Central Banks

Total US Debt Is Back To Its Great Depression Peak

The following chart from Citi shows the last century of US non-financial leverage in context. As of this moment, consolidated US non-fin debt/GDP is about 275%, or roughly where it was US when the great depression stuck. For those curious about the "tipping point" threshold levels, keep an eye on 300% - that's when the system collapsed last time leading to a devastated economy.

Satyajit Das Is "Astonished Investors Haven't Raised Pitchforks At Policy-Makers"

"They’re going to have to stop people from taking out cash... I would argue that it’s not going to be able to be dealt with, and it creates enormous social and political pressures… What we’re going to see is a period of financial repression, which is very, very dangerous... I honestly don’t know how it’s going to end. In the 1920s and 1930 when similar pressures built up, it didn’t actually have a very good ending."

As Carl Icahn Was Selling Apple, This Central Bank Was Furiously Buying

As Icahn was selling, or just before as we don't know precisely when Icahn, who has since indicated he has turned massively bearish on the overall market, one entity was buying every AAPL share it could find. In fact, according to its latest 13F, everyone's favorite central bank that openly admits it is also a wholesale buyer of stocks (with a portfolio of some $100 billion), the Swiss National Bank reveals that in Q1 it bought another 4.1 million in AAPL shares, bringing its total to a record 14.5 milion shares.

The Destabilizing Consequences Of Globalization

This globalization of price - for goods, services, credit and currencies - continually creates imbalances that fuel a perpetual instability that gradually impoverishes every sector other than global capital, which being mobile, can exploit the imbalances for its own profit. Who benefits over the longer term from the permanent instability and boom-and-bust cycles of this arrangement? Only those close to the credit spigots of central banks.

"We Are Unsure Whether To Wear A Helmet Or A Diaper" - Merger Arb Funds Crushed

While company officers - who have given up on major stock upside as a result of busted M&A - and investment bankers are lamenting the bursting of the M&A bubble, some of the biggest losers are on the buyside, where merger arbs have seen billions in paper profits turn into billions in paper losses in moments upon the announcement of deal termination. Indeed, broken deals have whipsawed hedge funds that focus on merger arbitrage. As the NYT poetically puts it, according to one "arb" the current mood of the industry: "Every day is like showing up unsure of whether to wear a helmet or a diaper."

What Will The Global Economy Look Like After The "Great Reset"?

The globalist reset needs a trigger, a crisis which admittedly we do not have the ability to avoid. But, the reset also depends on the right people in place to rebuild the system after the crisis unfolds. Here is where the future can be determined. Whoever is left standing after the opening salvo will have a choice: to hide and hope for the best, or to fight for the position to choose who builds tomorrow. Will it be the psychotic globalist cabal, or will it be free people of conscience? It may not seem like it now, but the end result is up to us.

Central Banks And The Rise Of Extremism

Perhaps the world will have to wait it out to finally be graced with leaders who are willing to stand by their convictions and make hard, maybe even unpopular, choices. Such leaders might have to risk sacrificing everything political to be crowned the next true champions of conviction, giving us all a shot at a once again storied fate. Where does that leave us? Apparently angry. Very, very angry.

Peter Boockvar Warns "If Central Bankers Get Their Way, The Global Bond Market Will Blow Up"

"My fear is that central banks are now taking this too far through negative interest rates in particular and that they’re going to literally destroy their own banking systems. If they’re actually successful in generating higher inflation, then they’re going to destroy their own bond markets... our government officials, and I will include the Federal Reserve in that, have failed the American people."

Why One Trader Thinks "There’s A Growing Belief That This Can’t End Peacefully"

"There’s a growing belief that this can’t end peacefully. And why more and more central banks are screaming about the negative externalities exported by those practicing the extremes of extraordinary monetary policy. We’ve learned that we exist in a global economy. What hasn’t been accepted, because the consequences may prove dire, is that we also are moving toward global monetary policy."

Yuuuge 10Y Auction: Whopping Demand For US Paper, Record Foreign Central Bank Demand

If yesterday's 3Y auction was impressive, and stopped well through the When Issued, today's 10Y was an absolute blockbuster, stopping a whopping 2 bps through the 1.73% When Issued - the biggest stop through since September 2013 - on a yield of 1.71%, the lowest yield since December 2012. The internals were just as astounding, with a whopping 73.5% Indirect take down, the highest on record, and with Directs inline with recent historical averages of 11.8%, this meant that the Dealers were left holding the second lowest on record as foreign central banks scrambled to bid up as much of the paper as they could.

What Manipulation Does To The Free Market

Had the federal government held a constant measuring stick rather than "tinkering, engineering, distorting" key government calculations such as the size of the economy (GDP), the rate of inflation, level of unemployment, or size of federal deficits and federal debt...the reality we face would be plain and honest choices needed.  Instead, the responsibility of those working for "the people" has been breached via falsifying and distorting each of these (over decades).  This consistently improves the output and does not allow a true means to quantify and qualify the nations health.  Simply put, the government has continually tinkered, tampered, and distorted the accounting so as to mislead or create a falsely positive appearance.