Seeking Alpha

Central bankers are keeping it low-key for now, writes Saxo Bank's Steen Jakobsen, but they're...

Central bankers are keeping it low-key for now, writes Saxo Bank's Steen Jakobsen, but they're surely realizing they've fallen behind the curve. China is slowing precipitously, the rest of Asia is suffering from a cutoff in credit as EU banks pull back, and, of course, there's Europe. The central banks aren't going to sit on their hands forever. He's buying GLD, GDX, and HYG.
Comments (17)
  • Yep, that's why I'm hanging onto my barbaric relic. Furthermore, Ray Dalio's piece about inflating debt away as the least bad method of deliveraging is making the rounds, and probably influencing some central bankers.
    25 May 2012, 02:50 PM Reply Like
  • Yes I bought more yesterday--
    25 May 2012, 03:00 PM Reply Like
  • Not quite to the low I suspect, but I have calls and buy orders in place.

     

    As for what the strategy will be for the FED, no one knows, but QE may be out in favor of expanding the money supply to exceed the debt, that will be another 14 Trillion. The result will be startling to all. It gets fed in via the banks. Fleet night in Hong Kong. The Bubble will engulf the known world.

     

    MV=PQ. Just plug in your estimates and catch your breath.

     

    Why junk?? It will get left behind savagely.
    25 May 2012, 03:14 PM Reply Like
  • National debt can't be monetized. That's just another popular misconception. U.S. obligations are inflation linked as are pretty much all national obligations.
    25 May 2012, 08:56 PM Reply Like
  • Great comment above mine. People are too easily mislead. $15 trillion in debt can't just be wished away. There are other consequences associated with just printing money to take down the debt: inflation etc. Responsibility is a word lost on the world we live in today.
    27 May 2012, 06:48 PM Reply Like
  • HYG good trade $87-$91.
    25 May 2012, 03:25 PM Reply Like
  • Gold looks so cheap ... it must be the CB's manipulation. I am convinced that there have been large interventions. I was thinking that QE3 will be about $1 trillion of mostly mortgage backed securities announced in June or July. I am starting to change my mind in terms of what the FED is likely to announce. I think that nominal GDP targeting is more likely. The two are more or less the same but the difference is that if the FED announces nominal GDP targeting, they could simply say: We are not going to do anything, we are positive on the economy and only do something if there are global risks. Basically, a backdoor QE. This maybe the path of least resistance. Also, then they could print as much money as they want and not just some miserable trillion or so. I think Rickards (the guy who wrote ''Currency Wars'') talks about that. We are likely to see some sort of globally coordinated QE by all big CB's and the geniuses working there.
    25 May 2012, 03:55 PM Reply Like
  • I expect another coordinated swap line, but not until after the next couple weeks.
    25 May 2012, 07:40 PM Reply Like
  • The problem is, they don't inflate the debt away. The clowns just add more...
    25 May 2012, 09:15 PM Reply Like
  • The Fed won't be acting real soon, unless the markets really crash and not just a mere 5 or 10%. The politics will keep the Fed on hold unless it morphs into a real crisis as opposed to some market bulls crying and whining about their market losses.
    25 May 2012, 10:54 PM Reply Like
  • More Qe either alone or in cahoots with other countries still has the same effect on gold. They probably will backdoor it so they can continue to manipulate the price, which is what they have been doing to make out like there is no inflation from the inflating Qe that has been given to the bankers already. The American public doesn't even see it, heck most traders see it and ignore it claiming it to just be the way things are (dog eat dog world so to speak). I really dont like it, makes me sick. I want to be a proud American claiming she is all she has been made out to be, but now we have turned are eyes hoping it;s not true, and she will get better with the next elections. There is no hope for when there is nothing but dishonesty, manipulation, truth distorted so much its sickening , teaching our children its all ok. Time is not on our side any more, its getting close. Bottom line is banks and countries are buying at lower prices. So should you, but they will continue to get your money if you continue to throw it at the market. Buy metals
    26 May 2012, 06:14 AM Reply Like
  • CENTRAL BANKS NOT COMING TO STOCK MARKETS' RESCUE! QE IS OVER UNTIL AFTER NOVEMBER ELECTIONS. FASTEN SEAT BELTS NOW!
    26 May 2012, 09:10 AM Reply Like
  • Banner17 ...

     

    I believe "backdoor/stealth" QE already underway. EURO set to surge because currency COT report ... commercial traders more bullish on EURO than they have been in years. The implication ... more stimulus of some form in the pipeline. Gold equities are acting well and under accumulation for last two (2) weeks. Inflows into GDX ETF occuring on a regular basis.

     

    If market doesn't get a real floor, Obama is done as president. Based on Obama personality profile by Jerome Corsi in his book Obama Nation, all evidence from previous decisions suggests some sort of action forthcoming to make things look good for the election.
    26 May 2012, 07:44 PM Reply Like
  • A bigger qe is coming, unless Obama wants to retire now. He is sure to lose with out QE!
    26 May 2012, 08:34 PM Reply Like
  • Economic "theory" kills those that chose to innovate.

     

    Greenspan “erroneously” admitted he was wrong about the nature of self-interest, his was an error in “theory” toward monetary policy (the manipulation of rates). Steve Jobs excelled, regardless of the “vaulted” theorists and their school boys ways.

     

    The fool’s theory (and implementation) of deflating our way out of debt will eventually kill the consumer’s purchasing power, thus killing the innovator’s success.

     

    Kill the theories, save the essence.
    27 May 2012, 02:37 AM Reply Like
  • Undoubtedly central banks will try monetizing. The US probably won't until the election is cleared. So those thinking treasuries are safe are right for only about 6 months. Then expect to take a bath.
    27 May 2012, 01:46 PM Reply Like
  • can anyone tell me what would be worse than obamo getting re-elected? this country is doomed if he is re-elected--but what could you expect from a south side chicago street organizer? and he's learned nothing in 4 years--I think he's out to deliberately do this country in.
    AND NO HE'S NOT A NICE BOY EITHER HE'S A BUM!
    28 May 2012, 08:52 AM Reply Like
DJIA (DIA) S&P 500 (SPY)