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Chart Of The Day: The Fed (And Friends) $10 Trillion Visible Hand
...and the 'strategists' think these 2 lines will inevitably converge back into a Nirvanic status quo of leveraged Utopians as if nothing ever happened...
$10 trillion and a 0.75% average rate for the world...
Yeah that'll end well!
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When that goes parabolic, it's game over.
Have you taken a look at the outstanding DEBT for the same organizations...?
exponential equations are indeed a bitch.
But I digress, the U.S.S.A. is a consumer economy.
How's the consumer doing anyway...
http://research.stlouisfed.org/fred2/graph/?id=TOTALSL
fuck...
It already went parabolic. Particularly in the shadow banking sector. Been rolling over for years. That is what is being covered up. A financial black hole.
Just a matter of how it manifests itself in the reality it cannot avoid forever.
Forgot the PBOC. I can't believe they didn't include the PBOC, since it has printed more money out of thin air than the other four together.
LOP - I posted a link yesterday to little fanfare about an AP article that was waaaaaayyyyy more truthy that I have seen before. It talked specifically about physical population growth being in part (at least) required to sustain economic growth.
That should have set of some alarms for even average people (J6P that is).
Interesting. There was an article today in the local Sacramento paper about this topic. Probably the same one. I was surprised to see it.
Lot's of articles lately also about declining birth rates too. The timing and subject matter all just seems to coincidental. Especially coming from the MSM which again and again just seems to tow the line for the status quo.
Something very wicked this way comes. Prepare.
Happy 4.26 trillion USD Liability Federal Reserve Balance Sheet Day, everyone!
News Headline Summary
http://portal.ransquawk.com/headlines/us-fed-balance-sheet-liabilities-r...
US Fed balance sheet liabilities rose to USD 4.260trl (week ended May 7th) vs. Prev. USD 4.253trl
20:30 - Fixed Income - Source: RTRS
Pretty vanilla should-be-totally-obvious-to-everyone article, but indeed a bit truthier than usual MSM fare.
I loved this part:
"Now this secret fuel of the economy, rarely missing and little noticed, is running out.
[...] we're no longer getting a tailwind [...]
You're going to create fewer jobs. ... All else equal, wage growth will be slower."
Hence, truthy, rather than true. No mention of energy (including food). Same cargo-cult causality-reversing infinite energy infinite resources infinite growth infinite capacity infinite substitutability economic bullshit as usual - if you make more humans [a miracle occurs and] the economy will just grow. Ignore the fact that essentially the whole world currently has surplus "labor capacity" and by implication, surplus population (but they can be good consumers too, thanks to welfare, so it's all good). Now they're going to blame low and negative wage growth on a SHRINKING surplus labor pool? Remember, they're not talking about anything (such as aggregate demand or full- time labor force) actually contracting, merely not growing enough. Will the insanity ever end??
The sheeple don't read articles that expose the truth about what is going to happen.
FOMO and BTFD rule.
Sorry chief. We where fucked in 2008.
This shit is on a whole 'nother level.
FUBAR.
The consumer effect is coming from inequality. Inequality is coming from QE, accelerating the unfairness of the current Keynessian system. The need for QE is coming from globalization and demographics. In summary, there is no solution to the quandry in front of us.
In order for green to go up, blue must fall. De world es broke!
The end game will be both of them going hyperbolic simultaneously.
That's exactly right...it will snap like a rubber band but there will be back and forth aftershocks that will send rates and inflation up and down for years on end! It will literally destroy tens of millions of people's lives over the course of decades.
Very interesting how the one line goes up, and the other line goes down!
lol you sound like that decective puppet on sesame street trying to find the letter M who has cleverly turned himself upside down pretending to be a W
'one up, one down, one up....'
Kinda smells like you humans are all waaaaay fukked !
the fuckers:
a) think their shit doesnt smell and they can play god
b) are purposely setting up the biggest crash in history
"think their shit doesn't smell"
It doesn't if they buy at Whole Foods!
once this line get into the sky its not visible any more
here problem solve
mission accomplished
Now that's a ponzi motherfuckers...
And only Madoff is in prison.
Oh yeah, and I forgot to include that film maker who made the video that was "responsible" for Benghazi.
It's only illegal when you do it.
Green line = 'Wealth Effect"
Blue line = "Poverty Effect"
The final death cross, and we're going to live through it. Meanwhile stupid BTFD sheep think all is well.
Don't think think it is just as likely we will only live TO it? Through it sounds optimistic.
This chart more than any I have seen, shows how we are getting crushed. I still can't believe the Revolt has not begin yet. Are we all going to go to our graves quietly, without even a swing at the fuckers who are doing this ???
What do you mean by "crushed"? Who is getting crushed?
The top 20% are doing great, the bottom 80% are patriots. It's the perfect system. Why would anybody be revolting?
It's easy to make the two lines converge. Just mark the bank's assets to market.
...and then there's the possibility that there is no symbiotic relationship between the two lines and they shouldn't necessarily appear on the same graph.
If the relationship, if there ever was one, does not exist, then the Assets by all CBs can rise for ever, level off, or drop and and interest rates can remain at current levels equally long, or rise or fall independently.
These last few years show interest rates UNHITCHED from Assets. While Assets has risen constantly since 2009 interest rates have remained steady.
It's a mistake to think that they MUST converge.
Then why not end QE and raise rates?
The end run of your argument is that no one has to pay their debts.
$100,000 into my checking account every month ought to do it. I'll pay 15% tax and tip well.
You're correct. It's a chart that signifies nothing. It's there to generate page clicks from the un-illuminati.
.
it's okay... they have a plan...
Ever see the movie Hunger Games?
Nope, but I've seen Titanic and The Road.
pods
Can't remember if Titanic had a sequel or not?
I think it was called "Lusitania!"
If only one of those lines were red...think of the tag line possibilities.
That's right, use The People's money to pay them next to nothing for their work or savings.
Euphamisms such as "easing" and "supportive rates" instead of "blowing your money" and "fucking you up the ass".
God-damned forces of evil are what Central Banks are.
I think I'll go home tonight and tell my children they're fucked.
And tell your children to tell the same thing to their children, and so forth, and so forth.
America, no those countries still have something to lose. When the bread and circus stops, thats when it gets fubar.
Where's Al Gore and his contraption.....I've seen this line to the sky thing before.
But for some reason Al, decides to not care about this one....hmmm...which one is more likely to create misery and cost human lives.
http://www.youtube.com/watch?v=9tkDK2mZlOo
keep an eye on the DXY. Someone(s) been offloading dollars.
Today around 8:30am appears someone "bought" a lot of dollars. Belgium? Britian? Japan? (insert favorite western nation that will join the systemic FIAT collapse >HERE<).
Of course it will give it 2000 years os so!
Once this goes to the end, and people realize who stands behind that, and to whom all these debts are actually paid back, the Second Fire will burn , the Second Sun will shine.
As much as I hate THEM, I will be helping them, like my grandparents did (I'm from Poland).
But there will be too much rage against THEM . Again..
Never before has mankind diverted such a large percentage of wealth into intangible products or goods. I contend this is the primary reason that inflation has not become a major economic issue.
The modern economy is loaded with interwoven contracts reeking of contagion. This means many intangible investment could suddenly become very illiquid.
If faith drops in these intangible "promises" and money suddenly flows into tangible goods seeking a safe haven inflation could soar even as debts go unpaid and promises are left unfilled. This could really shake up the world, more on this subject in the article below.
http://brucewilds.blogspot.com/2014/04/inflation-seed-of-economic-chaos.html
It looks swell to me. Banks save. See their assets go up? So their holding assets, saving. That's good. Imagine how much more they're saving buy holding on to all that interest they used to pay you. See, their saving again. Think of it like this: they're not taking or stealing they're "HOLDING" it.
Its just like the guy out front of my liquor store he asks everybody, "Say, blood, let me hold five dollas."
So doesn't that make you feel better. They're holding it. That's all.
How is it in your parent's basement?
Holding it my ass! money deposited in a bank is an unsecured loan! banking 101. never forget that especially as we economically cross the event horizon into the twilight zone.
Janet Yellen has been head of the Federal Reserve bank long enough that we no longer need to speculate as to her job performance. As we begin to critique her ability to perform we must remember perception is often just as important as reality. Another issue that comes into play is how you stack up or compare to the person who held the position previously, this often extends to style as much as it does to substance.
As expected it appears Janet Yellen has chosen to take us down the same the rabbit hole as Bernanke on a journey to prove that if we just continue doing what is not working, all will turn out fine. More on Yellen as the head of the Federal reserve in the article below.
http://brucewilds.blogspot.com/2014/05/yellens-job-critique.html