There are no markets anymore, just interventions — in 20,000 words
By: Chris Powell, Secretary/Treasurer, GATA
GoldSeek.com
Friday, 16 October 2015
Dear Friend of GATA and Gold:
Perth Mint research director Bron Suchecki today calls attention to an erudite but exceedingly long analysis of modern markets by Christopher R. Cole of Artemis Capital Management in Austin, Texas, whose central point seems to be that for years now central banks have undertaken pre-emptive market manipulation, purchasing a substantial portion of their own nations’ bond and equity markets and effectively placing a put under those markets.
Cole writes: “As markets now fully price the expectation of central bank control, we are now only one voltage switch away from the razor’s edge of risk” — the “voltage switch” being a reference to the mechanism that barely prevented the explosion of a nuclear bomb in the crash of a B-52 bomber in North Carolina in 1961.
Suchecki writes of Cole’s analysis: “One point that caught my eye and that I think goes a long way to explaining gold’s bear market is his identification of a shift from the central bank put, ‘policy action employed in response to, but not prior to, the onset of a crisis,’ to pre-emptive central banking, which is ‘monetary action in anticipation of future financial stress to avert a market crash before it starts.'”
To your secretary/treasurer Cole’s analysis sounds like an enormously long-winded elaboration on a high school graduate’s remark at GATA’s conference in Washington seven years ago: “There are no markets anymore, just interventions”:
The Rest…HERE
