Central bankers rely on mass hypnosis to artificially pump up markets for as long as possible
NaturalNews.com
Thursday, February 18, 2016
Once the power to manage expectations has been lost, the central bank bag of tricks is empty. (Story by Charles Hugh Smith, republished from CharlesHughSmith.Blogspot.com.)
No one knows precisely how and when the global unraveling will impact their corner of the planet, but we do know one thing with absolute certainty: central banks are out of tricks.
Like all good conjurers, the major central banks will claim that their magical powers to inflate asset valuations and inspire the animal spirits of risk, borrowing and spending are unimpaired, but this time the audience knows the truth: their magic is threadbare and their trick-bag is empty.
Obfuscation and doublespeak are primary components of central bank magic.The magic is largely semantic: if the Federal Reserve claims it can restore the economy and the stock market with reverse repos and other financial legerdemain, the corporate media is always ready to repeat this dubious claim until it is accepted as self-evident.
The central bank magic is fundamentally a mind-trick of managing expectations. If the Fed (or other central bank) announces a quantitative easing or market-goosing program, punters buy assets anticipating the success of the bank’s program, effectively creating the very push higher the bank intended.
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