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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_ConanTheLibertarian_'s picture

When that goes parabolic, it's game over.

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...



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.

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.

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).

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.   

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.

LawsofPhysics's picture

Something very wicked this way comes.  Prepare.

TruthInSunshine's picture

Happy 4.26 trillion USD Liability Federal Reserve Balance Sheet Day, everyone!

News Headline Summary

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

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??

Eyeroller's picture

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

FOMO and BTFD rule.

Luckhasit's picture

Sorry chief.  We where fucked in 2008. 

This shit is on a whole 'nother level. 


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.

nope-1004's picture

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

hungrydweller's picture

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

davinci7_gis's picture

That's exactly 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.

ZippyBananaPants's picture

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

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....'

Rainman's picture

Kinda smells like you humans are all waaaaay fukked !

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

Fuh Querada's picture

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

dirtyfiles's picture

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

here problem solve

LawsofPhysics's picture

Now that's a ponzi motherfuckers...

Eyeroller's picture

And only Madoff is in prison.

Eyeroller's picture

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

vie's picture

It's only illegal when you do it.  

gdiamond22's picture

Green line = 'Wealth Effect"

Blue line = "Poverty Effect"

Carpenter1's picture

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

TheReplacement's picture

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

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 ???

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?

kentmills's picture

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

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. 

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.

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.

Sudden Debt's picture

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

centerline's picture

Ever see the movie Hunger Games?

pods's picture

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


medium giraffe's picture

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

StychoKiller's picture

I think it was called "Lusitania!"

ptoemmes's picture

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

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.

Agent P's picture

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

Eyeroller's picture

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

Luckhasit's picture

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

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.

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<).

starman's picture

Of course it will give it 2000 years os so!