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Congressman Confirms Foreign Central Banks Buying US Stock Futures Is Good For Liquidity

Tyler Durden's picture




 

Before we first exposed proof of the conspiracy fact that global Central Banks are indeed trading US equity futures, it was dismissed as tin-foil-hat-wearing, pajama-wearing, basement-living conspiracy theory. So it is, perhaps, quite notable that Congress itself has now admitted that Central Banks are trading futures and that it is good for liquidity (and thus, we pre-suppose, it's for your own good, average citizen).

 

Thanks to one enterprising member of the public who explained to his local Congressman that:

"trading the futures market against Central Banks is like playing no limit poker against a billionaire. You will always be run out of the market and the market will be controlled by those that can print money for margin (or the next ante),"

the Congressman, a member of the House Financial Services Committee and the Subcommittee on Capital Markets, replied...

 

And so there it is...

 

h/t James Lovely

 

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Wed, 12/31/2014 - 19:26 | 5610715 sudzee
sudzee's picture

And the number one trade is gold.

Thu, 01/01/2015 - 01:52 | 5611532 tplink
tplink's picture

my best friend's half-sister makes $77 every hour on the computer . She has been laid off for 5 months but last month her pay check was $14292 just working on the computer for a few hours. read... www.works3.com

Thu, 01/01/2015 - 13:22 | 5612367 Alans father
Alans father's picture

Since this is the place where scams are revealed....
Very well done, tplink!

Thu, 01/01/2015 - 13:02 | 5612325 RaceToTheBottom
RaceToTheBottom's picture

Ahh, so the role of government is to help WS.  Gottit

Wed, 12/31/2014 - 19:26 | 5610721 Wilcox1
Wilcox1's picture

Step aside. We are with the government. We are here to help you.

Wed, 12/31/2014 - 19:40 | 5610764 debtor of last ...
debtor of last resort's picture

Bend over. We are with the government. We are here to help you.

There, fixed it for ya.

Wed, 12/31/2014 - 20:08 | 5610817 Bay of Pigs
Bay of Pigs's picture

Bend over? Next stop.....CLEVELAND!!!!

Wed, 12/31/2014 - 20:42 | 5610912 max2205
max2205's picture

Dear Serf

 

We only buy the market when GS gets in a losing position...which is  like everyday 

 

Fuck you and mind your own business 

Wed, 12/31/2014 - 19:42 | 5610767 McMolotov
McMolotov's picture

I'm smiling next to you, with secret liquidity...

Wed, 12/31/2014 - 20:19 | 5610847 NoDebt
NoDebt's picture

Metallica?

Wed, 12/31/2014 - 20:28 | 5610878 homiegot
homiegot's picture

Queensryche?

Wed, 12/31/2014 - 20:38 | 5610906 rsnoble
rsnoble's picture

It's lucidity dumbass. LOL.

Wed, 12/31/2014 - 21:27 | 5611018 SAT 800
SAT 800's picture

Well, I'll be; I had no idea. Both my S&P short and my Dec.'15 long Silver are in the money, today; but probably not for long. Now, what; foreign central banks are buying S&P futures ? why don't i just shoot myself and get it over with ?

Wed, 12/31/2014 - 23:24 | 5611291 So It Goes
So It Goes's picture

No - for heaven's sake.  Don't shoot yourself just yet!!!!!  We have so much more fun to go!!!!!!

 

First we will have some type of crash - say....stocks or bonds.  Then the FED will step in - because that is what they do - and after that we will possibly have a hyperinflationary depression.  That will be the start of a real low point.  You could reconsider offing yourself then.

Wed, 12/31/2014 - 19:27 | 5610725 trillionaire
trillionaire's picture

Should we all BTFD?

Wed, 12/31/2014 - 20:20 | 5610849 NoDebt
NoDebt's picture

If there ever is one again, yes.

Wed, 12/31/2014 - 20:41 | 5610913 rsnoble
rsnoble's picture

There was one today.  Go for it.  I dare you.

If that doesn't make you indecisive nothing will.

Wed, 12/31/2014 - 20:46 | 5610927 KnuckleDragger-X
KnuckleDragger-X's picture

You can't buy the dip,congress critters can only be rented. Oh, you must mean the market....

Wed, 12/31/2014 - 19:29 | 5610728 Stoploss
Stoploss's picture

So, there it is in all it's glory.

Confirmation it's all make believe.

Now we know why the need for DHS inside of Treasury.

 

Default coming.

Wed, 12/31/2014 - 20:42 | 5610917 gwar5
gwar5's picture

Yep. We should have every reason to believe that DHS is being invited to invade entire Cabinet departments to root out any whistlelblowers, squealers, and tellers of truth. We live behind a Digital Curtain run by Bookburners.

 

 

 

Wed, 12/31/2014 - 20:47 | 5610933 KnuckleDragger-X
KnuckleDragger-X's picture

Congress talking about liquidity is hilarious considering their budgeting process...

Wed, 12/31/2014 - 19:29 | 5610731 homiegot
homiegot's picture

I hear Ex-Lax is great for liquidity. The Congressman should try it.

Wed, 12/31/2014 - 20:23 | 5610859 sun tzu
sun tzu's picture

The congressman did it backwards. The pill went up his ass and the liquidity is coming out of his mouth

Wed, 12/31/2014 - 19:31 | 5610732 gwar5
gwar5's picture

Pretty awesome little juicy bits in that letter, actually.

 

So what else do all the congress critters know?  Are they continuing their rampant insider trading on said information as well? If this isn't fascism, then what is?

 

 

 

Wed, 12/31/2014 - 19:37 | 5610755 McMolotov
McMolotov's picture

"It's not fascism when we do it." —standard government disclaimer

Wed, 12/31/2014 - 19:33 | 5610738 holdbuysell
holdbuysell's picture

And in other news...

Same congressman confirms he's an idiot.

Wed, 12/31/2014 - 19:36 | 5610743 Yen Cross
Yen Cross's picture

 Mitch Mc. Onnell ( Mc Onnnel) lookng for foreign handouts?

 The Dispatcher {minority leader} of the house, can't wait until January?

 All I see is purple! Bitchez

Wed, 12/31/2014 - 19:35 | 5610745 SickDollar
SickDollar's picture

That letter was a polite BIG FUCK YOU SHEEP

 

 

 

Wed, 12/31/2014 - 19:49 | 5610780 buzzsaw99
buzzsaw99's picture

...It is ebb and flow, tidal gravity! It is ecological balance! You are an old man who thinks in terms of nations and peoples. There are no nations. There are no peoples. There are no Russians. There are no Arabs. There are no third worlds. There is no West. There is only one holistic system of systems, one vast and immane, interwoven, interacting, multivariate, multinational dominion of dollars. Petro-dollars, electro-dollars, multi-dollars, reichmarks, rins, rubles, pounds, and shekels. It is the international system of currency which determines the totality of life on this planet. That is the natural order of things today. That is the atomic and subatomic and galactic structure of things today! And YOU have meddled with the primal forces of nature, and YOU... WILL... ATONE! ... [/Arthur Jensen]

Wed, 12/31/2014 - 20:20 | 5610806 Yen Cross
Yen Cross's picture

Thanks Buzz, I needed that.

 Here's a gift

>

 Short the usd you knucKLE HEAD. Any currency trader understands the reason why usd (vs) anything weakened during the (DXY) reallignment in 2002-2004.

 The DXY peak in 2006'7 wasn't about demand. If it was , then why did bond yields rise?  

 In the late nineties, before the euro was born, banks started rebalancing, (swaps agreements)

  Banks needed clearing houses (exchanges) to close their "borrowing"

  Here we sit, so broken hearted, come to shit and only FARTED!

  Bitchez

 

Wed, 12/31/2014 - 20:35 | 5610891 buzzsaw99
buzzsaw99's picture

Short the usd? Are you insane??

Pogue Colonel: Whose side are you on, son?

Private Joker: Our side, sir.

Pogue Colonel: Don't you love your country?

Private Joker: Yes, sir.

Pogue Colonel: Then how about getting with the program? Why don't you jump on the team and come on in for the big win?

Private Joker: Yes, sir.

Wed, 12/31/2014 - 23:48 | 5611341 TheReplacement
TheReplacement's picture

Yen,

When you say go short USD, what does the other side of that look like?

Danke

Wed, 12/31/2014 - 19:52 | 5610786 lasvegaspersona
lasvegaspersona's picture

Each little 'new thing' is incorporated into the system as though it is no big deal. At the end of 6 years we are now in a completely different world yet the most of the population sees no change. When they realize it is their pension plans and IRAs on the line it will be too late. When they realize it is raising prices above what reasonable people would pay in normal times it will be even laterer. When they finally have that 'holy shit' moment the DOW will finally be at 36,000 and the dollar will be half way to toast.

I guess Zimbabwe did not make much of an impression.

Wed, 12/31/2014 - 20:30 | 5610880 surf0766
surf0766's picture

The dollar is more than half way to toast now

Wed, 12/31/2014 - 19:54 | 5610788 One And Only
One And Only's picture

Is there really a helicopter though? 

I heard the FED or someone had a helicopter they just dropped money out of to spread wealth around.

Wed, 12/31/2014 - 23:43 | 5611333 TheReplacement
TheReplacement's picture

No helicopter.  Helicopters can be shot down.  They just mainline the stuff straight to TBTJs and let them worry about taking fire.

Wed, 12/31/2014 - 20:06 | 5610789 cowdiddly
cowdiddly's picture

Always liquidity, liquidity, liquidity. Get rid of GLass Stegal- liquididy. Ditch GAAP accting-liquidity, The uptick rule-liquidity. Central bank buying- liquidity. So how much are you willing to risk in the name of liquidity? Whats it worth to you?

Looks pretty runny, watery, liquidy like liquid 5$#@ if you ask me, How bout something solid.

Thu, 01/01/2015 - 11:39 | 5612148 Ghordius
Ghordius's picture

slosh, slosh

Wed, 12/31/2014 - 19:57 | 5610794 Bemused Observer
Bemused Observer's picture

Wait till his constituents lose their shirts in a market crash, then let's see him explain liquidity to them.

Wed, 12/31/2014 - 20:21 | 5610857 sun tzu
sun tzu's picture

It will be blamed on lack of liquidity and they will demand more liquidity form the Fed

Wed, 12/31/2014 - 20:06 | 5610807 Bay of Pigs
Bay of Pigs's picture

Significant oversight by the CFTC?

Yahooooooooooooooooo......

Wed, 12/31/2014 - 20:10 | 5610821 Ironmaan
Ironmaan's picture

Geee. I wonder what happens when they decide to start selling?

Wed, 12/31/2014 - 21:37 | 5611042 SAT 800
SAT 800's picture

What a delightful thought; i can't wait to find out.

Wed, 12/31/2014 - 21:56 | 5611106 jameswvu99
jameswvu99's picture

Why would they ever sell?  Japan's CB buys the March futures up to 2200, and the ECB buys the June futures to keep it even higher. The suckers that sell when March comes around and S and P settles at 2300 lose a ton to Japan, since it settle in cash, they then use surplus funds to have even more buying power to buy September futures up to help ECB CB, this could go on for a long time till the whole system collapses. 

Wed, 12/31/2014 - 23:46 | 5611340 TheReplacement
TheReplacement's picture

The mere fact that they have to keep doing this in ever greater amounts means it is collapsing now and has been for some time.  We are in the midst of the greatest economic upheaval in history and almost everyone thinks it has yet to happen.  This is not a big thing.  This is a huge thing.  Huge things take even more time than big things. 

Whatever.  It is happening all around us.

Wed, 12/31/2014 - 20:09 | 5610822 Wild Theories
Wild Theories's picture

well, it IS good for liquidity

Wed, 12/31/2014 - 20:14 | 5610829 Seasmoke
Seasmoke's picture

Traitor. 

Thu, 01/01/2015 - 11:44 | 5612152 Ghordius
Ghordius's picture

consider, though, that if you consider this congressman of being a traitor, then you should consider a traitor too every and each one that voted for an unbalanced/deficit budget since WWII - that's a lot of betrayal

Wed, 12/31/2014 - 20:14 | 5610833 Cautiously Pess...
Cautiously Pessimistic's picture

Mr. and Mrs. Pessimistic invited me and the wife over for New Year's, and I am really getting a kick out of these pathetic replies!!!

 

Signed,

Bart Chilton

 

Wed, 12/31/2014 - 20:23 | 5610858 Yen Cross
Yen Cross's picture

 Nice!

 Signed,

 Consummate Optimist~

Wed, 12/31/2014 - 20:43 | 5610919 rsnoble
rsnoble's picture

I suppose there is some benefit to the peons.  Gona be a lot of people not too happy when 401k's and pensions get wiped out.  We're all in this together, like it or not.  Of course we'll be taking the brunt of it and could quit literally end up with NKorea living conditions.  I'm a step ahead as I have 10 cats I could eat.

Wed, 12/31/2014 - 20:55 | 5610951 Cautiously Pess...
Cautiously Pessimistic's picture

Something tells me this guy won't be eating his though....

 

http://awkwardfamilyphotos.com/2014/09/30/awkward-news-update-laser-cat/

Thu, 01/01/2015 - 19:38 | 5613327 SameAsItEverWas
SameAsItEverWas's picture

I've heard that cats have sometimes fed on their owners after their suicide.  Using a shotgun to do it is way more difficult than a handgun but it'd make a lot more catfood.

Wed, 12/31/2014 - 20:47 | 5610926 billsbest
billsbest's picture
He'll "press" for oversight???????? Doesn't the honorable congressman know we don't have to do that anymore?

 

Wed, 12/31/2014 - 20:54 | 5610944 will ling
will ling's picture

i think i detect a certain degree of numbness creepin' into the ZH realm. hope it's not a '15 harbinger.

Wed, 12/31/2014 - 21:22 | 5611011 theyjustcantstop
theyjustcantstop's picture

i guess in 2008 when a few trillion of americas tax-dollars dollars went to forgien cb's. and there wasn't much stink, and non-exesitent reporting of this, the mold was set.

the globalist have put us into a global economy, for better, or worse, and it was easy for them.

 

Wed, 12/31/2014 - 21:29 | 5611027 jmaloy5365
jmaloy5365's picture

See...Need a list of conspiracies that have been proven fact on ZH.

Wed, 12/31/2014 - 22:14 | 5611148 q99x2
q99x2's picture

BTFD its software stupid.

Thu, 01/01/2015 - 02:29 | 5611592 Government need...
Government needs you to pay taxes's picture

Think what might be possible with controlling derivative interests in every S&P 500 company . . .It's genius.  Print the fiat, buy the futures, own the executives, own their employees, own the government, create the New Order.

Thu, 01/01/2015 - 03:34 | 5611666 TeethVillage88s
TeethVillage88s's picture

You point about no limit poker with a billionaire.

Why don't we pass a law allowing foreigner to buy up American household debt?

- They they can put US Debtors in Work Prisons for their debts instead of allowing bankruptcy.

So what are Foreigners buying:

- Businesses
- Buildings
- Real Estate
- Farmland
- Equities & Bonds
- Commodity Futures
- US Long Term Treasuries

$28 Trillion Foreign ownership.

http://www.treasury.gov/ticdata/Publish/shl2002r.pdf
http://www.treasury.gov/ticdata/Publish/shla2013r.pdf
(http://www.treasury.gov/ticdata/Publish/mfh.txt)
http://www.bea.gov/newsreleases/international/intinv/iip_glance.htm

Last Data is from April 2014.

Belgium 2002 = $10.8 B, then 2013 = $163 B, Today $366 B
Cayman Islands 2002 = $10.7 B, then 2013 = $66 B, Today ??
Canada 2002 = $8.4 B, then 2013 = $46.6 B, Today $60.5 B
China 2002 = $95 B, then 2013 = $1,272 B, Today $1263 B
Hong Kong 2002 = $37 B, then 2013 = $89 B, Today $155 B
Ireland 2002 = $6 B, then 2013 = $91 B, Today $112 B
Japan 2002 = $260 B, then 2013 = $1,023 B, Today $1210 B
Luxemburg 2002 = $20.2 B, then 2013 = $107 B, Today $141 B
Philippines 2002 = $3 B, then 2013 = $36 B, Today $34 B
Poland 2002 = $7 B, then 2013 = $31 B, Today $30 B
Russia 2002 = $3 B, then 2013 = $138 B, Today $116 B
Switzerland 2002 = $28 B, then 2013 = $157 B, Today $178 B
Taiwan 2002 = $0 B, then 2013 = $183 B, Today $175 B
United Kingdom = $45.7 B, then 2013 = $130.6 B, Today $186 B

http://research.stlouisfed.org/fred2/series/ROWFDNQ027S ($3.16 Foreign Investment USA)
http://research.stlouisfed.org/fred2/series/GPDI ($2.9 Private Domestic Investment)

WTH... we want more rich monopolies even if they are foreigners who demand delivery of our food, oil, gas, precious metals,...

The Royals & Lords in Congress & Fed don't care what health care bankruptcies do to the Middle Class or that Debt leads to slavery... ship more jobs overseas... bring in more low wage workers. S/

Thu, 01/01/2015 - 10:57 | 5612097 Dragon HAwk
Dragon HAwk's picture

Print fake Money, Compete with Citizens real Money,      Gotcha..

  have to simplify this stuff if you want, to spread it around....

Thu, 01/01/2015 - 19:35 | 5612821 SameAsItEverWas
SameAsItEverWas's picture

Please enlighten me as to where exactly there are legal limits on types of assets the Federal Reserve can hold on balance sheet.  Sure, it's TRADITION for CBs to hold currency, sovereign debt, and gold, but why can't they invest in things like paintings or fine wine which are both tangible assets that can be seen and touched  ... because derivatives like ES, NQ,  CL, ZS, etc. are not physical things.  You could say that SPY and QQQ represent baskets of corporate equites but not so for ES and NQ.

As one of the keystones of the "Abenomics" of competitive devaluation it's been more than 12 months since the Bank of Japan announced that they're inflating their domestic stock market (buying NIKKEI 225) as well as their real estate market (buying REITs).   Several  other central banks, notably Israel, where one of their chiefs is a dual-citizen with a position in the US Fed and it's like the old monarchies that married off their children to another country to cement alliances.

Meyer Rothschild said something like if you give me the power to issue money it doesn't matter who makes the laws.  Jewish bankers rule the world and nobody cares. 

Well, here we are, folks.  Jewish bankers control the money and  make each other richer and richer while the most successful opposition at the moment seems to be ISIS which doesn't want my support because I'm a Jew but still wish them godspeed.

I risked a 5-year prison sentence for draft evasion to Viet Nam and am proud to say I never registered with Selective Service but if I were that age now I'd be thinking about enlisting to get training and experience in armed struggle.  Fuck em.    

Thu, 01/01/2015 - 18:55 | 5613286 theyjustcantstop
theyjustcantstop's picture

this is just another way to redistribute the middle-class worker out of existence.

the fed., boe., boj, and the ecb will get the dow up to 25,000, the s&p up to 3,000, and nasdaq up to 7,000, then the executive pen will come out.

401k's, from this date forward, will be non-transferable, retroactive back to inception.

at redemption, you'll be taxed on gross amount, and your check will be mailed to you by the irs, after your principal donations, and their accrued earnings, are separated from tax deferred earnings, (you didn't build that).  

 

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