Fall Of The House Of Money: Artemis Capital On How €entral Banking Took Over Capital Markets...

[dkf]

One of the long-term recurring themes both here and in other more objective media, has been the encroaching domination of the central planning regime, or monetary authorities, read central banks, in the domain of capital markets and overall broad sovereignty, to the point where there is neither technical nor fundamental analysis left, but merely the question of where is the next batch of excess liquidity going to come from. Welcome to the death throes of the fiat system. Artemis Capital has released an extended must read presentation that summarizes just how global changes in trade, currency exchange, global monetary excess liquidity in recent decades, and especially in the coming future, will increasingly determine and define risk, and more troubling, the centuries old anarchism of state sovereignty. Anarchism, because as Europe has demonstrated so very well, in the current world the only real actors are the central banks. And with each passing day they become ever more powerful players in the global capital markets arena, as confirmed by correlations that rise every higher, approaching 1.000 across all asset classes. Anyone wondering why the only fulcrum variable for the future of risk will be FX exchange rates, and why any and all wars in the future will be primarily in binary "currency" format, we urge a careful reading of the attached slideshow by Artemis Capital titled "Fall of the House Of Money: Changes in Global Trade and Currency Exchange."

None of this will come as a surprise to regular readers, but some of the concepts bear repeating.

Artemis' Chris Cole starts with the premise of "World War €urrency"

Countries are artificially devaluing their currencies to generate competitive trade advantages or to finance deficits

http://www.zerohedge.com/news/fall-house-money-artemis-capital-how-€entral-banking-took-over-capital-markets-and-world

[banned from Kos]

1. More goldbuggery from ZeroHead - they are no friends to liberals

Their motif - Zero HEDGE until the system explodes and free market fundies rule! is crap.

Ayn Rand would love them.

[girl gone mad]

2. Can you comment on the substance of the post?

Zero Hedge is not a monolithic entity. They host articles from many different writers with many different points of view.

[banned from Kos]

3. yes. Excess liquidity? Where? In gold perhaps. Fiat system dying? Garbage.

The ECB and the Fed are more important than ever. China is pegging to our "worthless" fiat dollar. And they are buying the hell out of it.

Reports are that 70% of US $100 bills are outside the US as demand soars for USDs. M1 is only $2.3 trillion - which matches (or is lower) than the assets of the Fed's balance sheet. The USD is in prime shape.

The Doomers over there are wrong 98% of the time.