Apparently, our central banker community has either taught GoldmanTAX its practices or studied those of Lloyd BlankCHECK in close detail. Why would any central bank, as a money creation entity mandated to be the supposed ultimate risk adverse goto financial anchor and facilitator of their currency, let alone a group of them, publicly admit to its hedgefund operations and surreptitious and direct buying of equities? I have often indicated on these pages that such non-disclosed activities are creating virtual hedgefunds out of our central banks…and they are not exempt from margin calls. So, covert purchases of assets are now OVERt ones. I think we need to turn to a page in the GS playbook, issue a “buy" report and “sell” as much as you can to anyone who believes it. It certainly strikes me as funny that the central bankers would now suddenly want to turn an altruistic and genuine face now…
They are most certainly NOT, altruistic, genuine or sanguine. An admission of direct buying in clearly non-disclosed accounts of highly risky securities is not reassuring at all to the public for a custodian of a currency and its financial institutions. This admission now, is rather odd timing right as the pressure on Central Bank QE is ratcheting up significantly. To put this in perspective, these non-disclosed account purchases are not all that different from a married pastor being involved in an affair but not getting caught. Then to attempt to soften the fallout of his lapses or imminent discovery, renders a PUBLIC admission (as the Central Banks have just done) to simply purchasing sexual favors. In fact, the sad reality is the married pastor’s likely has an unfavorable discovery to be found upon closer investigation - as they always do. Perhaps it could be discovered that the said favors were in fact drug fueled orgies with cross dressers and assorted other oddities. Central Banks purchasing debt in bankrupt entities and other outright high risk securities is not that different from such a dereliction of integrity as our gluttonous pastor…it is veritable sacrilege and likely to spread disease.
So, why do central banks admit to their affair now? I would think that the answer to that question represents a classic pump and dump and perhaps perfect for the stragglers who will want to believe that a gratuitous open admission - and one that amounts to an one that occurs at the end of party.
Central bankers admit to an affair…but what is under the covers…
THE CENTRAL BANKS ARE CLEARLY TRYING TO GET SOMEONE ELSE TO HOLD THE BAG - right out of the Goldman handbook...
I have been very busy working on a significant software release…Gold and Silver and a number of other key markets at at pivotal junctures as can be seen below.
For those who think this is a wondeful opportunity to buy the metals…I think the margin calls coming on the impending weakness will spread to nearly every inflationary asset and that the propsects for precious metals, paper, physical or imaginary are not very good.
By the looks of things, the markets are going to get UUUGGGLLLLYYYY with a capital U very soon. There is just too much leverage everywhere and when it blows up it most likely look like the Gold and Silver crashes we just saw…only those have yet to spread and, in my opinion, have quite a bit further to go.
I use Multicharts Charting and Backtesting Software.
I post high resolution charts made with Multicharts and Adobe Illustrator. Click on chart for a more detailled view.
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