WARNING: Western Central Banks Are Now On The Verge Of Losing Control

Thursday, June 4, 2015
By Paul Martin

June 04, 2015

With the Dow trading lower along with oil and gold, today a legend in the business sent King World News a powerful piece warning that central banks in the West are now on the verge of losing control.

From Art Cashin’s notes: Another Pair Of Eyes – As I was getting ready to “wrap” these Comments, a note from my friend Peter Boockvar, over at the Lindsey Group, came across my desk. Here’s a bit of Peter’s observations:

I’ve said this before but I’m sorry, I need to say it again. What we are witnessing in global markets is the inherent contradiction writ large that is modern day monetary policy where dangerously ZIRP, NIRP and QE are considered conventional policies. The contradiction is simply this: the desire for higher inflation if fulfilled will result in higher interest rates that central banks are trying so hard and desperately to suppress.

Outside of the short end of the curve, markets will always win for better or worse and that is clearly evident now. The ECB is getting their first taste of the market talking back and in quite the violent way. In the US, the bond market is watching the Fed drag its feet (its never-ending) with wanting to raise interest rates and finally said enough is enough. The US Treasury market is tightening for them. Since mid April, the 5 yr note yield is higher by 40 bps, the 10 yr is up by 55 bps and the 30 yr yield is up by 65 bps.

The Rest…HERE

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