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Jan 15, 2015

GATA | THE GATA DISPATCH - January 15, 2015: 4 Articles: Swiss National Bank's reversal heralds financial meltdown, Celente tells KWN | Ambrose Evans-Pritchard: World deflationary forces have swept away Swiss defenses | The end of central bank power? Or the start of more 'financial repression'? | Bron Suchecki: Straining at gold gnats while swallowing central bank camels

Swiss National Bank's reversal heralds financial meltdown, Celente tells KWN

Submitted by cpowell on Thursday, January 15, 2015. 
 ET Thursday, January 15, 2015

The world is sinking into a depression and the Swiss National Bank's reversal of monetary policy today will be only the start of a financial meltdown that will explode derivatives held by investment banks, trends forecaster Gerald Celente tells King World News tonight. An excerpt from his interview is posted at the KWN blog here:
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Ambrose Evans-Pritchard: World deflationary forces have swept away Swiss defenses

Submitted by cpowell on  Thursday, January 15, 2015. 
By Ambrose Evans-Pritchard
The Telegraph, London
Thursday, January 15, 2015
The Swiss National Bank has lost control. It is the latest in a list of venerable central banks to be overwhelmed by deflationary forces and global economic disorder.
The country is already in deflation. The Swiss franc ended Thursday 13 percent higher after the SNB abandoned its three-year efforts to defend a currency floor of 1.20 to the euro. "We have a free exchange rate once again," said the SNB's president, Thomas Jordan.
Indeed, but nobody is fooled by the SNB's attempt to spin this as benign. "This is a huge hit to their credibility," said Deutsche Bank.
The official statement claimed that the exchange floor is no longer needed and that "overvaluation has decreased as a whole since the introduction of the minimum exchange rate."
This is eyewash.
"They have had to throw in the towel. They couldn't hold the line anymore," said David Owen, from Jefferies Fixed Income. "This is going to cause extreme pain for parts of the Swiss economy but the SNB are trapped." ...
... For the remainder of the report:
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The end of central bank power? Or the start of more 'financial repression'?

Submitted by cpowell on Thursday, January 15, 2015. 
Thursday, January 15, 2015

Former Wall Street trader and market commentator Bruce Krasting, in analysis publicized by Zero Hedge, argues that the Swiss National Bank's repudiation today of its pledge to peg the Swiss franc to the euro forever will mark the beginning of the end of central bank power.
Krasting writes: "The Federal Reserve, Bank of Japan, European Central Bank, Swiss National Bank, and other central banks have repeatedly made the same promises over the past half decade: 'Don't worry! We are here. We will do anything it takes to achieve the stability we desire. We are stronger than the markets. We can overwhelm all forces. We will never let go. Just trust us.' ... Anyone who continues to believes in the all-powerful central bank after today is a fool."
Well, maybe.
But arrogant as the Swiss National Bank has been and as humbled as it is now amid the devastation it has wrought, it is actually one of the smaller central banks and its influence has been vastly inflated by an outdated reputation for probity.
And while central bank power suddenly does looks shaky tonight, central banks are not alone in their never-ending war against free markets. No, central banks may be allied with the rest of their governments -- indeed, to a great extent central banks control their governments by financing them -- and governments may claim even greater power than central banks do.
Because of their power of infinite money creation, central banks can not only manipulate markets and thereby arbitrarily set the value of all capital, labor, goods, and services in the world. As lately has seemed to be their objective, central banks also can prevent markets from happening at all.
But central banks can't prosecute and imprison people and confiscate their property for perpetrating markets. Only the remainder of government can do that -- and some governments seem to consider themselves empowered to do that already even in nominally democratic countries. For example:
That's why any slippage in central bank power, like today's humiliation of the Swiss National Bank, is less likely to result in the liberation of markets than in an increase in what even some central bankers themselves call "financial repression":
That is, when central banks fail at market manipulation, governments may resort to wage and price controls, capital controls, rationing, and even confiscation of property and limits on travel.
But if things come to that, at least the pretense of free markets that Western mainstream financial news organizations play along with will be exploded and even people who couldn't distinguish a derivative from an asparagus will know where they stand, know that something has happened to their democracy. Even the Financial Times might feel compelled to report it.
Krasting's commentary is headlined "End of Central Bank Power -- Swiss National Bank Folds" and it's posted at his Internet site, BruceKrasting.com, here:
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Bron Suchecki: Straining at gold gnats while swallowing central bank camels

Submitted by cpowell on  Thursday, January 15, 2015.
 Thursday, January 15, 2014
The Perth Mint's Bron Suchecki today replies to your secretary/treasurer's criticism yesterday of his suggestion that production of gold by marginal mines is keeping the gold price down. (See http://www.gata.org/node/14956.) Your secretary/treasurer argued that production by marginal mines is an awfully insignificant factor in gold pricing compared to the production of imaginary gold -- paper gold or gold credits -- by central banks, an issue that respectable market analysts refuse to address.
Suchecki writes today that he's well aware of the influence of central banks in the gold market and has written about it quite a bit over the years. He also writes that he doubts that he would be considered respectable by the mainstream financial news media, insofar as his employer is in the business of selling gold and benefits from a higher gold price.
Maybe, but to GATA Suchecki long has seemed respectable enough -- that is, intelligent, incisive, and informed -- always to be required reading. In any case as long as central banks create so much more "supply" than marginal mines do, his observation about those mines will strike us as trivial and a distraction, which was the point of the criticism.
And we'll bet that nobody at a financial conference or in a financial news publication ever disparaged him as a mere "conspiracy theorist" for pointing out that central banks often meet and communicate secretly to plan and undertake secret interventions in the gold market and other markets, conduct that nevertheless matches exactly the definition of "conspiracy":
Suchecki's commentary is headlined "Straining at Gold Gnats While Swallowing Central Bank Camels" and it's posted at his Internet site, Gold Chat, here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Times Video - January 15, 2015:The Jihadist in Our Family.


The New York TimesNYTIMES.COM/VIDEO »
The Times Video
Thursday, January 15, 2015
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International

Why would Mohd Lotfi Ariffin leave his wife and children behind in Malaysia in search of martyrdom in Syria?
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NYT Afternoon Update January 15, 2015: Top News: Starting Friday, U.S. Will Ease Restrictions on Travel to Cuba.

The New York Times

Afternoon Update

Thursday, January 15, 2015


Top News
Cárdenas, Cuba, home to Elián González, is a growing city of contrasts and contradictions, where some still celebrate Che Guevara.
Starting Friday, U.S. Will Ease Restrictions on Travel to Cuba

By PETER BAKER and RANDAL C. ARCHIBOLD

Under the new regulations, Americans will be allowed to travel to Cuba for any of a dozen specific reasons without first obtaining a special license from the government.
Belgian police officers blocked a street in the eastern city of Verviers after a raid on Thursday left two people dead and a third gravely injured.
At Least 2 Killed in Antiterror Raid by the Belgian Police

By JAMES KANTER

The raid in eastern Belgium also left a third person gravely injured, as the authorities stepped up their efforts against extremists.
Paris Attacks Drive New Wedge Between Turkey and Israel

By TIM ARANGO

The Charlie Hebdo attack sparked a divisive new chapter in the war of words between allies turned rivals.
John Dehlin was told Thursday that he is facing excommunication from the Mormon Church.
John Dehlin, Mormon Critic, Facing Excommunication

By LAURIE GOODSTEIN

The Mormon Church has moved against the prominent Utah-based founder of an online forum for doubting Mormons, charging him with apostasy.
Satellite images taken five days apart show large-scale destruction in Doro Gowon, Nigeria, the home of a now-destroyed military base.
Groups Document Boko Haram's Swath of Destruction in Nigeria

By ADAM NOSSITER

The militants stormed through northern Nigerian towns in recent days, according to an analysis of satellite images by human rights groups.
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'Birdman' and 'Grand Budapest' Lead Oscar Nominations

By MICHAEL CIEPLY and BROOKS BARNES

"Birdman" and "Grand Budapest Hotel" each received nine nominations for the 87th Academy Awards, which will take place Feb. 22. "Boyhood" also was confirmed as a best picture favorite.

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At Plant Love House in Elmhurst, Queens, a mother and her daughters offer Thai street food with house rules that will have you grinning.
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A Swiss franc coin beneath a euro note. The value of the franc soared on Thursday.
Surprise Move by Swiss Central Bank Underscores Global Uncertainty

By DAVID JOLLY and NEIL IRWIN

As the euro's value continues to decline, the bank said that it would stop trying to hold down the value of its national currency.
Thomas Jordan, the chairman of the Swiss National Bank, at a news conference in Zurich on Thursday.

THE UPSHOT

Economic Lessons From Switzerland's One-Day, 18 Percent Currency Rise

By NEIL IRWIN

The Swiss franc's abrupt movement shows how the monetary activism of central banks, in this case the E.C.B., can have unintended consequences.
. Swiss Franc's Value Soars as Bank Shifts Course
A Target Canada store in Guelph, Ontario, on opening day in March 2013.
Target to Close All Stores in Canada, Conceding a Failed Expansion

By IAN AUSTEN and HIROKO TABUCHI

Target, which has made major management changes in the last year, is closing more than 100 Canadian stores less than two years after they opened.

The Washington Post Wonk P.M. Edition January 15, 2015: Why Switzerland’s currency is going historically crazy

The Washington Post
WonkPM
The latest from Wonkblog  •  Thu., Jan. 15, 2015

Why Switzerland’s currency is going historically crazy
This is how a currency peg ends. This is how a currency peg ends. Well, yes, with a bang, actually. The Swiss National Bank (SNB) shocked markets on Thursday by announcing that it would no longer hold the value of the Swiss franc down at 1.2 per euro, and would lower interest rates from -0.5 to -0.75 …  Read full article »

How Target’s epic failure in Canada could spell future trouble for the retailer
It was less than two years ago that Target opened its first store in Canada, marking the big-box retailer's first foray outside the United States.  There were plenty of reasons to expect the expansion to be profitable:  Wal-Mart had successfully pushed into Canada years earlier and Target followed its rivals' playbook, buying an established big-box chain and renaming the stores.  The Target brand was already …  Read full article »
Another sign that married people are better off: They’re having more babies
U.S. birth rates fell to record lows in 2013, but married women and older women are starting to have more babies, new federal data shows. The number of births has been dropping since 2007, right around when the recession began, but they've dropped at a slower pace since 2010, according to the National Center for Health …  Read full article »
This is what the new U.S.-Cuba travel rules mean for Americans hoping to visit Cuba
President Obama's administration said this morning that the new set of U.S.-Cuba travel regulations, first announced last month as part of a return to normal diplomatic relations with the island nation, will take effect on Friday. As part of those changes, it will be easier for Americans to travel to Cuba than is has been for …  Read full article »
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More than a third of American workers don’t get sick leave, and they’re making the rest of us ill
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The Washington Post Pulse - January 15, 2015: Republicans of the 114th Congress, same as the 113th -- so far.

The Washington Post
Post Pulse
What's trending on the Web now  •  Thu., Jan. 15, 2015
View in your Web browser
To see Post Pulse in real-time, go directly to Post Pulse. Below are articles trending as of 6:30 PM.
In MLS draft, D.C. United turns to Bay Area and College Park
Miguel Aguilar was an attacker at the University of San Francisco, while Dan Metzger was a defensive midfielder at Maryland.  Read full article »


The Washington Post
Post Pulse
What's trending on the Web now  •  Thu., Jan. 15, 2015
View in your Web browser
To see Post Pulse in real-time, go directly to Post Pulse. Below are articles trending as of 6:30 PM.
In MLS draft, D.C. United turns to Bay Area and College Park
Miguel Aguilar was an attacker at the University of San Francisco, while Dan Metzger was a defensive midfielder at Maryland.  Read full article »

Republicans of the 114th Congress, same as the 113th - so far
The shrill minority of the GOP majority was supposed to be diluted by a wave of more Republicans with a reasonable disposition. And then yesterday happened.  Read full article »
The FCC will vote next month on whether to help cities build their own Internet
The news comes a day after Obama's big speech on municipal broadband.  Read full article »
More than a third of American workers don't get sick leave, and they're making the rest of us ill
Managers are more than twice as likely as service workers to get paid sick leave.  Read full article »
Christopher Lee Cornell: The man who allegedly plotted to attack U.S. Capitol 'fulfilling the directives of violent jihadists'
He has been charged with purchasing and possessing firearms and attempting to kill U.S. government officers and employees.  Read full article »
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They haven't yet; but here's where to start.  Read full article »
Obama tells agencies to advance sick leave for feds with new children
Obama provides up to six weeks leave for federal employees with a new child and urges Congress to provide an additional six weeks.  Read full article »
7 countries where Americans can study at universities, in English, for free (or almost free)
Finland will finance your free education, but not your coffee break.  Read full article »
Bitcoin revealed: a Ponzi scheme for redistributing wealth from one libertarian to another
Bitcoin has fallen 36 percent in two days, as it gets hit by its version of the 2008 crisis.  Read full article »
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Name That Data, city streets edition.  Read full article »