A Quick Reminder Of The Only Thing That Matters, In One Chart

Tyler Durden's picture

Over the weekend, one of JPM's best strategists, Nikolaos Panigirtzoglou, looked at global liquidity and concluded that "the current episode of excess liquidity, which began in May 2012, appears to have been the most extreme ever in terms of its magnitude and the ECB actions have the potential to make it even more extreme." Curious why? Read the key note excerpts here. But more to the point, for anyone lamenting "stingy", tapering central banks or whatever, here is one chart that should put everything in perspective, and explain why the world has reached a plateau of permanent addiction to monetary liquidity injections, and why nothing else matters.

Oh, and good luck with that "Fed is about to raise rates" stuff...

Source: "JPM

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GetZeeGold's picture



Nothing can stop us now!

Headbanger's picture

Nothing else matters..

Until it does!

lordylord's picture

The State in partnership with central banks exist for one reason.  To enslave you.  Wake up people.

Headbanger's picture

But the people WANT to be enslaved so they don't need to think for themselves


GeorgeWKush's picture

Indeed. That is one of many fundamental problems with democracy.

BaBaBouy's picture

Paper Fiat "Monies"...

What Is All This Shit, Its Paper Bonds, Not Even Paper Anymore, Its Just
DATA On Some Hardrives Existing In BITS and BYTES.

Is This What Represent VALUE Now???

Fucking RUN To GOLD...

Bastiat's picture

And precious metals go down?  How can this go on?  What do they think is the end game?  Is it war with the BRIC gold accumulators?

Bastiat's picture

Just looking at the chart you notice that the Pound lasted longer than the Franc and the USD has not yet lasted as long as the Franc, let alone the pound. 

The chart is good for making the point that all reserve currencies have come and gone but the chart itself doesn't say when.

Other circumstances seem to say the end is nearing though with the (mostly) BRIC non-dollar energy and commodity deals . . and the continued US press towards coercion and war leaves the hint of desperation in the air, which supports that.

whstlblwr's picture

It's clear where this leads...EXTINCTION

messymerry's picture

Yo Bastiat,

War is problematic.  Maybe the BRIC nations will just hunker down and try to wait US out.  We are doing a fine job of destroying ourselves.  Possible scenario:  BRICs accumulate as much PMs as possbile durig this extended fire sale.  Then they just wait for US to self-destruct, then they come in with a solution to global governance.  Not a shot fired and the US has toasted itself.  I think Ferguson is just a teensy little taste of things to come. 

OBTW:   There was a huge discussion about the behaviors during the Ferguson riots.  Please note:  Riots are petit wars.  What is the purpose of war?  To kill poeple and destroy things.  Nothing more.  The side that kills the most and destroys the most wins.  You shouldn't expect any behavior other than killing, looting, and wanton destruction.  That is the nature of wars, petit and grande. 

SoilMyselfRotten's picture

U$D almost 84.00, scary, but thankfully i'm a strong dollar guy.

Badabing's picture

Do you remember the first QE it was called a bailout back then in 2008.
Our buddy Hank Paulson scared the shit out of the house by threatening imminent anarchy it was TEOTWAWKI for the bankers not Main Street.
He said we need $75 billion to set things back on track. The consensus was NO, but after $15 billion more in pork barreling for things like nascar and bow arrows the bailout was passed with a stipulation that no questions be asked and no audit,too the publics disapproval. When the bill was passed, at that moment, the bankers power super-ceded all governing entities. After that, we became desensitized to the status quo of regular QEs and it dropped out of the lime light and became the norm.
We the people have been sold out to the new fantasy reality our new finance oxymoron system. As long as we play by their rules It will never end.
Is this what you want?

messymerry's picture

Badabing, DUDE!  That is a super fine avatar you've got there.  Verrrry creative!!! 

Sorry to be such a doomsayer, but we are not just giving birth to a new age which in itself is a bloody and painful enogh business.  We are also experiencing a sort of perfect shitstorm.  This is one of my standard arguments:

The population curve and the technology curve can be superimposed almost perfectly.  They both describe an exponential curve that for all intents and purposes looks like an asymptote.  We are currenlty my friend, on the vertical part of those two curves.  Some argue that these will taper off to a plateau and others argue that there will be precipitous fall back to a more sustainable level.  So, it would look like a giant spike with the decline mirroring the rise to the point of sustainability.  Humanity will endure this, but it will be cathartic at the least. 

I'm optimistic for the future, but we have a shitstorm to get through before we hit smoother water.  A lot of people are giong to die and the world will look very differrent when it all washes out.  Flee the cities and prepare yourselves and your families as best you can.  This "cleanimg of the balance sheet" could begin at any time.  Of one thing I am certain:  It will happen and it will happen soon. 

OBTW:  Emptied my pockets of change last evening and there were two nickels in the pile.  They were both 1984 nickels.  I think I will save them....as a reminder. 

ebworthen's picture

"Reality is nebulous, our binary data is tangible."  That is the goal.

You and I are disposable, the plantation owners watch us work.

We work, they lounge.  We suffer, they soiree.  Slavery by any other name.

Duke of Earl's picture

Democracy is the worst form of government, except for all those other forms that have been tried from time to time.


JRobby's picture

"Assets" LOL

They are until they aren't

It works until it doesn't

Ahhhh, Monday!

A Nanny Moose's picture

Critical thinking is outsourced

Divided States of America's picture

I dont understand why with all the injection of liquidity, the most worthless assets like a share in corporate company is experiencing inflation at a faster pace than something tangible (and store of wealth like precious metals) and something edible (and necessary like food - albeit we know that the quality of food is going down so fast that I have stomach problems every week from the food I eat outside). I know this maybe the CBs intentions but something just dont add up which means that we will get a nasty surprise down the road.

Headbanger's picture

The equity """markets""" can and will crash regardless and because of these lofty levels of central bank asset holdings

Just the Wilshire 5000 total asset value is about $21 trillion now (if 1 point = $1 billion) which is about twice the current CB asset holding shown above.

Which means the bulk of equities are still held by non CB "investors" who can dump their shares in a panic and there's nobody else to buy them now that the central banks are all in.

JRobby's picture

"I dont understand why with all the injection of liquidity, the most worthless assets like a share in corporate company is experiencing inflation at a faster pace than something tangible"

You define the "current" reality. That is what it is. Until it isn't.

Oquities's picture

the stock of a debt-free company is worth more than any bond

the stock of a producing company is worth more than a fallow commodity

DetectiveStern's picture

The fact there are no debt free companies is the main issue here.

PeeramidIdeologies's picture

Behold the elegance of our predicament! This limbo, as is SEEMS, where nothing is right, yet nothing is wrong (to the uninitiated) is providing cover for the great transition. As everyone knows there are certain groups who will always front run the "disasters" that SEEM to naturally occur. These periods are all about repositioning without attention.

If it SEEMS too obvious, it most likely is.

quasimodo's picture

What's that? Joan Rivers died?

Oh the humanity!

You were saying?,........

Dame Ednas Possum's picture

This is the same lordylord advocating that we have faith in our elected officials only 2-3 days ago on the thread about mainstreet Ronnie and 'nail the number'


What about Gary Johnston the saviour lordylord?

Ha...yet another missing sarc tag

remain calm's picture

The CB's can not stop now,they are to that point analogous to the moment just before you ejaculate, you're commtted. Lets face it lots of people are going to get creamed.

NoDebt's picture

Now there's a Monday morning visual for you.

Al Huxley's picture

Spoiler alert - they're filming and starring in a snuff film.

fockewulf190's picture

Worse than all that, Yellin is playing herself in the main role.  Gotta get that visual out of my mind... and quick.

Pooper Popper's picture


Stack it and get to the range often!

101 years and counting's picture

$11 Trillion in "Assets" to go with the $15 Trillion in Liabilities.  

Chupacabra-322's picture

How about $200 Trillion in Pensions & unfounded Liabilites.

JRobby's picture

How many trillion in derivatives? Yes it is notional, but their presence distorts traditional market drivers.

Chupacabra-322's picture

My mistake. The figure is actually $205 Trillion as of February 2014.

The $205 trillion fiscal gap is enormous. It’s 10% of the present value of all future GDP. Equivalently, it corresponds to 10% of GDP year in and year out for as far as the eye can see. To raise 10% of GDP each year we could (a) raise all federal taxes, immediately and permanently, by 57%, (b) cut all federal spending, apart from interest on the debt, by 37%, immediately and permanently, or (c) do some combination of (a) and (b).


ebworthen's picture

That gives "unsustainable" a whole new meaning.

Kirk2NCC1701's picture

Given that everything is done by fiat these days in USSA and its NATO fiefdoms, and that Currency is just "digital fiat"...

Balancing the two is not so difficult:  You make fiat changes to the Liabilities, or fiat "acquisitions" of Assets.  QED.


order66's picture

Solid market foundation. Time to load up on TF.

pods's picture

That is fugly, as are all the other charts from the FED.  So ugly that you cannot begin to understand how things behave in this situation.

I do imagine that if the music stops, the forecast is a 100% chance of raining bankers.  


XRAYD's picture

Whose "Ass"ats?

PerkyPooper's picture

nothin but blue skies!

TeamDepends's picture

Look at those "assets" go! Meanwhile, the common man gets a liquidy injection up the backside.

AccreditedEYE's picture

ProTip: Stocks cannot go down until this regime changes. (AKA Shorting stocks = burning $)

Dr. Engali's picture

They'll own it all before this is overwith, and they will have "paid" for it with worthless digital fiat.

Dame Ednas Possum's picture

They'll try...but they'll have to prise my stack from my bloody, cold grip.

JimS's picture

Nah. They'll just surround your house with a large SWAT team and riddle your house with all those bullets that they have been amassing for the last few years. You may hit one or two with your return fire, but, alas, they've got fairly good body armor and you probably don't.

Perfecthedge's picture

The Sky is the limit!