Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Hyperinflation in Zimbabwe – It’s back, but maybe not for long
By: JP Koning

Gold Versus Bitcoin: The Pro-Gold Argument Takes Shape
By: John Rubino

Gold's Interesting Day
By: Rick Ackerman

Asian Metals Market Update: November-20-2017
By: Chintan Karnani, Insignia Consultants

GoldSeek.com Radio: John Williams and Louis Navellier, and your host Chris Waltzek
By: radio.GoldSeek.com

Gold Market Update
By: Clive Maund

Technical Scoop - Weekend Update Nov 19
By: David Chapman

Zero Hedge invites Financial Times to heed GATA's urging on gold suppression
By: Chris Powell

The Great Retirement Con
By: Adam Taggart

Perspective on the Gold/Oil Ratio, Macro Fundamentals and a Gold Sector Bottom
By: Gary Tanashian

 
Search

GoldSeek Web

 
Central Banks Are Beginning to Lose Control


 -- Published: Monday, 21 December 2015 | Print  | Disqus 

By Graham Summers

 

Earlier this year, we posited that the markets were reaching the point at which a significant percentage of investors no longer had faith in Central Banks’ abilities to put off the business cycle.

 

This now appears to be the case.  In the last month, three Central Banks have announced policy changes. All three of these changes were alleged to be bullish in nature.

 

They were:

 

1)    The European Central Bank (ECB) cutting rates further into NIRP and extending its QE program through March 2017.

 

2)    The US Federal Reserve hiking interest rates from 0.25% to 0.5%.

 

3)    The Bank of Japan (BoJ) boosting its ETF purchase program to $2.5 billion per year.

 

Following ALL THREE of these developments, the respective stock markets sold off.

 

First off, on December 3rd, the ECB announced it was cutting its deposit rate further into NIRP from -0.2% to -0.3%. It also announced that it would be extending its QE program through March 2017.

 

European stocks crumbled on the news, resulting in ECB President Mario Draghi having to make a desperate verbal intervention that the ECB would do more if needed the very next day. But even that failed to stop stocks from collapsing soon after.

 

http://goldseek.com/news/2015/12-21gs/image002.jpg

 

Next up was the US Federal Reserve.

 

In the build up to the Fed’s December rate hike, we were told repeatedly that this was a bullish development because it signified that the US economy was strong. Time and again, the financial media and Fed claimed that the rate hike would drive stocks even higher.

 

Then the Fed raised from 0.25% to 0.5%. The very next day stocks collapsed. They’ve continued to fall since.

 

http://goldseek.com/news/2015/12-21gs/image004.jpg 

 

Finally, last Friday the Bank of Japan announced that it would be boosting its ETF buying program by ~$2.5 billion per year. Again, this was meant to be a bullish development as it indicated the BoJ was willing to do more to prop up the markets.

 

The Nikkei bounced briefly on the news before selling off hard. Even the usual Monday boost failed to ignite a significant rally in Japanese stocks.

 

 http://goldseek.com/news/2015/12-21gs/image006.jpg

 

Thus, we have THREE Central Banks, all implementing policies that they claimed were bullish. ALL THREE OF THEIR STOCK MARKETS FELL SOON AFTERWARDS.

 

This is a clear sign that Central Banks’ promises and policies are no longer having the same effect they once had. Given that Central Banks have been the primary drivers of stock markets since the 2009 bottom, this strongly suggests that the Great Reflation efforts of the Central Banks are ending.

 

If this is the case, then it’s only a matter of time before stocks collapse. Every bubble of the last 15 years has resulted in a market crash. This time will be no different.

 

Smart investors are preparing now.

 

Best Regards

 

Graham Summers

Chief Market Strategist

Phoenix Capital Research


| Digg This Article
 -- Published: Monday, 21 December 2015 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.