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A Quick Reminder Of The Only Thing That Matters, In One Chart
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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Nothing can stop us now!
Nothing else matters..
Until it does!
The State in partnership with central banks exist for one reason. To enslave you. Wake up people.
But the people WANT to be enslaved so they don't need to think for themselves
Indeed. That is one of many fundamental problems with democracy.
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...
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?
which will soon lead to the next step in this chart:
http://azizonomics.com/2012/01/04/a-history-of-reserve-currencies-in-one-graph/
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.
It's clear where this leads...EXTINCTION
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.
U$D almost 84.00, scary, but thankfully i'm a strong dollar guy.
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?
http://youtu.be/Z7BuQFUhsRM
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.
"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.
Abolition of Man.
well on track
relax, Rex
Democracy is the worst form of government, except for all those other forms that have been tried from time to time.
--Churchill
"Assets" LOL
They are until they aren't
It works until it doesn't
Ahhhh, Monday!
Critical thinking is outsourced
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.
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.
"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.
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
The fact there are no debt free companies is the main issue here.
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.
What's that? Joan Rivers died?
Oh the humanity!
You were saying?,........
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'
http://www.zerohedge.com/news/2014-09-05/people-wall-street-arent-seeing...
What about Gary Johnston the saviour lordylord?
Ha...yet another missing sarc tag
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.
Now there's a Monday morning visual for you.
Spoiler alert - they're filming and starring in a snuff film.
Worse than all that, Yellin is playing herself in the main role. Gotta get that visual out of my mind... and quick.
Winning!
Stack it and get to the range often!
$11 Trillion in "Assets" to go with the $15 Trillion in Liabilities.
How about $200 Trillion in Pensions & unfounded Liabilites.
How many trillion in derivatives? Yes it is notional, but their presence distorts traditional market drivers.
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).
http://dailyreckoning.com/205-trillion-in-unfunded-liabilities/
That gives "unsustainable" a whole new meaning.
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.
/s
Solid market foundation. Time to load up on TF.
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.
pods
Whose "Ass"ats?
nothin but blue skies!
Look at those "assets" go! Meanwhile, the common man gets a liquidy injection up the backside.
ProTip: Stocks cannot go down until this regime changes. (AKA Shorting stocks = burning $)
They'll own it all before this is overwith, and they will have "paid" for it with worthless digital fiat.
They'll try...but they'll have to prise my stack from my bloody, cold grip.
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.
Body armor soon to be illegal... ;)
https://beta.congress.gov/bill/113th-congress/house-bill/5344/text
The Sky is the limit!
Och aye, and if Scotland separates, Skye is the limit.
The ultra wealthy: "Let's punch through the sky"
So bank lobby gets all the trillions and you expect other lobbies to just suck it up?
Really?
Remember "suicides"?
That was just a warning
That was probably just silencing people who could have shared embarrassing secrets with the public. I would say there's still plenty of public wealth for the banks to hoover up before they turn on each other in a big way. And now they have full sovereign backing, rather than just the implied backing they had back in 2006/2007, so they can act with even more impunity.
What, you don't think the Fed would destroy their own portfolio by raising rates? But what about the rapidly strengthening, self-sustaining economic recovery? What about the need to prevent 'speculative excesses and bubbles' from forming? LOL, LMFAO...
What if they get an offer they can't refuse?
I think they run the show - they make the offers, they don't take them.
You think bank lobby has more bullets than military complex?
I think they own the military complex.
Hmmm. It is the opposite.
If bank lobby owned military complex, 2008 would not have happened
Watch it unfold again
So far the evidence suggests that the military either acts in concert with the banking sector, or follows their orders. Look at the purge of the upper ranks during the past 6 years - who do you think ordered that? Get potential troublemakers, who might be bound by antiquated concepts like 'honor' and 'duty' out of the way.
Evidence like 2008 suggests that when Military Complex gets enraged and backstabbed, things occur invevitably.
Agree, as far as military 'clean up'. Done by bank lobby, very evident, no objection.
About to backfire.
People don't realize, that should the real power players start "backstabbing" each other, the U.S.S.A becomes Pakistan overnight. Much like what many former territories of the Soviet Union experienced.
Get your tribes in order bitches.
4000 years of documented world history.
Elite eliminates elite over control of REAL ASSETS.
USA is no different
Wait, wait. The military caused the 2008 market crash?
yes. Demanded by them
I thought Bush did it.
Yes. Neocons got enrageed at bank lobby. They were in power.
They crapped Lehman and Bear stearns
"They capped Lehman and Bear stearns" -- fixed.
:-) thx
retribution, more like a lack of new military contracts...
Ok let's just say for arguments sake that they are comfortable with each other's presence.
It is abundantly obvious Pentagon is enraged at military cuts.
So, that argument instantly falls
@"I think they own the military complex."
They certainly do :
Ben Bernanke Town Hall Meeting With Military Families At Fort Bliss Texas pt1
http://www.youtube.com/watch?v=XxG28ryoY8I
@298 secs : Special Financial Protection for Military families
Re-Referenced here .. Video was 'disappeared' :
http://logisticsmonster.com/2011/11/16/why-did-bernanke-really-visit-for...
So, where IS the "special" financial protection?
Cuts are drastic. Generals were fired
Veterans are not being taken care of and dying
This is not necessarily an either/or question, at least right now.
The military can happily join hands with the Fed and the banks for as long as monetary policy enables the current annual rate of growth in the defense budget, or maybe even some "cuts" (i.e. - a modest decrease in the annual rate of growth), and for as long as the executive branch continues to authorize an endless stream of foreign military adventures as supposed justification for the growth of the MIC.
Happily?
Bank lobby is getting all the money and MIC is getting all the cuts and veterans are dying without health care.
Where is the happiness?
You shouldn't confuse veterans with the MIC. Veterans (and associated benefits-for and commitments-to) are not part of the MIC - or more specifically, soldiers and veterans are to the MIC as cattle and hogs are to the agriculture industry.
That must be why gold goes down every day.
when a nuclear bomb goes off the brightest point is reached just before the complete annihilation.
"A thousand points of light" all over the US...
"assets"
Good one.
And just like clockwork, gold down 7 for the PM fix.
Nothing new here....
Liquidity? What can ever be wrong with more liquidity????
he's right the Fed can't raise rates, well i can't conceive how, may as well do WW3. (they would think)
* that's not to say that eventually the market won't force that issue.
YIIIIIII HHAAAAAAA !!!
DOUBLING DOWN !!!!!
CLA-SSIC, when you re losing a battle.................
LMFAO!!! Yeah, go ahead unwind that bitch, go ahead, I double dog dare you.
This chart is also interesting:
http://finviz.com/futures_charts.ashx?t=ZC&p=d1
Corn COT. Who is likely to get rolled?
Up, Up and Away!
We are so screwed. This simply cannot end well.
Nope, wrong chart. (And it's nonsense anyway, it doesn't show trillions of off-balance-sheet stuff.)
Only thing that matters is amount of currency created by these central banks. But no chart for that, because they don't want people to know how much currency they have created since '08.
"We'll just kill the dollar."
Remember that statement?
How does US and GB and Eurozone and Japan get rid of all the debt? Simple, inflate it away.
But they have to drive USD and GPB and EUR and YEN to zero to do do that.
but all fiat currencies are relative to each other, the only way they go to 'zero' is truly massive hyperinflation of real assets. but inflation in real assets will drive up costs of everything else massively as well (think $15 gas and $10 milk)....people will consume far far less and the amount of money that can flow from the populace to hard asset owners is limited; which then causes asset prices to fall.
unless money/currency becomes something only the 'asset owners' have; everyone else gets an ebt card and close monitoring of their whereabouts.
I think gasoline is largely being controlled, so as not to rise too much, too fast, which puts a lid on the transport cost price rises embedded in most things. There is, however, still very real price inflation, and true energy costs can not be masked forever.
People are already consuming less in gas, "voluntary" spending, and needs. That is the "bi-flation" we see now in cheaper TV's and more expensive food. There is some point of diminishing returns where crumble turns to crash and I have no idea when that is - not trying to time the specifics, just trying to be ready in general.
Gas was A $1.60/gal when 0bama took office and it is $3.55/gal, that is in five years.
Just above a doubling. How much has the money supply increased in a like timeframe? That is inflation, and price rises follow monetary inflation. What is to follow will not be pretty in the U.S.
petrodollar. thats the true currency, like an oil standard. the US gets oil traded in $ and is the only country that can create dollars. THATs the racket.
"but all fiat currencies are relative to each other, the only way they go to 'zero' is truly massive hyperinflation of real assets."
No such thing as "massive hyperinflation of real assets".
What inflates is the amount of currency in circulation, i.e. massive "printing" we see in QE, causing the currency to lose value against real assets, hence rising prices.
Stick to scuba. Leave monetary discussions to those who understand it.
Reminds me of a tractor pull. The driver knows that the farther along he goes, the harder the pulling gets as the weight advances. But he slams that peddle down until the very end regardless — when either the engine blows, or it lets out a loud bang as he shuts it down to admire his distance.
Bah, that's nothing! Let's get to quadrillions and then we're talking!
The rich and powerful change the rules when too many share in the fruits.
"Fed+ECB+BoJ+BoE assets"
How would the chart look if you included China?
Bullish!!!
I'm buying with both fingers!
For the most part, people are good and trusting. They cannot conceive that there is such greed and evil in the world, waging a constant war of aggression that is designed to enslave... or of they cannot enslave, then murder.
http://www.lawfulpath.com/ref/sw4qw/index.shtml
One can assume that anyone who benefits greatly from the conspiracy is inside the conspiracy and therefore a contributor to the great evil.
No they aren't. Human beans are by nature larcenous, greeedy, self-serving, containing 'multitudes' of personalities, accounting for their lifetime of contradicting themselves.
There are no doubt some saints in the world but I haven't met any. IF you look deep enough, and don't kid yourself you will find that most people never got any older mentally than about 12, 14 at the outside.
Once you realize this your expectations should descend to more realistic levels of what you think others and yourself will actually accomplish in life.
I used to have heroes and then one day I looked up the history of Hero, a female as it turns out.
Somehow, along with all the other patently false myths we have been spoonfed and never bothered to trace the history of, we have lived lives of illusions, to wit, a "Hero":
Hero and Leander is the Greek myth relating the story of Hero (Ancient Greek: ???, H?r?; pron. like "hero" in English), a priestess of Aphrodite who dwelt in a tower in Sestoson the European side of the Hellespont (today's Dardanelles), and Leander a young man from Abydos on the opposite side of the strait. Leander fell in love with Hero and would swim every night across the Hellespont to be with her. Hero would light a lamp at the top of her tower to guide his way.
Succumbing to Leander's soft words and to his argument that Venus, as the goddess of love, would scorn the worship of a virgin, Hero allowed him to become "special friends" with her. These trysts lasted through the warm summer. But one stormy winter night, the waves tossed Leander in the sea and the breezes blew out Hero's light; Leander lost his way and was drowned. When Hero saw his dead body, she threw herself over the edge of the tower to her death to be with him.
There's going to come a day when a lump of coal in your stocking will be considered a great gift.
History will ask, Why Americans did nothing about it before it happened.
cuz TeeVee told them not to....
as an aside, even all the big talkers on here will do nothing with the guns, and ammo and gold and guillotines. no one wants to be the first to die. we don't make em like that anymore.
how is it that the people allow courts and congress to allow the senate to allow the president (no matter who he may be) get away with this unilateral, wholesale elimination of the 'rules' of the US. How is it that the sergeant at arms isn't marching obama to levenworth for sedition and treason not to mention the fucks like boner, reid, pelosi, and every other piece of shit that hasn't stood up for the constitution, upheld the sacrifices, the blood of those that died....for us. truly, truly sad.
we are WAY beyond the time to stand up and make our voices heard.
sadly, i'm 51 in poor health....i'll be leading no revolution.
Increased Liquidity = Decreased Velocity of Money
Is there an inverse correlation with this: http://research.stlouisfed.org/fred2/series/M2V Apparently the Central Banks DONT want anyone to loan money.
nothing will change. human is the most lame animal ever.
even a dog beaten badly will finish to bite, a human cannot, past a point, it will just say thanx when receive some food between 2 kick on the chest.
humanity is now on regressive form, on the way of privating of liberties.
weapons will be confiscated whatever you want or not, wherever you are on the globe.
machinery will be fully autopilot from food on fields to drivers on any mobile machine.
a blowjob from the best hook won't value an half bottle of water.
religions will be prohibited because of national security due to mental perversion against the unique party.
when you see now you have to buy a 199$ bip bip to tell you to open your windows cos of CO2 to renew the air on the room, while 100 years ago when there was not electricity in most place and science average level of ppl, all women on any house were daily opening the windows while cleaning room.... you understand that technology is enslaving slowly the masse undercover, under the cover of the hype. the most part is, ppl are paying to becoming slaves and they fucking like it.
anybody is touched. more or less levels.
this cannot end well. and it wont.
when i am anger about something, i just think about what i just wrote you. and i feel better, it ease the pain, because the world is shit & modern societies do not worth a fucking peanut.
the whole world is laid on VOID, it's just fucking VOID.
how a greek plastic hype bag on a hype vendor can be 160€ while for the same amount you can have a .22 gun with 500 ammos & eat for a fucking year !!!!
i swear a global off powergrid, for a decade, just to self purify humanity, remove from globe all those who hame more fiat money on the pockets that skill to even cook an egg.
after a couple of years, a serious billion ppl should be dead & inside the number, all the banksters & politics who never worked a single day in their life & do not know even how to hammering a nail...
insanity will self evaporate in an old school true values manking.
What you really need is a chocolate chip cookie.
you need to wake up.
Maybe you need more than one.
Just for giggles, can we see this on a 40 year chart too? Please?
"People don't realize, that should the real power players start "backstabbing" each other, the U.S.S.A becomes Pakistan overnight. "
And ISIS/al-Qaeda can do their daily assasinations like in India and Pakistan. Obama and the liberals are set on turning the US into a 3rd world country. Their doing a good job of it.
The turning the US into a 3rd world country has been ongoing for decades...it just gets easier as the country now runs automatically downhill.
What would really irk me is if they somehow manage to just move over to another "new" fiat currency -like SDR's- and prolong the insanity a few more months or years.
This chart scientifically proves that the secret to prosperity was discovered in the third quarter of 2008. Just look at all the assets we've gained since then!
Hugs, Joe Biden.
Facebook yet crossed $200B market cap!
http://finviz.com/quote.ashx?t=fb&ty=c&ta=0&p=m
The U.S. was transformed by the crooked bankers from a democratic republic to an oligarchy without a shot being fired.
Mission Accomplished.
I still stand in amazement at how the entire country just accepts the idea that not only can we spend our way into prosperity by adding to massive debt - but that it is the only way to do so...because people are being bad and, after paying about 45% in federal, state and local taxes on their income, they have the audacity to put some of what they can keep in a bank where it gets a rate that is about 6-8 times less than real inflation...
But I stand in absolute awe at the whole chattering class of economics experts and talking heads who never comment on the absurdity of a system in which a cartel of private banks "stimulates" "the economy" by printing up green pieces of paper {or making an entry in a computer/ledger, rather} and exchanging them for IOUs from future taxpayers... the banks producing out of thin air a debt obligation to be repaid in sweat and blood by millions.
And other than Ron Paul and maybe alan Grayson - pretty much no one has called to restore the issuing power to the US government. That's amazing.
One must rate this article as a 1; the vertical chart axis is intentionally deceptive.
MORAL HAZARD ! We don't need no sticking MORAL HAZARD
PRINT MONEY.
BUY UNIVERSE.
ENSLAVE MANKIND.
Followed, of course, by mass extermination.
For your own good, of course.