Off the Cuff: Japanese Central Bank Throws Granny Under The Bus

This one was so good, we're making it public!  

In this week's Off the Cuff podcast, Chris and Mish Shedlock discuss:

  • The expected but shocking Japanese central bank decision
  • Increasing central bank desperation
  • How central banks transfer wealth from the masses to the few
  • The impact on gold and silver prices

Summary:  In this podcast Chris and Mish let their guard down and say a few choice words about the actions of central banks that obviously and seriously harm average people all in the service of assuring that banks and governments can continue to operate as they have in the past.

This is a companion discussion topic for the original entry at

Thanks for a great podcast during this very exciting week, both in terms of central bank policy and the falling PM complex.
Chris, the power of your statement of wealth transfer (as opposed to wealth destruction) when the credit cycle goes out of control and debt is monetized didn't really hit me until listening to this.  Now it seems likely that you're preparing for the day when policymakers and media claim that "the wealth just disappeared," just as they claimed in 2008/2009 that no one could have seen the financial crisis coming.  The alternative explanation, that the wealth did not disappear, but was transferred, makes it harder for them to shift blame.

Mish's claim that a loose monetary policy is the main reason for the lack of income gains for the middle class and poor only seems partly right.  At the very least, globalization probably has a whole lot to do with this as well.



Interesting dialogue. As mentioned in the the discussion the whole process this week was tightly orchestrated. On King World News Andrew Maguire noted
First thing this morning, after the Bank of Japan decision, things got a bit roiled.  But what I did see was a fully-timed algorithm kick off at exactly 7 AM U.K. time.  There is only one seller that can come up with 50 tons of paper gold in a matter of 3 or 4 minutes and that is the Bank for International Settlements…

Should we really be surprised at this latest turn? We know that in theory the system will defend itself until it can't. But it is still a bit jaw dropping to see the lies and the blatant manipulation unfolding in real time.

Ah well… back outside to check on progress of the chicks hatching under my broody hen - now that's something really important!



Is there a plausible reason that the BOJ surge in money printing might induce big money to sell gold?  Is there a meaningful alternative to the suspicion that it was orchestrated?
Warning:  If you say "orchestrated" I will insist that you wear a tin-foil hat at next year's Rowe conference.

Japan: QE As Morphine For A Terminal Patient


I think it's likely that there will either be a war or a major terrorist attack at the same time the market crashes and a big reset is proposed, T2H.  Just as people tried to blame the recent market slide on ebola, the big one will be blamed on some black swan.  TPTB will claim that "everything has changed" just as they did 13 years ago, justifying all sorts of new laws and limits on civil liberties.

that there may be a large terrorist attack to kick the NWO into overdrive. We already experienced the "New Pearl Harbour" so how about the new 9/11. Small nuclear device in a suitcase planted by or orchestrated (wearing tin foil hat as I type) by the alphabet crew , I mean terrorists that hate our freedoms and only if they are given the bus fare to get here . Either way we are at war, just not with who they tell us we are at war with.
We are all, "not violent extremists" now. Prepare to be dealt with accordingly! 

Hi sand puppy. The reason I said orchestrated is that the Bank of International Settlements is often called the central bankers central bank. As Chris and Mish stated central banks talk and plan together so a co-ordinated approach seems entirely believable to me.But with regard to the 'big money' bullion banks, hedge funds etc I suspect their behaviour is more opportunistic on this occasion - taking advantage of the conditions precipitated by the central banks.
Will I still have to wear that damned tin-foil hat?

Bankers, i trust you've listened to Immortal Technique as well? He put me on to this whole charade about 8 years ago.If not, it's worth listening to his song 'Rich Man's World'
Warning, contains explicit language
"You think Presidents are the face of a nation? I put them all where they are, end of the conversation!"

When I was listening to the Govenor of the BOC this week, I concluded that these central bankers know exactly that they are performing a wealth transfer. I've called this whole manoeuvre Passive-Aggressive-Population-Control, in that we plebs will have to battle it out amongst ourselves. It seems inevitable that we will end up with some version of fascism coming down the pipe: whether it comes from an under-privileged Napoleon or Hitler, or if comes top-down is to be seen, but the numbers of people involved at this point looking for the necessary resources for survival… it's just not a pretty picture. If we had been planning for these fundamentals 40+ years ago, we may have been able to avoid some mayhem… but I just don't see this as a possibility anymore. Hence: the appearance of ignorance by the banking elite.

The war is over and we've already lost, the question now is what is the mopping up operation going to look like.  No need to march anyone in to a death camp to be gassed, or in to the dessert to be shot, just shut off the water supply.  I apologize for my cynicism, but "Fight the Power" rap videos look to me like the last, the least and the lost being programmed to start a race/class war they have little chance of surviving, much less winning.
My broody hen hatched a clutch of twelve last week, who can't smile at a hen tending her chicks?  


John G




Chris, Mish, excellent as usual.  As a side note, it is refreshing to hear a thorough discussion of a complicated topic, like what we used to have in the United States in the form of public debates (Lincoln-Douglas, anyone), what a refreshing change for a curious mind from the 10 second sound bite on TV and the little screens around us.
Coupled with your John Rubino Off the Cuff, I think you and others- HughK- are missing some key dynamics, here, and this partially explains why things are extending for such a long runway.

You need to think of "wealth" as a complex differential equation, not an arithmetic sum as you and your guests tend to do or at least imply when you talk about wealth transfer as if it were a 'zero sum game'.

Lots of analogies hear in the real world.  I use one as an example.  

The temperature in your living room- it may seem static to you but it is actually a function of several things all operating simultaneously.  Here are some of the inputs that result in "temperature".  The rate of new heat blowing in from your HVAC (a differential of heat input wrt to time), the rate of heat transfer from your walls to the outside (also a differential of heat loss wrt to time, dependent on the heat difference - colder outside = faster heat transfer).  The temperature outside, which is almost always changing- dropping, warming, again a differential in temperature wrt to time.   The wind, which creates more heat transfer the fast it blows.  The sun, or lack thereof, as there is differential heating rates (again a differential wrt time) on home surfaces depending on time of day and amount of sun.

I use this as an illustration to show how many things , that are actually differential functions wrt to time, and other conditionals like sunlight, can effect a seemingly simple variable- temperature in your living room.

Wealth- you seem to treat it like it is a static thing that is essentially a pile of coins in the middle of the room that the PTB are moving around and stealing from savers.  While agree there is a major element of this, there are other inputs into the wealth equation.

Wealth is constantly being created.  I mean real wealth.  Ore and timber are using energy and technology inputs to make gold necklaces (valuable and beautiful) and cabinets (valuable and beautiful).

Wealth is constantly being destroyed.  House fires, bombing campaigns, ships lost at sea carrying necklaces and cabinets, these events destroy wealth.  Gone.  Bye Bye.

I agree with about the wealth transfer paradigm.  It is wrong and in essence stealing by people who have no right to this wealth and did not earn it.  It is distortionary to the greater economic society in that it moves capital to accounts that don't produce anything.  These include the massive prop trading desks and massive government programs.

Just remember there are several other inputs.  The fact that we have innovated greatly such that we convert raw materials, using energy (as you rightly point out) to real wealth, and not just any wealth.  Cars that are lighter, stronger, last longer, are more reliable.  Carbon fiber arrows and bows that are cheaper and better.  Houses that have roofs that shed rain longer and don't require as much upkeep.

You need to remember that these are all part of the total, large differential equations that include inputs that adds wealth to the common man's pocket.   Not quite out of thin air, but out of smaller inputs as technology improves.  This wealth creation counterbalances the wealth theft.   And makes things go on longer.  The question is- how much can you keep?  How much can you prevent from being confiscated and stolen by the government?

Greece tax receipts are very low because doctors claim 13,000 euros on their tax returns.  I think most people know quite a bit about what real wealth is.  Not perfectly.  But the higher the government turns up the collection agencies, the tighter people turn up the avoidance strategies.

After all, as long as one is warm, fed and has a nice flat panel TV, one doesn't care if they are working with two incomes instead of one, sacrificing their time with their children and church, and unable to retire at 65, does one?


Not only did they throw granny under the bus but they have lowered the threshold on inheritance tax to boot. Now it is 500,000$. That is basically low taxed for inheritance, but they are now changing to the first 300,000$ to be low tax after that it’s 50%! So they have a scheme to free up grannies mattress money by allowing 10,000$ gift per year now while she’s still alive to children and grandchildren for education. Meaning they are forcibly getting elders to gift money to the young so that it may come into circulation sooner, it is criminal.