"X" Marks The Spot Of The Death Of Monetary Policy

Tyler Durden's picture

$1 Trillion worth of central banking money printing around the world just does not seem to go as far as it used to... behold, the death cross of faith in monetary policy.


Given this chart, it is obvious what we need... more money-printing... </sarc>


(h/t @Not_Jim_Cramer )

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Stuck on Zero's picture

That red line is starting to turn up.  I can see it.  Moar money!


Pladizow's picture

Well, more drugs will only make you "higher", accept when it kills you!

Sudden Debt's picture

don't you think they would put a disclosure warning on drugs if it could kill ya?

Greenskeeper_Carl's picture

"Come on, Ishmael, who do you think has done more research on if smoking is safe than the good folks at Phillip-Morris. You can't smoke if you're dead"


CarrierWave's picture

But, but... none of that matters for those who want to profit from the rising markets.

Most people do not care about the above analysis and they are the ones who buy and push the markets higher.

That's where you want to be. Not follow the 'truth' that only few accept.

Stay on the sidelines and miss the rising markets

2014 will see the markets heading higher still courtesy of Central Banks support and also because it's an election year.

Does anyone really think that the Gov will allow the markets to drop more than 3-5% in an Election year?

Also, as long as Interest rates stay as low as they are, stocks will keep going higher.

The FED got the hang of how to keep the markets going higher and they are the ones at the Helm. Not the distinguished writers of the Articles posted on ZH.

philipat's picture

It's not that I disagree but if both those lines started at 100 and were plotted for percentage change, the difference is much less dramatic. But the fundamental point remains. Shame that fundamentals are dead.

max2205's picture

As someone said. ...it could be worse

the not so mighty maximiza's picture

at least they got the red to flat line

Save_America1st's picture

"flat line" being the operative term there... ;-)

NotApplicable's picture

Likely a "set by decree" limit function.

eclectic syncretist's picture

First someone has to have a GOOD idea, and then someone has the take the intiative to implement it, quite often with the assistance of borrowed capital.  But if there aren't any GOOD ideas, and no initiative, and no one is lending, it really doesn't matter how much money exists.

And there's really the rub to it all.  The fed doesn't have any good business ideas, and they haven't been able to make the banks lend money after they give it to them, so they are basically impotent.

Edit: I forgot to say that the Fed certainly does have the power to make things worse.  In fact, injecting unearned capital into the system is conceptually flawed at the inception, so odds are they will usually make things worse when they do anything.

LawsofPhysics's picture

"But if there aren't any GOOD ideas, and no initiative, and no one is lending, it really doesn't matter how much money exists." -  Correct, moreover, money is not capital.  Capital would imply real work and something of real value.  If you can conjure money out of thin air with no work, it has no value.

hedge accordingly.

Grande Tetons's picture

Newton, smart enough to smart out a falling apple but not smart enought to spot a bubble. 

eclectic syncretist's picture

Agreed!  The fed issues counterfeit capital in the form of Reserve Debt Notes.  The FRN has no TRUE value, as it is only a mirage, a will-o-the-wisp, an eidolon whose value is etirely reliant upon the unstable platform of human perception.  If we traveled to distal worlds where aliens used air-filled balloons as money, with the size proportional to the value, would they be crazier than we are?

SAT 800's picture

Interesting question; it could probably occupy a University Philosophy dept. for three or four years. they wouldn't have any answer by then, but they'd have the terms defined. My answer would be; "a little bit crazier, but not a lot crazier".

Caveman93's picture

Yup agreed as well. If I hear or see the word "INNOVATION" one more time... I will vomit. Obumer just gave NC State $70 million to innovate something there is no demand for. Hitleresk ...oh yeah. Just cut a check to NC State for $70 million and you "create prosperity". Nice.

CURWAR2012's picture

Why not add Bank of Chins, it would need to be a log scale?

Sudden Debt's picture


Grande Tetons's picture

I often wondered why my BA in Economics is not a BSc.  I wonder no more. 

Imagine the Chemistry profession if they kept changing the periodic table every so often. I guess that would be a little unsettling. 

Fuck that, Sodium....is off the table. Piece of shit does not agree with my forecast. 

LawsofPhysics's picture

With formal training in engineering, I LOL-ed at your post.  Who really cares, tell me how to front-run this disaster.

Frozen IcQb's picture

Economics is definitely NOT a Science.

That’s why it’s in the Art Faculty...along with an “Ugly” Picasso.

JohnG's picture

Learn to grow some food.

LawsofPhysics's picture

We farm almost 35,000 acres.  Pretty good at that already.

BandGap's picture

I have worked on farms, planted gardens all my life. That many acres boggles my mind.

Imagery's picture

You obviously don't get out much.  TPTB changed that Bachelors of Arts to Bachelors of Authoritarianism years ago!

Had something to do with Political Science majors I hear.

BandGap's picture

It has to do with variables.

Social Sciences have the one variable that defies statistics from the purer Sciences (such as Chemistry, Physins, Engineering) - the human factor. However, even that can be evaluated on a long enough frequency.


rubearish10's picture

Debt up 10%, GDP down 10%. That seems to be working well. We've clearly upside room to $100T before we get to 0% growth. So, BTATFH!

Cursive's picture


They just keep digging the freaking hole...amazing.

rubearish10's picture

Yes, truly amazing! Whoever's hovering over that Red Button might soon realize the concept of creating debt for growth IS NOT WORKING!! WTF???

wisehiney's picture

BLUE - RED my love, where shall we meet?

RED - BLUE my bitch, FUCK YOU!

frankTHE COIN's picture

They say " Never argue with people that buy ink by the barrel ". But Reichmarks are starting to look like our Future.

Mark123's picture

Keep in mind the "assets" are only a small part of the picture.  The real damage being done is all of the guarantees made by our honorable leaders in government, a complete pass on all accounting standars (report what you like boys), and lending standards that are a complete joke.

In Canada they just added another $120 billion to the amount of mortgages and MBS that the CMHC (Fannie/Freddie/FHA equiv) can buy/guarantee this next year.  Canada is 10% the size of USA so equivilant to $1.2 trillion.  This does not even make the news.

Its like gettting a pay day loan....then getting a limo to drive you is style to the strip club (oh, and driver...let's stop at the 7-11 and grab a couple of hogies and a six pack).


debtor of last resort's picture

Moar copper in the Krugmans. Pardon me, Krugers.

ebworthen's picture

Haven't seen anything die yet, but I'd like to.

seek's picture

Interesting that the CB asset launch coincides with the gold price takedown.

U4 eee aaa's picture

This looks like the blood stream. All that money is going *somewhere* but it is not getting into the rest of the body. Thus, there is a huge blockage somewhere and that pressure is starting to build and build. Either the blockage is going to break down or the artery that is supplying the blood will burst. Either way, this is not going to be good. Things will get very bad very quick

geno-econ's picture

Blue line----global finance industry compensation.
Red line----all other compensation divided by projected global workforce.
Has the world ever experienced a global revolution or perhaps a global currency war ?

LawsofPhysics's picture

"Has the world ever experienced a global revolution or perhaps a global currency war ?" - No, societal and currency collapse has always been regional, people could always move and countries/allies with plenty of resources could always assist.  Bascially, this time is indeed different.

PontifexMaximus's picture

Insert the s&p index, who cares about GDP

wisehiney's picture

Where's that little bitty Precious door? Here comes the gasoline.


LawsofPhysics's picture

Indeed, more propaganda from the status quo as no society/currency has ever collapsed/died because their purchasing power became too strong.


roll the motherfucking guillotines already.

wisehiney's picture

So many assholes, so few guillotines.

q99x2's picture

Its working. The bottom right red line is nearly flat. If they just boost printing we will all be saved.

Kirk2NCC1701's picture

In the modern world of CB and corporate feudalism, where EVERYTHING of value can and is being manipulated, the Austrian Economics theories (here on ZH) can also be "suspended" and be made to "defy gravity".  Maybe not 'forever', but certainly long enough to be useful to TPTB. 

2013 saw gold prices drop 30%, while the S&P went up 30%.  Austrian Economics (on ZH) could not and did not foresee that, but an understanding of (a) Human Nature and (b) the nature of the System might and should have predicted the PM manipulation that occurred in the last 15 months.  How many got cut, trying to catch the falling, gold-plated knife?  How many?  TOO many!  Thanks to the self-serving agents and shills -- who, like sleazy Realtors, proclaim that it's "always a good time to buy!"

If you believe everything you read here, you'd think that the sky will fall anytime now (as it has for the past 4 years).  Although all this stuff is educational, informative and even entertaining, bear in mind that the real world -- manipulated or not -- almost always turns out differently than clever guys predict.  Your daily dose of ZH is good business for its owner, and that's fair enough.  But it ain't "reality", it's not the real world that we all still need to live in.

While the Wealth Transfer Mechanisms roll on, you have to ask yourself:  "How long can I afford to fight the Fed?"  Or is your life just one, "never-ending Mayan Doomsday" of Dec. 21, 2012 that you can't/won't escape from?

Don't be a "one trick pony".  Play heads-up hockey.  Ignore both the Bulls and the perma-Bears.  Stay solvent and diversify your assets.   And don't forget to live, love, and laugh.