Everybody loves an all-you-can-eat breakfast buffet. Even, it seems, financial markets. Everybody bellied up to the serving line when The European Central Bank announced its new, mouth-watering menu consisting of a choice of rate cuts, additional bond purchases, and ultra-cheap loans for banks. Just as everyone reached for a napkin to mop the drool, ECB President Mario Draghi, according to the WSJ, signaled interest rates wouldn't fall any lower amid concerns about the impact on Europe's fragile banks. Damn. Nothing kills a good buffet like finding out there's no dessert at the end of the line and it was all over within an hour.
Perhaps this was just as well. Hunger makes for desperate eaters. The bonds central banks are creating are now are comprised of the sovereign debt they already own, which the central banks then in turn sell back to themselves. Think about this carefully. Have you ever opened a new credit card account so you could consolidate the money you owe on a wallet-full of other credit cards to create more room on the other cards so you could continue spending? Sure you have. How did that work our for you?
The truth of the matter is there is no healthy free all-you-can-eat buffet in the world financial markets. By cannibalizing themselves, the central banks are serving up the means for those downstream to cannibalize themselves. Thank you very much, but my body is not intended to be eaten as meat. I'd rather dig around in the earth for nourishment. Roots and grubs and the like. Oh, and then there is something else worth harvesting from the ground. Gold.
The next time you watch GONE WITH THE WIND and you see Scarlett O'Hara standing in the twilight holding up a turnip shouting, ' With God as my witness, I will never go hungry again, and none of my kinfolk either,' think of me. I'm holding up handfuls of Karatbars gold bullion in spendable sizes shouting to the sky, 'With God as my witness--"
Perhaps this was just as well. Hunger makes for desperate eaters. The bonds central banks are creating are now are comprised of the sovereign debt they already own, which the central banks then in turn sell back to themselves. Think about this carefully. Have you ever opened a new credit card account so you could consolidate the money you owe on a wallet-full of other credit cards to create more room on the other cards so you could continue spending? Sure you have. How did that work our for you?
The truth of the matter is there is no healthy free all-you-can-eat buffet in the world financial markets. By cannibalizing themselves, the central banks are serving up the means for those downstream to cannibalize themselves. Thank you very much, but my body is not intended to be eaten as meat. I'd rather dig around in the earth for nourishment. Roots and grubs and the like. Oh, and then there is something else worth harvesting from the ground. Gold.
The next time you watch GONE WITH THE WIND and you see Scarlett O'Hara standing in the twilight holding up a turnip shouting, ' With God as my witness, I will never go hungry again, and none of my kinfolk either,' think of me. I'm holding up handfuls of Karatbars gold bullion in spendable sizes shouting to the sky, 'With God as my witness--"
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