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"Cluster Of Central Banks" Have Secretly Invested $29 Trillion In The Market
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.
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The report, seen by the Financial Times, identifies $29.1tn in market investments, including gold, held by 400 public sector institutions in 162 countries.
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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.
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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.
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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Keep the wind in your back and stay long. That's all the article really tells you.
It's called runaway greed.
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.
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.
"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
You beat me to this post. :)
What me worry?
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.
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.
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.
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.
At least I won't be mowing or painting the trim anymore - too busy looking for food.
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
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
---deleted----
Circle jerk
And then ... suddenly ... the CBs on behalf of the State owned everything.
Welcome to Communism, Western style.
EU Buying ASB Securities:
http://www.bloomberg.com/news/2014-06-15/ecb-seen-buying-assets-within-a...
Chinese Banks buy stocks
http://www.bloomberg.com/news/2014-06-16/china-s-stock-index-futures-lit...
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
The chart looks like the blades of Ben's chopper...
If you give someone a printing press, they will always find a reason to use it.
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.
pure oligarchy manipulated; aka private sector kings of DC kong; state fascism.
When you run the state and Supreme from behind the curtain.
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
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.
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.
The word investing used in the article is hardly the case.
Print and buy anything that moves is more like it.
I guess this means that QEn is not being tapered? LOL
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.
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.
Now I understand what they mean by "money on the sidelines" coming into the market.
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.
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".
Yeah, but how much can they still put in? Someone daring to short the market!??
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.
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?
Then they would be trapped if prices drop and lose most their money. We must then ask what are the implications of a crash.
You cannot be trapped if no one else gets to see your balance sheet.
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?
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.
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...
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.......
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.
What if the derivatives market backfires and ignites? Won't these CBs have to liquidate stock positions to raise money?
Central banks never have to sell to raise money - they either print more or just add a zero to their balance sheet.
Throw another trillion dollars on the fire, the VIX is getting cold.
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.
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.
"investment price inflation" sounds a little too wise for these knuckleheads, more like gambling price inflation.
'Let it ride...'
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.
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.
This will end well.
When imaginary money is the driver of the markets worldwide the apparently unimaginable crash is inevitable.
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.
"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
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".
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.
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.
If they buy equities now, why not excess ipads or autos next? sschu
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.
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.
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.
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.
Equities are the new weapons of (financial) mass destruction.
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. …
this is shocking. what the hell happens and when?
'we have no moar tulips today... just bananas?'
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".
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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
bahahah
the graph for world GDP range is 2.75 to 3.15
OMFG LOOK AT THAT CLIFF DROP!
wtf @ this entire website.
government spending is included in gdp, so is healthcare, again government spending. exclude it then get back to us on your wtf.
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?
double post.
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.
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.
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!
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
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.
Which leaves us wondering where are the central bank 13Fs?
...some ARE more equal.
For more amazing details, just send your monies to our Caymans PO Box.
Global Public Investor (GPI) 2014Kyle Bass: "OK, gimme dagold"
CTV: unlike dollars, gold is backed by nothing! http://www.youtu.be/BiXIs3bbETA
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
And Why was this News Thread pulled from ZH feed ?
Might all of this help to explain the rash of banker 'suicides' (i.e. they were on the verge of spilling the beans)?
shhhh! It's a secret! Not one of us saw this coming. Nopers :)
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.
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
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.
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