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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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Mon, 02/09/2015 - 11:41 | 5761941 LawsofPhysics
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.

Mon, 02/09/2015 - 11:45 | 5761964 SoilMyselfRotten
SoilMyselfRotten's picture

What could possibly go wrong???

Mon, 02/09/2015 - 11:46 | 5761968 cossack55
cossack55's picture

Winning

Mon, 02/09/2015 - 11:50 | 5761987 NotApplicable
NotApplicable's picture

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

Mon, 02/09/2015 - 11:51 | 5761990 SickDollar
SickDollar's picture

Greed Going crazy

 

Mon, 02/09/2015 - 11:56 | 5762009 Cognitive Dissonance
Cognitive Dissonance's picture

Global fireworks by the 4th of July?

Mon, 02/09/2015 - 12:20 | 5762131 zeropain
zeropain's picture

isn't spring the season for revolutions?

 

Mon, 02/09/2015 - 12:44 | 5762261 froze25
froze25's picture

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

Mon, 02/09/2015 - 11:57 | 5762013 Clint Liquor
Clint Liquor's picture

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

Mon, 02/09/2015 - 12:04 | 5762053 Hugh_Jorgan
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.

Mon, 02/09/2015 - 11:47 | 5761970 Newsboy
Newsboy's picture

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

Mon, 02/09/2015 - 11:57 | 5762016 SheepDog-One
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.

Mon, 02/09/2015 - 12:08 | 5762075 Bastiat
Bastiat's picture

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

Mon, 02/09/2015 - 12:45 | 5762262 Fun Facts
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.

Mon, 02/09/2015 - 14:34 | 5762780 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

http://wikimapia.org/23042666/Federal-Reserve-West-Creek-Operations-Center

...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.
...

http://investmentwatchblog.com/secret-federal-reserve-location-revealed/

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.
https://en.wikipedia.org/wiki/Electromagnetic_compatibility

http://www.electroherbalism.com/Bioelectronics/FrequenciesandAnecdotes/B...

Mon, 02/09/2015 - 12:36 | 5762210 optimator
optimator's picture

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

Mon, 02/09/2015 - 13:14 | 5762394 El Vaquero
El Vaquero's picture

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

Mon, 02/09/2015 - 13:47 | 5762517 ATM
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.

 

Mon, 02/09/2015 - 12:14 | 5762101 Mike in GA
Mike in GA's picture

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

Mon, 02/09/2015 - 11:48 | 5761975 Headbanger
Headbanger's picture

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

Mon, 02/09/2015 - 11:52 | 5761993 101 years and c...
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.

Mon, 02/09/2015 - 14:02 | 5762609 astoriajoe
astoriajoe's picture

uuugggghhhhhh!

Mon, 02/09/2015 - 11:56 | 5762007 noben
noben's picture

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

Not a bad thing to be into.

Mon, 02/09/2015 - 11:57 | 5762011 LawsofPhysics
LawsofPhysics's picture

LOL, well, who doesn't?

Mon, 02/09/2015 - 11:57 | 5762014 RaceToTheBottom
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?

 

Mon, 02/09/2015 - 12:41 | 5762239 Disc Jockey
Disc Jockey's picture

l'chayim!

Mon, 02/09/2015 - 12:45 | 5762269 ThroxxOfVron
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.

 

Mon, 02/09/2015 - 12:52 | 5762275 ThroxxOfVron
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...

Sun, 02/15/2015 - 19:22 | 5788212 pomlad5
pomlad5's picture

off shore it is all

Mon, 02/09/2015 - 11:41 | 5761946 SHEEPFUKKER
SHEEPFUKKER's picture

Be happy. Turn negatives into positives. //

Mon, 02/09/2015 - 11:47 | 5761974 Oh regional Indian
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...

Mon, 02/09/2015 - 12:19 | 5762126 Hugh_Jorgan
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.

Mon, 02/09/2015 - 12:27 | 5762174 dicksburnt
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'

Mon, 02/09/2015 - 11:44 | 5761955 Coldfire
Coldfire's picture

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

Mon, 02/09/2015 - 11:53 | 5761998 LetThemEatRand
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.

Mon, 02/09/2015 - 12:48 | 5762291 ThroxxOfVron
ThroxxOfVron's picture

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

Mon, 02/09/2015 - 11:45 | 5761960 Tursas
Tursas's picture

It's Othello! Putin moves next!

Mon, 02/09/2015 - 11:45 | 5761961 asteroids
asteroids's picture

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

Mon, 02/09/2015 - 11:45 | 5761962 _ConanTheLibert...
_ConanTheLibertarian_'s picture

Ponzi fail bitchez!

Mon, 02/09/2015 - 11:47 | 5761971 Theta_Burn
Theta_Burn's picture

Whew..

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

 

 

Mon, 02/09/2015 - 11:47 | 5761972 i_call_you_my_base
i_call_you_my_base's picture

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

Mon, 02/09/2015 - 11:50 | 5761984 NotApplicable
NotApplicable's picture

That's known as synergy!

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

Mon, 02/09/2015 - 12:03 | 5762054 10mm
10mm's picture

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

Mon, 02/09/2015 - 11:47 | 5761976 SheepDog-One
SheepDog-One's picture

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

Mon, 02/09/2015 - 11:48 | 5761980 B2u
B2u's picture

What difference does it make?

Mon, 02/09/2015 - 11:49 | 5761981 tuttisaluti
tuttisaluti's picture

Just turn the chart upside down. Problem solved.

Mon, 02/09/2015 - 11:53 | 5761994 falak pema
falak pema's picture

funny money wins over real money.

Why do WE not find that funny?

Mon, 02/09/2015 - 12:22 | 5762143 zeropain
zeropain's picture

all money is funny. 

Mon, 02/09/2015 - 11:57 | 5762017 FrankieGoesToHo...
FrankieGoesToHollywood's picture

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

Mon, 02/09/2015 - 11:59 | 5762031 Madcow
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. 

Mon, 02/09/2015 - 12:00 | 5762033 cn13
cn13's picture

I don't know how anyone can say QE didn't work.  It took all the bad debt off the "too big to fail" banks' balance sheets and pitched it over to the taxpayers.

Mission Accomplished!

Mon, 02/09/2015 - 12:20 | 5762047 FrankieGoesToHo...
FrankieGoesToHollywood's picture

And they have gone off and hired enough Phd's to spew BS to make us think it is a good thing.  becasue having the Aristocracy just come out and state they are stealing the money is too much truth for the sheeple to handle.

Mon, 02/09/2015 - 14:37 | 5762804 StupidEarthlings
StupidEarthlings's picture

True, but this could only work if the common folk were too stupid to...     ..oh.

Mon, 02/09/2015 - 12:02 | 5762040 seanofthesea
seanofthesea's picture

Show me this "debt". Where is it warehoused? What color is it? Who is guarding it? How much does it weigh? "IT" is nothing more than digital 1s & 0s entered by means of "electrons". All these electrons are held/monotized/manipulated by the same Central Banks. Therefore the CBs are the crditors, no? I say declair war on the CBs. Tell them we simply don't recognize your precious interest-baring 1s & 0s anymore, and we are never going to pay. Furthermore, your institutions have now been made illegal. You, yourselves, are under arrest. 

Everybody go back to printing their own currency, and cooperating as a non-war-based economy and let's get on with this thing called being human on planet Earth without all this absurdity.

Problem solved. 

Mon, 02/09/2015 - 12:07 | 5762070 adr
adr's picture

There are a few million people that have no skills to offer that world. They only have the monetary system they created to offer. It is all they have ever offered the world and every war has been instigated by them.

In the new non central banking world, what do we do with them?

Mon, 02/09/2015 - 12:15 | 5762107 Winston Churchill
Winston Churchill's picture

Bankstercide.

Mon, 02/09/2015 - 12:48 | 5762293 Hohum
Hohum's picture

adr,

I'd multiply that figure by 100 or maybe 1000.

Mon, 02/09/2015 - 12:04 | 5762042 Oscar Mayer
Oscar Mayer's picture

Debt owed is a poor measure of wealth.

In a world of Fiat Legal Tender, there is absolutely no reason for Greece, or any other nation, to have a 'Sovereign Debt', which is a throwback to commodity based money.

And there is absolutely no reason for the Greeks, or the people of any other nation, to be made to suffer for the benefit/enrichment of banksters.

Markets are efficient enough to value currencies issued.

*They need to segregate bankster generated credit/debt from the actual legal tender money supply and discount/repudiate that credit/debt accordingly.

Mon, 02/09/2015 - 12:03 | 5762051 adr
adr's picture

"We will never monetize the debt."

Ha ha ha haaaa ha haaaaaaaa

By decree nobody on Earth should have to work and everyone should have a base pay of $125k a year. That was everyone can afford to buy a house, and anything else they want. The egalitarian level playing field. The Keynesian orgasm.

Then wonderful politicians like Obama won't be able to figure out why when a citizen goes to buy a house, it isn't there. Just like when they show up at the grocery store and nothing is on the shelf.

The truck driver was asked why he didn't make his delivery. He replied, "Nobody has to work, I'm rich now. Somebody else can do my job.

Mon, 02/09/2015 - 12:07 | 5762073 cwsuisse
cwsuisse's picture

 There is no need to be cynical. Audit and if advisable dissolve the FED

Mon, 02/09/2015 - 12:08 | 5762076 NoWayJose
NoWayJose's picture

Why not create another $18 Trillion so we can monetize the rest of the debt. Just call in every Treasury bond and note, hand out electronic money, and POOF - problem solved and the dollar goes UP because we have no more debt!

Mon, 02/09/2015 - 14:25 | 5762716 hooligan2009
hooligan2009's picture

maybe they are waiting for the number of 3d printers to increase!

but you are right, why the hell not,and let's go further, pay no taxes and simply print benefit checks, defense spending and education grants in hundred dollar bill form, FOREVER! Idiocracy huh? Such is the immoral hazard central banks are perpetrating via wealth redistibrution to their bank buddy networks.

hmm...maybe print up 3d wheelbarrows worth a billion each to wheel into bankers offices for year end bonuses?

 

 

woops sorry ADR, you already did this one! +1

Mon, 02/09/2015 - 12:16 | 5762117 buzzy_the_pirate_dog
buzzy_the_pirate_dog's picture

CB Buy Frenzy...phuc me!  Bullish

Mon, 02/09/2015 - 12:21 | 5762134 surfvin
surfvin's picture

It should cost an infinite amount of dollars just to buy one gram of gold,but we don't live in a real world anymore.

Mon, 02/09/2015 - 12:21 | 5762138 hotrod
hotrod's picture

Guess if everyone is doing it,  it must be right.

All the broke Governments want Climate Change taxes too.  Coincidence?

Mon, 02/09/2015 - 12:26 | 5762169 SillySalesmanQu...
SillySalesmanQuestion's picture

It's no longer "funny money", it's more like "hysterically ROTHFLMAO money". 

Mon, 02/09/2015 - 12:42 | 5762249 orangegeek
orangegeek's picture

yellen is a porn star!!!!!

Mon, 02/09/2015 - 12:56 | 5762333 The central planners
The central planners's picture

In the near future the CONgress will pass a law to inprision anyone who dares to advocate for the increase the interest rate.

Mon, 02/09/2015 - 13:15 | 5762395 t0mmyBerg
t0mmyBerg's picture

And since governments everywhere, including and especially in the country formerly known as the United States of America, are the enemies of the people whose interest they are supposed to faithfully represent, the connivance of the central banks to buy up all that debt to facilitate the ongoing destruction of wealth by these governments means that the CBs are themselves the enemies of the people and must be destroyed, preferably by legal means.  Fat chance of that though I would guess.  All that is really going on is that they are trying desperately to repair the balance sheets of their owners, the banks, qildly and immorally enriching the owners of the banks at the expense again of the people they represent.  And sadly, not one in a million people understand any of this.  It is enough to make one cry.

Mon, 02/09/2015 - 14:09 | 5762640 2muchtax
2muchtax's picture

50% of equities are own by people at or near retirement. They will soon have to cash in at the height of the CBs balance sheet. Their are no private sector buyers, the CBs will attempt to monetize the BB retirement. The interesting thing will be when this $ hits the street rapidly, not like QE with banking reserves serving as a damn.

Mon, 02/09/2015 - 14:33 | 5762773 hooligan2009
hooligan2009's picture

remember the myth about government debt being cancelled because of either higher nominal GDP growth (hahaha, show that evidence over the last 50 years) or hyperinflation (eek!).

stagflation is what? inflation around 0.5% and real/nominal  growth of 0%? = the lesson Japan is teaching us now about hwo to disappear up your own rear end in the land of the zeros? or 5% with nominal GDP of 3%?

get ready, here comes your 19th nervous QE and repeatof the Bay of (F) PIIGS all wrapped up in a nice Davos bow (out).

50th anniversary coming up!

https://www.youtube.com/watch?v=zI-iMy0aZM8&list=RDzI-iMy0aZM8#t=14

Mon, 02/09/2015 - 15:18 | 5763029 SmedleyButlersGhost
SmedleyButlersGhost's picture

OK - sorry - hand up from the thick kid in the back of the class. Is this saying that my cousin Vinny took a loan from my cousin Vinny a and called it making money? If not, please give me a hint.

Mon, 02/09/2015 - 21:09 | 5764363 Thalamus
Thalamus's picture

They can start paying down private mortgages next.

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