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JPM Sees "Most Extreme Ever Excess Liquidity" Bubble After $3 Trillion "Created" In First 9 Months Of 2013

Tyler Durden's picture


JPM's Nikolaos Panigirtzoglou, editor of the "Flows and Liquidity" weekly research piece, is one of the greater experts on, not surprisingly, global monetary flows and liquidity. Which as we noted back in 2009, is all that matters in a world in which the micro, and recently the macro, have all been made obsolete by one simple thing: credit-money creation by the monetary authorities. Which is why we read with interest his latest edition in which he sets off to answer a not so simple question: "how much liquidity is there?" What he finds is disturbing.

From JPM:

Excess money supply is currently at record high positive territory. The residual of the regression turned positive in May 2012 and has risen steadily since then. This is both because of real money supply increasing and money demand decreasing due to lower uncertainty (Figure 3). In particular, global M2 is up $3tr or 4.6% since the beginning of the year (to September), outperforming the Global CPI inflation index which is up by only 2% since then. Global M2 reached $66tr in September this year.


Of the $3tr increase in global M2 money supply in the first three quarters of the year, around $1tr is due to G4 countries, i.e. US, Euro area, UK and  Japan. The remaining $2tr is due to EM countries, driven by strong bank lending growth in EM. As we highlighted last week, EM bank loan credit creation has been unaffected by the EM selloff in the summer and was running in July/August at a $170bn per month pace. So strong credit growth in EM economies continues to boost our measure of excess liquidity.


And the conclusion:

The rise in excess liquidity, i.e. the residual in the model of Figure 4, is supportive for risky assets especially when we compare the past nine months with the period between the end of 2010 and the beginning of 2012 when excess money supply was negative. Looking further back in Figure 4, we can see three major episodes of excess liquidity (i.e. positive residual): 1993-1995, 2001-2006 and Oct 2008-Sep 2010. These were periods of strong asset price inflation suggesting that excess liquidity could have been a factor supporting markets at the time. The current episode of excess liquidity, which began in May 2012, appears to have been the most extreme ever in terms of its magnitude.

To summarize:

  • In just the first 9 months of 2013, DM countries have injected $1 trillion in liquidity sourced exclusively by central banks; EMs have injected another $2 trillion driven by bank loan demand.
  • The total global M2 is over $66 trillion, growing at an annualized pace of over 6%.
  • The amount of excess liquidity, i.e. the infamous "liquidity bubble" in the global fungible system is "the most extreme ever in terms of its magnitude"

And that's really all there is to know: the music is playing and everyone has to dance... just don't ask what happens when the music ends.


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Mon, 10/28/2013 - 15:05 | 4098552 LawsofPhysics
LawsofPhysics's picture

Exponential equations are a bitch.  but I am sure Jamie know this...

Mon, 10/28/2013 - 15:10 | 4098570 Joe Davola
Joe Davola's picture

The music never has to end, like the 4th side of Metal Machine Music.

Mon, 10/28/2013 - 15:16 | 4098589 Boris Alatovkrap
Boris Alatovkrap's picture

"Surprise, surprise, surprise..." as Boris is attempt to make shock face expression.

Mon, 10/28/2013 - 15:18 | 4098595 King_of_simpletons
King_of_simpletons's picture

This is not extreme. It is Exceptional. We should be grateful that we are still the richest country in the world without considering all our debt and liabilities, of course.

Mon, 10/28/2013 - 15:27 | 4098634 Manthong
Manthong's picture

It’s just a good thing there are so many Chinese, Russians and Indians that prefer our paper and electronic abstractions to barbarous relics and other deflated hard assets.

Mon, 10/28/2013 - 15:51 | 4098721 ParkAveFlasher
ParkAveFlasher's picture

I will not sell my miners today.  I will not sell my miners today. I will not sell my miners today. I will not sell my miners today. I will not sell my miners today. I will not sell my miners today. I will not sell my miners today. I will not sell my miners today. I will not sell my miners today. I will not sell my miners today. I will not sell my miners today. I will not sell my miners today. I will not sell my miners today. I will not sell my miners today. I will not sell my miners today. I will not sell my miners today. I will not sell my miners today. I will not sell my miners today. I will not sell my miners today. I will not sell my miners today. I will not sell my miners today. I will not sell my miners today. I will not sell my miners today. I will not sell my miners today.

Mon, 10/28/2013 - 16:23 | 4098853 beegle
beegle's picture

yeah i know the feeling , hang in there man , you wont fall alone thats for sure , this is 'nam dude


Mon, 10/28/2013 - 16:35 | 4098899 HoofHearted
HoofHearted's picture

It looks like Bernanke, Yellen, Timmay, and Obama have been in here junking all the good comments. What a bunch of dipshits they are...

Mon, 10/28/2013 - 17:35 | 4099047 macholatte
macholatte's picture



Keep your eye on the target.  Total government control is the objective. It is more difficult with Red Team players on the field. Approaching the election of 11/14 look for even greater ramps and outlandish lies and Gestapo tactics, silencing any/all opposition. If Progressives take both houses again, the collapse could happen before Hillary gets elected. They have not yet begun to fight.


"Radicals must be resilient, adaptable to shifting political circumstances, and sensitive enough to the process of action and reaction to avoid being trapped by their own tactics and forced to travel a road not of their choosing."

"A Marxist begins with his prime truth that all evils are caused by the exploitation of the proletariat by the capitalists. From this he logically proceeds to the revolution to end capitalism, then into the third stage of reorganization into a new social order of the dictatorship of the proletariat, and finally the last stage -- the political paradise of communism."  

"An organizer working in and for an open society is in an ideological dilemma to begin with, he does not have a fixed truth -- truth to him is relative and changing; everything to him is relative and changing.... To the extent that he is free from the shackles of dogma, he can respond to the realities of the widely different situations...."

--  Saul Alynski


Mon, 10/28/2013 - 18:04 | 4099172 Herd Redirectio...
Herd Redirection Committee's picture

I made about 50% on a small trade on an Argentinean gas company, the sensation was so unusual I sold some of my position and bought a junior Mexican silver miner's shares.    Because they are the lowest I have ever seen!

Mon, 10/28/2013 - 22:19 | 4100011 Boris Alatovkrap
Boris Alatovkrap's picture

You must try invest in copper mine!

Mon, 10/28/2013 - 17:03 | 4099016 WOAR
WOAR's picture

All shorts and no longs make Jack a poor boy?

Mon, 10/28/2013 - 15:35 | 4098658 Headbanger
Headbanger's picture

I say again... THE CRASH IS UPON US!  

And thank you Obama you ass hat!

Mon, 10/28/2013 - 15:45 | 4098692 Chupacabra-322
Chupacabra-322's picture

Liquidity? How, through Osmosis? Thie greatest 100 year Ponzi of all time is ending. Prepare accordingly.

Mon, 10/28/2013 - 16:01 | 4098719 Say What Again
Say What Again's picture

Something is very wrong in the land of oz, otherwise know as the market.

We are witnessing a sell-off in the closing hour of the regular session.  This just can't happer.  What next -- is the sky going to fall?


UPDATE:  Never mind -- Stick save in the final 5 minutes of the regular session.

Mon, 10/28/2013 - 17:17 | 4099046 walküre
walküre's picture

Every day is Groundhog Day since March 2009

Mon, 10/28/2013 - 15:52 | 4098725 NoDebt
NoDebt's picture

HB-  Ok, you've been on this subject all day.  You got somethin', or is this one of those "gut feel" things?  If it's just gut feel, you might want to check the expiration dates on your milk and eggs first.


Mon, 10/28/2013 - 16:22 | 4098850 Keyser
Keyser's picture

I'm with HB on this one, but it's a slow motion collapse and we are in the passenger seat. The unstoppable force is a about to meet the immovable object. 


Mon, 10/28/2013 - 17:30 | 4099078 walküre
walküre's picture

Think about it. As long as the elite is not suffering and gets everything they could ever dream of, there will be no collapse of any sort. When the elite either fears for their lives or sees their wealth evaporate due to government actions, they cannot control we might see a change in direction.

Maybe Obamageddon is the catalyst to a massive exit of wealth from the US. He's been good to the elite so far but hey, perhaps he was just fattening up the elite to make their slaughter more profitable. There's no way the elite will either agree with a commie Dollar or a crappy health care system in their own backyard.

Watch what the elite does.

Mon, 10/28/2013 - 15:45 | 4098695 ziggy59
ziggy59's picture

Tyler, Is that picture of Al "Mr. Magoo" Greenspan with hair??

Mon, 10/28/2013 - 15:59 | 4098762 Say What Again
Say What Again's picture

I was just about to post about the subliminal images on the bubble.  I see a dog and a large jungle cat.

Mon, 10/28/2013 - 20:09 | 4099586 TwoHoot
TwoHoot's picture

The problem here is our central bank can print money but they can't print tortillas.

Do they print tortillas in Russia?

If so, I may move there.

Mon, 10/28/2013 - 15:17 | 4098594 Herd Redirectio...
Herd Redirection Committee's picture

The analogy of a bubble is actually insufficient for our purposes.  Because TWO things can happen.  A bubble must pop.

But the market doesn't have to pop.  Instead, the currency can 'pop'.

Mon, 10/28/2013 - 15:38 | 4098665 Winston Churchill
Winston Churchill's picture

Party like its Zimbabwe.

Mon, 10/28/2013 - 16:26 | 4098866 gatorengineer
gatorengineer's picture

Or perhaps like the universe it can expand for ever

Mon, 10/28/2013 - 15:12 | 4098578 doctor10
doctor10's picture

looks like we have a burn rate on how fast that 750T-1quadtrillion worth of derivatives that the central banks cary on their books are detonating.

Mon, 10/28/2013 - 16:24 | 4098857 Keyser
Keyser's picture

I liken it to a bottle of nitroglycerin, just waiting for the slightest jolt before going off and taking the entire derivatives market along with it. 


Mon, 10/28/2013 - 16:47 | 4098951 Winston Churchill
Winston Churchill's picture

Freeze it.

Nitro ice cubes are extremely stable.

Do not mix with the regular ones !

About time to start an ice delivery company in the Hamptons.

Mon, 10/28/2013 - 15:22 | 4098604 Kirk2NCC1701
Kirk2NCC1701's picture

@LoP: "Exponential equations are a bitch.  but I am sure Jamie know this..."

So is having to write checks backed by real bank balances and having real collateral.  But the rest of us know this...

Mon, 10/28/2013 - 15:23 | 4098614 LawsofPhysics
LawsofPhysics's picture

"Real Collateral" - LMFAO!  With "mark to fantasy" accounting this can be anything.  This is why Jamie is "richer than you".

Mon, 10/28/2013 - 16:07 | 4098795 Bangin7GramRocks
Bangin7GramRocks's picture

I saw Jamie drive up in his Escalade and buy cigarettes, beer and seafood with his government handout.

Mon, 10/28/2013 - 16:17 | 4098832 SILVERGEDDON

Jamie Dimon karioke. " We pay Fine, Fine, Fine, 'till all our lawsuits go away - ay - aay ! "

Sincere apologies to the Beach Boys. 

Mon, 10/28/2013 - 15:05 | 4098557 Super Broccoli
Super Broccoli's picture

aaaaawww JPM start saying shit after it got fined 13 bl ... how awkward ;-)

Mon, 10/28/2013 - 16:27 | 4098868 Keyser
Keyser's picture

How can anyone believe JPM anymore with their call to sell gold in Qtr 1 & 2, while they were buying hand over fist pretty much puts them in the scumbag category. 


Mon, 10/28/2013 - 17:34 | 4099083 Citxmech
Citxmech's picture

Of course what JPM says, at least in my mind, takes a back seat to revelation that GLOBAL M2 is apparently increasing at 6%/yr - which is a doubling rate of less than 12 years.  We're what - 6 years into this cycle?  Think of what that will do to commodity prices over the next 6 years. . . 

Mon, 10/28/2013 - 15:07 | 4098562 heinrich6666
heinrich6666's picture

I don't mind. As long as WilliamBanzai is making his shitty Photoshops, I feel all right.


Mon, 10/28/2013 - 15:09 | 4098571 DaddyO
DaddyO's picture

Can you spell douche? h-e-i-n-r-i-c-h-6-6-6-6

How come all the WB7 haters all the sudden, always quick to criticize, nothing pertinent or educational to add...


Mon, 10/28/2013 - 15:15 | 4098586 Herd Redirectio...
Herd Redirection Committee's picture

Haters will hate.  Bill knows.

Mon, 10/28/2013 - 16:25 | 4098849 NoDebt
NoDebt's picture

ZH is on somebody's website hit-list, and that includes WB7 now.  About the time the Obamacare website debacle starting kicking into high gear there's been a notable up-tick in inexplicably pro-Obama and pro-Obamacare posts/replies.  Also the "down-arrow boys" have been rolling through various threads much more frequently.

Look up and down this thread for a minute at the down arrows.  Notice a pattern?  Like EVERY DAMNED POST?  OK, so heinrich6666 had it coming to him, but I mean everyone else who isn't acting like a douchebag.

And it's been happening with increasing frequency.

Mon, 10/28/2013 - 20:07 | 4099571 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

When the ship is imploding they always pull this shit. The more threatened they feel the more they strike back like a cornered rat. There has been a notable uptick in the usual FEMA death camps, martial law, they want to take our guns propaganda they like to plant that the conspiracy theory sites that don't vette anything just run with wholesale. Trigger discipline they are trying to get us to make a bad move to justify going full retard Draconian to save their precious.

Mon, 10/28/2013 - 15:20 | 4098602 superflex
superflex's picture

Somebodies panties are all wadded up in their vajayjay.

Mon, 10/28/2013 - 15:12 | 4098573 Devotional
Devotional's picture

why don't you, heinrich666, go muff Yellen?

Mon, 10/28/2013 - 15:10 | 4098574 Charles Nelson ...
Charles Nelson Reilly's picture

you're like the douchebag that shows up to a gang bang with AIDS.

Mon, 10/28/2013 - 15:13 | 4098579 Grande Tetons
Grande Tetons's picture


Show us your work.

I love fucking gold.  

Mon, 10/28/2013 - 16:17 | 4098833 daveO
daveO's picture


Remember Goldfinger?

Mon, 10/28/2013 - 20:08 | 4099580 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

I think brownfinger or stinkfinger is more appropiate for that one.

Mon, 10/28/2013 - 17:17 | 4099042 superflex
superflex's picture

Me too.

Bought a St. Gauden's double eagle over the weekend at an estate auction under spot.

Mon, 10/28/2013 - 17:46 | 4099121 stant
stant's picture

another low brow zher hits the red kitty

Mon, 10/28/2013 - 15:08 | 4098564 6th of May
6th of May's picture

They just want you to short the market!  

NEEEEVEEEER!! I will be long and party with you JPM bitchez!


Mon, 10/28/2013 - 15:13 | 4098566 ebworthen
ebworthen's picture

Let's see, when the music stops and JPM doesn't have a chair - the FED, the Treasury, and the CONgress will kick future generations out of a chair to make sure JPM and any other TBTF bank has one?

Mon, 10/28/2013 - 17:00 | 4099001 Chupacabra-322
Chupacabra-322's picture

That sounds about right. And still, no mass Arrests of The Global Criminal Oligarch Cabal Bankster Intelligence Crime Syndicate.

Outright Criminality out in the open for all the world to see. Complete Huburis, Bravado & Meglomania.

Mon, 10/28/2013 - 15:10 | 4098569 JustObserving
JustObserving's picture
JPM Sees "Most Extreme Ever Excess Liquidity"

So why are gold and silver not headed to the moon?

Mon, 10/28/2013 - 15:17 | 4098592 Cognitive Dissonance
Cognitive Dissonance's picture

Because someone's, or something's, fat ass is sitting on it.

Mon, 10/28/2013 - 15:24 | 4098619 Bay of Pigs
Bay of Pigs's picture

Yeah, JPM's fat fuckan ass.

Mon, 10/28/2013 - 15:25 | 4098621 Rainman
Rainman's picture

Moochele had nuthin to do with it !

Mon, 10/28/2013 - 16:50 | 4098967 kaiserhoff
kaiserhoff's picture

You could be right.

Might have been Opra, who squashed those suckers flat.

Mon, 10/28/2013 - 15:22 | 4098607 NOTaREALmerican
NOTaREALmerican's picture

Re;  So why are gold and silver not headed to the moon?

For the same reason interest rates are near zero.

It's the viscosity of money and the position of the Hindenburg Omen relative to Uranus. 

Mon, 10/28/2013 - 15:26 | 4098633 Bastiat
Bastiat's picture

"viscosity of money"  good one!

Mon, 10/28/2013 - 15:32 | 4098647 NoDebt
NoDebt's picture

Viscosity of money- I like it.  That one goes in the old bio-computer for reuse at a later date.

Mon, 10/28/2013 - 17:37 | 4099092 STP
STP's picture

Viscosity of Money = Vicious Monkey


Mon, 10/28/2013 - 15:13 | 4098581 NOTaREALmerican
NOTaREALmerican's picture

All REAL economists know that in a world of rational actors where all the information is known there can't be any bubbles.

Mon, 10/28/2013 - 17:09 | 4099030 halfawake
halfawake's picture

.. but there can be ponzis.

Mon, 10/28/2013 - 15:15 | 4098587 SheepDog-One
SheepDog-One's picture

Hmm...seems totaly sustainable to me! Now go away....'batin.

Mon, 10/28/2013 - 15:16 | 4098590 RaceToTheBottom
RaceToTheBottom's picture

Bring out the ShamWOW to soak up all that Liquidity

Mon, 10/28/2013 - 15:22 | 4098605 SheepDog-One
SheepDog-One's picture

You mean ScamWOW?

ScamWOW !!! - YouTube

Mon, 10/28/2013 - 15:19 | 4098598 ShrNfr
ShrNfr's picture

"When The Music's Over"

Yeah, c'mon

When the music's over
When the music's over, yeah
When the music's over
Turn out the lights
Turn out the lights
Turn out the lights, yeah

When the music's over
When the music's over
When the music's over
Turn out the lights
Turn out the lights
Turn out the lights

For the music is your special friend
Dance on fire as it intends
Music is your only friend
Until the end
Until the end
Until the end

Cancel my subscription to the Resurrection
Send my credentials to the House of Detention
I got some friends inside

The face in the mirror won't stop
The girl in the window won't drop
A feast of friends
"Alive!" she cried
Waitin' for me

Before I sink
Into the big sleep
I want to hear
I want to hear
The scream of the butterfly

Come back, baby
Back into my arm
We're gettin' tired of hangin' around
Waitin' around with our heads to the ground

I hear a very gentle sound
Very near yet very far
Very soft, yeah, very clear
Come today, come today

What have they done to the earth?
What have they done to our fair sister?
Ravaged and plundered and ripped her and bit her
Stuck her with knives in the side of the dawn
And tied her with fences and dragged her down

I hear a very gentle sound
With your ear down to the ground
We want the world and we want it...
We want the world and we want it...

Persian night, babe
See the light, babe
Save us!
Save us!

So when the music's over
When the music's over, yeah
When the music's over
Turn out the lights
Turn out the lights
Turn out the lights

Well the music is your special friend
Dance on fire as it intends
Music is your only friend
Until the end
Until the end
Until the end!

Mon, 10/28/2013 - 15:46 | 4098702 moonman
moonman's picture

The old get old and the young get stronger

May take a week and it may take longer

They got the guns, but we got the numbers

Gonna win yeah we're taking over, come on!

Mon, 10/28/2013 - 15:19 | 4098601 replaceme
replaceme's picture

What happens when the music ends?

Mon, 10/28/2013 - 15:23 | 4098615 Kirk2NCC1701
Kirk2NCC1701's picture

Then you get a new DJ and a new Crowd.

Same as it ever was.  Same as it ever was.

Mon, 10/28/2013 - 15:26 | 4098624 DaddyO
DaddyO's picture

I give up?

The bartender locks the coolers, turns out the lights and goes home?


Mon, 10/28/2013 - 15:30 | 4098643 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Did you forget?

Bartender is a robot.

Never goes home.

FED is robotic.

Mon, 10/28/2013 - 15:26 | 4098628 NOTaREALmerican
NOTaREALmerican's picture

Re:  What happens when the music ends?

The bigger asshole kids push the small meek kids to the floor, causing them to cry.   Mom comes into the room and says:  "who push johnny on the floor".   The big kids all turn on the least extroverted big kid and point at him.   Mom, grabs the kid by the ear and says "come with me young man" and takes him into the front room where dad has a talk with him.

Mon, 10/28/2013 - 15:28 | 4098635 ziggy59
ziggy59's picture

Let the mad dash for the last chair begin!

Will suck if and when same happens to real assets and people who think their paper gold, silver is convertible...aint so...

100:1. Paper:metal...

make mine shiney

Mon, 10/28/2013 - 15:29 | 4098637 kurzdump
kurzdump's picture

When the music ends people go home. They dont care for useless shit like nuclear power plants, military orders, bank accounts.

Mon, 10/28/2013 - 15:32 | 4098652 Frank N. Beans
Frank N. Beans's picture

I met a girl who sang the Blues, and I asked her for some happy news She just smiled and turned away I went down to the sacred store where I'd heard the music years before, but... The man there said the music wouldn't play And, in the streets the children screamed, the lover's cried, and the poets dreamed, but... Not a word was spoken - the church bells all were broken And, the three men I admire most: the Father, Son, and the Holy Ghost, they... Caught the last train for the coast the day the music died



Mon, 10/28/2013 - 15:34 | 4098657 RabbitChow
RabbitChow's picture


Mon, 10/28/2013 - 15:25 | 4098623 Pig Circus
Pig Circus's picture

I assume the FED has this number and couldn't even taper a nickel. What a bunch of reckless Cunts.

Mon, 10/28/2013 - 15:26 | 4098627 Sufiy
Sufiy's picture

Now lets put it in contex:

Max Keiser: Turd Ferguson Reports That JPMorgan Has ‘Cornered’ The Comex Gold Market GLD, SLV

Max Keiser is on fire in this episode. Turd Ferguson joins after 13.00, but the intro is worth watching on its own as Max lays out his "Big Picture". Now we can put the yesterday's sell off in the Gold market and all orchestrated "market volatility" with the Gold this year in the perspective.    We will provide a few entries if you would like to dig dipper: If you missed this one - have fun:

Jon Stewart And Matt Taibbi: Banksters, Presstitutes And Why Nobody Should Shed a Tear for JP Morgan Chase

  Matt Taibbi continues his brilliant work as one of the last real investigative journalists left at his best. Jon Stewart is on par translating the situation for those who has difficulties with concentration and reading.    We will ask our rhetorical question again: after LIBOR fraud, FOREX manipulations, Mortgage scam and Pension looting - Is The Gold Manipulation To Be Admitted Next?

Mon, 10/28/2013 - 15:59 | 4098755 Bay of Pigs
Bay of Pigs's picture

"Jon Stewart is on par translating the situation for those who has difficulties with concentration and reading."

Wrong, Jon Stewart is a pitiful fucking joke on Wall St corruption issues. More like a water carrier pushing the MSM disinfo garbage.

His brother runs the NYSE (COO). Please wake up.

Mon, 10/28/2013 - 17:42 | 4099107 Herd Redirectio...
Herd Redirection Committee's picture

Jon is 'in on it'.  He is way to quick to pass evil off as stupidity.

Tue, 10/29/2013 - 06:19 | 4100635 Notarocketscientist
Notarocketscientist's picture

Jon Stewart is an MSM fuck boy. 

Mon, 10/28/2013 - 15:30 | 4098642 RabbitChow
RabbitChow's picture

Easy, just sell it to the Fed.

Mon, 10/28/2013 - 15:30 | 4098645 Gamma735
Gamma735's picture

That is an awful lot of future wallpaper flooding the world.

Mon, 10/28/2013 - 15:40 | 4098671 moneybots
moneybots's picture

"That is an awful lot of future wallpaper flooding the world."


Ask for rainbow instead of green.

Mon, 10/28/2013 - 15:55 | 4098661 Radical Marijuana
Radical Marijuana's picture

the infamous "liquidity bubble" in the global fungible system is "the most extreme ever in terms of its magnitude" ...


The most basic principle of science, that enables anything to be intelligibly understood at all, is the conservation of energy: that nothing can be created out of nothing, and nothing sent to nothing, EXCEPT FOR "MONEY?" ... Well, actually NOT "money" either, except as an illusory trick, or FRAUD, which has become legalized counterfeiting of the public "money" supply, mostly by private banks, (which even includes most of the central banks) as fiat money, made out of nothing, as debts, which can disappear again when those debts disappear. IF, IF, IF the vast majority of people were not incompetent political idiots then that would not be possible. It is theoretically possible that a fiat money supply could be generated in the public interest. However, what actually happens is that the existing fiat money supply is generated in ways which are designed to primarily benefit private banks, (while, of course, those banksters claim that they are acting in the public interest.)

It is almost impossible to imagine the true scale of the "liquidity bubble" being blown up to literally astronomical sizes! To recombine two of Albert Einstein's observations, human stupidity and compound interest are the two most apparently infinite and powerful forces. The most extreme mathemagical show ever depends upon the vast majority of the viewers not being able to see behind the curtain, and moreover, not wanting to see behind the curtain. The result is that the whole world is being dominated by a state religion, a faith-based monetary system, with misplaced faith, since it operates on the basis of being able to deliberately ignore common sense and the laws of nature, because it is the historical result of the triumph of applying the methods of organized crime, in order to effectively control governments to ruthlessly and relentlessly back up legalized lies, with legalized violence. The cumulative effect of being able to back up such huge lies with violence for so long is that there is now an unimaginably sized global risk of that "liquidity bubble" finally popping. However, since the vast majority of people have already been brainwashed to believe in the biggest bullies' bullshit, and those banksters have also been able to condition the vast majority of people to not want to understand the insane state religion that they are living inside, there are no good things to say about the most probable futures.

Mon, 10/28/2013 - 16:00 | 4098769 falak pema
falak pema's picture

r u Cecil deMille's ghost?

Tue, 10/29/2013 - 00:05 | 4100302 Radical Marijuana
Radical Marijuana's picture

Sorry, falak, but I do not get the meaning of that question, since the obvious answer is "no," and I do not understand whatever other meaning it may have.

Mon, 10/28/2013 - 16:16 | 4098821 respect the cock
respect the cock's picture

Oh great, the pothead is chiming in again.  Clear your fucking calendars. 

Tue, 10/29/2013 - 00:16 | 4100319 Radical Marijuana
Radical Marijuana's picture

Sure, I like the smell of pot, and burn it as incense. However, that has no relevance to the issue at hand in this article, about MOAR "money" being made out of nothing than ever before, on its dizzy spiral of exponential growth to a degree never seen before. I recommend you consider this statement, meaning no disrespect to the cock:

Robert H Hemphill, Credit Manager of the Federal Reserve Bank of Atlanta during the Great Depression, wrote in 1934:

"We are completely dependent on the commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets of complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilisation may collapse unless it becomes widely understood and the defects remedied soon."

Almost all of our money is borrowed into existence; and it is borrowed from banks that never had it to lend! They just create it out of nothing as a data entry on a computer screen. No wonder that the bank buildings usually tend to be the biggest buildings in most cities. What an astonishing way to make money, OUT OF NOTHING! In that context, it should not be a surprise that hemp, the single best plant on the planet for people, for food, fiber, fun and medicine, got rebranded by the puppet politicians that the banksters control to be called "marijuana, that is almost as bad as murder." The pot plant's problems are the single simplest symbol, and most extreme example, of everything else that is happening inside of a society controlled by its biggest gangsters, the banksters.

Mon, 10/28/2013 - 15:37 | 4098664 venturen
venturen's picture

Next in the Hamptons for entertainment....the wealth will build private coliseums where they can feed the poor to lions or battle to the death other for amusement. Remember laws don't apply to people like Dimon and Corzine. It is getting boring just stealing their livelihoods, houses and wealth. In the MOAR here and now....they need more visceral entertainment. I mean rockets, yachts, maisons can only be so entertaining. Naturally this will evolve to small army's of people ala "Hunger Games" to battle each other for scraps of food or job at Goldman. 



Mon, 10/28/2013 - 15:42 | 4098683 NOTaREALmerican
NOTaREALmerican's picture

All hail the mighty job creators!

Mon, 10/28/2013 - 15:38 | 4098666 heinrich6666
heinrich6666's picture

I lived in the Hamptons. I worked with one black chick who was paid by some rich fuck just to sit at his dinner table topless.

Mon, 10/28/2013 - 15:45 | 4098701 Chump
Chump's picture

And you worked with her, eh?  What was your job title??

Mon, 10/28/2013 - 16:04 | 4098781 falak pema
falak pema's picture

duster of black boobs. There are NO menial jobs.

Mon, 10/28/2013 - 22:28 | 4100038 monad
monad's picture

Happy hunting. 

Mon, 10/28/2013 - 15:40 | 4098676 SubjectivObject
SubjectivObject's picture

JPM .... you say ...

Hmmmmm ...

I don't claim to know what's going on, but

I feel like I'm being played.

Mon, 10/28/2013 - 15:41 | 4098681 SillySalesmanQu...
SillySalesmanQuestion's picture

Really... they're just figuring this out?

Mon, 10/28/2013 - 15:44 | 4098691 jtz5
jtz5's picture

Did you see this?  Just disgusting the level of corruption we have reached...and to not consider any other bids, what a joke!

Revealed: Michelle Obama's Princeton classmate is top executive at firm that that built disastrous Obamacare website after being awarded no-bid $93m contract

  • Michelle Obama’s Princeton classmate is an executive at the company that built Obamacare website
  • Toni Townes-Whitley is senior vice president at CGI Federal which earned contract to build the site. She joined in May 2010
  • The women are both members of the Association of Black Princeton Alumni
  • The Department of Health and Human Services reviewed only CGI’s bid for the Obamacare account even though four companies submitted bids
  • CGI became an approved government vendor in 2007

The Obama administration has been accused of cronyism after it was revealed Michelle Obama's Princeton classmate is an executive at the company contracted to build the beleaguered Obamacare website.

Toni Townes-Whitley is senior vice president at CGI Federal, the U.S. arm of a Canadian company which won the no-bid contract for the problem-plagued website.

Townes-Whitley, from the Princeton class of ’85, and Michelle Obama are members of the Association of Black Princeton Alumni, according to The Daily Caller.

Earlier this month, Washington Examiner reported the Department of Health and Human Services Centers for Medicare and Medicaid handed CGI Obamacare account without putting the contract out to competitive tender.

It has since been revealed four companies submitted bids, but only CGI was considered for the $93 million contract.

Read more:

Mon, 10/28/2013 - 15:52 | 4098729 NOTaREALmerican
NOTaREALmerican's picture

Re:  Did you see this?

I know this will be a huge shock to ya, but did you ever wonder WHY the Red and Blue Team spent 6 Billion dollars buying elections in the 2012 elections cycle?

Here's a hint.  It's NOT because they love "da people" so much. 

It's because it was a 6 billion dollar investment in an organization the spands 2 trillion dollars / year on stuff.   

Mon, 10/28/2013 - 16:48 | 4098963 SubjectivObject
SubjectivObject's picture

6 bil. / 2 tril = 0.3%

Mon, 10/28/2013 - 15:48 | 4098710 ...out of space
...out of space's picture

stop print- deflation colapse

print moar -hyperinflation

but the power that be already know that, and they just wait which force ( inflation, deflation) will win. and not matter what outcome will be, they already got plan for next step. coz destroy everything and start all over again is nothing new.


Mon, 10/28/2013 - 15:52 | 4098726 yogibear
yogibear's picture

Of course the Gang of 12 of the Fed would rather kill the dollar and hyperinflate.

Mon, 10/28/2013 - 15:54 | 4098734 kurzdump
kurzdump's picture

Deflation would not lead to collapse - not for USA. It would cause all the USD all over the world to come roaring back into the USA causing hyper inflation and collapse.

Mon, 10/28/2013 - 17:54 | 4099138 Herd Redirectio...
Herd Redirection Committee's picture

Thats why its called Ka-Poom.   Deflation initiates the (hyper) inflation.  Can you imagine what that madman Bernanke would do if the dollar INCREASED in strength?  The answer is, of course, more cowbell.

Mon, 10/28/2013 - 17:57 | 4099149 Herd Redirectio...
Herd Redirection Committee's picture

For people wondering why it doesn't end in deflation, its because the US gov't would be effectively destroyed in the event of deflation.  Not the nation.  Not the currency, but the government.

So that makes it an 'undesireable' outcome.

Deflation hurts the biggest debtors.  In other words, it hurts the cronies of the mega rich (the cronies are highly leveraged, the megarich not so much)  and it hurts governments.   When calculating the national debt, don't forget those unfunded liabilities...

Mon, 10/28/2013 - 15:51 | 4098718 yogibear
yogibear's picture

Janet Yellen and your 12 member Fed Keynesian parrots can all join in for the massive debt fest of $1 trillion/month QE. It should really kill the dollar and boost stocks.

Mon, 10/28/2013 - 16:02 | 4098778 Serfs_Up
Serfs_Up's picture

Marc is that you?!?!


Love your work!

Mon, 10/28/2013 - 15:52 | 4098727 Duc888
Duc888's picture

I'm guessing this will be an involuntary exercise in sphincter stretching for the muppets sometime in the near future.

Mon, 10/28/2013 - 15:53 | 4098731 Serfs_Up
Serfs_Up's picture

Mrs DebtFire has it ALL under control...don't worry

Mon, 10/28/2013 - 15:55 | 4098745 falak pema
falak pema's picture

Bandar el Bush says : "the Syrian debacle, drop of Pax americana's pants to their knees, is the most extreme political bubble resulting from imperial  Hubris gone soft. Never have so many abandoned so much to please so few in effete Congress. I am ashamed of what Churchill's ghost might say of this, as he never pulled his pants down except to pee. I am ashamed of America's blatant abandonment of its reputation of being hardest maccho in Dodge. If you lose your Wyatt Earp image you are toast and we Sauds don't want to be butter on that burnt piece of stale bread. Over and out! "

Now JPM, lead Wasp establishment, scion of all that Pax Americana stands for, says : "we have injected more derivative fiats than iceberg ice to sink the Titanic. We will go down and you cronies with us. And its all the fault of those "other" clowns; Sandy Weill and Robert Rubin of the squid brotherhood, who were so Billy the Kid and fast on the draw-- singing " It's the economy stupid!"

Now all hell will break loose. 

Isn't life an open book, if you know the source code, you can read between the lines and say :  as human nature never changes, history is a repeat; or if you like a recurrent rape of the innocent. 


Mon, 10/28/2013 - 18:11 | 4099189 disabledvet
disabledvet's picture

"Wars never end. But sometimes they don't begin either." (I just made that up in case you were wondering.) Very interesting the study of "alternative history" (or "timelines" as they are called.) I would argue we have had two of the most significant ones ever this year. Syria is obviously one. Can you guess the other?

Mon, 10/28/2013 - 16:03 | 4098779 pupdog1
pupdog1's picture

Bernanke isn't a total moron--he knew when to bail.

Mon, 10/28/2013 - 16:05 | 4098792 heinrich6666
heinrich6666's picture

Personally, I love how an iconoclast's website like ZH is full of herd-mentality schmucks who pride themselves on being outsiders -- yet all copy each other with the same mantras: I love von Mises! I love gold!

Guess what, fags: the guvment will confiscate your gold. And Austrian economics is not an empirical science -- just another theology marginally more correct in its intuitions than, say, neoclassical economics.

As for WilliamBanzai: he is an asshole. Or: what Photoshop represents to sixty year olds.

Mon, 10/28/2013 - 16:18 | 4098840 AlaricBalth
AlaricBalth's picture

Consider yourself a "lite" version of a thinking human being.

Mon, 10/28/2013 - 16:45 | 4098895 Quinvarius
Quinvarius's picture

Gold shorts are pretty bitter these days.

They will confiscate your stocks before they ever make the rich give up their gold.  The rich are making the rules and they don't want paper to store their wealth in a currency collapse. You really need to read up on the Roman Hyperinflations and Socialism.  Or, all you have to do is look just south of the border or back a few years in the USA.  The government takes and/or ruins companies.  

I could go on and on in this post.  The short version is learn history or be roadkill.

Repeated hyperinflations, not just one, along with economy crushing taxes, are coming.

Mon, 10/28/2013 - 17:59 | 4099155 Herd Redirectio...
Herd Redirection Committee's picture

I love the idea that people with guns (and ammo) and gold are somehow the low-hanging fruit, and their gold is in danger of confiscation.

Hello, Bernanke is running the money-printer 24-7, stealing your wealth in broad daylight, and you are worried about some hypothetical confiscation?  Don't be the low-hanging fruit.

Mon, 10/28/2013 - 16:46 | 4098943 ebworthen
ebworthen's picture

" 'Trip-trap, trip-trap' who is trip-trapping over my bridge?"

Mon, 10/28/2013 - 18:12 | 4099194 forwardho
forwardho's picture

Don't feed the fucking Troll with down votes!

Where I stick my Prick has no bearing on any matter here.

Fags, really?

Try logic, or better yet, go away.

Mon, 10/28/2013 - 19:19 | 4099422 robertocarlos
robertocarlos's picture

I don't have any PM but I wish I had the conviction to possess PM. My brain can't fathom that the govt IS going to screw all of us cause they blew it. I'll be saying this while the stored are being looted for the final time. "This can't be happening".

Mon, 10/28/2013 - 16:06 | 4098794 sschu
sschu's picture

Spend a trillion $$ this year and the economy is barely chugging along.  

Since the marginal effect of debt creation (in the US, world wide?) is very low or even negative, where does this lead? At some point the debt creation will voluntarily or involuntarily be stopped.  If early enough we face a deflationary depression that makes the 1930s look like a boom.  If too late, we end up with a Hitler-esque dictator.

Our biggest strength is our biggest vulnerability, the USD as the reserve currency.  We are like the petulant child with no boundaries.  Once reality occurs however, the pain is excruciating.

As Mises says:

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.



Mon, 10/28/2013 - 16:08 | 4098800 Surging Chaos
Surging Chaos's picture

Hey JPM,



Oh wait, that's right...

Mon, 10/28/2013 - 16:16 | 4098829 buzzsaw99
buzzsaw99's picture

They should know, they worked hard to blow that bubble.

you're soaking in it...

Mon, 10/28/2013 - 16:17 | 4098835 assistedliving
assistedliving's picture

$66T?  no worries.  JPM already hedged $16T of it.  all good

besides, thats only $10k per humanoid...still got room.


Mon, 10/28/2013 - 16:40 | 4098922 theprofromdover
theprofromdover's picture

Perhaps the honorable Holder might mosey along down to Jamie's New York underground vault, and take fines in gold bullion.

Sounds like JPM is hypothecarising gold down in their basement just now. They claim to be shipping in tonnes and tonnes of the stuff, and unfortunately, since there appears to be 50 owners for every ounce, suggests it won't be there when you need it.

Mon, 10/28/2013 - 17:30 | 4099077 Jethro
Jethro's picture

Wait, your proposing that Eric Holder do something....useful? What an alien concept.

Mon, 10/28/2013 - 16:41 | 4098925 theprofromdover
theprofromdover's picture

(since money is so cheap)

Mon, 10/28/2013 - 16:47 | 4098953 Dr.Engineer
Dr.Engineer's picture

and the multiplier on the money when leveraged against the stock market is 5x, 10x, 20x, 30x?


Mon, 10/28/2013 - 16:55 | 4098954 medium giraffe
medium giraffe's picture

Is that the same 'excess liquidity' that wheelbarrow owners experienced in Germany between 1921 and 1924 whilst shopping for bread?

Mon, 10/28/2013 - 16:57 | 4098989 Whiner
Whiner's picture

Fiat, fiat everywhere but not a dollar to spend

Mon, 10/28/2013 - 17:01 | 4099004 Took Red Pill
Took Red Pill's picture

Next comes the big "POP"

Mon, 10/28/2013 - 17:22 | 4099054 pupdog1
pupdog1's picture

This from the filthy whores who have trillions in massively unstable interest rate-sensitive toxic derivatives, much of which has been moved to "super-creditor" depositor status with the FDIC, poised to wipe out all the deposits of all Americans?


Fuck you, Dimon. Just Fuck You.

Mon, 10/28/2013 - 17:28 | 4099075 Jethro
Jethro's picture

Its like the whole world playing musical chairs, with no chairs.

Mon, 10/28/2013 - 17:40 | 4099102 CHX
CHX's picture

We're all being FED, but there is no spoon.

Mon, 10/28/2013 - 18:05 | 4099175 disabledvet
disabledvet's picture

"My name is Jamie Dimon and I have now taken possession of your State of Illinois along with other various bonding agents throughout the nation. We look forward to supplying you with all your current and future financing needs whatever they may be. Have a nice day."

Mon, 10/28/2013 - 18:08 | 4099182 robertocarlos
robertocarlos's picture

We're so fooked it might be as good idea to buy used dead batteries or anything you can see and feel with your excess cash.

Mon, 10/28/2013 - 18:14 | 4099202 Dre4dwolf
Dre4dwolf's picture

i like how they try and act surprised when they are the ones who created the bubble in the first place through theft and fraud.


3 trillion new dollars doesn't just appear out of nowhere, someone has to make it up.

Mon, 10/28/2013 - 22:30 | 4100045 monad
monad's picture

That photo should be titled. "The Magic Flute"

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