In spite of the general opinion that the Global Financial Crisis (GFC) ended years ago, it is, in fact, ongoing and so are the lies.
History is obvious – no price fixing cartel has made it through once a member broke ranks. The SNB have not just lost control, it has broken ranks with the central banking “cartel,” which runs a much larger fix – near-zero risk premiums against the toxic background of epic debts and subpar growth.
Since 2011, trust in central banks has propelled stocks higher and gold prices lower. The SNB’s confidence-shaking wonder has marked, I believe, the end of the second pause of the GFC, during which central banks have kept a united front required to sustain stability and fuel risk assets through price fixing, money printing and a promise to have “investors’ back.”
All rigged games depend on confidence but what other central bankers’ lies are about to be revealed? That QE had ended? That the Fed will raise interest rates? That an tidy exit is possible? That we actually can consume more than we produce in perpetuity? Really?!
This brings us to gold, which has practically no long-term correlation to stocks and a near-perfect inverse correlation to confidence. Before the next “surprise” wreaks even more chaos, investors would benefit from reassessing their concepts about diversification and safe haven allocations.