Mario Draghi says he “will act if the current turmoil threatens the outlook”. Determined then – albeit somewhat vague. The declaration, one might suggest, of a central banker holding 9 high in his poker hand.

For myself, I want to know more on the what and how dimensions. I mean, it could be he might act silly, up or (less likely) his age. He could act now, in due course, or for the party of the second part. He could act natural, or badly – the role of Richard III in the manner of a club singer, for example.

But before asking what form of action might be involved, I suspect we need to find out what outlook he thinks is threatened. I think a huge threat from the dying months of mad monetarism is hyperinflation. If that’s threatened, I’d rather he auditioned, but failed to get the part.

The reason why I could never be a central banker is that the temptation to say something daft at the key moment would be irresistible. Imagine what a charge it would be to have the eurozone, London and Wall Street stock indexes on screens in front of you, and then watch the bourse equivalent of a triple by-pass operation taking place – without anaesthetic – as one spoke. No sex could ever be that good.

“Having carefully considered all the monetary stimulus and geopolitically diplomatic options open to us, my cat Sophia and I have decided that the best – indeed only – course of action available to the Board is that of suspending the activities of mainstream global media magnates. As from one am tomorrow morning, Mr Rupert Murdoch will be suspended from Jerry Hall’s nose by his goolies with piano wire, the Barclay twins will be suspended above but within easy reach of the nearest Channel shark, Mark Zuckerberg will be suspended by his own patarde, and Jack Dorsey will be suspended by his own followers.”

Now those of us who think bourses are not the only way to run a railroad might even be converted to the idea by such a clear statement of intent; but we all know it ain’t gonna happen.

So the only thing left for right-minded free thinkers to do is accept that Signor Draghi has nothing whatever to contribute. Lest it slip our collective mind, this is the man who played Cisco Zappata the Mexican Macho two years ago with his “whatever it takes” promise. It turned out to be an empty promise….and so we can safely assume that – like Yellen of the Fed last week – nothing he either says or does is going to make any difference.


If no amount of Marios, Janets, Georges, Marks and Abes will stop the inevitable unravelling of monetarist globalism, then why has there been a bounce in the markets today (see earlier post re Japan)? Today has seen an uninspiring mixture of no news, equivocal news, and bad news: good news has not been seen other than in the self-created news that banks have recovered their stock valuations (somewhat) and the, um, consequent rise of overall indexes on the back of that.

We in the West are fond – few more than I – of pointing an accusing finger at the Chinese People’s Bank when it comes to the obvious propping up of the Shanghai composite. But I posit something contrarian now in the shape of not one but two distinct possibilities about whatTF is really going down (or up) on Western Exchanges:

  • Big private money SOL trading is directionalising sap money upwards before pulling the plug in order to reap a fast buck…just one last milk of the Old Cow, guys; and
  • Sovereign printed money is diving in under an assumed name in order to postpone the storming of the Bastille.

A third sub-possibility – that there is a degree of cooperation between the two – I would not dismiss out of hand. After all, Russian export income, the Iranian currency, the Libor rate, the Gold tracker sector and banking idiocy have all been either overtly or covertly massaged by such marriages based on mutual interests.

I suppose the simple question I ask is this: are stock markets just stupid? Or is there – like trending commercialism on Twitter – method in the malevolence from time to time?

I’m tending – listing even – towards the latter possibility, but I’m willing to be listen to the reason of threaders.

And please bear in mind that the usual Slog mantra applies: I am far more interested in hearing the cogent opinions of those who know something, rather than those who claim to know everything.

Connected at The Slog: You can check into the Bates motel, but not out

17 thoughts on “CRASH2, CORRECTION3, ACT IV, SCENE V

  1. John
    Sorry !off on a tangent again.
    Re dead prat bounce: My observations are. that this is not true every time.
    One should look to see how many of our most prized prats ….do in fact end up in megadosh little earners….sumit about charities ! aint there?


  2. malevolent or just stupid?? .. well both.. and now because of the desperation they are starting to ban currency notes. the big ones first because they account for most of the cash in circulation. the malevolence is the pump and dump whereby they draw more suckers in and leave them high and dry.. that is ongoing ponzi via insider dealing and fiddling. .. the stupidity being that debauching the currency has never ever proved positive in the long term… the fact that they must know that is more malevolence…

    Liked by 1 person

  3. John

    It is my belief that with electronic trading it is easier than ever before to manipulate the market. A couple of mouse clicks start the ball rolling, the humans get involved and all of a sudden you can pull out just as quick, leaving the saps to hide your trail. Their would need to be collusion between the big players otherwise the audit trail would stand out like a chapel hat peg. But the outcome is the same, big money grabbing what it can before the game is up.

    We are now seeing events that have never happened before, that do not have any logical reason. That is because the whole system has been so corrupted the players are literally making this up as they go along. The only certainty is that their are no rules.

    Liked by 2 people

  4. P.S.

    The volatility will dampen when the big boys realise the saps are either broke or have their piggy banks full of gold.


  5. I don’t claim to know anything but, I have a gut feeling that, ‘method in the malevolence from time to time?’ is just spot on. They play us for suckers because, on the whole, they get away with it.


  6. well I indeed know something. I know that the Banksters will do anything to stop a massive 1929 style precipitous global collapse. But that is all I know. So maybe, just maybe, a new game of inserting protectionism by degrees while still propping up the western stock markets by continuing the deficit funding be attempted. I mean I do not see the sense of a mass of no shows at the next Fed T bill auction, And I would bet the banksters are quietly hoping the Greeks lefties will grow some balls and join the Nationalists in a Grexit. before Tsiparis is forced to default. It won’t happen) But as for the global currencies, I do not see anyone wanting to pull the plug on this farce anytime soon. The world is acting as though the money actually has some value and the fantasy still seems to work so let the printing presses keep rolling.

    Liked by 1 person

  7. I know something: if the slide from entropy into atrophy is to be arrested, we need value and sustainability. Mario Draghi, a fiatista who gobbles his gook with all the relish of a a linguistic Chow Hound, and his ilk present an insurmountable obstacle to such objectives as sustainable demand simply cannot be supplied by cheating with numbers, and real value cannot be created through the endless recycling of debt. Forget Cisco, Emiliano knew what the fight was about!

    Liked by 1 person

  8. The truth is there will be no real recovery, ever!

    The ponzi scheme will be kept alive for as long as possible, with the introduction of NIRP and a ban on all but the smallest denominations of cash, because the elite do not give a damn, as they will soon be looking to run and hide in those nice underground bunkers paid for with citizens taxes, after we enter a full economic collapse and the commencement of WW3, plus they will make sure that there are enough Jihadi’s in the West to start a race war.

    That should be enough to cover up the failed fiat ponzi scheme and take care of the ‘excessive’ population!

    Yet another example of why we in the West are heading into the abyss……


  9. It is all a smokescreen while the international trade negotiations are secretively bulldozed through. The corporations will have won and the cabal behind them will be masters of the universe, If humanity was supposed to benefit from these trade agreements then they would not be hidden from us, By design is penury thrust upon us; Time to open a ropewalk,.


  10. Hieronmub it is amazing but not unexpected,& again attacking small mutuality groups,i really believe that the 1% want to be the biggest group left in humanity!
    Canexpat flea markets will have to find a way to continue! but i think the mentality is we will be forced to buy new!


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