How Bloomberg’s Algo-Writers Serve The Cult Of Keynesian Central Banking

If you ever needed proof that the financial press has been completely indoctrinated in the cult of Keynesian central banking consider the attached Bloomberg note on the recent tiny decline in Chinese industrial company profits. Without breaking for anything more than a comma, its hapless Hong Kong stringer, one Malcolm Scott, conjoined the fact of less profits with the imperative for moar……money.

Industrial profits in China fell the most in two years, underscoring the need for looser monetary conditions as the world’s second-largest economy slows.

Perhaps Bloomberg is no longer using carbon units to post its news stories and has gone straight to algo-writers designed to directly feed algo-readers without the bother or cost of human intercession. But regardless of whether “Malcolm Scott” is carbon or silicon based, the attached is clearly presented as a news story and the above excerpt as a declarative sentence. Accordingly, by the lights of Bloomberg and the rest of the mainstream financial press which it echoes, it is now the job of central banks to print money to ensure that at no point in time do profits—-and therefore their stock market capitalizations—-fall by even so much as 2.1% over prior year. Continue reading

Swiss Yes Vote Possible – First “Gold Rush” Of 21st Century?

Submitted by Mark O’Byrne  –  Founding Partner of  GoldCore

There are just 3 days left until the“Save Our Swiss Gold” referendum this Sunday. On November 30, voters in Switzerland will head to the polls to decide whether the Swiss National Bank (SNB) should back the Swiss franc with gold by increasing its gold holdings to 20% – up from current levels of 7%.

The conservative Swiss People’s party proposed the initiative, called “Save OurSwiss Gold“, with the intention of boosting the security and financial and monetary independence of Switzerland in these  times of financial uncertainty. They believe that a 20% gold holding will protect the Swiss people from currency debasement, currency devaluation and an international monetary crisis.

In the case of a “yes” vote, gold prices are likely to surge. Analysts do not believe a yes vote is possible. However, analysts have got the mood of the people wrong in many referendums both in Switzerland and throughout Europe in recent years.

We believe that the vote will be very close – much closer than many analysts suggest. After a massive, very well funded and highly coordinated campaign by the banking and political establishment in Switzerland, the polls show that the no side is in the lead.

It is worth remembering some of the recent referendums in Switzerland showed the people would vote with the government and establishment political parties in the polls. Subsequently, they did not.

It is worth remembering some of the recent referendums in Europe showed the people would vote with the government and establishment political parties in the polls. Subsequently, they did not. Continue reading

Economic Energy Elation

By Bruno de Landevoisin

Tis the season for exceptional economic easing.  The entire energy complex and molten base metals are in a fantastic Fall free fall, whilst the juiced stock market apologists and U.S. exceptionalist pompom wavers are out in force emphatically heralding a new found era of unabashed American consumerism.  Undoubtedly, the slick super-sized shale surplus is about to make it all magically materialize.

Apparently, according to these cheerful dreamers, the well documented, severe slowdown of three of the four largest industrial economies on the planet (China, Japan and Germany) has absolutely nothing to do with the careening commodity crash.  Not to mention that the 2nd largest economic bloc on the globe, the Eurozone, is mired in a metastasized morasse of malignant monetary malfunction.  Just last week IMF director Christine Lagarde stated that a diet of high debt, low growth and high unemployment may yet become “the new normal in Europe”.

The world economy is indeed standing at a precipice, and yet, all these wall street country club clowns can think about is the multitude of new iChristmas gifts that will undoubtedly be placed under their terrific twinkling trees.

The incessant equity cheerleading doesn’t stop there.  Evidently, the fabulous frenzied flag waving is also trumpeting the jubilant re-coronation of King Dollar, which will keep the big box superstores sizzling with stupendous sales of cheap Chinese crap all season long.  I suppose, the fact that a substantial portion of the meager U.S. GDP growth over the past 5 years, that has come in large part from a rehabilitated export sector operating under more favorable exchange rates, is totally immaterial, which, by the way, is now fading as fast as green shoots on the vast frozen global economic tundra. Continue reading