Bank for International Settlements Authorizes Central Banks to Initialize The 'Great Unwinding'

Here it is guys, the top of the pyramid is encouraging the Central Banks to initiate the scaling back of the money printing and low interest rates. The known ramifications that initially occur are expected. It may be painful for the bottom of the food chain, but the middle and tops of the pyramid can usually enjoy some nice returns if they pay attentions and begin their adjustments NOW.

Push on with the 'great unwinding', BIS tells central banks
Major central banks should press ahead with interest rate increases, the Bank for International Settlements said on Sunday, while recognizing that some turbulence in financial markets will have to be negotiated along the way. [this is code for a market dip]

The BIS identified four main risks to the global outlook in the medium-term.
A sudden flare-up of inflation which forces up interest rates and hurts growth, financial stress linked to the contraction phase of financial cycles, a rise in protectionism and weaker consumption not offset by stronger investment.

"Since we are now emerging from a very long period of very accommodative monetary policy, whatever we do, we will have to do it in a very careful way," BIS's head of research, Hyun Song Shin, told Reuters.

"STAY THE COURSE"

"If we leave it too late, it is going to be much more difficult to accomplish that unwinding. Even if there are some short-term bumps in the road it would be much more advisable to stay the course and begin that process of normalization." Shin added that it will be "very difficult, if not impossible" to remove all those bumps.

What these carefully crafted statements are implying is, if you don't shift your assets and investments in the very near term, you may wake up one morning to be disappointed at double digit losses in your portfolio. Of course the question remains, what is safe??? I would say bullion for sure, and we are in luck because they look like they bottom, at least my belief/gut instinct tells me so. I even made a little comparison window for myself a couple weeks back for me to have an at a glance view at some of the patterns. I seem to have misplace it though so I will just quickly summarize what I noticed. That 2015 was behaving bearish in downward trend with lower lows. It bottomed out at around 1050, and began a bullish sentiment through 2016. Normal patterns always seem to see a price dip at the end of year. Anyways, when I looked at this years chart, I noticed each price dip thus far bottoms at a higher low than previous. We have had three successive ones, and this one has been about 7-10 days now.

Therefore it is my belief, that this news about the BIS encouraging the great unwinding and turbulence and bumps in the road is going to trigger higher gains for bullion now, especially since falling equities is what the BIS is most probably talking about with bumps and turbulence.

They did make some interesting comments on the variables for inflation, and whether specific targets are even necessary any longer.

The question for central bankers, therefore, is whether new technologies and working practices had fundamentally changed the inputs in their economic models and whether it is right to keep such a heavy focus on keeping inflation at certain levels -- near 2 percent for likes of the European Central Bank and U.S. Federal Reserve.

"Inflation is certainly not the only variable that matters ... and we should keep one eye at least on financial developments," Shin said.

A broadening away from inflation-targeting to financial market conditions would require a mindset change in large parts of the world and could speed up interest rate cycles.

When the U.S. Federal Reserve last embarked on rate increases more than a decade ago, it took two years to raise them from 1 percent to above 5 percent, with hikes at 17 consecutive meetings. In the current cycle, it has taken 18 months for a 1 percentage point increase.
The BIS’s financial results, which were also published on Sunday, showed the Swiss-based bank had made a net profit $1.124 billion over the year to March 31 and had a balance sheet worth $329 billion.

My closing opinion is that this news is vindication for our friends on here who have been suggesting that a correction is in order very soon, and it could be more than just a moderate correction. Lets keep up the focus guys! Those of us who are positioned to short their positions in exposed equities should take the soonest opportunity to do so, and direct it towards assets that will trend upwards. Usually hard assets and the like.

I have no idea how this will affect the price of oil however.

a reply to: worldstarcountry

Thank you spreading the education and posting this important information. I love your message of stacking the metals as a safeguard.

I wonder if the people in the know are finally positioned for the crash. They have exited out of their long positions, piled in on the shorts and completed building their bunkers.

Lets get ready to rumble.

a reply to: ClovenSky
They own all the GOLD LOL! Thats why they encourage us not too. Anyone in the know will probably take some negligible public losses to their name, while their hidden shell companies that nobody knows about unless they target someone for forensic accounting pull the big money in gains. So I would infer that yes, they are quite well positioned.

Thanks for the head's up. I'm reading a lot of warnings, and have set myself up the best I could if there's a financial issue. Some would call it doom porn. I call it history repeating itself.

It was only a matter of time before they were going to do this. A lot of people will lose money on this. Our government has no power over this, it is all under the control of the big banks. It is going to happen so just watch to diversify your investments, do not have it all in stocks, keep some in savings accounts and a little cash at home is advisable, enough to support you for a couple of weeks to a month is fine in case there is a short term run on the banks.

At least we got a little heads up that it is going to happen shortly, that is a plus.

a reply to: worldstarcountry

This is big... the whole "kicking the can down the road" and unlimited printing of fiat currencies could only last for so long, even with the major manipulation of the markets, the Plunge Protection Team and the Exchange Stabilization Fund.


Tick... tock... I see a major crash coming down the pike by November at the latest, but you never know what other tricks the central bankers have up their sleeves. Time. will. tell.

Yep- here it is. I've been saying it'd be here second half of this year for a couple years...

I've managed to liquidate my big assets, and the majority is USD at the moment. No idea if that's a good idea or not, but it's another week before I can even touch it.

Best case for me, massive deflation- then my money can actually buy the amount of land I want, and the tools I'll need to develop it...

a reply to: worldstarcountry

So is the idea to reel in all the money that was tossed to the super wealthy?

originally posted by: lordcomac
and the tools I'll need to develop it

Tools are more than affordable at the moment. Real tools require delivery, calibration and clean power.

As for the land ... they'll get you with taxes when it suits them. Don't go so big you're recognized.

a reply to: worldstarcountry

some turbulence in financial markets will have to be negotiated along the way. [this is code for a market dip]

Or could it mean, another banking bailout? And how many will know of this article (even if they do) and blame it on the Trump administration?

I'm invested but no longer find myself able to concentrate on markets. Hoping gold at least holds it's course.

The BIS is a week late... the USA Federal Reserve already announced back on the 15th-16th of June that They will be reversing the Quantatative Easing in which they first bought up all the worthless Mortgage-Backed-Securities and then parlayed some $40-80 per month into the Stock Market Equities (over $550 billion in the first 5 months of 2017)

the Fed promised to have another rate-hike (but denied the government too broke to pay higher interest rates on the new issued paper)... The Fed Reserve will be liquidating most of the mere $4 Trillion it has on It's books (the actual number sources say is closer to $12 Trillion in UDSs created out-of-thin-air... they expect to have banks repurchase their once worthless paper, the Fed will also unload $40 billion per month of Stock purchases as they unwind the Quantatative Easing that also created the DOW Stock Market Bubble


Next off, most nations are redeeming their US Treasuries held as reserves, because they are losing confidence in the USD retaining It's value & strength....despite the projected rate increases that is supposed to keep this interest-paying paper a desired store-of-wealth, most everyone is unloading as they expect high inflation (which is really just devaluation of the USD/FRN)

youse will have to do a personal search because I don't keep too many links for stuff that's 2 weeks past and did not pique interest already


I think that this BIS & Fed Reserve business of flooding the economies of the world with the money-created-from-air is the Big Thing which was predicted to happen between 6 July-16 July, when several credentialed economists with You-Tube videos warned ""Gold will Explode in 26 days""

there might well be a serious rotation out of stocks/paper debt & into commodities like metals... but somehow I think the elites will keep manipulating the futures contracts on Au, Ag & metals/ land... but high end real-estate will disappoint badly...

who will be able to fund the higher tax assessments as the years string along ?

a reply to: liveandlearn


I am afraid it will be bail inns. Its been coming for some time. Its very difficult to get cash,. And in this situation it will be worthless anyway their is a de facto credit control already. I think its the derivatives which will cause the main problem, when everybody wants physical delivery of PM's and its not there, their isn't much else which will do the trick. But canned goods will be great for a bit of bartering. From what I can gather the bubble collapse is well underway, its just not being reported.

originally posted by: St Udio
... the Fed will also unload $40 billion per month of Stock purchases as they unwind the Quantatative Easing that also created the DOW Stock Market Bubble...

This could drown the market. Yellen and the Fed has been talking about this unwinding for several months now, but when do you think is this going to start? Nobody is talking about any dates, starting to wonder if this is ever going to happen...

a reply to: anonentity

Had to look up the bail in and the is scary as #

Bail-outsoccur when outside investors, such as a government, rescue a borrower by injecting money to help make debt payments. For example, U.S. taxpayers provided capital to many major U.S. banks during the 2008 economic crisis in order to help them meet their debt payments and remain in business, as opposed to being liquidated to creditors. This helped save the companies from bankruptcy, with taxpayers assuming the risks associated with their inability to repay the loans.

According to The Economist, the magazine that coined the term "bail-in", abail-in occurs when the borrower's creditors are forced to bear some of the burden by having a portion of their debt written off. For example, bondholders in Cyprus banks and depositors with more than 100,000 euros in their accounts were forced to write-off a portion of their holdings. This approach eliminates some of the risk for taxpayers by forcing other creditors to share in the pain and suffering.

Link

a reply to: anonentity
a reply to: St Udio

Wonderful the two of you chimed in! You two are some of the members who have been giving us all input for quite a bit now on the subject of this impending correction, so I am glad that for the doubters out there, the BIS kind of vindicated you guy's assessments, and a handful of others as well.

Udio, I agree too that that the establishment financiers will manipulate the prices to maintain a controlled ascent. They have learned lessons from the big scare of '08-'09 and I fully believe they have implemented some tactics that came from that to maintain a structured momentum as opposed to the runaway freight train on prices.

anon, the issue I have with the derivatives unable to fulfill the demand of delivery is that I don't foresee a scenario that would warrant many people to want to take physical delivery. Many of the players in the metals ETF's are traders who will never have an interest in delivery to begin with. They just buy and short for quick gain. I believe It would take some kind of absolute paradigm altering event for that thought to even show up on most of the electronic traders' mind. Obviously they would never receive the product due to wait times for delivery and the fact that demanding delivery while apocalypse is careening head first into the world is probably not the wisest.

It would be a phenomenal chain of events for those of us who stay true to the physical possession aspect though. We shall see what the start of the work week will bring us in the morning. I just placed an order on Friday, but delivery will not happen until second week of July. Price is still locked in though. Lets pray those of us who read into these subjects are on the right path. Truth is no matter how definitive something appears, reality does not always play along, so we must remain vigilante.

a reply to: liveandlearn

Now that is scary.
My life's work, at the moment... All the damage I've done to my body, all the hard work and sacrifice, blood and sweat... About half of it is in storage, but the other half is in the bank. Just sold my first house.

Might be time to start making withdrawals and investing in hiding places.

a reply to: worldstarcountry


They will tell you that Gold and silver, are anachronisms. So why is JP Morgan, holding five and a half million ounces, why is Russia and China increasing their Gold and Silver holdings , why is India asking its citizens to put their gold in the Bank so they get some interest? Which they are not because they will loose it during a bail in. They do not want private citizens having any amount of this anachronism .The simple fact is that most people haven't got any... and the smallest amount will have to go up in value to such a now seemingly ridiculous level to offset the Fiat debt. Which means when they get revalued in the real world, as we see in Venezuela, two ounces of gold gets you a house and ounce of silver buys three months food. The simple fact is possessing modest amounts will , upset the current status quo. Of course they might just issue a confiscation order, but I doubt it as the big fish wont want that as they have been getting the physical since 2008.

a reply to: lordcomac
I stopped using Banks to hold my money three years ago. Just don't tell anyone where its kept and pretend you still use a bank.

Now is a good time to turn some of that cash into metal to take advantage of impending price increases coming soon. Just liquidate it back into cash when you feel comfortable with the price. You should have a bit more than the %0.5 most savings accounts offer after you complete your transactions. Those yields could go up soon as well though.

Did you visit the bullion dealers online I mentioned to you in your other thread?? Remember, better prices than APMEX.
Gainesville Coins
Modern Coin Mart (MCM)

a reply to: worldstarcountry


Silvers gone up eight percent since January, not too bad an interest rate , and you can always stroke it when you are bored.

That's funny up there.....he.....he

Glad to read this here at ats....ready, bout time