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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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Mon, 06/16/2014 - 00:28 | 4860202 CarrierWave
CarrierWave's picture

Keep the wind in your back and stay long. That's all the article really tells you.

Mon, 06/16/2014 - 00:04 | 4860210 Gadfly
Gadfly's picture

It's called runaway greed.

Mon, 06/16/2014 - 00:07 | 4860220 Gadfly
Gadfly's picture

Great idea... allowing a handfulof private individuls to own and control the money supply of the whole world.  Of course they are going to buy everything with the money they create out of nothing.

Mon, 06/16/2014 - 00:17 | 4860246 Think Like A Crook
Think Like A Crook's picture

If this is such a "gimme", why wasn't this thought of sooner?  It's bullshit concocted by the bullshit artists of today's time.

Never before in the history of mankind have any sociopaths been able to collude on any project for very long without it blowing up in ther respective faces.  It's always about paranoia and control that fukks it up.

Shit will happen again.

Mon, 06/16/2014 - 00:19 | 4860252 Schmuck Raker
Schmuck Raker's picture

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

 

 

Why don't I see the word "Fuck"?

IE: "Cluster[Fuck] Of Central Banks" Have Secretly Invested $29 Trillion In The Market

Tue, 06/17/2014 - 00:14 | 4864021 Zeta Reticuli
Zeta Reticuli's picture

You beat me to this post. :)

Mon, 06/16/2014 - 00:22 | 4860264 jharry
jharry's picture

What me worry?

Mon, 06/16/2014 - 00:37 | 4860299 TabakLover
TabakLover's picture

Hmmmmm.  Stocks will never go down because there is 'honor among thieves?".  What happens when one of the thieves decides to turn their fiat stock certificates into.............  gold.  

 

Mon, 06/16/2014 - 00:58 | 4860333 novictim
novictim's picture

Psst!  That gold might be in a warehouse in China.  Which means that it is long gone along with the copper and the rare earth minerals.

There is no truly safe commodity to hide your money in.  So you better start getting political as your right to vote is all you really have.

Going, going, goooonnnnnneeeeeee.

Mon, 06/16/2014 - 00:43 | 4860310 kurt
kurt's picture

If true, and not immediatly squashed, it's over. The real collapse will begin. You would be advised to take out your money from your brokerage account, savings and immediately buy something tangible, a store of value. The dollar, based on this story, must collapse. The numbers are too big.

If you hear of cash blowing in parking lots or the freeways what I said is absolutely true. The smart money, knowing the truth will try to get as much as they can, and in their haste, won't even remember the parcel they set temporarily on the car roof. Beware. If you see a story about cash blowing in the wind, convert to something tangible immediatly.

Next, the stores will be empty. Plan accordingly.

Mon, 06/16/2014 - 01:36 | 4860386 andrewp111
andrewp111's picture

The Central Banks (particularly the Fed) will end up owning all the land as well. They already own much of the mortgages in existence. When the crash happens, they will buy up all the land cheap, and with their status as a "Federal Agency",  they have a sovereign exemption from all State and Local property taxes, which puts an ever increasing burden on remaining private owners. Ultimately, the Fed will own all US land and be the biggest landlord in history.

Mon, 06/16/2014 - 22:06 | 4863732 grid-b-gone
grid-b-gone's picture

At least I won't be mowing or painting the trim anymore - too busy looking for food.

Mon, 06/16/2014 - 01:55 | 4860415 TeethVillage88s
TeethVillage88s's picture

If CB wanted to get out of one position, perhaps they would go (flee) to Stock Equities.

Ruminating about what position they might want to get out of. Sure Fed Balance Sheet is full of MBS which is sort of like equities in a way, but don't think that is important.

- Fed could just be adding equities to US Treasuries & MBS, right?
- A strong position in Equities could fund buying Gold
- A strong position in Equities could fund buying Petroleum Reserves, Right?
- Equities could actually be sued to buy Dictators or Tyrants too
- Equities could be used to fund US Intelligence Operations
- Equities could be used to fund New World Order
- Any Countries or Island Chains on the Market? Good Oil Reserves? Failed States with few people? Kazakhstan, Turkmenistan, Tajikistan, Kyrgyzstan, Ethiopia, Libya, Syria?
- Equities could be used to Buy back US debt, but more likely could be used to fund federal government, fund European government, CB Operations

Mon, 06/16/2014 - 02:32 | 4860444 TeethVillage88s
TeethVillage88s's picture

I guess CBs could use equities to move into US Housing Market to place Illegal Alien Migrants that are coming in, AND THAT ARE SO SORELY NEEDED IN and FOR OUR GPD (all regions poor existing home sales):

Both Housing Metrics:

-Existing home sales: down in Midwest & NorthEast
-New homes sold: down in Midwest, South, NorthEast, & West (All Regions)

http://research.stlouisfed.org/fred2/series/EXHOSLUSM495S Existing Home Sales© (2014-04: 4,650,000 Number of Units)
http://research.stlouisfed.org/fred2/series/HSN1F New One Family Houses Sold: United States (2014-04: 433 Thousands)

http://research.stlouisfed.org/fred2/series/EXHOSLUSSOM495S (good, 2014-04: 1,940,000 Number of Units), Existing Home Sales in South Census Region©
http://research.stlouisfed.org/fred2/series/EXHOSLUSWTM495S (good but flatish, 2014-04: 1,080,000 Number of Units), Existing Home Sales in West Census Region©
http://research.stlouisfed.org/fred2/series/EXHOSLUSNEM495S (way down, 2014-04: 600,000 Number of Units), Existing Home Sales in Northeast Census Region©
http://research.stlouisfed.org/fred2/series/EXHOSLUSMWM495S (Way down from 1999, 2014-04: 1,030,000 Number of Units), Existing Home Sales in Midwest Census Region©

http://research.stlouisfed.org/fred2/series/HSN1FS (way down, 2014-04: 235 Thousands) New One Family Houses Sold in South Census Region
http://research.stlouisfed.org/fred2/series/HSN1FW (way down, 2014-04: 92 Thousands) New One Family Houses Sold in West Census Region
http://research.stlouisfed.org/fred2/series/HSN1FNE (way down, 2014-04: 22 Thousands) New One Family Houses Sold in Northeast Census Region
http://research.stlouisfed.org/fred2/series/HSN1FMW (like 1980s rates, 2014-04: 84 Thousands) New One Family Houses Sold in Midwest Census Region

Mon, 06/16/2014 - 09:09 | 4860457 TeethVillage88s
TeethVillage88s's picture

---deleted----

Mon, 06/16/2014 - 03:05 | 4860463 zebrasquid
zebrasquid's picture

Circle jerk

Mon, 06/16/2014 - 03:35 | 4860481 smacker
smacker's picture

And then ... suddenly ... the CBs on behalf of the State owned everything.

Welcome to Communism, Western style.

Mon, 06/16/2014 - 04:13 | 4860501 JailBanksters
JailBanksters's picture

I thought it was Cluster of Bankers and a Clutch of Central Banks and a Gaggle of Politicians.

I know 2 Central Banks it's almost Mandatory, the third is probabably Bunde and the forth Banque De Bankrupt, after that it get a wibbly wobbly

Mon, 06/16/2014 - 04:54 | 4860517 CHX
CHX's picture

The chart looks like the blades of Ben's chopper...

Mon, 06/16/2014 - 04:59 | 4860519 Quinvarius
Quinvarius's picture

If you give someone a printing press, they will always find a reason to use it.

Mon, 06/16/2014 - 05:03 | 4860520 SmittyinLA
SmittyinLA's picture

Pure state fascism, Carol M Browner former head of the Obama EPA being appointed to the Bungy transnational agri-giant niow makes sense.

I'm guessing every fortune 500 company gets a few political hacks.

Mon, 06/16/2014 - 06:18 | 4860558 falak pema
falak pema's picture

pure oligarchy manipulated; aka private sector kings of DC kong; state fascism.

When you run the state and Supreme from behind the curtain.  

Mon, 06/16/2014 - 05:16 | 4860526 CHX
CHX's picture

Is that a surprise at this point? CB of israel has had Apple's back for a while now. The question is, is it "only" 29T ?Couldn't it be even more than that? Eitherway, just like with CBs monetization of debt, the bubbles in equities and bonds THEY created, cannot be unwound in orderly fashion, so this will just go on, until the banks that own the CBs own it all. Bravo, plan worked, or is working so far. Insanity? FUBAR. In the meantime...

http://vimeo.com/29362142

 

 

 

Mon, 06/16/2014 - 05:54 | 4860544 GFORCE
GFORCE's picture

Are you now starting to see the wood from the trees? Massive CB purchases and company buy backs ARE the market just now. If it continues going higher then retail will jump on the bandwagon. If you think we can't go higher in equities you will be wrong and this good news/bad news, hoping for a crash everyday won't work. Yes, there will be pain one day, but don't fight this trend.

Mon, 06/16/2014 - 08:55 | 4860551 falak pema
falak pema's picture

The situation in Iraq looks a lot like the financial strategy of the financial cabal.

Past momentum has led the CB cabal protecting the Oligarchs; as Pax Americana MIC, and their surrogates, have protected the sacred oil patch; into a box canyon : damned if you do damned if you don't.

Deep into denial that the P/E rato is NO indication of whats up ahead; as is the situation in Bagdad not deemed as warranting  to change the mindset that spawns the type of DENIABILITY Hype Tony Blair publicly airs to pretend in the past he was doing God's work. 

The CBs have the same impression : God wills it! 

Makes you wonder if God is not doing what the Devil wants him to ! 

Jesus be Jesus, who is who ?

And as ICing on the cake : Mad Boris of London says of Tony Blair's latest messianic denial : Tony is madder than I am. How can he pretend he was faking his orgasm at Saddam's death. Just like he is faking his innocence today about the cause of ISIS blowback.

Now that is like kettle calling the pot, Pol Pot. Amen and QED.

Mon, 06/16/2014 - 06:27 | 4860562 orangegeek
orangegeek's picture

The word investing used in the article is hardly the case.

 

Print and buy anything that moves is more like it.

Mon, 06/16/2014 - 06:28 | 4860563 RaceToTheBottom
RaceToTheBottom's picture

I guess this means that QEn is not being tapered?  LOL

Mon, 06/16/2014 - 06:57 | 4860596 Everybodys All ...
Everybodys All American's picture

Nope. I guess we know who Belgium is now. They will come up with some new terminology. Just wait and see. Got to keep the CNBC viewer/investors mesmerized.

Mon, 06/16/2014 - 06:33 | 4860568 litemine
litemine's picture

It's too bad that some of this money Made Stolen by non productive means didn't go towards peace and pay the outstanding Bill to Russia for the OIL/Gas they have used. Seems they want control over companies because they know that where the Value is .....assets . Do not fig for the Central Bankers Profits.....and let the sons and Daughters fight as their families are the few that profit from war.

Mon, 06/16/2014 - 06:37 | 4860576 Wahooo
Wahooo's picture

Now I understand what they mean by "money on the sidelines" coming into the market.

Mon, 06/16/2014 - 06:45 | 4860585 overmedicatedun...
overmedicatedundersexed's picture

an odd thought, why have there been no tell all books by ex FED employee?? that group would make the mafia rank and file look like chatty school girls.

Mon, 06/16/2014 - 21:18 | 4860747 deflator
deflator's picture

It is called a security clearance. If you violate your security clearance you are subject to large fines and jail time in Leavenworth. They will take everything. 

 Yeah, they write all that shit down on a piece of paper you have to sign but their actual words are, "We will come down on you like a ton of bricks".

Mon, 06/16/2014 - 06:52 | 4860589 EJCB
EJCB's picture

Yeah, but how much can they still put in? Someone daring to short the market!??

Mon, 06/16/2014 - 07:01 | 4860602 general ripper
general ripper's picture

If 29 T is a true number, or anything close to a true number, then my question becomes why isn't the dow 35,000. A large part of the recent upswing is companies buying back their own stock. If you add 29T i mean, WTF. Shouldn't the market be much higher? Imagine where DOW would be if none of this happened, back to 600?

Also, these are not markets any more. They are synthetic financial instruments developed to hold up a stock market while it is looted by HFT's and other vermin.

Mon, 06/16/2014 - 07:03 | 4860605 bwh1214
bwh1214's picture

Does anyone else consider that this means much of the run up has been caused by a buyer that won't sell if there is a pull back? 

Mon, 06/16/2014 - 07:16 | 4860619 AdvancingTime
AdvancingTime's picture

Then they would be trapped if prices drop and lose most their money. We must then ask what are the implications of a crash.

Mon, 06/16/2014 - 08:34 | 4860762 NoWayJose
NoWayJose's picture

You cannot be trapped if no one else gets to see your balance sheet.

Mon, 06/16/2014 - 08:51 | 4860805 headhunt
headhunt's picture

1214 - I think that is called a Ponzi scheme, they can't sell because their imagined investment wealth has no buyer big enough to buy it all.

I suppose they could print more dollars and buy it off themselves... wait - what?

Mon, 06/16/2014 - 09:34 | 4860943 jay28elle
jay28elle's picture

I see absolutely no reason for these entities to do anything but continue lifting the market. Everyone is growing numb to all this talk of manipulation and, frankly seem to be welcoming this as the new normal.  Afterall, it inflats the middle class' 401Ks and creates the talking points that this pres reversed the economy - "just look at the stock market".  The no-information and low-information voters (and savers) are much more comfortable with thier 401k's going up instead of knowing the truth/reality and potentially seeing their 401k's become 201k's again.

And of course the brilliant scientists in govt have apparently found a way to defy gravity.  Ha! Ain't no such thing anymore if we don't want there to be... the market can go up and never come down.

Mon, 06/16/2014 - 07:17 | 4860620 AdvancingTime
AdvancingTime's picture

To say the market is rigged is an understatement. After over 30 years of trading commodities I will flat out state without any reservations that lies and manipulation run rampant. If you think anyone is looking out for the small independent trader you are wrong. An unholy alliance of the Federal Reserve, the government, and the too big to fail has left the rest of us in a precarious position.

For the big boys, its insider information and computer trading, this includes computing patterns that exploit where stops are placed, this improves their ability to wash the weak out of their positions. The bottom-line is that the higher the market goes the more vulnerable it becomes to a major collapse and sudden downward move. More on this subject in the article below.

http://brucewilds.blogspot.com/2013/07/markets-more-lies-and-munipulatio...

 

Mon, 06/16/2014 - 07:26 | 4860633 spanish inquisition
spanish inquisition's picture

Big deal. What effect will $29T have? It's not like they are rehypothocating the money that they created out of thin air 30 to 100 times.......

 

Mon, 06/16/2014 - 07:46 | 4860658 Comte d'herblay
Comte d'herblay's picture

The obvious, as conspiratorial as it sounds, is the only alternative once all the other scenarios have been vetted.

Let's say that as a silver tongued con man, I was able to give everyone I know, complete strangers I don't much like, my enemies, everyone I came into contact with an I.O.U for every product or service I would ever need desire, lust after or simply want to possess so someone else couldn't have it, like, say, a Picasso rendering of hillary clinton.

Now.  Let those things above represent all the promised pensions, health care, 401ks, SEPS, other social insurance programs that have passed into law, like Social security and it's obligatons. 

As Comte one day will come into his energetic dotage, with at least another 40 years of life to live without the burden or reporting to the man for a job, he must be paid the promises made to him in one or more of the above institutional deferred compensation programs used to bribe him into giving 50 years of his life in a business, a career, a government make work patronage 'job'. 

How would the entities that issued those I.O.U's begin paying out the monthly checks IF there were only enough new entrants into the work force----from whose paychecks is (are?) deducted a variety of taxes, fees, and other voluntary contributions---- to replace what the entities must pay out each month? 

Here's how:  Re-read the headline of the above ZH blog post about the CBs printing several trillion of various countries currencies for purchases (and sells) securities.  

Now, add in what is not being reported about the Insurance companies (invisible Banksters, with less tax obligations due to a rare jewel in their balance sheets offered to no other for-profit corporations, sweeet) called Reserves for Future Claims (this is calculated using 1000x derivative, and is completely legal) a Long term liability.

And then raise an eyebrow at the measly 29 Trillion quoted above, and multiply it by 10 or more to get the real figure that the ECBs are going to print over the next 100 years to pay off the elderly, infirm, insane, and other billions that will no longer produce anything but CO2. 

This is so easy to do with a "Coincidence of Interests" working daily to do it by a few dozen Skype connected Oligarchs in a dozen countries that it almost makes blowing bubbles look like trying to calculate Pi to infinity. 

There is so little downside to doing this, actually, if you are a J Yell, all you need is a Ipad, an Iphone with 4g, or an old, used, $5.00 laptop, an internet connection, a few dozen User IDs and Passwords, and a numerical key pad, and VIOLA!!!   Done!!! that anyone who is sentient would have to be really obtuse to deny it could ever happen. 

So. Rest easy all alive now and those to come in the next at least dozen generations, watch the indexes and BTFD, STFS.

Or do a neutral straddle and you to will be a playuh, might even make a little extra money for your porn downloads on the LBFMs channels. 

Mon, 06/16/2014 - 07:47 | 4860659 Hubbs
Hubbs's picture

What if the derivatives market backfires and ignites? Won't these CBs have to liquidate stock positions to raise money?

Mon, 06/16/2014 - 08:31 | 4860750 NoWayJose
NoWayJose's picture

Central banks never have to sell to raise money - they either print more or just add a zero to their balance sheet.

Mon, 06/16/2014 - 08:44 | 4860788 headhunt
headhunt's picture

Throw another trillion dollars on the fire, the VIX is getting cold.

Tue, 06/17/2014 - 01:24 | 4864095 MsCreant
MsCreant's picture

The printing makes me think of the clay cookies they eat in Haiti to keep from feeling hunger. Not real nutrition for the economy, just feels like it fills the void in the short term. In the long term, there is much starving and no growth, only wasting away.

Mon, 06/16/2014 - 07:51 | 4860669 Downtoolong
Downtoolong's picture

Funny, how central banks keep looking for signs of inflation, but, refuse to include the stock market in their analysis.

Clearly this is where most of the new money they printed ended up. The stock market rise in the last few years is investment price inflation.

Mon, 06/16/2014 - 08:42 | 4860778 headhunt
headhunt's picture

"investment price inflation" sounds a little too wise for these knuckleheads, more like gambling price inflation.

'Let it ride...'

Mon, 06/16/2014 - 08:33 | 4860757 Pig Circus
Pig Circus's picture

My buddy called me on this this morning. He reminded me that from 2010 thru 2013 I use to ask him everyday "where the fuck is all the money coming from" that was fueling these daily rallies.

Now we know... Fucking criminal cocksuckers. Had we known maybe we would have throw all fundamentals aside and went along for the ride. We obviously knew about QE but also knew that wasn't enough for the gains we were seeing.

So the news is out now what? I don't know, some commentor claims it's menas you have go long. Well, that's only if you believe the CB's will want to own 90% of this market. Maybe they only get to 90% if we finally see massive selling which makes it a wash. Will they ever sell? I don't see how.

They have fucked this market up so bad. Almost 30 years I've traded and for the last few I have wanted nothing to do with it. They can have their rigged ponzi market, I want nothing to do with it. Good luck.

Mon, 06/16/2014 - 21:25 | 4863594 yogibear
yogibear's picture

The only thing that would screw the Fed is a collapse of the dollar.  

So many people couldn't afford to eat at that point.

Mon, 06/16/2014 - 08:39 | 4860768 headhunt
headhunt's picture

This will end well.

When imaginary money is the driver of the markets worldwide the apparently unimaginable crash is inevitable.

Mon, 06/16/2014 - 08:41 | 4860775 whidbey-2
whidbey-2's picture

The outcome is just a matter of time. a world wide crash.  Physical gold is beginning to look like the currency of last resort.  If this story is true, and it proabably is, it means we have no alternatives except to look for value outside the lawful markets and start a preservation society.  Get out of the market and look for enclaves to survive in. Do it soon too. 

Mon, 06/16/2014 - 08:58 | 4860823 Quaderratic Probing
Quaderratic Probing's picture

"conspiracy fact - Central Banks around the world are buying stocks in increasing size." Buying in increasing size .... in no volume market My Bullshit alarm is going off

Mon, 06/16/2014 - 09:38 | 4860953 Sandy15
Sandy15's picture

Yea, they are pretty much the only volume.  Don't you get it.  Look at ES future contracts, someone is buying calls/puts so far out of the money it makes NO SENSE.  CB collaborate with each other to equally have winning and losing trades, to keep the market a float to hide the real damage they've done to the economies.  It's their way of saying, "Communism works".

Mon, 06/16/2014 - 22:00 | 4863690 deflator
deflator's picture

 They don't care what ism it is as long as it is in their best interest. 

 They dont care if it is socialism, libertarianism, communism or any other ism as long as it meshes with their goals. That way everybody that is tied to their little ism gets a little win every now and then.(as long as it meshes with their goals) More importantly, everyone stays focused on their little ism and not their theft. 

Mon, 06/16/2014 - 09:26 | 4860917 shovelhead
shovelhead's picture

The counterfeiters own the cops. They're going balls out and don't give a shit because there's not a damn thing anybody's going to do about it.

Who gives a shit if the paper drops 50-75% in value when you own title to the real goods?

You do, because you don't own a printing press.You have to earn money, so to us, we place a value on it. To a counterfeiter it's ultimately just paper and ink. Converting nothing into something by buying equities after they picked the selling debt carcase clean.

But they don't care about you. You're stuck having to buy what they own. Maybe these guys aren't so stupid after all.

Money for nothing and the chicks for free.

Mon, 06/16/2014 - 09:36 | 4860948 sschu
sschu's picture

If they buy equities now, why not excess ipads or autos next?  sschu

Mon, 06/16/2014 - 09:44 | 4860967 astoriajoe
astoriajoe's picture

I remember as a younger person I used to wonder what sort of circumstances would be required before we can have a really monumental unraveling. I think I'm beginning to get a pretty good idea.

Mon, 06/16/2014 - 09:51 | 4860971 astoriajoe
astoriajoe's picture

Its funny, if you combine this news, with the stuff that Bix Weir and others are talking about with the DTCC fraudulent securities floating around, then I begin/s to think that we may have some rough seas ahead.

Mon, 06/16/2014 - 21:07 | 4863528 zstard
zstard's picture

What is up with Bix Weir. He seems to be saying that Alan Greenspan is our saviour and he has been planning our redemption all along. That's got to be bull shit.

Mon, 06/16/2014 - 09:51 | 4860992 astoriajoe
astoriajoe's picture

I was thinking about taking delivery of my stock, but it seems like doing so there is a non-zero chance that I personally would be the catalyst to implode the system.

Mon, 06/16/2014 - 09:51 | 4860997 deflator
deflator's picture

 Equities are the new weapons of (financial) mass destruction.

Mon, 06/16/2014 - 10:27 | 4861094 RabbitOne
RabbitOne's picture

A first thought many ZH’ers have said is “…So What? Big deal....” The answers is: Yes it is a big deal. The objective of central banks since 2008 is to artificially prop up the world economies and markets so they can buy time. Time so Bankster’s, Big Money and Government officials can transfer their fiat based holdings to the voters, suckers or the little guy.

 Fiat transfer is not hard. For example big money sells fiat asset in the market, government prints fiat money and then central bank buys the big moneys asset back to cover them. Then big money uses the fiat money from the sale to buy physical items that will hold most of its value in the coming total fiat collapse.

 In this scenario Bankster’s, Big Money and Government officials quietly go off into the sunset buying into physical entities (gold, silver, land, resources,…) so when the total collapse really hits they won’t take the hit. It will be the tax payer holding fiat based monetary objects (stocks, government bonds and government backed assets) who will get slammed when the fiats are devalued or eliminated in the total fiat collapse. …

Mon, 06/16/2014 - 11:54 | 4861431 tommylicious
tommylicious's picture

this is shocking.  what the hell happens and when?

Mon, 06/16/2014 - 12:55 | 4861641 earleflorida
earleflorida's picture

'we have no moar tulips today... just bananas?'

Mon, 06/16/2014 - 16:22 | 4862559 Vin
Vin's picture

I don't think so.  The banking families are buying these equities with counterfeit money that they simply print.  What the hell do they care what the price is.  When all is said and done, they will own all the major companies of the world, bought with monopoly money.  They don't intend to "get out".  When the bottom falls out of the dollar, they'll still own the "means of production" regardless of what anyone things it's "worth". 

Mon, 06/16/2014 - 19:09 | 4863152 SweetDoug
SweetDoug's picture

'

'

'

I'm stunned.

I heard the rumours of this on 'Hedge a couple of years ago, and knew it was true. It fit.

And now, we've got the evidence.

And nobody is talking about this. Argueably, the biggest financial story of the year, if not the decade?

And nothing but crickets…

I told my Mudda, and she just whistled.

This is not going to end well.

We're sitting on cash. We've missed the rally. Years of it. Sucks to be us.

But when it ends, it's going to be like a knife falling.

The reset will happen.

It will be brutal. Fortunes will be lost.

Fortunes will be made, by those who are patient.

 

•J•
V-V

Mon, 06/16/2014 - 20:30 | 4863410 BenwaBall
BenwaBall's picture

bahahah

 

the graph for world GDP range is 2.75 to 3.15

 

OMFG LOOK AT THAT CLIFF DROP!

 

wtf @ this entire website.

Mon, 06/16/2014 - 21:14 | 4863561 deflator
deflator's picture

government spending is included in gdp, so is healthcare, again government spending. exclude it then get back to us on your wtf.

Tue, 06/17/2014 - 03:29 | 4864178 CHX
CHX's picture

That's nominal govermint-massaged GDP. Adjust for all the money printing and in real terms things look not quite as bright, but that's just my opinion, right?

Mon, 06/16/2014 - 21:50 | 4863676 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

double post.

Mon, 06/16/2014 - 21:49 | 4863678 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

Well, at least this starts to answer a few questions....

It's amazing that we had a Michael Lewis Book about the markets being "rigged"; while he was correct, they are rigged, the book was essentially about a red herring of an issue, HFT front running. Ok, sure that's wrong, but not a real picture of what's going on with our financial markets from a perspective of getting to the heart of the matter. If he actually wanted to write a book about markets-that-are-rigged, this is the topic that should have been covered. But instead this issue will only be an obscure article lost in the infinite flow of news bits. 

Tue, 06/17/2014 - 14:18 | 4866017 MeelionDollerBogus
MeelionDollerBogus's picture

Sometimes that's a hard choice: a sensational story that will lead to nailguns and whistleblowers, or a story that's still about illegal activity that you can solidly prove, that maybe a ton of people won't give 2 shites about.

Mon, 06/16/2014 - 23:28 | 4863949 general ambivalent
general ambivalent's picture

Starbucks is going to pay its employees' college tuition. That should be worth a good 100 or 200 trillion easy.

Things are on the up!

Mon, 06/16/2014 - 23:33 | 4863955 Magooo
Magooo's picture

Yes everything is manipulated --- but we are failing to ask the RIGHT QUESTION.

 

Is it because the rich want to get richer?  

 

Give me a break --- does anyone honestly think that a billionaire would want a situation like this --- sure they add a few billion to their nett worth but at what price? When this fucker blows the global economy blows to pieces... and they will be totally crushed along with the rest of us.

 

Is it because Bernanke/Yellen are stupid?

Again -- get real -- a retarded, blind, deaf and dumb 6 year old could see that buying the stock market to the tune of 29T is going to end in disaster.

 

So WHY are they doing this shit?

 

I will tell you why --- because we have hit the end of growth - the global economy does not like $100+ oil.... we are OUT OF CHEAP OIL.

 

And here's the proof:

 

HIGH PRICED OIL DESTROYS GROWTH

According to the OECD Economics Department and the International Monetary Fund Research Department, a sustained $10 per barrel increase in oil prices from $25 to $35 would result in the OECD as a whole losing 0.4% of GDP in the first and second years of higher prices.  http://www.iea.org/textbase/npsum/high_oil04sum.pdf

 

 

Tue, 06/17/2014 - 14:08 | 4865955 MeelionDollerBogus
MeelionDollerBogus's picture

All costs are relative.
It doesn't matter what is the peak or when collapse happens or how bad it is: all that matters is that peons & slaves are not permitted to escape nor to climb up to a higher level of safer ground. Ever.
This entire operation is scaled to keep minions breeding slaves that will work for Brawndo and Carl's Jr. scraps and love it.
Central Banks - the Freedom Mutilators.

Tue, 06/17/2014 - 03:23 | 4864169 CHX
CHX's picture

Which leaves us wondering where are the central bank 13Fs?

 

...some ARE more equal.

Tue, 06/17/2014 - 03:26 | 4864172 Cthonic
Cthonic's picture

For more amazing details, just send your monies to our Caymans PO Box.

 

Global Public Investor (GPI) 2014

June 2014

 

The report, focusing on investments by 157 central banks, 156 public pension funds and 87 sovereign funds, underlines growing similarities among different categories of public entities owning assets equivalent to 40% of world output.

 

It is published by the Official Monetary and Financial Institutions Forum (OMFIF), a global research and advisory group, with the support of DZ BANK and Quantum Global group.

 

Hardcopy (single user): 350GBP

To purchase a copy of this report email sales@omfif.org stating your name, company, address, and if you want a PDF or hardcopy.

 

Tue, 06/17/2014 - 03:35 | 4864186 CHX
CHX's picture

Kyle Bass: "OK, gimme dagold"

Tue, 06/17/2014 - 14:01 | 4865908 MeelionDollerBogus
MeelionDollerBogus's picture

CTV: unlike dollars, gold is backed by nothing! http://www.youtu.be/BiXIs3bbETA

Tue, 06/17/2014 - 03:42 | 4864192 jubber
jubber's picture

another MASSIVE overnight ramp in US futures against a backdrop of failure in Iraq, send European stocks f up with it, Gold & Oil knocked down, as ALL geopoliyical risk is ignored

Tue, 06/17/2014 - 08:00 | 4864333 Dragon HAwk
Dragon HAwk's picture

And Why was this News Thread pulled from ZH feed ?

 

Tue, 06/17/2014 - 10:33 | 4864918 waterwitch
waterwitch's picture

Might all of this help to explain the rash of banker 'suicides' (i.e. they were on the verge of spilling the beans)?

Tue, 06/17/2014 - 13:56 | 4865878 MeelionDollerBogus
MeelionDollerBogus's picture

shhhh! It's a secret! Not one of us saw this coming. Nopers :)

Tue, 06/17/2014 - 20:32 | 4867405 anthonymaw
anthonymaw's picture

Central banks of China and Russia are stockpiling physical gold as fast as they can, and tightly control their curriencies and economies, meanwhile USA, EU prints fiat money out of nothing to hand out to the masses (a.k.a. "Easing") to keep their "democratically ruled" masses happy.

Democracy and Capitalism don't mix.

Fri, 06/20/2014 - 12:42 | 4878326 devo
devo's picture

Corporations, not central banks, are buying back shares. Figure out when that ends and you figure out when (a) CBs do start to buy or (b) when it all collapses

Wed, 06/25/2014 - 00:20 | 4892117 Decimus Lunius ...
Decimus Lunius Luvenalis's picture

Gold, equity shares, debt, etc., etc., means fuck-all.  When it comes to national power, the only thing that matters is a monopoly on violence.  So long as the US can maintain a monopoly on violence, it can maintain a monopoly on everything.  That is why, at its heart, the US government is a police organization first and foremost.  

Sun, 06/29/2014 - 23:40 | 4908730 Magooo
Magooo's picture

ASK THE BIG QUESTION - Why are they doing this?

 

HIGH PRICED OIL DESTROYS GROWTH

According to the OECD Economics Department and the International Monetary Fund Research Department, a sustained $10 per barrel increase in oil prices from $25 to $35 would result in the OECD as a whole losing 0.4% of GDP in the first and second years of higher prices.  http://www.iea.org/textbase/npsum/high_oil04sum.pdf

 

Now ask - what does a sustained price of oil over 100 dollars do to growth?

 

And now you have your answer

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