Central Bank Hanky Panky

Central banks are openly manipulating markets in areas they have no legitimate role. Do this long enough and they will cause massive disruptions, price dislocations and harm for the average person. Do they even care? You decide…

Do you know why I put two sets of quotation marks around the word “”markets?””

Because they are so manipulated that they bear no resemblance to your grandad’s markets. Markets are where prices are set between buyers and sellers. Manipulated “”markets”” are used by central banks to set a narrative.

Usually, that narrative is something inane like “We’re in control!” or “Gold is bad!” or “Inflation is coming down!”

The problem is that by forcing prices into unnatural places for too long the manipulators interfere with this thing we call reality. Out here in the real world, oil wells don’t get drilled if prices aren’t reflective of real-world risks and costs of capital. Copper mines don’t get opened. Farms get foreclosed upon (although, this isn’t necessarily a bad thing for the central banker’s friends who are eager, for some reason, to buy up these struggling operations).