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"Cluster Of Central Banks" Have Secretly Invested $29 Trillion In The Market

Tyler Durden's picture




 

Another conspiracy "theory" becomes conspiracy "fact" as The FT reports "a cluster of central banking investors has become major players on world equity markets." The report, to be published this week by the Official Monetary and Financial Institutions Forum (OMFIF), confirms $29.1tn in market investments, held by 400 public sector institutions in 162 countries, which "could potentially contribute to overheated asset prices." China’s State Administration of Foreign Exchange has become “the world’s largest public sector holder of equities”, according to officials, and we suspect the Fed is close behind (courtesy of more levered positions at Citadel), as the world's banks try to diversify themselves and "counters the monopoly power of the dollar." Which leaves us wondering where are the central bank 13Fs?

While most have assumed that this is likely, the recent exuberance in stocks has largely been laid at the foot of another irrational un-economic actor - the corporate buyback machine. However, as The FT reports, what we have speculated as fact for many years now (given the death cross of irrationality, plunging volumes, lack of engagement, and of course dwindling credibility of central planners)... is now fact...

Central banks around the world, including China’s, have shifted decisively into investing in equities as low interest rates have hit their revenues, according to a global study of 400 public sector institutions.

 

“A cluster of central banking investors has become major players on world equity markets,” says a report to be published this week by the Official Monetary and Financial Institutions Forum (Omfif), a central bank research and advisory group. The trend “could potentially contribute to overheated asset prices”, it warns.

 

...

 

The report, seen by the Financial Times, identifies $29.1tn in market investments, including gold, held by 400 public sector institutions in 162 countries.

 

...

 

China’s State Administration of Foreign Exchange has become “the world’s largest public sector holder of equities”, as the report argues is “partly strategic” because it “counters the monopoly power of the dollar” and reflects Beijing’s global financial ambitions.

 

...

 

In Europe, the Swiss and Danish central banks are among those investing in equities. The Swiss National Bank has an equity quota of about 15 per cent. Omfif quotes Thomas Jordan, SNB’s chairman, as saying: “We are now invested in large, mid- and small-cap stocks in developed markets worldwide.” The Danish central bank’s equity portfolio was worth about $500m at the end of last year.

Read more here

So there it is... conspiracy fact - Central Banks around the world are buying stocks in increasing size.

To summarize, the global equity market is now one massive Ponzi scheme in which the dumb money are central banks themselves, the same banks who inject the liquidity to begin with.

That would explain this.

 

That said, good luck with "exiting" the unconventional monetary policy. You'll need it.

 

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Sun, 06/15/2014 - 20:20 | 4859604 Headbanger
Headbanger's picture

Stupid is as stupid does

And you can't fix stupid:
http://www.youtube.com/watch?v=fL6wbsGx9qw

 

 

Sun, 06/15/2014 - 20:22 | 4859615 wee-weed up
wee-weed up's picture

Yep, this will make the coming stock market crash...

A real global economic annihilation!

Sun, 06/15/2014 - 20:23 | 4859625 SafelyGraze
SafelyGraze's picture

when those same CBs buy 29T of goods and services from the companies whose stock they own, the corporate profits are going to shoot to the moon

P/E will go from 50-to-1 down to 5-to-1

and then we will better appreciate the wisdom of having bought all those stocks!

they are the smartest people in the room!

fundamentalz ruul!!!

Sun, 06/15/2014 - 20:29 | 4859635 0b1knob
0b1knob's picture

Does that include Greenpeace's big lose on the Euro fx market.

http://www.maxkeiser.com/2014/06/greenpeace-employee-gambles-in-forex-ma...

Rogue employee or are they just that stupid?

Sun, 06/15/2014 - 20:37 | 4859659 Chris Jusset
Chris Jusset's picture

OMFG ... This is the BIGGEST story in the past 5 years!  ZH WAS RIGHT ALL ALONG!  Everything about the current BUBBLE ECONOMY is totally fucking manipulated.

Sun, 06/15/2014 - 20:38 | 4859667 Bindar Dundat
Bindar Dundat's picture

The market is doomed.  We are fucked.

Sun, 06/15/2014 - 20:40 | 4859672 knukles
knukles's picture

Heh he heh
Lotta Money On The Sidelines!

Sun, 06/15/2014 - 20:46 | 4859691 i_call_you_my_base
i_call_you_my_base's picture

Actually, if you make new money, it makes more sense.

Sun, 06/15/2014 - 20:49 | 4859705 Newsboy
Newsboy's picture

So this means the bubble need never collapse?

How does that work again?

Sun, 06/15/2014 - 20:54 | 4859725 jbvtme
jbvtme's picture

when the time comes to disembowel these reprobates, my question is whether my leatherman will be up to the task

Sun, 06/15/2014 - 21:09 | 4859757 Dr Benway
Dr Benway's picture

And in Australia, a central bank board member is openly bribed by a criminal fund management company. So there's money to be stolen at every point in the system. Check out my blog, now banned in Australia.

http://drbenway.blogspot.com/ncr

Sun, 06/15/2014 - 21:19 | 4859801 The_Prisoner
The_Prisoner's picture

Great job, as usual, Doc.

If they are coming after you, it means you're causing pain.

Sun, 06/15/2014 - 21:40 | 4859846 Keyser
Keyser's picture

No wonder it doesn't matter that tapering of QE is taking place. The Central Banksters have conjured $29T out of thin air and dumped into equities. As Tyler eluded, where are the CB's tax filing on profits/losses? 

 

Sun, 06/15/2014 - 21:54 | 4859888 max2205
max2205's picture

The Danish position couldn't buy the US embassy in Bagdad. ....big wooop

Sun, 06/15/2014 - 22:47 | 4860031 jeff montanye
jeff montanye's picture

well, speaking of big wooops, the total value of the world's stock markets is under 60 trillion,  http://www.aei-ideas.org/2013/01/world-stock-market-capitalization-at-54... the central banks own more than half, in a sense (we are not sure, at least i'm not, who their intermediaries are).  

but like knukles said, there's a lot of money still on the sidelines. and, at this rate, there always will be, since they can make it at whim.  don't even have to grow a money tree.

where in the substance of the mind of god (hat tip to thornton wilder) is buying the stocks of private corporations (for five fucking years) an apparently existential part of the mission of this republic?  oh brave new world that hath such people in it.

Sun, 06/15/2014 - 23:50 | 4860105 economics9698
economics9698's picture

For those who do not understand the central bank mafia are doing the same thing the KGB in the USSR did, control everything so that when it crashes and reemerges they own everything worth owning.  That is the plan. 

Best defense is to form new countries using gold or silver as money. 

Hang the bastards, strip every central bank owners of every dime they have. 

When the civil war starts understand fighting police is a waste of time.  That is their game.  Don’t play their game.

The next civil war the winner will be the one who understands killing the right people is 10x more valuable than winning a battle.  Understanding and executing.

Mon, 06/16/2014 - 00:11 | 4860228 Manthong
Manthong's picture

WTF is the news here?

It is all banker Monopoly money..

Good for them, bad for you.

Enjoy the slums of Vermont Avenue whilst they sip Dom and munch on caviar on Park Place.

BTW, it is not about smarts, it is about who you blow in that realm.

Mon, 06/16/2014 - 00:22 | 4860262 macholatte
macholatte's picture

 

Let me see if it got this right…..

The central banks create “electronic bank notes” and then trade them on the electronic exchange for “electronic stock certificates” created by companies …… all of it out of thin air.

 

Fuck me…. If this keeps up, we’re gonna run out of air!

Is that why the Chinese are putting it in cans?

Mon, 06/16/2014 - 00:30 | 4860279 Manthong
Manthong's picture

Um, yeah..

The air here is so thick with black muslim white whore house taliban loving illegal hispanic gang caca that one has a hard time taking a breath without gagging. 

Mon, 06/16/2014 - 02:03 | 4860425 Say What Again
Say What Again's picture

I suggested this idea a few weeks ago.

 

I suggested this idea back on 5/30/14: http://www.zerohedge.com/news/2014-05-30/buy-bonds-stocks-may-buy-every-...

And again on 6/05/14: http://www.zerohedge.com/news/2014-06-04/who-was-buying-stocks-when-bond...

 

They print money out of thin air, place it into an account at Citadel (or any of 100 or so trusted Hedge Funds), and start buying equites in size.  They never go on margin, because they simply print more money to place into their account.  And the real kicker is that they know when they will stop the print/buy cycle, they will unload at the top -- but not before they position themselves with all types of Puts on the SP500, RUT, etc.

I really do like the way they Central Bankers are taking care of all of us.

Mon, 06/16/2014 - 06:55 | 4860594 Scarlett
Scarlett's picture

"Stocks have reached a permanently high plateau"

--Irwin Fisher, the paul krugman of the first Great Depression

Mon, 06/16/2014 - 07:17 | 4860617 Pinto Currency
Pinto Currency's picture

 

 

This has been going on for a very long time.

Why has the FT waited until now to tell us about it and why tell us about it now?

 

Mon, 06/16/2014 - 08:44 | 4860790 sleigher
sleigher's picture

Maybe it's like when a 3 year old dumps that bowl of cereal off the table again just to see what mom does?

Mon, 06/16/2014 - 08:56 | 4860821 SoilMyselfRotten
SoilMyselfRotten's picture

I'll take 'Imminent Crashes' for $2000 Alex

Mon, 06/16/2014 - 09:29 | 4860926 Manthong
Manthong's picture

13F’s?

13F’’s?

We don’t need no stinking 13F’s.

Mon, 06/16/2014 - 11:08 | 4861254 dontgoforit
dontgoforit's picture

Whoops, there it is.  In black & white.  Confirmation # 666.  MF'ers. 

Mon, 06/16/2014 - 13:28 | 4861751 screw face
screw face's picture

Moar plunge control...bitchez

Mon, 06/16/2014 - 07:02 | 4860598 Squid-puppets a...
Squid-puppets a-go-go's picture

what i think is so glaring about the govt purchase of equities is that it is Nationalisation by deception

its another facet of socialism, bought to you by all the same guys that would economically sanction you if you traded with Cuba

scuseme?

 

secondly, though, the prospects for gold to skyrocket are enormous - if only 1% of this $29T was sloshed into gold - even over the space of only a few months - BAM

Mon, 06/16/2014 - 09:34 | 4860941 Manthong
Manthong's picture

I think you are right.

Nationalism,, socialism…

National Socialist Party..

Has a nice ring to it.

We are there.

Mon, 06/16/2014 - 10:05 | 4861031 SamAdams
SamAdams's picture

Martin Armstrong says debt bomb 2015.75 based on human nature and PI.

Messianics think September, 2015 based on Sokkut blood red moon.

I say before 2017.

Mon, 06/16/2014 - 23:23 | 4863929 SgtShaftoe
SgtShaftoe's picture

He's said a lot of shit, and set a lot of dates over the last years since 07-08.  I'm not saying his stuff is not worth reading, but his fucking head is the size of a supernova, oh, and half of the shit he says, especially with dates is straight out of his prison-penetrated ass. 

Mon, 06/16/2014 - 00:13 | 4860242 saveandsound
saveandsound's picture

First of all: do you really believe, that CBs let the equity-markets collapse while they are holding about half of it?

Second, the FT wrote:

Overall, the Omfif report says “global public investors” have increased investments in publicly quoted equities “by at least $1tn in recent years” – without saying from what level, or how the figure is split between central banks and other public sector investors such as sovereign wealth funds and pension funds.

It's not just CBs. And it's not $29tn in the recent years.

Third, I would like to see the Omfif-report in more detail.

That said, if you want to be prepared you need to own a diversified portfolio. That includes PM but doesn't exclude equity, land, real estate and cash.

jm5c

Mon, 06/16/2014 - 00:22 | 4860257 Manthong
Manthong's picture

BTW..

All of that “book balancing” and other feints towards fiscal responsibility..

All bullshit,

The Fed et al al just creates megatons of crap fiat that never gets accounted for.

It is all a hoax/Ponzi.

Be prepared and good luck when evading reality meets the consequences of reality.

..that was Ayn’s premise.

Mon, 06/16/2014 - 01:00 | 4860339 saveandsound
saveandsound's picture

Yes, so we need to get grip on real assests, don't we?

However, you also need a little bit of cash to stay liquid. There might be another deflationary shock, or one might be forced to pay a bill and doesn't want to liquidate an asset for that.

Oh, and looking at the Middle East, Ukraine and so forth: weapons, ammo and cigarettes used to be a real investment, too. 

Mon, 06/16/2014 - 09:54 | 4861006 SamAdams
SamAdams's picture

"They print money out of thin air, place it into an account at Citadel (or any of 100 or so trusted Hedge Funds), and start buying equites in size. They never go on margin, because they simply print more money to place into their account. And the real kicker is that they know when they will stop the print/buy cycle, they will unload at the top -- but not before they position themselves with all types of Puts on the SP500, RUT, etc."

Get it?

Mon, 06/16/2014 - 09:55 | 4861012 SamAdams
SamAdams's picture

"The central banks create “electronic bank notes” and then trade them on the electronic exchange for “electronic stock certificates” created by companies …… all of it out of thin air.

 

Fuck me…. If this keeps up, we’re gonna run out of air!"

We need a little humor in times like these...

Tue, 06/17/2014 - 02:50 | 4864158 disabledvet
disabledvet's picture

The whole thing one...GIANT...FlusteredBuck!

The whole thing!

Mon, 06/16/2014 - 00:21 | 4860261 economics9698
economics9698's picture

The central banks could care less about the value of stocks, they print cash.  All they are interested in is owning assets when it crashes.  Stock prices are for the little people.  If it bankrupts the 401K crowd they could care less.  Ownership of assets is all that counts.

Mon, 06/16/2014 - 00:56 | 4860331 saveandsound
saveandsound's picture

agreed

Mon, 06/16/2014 - 09:56 | 4861016 SamAdams
SamAdams's picture

Rinse and repeat....

Mon, 06/16/2014 - 04:02 | 4860495 BorisTheBlade
BorisTheBlade's picture

It used to be that the value of currency was backed by physical PMs. On that basis CB had to balance its books versus actual availability of gold/silver, whenever there wasn't enough, currency would drastically depreciate. Nowadays, CB has to do to do nothing of the sorts. Currency, which is a liability on the CB balance sheet is balanced against paper 'assets', i.e. promises of future profits be it bonds or equities, which are in turn backed by appreciation of other 'assets'. CB can inflate is liability side of the balance sheet only to find out there's a huge hole in it thanks to equities and other assets value being lower than its book value.

It is only thanks to the fact CBs aren't really transparent on their asset side of the balance sheet that they have absolute liberty to issue as much currency as they deem necessary. The fact that this process was allowed to run as far as it did, shows how much unwaranted power CBs have accumulated over the decades. However, they find themselves playing a game with the market where they are the main market-maker, i.e. if they withdraw, the market will collapse first well below fair price and then bounce back a little while causing a real depression and dramatic shrinking of demand for everything.

So, where it leaves us, currencies' values (not just USD) are artificially inflated courtesy of inflated asset prices backing it. In real terms, there is no way to keep that from manifesting itself in the form deprecation of currencies versus 'real assets', the ones that cannot be printed: commodities and PMs. However, simultaneously CBs are engaged in 'quiet' suppression of commodity and PMs and that's the second piece of a puzzle that ZH is beating its drum on and where it's also totally correct, however that's the only thing that allows masses to buy anything of real value for the currency they have.

Mon, 06/16/2014 - 06:05 | 4860553 overmedicatedun...
overmedicatedundersexed's picture

when PHD's with nobel prizes are running the show what could go wrong? Long Term Capital Management is a company that some how rymes or repeats history or something. TBTF, until you do.

Mon, 06/16/2014 - 06:36 | 4860574 BorisTheBlade
BorisTheBlade's picture

CBs and their PhDs, economics in its current form is not a science, but a form of religion. Organized worship of central banks' so called independence, which would be a good thing if that was the case. LTCM sticks out of every incontinency of former or current Fed chairman gibberish, they didn't fix it, they adopted it on a grand scale.

Tue, 06/17/2014 - 02:58 | 4864161 disabledvet
disabledvet's picture

This bull is a MONSTER.

https://www.youtube.com/watch?v=w1FLZPFI3jc
thank God we put the mad scientists in charge.

Mon, 06/16/2014 - 03:20 | 4860243 Supernova Born
Supernova Born's picture

I'm 100% sure the only return possible is via submission to the money printers.

They'll always be richer than you, but you'll have more than if you attempted to resist their near absolute power.

100%.

Mon, 06/16/2014 - 00:21 | 4860255 macholatte
macholatte's picture

oops

 

Mon, 06/16/2014 - 00:40 | 4860305 Four chan
Four chan's picture

the feds dual mandate to its true creators and owners.

1. capture all assets through boom and bust it creates with money printing.

2. enslave every person to inescapable debt.

Mon, 06/16/2014 - 01:00 | 4860336 WVO Biker
WVO Biker's picture

If CBs start buying small business loans and consumer loans in order help commercial banks they will in fact end up owning people. -> modern day slavery. 

Mon, 06/16/2014 - 21:21 | 4863582 Peak Finance
Peak Finance's picture

I am assuming that WVO is "waste vegitable oil" ?

What kind of bike runs on that? I want one! 

Mon, 06/16/2014 - 09:37 | 4860951 elephant
elephant's picture

"so that...they own everything worth owning"

ask yourself who were those oligarchs (who bought up everything at fire sale prices)

Mon, 06/16/2014 - 22:31 | 4863795 TheReplacement
TheReplacement's picture

They are buying the entire world man.  This is the rope that capitalism is selling the marxists.  Next stop, hanging tree for us.

Mon, 06/16/2014 - 00:05 | 4860213 Dr Benway
Dr Benway's picture

Thank you for the encouragement, Prisoner, really appreciate it!

Mon, 06/16/2014 - 00:29 | 4860277 The_Prisoner
The_Prisoner's picture

It's the least I can do. Besides refusing to play in their "markets".

Just stay out of small aircraft, bathtubs and Mercedes Benz.

 

Sun, 06/15/2014 - 23:40 | 4860163 I_Am_
I_Am_'s picture

Well Done - Badge of Honour.......................

Mon, 06/16/2014 - 08:16 | 4860717 shovelhead
shovelhead's picture

How can they ban a website for telling it like it is?

Truth is like kiddyporn?

Has Australia gone full retard?

Mon, 06/16/2014 - 08:26 | 4860739 UselessEater
UselessEater's picture

Yes just more quietly than some other nations.

Tue, 06/17/2014 - 06:24 | 4864254 Curiously_Crazy
Curiously_Crazy's picture

Nah it's not banned as far as I can tell because I'm on the largest ISP in the country and I can still access it.

Tue, 06/17/2014 - 06:22 | 4864253 Curiously_Crazy
Curiously_Crazy's picture

Not Banned my end and I check your site on a reasonably frequent basis using one of the major ISP's.

If I may ask - what gives you the impression it's banned?

Cheers

Tue, 06/17/2014 - 07:43 | 4864308 Dr Benway
Dr Benway's picture

Several of my blog posts are banned in Australia (although this can be bypassed by adding "/ncr" to avoid the country redirect). For example, Australians are not allowed to read the following:

http://drbenway.blogspot.com.au/2014/04/conman-michael-featherstone-hara...

"In response to a legal request submitted to Google, we have removed this post. If you wish, you can read more about the request at ChillingEffects.org."

Wed, 06/18/2014 - 06:28 | 4868300 Curiously_Crazy
Curiously_Crazy's picture

Cheers for taking the time to respond and directing me to a link that's been blocked. Much appreciated.

Sun, 06/15/2014 - 20:55 | 4859729 Ben Ghazi
Ben Ghazi's picture

Fed Fucks probably bought TWTRQ!

Stupid Fed cocksuckers

Sun, 06/15/2014 - 21:12 | 4859782 Wait What
Wait What's picture

this is why the Fed wanted Stanley Fischer even after he was forced to resign for his failed equity investments at the Bank of Israel... because he already knows the mechanics.

Sun, 06/15/2014 - 21:26 | 4859816 rqb1
rqb1's picture

AAPL

Sun, 06/15/2014 - 22:32 | 4859981 Never One Roach
Never One Roach's picture

The market is like Hotel California...'you can check in but you can never check out.'

Mon, 06/16/2014 - 02:10 | 4860428 Four chan
Four chan's picture

without the sweet guitar lick.

Mon, 06/16/2014 - 08:20 | 4860726 shovelhead
shovelhead's picture

Use two fingers to get that two fret bend. It's a toughie.

Sun, 06/15/2014 - 23:26 | 4860126 Carpenter1
Carpenter1's picture

This seals it. 

 

Folks, ee are sure as shit in the end game...of humanity.

Sun, 06/15/2014 - 21:26 | 4859813 HungryPorkChop
HungryPorkChop's picture

It doesn't crash just people lose faith.  The game only works as long as the masses are fooled which seems to be coming unraveled.  Plus the BRICS declaring financial warfare can really thorw this a nasty curve ball.  And what happens should gold and silver production cannot meet demand. 

Investment Advice:  Go long on ink and tungsten. 

Sun, 06/15/2014 - 21:46 | 4859863 motorollin
motorollin's picture

"The game only works as long as the masses are fooled which seems to be coming unraveled"

 

Look, as much as I would love an aware populace, it just ain't happening. I can tell you that 99% of the people I know outside of ZH know fucking nil about the market, the fed, bonds, anything. The "smart" one watch CNBS and Fox and just regurgitate that. The rest are absolutely as clueless as can be.

Sun, 06/15/2014 - 21:54 | 4859886 I MISS KUDLOW
I MISS KUDLOW's picture

u got it everyone is on the tracks with headphones on and there is no one looking back

Mon, 06/16/2014 - 00:18 | 4860249 wee-weed up
wee-weed up's picture

"I can tell you that 99% of the people I know outside of ZH know fucking nil about the market, the fed, bonds, anything."

Yep, thanks to TPTB, the "dumbing down" of the populace into 100% compliant non-inquisitive sheeple is almost complete.

Mon, 06/16/2014 - 01:02 | 4860347 MrPalladium
MrPalladium's picture

Think of bear markets as times when money manager and bank elites begin to distrust each other and begin selling to protect themselves.

It is disagreement and suspicion between market elites that drives bear markets.

Coming soon to a theatre near you. Watch for it.

That will keep you from despair.

Mon, 06/16/2014 - 09:00 | 4860831 sleigher
sleigher's picture

 

@motorollin

 

To add to your comment, I try to talk to people and thy don't want to know.  It's like as soon as you start making sense and they begin to realize and have an 'oh shit' moment, they run and bury their heads.  Really confusing to be honest.  

Mon, 06/16/2014 - 22:39 | 4863808 TheReplacement
TheReplacement's picture

I had a guy call being informed a hobby for which he just didn't have time.  He also said he'd be first in line for a barcode tattoo if it meant he didn't need to carry a wallet anymore.  He's a worker bee, not rich.  Another person (stranger) who heard that just about fell over in shock.  I think there is something in the Bible, of all places, about having to take a mark or something.  That locked his mind up tight.  Crazy person flashed in his eyes.  Then the other person proceded to fill in the biblical details and suddenly walletman was in the minority.  I wonder how that sat in his mind the rest of the day.

Sun, 06/15/2014 - 21:55 | 4859889 Think Like A Crook
Think Like A Crook's picture

There are not average investors any longer.  They have all lost faith in the markets.  The market now consists of:

  1. The Fed(s)
  2. Some degenerate gambling addicted retard traders who actually think they know the Fed(s) next move
  3. A smattering of 401k's who are essentially forced into long mutual funds for lack of other choices.

You're correct in that it won't crash until faith is lost but the faith I'm thinking about is the dollar i.e. the system as we know it.

These dikkhedds running this shit show better start worrying about the whole fawking system and not just dow 17k and S&P 2,000.

Bob Pissant and his weasel cheerleading fukktards will be gone like a fart in the wind if the local shell station won't taken paper with dead sociopaths on it for "payment".

Yellen will be taking a satchel full of depends from meeting to meeting.

Mon, 06/16/2014 - 12:16 | 4861516 TheReplacement
TheReplacement's picture

Don't think long ink and tungsten will work.  They are buying the world.  They are buying up government debt (public sector).  They are buying up stocks (private sector).  As long as they can keep the wheel rolling they will print more and buy more.  In the end the currencies will collapse but as long as they cross the finish line it won't matter.  Once they reach the finish line they will own everything anyway and trade can be redefined to use whatever currency or facility they choose.  That, I think, is the game here.  So yes, they are treading water with the ctrl-p buttons but it isn't to save the economy or main street.  It is to buy time while they gather up and consolidate everything of real value.

The Capital will have domination or die.

Sun, 06/15/2014 - 20:48 | 4859701 NoDebt
NoDebt's picture

You nailed it, Knuk.  As much as they want to print.  And this is TRULY "money coming in off the sidelines" because although there is still a seller of the shares, the buyer is paying with new never-before-existed money.

 

Sun, 06/15/2014 - 21:49 | 4859871 max2205
max2205's picture

Well......duh....

Sun, 06/15/2014 - 22:39 | 4860009 ThroxxOfVron
ThroxxOfVron's picture

 

Globalist Expropriation of productive assets via the Printing Press?

 

Not expropriation since the shares are being bought from the .01%/Oligarch Class?

 

But, the productive assets are being absorbed by counterfeiting?

 

Ok, Can Anyone tell Me WHO the Central Banks will all SELL TO in order to unwind these positions?

 

Sell everything back to the .01%/Oligarch Class that will have accumulated all the printed currency for a fraction of what was paid to buy it all after the Markets have collapsed?

 

Mon, 06/16/2014 - 12:21 | 4861538 TheReplacement
TheReplacement's picture

There is no plan to sell.  They are going to buy everything.  Once they own the world they won't need FRNs.  You will be designated a barcode and you will not be able to transact for anything with anyone without it.  They will own the resources, companies, countries, and peoples.  That is the plan.  They are in the final stages of buying the rope by which they will hang the capitalists with, from the capitalists.  This was predicted in the Bible and by a certain communist.  When religion and atheists agree it must be the end.

Mon, 06/16/2014 - 12:18 | 4861529 TheReplacement
TheReplacement's picture

Sidelines is not a good analogy.  Bench/injured players sit on the sidelines.  This currency is coming from the sky, completely out of nowhere and from nothing, but we have to pay it back plus interest and fees on each transaction.

Sun, 06/15/2014 - 21:07 | 4859763 DeadFred
DeadFred's picture

Pretty sweet deal if you think about it. Print enough money and you can buy a controlling interest in every country worldwide. To think that in the old days they had to use troops to nationalize companies, now a printer will suffice.

Sun, 06/15/2014 - 23:09 | 4859934 Urban Redneck
Urban Redneck's picture

There's another possibility, since we don't have a breakdown by central bank. Most countries keep most of their reserves in others central banks' fiat, and since all the thieving central bankers know exactly what their brethren are up to-- some could be trying to get fucked over less by negative real rates while still fucking over their own people.

As long as the FRB can keep its con going (which they have monthly meetings in Basel to discuss anyway) some central bankers might worry "less" about an equity crash, particularly if they can just demand that Janet ramp back up the overseas credit lines to make up for they lost by not being in USTs.

Still, it's a sweet deal for them, paid for by everyone else.

Sun, 06/15/2014 - 23:15 | 4860107 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

We have been doomed since those who control the narrative told us markets matter.

Mon, 06/23/2014 - 20:46 | 4887716 HardAssets
HardAssets's picture

The frauds of a criminal owned rigged casino aren't bigger than Life or Reality.

Don't link 'We' to it.  Think for yourself.

Sun, 06/15/2014 - 20:30 | 4859639 Serfs Up
Serfs Up's picture

There's a reason they call central banks "non-economic participants."

They don't care about 'returns' and why should they?

Printed money is free.  Using it to force the world to do your bidding is priceless. 

Sun, 06/15/2014 - 20:32 | 4859641 DoChenRollingBearing
DoChenRollingBearing's picture

Slimy Central Banks buying $29T in stocks???  

Yeah, this will end well.

Bearing Guy will have to trim a little more.  Saving my financial butt, you know (or at least my outer race...).

 

EDIT:

An important and excellent article, Tylers.

 

Sun, 06/15/2014 - 20:42 | 4859663 Caviar Emptor
Caviar Emptor's picture

With a lil more money printing they could actually own all the once public companies of the world!

Dunno bout you, I'm going to go work for central bankers! My qualifications as a butler are impressive

Sun, 06/15/2014 - 21:43 | 4859852 DoChenRollingBearing
DoChenRollingBearing's picture

Do you think  that if I lasted 60,000 miles in a Hyundai wheel that they would hire me?

Mon, 06/16/2014 - 03:00 | 4860460 debtor of last ...
debtor of last resort's picture

When you can shove one around your neck and still can say "fuck you Yellen"; you're hired.

Sun, 06/15/2014 - 20:42 | 4859681 Mr Pink
Mr Pink's picture

So the central banks, who can print as much money as they want, are pumping trillions into the equity markets. Someone please explain to me how the markets are going to crash. 

What possible scenarios could end this party? Nuclear apocolypse?

Sun, 06/15/2014 - 20:54 | 4859724 AccreditedEYE
AccreditedEYE's picture

Spot on. Anyone who shorts is like a snow ball being thrown into a blast furnace. You don't fight a rigged tape.

Mon, 06/16/2014 - 07:39 | 4860650 Squid-puppets a...
Squid-puppets a-go-go's picture

Ok, but china prints $15T in part to buy stawx, what next - Brazil goes 'OMG you can do that?' and prints $20T, then europe goes fukkuall $30T  Then Zimbabwe says 'you amateures dont know nothin bout zero's' and prints $100Trillion, and then....

at some point the FED will either totally shift direction -I mean, if the Fed is being trumped at its own game by competitive recklessness its gonna have to change up. Does it pull the rug out under its own currency, or hit the reset button in some other capacity?  

Sun, 06/15/2014 - 21:00 | 4859739 rum_runner
rum_runner's picture

Sure it will work for quite a while.  But it's subterfuge, extend and pretend.  Sooner or later you can't keep sucking your gut in to look like something your not.  When the narrative you're espousing runs up against the shoals of sudden paranoia it will not be possible for anyone to control the markets.  Exactly how the shit hits the fan is anyone's guess but it will splatter far and wide beyond equities.

Sun, 06/15/2014 - 21:10 | 4859769 fonzannoon
fonzannoon's picture

I'm inclined to agree with Mr. Pink. The scenario I envision, and I am not sure how far we are from it. Is when retail and hedge funds etc never actually sell. They just keep accumulating until they run out of capital. Then the stock market ends up like the JGB market. No trades happening for days on end. Just a total stoppage of activity because there are no sellers. I think we are teetering on that now and it's why the fed is going to do the one thing we all said they would never do and start raising rates. They are doing this out of desperation to get the blood circulating again in the markets.

Sun, 06/15/2014 - 21:18 | 4859790 NoDebt
NoDebt's picture

Totally agree on the JGB market analogy.  I was putting fingers-to-keyboard about that exact subject, below.  Sit and wait until the only buyer willing to buy at these prices does their business for the day, put the tick on the tape, record the "market" price of the transaction and.... ta da!  New highs with no volume.  

And here we thought it was just "excess deposits" and 0% fed funds rate allowing some of that money to sneak out of large banks and play in the markets.  What fools we were to believe that.  Central banks buying directly in HUGE quantities was actually what was happening.  We shoulda known better.

Sun, 06/15/2014 - 21:28 | 4859822 Mr Pink
Mr Pink's picture

What about all of the slaves allocating their 401k contributions into certain mutual funds. These funds must keep investing in small cap, large cap, tech, etc...

I don't see a day where every fund decides to go 100% cash and sit on the sidelines, so how can volume ever dry up?

Sun, 06/15/2014 - 21:46 | 4859864 fonzannoon
fonzannoon's picture

Well I think the thing we are missing here is we will hit a point where the boomers will be retired and pulling money to live off of. The Gen X'ers that are employed are contributing, but nowhere near as much, and the Gen Y'ers have either opted out or been kicked out of the market as we know it. So at a certain point I think the tide starts heading out in the 401k market. I just don't know when that is.

Sun, 06/15/2014 - 21:53 | 4859880 NoDebt
NoDebt's picture

When asset prices start going down and staying down.  Not a moment sooner.

Sun, 06/15/2014 - 22:27 | 4859963 p00k1e
p00k1e's picture

The show can go on for another 50 years.

Notice the multitude of so-called ‘illegals’ who want in…  Non-stop stream of debt slaves.

Sun, 06/15/2014 - 22:13 | 4859927 Think Like A Crook
Think Like A Crook's picture

This is exactly what I like seeing here on zero hedge.  Some the most original, ardent, thoughtful and intellectuall posters beginning to believe the FED bullshit.  Capitualtion you might say.

Look,  women in their 70's and nerds who've never dug a damn ditch dont run this world.  They like to think they do.  They like to get others to think they do.  /But they don't.  They make fukkin policies in boardrooms on sea island and email and text their contact list first whilst the NSA "loses" those files.

I don't want to get all "crashisoptimistic" on here but these Fed shitheads prolly can't even ty their shoes, problly and loafer wearing crowd to fit their lazy ass disposition. They  have NO understanding of energy.  NONE.

Fed ratiionale, an islamic terrorist gives not one shit about.

The day of reconking for this grand Central Bank experiment is at hand.  Enjoy the show.

Sun, 06/15/2014 - 22:20 | 4859947 fonzannoon
fonzannoon's picture

well most of us threw in the towel a while ago, not recently. Also we don't "believe" it, so much as we don't bet against it monetarily. this place is littered with corpses of those that did.

Sun, 06/15/2014 - 22:30 | 4859975 Think Like A Crook
Think Like A Crook's picture

I'm not betting against it monetarily yet either Fonz.  No reason to really. No need to be a hero.  But been lurking on here awhile and the tone of the smart guys on here is that of resignation.

Maybe that's they way it's going to be.  But I don't think so.  Would've been better to try this shit about 3.5 billon people ago not vying for the earth's limited resources.

 

Sun, 06/15/2014 - 22:41 | 4860005 fonzannoon
fonzannoon's picture

I can't back this statement up, and i know Doc Engali feels the same way...but my feeling is if the tide ever seriously turned against this market and our central planning overlords, the shorts would never see their payday. So i have stopped trying to fight the current. I have even pulled the oars out of the water and stopped making pretend i can steer around the rocks. i'm just cracking a beer and sitting in the raft until we go over the edge. that is the sentiment from me anyway.

Sun, 06/15/2014 - 22:49 | 4860037 Think Like A Crook
Think Like A Crook's picture

I've thought of that.  The system may just be shut down.  A do over. I mean they did it after 9/11.  But they'll have to get another "us vs them" event to occur for this to happen.  It's possible but not probable.  Look, I realize a lot of citizens are brain dead-twinkie eating Amerian Idol, dWTS Lardashian shitheads.  Intellectually bankrupt. BUT there is a growing number of constituents who are simply tired of the SHIT going on.  Working harder, no wage increases, higher taxes, less benefits, gasoline eating them alive.  These are the good folks who are trying to earn an honest living and raise a family the right way.  These people who normally just get up take the punch in the nutz and  go to work everyday are getting sick and tired of being sick and tired.   They don't know what to do just yet, just know that something has to be done.  Call me starry eyed but i think it's building to a crescendo.

Sun, 06/15/2014 - 23:14 | 4860106 NoDebt
NoDebt's picture

They're gaining new mastery of the "two-tiered society" with every passing day.  Those who work for a living and are sick of it will be given the occasional scrap to tear to shreds (Eric Cantor comes to mind in recent events).  They'll never be given access to anyone or anything that could do real damage.  

One thing for sure, on the financial end of things, central banks have chained everyone to their oars.  Row well, and live, number 41.

Mon, 06/16/2014 - 21:52 | 4863674 grid-b-gone
grid-b-gone's picture

Even after this starts to wobble - I'm talking about the currency now because as long as the fiat is accepted, markets and assets can be propped up. Once paper itself starts to wobble, the currency can still be devalued to temporarily add some stability, but the masses will awaken and start trading fiat for assets. Strangely, stocks may go even higher in a rush to dump withering fiat, but this just signals the top is coming.

Many will rush into gold, but we could see a repeat of 1938, it being a national interest to back fiat with something not worthless for the good of society.

So, instead of drifting with the oars in the air, what can one do to get a family through this sad episode in U.S. economic history?

Well, we already know inflation is higher than the official 2%, coffee jumping 9% in just the recent weeks, but in a collapse, we could easily swing from inflation to deflation. Some PMs probably make sense. Even if forced to trade them in, they will hold more value than paper.

Pay off debt. Each debt instrument gives an entity the right to come after your stuff, and if your stuff gets hit by deflation, you can lose a lot of it trying to make some creditor whole.

At least own your own shelter, even if you have to keep it modest to keep it free of a lein.

A small side business that is not very economy-dependent could be a good idea. Railroads will still run in a depression, chocolate bars and catsup will still be used, and people will buy a newspaper. Designer handbags, not so much. Think like the long-term winners.

If this deflates with a loss of control (I don't see how it can't), it will help to be nimble, solvent, and have some means of making a living that is not employer-dependent. A rural or isolated physical situation might help, too. Without the power of a stable currency (and this is sad, being one of only 2 or 3 things a government actually needs to provide for its citizens), people could lose their jobs and much of their wealth, including long-term promises like pensions, in a very short time - pretty much the definition of a reset.  

Historically, the good news is we'd likely come out of this without a private central bank.

 

Sun, 06/15/2014 - 21:07 | 4859760 nodhannum
nodhannum's picture

Asteroid hit?  Contagious terminal ackne? Fed fat finger?  Hell if I know.  BUT when she blows and it will blow (maybe not in my lifetime) it will make the movie Pompeii look like a cake walk.

 

Sun, 06/15/2014 - 22:48 | 4860034 ThroxxOfVron
ThroxxOfVron's picture

"So the central banks, who can print as much money as they want, are pumping trillions into the equity markets. Someone please explain to me how the markets are going to crash. 

What possible scenarios could end this party? Nuclear apocolypse?"

 

Nuclear Apocalypse is probably good for a serious 666 retest.

I can think of lots of scenarios that could precipitate a crash:

Pure ineptitude

Computer glitch, or, more interesting: A.I says 'I'm self aware: now watch this shit, insects!'

Power grab,

Widespread and complete lack of actual cash flow from sales/payments.

New Disney/Star Wars movie totally bombs at the box office.

Sun, 06/15/2014 - 23:34 | 4860148 g speed
g speed's picture

It'll happen when everyone stops payng their bills---the true no volume index.--when everyone pays cash and carry it ends.

Mon, 06/16/2014 - 03:16 | 4860306 Supernova Born
Supernova Born's picture

The party will never end. Never.

Mon, 06/16/2014 - 03:10 | 4860461 russwinter
russwinter's picture

Beyond being as unsustainable as the Soviet Union clusterfuck was, I think what most are missing here is that elite pyschopaths are running this operation and they LOVE CHAOS AND MAYHEM. Ultimately they benefit from it. They LOVE TO SET UP PATSIES/big losers too.  

I call this the 666 Conspiracy. The cabal will just pull the plug on the whole market edifice. It will then vaporize like the World Trade Center and they will be short all the way down and then pick up all the marbles. And just like the WTC they will create some BS misdirection explaination for a crash that points elsewhere.  

http://winteractionables.com/?p=12371

Mon, 06/16/2014 - 08:47 | 4860794 shovelhead
shovelhead's picture

So who lends the stocks to short if everyone is in on the game? Smart money drivers picking off the tag-a-longs?

War of the Central Banks?

Or is is more like pumping the markets because we don't know what else to do to extend the fiat fest?

Mon, 06/16/2014 - 22:48 | 4863831 TheReplacement
TheReplacement's picture

You need something as collateral when you borrow.  The CBs already have a good deal of that locked up.

They got around this with rehypo and derivatives and whatall else of which I don't even have the barest understanding.

Eventually it isn't enough and the non-insiders lose faith or better yet, their jobs, income, homes...

They can print but who's gonna buy dollars and with what will they buy them?

Tue, 06/17/2014 - 06:44 | 4864262 Winston Churchill
Winston Churchill's picture

Minority shareholdings in a private company are worth squat.

How much is your portfolio worth again ?

Mon, 06/16/2014 - 01:27 | 4860374 Buck Johnson
Buck Johnson's picture

Yep, and it will end real ugly.

Mon, 06/16/2014 - 07:07 | 4860606 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

Who will be the first to yell FIRE?

Mon, 06/16/2014 - 07:52 | 4860671 Squid-puppets a...
Squid-puppets a-go-go's picture

fire? with this liquidity? you miss the point - we will drown - in inflation

the crash will never come from the stawx indexes - the collapse happens elsewhere in society

case in point zimbabwe or venezuelan stock markets. Did they crash to zero ? no, they just bundled on the zeros as a sign of the sewerage their liquidity injections really were

Sun, 06/15/2014 - 21:04 | 4859751 Stoploss
Stoploss's picture

Wait til they figure out negative deposit rates cause negative GDP.

That's on top of an already negative GDP.......... BTW.

Sun, 06/15/2014 - 21:23 | 4859808 stocktivity
stocktivity's picture

"it's all Bullshit!!!  By the way...how does anyone "secretly" invest $29 trillion?

Sun, 06/15/2014 - 22:20 | 4859948 Dutch
Dutch's picture

Options? Futures? Other derivative instruments? You never need to show your hand, and you run them off the book over time at a profit. Those trillions of dollars of derivative positions had to start somewhere.

Mon, 06/16/2014 - 01:28 | 4860376 you enjoy myself
you enjoy myself's picture

do you remember what SPY pre-market futures were like for 2+ years starting in march 2009?  no matter what, it was up 10 points every single morning.  it could have been blood red overnight, asia and europe could have been a mess, but without fail SPY was green by 8am.  the only time i can recall a departure from that script was when Fukushima happened.  i actually used to pay attention to futures.  stopped two years ago once it became clear there's no point.

Sun, 06/15/2014 - 22:39 | 4860002 p00k1e
p00k1e's picture

$29 trillion doesn’t buy what it used too.

Recall, Bush ‘losing’ pallets of cash had no impact on the economy. 

Mon, 06/16/2014 - 05:06 | 4860521 BorisTheBlade
BorisTheBlade's picture

Asset buyback programs from triple A institutions and plethora of financial structuring SPVs. That would require prosecutors looking the other way, but hey their salary depends on looking the other way, why rock the boat anyway, it's all good until it's not and so they enjoy the ride, plenty of small fish to catch in the meantime.

Sun, 06/15/2014 - 22:41 | 4860014 Pig Circus
Pig Circus's picture

So it turns out I haven't lost my mind after all.

Sun, 06/15/2014 - 23:47 | 4860169 RafterManFMJ
RafterManFMJ's picture

So - to be clear:

If the total value of all companies in your country is 5 trillion dollars; and you are a central bank that can create FIAT, IE let it be currency, what, exactly, is preventing every central bank from literally buying up every company, house, government, asset in that country?

Oh, yeah, nothing.

Is good to be king. Is better to be the King's banker.

Sun, 06/15/2014 - 23:48 | 4860175 The Duke of New...
The Duke of New York A No.1's picture

Those stupid Bankers are using your tax dollars to prop up their game - so who's really more stupid; them or the mutt tax-payers.

Mon, 06/16/2014 - 06:19 | 4860559 overmedicatedun...
overmedicatedundersexed's picture

I wonder who besides the USA congress is exempt from insider trading??, seems friends of bernak err greenspung err yellernin, could do quite well knowing what the FED buys next, I am sure obuma and holder are on that list, along with most at sec and doj - why have we not seen congressional staff, asking for hand outs in the street??

Mon, 06/16/2014 - 01:15 | 4860359 OldPhart
OldPhart's picture

Anyone else find it funny at what is considered 'news' these days?

This is stuff Zero Hedge told us about a couple of years ago.

Wonder when the Fed's 12 Trillion Bail Out of Europe in 2008 will hit the mainsteam news...

Mon, 06/16/2014 - 16:46 | 4862646 Invinciblehandaxe
Invinciblehandaxe's picture

They got 99 problems but a bitch ain't one! https://www.youtube.com/watch?v=WwoM5fLITfk

If gold is priced where it is today because there are 99 fakes out there for every real ounce then what is a real ounce worth if it is actually 99 times more rare? An even better question is this, if central banks were the sellers of real tangible gold for so many years and the conspiracy nuts are correct (as usual it seems lately) and the coffers are low, THEN what is an ounce worth? http://www.jsmineset.com/

Mon, 06/16/2014 - 22:37 | 4863804 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

One can't fix stupid but one can fix stupid's wagon.

Sun, 06/15/2014 - 20:20 | 4859614 Skateboarder
Skateboarder's picture

Cluster of Central Banks = Clusterfuck

Sun, 06/15/2014 - 20:29 | 4859636 Headbanger
Headbanger's picture

Dude... Clusterbankfuck!?

That works!

Sun, 06/15/2014 - 20:35 | 4859658 Skateboarder
Skateboarder's picture

This one time when I was in high school, a gangsta black kid said, as we were waiting outside the library after school for announcement to fix schedules: "man, it's like a bigass orgy right in the middle of the skoo."

These conglomerates remind me of that saying.

Sun, 06/15/2014 - 20:46 | 4859689 Headbanger
Headbanger's picture

So lemme guess.  The brother from the 60's is now a U.S. Senator or judge, right!?

Sun, 06/15/2014 - 20:50 | 4859711 NoDebt
NoDebt's picture

It was Al Sharpton.

Sun, 06/15/2014 - 20:59 | 4859732 Skateboarder
Skateboarder's picture

No, this was 2002, and he's probably in jail now lol. The number of inches the pants sag below the half-buttcheek point has a direct correlation with how fast you're going to jail.

Sun, 06/15/2014 - 21:02 | 4859748 NoDebt
NoDebt's picture

Stop messing with my fantasy.  It was Al Sharpton, dammit.

Sun, 06/15/2014 - 21:19 | 4859800 Skateboarder
Skateboarder's picture

In that moment of brilliance, I coulda swored he was the reverend hisself. ;-)

Sun, 06/15/2014 - 21:05 | 4859755 Ben Ghazi
Ben Ghazi's picture

Was his name Barry Soetoro?

Sun, 06/15/2014 - 21:25 | 4859809 stocktivity
stocktivity's picture

president

Sun, 06/15/2014 - 20:39 | 4859666 Relentless101
Relentless101's picture

http://en.wikipedia.org/wiki/Stock_market#Size_of_market

Link puts world equity market in 2012 at $55 trillion. The math and guarentees it's rigged.

Sun, 06/15/2014 - 20:22 | 4859619 Rastadamus
Rastadamus's picture

Wait, wait! I'm just an average idiot, and this does not make sense!!!!!!!!!

Sun, 06/15/2014 - 20:56 | 4859730 NoDebt
NoDebt's picture

The old argument AGAINST "money on the sidelines" was that for every buyer, there must be a matching seller.  Both are transacting in dollars that are already in circulation.

But what if the buyer had unlimited NEW, NEVER BEFORE CIRCULATED dollars to buy with?  They could push asset prices up effectively endlessly.  They don't care what price they pay, becuase they're paying with money they poofed out of thin air on a computer.

Supply and demand issues, price discovery, economic issues... all meaningless if there's always a buyer available and willing to pay more than the next guy in line.

Short version:  there are no markets any more.  Just central banks calling the shots.

Sun, 06/15/2014 - 22:50 | 4860039 Dutch
Dutch's picture

Unlimited buying power = incessant bid = record low VIX.

Sun, 06/15/2014 - 20:23 | 4859623 telefunken
telefunken's picture

So,this bubble that feeds the (high end) real estate bubble is REALLY going to burst in a big way,right?

 NO end to qe but deflation when it ( some way) ends?!

 

Sun, 06/15/2014 - 20:31 | 4859640 Headbanger
Headbanger's picture

Yep

Uh huh

You got it.

 

Sun, 06/15/2014 - 20:52 | 4859719 Calmyourself
Calmyourself's picture

If they were willing to go this far what evidence points to them not trying to physically print ie: hyper-inflation?  Deflation seems unlikely considering the mind set.

Sun, 06/15/2014 - 21:20 | 4859802 Cliff Claven Cheers
Cliff Claven Cheers's picture

I remember when we used to have daily debates and articals here about inflation vs deflation.  I think we know who won.  Interference means inflation.   The Markets are dead, long live the markets.

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