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Chart Of The Day: The Fed (And Friends) $10 Trillion Visible Hand

Tyler Durden's picture




 

...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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Thu, 05/08/2014 - 16:32 | 4741043 _ConanTheLibert...
_ConanTheLibertarian_'s picture

When that goes parabolic, it's game over.

Thu, 05/08/2014 - 16:41 | 4741058 LawsofPhysics
LawsofPhysics's picture

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...

Thu, 05/08/2014 - 16:41 | 4741070 centerline
centerline's picture

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.

Thu, 05/08/2014 - 19:56 | 4741673 spine001
spine001's picture

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.

Thu, 05/08/2014 - 16:50 | 4741091 centerline
centerline's picture

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).

Thu, 05/08/2014 - 16:56 | 4741111 NOTaREALmerican
NOTaREALmerican's picture

Interesting.   There was an article today in the local Sacramento paper about this topic.  Probably the same one.   I was surprised to see it.   

Thu, 05/08/2014 - 17:00 | 4741121 centerline
centerline's picture

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.

Thu, 05/08/2014 - 17:05 | 4741141 LawsofPhysics
LawsofPhysics's picture

Something very wicked this way comes.  Prepare.

Thu, 05/08/2014 - 17:29 | 4741203 TruthInSunshine
TruthInSunshine's picture

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

Thu, 05/08/2014 - 20:10 | 4741718 Totentänzerlied
Totentänzerlied's picture

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??

Thu, 05/08/2014 - 17:08 | 4741151 Eyeroller
Eyeroller's picture

The sheeple don't read articles that expose the truth about what is going to happen.

FOMO and BTFD rule.

Thu, 05/08/2014 - 17:40 | 4741240 Luckhasit
Luckhasit's picture

Sorry chief.  We where fucked in 2008. 

This shit is on a whole 'nother level. 

FUBAR.

Thu, 05/08/2014 - 20:02 | 4741668 spine001
spine001's picture

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.

Thu, 05/08/2014 - 16:45 | 4741072 nope-1004
nope-1004's picture

In order for green to go up, blue must fall.  De world es broke!

Thu, 05/08/2014 - 16:45 | 4741078 hungrydweller
hungrydweller's picture

The end game will be both of them going hyperbolic simultaneously.

Thu, 05/08/2014 - 17:29 | 4741202 davinci7_gis
davinci7_gis's picture

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.

Thu, 05/08/2014 - 16:33 | 4741045 ZippyBananaPants
ZippyBananaPants's picture

Very interesting how the one line goes up, and the other line goes down!

Thu, 05/08/2014 - 16:57 | 4741114 Squid-puppets a...
Squid-puppets a-go-go's picture

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....'

Thu, 05/08/2014 - 17:07 | 4741046 Rainman
Rainman's picture

Kinda smells like you humans are all waaaaay fukked !

Thu, 05/08/2014 - 16:35 | 4741050 101 years and c...
101 years and counting's picture

the fuckers:

a) think their shit doesnt smell and they can play god

b) are purposely setting up the biggest crash in history

Thu, 05/08/2014 - 16:39 | 4741063 Fuh Querada
Fuh Querada's picture

"think their shit doesn't smell"
It doesn't if they buy at Whole Foods!

Thu, 05/08/2014 - 16:35 | 4741052 dirtyfiles
dirtyfiles's picture

once this line get into the sky its not visible any more

here problem solve

Thu, 05/08/2014 - 16:54 | 4741105 timmeh
timmeh's picture

mission accomplished

Thu, 05/08/2014 - 16:35 | 4741054 LawsofPhysics
LawsofPhysics's picture

Now that's a ponzi motherfuckers...

Thu, 05/08/2014 - 17:09 | 4741155 Eyeroller
Eyeroller's picture

And only Madoff is in prison.

Thu, 05/08/2014 - 17:10 | 4741160 Eyeroller
Eyeroller's picture

Oh yeah, and I forgot to include that film maker who made the video that was "responsible" for Benghazi.

Thu, 05/08/2014 - 18:42 | 4741465 vie
vie's picture

It's only illegal when you do it.  

Thu, 05/08/2014 - 16:38 | 4741059 gdiamond22
gdiamond22's picture

Green line = 'Wealth Effect"

Blue line = "Poverty Effect"

Thu, 05/08/2014 - 16:45 | 4741080 Carpenter1
Carpenter1's picture

The final death cross, and we're going to live through it. Meanwhile stupid BTFD sheep think all is well.

Fri, 05/09/2014 - 01:58 | 4742541 TheReplacement
TheReplacement's picture

Don't think think it is just as likely we will only live TO it?  Through it sounds optimistic.

Thu, 05/08/2014 - 16:46 | 4741083 Seasmoke
Seasmoke's picture

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 ???

Thu, 05/08/2014 - 16:53 | 4741104 NOTaREALmerican
NOTaREALmerican's picture

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?

Thu, 05/08/2014 - 17:30 | 4741207 kentmills
kentmills's picture

It's easy to make the two lines converge.  Just mark the bank's assets to market.

Thu, 05/08/2014 - 16:46 | 4741085 Comte d'herblay
Comte d'herblay's picture

...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. 

Thu, 05/08/2014 - 17:06 | 4741144 ebworthen
ebworthen's picture

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.

Fri, 05/09/2014 - 06:44 | 4742744 SAT 800
SAT 800's picture

You're correct. It's a chart that signifies nothing. It's there to generate page clicks from the un-illuminati.

Thu, 05/08/2014 - 16:52 | 4741097 Georgia_Boy
Georgia_Boy's picture

.

Thu, 05/08/2014 - 16:51 | 4741101 Sudden Debt
Sudden Debt's picture

it's okay... they have a plan...

Thu, 05/08/2014 - 16:55 | 4741109 centerline
centerline's picture

Ever see the movie Hunger Games?

Thu, 05/08/2014 - 17:28 | 4741198 pods
pods's picture

Nope, but I've seen Titanic and The Road.

pods

Thu, 05/08/2014 - 17:44 | 4741254 medium giraffe
medium giraffe's picture

Can't remember if Titanic had a sequel or not?

Fri, 05/09/2014 - 01:22 | 4742500 StychoKiller
StychoKiller's picture

I think it was called "Lusitania!"

Thu, 05/08/2014 - 16:59 | 4741118 ptoemmes
ptoemmes's picture

If only one of those lines were red...think of the tag line possibilities.

Thu, 05/08/2014 - 17:01 | 4741123 ebworthen
ebworthen's picture

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.

Thu, 05/08/2014 - 17:02 | 4741131 Agent P
Agent P's picture

I think I'll go home tonight and tell my children they're fucked. 

Thu, 05/08/2014 - 17:12 | 4741165 Eyeroller
Eyeroller's picture

And tell your children to tell the same thing to their children, and so forth, and so forth.

Thu, 05/08/2014 - 17:09 | 4741157 Luckhasit
Luckhasit's picture

America, no those countries still have something to lose.  When the bread and circus stops, thats when it gets fubar.

Thu, 05/08/2014 - 17:16 | 4741171 The_Dude
The_Dude's picture

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

Thu, 05/08/2014 - 17:21 | 4741182 caShOnlY
caShOnlY's picture

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<).

Thu, 05/08/2014 - 17:44 | 4741245 starman
starman's picture

Of course it will give it 2000 years os so! 

Thu, 05/08/2014 - 19:27 | 4741588 pies_lancuchowy
pies_lancuchowy's picture

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..

Thu, 05/08/2014 - 23:59 | 4742341 AdvancingTime
AdvancingTime's picture

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

 

 

Fri, 05/09/2014 - 05:54 | 4742693 kurt
kurt's picture

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?

Fri, 05/09/2014 - 07:05 | 4742765 Last of the Mid...
Last of the Middle Class's picture

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.

Fri, 05/09/2014 - 08:35 | 4742874 AdvancingTime
AdvancingTime's picture

 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

Do NOT follow this link or you will be banned from the site!