The weapon of choice is money, and central bankers utilize this weapon merciless to rain misery and death on the unknowing masses. Since Fiat was created, bankers have fed off the misery they have wrecked on humanity. How do they feed off this misery? They no longer take from Peter and give to Paul; they make sure that Peter and Paul try to rob each other and everyone else to survive. They control the game, and you are just a pawn in this game. The only day the outcome will change, is when the Fed is eliminated from the equation. Many Great presidents and leaders shared this opinion, and the following quotes prove this:[color-box color=”blue”]“If Congress has the right [it doesn’t] to issue paper money [currency], it was given to them to be used by…[the government] and not to be delegated to individuals or corporations.” President Andrew Jackson, Vetoed Bank Bill of 1836
George Washington, one of the wisest of all presidents, understood this very well and it’s revealed clearly in this quote.
“But if in the pursuit of the means we should unfortunately stumble again on unfunded paper money or any similar species of fraud, we shall assuredly give a fatal stab to our national credit in its infancy. Paper money will invariably operate in the body of politics as spirit liquors on the human body. They prey on the vitals and ultimately destroy them. Paper money has had the effect in your state that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice.” George Washington in a letter to Jabez Bowen, Rhode Island, Jan. 9, 1787
Another wise president was Thomas Jefferson, who was so against bankers that he thought they were worse than a thousand standing armies and he was correct.
“I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power (of money) should be taken away from the banks and restored to the people to whom it properly belongs.” Thomas Jefferson, U.S. President
“We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it.” Congressman Louis T. McFadden in 1932 (Rep. Pa) [/color-box]
Clear evidence that house of Rothschild is one of the main players behind the insidious Federal Reserve banking system.
“Give me control of a nation’s money and I care not who makes its laws.”– Mayer Amschel Bauer Rothschild
Central bankers have caused more deaths and pain than the most tyrannical of rulers could ever dream of achieving. This has all been done in a cold and calculating manner. The only incentive being dollars; hence, lives are traded and sold based on the dollar amount they stand to make. If it’s profitable for them to let you live, then you live, if not they take you out. Money trumps everything; life is just another number on a piece of paper.
To cause a boom, they flood the markets with money and to cause a bust; they tighten the spigots. This is how every bubble is created; some examples of modern day bubbles are dot.com, housing crisis of 2008, and the current hot money bubble.
The current ultra-low interest environment is fuelling a hot money bubble.
The first stage of this bubble was created by allowing corporations to borrow large sums of money and use this to buy immense amounts of their shares back, thereby artificially boosting the EPS and making it look like all is well. When in fact, nothing is improving and only the number of outstanding shares is dropping, which gives the false impression that profits are increasing when they are not. In fact, in many instances profits would have declined if the share buyback programs did not exist.
Negative Rates are God send for the Greedy, unscrupulous corporate world
The Corporate world will embrace Negative rates with gusto as it will be akin to crack addict being given a new dose of super crack. History does not change, only the outfits change, but the con is always the same and the ones left holding the empty bag are the sheep (otherwise known as the masses). The Fed is trying to put on a brave act, but you can already see them backtracking from the strong stance they took last year. Now they are stating that all is not well, and the economic outlook is weaker than expected. They will have no option but to join the rat pack; in this instance, resistance is futile.
The markets are totally controlled and manipulated; every boom and bust cycle was planned in advance of the event. The chart below illustrates that the economy is far from healthy, in fact, it appears to be almost in a coma and is being forcefully kept a life through immense injections of hot money. . Take away the hot money and this illusory economic recovery crumbles; if a market is healthy the velocity of money increases and vice versa. Look at the chart below, the velocity of money is dropping like a falling dagger. This means that the economy is in a coma, and the only reason it’s showing any signs of life is because of the massive injections of hot money it’s receiving.
Share buybacks breaking setting new records every year[color-box color=”green”]Last year share buybacks and dividends payments surpassed the one trillion dollar mark, this year they will probably surpass that level. Companies in the S&P 500 Index are poised to purchase over $165 billion of stock this quarter, bringing them dangerously close to taking breaking the 2007 record. [/color-box]
A clear illustration that stocks are moving in sync with corporate share buyback programs; when stocks pull back corporations jump in and buy. Take a look at the period from Jan to Feb, corporations stepped in and bought a boatload of shares, and the market soared.
Negative Interest rates & the “Devalue or Die Era.”
Currency wars are picking up steam; a host of nations are now joining the bandwagon, as illustrated by the chart below. Get ready for the next stage of the mighty currency wars; imagine having to pay the banks to keep your hard earned money. The worst being that the banks will lend this money out and earn interest on it; they will win on both sides.
Map illustrating how central bankers worldwide are embracing the era of negative rates
Image source: The Telegraph
Record share buyback debt fuelled binge will continue and here’s why:
Low rates have forced people to speculate so imagine what effect Negative interest rates will have on the populace and on the corporate world. To the corporate world, it will be a clear signal that they should continue raiding the cookie box. Buy back more shares, boost EPS, get higher bonuses, and do the same thing over and over again, until the cycle ends and then send the bill to the masses.
The bottom always drops out, but it’s the average Joe that is left holding the can. Nothing has changed, and nothing will change going forward
“Anytime when you’re relying solely on one thing to happen to keep the market going is a dangerous situation,” said Andrew Hopkins, director of equity research at Wilmington Trust Co., which oversees about $70 billion. “Over time, you come to the realisation, ‘Look, these companies can’t grow. Borrowing money to buy back stocks is going to come to an end.”’
“Corporate buybacks are the sole demand for corporate equities in this market,” David Kostin, the chief U.S. equity strategist at Goldman Sachs Group Inc., said in Feb. 23 Bloomberg Television interview. “It’s been a very challenging market this year regarding some of the macro rotations, concerns about China and oil, which have encouraged fund managers to reduce their exposure.” Full story
The Crowd Psychology perspective
The trend is up regarding share buybacks, and as Central bankers worldwide are gravitating towards negative rates, it is fairly safe to assume that this trend will continue for quite some time. The masses are not revolting against this form of illicit behaviour and until they do, expect the dollar amount committed to share buybacks to spiral out of control.[color-box color=”orange”]Nothing short of rising rates could put a damper on share buybacks, and there is absolutely no chance in hell of rates rising, not when the entire world is embracing negative rates. The second option is for Congress to pass new laws making restricting companies from blatantly repurchasing their shares with the sole intention of raising the EPS. The odds are better that some alien life form will contact us than of Congress passing such a law. [/color-box]
Manipulation is the order of the day, and one can see this in every aspect of one’s life. This trend will continue to gather steam, and it will only end when the masses revolt. The masses are notorious for responding very slowly, so we can assume that by the time they snap out of their comatose, the markets will be trading at unimaginable levels. We expect corporate debt to trade at levels that will make today’s insane levels appear sane one day. Against this backdrop you have only one option; every major pullback/correction has to be viewed as a buying opportunity. The markets will continue to be manipulated probably until the end of time, so until the trend changes, every strong pullback has to be viewed as buying opportunity.
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