{"id":8834,"date":"2015-06-05T05:59:10","date_gmt":"2015-06-05T10:59:10","guid":{"rendered":"http:\/\/olduvai.ca\/?p=8834"},"modified":"2015-06-05T05:59:10","modified_gmt":"2015-06-05T10:59:10","slug":"the-central-banks-are-losing-control-of-the-financial-markets","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=8834","title":{"rendered":"The Central Banks Are Losing Control Of The Financial Markets"},"content":{"rendered":"

The Central Banks Are Losing Control Of The Financial Markets<\/a><\/h3>\n

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\"Dollars<\/a>Every great con game eventually comes to an end.\u00a0 For years, global central banks have been manipulating the financial marketplace with their monetary voodoo.\u00a0 Somehow, they have convinced investors around the world to invest\u00a0tens of trillions of dollars<\/a>\u00a0into bonds that provide a return that is\u00a0way under the real rate of inflation<\/a>.\u00a0 For quite a long time I have been insisting that this is highly irrational.\u00a0 Why would any rational investor want to put money into investments\u00a0that will make them poorer<\/strong>\u00a0on a purchasing power basis in the long run?\u00a0 And when any central bank initiates a policy of \u201cquantitative easing\u201d, any rational investor should immediately start demanding a higher rate of return on the bonds of that nation.\u00a0 Creating money out of thin air and pumping into the financial system devalues all existing money and creates inflation.\u00a0 Therefore, rational investors should respond by driving interest rates up.\u00a0 Instead, central banks told everyone that interest rates would be forced down, and that is precisely what happened.\u00a0 But now things have shifted.\u00a0 Investors are starting to behave more rationally and the central banks are starting to lose control\u00a0of the financial markets<\/a>, and that is a very bad sign for the rest of 2015.<\/p>\n

And of course it isn\u2019t just bond yields that are out of control.\u00a0 No matter how hard they try, financial authorities in Europe can\u2019t seem to fix the problems in Greece, and the problems in Italy, Spain, Portugal and France just continue to escalate as well.\u00a0 This week, Greece became the very first nation to miss a payment to the IMF\u00a0since the 1980s<\/strong>.\u00a0 We\u2019ll discuss that some more in a moment.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

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The Central Banks Are Losing Control Of The Financial Markets   Every great con game eventually comes to an end.\u00a0 For years, global central banks have been manipulating the financial marketplace with their monetary voodoo.\u00a0 Somehow, they have convinced investors around the world to invest\u00a0tens of trillions of dollars\u00a0into bonds that provide a return that […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1989,88,122,124,6124,6061,6125,317,6126,6127,426,431,6128,6129,6065,6130,506,6131,6132,536,662,6133,6134,6135],"class_list":["post-8834","post","type-post","status-publish","format-standard","hentry","category-economics","tag-1989","tag-bonds","tag-central-bank","tag-central-banks","tag-con-game","tag-financial","tag-financial-marketplace","tag-financial-system","tag-global-central-banks","tag-higher-rate-of-return","tag-inflation","tag-interest-rates","tag-invest","tag-investor","tag-investors","tag-irrational","tag-markets","tag-monetary","tag-monetary-voodoo","tag-money","tag-quantitative-easing","tag-rate-of-return","tag-rational-investor","tag-rational-investors"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8834","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8834"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8834\/revisions"}],"predecessor-version":[{"id":8835,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8834\/revisions\/8835"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8834"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8834"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8834"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}