Every "Record" Dow Jones Point Costs $200 Million In Federal Debt

Tyler Durden's picture




 

The past week brought us history: on Tuesday, GETCO and Citadel's HFT algos were used by the Primary Dealers and the Fed to send the Dow Jones to all time highs, subsequently pushing it to new all time highs every single day of the week, and higher on 8 of the past 9 days: a 5ish sigma event. But there is never such a thing as a free lunch. And here is the invoice: in the past 5 days alone, total Federal Debt rose from$16.640 trillion to $16.701 trillion as of moments ago: an increase of $61 billion in five days, amounting to $198,697,068 for every of the 307 Dow Jones Industrial Average points "gained" this week. Because remember: US debt is the asset that allows the Fed to engage in monetization and as a result, hand over trillions in fungible reserves to banks... mostly foreign banks.

From Debt to the Penny:

The good news is that debt is no longer and issue, and only the level of the stock market matters. Because if the wealth effect at $16.7 trillion and a record DJIA is staggering, just wait until the Obama administration takes the debt to $22 trillion in under 4 years.

At that point, nobody will have ever ever have had more money. Sadly, at some point, all that money will be used to buy a loaf of bread....

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Fri, 03/08/2013 - 17:35 | 3313345 cherry picker
cherry picker's picture

A family member closed the doors to the business a week ago.  No bail out for him or his creditors.

Just higher taxes and Obama wellness program that steals from those who don't want it. 

Fri, 03/08/2013 - 17:40 | 3313365 chubbyjjfong
chubbyjjfong's picture

Sunbathing under skies no longer blue is for the elite only i'm afraid.

Fri, 03/08/2013 - 17:46 | 3313392 DoChenRollingBearing
DoChenRollingBearing's picture

Tell you what guys.  EVERY time I am away from my gold, I get a little nervous.  But, NOW, with the Dow so high and our debt getting higher even faster, I can hardly wait to get back and buy gold.

A big purchase.  My biggest ever. 

So, I guess I want gold to be manipulated down for a few more days...  Not long, just a few more days, Jamie and Ben. Thanks in adnace!

Fri, 03/08/2013 - 17:48 | 3313400 MillionDollarBonus_
MillionDollarBonus_'s picture

To quote Professor Benedict Bernanke: 

“If current trends continue, the typical U.S. worker will be considerably more productive several decades from now. Thus, one might argue that letting future generations bear the burden of population aging is appropriate, as they will likely be richer than we are even taking that burden into account.”

The debt is nothing to be worried about when the economy is growing this fast. Future generations will be richer than our wildest dreams, due to careful central planning by our government and Federal Reserve. Of course, the anti-government libertarians don't have any real arguments when presented with the facts about how central planning has actually lifted millions out of poverty and secured a bright and prosperous future for our children.

P.S.

RIP Hugo Chavez - you will be remembered as a hero by all who knew you, and the fight for an equal society will never die.

Fri, 03/08/2013 - 18:00 | 3313439 Spirit Of Truth
Spirit Of Truth's picture

America is taking love and worship of money to its irrational extreme end.  Soon the course of Western Civilization might reverse:

http://www.secondkoreanwar.com

Fri, 03/08/2013 - 21:53 | 3313971 WayBehind
WayBehind's picture

Loaf of bread? If you lucky! There will be no bread to buy .... especially with some funky worthless money.

Fri, 03/08/2013 - 18:01 | 3313448 lunaticfringe
lunaticfringe's picture

MDB...

What happened here?? You are actually getting up arrows. That is some crazy shit, maybe the Chavez' family hitting it. I gotta get down to the sportsbook and bet the Lions to win the 2014 superbowl.

 

Fri, 03/08/2013 - 21:24 | 3313924 espirit
espirit's picture

It's the anti-troll reverse psychology method.  Everytime MDB posts meaningless metrics, we up arrow.

Fri, 03/08/2013 - 18:04 | 3313460 Dan Conway
Dan Conway's picture

Equal society my butt!  He stole well over $2 billion from those he was supposedly helping and made their miserable situation even worse.  Moron!

Fri, 03/08/2013 - 18:05 | 3313461 10mm
10mm's picture

Is that you Tokyo Rose,uh it's MDB.

Fri, 03/08/2013 - 18:40 | 3313566 puskin
puskin's picture

MDB I have taken your advice over the last week and now have traded in all my pm for facebook stock and treasury bonds

My future is secure, thank you.

Fri, 03/08/2013 - 18:47 | 3313583 Yen Cross
Yen Cross's picture

 Dr. Paul Krugman needs a loan MBD. You liberals all like to sink and swim together. Be a pal, and save a cat!

Fri, 03/08/2013 - 20:19 | 3313788 Mr. Magoo
Mr. Magoo's picture

MDB is actually from the alternate universe, send my regards to Olivia and Walternet

Fri, 03/08/2013 - 21:34 | 3313883 hangemhigh
hangemhigh's picture

@ MDB     3313400 

“If current trends continue, the typical U.S. worker will be considerably more productive several decades from now. Thus, one might argue that letting future generations bear the burden of population aging is appropriate, as they will likely be richer than we are even taking that burden into account.”

The debt is nothing to be worried about when the economy is growing this fast. Future generations will be richer than our wildest screams, due to careful central planning by our government and Federal Reserve. Of course, the anti-government libertarians don't have any real arguments when presented with the facts about how central planning has actually lifted millions out of poverty and secured a bright and prosperous future for our children."

dood, i love your schtick......its so femamature that i'm compulsed to pre-lie......

“If current i-droid trends continue, the typical U.S. cyborg will be considerably more cybernomic several decades from now. Thus, one might argue that letting future Homeland geno-sheeplets share the thug life, blue pill burden of matrixation is  appropriate, as they will likely be totally, awesomely spigger riche even taking that burden into account.”

Their slavery is nothing to be worried about when the circle jerk economy is growing this fasturbate. Future sheeplets will be more hell wheeled than our vilest screams, due to maxi-caregami planning by our central smothernment and Federaphile Preserve. Of course, the anti-smothernment libergreenies don't have any real arguments when presented with the facks about how central spamming has actually shifted millions out of prosperity and secured a blighted and disastrous future for our children.

 

 

 

Fri, 03/08/2013 - 21:51 | 3313968 Moe Hamhead
Moe Hamhead's picture

"When the economy is growing this fast" you mean: when the debt is growing this fast.

Sat, 03/09/2013 - 01:25 | 3314305 HurricaneSeason
HurricaneSeason's picture

Not only The Bernank, but Dick Cheney knew that deficits don't matter. Cheney had some of the richest, most established intelligence in the world at his disposal and knew ahead of time that deficits don't matter. We're going to screw the Chinese out of trillions in debt. The corporations and military industrial complex will get rich in the process. It's win-win until it isn't.

Fri, 03/08/2013 - 17:53 | 3313412 Shell Game
Shell Game's picture

"A big purchase. My biggest ever."

 

That will be a good day..  Bravo.

Sat, 03/09/2013 - 00:17 | 3314213 Non Passaran
Non Passaran's picture

Good for you!
I did the same recently. Two of my largest single purchases happened in the past month.

Sat, 03/09/2013 - 04:34 | 3314408 ebworthen
ebworthen's picture

Ditto.

Fri, 03/08/2013 - 17:50 | 3313402 McMolotov
McMolotov's picture

"Must print moar!!!!!!!!!!!!!!!!!!!!!"

—Paul Krugman, bearded clam, general fucktard, douchebag extraordinaire, fellator of bankers, hater of all things good and decent, all-around asshole

Fri, 03/08/2013 - 17:54 | 3313419 whatsinaname
whatsinaname's picture

Dont the equity prices contribute to GDP calculations ? So if a rising Dow keeps the recession at bay (by juicing up the GDP number) then so be it... seems to be the mantra !!

That may also explain why the ECRI is not seeing a recession in the GDP numbers. Every time the GDP stinks they spike up the indices.

Did I get that completely ass backwards ?

Fri, 03/08/2013 - 18:00 | 3313446 Ham-bone
Ham-bone's picture

not sure bout that...but sure that ass backwards is the new forwards.

Fri, 03/08/2013 - 18:23 | 3313517 McMolotov
McMolotov's picture

Remember, due to budgetary constraints we've dropped the first 'R,' so now it's f-o-w-a-r-d:

http://www.thegatewaypundit.com/2012/10/oh-good-grief-obama-supporters-w...

Fri, 03/08/2013 - 23:28 | 3314142 max2205
max2205's picture

They have gunned it now to cover the epic $400 billion meltdown of Aapl

Fri, 03/08/2013 - 21:27 | 3313935 MoneyThangs
MoneyThangs's picture

take it easy on Barrack and Ben, it's not easy to rig a 16 trillion dollar economy

Fri, 03/08/2013 - 17:37 | 3313353 ZippyBananaPants
ZippyBananaPants's picture

I heard the white house is now closed to tourists.  Because they have more important things to spend money on like golf outings, and daughters dinner in New York?

How stupid are we to put these idiots in office, all of them, not just the president.  

Sat, 03/09/2013 - 04:37 | 3314409 ebworthen
ebworthen's picture

Funny thing is, most of the people conducting the tours were volunteers.

When the President of the Nation stoops that low you know we are in trouble.

Fri, 03/08/2013 - 17:39 | 3313358 Abraxas
Abraxas's picture

No problem. We can afford it. We've printed so much, we don't know what to do with it. How about we start another war to release some of the excesses?

Fri, 03/08/2013 - 17:40 | 3313364 LukeWorm
LukeWorm's picture

The Bank "never goes broke." If the Bank runs out of money, the Banker may issue as much as needed by writing on any ordinary paper.    Offical Monopoly® Game Rules

 

Fri, 03/08/2013 - 20:22 | 3313792 Mr. Magoo
Mr. Magoo's picture

"CHUMP CHANGE" as in Change for CHUMPS

Fri, 03/08/2013 - 17:44 | 3313366 John Law Lives
John Law Lives's picture

I wonder if there is ANY limit to the greed of banksters and corporate robber barons and rank-in-file lawmakers etc. who don't seem to care how much debt they foist upon the next generation...  so long as their masters get their bonuses today.

goddamFUBAR.

Fri, 03/08/2013 - 17:41 | 3313367 CheapBastard
CheapBastard's picture

The malls get emptier and emptier every day.....

 

It's Spooky.

Fri, 03/08/2013 - 17:53 | 3313413 McMolotov
McMolotov's picture

There will come a time when the entire country will resemble Detroit, and the media will still be talking up the "all-time highs" on the Dow.

Fuck. This. Shit.

Fri, 03/08/2013 - 18:33 | 3313542 Caviar Emptor
Caviar Emptor's picture

We are citizens of Detroit in spirit now. We are walking dead

Fri, 03/08/2013 - 19:53 | 3313739 Buzz Hacksaw
Buzz Hacksaw's picture

MAX Headroom! Great!

Fri, 03/08/2013 - 18:39 | 3313562 NotApplicable
NotApplicable's picture

Well, other than the old people who orbit about inside of them.

Fri, 03/08/2013 - 19:42 | 3313711 Parrotile
Parrotile's picture

On their electric scooters!

Adds a whole new level to the "hazards" encountered whilst shopping.

Sat, 03/09/2013 - 04:42 | 3314413 ebworthen
ebworthen's picture

Easy now; I'm walking in the mall to get a little exercise out of the snow and cold and to observe the decline of retail and the society.

Sat, 03/09/2013 - 04:40 | 3314411 ebworthen
ebworthen's picture

"The malls get emptier and emptier every day...."

The ammo shelves too; two local WalMarts sold out of anything but 20 gauge bird shot.

Cheaperthandirt and other online stores very limited supply and $26 for 50 count of wadcutters.

Fri, 03/08/2013 - 17:41 | 3313371 Chupacabra-322
Chupacabra-322's picture

"When all else fails they take you to war." -Gerald Celente

Fri, 03/08/2013 - 17:42 | 3313373 Yen Cross
Yen Cross's picture

  Sad. So very very sad. 

Fri, 03/08/2013 - 17:43 | 3313376 MoneyThangs
MoneyThangs's picture

Just when you thought our government was wasting money

Fri, 03/08/2013 - 17:45 | 3313384 SmallerGovNow2
SmallerGovNow2's picture

Love it.  "buyers" rush in every single day, at the highs of the end of the day, and buy.  This is nine all time high days out of the last ten and not a single soul wants to take a profit?

Fri, 03/08/2013 - 17:57 | 3313432 Obchelli
Obchelli's picture

Because not a single soul actually buys. It's all machines - they do not have to take profit just selling to each other by upping bid 1 cent. So their core holding gets higher and higher valuations.

 

There are no real sellers in this market any more...

Fri, 03/08/2013 - 17:57 | 3313436 inevitablecollapse
inevitablecollapse's picture

you must have been writing this same sentiment as i was writing mine - at least some people realize what in the hell is going on

Fri, 03/08/2013 - 18:36 | 3313551 Caviar Emptor
Caviar Emptor's picture

Yes the pyramid scheme of modern economics rolls on..last time around it was banks selling and re-selling debt to each other.

Fri, 03/08/2013 - 17:56 | 3313434 inevitablecollapse
inevitablecollapse's picture

machines don't need to eat...yet

Fri, 03/08/2013 - 18:39 | 3313564 Village Smithy
Village Smithy's picture

Everytime someone buys someone sells and it's pretty safe to say at these levels that they're selling at a profit.

Fri, 03/08/2013 - 19:46 | 3313722 Parrotile
Parrotile's picture

In today's land of HFT, it's not someone doing the buying or selling, but something.

You might find that these "somethings" are owned by quite a small but very well-connected group.

A group that has had a fair bit of bad press of late . . . .

Fri, 03/08/2013 - 19:59 | 3313756 Buzz Hacksaw
Buzz Hacksaw's picture

The buggers are trading between themselves, mabey across the isle, on the same network, using monopoly money. There's only one way and that's up! Until of course there isn't.

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