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Are Central Banks Supporting Share Markets?

QUESTION: Hi Marty, Happy 4th July to you & your team. My question is: Have the Central Banks now created an asymmetric trade (free bet!) with respect to the stock market? It appears they cannot let any market fall. Sincerely, Alan ANSWER: I understand many people always look for some party to blame for a […]

The Central Banks are Trapped – the End of Economics as we have Known it

Draghi has come out and said that is inflation will not pick up, he will do even more Quantitative Easing. I warned that the central banks, particularly the ECB, are trapped. They simply cannot return to any normal economic model without blowing up the entire Eurozone. This is becoming extremely serious. The only option for […]

Central Banks Buying Equities

QUESTION: Central banks around the world are currently purchasing equities. If they continue to purchase equities, will we ever have a significant market downturn again? What happens when central banks acquire enough shares to control corporations? PE ANSWER: Yes. The central banks have been buying equities to try to diversify their balance sheets as they […]

BIS – The Central Bank of Central Banks

  QUESTION: Could you please tell us more about the bank of the national banks (BIS) located in Swiss? Many thanks for your information. I love to read your blog first thing in the morning!!! JS ANSWER: The Bank for International Settlements (BIS) was originally established to handle the reparation payments of Germany. It was […]

Modern Monetary Theory & Why Central Banks are lost in the Wilderness without a Map

QUESTION: Dear Martin, Would you like to enlighten me on your stance on the Modern Market Theory that is being touted by some in finance and politics please? VV ANSWER: The basis upon which MMT has emerged is actually logical for those who lack the understanding of how to conduct research. Since QE has lasted in […]

US$ Rallies as Central Banks Sell Dollars

QUESTION: I am a mega dollar bull – I totally get how it is the only game in town.  I’ve lived it too, having seen how the big banks work their balance sheets from the inside. However… occasionally people send me charts like the one below and get all excited.  They say we are de dollarizing […]

Is a U.S. Bank in the EU is Still Under ECB Rules? Why Do Central Banks Still Have Gold?

QUESTION: Dear Mr. Armstrong, I would first like to thank you for all the information you are making available publicly. I have two questions to pose, if you deem them relevant to the present state of affairs. 1) What is the difference for an EU citizen of having deposits with an US bank and with […]

Central Banks v Clearing

Delos, First Central Bank QUESTION: Dear Martin Wonder if you have any insights as to the history of the bank clearing process. Was the clearing process created mainly so banks could play games and earn interest with peoples’ money with the reasoning that it was to prevent money laundering? With technological advances today, one can accept […]

Why central banks cannot really Manage Anything

QUESTION: Marty you recently said that “the entire problem of lowering interest rates to ‘stimulate’ the economy demonstrates that central banks cannot really manage anything.” Is this statement really true? BG ANSWER: Absolutely. There is a basic presumption in all human activity that somehow we possess the power to do anything be it end Global […]

Central Banks Looking at Creating Their Own Cryptocurrencies

The IMF has recommended that all Central banks should issue their own cryptocurrencies. Indeed, they are looking at using Block Chain to keep track of taxes and to enforce negative interest rates with cryptocurrencies which would allow them to impose negative interest rates whenever necessary. With adopting cryptocurrencies that governments would control, we will come one step closer to losing all […]