Stunning Chart Of The Day: For The First Time Ever, Central Banks Will Monetize More Than 100% Of Global Sovereign Debt

Tyler Durden's picture

Over the past two years we explained how in a time of ubiquitous central bank debt monetization, the amount of global sovereign bonds available for purchase - when taking into account CB purchases - has been declining at an ever faster pace, leading to a collapse in liquidity (something the TBAC warned about in the summer of 2013, leading to the Fed's taper and subsequent temporary halt of QE3), and - naturally - to soaring bond prices (and plunging yields). The latter has reached epic proportions recently, and resulted in $3.6 trillion in global government debt, 16% of total, that is now trading at negative yields.

But not even we had any idea just how bad it really would get.

* * *

Recall that many had touted 2015 as the year when the global "recovery", originally scheduled for the first half of 2013, would finally kick in. In fact it was said that this would be the year of central bank "renormalization."

They lied.

And one look at the Morgan Stanley chart below showing the net issuance of government debt in 2015, which will not only be the lowest in history, but - for the first time ever - be negative, explains all one needs to know.

* * *

Said otherwise, for the first time ever, "developed" central banks are now monetizing more than 100% of global sovereign debt issuance!

* * *

Some "renormalization."

We show this chart just in case there is still any confusion who is buying all the government debt and forcing bond yields ever lower, why $3.6 trillion in global debt is trading at negative yields, and why much more sovereign debt will very soon also reside in the terminal twilight zone of interest-bearing securities.

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LawsofPhysics's picture

Interesting but largely irrelevant.  Most of this debt is fraudulent to begin with.  Show us the central bank balance sheets for those same countries motherfucker.

SoilMyselfRotten's picture

What could possibly go wrong???

NotApplicable's picture

Mr. Yellen sure has his work cut out for him.

Cognitive Dissonance's picture

Global fireworks by the 4th of July?

zeropain's picture

isn't spring the season for revolutions?


froze25's picture

Hey, we are in a recovery.  Every thing is awesome, everything is great.

Clint Liquor's picture

By 'developed nations' the author means 'bankrupt nations'?

Hugh_Jorgan's picture

Greed already went crazy, several times. Now the greed of men is the insane junkie stealing and pawning his grandparent's car so he can get his fix. It won't be long now before we hit a wall.

Newsboy's picture

Preparing for massive sovereign debt write-offs, at a price, to be paid in-kind to bankers.

SheepDog-One's picture

One of these days when the banksters decide its time, there will suddenly be another 'crisis' which we'll all be forced to pay for thru the threat of tank gun barrels in the streets pointed at us.

Bastiat's picture

I prefer the image of tanks surrounding the Fed with the barrels pointing in.

Fun Facts's picture

If there were actually any oathkeepers, they would have surrounded the West Creek Operations Center by now with tanks.

But alas, they don't even know what that is.

They're too busy being caught up in left/right ZWO divide and conquer charades, and when all is said and done, everyone is going to be blamed except the people who deserve it.

It pays to own the media.

Dewey Cheatum Howe's picture

...It houses CC1, one of the three consolidated Federal Reserve data centers, the others being the CC2 East Rutherford Operations Center (EROC) in New Jersey, and the CC3 data center at the Dallas Eleventh District headquarters.

If you are going to take on skynet you might want to consider making sure you are also EMP resistant. Remember people are susceptible to EM just as much as a machine is. These (AI) neural nets that they use for modeling are nothing more than glorified game/decision theory playstations. They may have defensive capabilities built into their decision making processes if the facilities come under direct or indirect attack.

Some suggested reading.

optimator's picture

All planned long ago.  "They" can poduce a real birth certificate any time they want, then martial law, etc.

El Vaquero's picture

I think you'll find that the military is just as divided as the populace. 

ATM's picture

And getting more so every day.

It has been my contention that the present POTUS has had a concerted plan to destroy military morale from his very first action. He wants to destroy the US ability to wage war and to have an experienced and largely libertarian army founded in defense of the constitution.


Mike in GA's picture

And Japan is using its "credits" to BUY THE SPOOZ...what could go wrong indeed!

Headbanger's picture

Yeah I bet CNBC is all over this story now too.

101 years and counting's picture

i would expect CNBC to be on top of this....and applaud it.  liesman and cramer may actually start licking each other they'll be so giddy.

noben's picture

I think that LOP has a thing for numbers and... MILFs. ;-)

Not a bad thing to be into.

RaceToTheBottom's picture

Is this the Keynesian pullback that is supposed to happen on the second half of the cycle?

I thought with the Neo Keynesian world they like, they had outlawed anything but printing?


ThroxxOfVron's picture

"Most of this debt is fraudulent to begin with.  Show us the central bank balance sheets for those same countries motherfucker. "


I'm not gonna bother looking at any goddamned fantasy accounting bullshit.

I don't need to see any accounting to know that the outstanding US 'naitonal debt' HAS to be fraudulent when I see what it amounts to on a per capita basis.

Fuck these assholes and their accounting frauds.


ThroxxOfVron's picture

Further thought:  WHY would anyone trust anything said by persons associated with this level of blatant lying.

Who thinks that the US government has actually spent MILLIONS of dollars on each person in the country?

WHERE did such insane sums dissapear to if they did ever exist and were spent?

It is so blatantly ridiculous I don't even entertain the veil of civility when in conversation on the subject any more...


Be happy. Turn negatives into positives. //

Oh regional Indian's picture

Is this like some sort of tessaracted bubble in a bubble?

Is that a net liquidity drain on Global M-2? Is this money sitting parked? Austerity?

Thanks in advance...

Hugh_Jorgan's picture

I see it as a bubble constructed out of smaller bubbles, a fractal if you will...

In any event, it is a simple way of exchanging an acceleration in the overall rate economic collapse for continued appearance of status quo as the robbery continues unnoticed by the unwashed masses.

dicksburnt's picture

Is this like some sort of tessaracted bubble in a bubble?


no sir, this is a ponzi... taken to the global level by the western banking cabal.  

Q: what four CBs and their respective nations have NOT been buying GOLD (actually selling it)?

A: the same four CBs and nations that will eventually succomb to what will be a hyperinflationary depression named the 'geat ameriCON'

Coldfire's picture

Just like the famous oozlum bird, which disappears up its own ass...

LetThemEatRand's picture

Other sources state that the oozlum bird flies backwards so that it can admire its own beautiful tail feathers, or because while it does not know where it is going, it likes to know where it has been.

ThroxxOfVron's picture

I gave you an upvote just for the excellent absurdist imagery..

Tursas's picture

It's Othello! Putin moves next!

asteroids's picture

In short, the CB's world wide are counterfeiting?

Theta_Burn's picture


Goldmans new "bespoke tranche opportunity fund" should breath new life into this turd.



i_call_you_my_base's picture

Sucking your own dick seems like a good idea, but then you never leave the house.

NotApplicable's picture

That's known as synergy!

I see it as more like drinking your own blood for sustenance.

10mm's picture

Ill try to put a pair of eyes on it and give it a shot.

SheepDog-One's picture

Certainly looks very sustainable! Time to buy stawks for 0% best case scenario return!

B2u's picture

What difference does it make?

tuttisaluti's picture

Just turn the chart upside down. Problem solved.

falak pema's picture

funny money wins over real money.

Why do WE not find that funny?

FrankieGoesToHollywood's picture

"we are selling their own fat @ssed back to them..."

Madcow's picture

coming soon: double-digit negative rates. 

if that doesn't work, the bankers will have to dispatch some experienced teams (B of A) to go around the world raping and killing people, chopping them up, and then stuffing them in suitcases - until the economy begins to improve.