks, whose “raison d’être” is maintaining the purchasing power of the currency, engage in such market distorting and destroying activities, is presented as a, at most, minor mistake, a quirk, a curiosity, something not to be ashamed of or worried about. Here you can reach the OMFIF press release, here the FInancial Times article and here the Zerohedge comments about this conspiracy theory turned fact.

TYR watches “Jim Rogers: We’re Wiping Out The Savings Class Globally, To Terrible Consequence”

Jim Rogers: We’re Wiping Out The Savings Class Globally, To Terrible Consequence @ Peak Prosperity

Chris Martenson interviews Jim Rogersan American investor and author. Rogers is the Chairman of Rogers Holdings and Beeland Interests, Inc. He was the co-founder of the Quantum Fund with George Soros and creator of the Rogers International Commodities Index (RICI). In the interview Jim Rogers draws attention on this unique moment in financial history where most central banks engage in “money printing”, wiping out the western world’s saving class, and creating the foundations for a potentially devastating future.

“For the first time in recorded history, we have nearly every central bank printing money and trying to debase their currency. This has never happened before. How it’s going to work out, I don’t know.”

“Throughout our history – any country’s history – the people who save their money and invest for their future are the ones that you build an economy, a society, and a nation on.”

“In America, many people saved their money, put it aside, and didn’t buy four or five houses with no job and no money down. They did what most people would consider the right thing, and what historically has been the right thing. But now, unfortunately, those people are being wiped out, because they are getting 0% return, or virtually no return, on their savings and their investments. We’re wiping them out at the expense of people who went deeply into debt, people who did what most people would consider the wrong thing at the expense of people who did the right thing. This, long-term, has terrible consequences for any nation, any society, any economy.”

TYR 4 October 2012 reads

Spanish Prisoners @ NYT The catalan secessionist movement has sound economic, cultural and historical roots. It should be respected. In all aspects but name, Catalonia is a colony of Spain.

Chart Of The Day: The Rise Of Global Central Planning @ Zerohedge It starts like this…”there was a time when the world had (somewhat) free markets.”. The article does not contain a lot of information, but it conveys the idea with perhaps the most explanatory power in order to comprehend the present crisis: western societies are fast morphing into a neo-feudal regime, confiscatory, unelected, undemocratic, repressive, where central banks play the role of exercising the power usurped to individual citizens and democratic institutions. Behind the central banks, the real “owners” of power, a financial elite that in many ways remains hidden. The process started with the Magna Carta goes into reverse.

French Economy Implodes @ Mish’s Global Economic Trend Analysis the Markit Composite PMI sports the steepest rate of contraction since March 2009 with job losses accelerating at the fastest pace in 33 months and output plunging at the fastest rate in 42 months.