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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.


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:

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


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


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:

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.


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.

Sat, 03/09/2013 - 13:46 | 3315030 moneybots
moneybots's picture

That is how parabolics work. up, uP, UP in a straight up line.  Everyone wants in. Then everyone wants to SELL.

Fri, 03/08/2013 - 17:49 | 3313386 JustObserving
JustObserving's picture

Every 1000 points on the Dow creates a wealth effect of $1 trillion - or $1000 million per point.

So why quibble when you just add $200 million in debt per point?

Dow 36,000, here we come.

Fri, 03/08/2013 - 17:46 | 3313389 unwashedmass
unwashedmass's picture

so how much does every buck JPM holds gold under 1585 cost? And what does it cost to contain silver under 30? 


How much are we paying to be "protected" by the bankers from runaway inflation? 

Fri, 03/08/2013 - 17:51 | 3313410 eddymunster
eddymunster's picture

Does the bread come with horse meat?

Fri, 03/08/2013 - 19:50 | 3313728 Parrotile
Parrotile's picture

How long before we are all grateful for even Horsemeat?

How long before rat or mouse becomes sought-after?

7++ Billion mouths to feed, and everyone want's "their piece of the action", and "their rightful allocation of resources".

Not going to end well (or peacefully)

Fri, 03/08/2013 - 17:57 | 3313437 Shell Game
Shell Game's picture

It's Friday. Have to go with my song for the week...year...decade..

Welcome To The Machine - Pink Floyd

Fri, 03/08/2013 - 17:59 | 3313442 Archetype
Archetype's picture

Flipped my short mars futures to april today. Hedging accordingly... Bring it on fuckers!



Fri, 03/08/2013 - 18:01 | 3313449 Volaille de Bresse
Volaille de Bresse's picture

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


Not a bad thing. They are (were?) the cancer of Western societies. 

Fri, 03/08/2013 - 18:08 | 3313462 Yen Cross
Yen Cross's picture

      Would someone just nuke the Yellowstone caldera already? I've had a good life, and God knows I have done well by people.

  I'm gen-x and dealing with boomer fallout.


Fri, 03/08/2013 - 18:54 | 3313596 michael_engineer
michael_engineer's picture

That might help with the global warming issue, but not with much else.

Fri, 03/08/2013 - 18:59 | 3313611 Yen Cross
Yen Cross's picture

   The Banksters will outlive the Cockroaches? Michael respectfully, take your hockey stick somewhere else.

Fri, 03/08/2013 - 20:45 | 3313817 michael_engineer
michael_engineer's picture

I envision a pretty level playing field in anywhere from 10 to 100 years. Prior station of the lineage probably won't mean doodley squat by then with human nature being what it is and with the Fates taking care of those with dirty hands.

Fri, 03/08/2013 - 23:57 | 3314186 michael_engineer
michael_engineer's picture

And besides, haven't you noticed there are enough hockey sticks here to form a league of our own? I'd even suspect that the Tyler's and "The Management" have a personal interest in "hockey sticks" as many of the ZH articles often point out that we are about to fly off the handle.

Warm Bests to you Yen --

Sat, 03/09/2013 - 04:57 | 3314417 ebworthen
ebworthen's picture

Yen Cross said:  "Would someone just nuke the Yellowstone caldera already?"

Wait 'till I expatriate, I'm currently downwind.

Fri, 03/08/2013 - 18:08 | 3313477 Getting Old Sucks
Getting Old Sucks's picture

Give me a home where the buffalo roam...nah

The sun shine's bright on my old Kentucky....nah

America the beautiful....nah

Oh, say can you see, by the dawns.....nah


Fri, 03/08/2013 - 18:08 | 3313479 Go Tribe
Go Tribe's picture

That's a pretty expensive suit.

Fri, 03/08/2013 - 18:08 | 3313480 natronic
natronic's picture

By that math we should be approaching 30,000 by the end of Obozo's second term.

Fri, 03/08/2013 - 18:08 | 3313483 10mm
10mm's picture

Im at the point now it's freeze dried food,can goods.

Fri, 03/08/2013 - 18:22 | 3313515 DblAjent
DblAjent's picture

Ledger entries - 85b/mnth

Economic growth - ZERO

True Unemployment - unknown

Insider Trading - Sell Sell Sell

Corporate Cash - stock buy backs

Rotation - hardly

I couldn't figure out why the DOW was at 12k, and now we are over 14k on volume?

Why even bother studying technicals or fundamentals? How does this make sense to the pundits?

Who is John Galt?

Fri, 03/08/2013 - 18:25 | 3313520 DblAjent
DblAjent's picture

I couldnt find non-Vneck undershirts (Lg) or brown socks at Target today.

I guess the Mexicans don't wear 'em.

Fri, 03/08/2013 - 18:46 | 3313581 Kilgore Trout
Kilgore Trout's picture

They haven't had plain white boxers for a couple years.

Sat, 03/09/2013 - 05:00 | 3314426 ebworthen
ebworthen's picture

V-neck undershirts, ick!

And he's right about white boxers too.

The only 100% cotton ones I can find have skulls and motorcycles in camo colors.

I'm single, so it doesn't really matter unless I get wheeled into the emergency room.

Fri, 03/08/2013 - 18:49 | 3313587 EclecticParrot
EclecticParrot's picture

Unsure why Buffett gets so much cred as the "Oracle of Omaha", when the "Wizard of Washington", Bennie Bernanke, is far more impressive:  he buys BONDS, and STOCKS go higher.

Fri, 03/08/2013 - 18:54 | 3313595 Jones79
Jones79's picture

Tyler, what is the argument that you are trying to make here?  I googled "getco citadel federal reserve" and got no significant hits, especially for anything that happened this Tuesday.  Can you provide me with the relevant information?  Isn't the US debt more or less always increasing in the very recent past?  So, isn't it fairly disingenuous to link the past two weeks DJIA returns with the increase in the federal debt?  As always, I'm willing to believe a fact and appreciate a good claim.   

Sat, 03/09/2013 - 01:31 | 3314312 Jones79
Jones79's picture

nice, no response from anybody.  just negative votes.  i've been on this website for years but it has grown to be like fox news, except fox news is more objective and less biased. 

Sat, 03/09/2013 - 04:51 | 3314418 ebworthen
ebworthen's picture

Just count the Trillions from the crash/crisis to the present.

Look at the M2 money supply, then the velocity (M2 sharply up, velocity sharply down).

Observe ZIRP/NIRP, consumer debt increasing, income and savings decreasing, labor participation rate at historic lows, Food Stamp participation at record highs.

Now look at volume in the markets since 2009 (steadily down).

If the levels of the markets were not in a near direct correlation to the bailouts and FED easing, these other factors would be reversed.

Sat, 03/09/2013 - 15:00 | 3315245 Jones79
Jones79's picture

market volume in the S&P 500 is significantly higher than it was even at the tech bubble; volumes are definitely off of their highs, but they are not languid.^GSPC+Interactive#symbol=^gspc;range=my;compare=gld;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;


I get what you are saying.  I understand what's happened since summer of 2007 and the Fed's involvement and subsequent effect on the monetary base.   But, lumping in other economic artifacts, and then you say "If the levels of the markets were not in a near direct correlation to the bailouts and FED easing, these other factors would be reversed."    But still, that's not what Tyler is saying.  But even what you say, correlation can be spurious.   I mean, correlation is a statistical measure; there is a near direct correlation between me getting older and lower equity volume.  And how can you say that there is a near direct correlation to the bailouts?  That just seems nonsenscial, like using a 12 inch ruler to measure decibel levels.  My whole main point whle reading zerohedge now after taking a break for some time is that it turned into a soapbox for unqualified claims, easy and comfortable delusions, and the worst, and this seems quite common, is a bunch of loosely associated facts thrown together and then a larger claim about them is made, which, upon further investigation, rarely holds up.  (Maybe this is an aritficact of the ocean of accessible facts we live in now.)  This goes for both the posts and the comments.  The whole original point of the ethos of zerohedge and the main author's namesake is to form some group as a buttress against TPTB, but in the end the latter collapsed, but the identity provided a helpful illusion for Tyler Durden, maybe a even a good joke.  

Sat, 03/09/2013 - 15:01 | 3315246 Jones79
Jones79's picture

double post, sorry

Fri, 03/08/2013 - 19:15 | 3313653 razorthin
razorthin's picture

What US needs is to be thrust into the BBB club.

Sat, 03/09/2013 - 04:53 | 3314419 ebworthen
ebworthen's picture

Sould be DDD, but even CCC is too honest for those ratings agencies.

The first one to rate the U.S. BBB will be investigated/raided by the S.E.C. and the F.B.I.

Fri, 03/08/2013 - 20:35 | 3313819 orangegeek
orangegeek's picture

The Dow Jones Daily is in a vertical ascent.


Wonder how those 48M on food stamps feel about this?

Sat, 03/09/2013 - 04:54 | 3314421 ebworthen
ebworthen's picture

"Stock Market?  Isn't that where they sell cows and stuff?"

I souldn't make fun though, I'll have to sign up 'ere long.

Sat, 03/09/2013 - 04:32 | 3314406 Kirk2NCC1701
Kirk2NCC1701's picture

The horror of the WMD's + Asymmetric Warfare (of the Monetary & Fiscal kind) continues in America.  We have found the enemy, and they are us:  The 95%. 

The banana republics could learn a thing or two from us, the Banana Republic par Excellence:  1. If you want to inflate, you must have your currency be the Global Reserve Currency (GRC), and 2. You must use #1 to create the 900 lb Gorilla army, in case some country or region gets cold feet about #1.  Then and only then can you inflate away, to prop up your masters, donors and friends.  Bitchez!  And Don't Cry For Us, Argentina.  Cry for yourself!

Sat, 03/09/2013 - 06:27 | 3314461 resurger
resurger's picture

200 million for 1 point +5

Sat, 03/09/2013 - 07:44 | 3314503 NaiLib
NaiLib's picture

As we had panic selling back in -09 there will be panic buying too. Is this it? Only amongst hedgies.

Sat, 03/09/2013 - 09:25 | 3314590 Sandy15
Sandy15's picture

The only hedgies involved in this is by the FED:

  Maiden Lane I,  Maiden Lane II,  Maiden Lane III

Sat, 03/09/2013 - 09:01 | 3314570 omi
omi's picture

Not to defend money printing, but this comparison is silly. While there's a correlation of asset prices floatation and money printing orgies, other things happen too. For examle, if you had a chart of increase in the number of telephone polls put up and compare each period of money printing you could conclude something like 100 telephone poles cost 200M, which would be eqaully silly.

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