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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
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.
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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.
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Said otherwise, for the first time ever, "developed" central banks are now monetizing more than 100% of global sovereign debt issuance!
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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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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.
What could possibly go wrong???
Winning
Mr. Yellen sure has his work cut out for him.
Greed Going crazy
Global fireworks by the 4th of July?
isn't spring the season for revolutions?
Hey, we are in a recovery. Every thing is awesome, everything is great.
By 'developed nations' the author means 'bankrupt nations'?
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.
Preparing for massive sovereign debt write-offs, at a price, to be paid in-kind to bankers.
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.
I prefer the image of tanks surrounding the Fed with the barrels pointing in.
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.
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...
All planned long ago. "They" can poduce a real birth certificate any time they want, then martial law, etc.
I think you'll find that the military is just as divided as the populace.
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.
And Japan is using its "credits" to BUY THE SPOOZ...what could go wrong indeed!
Yeah I bet CNBC is all over this story now too.
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.
uuugggghhhhhh!
I think that LOP has a thing for numbers and... MILFs. ;-)
Not a bad thing to be into.
LOL, well, who doesn't?
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?
l'chayim!
"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.
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...
off shore it is all
Be happy. Turn negatives into positives. //
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...
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.
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'
Just like the famous oozlum bird, which disappears up its own ass...
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.
I gave you an upvote just for the excellent absurdist imagery..
It's Othello! Putin moves next!
In short, the CB's world wide are counterfeiting?
Ponzi fail bitchez!
Whew..
Goldmans new "bespoke tranche opportunity fund" should breath new life into this turd.
Sucking your own dick seems like a good idea, but then you never leave the house.
That's known as synergy!
I see it as more like drinking your own blood for sustenance.
Ill try to put a pair of eyes on it and give it a shot.
Certainly looks very sustainable! Time to buy stawks for 0% best case scenario return!
What difference does it make?
Just turn the chart upside down. Problem solved.
funny money wins over real money.
Why do WE not find that funny?
all money is funny.
"we are selling their own fat @ssed back to them..."
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.
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!
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.
True, but this could only work if the common folk were too stupid to... ..oh.
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.
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?
Bankstercide.
adr,
I'd multiply that figure by 100 or maybe 1000.
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.
"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.
There is no need to be cynical. Audit and if advisable dissolve the FED
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!
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
CB Buy Frenzy...phuc me! Bullish
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.
Guess if everyone is doing it, it must be right.
All the broke Governments want Climate Change taxes too. Coincidence?
It's no longer "funny money", it's more like "hysterically ROTHFLMAO money".
yellen is a porn star!!!!!
In the near future the CONgress will pass a law to inprision anyone who dares to advocate for the increase the interest rate.
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.
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.
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
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.
They can start paying down private mortgages next.