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The ECB - EUR22 Trillion Is Missing

Tyler Durden's picture


Via Mark J. Grant, author of Out of the Box,

The ECB: The Missing Assets/Liabilities

“To treat your facts with imagination is one thing, but to imagine your facts is another.”
                        -John Burroughs

Yesterday I published the assets/liabilities of the European Central Bank as provided by them. I provided some analysis that I thought was relevant as I also asked all of you to look at the numbers yourself. To be quite open; I was stunned by the data they provided and shocked by the implications. I had not seen the data in any other source or commented about by anyone and the subject, while admittedly complex, and perhaps made more complex by design, is a huge wake-up call for anyone investing in Europe.

The ECB lists, as of the end of the 1st quarter of 2012, 16.304 trillion Euros ($ 21.032 trillion) in assets and 17.334 trillion Euros ($22.631 trillion) in liabilities. It is right there in black and white as I showed in the ECB provided data that I presented yesterday. However when you get to their consolidated balance sheet you find the numbers they bandy about in public to be a ledger of 3.240 trillion Euros ($4.00 trillion) and you catch your breath and pause. Utilizing normal American accounting practices this variance would be impossible and yet here it is; staring us all right in the face.

“Europe has put a ‘stop payment’ on our reality check!”
                       -The Wizard

I can report that I did hear from a number of large institutions yesterday that also looked at the numbers themselves and were stunned. Conversations were held, questions were asked and I think an accurate summation of the conversations was that everyone was in some state or another of astonishment. The numbers were not my numbers after all and while many good issues were raised in terms of how to properly analyze the data that was presented there was a clear sense that we were being duped by the European Central Bank and played for suckers.

“Reality is the leading cause of stress amongst those in touch with it.”

                     -Jane Wagner

Forget that the liabilities are greater than the assets and forget that that both have increased rather appreciably in the last several years and just concentrate on the size of the numbers presented and then ask the central questions; who is responsible for these assets and liabilities and where are they counted? We know that they are not counted at the ECB as they are not a part of their consolidated balance sheet. You may ask how this is possible and I re-print, once again, the applicable note from the ECB:

Recognition of assets and liabilities

An asset or liability is only recognized in the Balance Sheet when it is probable that any associated future economic benefit will flow to or from the ECB, substantially all of the associated risks and rewards have been transferred to the ECB, and the cost or value of the asset or the amount of the obligation can be measured reliably.”

So there is the rationale, like it or not, but then where are these assets/liabilities counted? We are talking about $21.032 trillion in assets here and $22.631 trillion in liabilities which are larger numbers that all of the GDP of Europe. We can surmise that the ECB does not count these loans, securitizations and collateral as they belong to a given nation or a bank guaranteed by the nation or the securitization is guaranteed by some country but the rub is the country doesn’t count them either. When a European nation reports out its debt to GDP ratio I knew that they did not count contingent liabilities and I knew that government backed bank bonds were not included and I knew that regional debt guaranteed by the government was not included but this, and the sheer size of it, had lain underneath everyone’s radar.

Think of it; twenty-two trillion dollars worth of assets and liabilities and accounted for nowhere. No need to worry anymore about Target2; a mere tuppence at one trillion dollars, a decimal point. Just exactly what these assets and liabilities might be is anyone’s guess. Just which nations generated them is also anyone’s guess as no data or explanation is provided. Just what any country’s real debt to GDP ratio might be if these assets/liabilities were included in the equation is also anyone’s guess but I think it is safe to assume that the numbers would be off the charts; far off the charts.

“Illusions commend themselves to us because they save us pain and allow us to enjoy pleasure instead. We must therefore accept it without complaint when they sometimes collide with a bit of reality against which they are dashed to pieces.”
                        -Sigmund Freud

You know, these are not blue fairies or gnomes or elves that have gone missing. These are twenty-two trillion dollars ($22 trillion) of loans and securitizations and mortgages that are found and accountable for by no one. These are real assets and real liabilities that have been turned into cash by the ECB and it causes me to wonder just how accurate the Money Supply numbers are for Europe with this amount of cash being pumped into the system. I also wonder what anyone’s real balance sheet looks like and I wonder what kinds of losses are being incurred and by whom. To be quite forthright, and in my opinion, this seems to me not just the rigging of the game or the gaming of the system but something far past that; something out beyond the realm of the credible and of real world experiences.

This is what we are investing in when we buy European bonds? This is where we are putting our client’s money? I don’t know; they may have gone mad but I have not.

Have you?

“An error does not become truth by reason of multiplied propagation, nor does truth become error because nobody sees it.”
                    -Mahatma Gandhi


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Tue, 10/02/2012 - 09:04 | 2847943 GetZeeGold
GetZeeGold's picture



That's all? That's not so bad.

Tue, 10/02/2012 - 09:18 | 2847990 CPL
CPL's picture

It's nothing but a huge deflationary flag, that's all.


22 trillion disappearing like that.  THey should check the Aussies couch.   It paid out 335B yesterday.

Tue, 10/02/2012 - 09:18 | 2847994 GetZeeGold
GetZeeGold's picture



Do you want the last Big Mac......or the 22 trillion?

Tue, 10/02/2012 - 09:25 | 2848021 Stackers
Stackers's picture

Aaaand its .... was never here ?

Tue, 10/02/2012 - 09:32 | 2848041 Manthong
Manthong's picture

What's the big deal?
It’s not like your talking real money.

Tue, 10/02/2012 - 09:51 | 2848117 Short Memories
Short Memories's picture

would you like that in 2 x 10 trillion EU notes and change or all in change?


Tue, 10/02/2012 - 09:57 | 2848144 CPL
CPL's picture

I think people will be asking for it in silver or gold now.  Dracma's, Lira, peso's...anyone actually trust these people to manage a cat fight?

Tue, 10/02/2012 - 10:35 | 2848254 hedgeless_horseman
hedgeless_horseman's picture



"We can surmise that the ECB does not count these loans, securitizations and collateral as they belong to a given nation or a bank guaranteed by the nation or the securitization is guaranteed by some country but the rub is the country doesn’t count them either."



"No bars, no burglar alarms. They should be prosecuted for incitement."


-Seldon Mowbray

Tue, 10/02/2012 - 09:58 | 2848149 dbomb12
dbomb12's picture

Maybe they should ask Donald Rumsfeld

Rumsfeld admitted to $2.3 trillion missing on September 10, 2001 (the day before 9/11)



Tue, 10/02/2012 - 13:21 | 2848906 Uber Vandal
Uber Vandal's picture

I was thinking that myself.

If we had 911 to get our minds off of the missing $2.3 trillion, I shudder to think what is in store for the next distraction....

Tue, 10/02/2012 - 09:29 | 2848031 CPL
CPL's picture


Banana is my answer.

Tue, 10/02/2012 - 09:20 | 2848002 fonzannoon
fonzannoon's picture

Dow futures have dropped 6 points on this incredible news.

Tue, 10/02/2012 - 09:30 | 2848037 CPL
CPL's picture

Yup....1.5X the national debt of the US disappears and it's not part of the fundementals of the market.


Fiat Currency doesn't matter for nothing if they don't deal with this.

Tue, 10/02/2012 - 09:32 | 2848045 Sudden Debt
Sudden Debt's picture


It's right here below:

>>> € <<<

voila! All legal and digital as you ordered it!

Now what was that question about the FED's assets? How much is all I need to know!

Tue, 10/02/2012 - 09:41 | 2848080 CPL
CPL's picture

Thanks Sudden Debt,

Someone quickly forward this to the ECB, let them know we found it.


Good job Junior Financial Detectives, now if you spin your decoder ring to blue, the secret message from our sponsor should fill in the gaps.

Tue, 10/02/2012 - 09:56 | 2848137 lesterbegood
lesterbegood's picture

I set my decoder ring to blue and it tells me that 'All the world is a fiction'?

Tue, 10/02/2012 - 10:07 | 2848173 mckee
mckee's picture

"Drink your Ovaltine"

Tue, 10/02/2012 - 10:59 | 2848352 hannah
hannah's picture



It's right here below:

>>> € <<<



look i am a central bank.....


















that wasnt hard at all...! free money for everyone.

Tue, 10/02/2012 - 11:21 | 2848422 SheepRevolution
SheepRevolution's picture

Let me correct that for you:



Tue, 10/02/2012 - 11:43 | 2848495 hannah
hannah's picture

only 999,999,999^ that the best you got sheep...!!!!


999,999,999^infinity^infinity squared....!



Tue, 10/02/2012 - 15:14 | 2849313 MrSteve
MrSteve's picture

Per the BIS, the notional amount of derivatives at the end of 2011 was $ 1,524,140.9 billion.

Translated into English, that's One Quadrillion, Five hundred twenty four Trillion and One hundred-forty billion dollars.

$22 Trillion is just a dust bunny under the couch for this system, no worries. The Central Banks of Earth are backing all this with their taxpayers' bondage.

Better to worry about where to park when you next go to the gold coin & bullion store.

See the BIS data, chart 23A, at:

Wed, 10/03/2012 - 08:32 | 2851318 dmger14
dmger14's picture

Seems to me numbers get so big that deflation will overwhelm the best efforts to inflate, or the inflators will resign to deflation as it becomes too silly or unacceptable by the public to continuously bail out the financial system.

Tue, 10/02/2012 - 09:35 | 2848059 SafelyGraze
SafelyGraze's picture


Tue, 10/02/2012 - 10:41 | 2848283 Abiotic Oil
Abiotic Oil's picture


So when the subroutine compounds the interest, right, it uses all these extra decimals places that just get rounded off. So we just simplify the whole thing and we just round it down and drop the remainder into an account that we own.
So you're stealing.
Ah, no. No. You don't understand. It's, uh, very complicated. It's, uh, it's, it's aggregate so I'm talking about fractions of a cent that, uh, over time, they add up to a lot.
Ok. So you're gonna make a lot of money, right?
Ok. That's not yours?

Well, it, it becomes ours.JOANNA
How's that not stealing?
I don't think, I don't think I'm explaining this very well. Um, this Seven Eleven, right? If you take a penny from the tray - JOANNA
From the crippled children?!
No, that's the jar. I'm talking about the tray. The penny's for everybody.
Oh, for everybody. Ok.
Yeah, well, those are whole pennies.
Right. I'm just talking about fractions of a penny here, but we do it from a much bigger tray. A couple of million times. So what's wrong with that?


Tue, 10/02/2012 - 09:05 | 2847945 NewWorldOrange
NewWorldOrange's picture

Reminds me of the time Donald Rumsfeld said the Pentagon was missing $2.3 trillion (literally on the even of 9/11.) Now we're talkin' $22 trillion...inflation is a bitch.

Tue, 10/02/2012 - 10:09 | 2848181 Terminus C
Terminus C's picture

hopefully there is no directly related war inflation as well... What is ten times Iraq and Afghanistan...?

Tue, 10/02/2012 - 15:16 | 2849322 BigJim
BigJim's picture

10(Iraq + Afghanistan) = Iran

Tue, 10/02/2012 - 09:05 | 2847946 becky quick and...
becky quick and her beautiful mouth's picture

europe is nothing but a giant version of musical chairs. at this point in the game, there's only 1 chair left. i would think the music is going to be shut off shortly.

Tue, 10/02/2012 - 09:07 | 2847955 NewWorldOrange
NewWorldOrange's picture

Don't underestimate their ability to build new chairs, or investors' willingness to sit in them.

Tue, 10/02/2012 - 09:22 | 2848011 Dr. Engali
Dr. Engali's picture

I think you mean casinos and addicted gamblers. This "market" hasn't seen investors for years.

Tue, 10/02/2012 - 09:28 | 2848030 Oh regional Indian
Oh regional Indian's picture

Truth though is that if you take the black budget/underground moneyflow/petrodollar complex into account, 22T is nothing. And if you think the two streams (overt and covert) do not mix, one word: Laundering.

Every big bank does it, 24 hours a day.


It's an accounting error, is all.


Tue, 10/02/2012 - 09:44 | 2848054 LawsofPhysics
LawsofPhysics's picture

Correct.  Shit only gets real when real goods and services fail to get delivered.  How are things in India on that front?  Standard bribes for moving new equipment into China have been about 30% of the value of the equipment in question would appreciate some information on the take in India.

Tue, 10/02/2012 - 11:35 | 2848473 Oh regional Indian
Oh regional Indian's picture

LOP and CPL below...

India is in a twilight zone. Very on edge because the entire ITES industry depends on western wealth to function. And we all know how that is going. So for th efirst time in a long time, wage freezes and no hockey stick hiring curves.

Money spigot is wide open and we have a long way to go down to ensnare the whole billion plus.

A home loan or a car loan are in the 12-18% range, depending. Yup, ZIRP is a long ways away in India.

That is what makes me feel that India is going to see some growth if war does not ensue. To many sheep to round up yet, at which TeeVee is doing a fine job. MSM is crap and no one (hardly anyone) is asking the right questions.

If they are, it's on TeeVee where they are outgunned.

On the up-side, there are still a lot of sheep to round up. Collapse will be bad but not DISASTEROUS. Damn farmers want to keep farming. 


And the bribery situation is flexible, but overall there is a tightening. Big people are being rounded up, the created money men (bag men) are being fed to the lions, slowly but surely. Change in the air, but more of a One World Gov. note to  the change, not open/new.

Definitely a key axis, it has to be, with a sixth of the world's population.

Thanks for asking, India is still deeply mis-understood.


Tue, 10/02/2012 - 11:59 | 2848549 CPL
CPL's picture

Thanks ORI.


We're on the spaceship called earth and the media attention is universally USA biased, with 1/6th the worlds population and 25% of the goods production (clothes, food, car parts, ammo), it's a juggernaut with China that is never paid much attention.  Truth be told I have to read Pakistani newspapers to read Indian news and vice versa for Pakistan/other 'stan news.  Everything news wise is getting thin with rolling blackouts, or lack of fuel or the reporters just vanishing.


Let's hope to hell a war doesn't break out.

Tue, 10/02/2012 - 11:21 | 2848418 CPL
CPL's picture

I'm curious as well on what's happening in India.  The government there is rounding people up now and the media is becoming useless.


Front pages of news papers are starting to look more and more like Entertainment magazines.

Tue, 10/02/2012 - 09:44 | 2848089 GMadScientist
GMadScientist's picture

Before or after the fistfight for the last chair resolves?

Tue, 10/02/2012 - 13:11 | 2848867 Darth Rayne
Darth Rayne's picture

Similar situation to USA. However, there are no chairs in America.

Tue, 10/02/2012 - 09:06 | 2847951 Cunnial
Cunnial's picture

Haircut anyone?

Tue, 10/02/2012 - 09:07 | 2847952 LawsofPhysics
LawsofPhysics's picture

When there is no rule of laws and contracts and fraud is the status quo, possession is the fucking law.

 Nothing changes until real consequences for bad behavior are restored at all levels of society.

FYI- having you bonus go from 50 million to 10 million is not a real fucking consequence.

Start executing fuckers for theft over a million and watch how fast things turn around.

Stupid fucking sheep.

Tue, 10/02/2012 - 09:09 | 2847961 NewWorldOrange
NewWorldOrange's picture

Spot on, every word.

Tue, 10/02/2012 - 09:26 | 2847973 Anton LaVey
Anton LaVey's picture

I advise you to watch this video to improve your usage of the work 'fuck':

Tue, 10/02/2012 - 09:30 | 2848035 LawsofPhysics
LawsofPhysics's picture

How are things in mom's basement?  

Good call though, I wonder if any of those comics I bought 25+ years ago are actually worth something.  Probably worth more than quite a few sovereign bonds now, certainly worth more than the fiat sticker price I paid.

Tue, 10/02/2012 - 11:34 | 2848470 Reptil
Reptil's picture

I'm not rying to be a dick but what kind of "hero" doesn't dare say fuck in his video about fuck you, just because he's afraid of an R-rating given by someone else?

pfff fuck dat

Tue, 10/02/2012 - 09:20 | 2847998 CPL
CPL's picture

Yeah I run out of shoes to throw at the tv when CNBC is on as well.


They will be first against the wall.

Tue, 10/02/2012 - 09:38 | 2848070 SafelyGraze
SafelyGraze's picture

"When there is no rule of laws and contracts and fraud is the status quo, confiscation is the fucking law."

that seems harsh

Tue, 10/02/2012 - 09:41 | 2848078 LawsofPhysics
LawsofPhysics's picture

And how has that worked out in the past? - FAIL.

Tue, 10/02/2012 - 11:16 | 2848407 Totentänzerlied
Totentänzerlied's picture

"Nothing changes until real consequences for bad behavior are restored at all levels of society."

...This has never been the case in any human society with a population of more than 500 people. You live in a fantasy world whose history is delusional nostalgia and whose future is wish-fulfillment and projection.

"When there is no rule of laws and contracts and fraud is the status quo"

Gee, you mean, like, always - here in reality and not your romantic Enlightenment imagination?

"Start executing fuckers" blah blah blah

Here's one for you, "He that is without sin among you, let him first cast a stone". Bases on the frequency with which you repeat, nearly verbatim, your fascinating proposals and enlightened opinions, may I presume it is you who is without sin, and thus, you who should first cast a stone - lead by example.

Tue, 10/02/2012 - 13:41 | 2848987 Panafrican Funk...
Panafrican Funktron Robot's picture

Seems like there should be an 11th commandment, applied to you good sir:

"Thou shall not rationalize criminal behavior just because it causes less cognitive dissonance."


"Thou shall not be such a fucking pussy, and consider that even the supposedly wimpy French managed to have a "heads roll" period to purge the diseased elements of society."

Tue, 10/02/2012 - 09:07 | 2847954 vinayjha
vinayjha's picture

Waiting for the day when this bubble of Fed and ECB burst out

Tue, 10/02/2012 - 09:07 | 2847956 TheCanadianAustrian
TheCanadianAustrian's picture

"Think of it; twenty-two trillion dollars worth of assets and liabilities and accounted for nowhere."

I thought we were talking about Euros. The two aren't interchangable. Are they? (I just woke up and don't know what happened in the world.)

Tue, 10/02/2012 - 09:08 | 2847958 doomandbloom
doomandbloom's picture

now...where did i put my wallet?

Tue, 10/02/2012 - 09:08 | 2847960 HD
HD's picture

Mrs. HD has a policy of keeping all the money she finds in the washing machine.

Who does the ECB's laundry?

Tue, 10/02/2012 - 09:14 | 2847976 Anton LaVey
Anton LaVey's picture

Hermann Von Rompuy.

Picture him in a French Maid frilly uniform and stockings and go screaming to next toilet to puke...

Tue, 10/02/2012 - 09:22 | 2848013 HD
HD's picture

Why would you put that in my head? What I ever do to you?

Tue, 10/02/2012 - 09:28 | 2848028 Anton LaVey
Anton LaVey's picture

Hey, you asked! I just wanted you to know it is Hermann who is doing the laundry, is all...

Tue, 10/02/2012 - 09:09 | 2847962 LawsofPhysics
LawsofPhysics's picture

Been saying this for years.  The central banks will get together and agree to wipe out all the CDS on their books.

Their debts will "vanish", yours will not.  Suddenly they will be solvent again, you will not (just look at what the Bernanke is doing right now).

Stupid fucking sheep.

Tue, 10/02/2012 - 09:17 | 2847991 Anton LaVey
Anton LaVey's picture

A Central Bank does not have any debt. It has paper.

If the "debts" are too large, the printing presses are started, and the exact amount of paper money is "printed" (electronically credited) to the Central Bank "Assets" column.

Of course, that does mean money has no meaning anymore. But, hey, you know, it's all bits and bytes these days anyway. Just relax and enjoy Das Blinkenlights.

Tue, 10/02/2012 - 09:22 | 2848009 CPL
CPL's picture

Yup, it is the bank in the chain that operates at a 100% loss.  

Tue, 10/02/2012 - 09:26 | 2848022 LawsofPhysics
LawsofPhysics's picture

The Primary Dealers are proxy for the central banks and they sure as hell carry debt.  But I know history and shit gets real when contracts to deliver real goods or commodities start to default.  Not before.

Tue, 10/02/2012 - 09:44 | 2848092 ekm
ekm's picture

Freaking correct again.

Tue, 10/02/2012 - 13:46 | 2849011 Panafrican Funk...
Panafrican Funktron Robot's picture

Shit, we almost had an epic fail point just on failure to deliver fiat back in 2008.  Failure to deliver real goods (thinking crude oil here as a flashpoint) is spot on as the difference between a currency collapse and an outright societal collapse.  

Tue, 10/02/2012 - 09:21 | 2848004 HD
HD's picture

It's only 700 trillion, give or take a 100 trillion or two. I fail to see the big deal. If Jamie Dimon got a paper route before work they'd have it paid off in no time.

Tue, 10/02/2012 - 09:43 | 2848088 yrbmegr
yrbmegr's picture

Indeed.  And you can print 700 trillion on only one piece of paper if you want to.

Tue, 10/02/2012 - 09:49 | 2848105 ekm
ekm's picture

Even assuming that CDSs could be wiped out, the money remains in system. This money will go to hoarding of basic commodities thus starving the world of energy and food.


Hence CDS wipeout = world starvation.

Not gona happen.


Tue, 10/02/2012 - 10:33 | 2848266 LawsofPhysics
LawsofPhysics's picture

You are an idiot.  World starvation will come regardless of some paper bullshit.  It takes a lot of energy to produce food dipshit, and unfortunately energy is finite.


Tue, 10/02/2012 - 10:36 | 2848273 ekm
ekm's picture

You are absolutely brilliant doing analysis.

Your only downfall is this ENERGY IS FINITE thinking.


In reality, Energy is unending, energy is never finite. Did the Earth ever move off the rotating axis?

Tue, 10/02/2012 - 10:55 | 2848338 LawsofPhysics
LawsofPhysics's picture

Sure, now how did that work out for the folks on Easter Island again?

Where are those fusion reactors I ordered anyway?

In fact, the earth's axis has changed over time, sorry did you have a point?

Cite the peer-reviewed work that demonstrates energy is not finite.

we can deal with entropy after that.


Tue, 10/02/2012 - 11:03 | 2848349 ekm
ekm's picture

There are some things that simply ARE.

The universe will never run out of energy, the same as the earth will never run out of air, the same as man will never run out of sperm etc, etc, etc.

Would you like a special study to prove that men will never run out of sperm?

Tue, 10/02/2012 - 11:06 | 2848374 LawsofPhysics
LawsofPhysics's picture

"There are some things that simply ARE."


LMFAO!!!!  Boy I hope you don't trade like that.

In the real world it take energy to do anything.  it also take real commodities to grow or construct anything and for now you and I are confined to a finite system called earth.

Let me know when you grow up, get a real job, have educated yourself and are ready for an adult conversation.

Until then, good luck.

Tue, 10/02/2012 - 11:12 | 2848392 ekm
ekm's picture

Ok,ok, no biggie.

Facts are one thing. Analysis is another thing.

Just keep posting because you have a lot to teach. I'll take your analysis and draw my own conclusions.

(I do not trade. I lost a crapload of money daytrading few years ago. I buy/sell not more than 4-5 times/year, based on macro events.)


Again, I still state that your analysis is brilliant. Fact picking is another thing. I am quite a loyal reader of your posts.

Tue, 10/02/2012 - 11:25 | 2848440 Totentänzerlied
Totentänzerlied's picture

"Let me know when you grow up, get a real job, have educated yourself and are ready for an adult conversation.

Until then, good luck."

Immaterial to the argument, i.e. deflectionary nonsense, like so much of what your repetitively post. Let me know when YOU grow up, Mr. Big Boss-Man.

PS: I have identified an infinite resource: your ego!

Tue, 10/02/2012 - 11:41 | 2848485 Reptil
Reptil's picture


Tue, 10/02/2012 - 11:01 | 2848356 knightowl77
knightowl77's picture

Conservation of Energy

energy can be neither created nor destroyed.


edit; Oil may be finite, but energy is not

Tue, 10/02/2012 - 11:12 | 2848397 LawsofPhysics
LawsofPhysics's picture

FAIL, if something is neither created nor destroyed that is the very definition of finite.  Now about entropy...

More importantly, you are confined to earth.  There is energy in the compounds and molecules on earth and the sun (a fusion reaction converting hydrogen to helium, which will also run out of hydrogen someday) and that is it.  

Moreover, you are also ignoring the the energy require to convert basic elements into usable forms for life (see nitrogen cycle, sulfur cycle, phosphorus cycle, carbon cycle, etc.).  Disrupt any one of those cycles and game over.  Some microorganisms will live on, humans, not so much.

So yes, the unvierse and planet will be just fine, humans won't.

It's called capital and resource mis-allocation and mal-investment.

Tue, 10/02/2012 - 13:52 | 2849032 Panafrican Funk...
Panafrican Funktron Robot's picture

Just to take this in a possibly more fruitful direction, what are your thoughts on wind/solar/biomass as energy alternatives to oil/NG/coal?  I recognize we're probably stuck in the oil/NG/coal camp for at least the next several decades, but would the "renewables" (noting the technical accuracy that these are finite as well) be the right direction to go in?

Tue, 10/02/2012 - 09:10 | 2847964 lolmao500
lolmao500's picture

They just have to do like Germany and Australia and find some assets full of unicorns.

Tue, 10/02/2012 - 09:44 | 2848090 CPL
CPL's picture

Australia included the rabbit populaiton as households.

Germany started counting the 10% of the workforce there illegally from Romania. 


Nothing bad could possibly happen from this.  LOL!

Tue, 10/02/2012 - 09:12 | 2847967 Sanksion
Sanksion's picture

Cette union est foutue.

Tue, 10/02/2012 - 09:12 | 2847971 zorba THE GREEK
zorba THE GREEK's picture

I lost a $100 once and couldn't sleep all night.

I wonder how central bankers sleep.

Tue, 10/02/2012 - 09:17 | 2847992 Anton LaVey
Anton LaVey's picture

Print a couple of trillions and sleep very soundly. That's their motto.

Then, wake up in the morning and do it all over again.

Tue, 10/02/2012 - 09:25 | 2848024 LongSoupLine
LongSoupLine's picture

It's not their remorse.

Tue, 10/02/2012 - 09:27 | 2848027 CrimsonAvenger
CrimsonAvenger's picture

On a big pile of printed fiat with many Ukranian hookers.

Tue, 10/02/2012 - 09:47 | 2848100 GMadScientist
GMadScientist's picture

I smoked a $400 ounce and slept just fine.

Tue, 10/02/2012 - 12:47 | 2848761 Carl Spackler
Carl Spackler's picture

Yes, that was not their money, so they sleep well. 

However, when the owner of that $100 returns for it, they don't change the rules of the game (i.e., "move the goal line"), they change the entire game by making up new rules and a new rationale for any action (i.e., "to prevent deflation").


Tue, 10/02/2012 - 12:48 | 2848763 zerozulu
zerozulu's picture

Sorry to hear that. Give me your FAX number I will fax you one.

Tue, 10/02/2012 - 09:12 | 2847972 yogibear
yogibear's picture

With all this money printing and book cooking lets get some real inflation. Trillions are getting boring, how about quadrillions.

Tue, 10/02/2012 - 09:29 | 2848034 Anton LaVey
Anton LaVey's picture

Yeah, you know, a trillion here and a trillion there and soon you are talking about some real money.

Or not.

Tue, 10/02/2012 - 09:14 | 2847981 Dr. Engali
Dr. Engali's picture

First of all can we get a definition of what an asset is? If there is counter party risk I would hardly call it an asset, so chances are there is nothing but liabilities.

Tue, 10/02/2012 - 09:40 | 2848075 LawsofPhysics
LawsofPhysics's picture

You have identified another major problem with today's society.  The issue of risk.  In this new-age, one-world, politically-correct shit-show the sheeple have been tricked into beleiving that nothing bad ever happens, everyone is a "winner", and somehow made-made institutions can insure everyone's well-being.  Now that fraud is the status quo, nothing could be further from the truth.

Tue, 10/02/2012 - 09:52 | 2848112 ekm
ekm's picture


It's almost all liabilities. It's called a Pyramid Scheme.

Tue, 10/02/2012 - 09:15 | 2847983 Jason T
Jason T's picture

1345 Bank of Florance Collapse kick started the dark age of depopulation.  48' came the Plague 

Bank of Florance was like the Bank of England.. and Bank of Venice was like the Fed.. that Bank of Venice helped rigged the collapse of the Bank of Florance..

Tue, 10/02/2012 - 09:43 | 2848082 falak pema
falak pema's picture

sid Kafir trilogy...from 1173- 1300. I enjoyed that ride thru the middle ages.

Tue, 10/02/2012 - 09:16 | 2847986 ziggy59
ziggy59's picture

So, the Cliff Notes version..
We are so friggin doomed!!

Got Rope?

Tue, 10/02/2012 - 09:19 | 2847996 Yellowhoard
Yellowhoard's picture

Whenever I misplace money I always check under the cushion of my leather recliner.

Tue, 10/02/2012 - 09:20 | 2847997 PaperBear
PaperBear's picture

Down the back of the sofa ?

Tue, 10/02/2012 - 09:27 | 2848026 LongSoupLine
LongSoupLine's picture

boating accident?

Tue, 10/02/2012 - 09:21 | 2848005 falak pema
falak pema's picture

Capitalist cheat chart; who can cheat harder///

ECB money pumping or Private banksta derivative pumping via shadow banking and OTC plays. On both sides of the pond, the mega trillion fake fiat machine.

Its all a game of liar, liar pants on fire; every man for himself and the race to bottom to see who the devil catches as last victim! 

Tue, 10/02/2012 - 09:27 | 2848014 Quinvarius
Quinvarius's picture

The USA is worse.  I don't even need to do an investigation.  I can just flat out tell you.  We are worse.  The Fed's balance sheet is neither accurate nor anything more than an accounting smokescreen for how much money they pump into the system.  I doubt they even keep a real set of books on what they have done.

Tue, 10/02/2012 - 09:23 | 2848016 Kina
Kina's picture

You would only need to execute one bankster for fraud to see the little pussies wee their pants and be good little boys.

Tue, 10/02/2012 - 09:31 | 2848042 yogibear
yogibear's picture

The Chinese get rid of blatent fraud quickly. They just shoot them. 

Use the old west hanging podium so you can string out multiple banksters and fraudsters at one time.  Speaking of liars, robbers and fraudsters you have loads of them at the Federal Reserve bank. 

Tue, 10/02/2012 - 14:38 | 2849171 sessinpo
sessinpo's picture

And they are still full of problems, many of which we probably don't know about. So in other words, hanging one bankster wouldn't do. Corruption and unethical people are a part of life and there will always be somone to take advantage of the sucker born yesterday. Then you have the issue of government corruption and the industrial - media - government complex. Instead of checks and balances, we have collusion.

Also you can't legislate morality. You can only hope to curtail it with harsh penalties. Those are the type of regulations I want to see.

Let businesses play and even speculate but make them pay for their mistakes with no bailouts. Outside of that the main government regulation I approve of is Glass Steagall.

Tue, 10/02/2012 - 09:26 | 2848020 gojam
gojam's picture

The assets are over-valued junk that were 'bought' from the major European banks by the ECB 3,4 or 5 years ago. They now lie on the ECB's balance sheet never to be sold because they can never realise even a quarter of their face value. The liabilities are borrowed against the 'assets'.

Tue, 10/02/2012 - 09:35 | 2848053 Quinvarius
Quinvarius's picture

The great thing about being a central bank is that you can shrink your balance sheet by just writing garbage off and the wall street tards think everything is getting better.  Emphasis on central bank balance sheets, like everything else in this stupid ponzi economy, is just another fake out accounting trick.  The size a central banker balance sheet tells you nothing.  All I care about is how much money they created and shipped out.  I could not care less about what they report on their balance sheet. 

In 2008-09 the Fed gave out trillion dollar loans in shot, and they expect me to believe that ever got paid back?  It never showed up anywhere on any balance sheet until Ron Paul raked them over the coals.  How does something like that still not show up anywhere?  It is all crap.  The Fed is leading a apack of Madoffs who happen to have access to a printing press to save themselves.  They are liars.  They are cheats.  And they are going to print trillions more before the crime spree ends.

Anyone who waits for a conviction or for the perp to confess is not schooled on human behavior.

Tue, 10/02/2012 - 09:35 | 2848058 Winston Churchill
Winston Churchill's picture

Nothing a good/bad war will not cover up.

Just amazed that they published these figures.Cannot help bu wonder what a FedRes

audit wouls show.

Probably something much worse.I'm beggining to wonder if they can hold this system together

much longer without imminent war.

Tue, 10/02/2012 - 09:51 | 2848116 ekm
ekm's picture


Tue, 10/02/2012 - 09:39 | 2848074 The big unzip
The big unzip's picture

Im sure the money is in the someone's pants pocket sitting in a laundry basket.  It will caome out in the wash.

Tue, 10/02/2012 - 09:44 | 2848091 adr
adr's picture

So if I believe my house is worth $2 million, can I borrow $1.8 million against it?

If the Fed is just making it up as they go along, why can't I?

Nobody will ever have to know that the $2 million MBS is actually backed by a $200k asset. IN fact being backed with $200k, is probably more than what a couple trillion dollars is backed with on the Fed balance sheet.

I get a couple million dollars, the Fed gets to print a couple million dollars, what is the problem?

Moral hazzard, ha. For there to be a hazzard, morality has to exist in the first place.

Give me my Obamaphone, give me my Obamahouse, print me my Obamabucks, grow me my Obamafood, and give me my Obamacar.

Srew it all, and watch it burn.

Tue, 10/02/2012 - 09:48 | 2848102 GMadScientist
GMadScientist's picture

Picture it: right now the best and brightest of NASA, ESA, JSA, all working together on the hoax that will save us all.

The Galactic Central Bank will provide liquidity!

Tue, 10/02/2012 - 09:59 | 2848151 Let The Wurlitz...
Let The Wurlitzer Play's picture

Actually the liquidity is comming from Mars.


Tue, 10/02/2012 - 09:56 | 2848129 aleph0
aleph0's picture

@Mark Grant ... just a thought :

IIRC, according to Nigel Farage : the "EU"s ( not the ECB's ) Balance Sheet has not been "properly" audited for over 14 Years ( as of 2008 )... and according to Godfrey Bloom as well ( see last video ).


Nigel Farage audits Barroso Commission

Nigel Farage : "would you buy a used car from this commission ?"

Criminal ( Godfrey Bloom on Audit of EU's books )

Godfrey Bloom : .."If any UK PLC had filed accounts of this nature for 14 years, which have been completely unacceptable and again this year - and I do not regard the court of auditors of having given this a clean bill of health at all - and I've read the document ... If the commission were a board of UK PLC Directors, I have to say they would now be in prison"..

Tue, 10/02/2012 - 10:17 | 2848207 Reptil
Reptil's picture

Hey Mark J Grant

I looked up your twitter account:

and it's been HACKED.

Tue, 10/02/2012 - 10:23 | 2848227 squexx
squexx's picture

Can you say, "Satanic Tribe?!?"

Tue, 10/02/2012 - 10:24 | 2848233 lindaamick
lindaamick's picture

Given this bit of news...the REAL CRIME is not believing!!

Since loss of confidence by some number (tipping point) will crash the whole game,

it must be a crime not to go along and believe in the system. 

Convictions forthcoming.

Tue, 10/02/2012 - 10:25 | 2848235 bubbleburster
bubbleburster's picture

Back in February of this year I think, I came upon a story so very strange and apparently so x-files out there that I just thought it was the mad rantings of some loonie English Lord.  You all might recall this:

Now, with this new posting I am not sure the Lord was all that mad, after all. Angry yes; crazy, well maybe not.

Tue, 10/02/2012 - 10:38 | 2848282 flyme
flyme's picture

Wha-la Vaporization!

Tue, 10/02/2012 - 14:41 | 2849177 sessinpo
Tue, 10/02/2012 - 10:41 | 2848292 fredquimby
fredquimby's picture

No drama.... Europe Marks-to-Market the ECB gold reserves tomorrow, and as gold in Euros is at a record high, you can expect the balance sheet to be looking preeeeeeety sweet. (I guess an increase of.......5.2 billion Euros)

You will be able to find the updated quarterly balance sheet here by breakfast time (US) tomorrow (Wednesday)




Tue, 10/02/2012 - 11:41 | 2848493 Urban Redneck
Urban Redneck's picture

There is still the third card (balance sheet) to turn over before the Three Card Monte analogy is complete-

Tue, 10/02/2012 - 11:43 | 2848496 pfairley
pfairley's picture

Lots of accounts are not transparent. Were ECB's previous accounts more detailed and clear? Who exactly are these major institutions that author claims are upset with the account?  This article should be better written or not posted.

Tue, 10/02/2012 - 11:45 | 2848500 mendigo
mendigo's picture

ok so now I understand why we don't prosecute the honorable corizine.
thanks I feel much better now.

Tue, 10/02/2012 - 20:39 | 2848621 Mediocritas
Mediocritas's picture

Entire eurozone.

Tue, 10/02/2012 - 13:09 | 2848857 collon88
collon88's picture

Such are the inscrutable ways of "the shadow banking system" bitchez. 

Tue, 10/02/2012 - 13:49 | 2849019 FinalCollapse
FinalCollapse's picture

Have you checked with Jon Corzine?

Tue, 10/02/2012 - 13:59 | 2849051 JohnKozac
JohnKozac's picture

That's odd. Just happens $22 Trillion has saturated the Vancouver, HK, London and NYC RE markets....odd...

Tue, 10/02/2012 - 18:32 | 2849972 CompassCapital
CompassCapital's picture

I believe Mr Grant should possibly read the entire ECB Bulletin and not only pick those notes that comply with his alarmist view of the world.


Here is the original publication: (September ECB Bulletin)


The table above is excerpted from Page 156 / 209.

This table is under “External Transactions and Positions” and the figures relate to the Eurozone in its entirety, as if looked at as one single economic unit; and NOT the ECB. 


Also see page 186/209  for explanatory notes on these statistics.

 […] The data on the euro area b.o.p. financial account and i.i.p. in Section 7.3 are based on

transactions and positions vis-à-vis non-residents of the euro area, regarding the euro area as

a single economic entity  […] . The i.i.p. is valued at current market prices, with the exception of

direct investment, where book values are used for unquoted shares, and other investments

(e.g. loans and deposits). The quarterly i.i.p. is compiled on the basis of the same

methodological framework as the annual i.i.p.As some data sources are not available on

a quarterly basis (or are available with a delay),the quarterly i.i.p. is partly estimated on the

basis of financial transactions, asset prices andforeign exchange developments […]





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