Global Central Banks Are All-In: QE Running At Record $180 Billion Per Month (And Rising)

Tyler Durden's picture

The monetary policy beatings will continue until morale improves. Eight long years after monetary policy experimentation went extreme, Reuters reports the amount of QE stimulus being pumped into the world financial system has never been higher... and it's about to get bigger.

As Jamie McGeever reports, The European Central Bank and Bank of Japan are buying around $180 billion of assets a month, according to Deutsche Bank, a larger global total than at any point since 2009, even when the Federal Reserve's QE programme was in full flow.

 

And if market consensus proves accurate, that total is about to rise by billions more -- with the ECB, BOJ and even Bank of England all expected to expand their QE programmes soon to try and bolster fragile growth and lift stubbornly low inflation.

The $180 billion total is roughly split down the middle between the ECB and BOJ, according to Deutsche, and is measured on a rolling 12-month basis. But against GDP, Japan is the biggest 'loser'...

 

And that is why stock markets around the world have soared since February amid a collapse in everything fundamental...

 

Charts: Reuters, DB, and Bloomberg

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back to basics's picture

How many billion a month is wealth disparity rising at?  

Perfect correlation I bet. 

JamesBond's picture

Which is why you don't fight the FED until after the election

tgatliff's picture

Exactly.  There is zero chance of the market "collapsing" until after the election.  They will hold it up and will fully expect Hillary or Trump to do a > $1T stimulus to "invest" in america.. 

KickIce's picture

Agree. I don't think any type of monetry policy brings these SOBs down.  It will take a natural disaster like a big ass earthquake or someone going off the reservation and starting WW3.

Never One Roach's picture

It confirms how robust Soweto Obama's jobless recovery is.

 

No jobs or wealth for the little people but tons of benefits continue to flow into the pockets of those 1% Wall Street and Banker first takers of these ZIRP benefits.

The middle class will continue to deteriorate while the upper crust continues its march to incredible wealth. That's why Wall Street supports Hillary "The Establishment" Clinton.

 

Legacy, Bitches!

OpTwoMistic's picture

Sorry to dash your outlook. but China and Russia move to gold backed money and the dollar becomes worthless overnight right after the election. Maybe sooner.

catalysis's picture
catalysis (not verified) OpTwoMistic Aug 1, 2016 8:56 AM

Not a chance.  The only reason China has a successful economy is their peg to the dollar.

oddjob's picture

9 billion ounces of Silver per month.

FreeShitter's picture

wake me up when we hit 1 Trill a month

scintillator9's picture

Did one want that in Yen or Zim notes?

motorollin's picture

Is there a difference any longer?

gatorengineer's picture

180 B a month is chicken shit compared to where this will end...  Easy 500b

E.F. Mutton's picture

They say the biggest and most dangerous part of the Iceberg lies unseen.

If Roto-Reuters says $180B, it's got to be much worse.

JenkinsLane's picture

Great to see the ECB has really stepped up to the plate.

Here2Go's picture
Here2Go (not verified) JenkinsLane Jul 26, 2016 5:45 PM

more like the "trough"

KickIce's picture

Yeah, the ECB is all in, just as soon as they get that wire transfer from the Fed.

jewish_master's picture

the vassel states are laying on thier swords for yankees. great stuff

StarveTheBeast's picture
StarveTheBeast (not verified) Jul 26, 2016 5:45 PM

And the average Joe has no clue that those funds go "through" the stock and RE markets and on to offshore accounts. The Zionist dont leave actual money in a place that is vulnerable.

Explaining to people that the markets are nothing more than paper and that RE is nothing but dirt with a perceived value is often comical!

Dont Vote!!,,,Dont Enlist!!

NoWayJose's picture

QE rising almost as fast as debt!

youngman's picture

 I have always thought that the CBS got together and made an agreement that they all could QE to keep ir economies afloat....we are all spending more than we take in..so we just print it...and it was agreed upon in advance...my question is why has Gold and Silver not gone way up too as there are trillios of more fiats running around out there in the last 5 years....it should be $5000 an oz by now for gold just to keep equal with the printing

HughAxton's picture

It is not going up now to allow time for friends of CB to amass plenty of it

KickIce's picture

Because in instances like Weimar the money printing madeit to the working class.  Today's QE really only goes straight to the wealthy and allows them to control how much money gets to main stream.  It gets worse when you factor in the average debt of a typical serf... er American and the amount of each paycheck goes just to pay interest meaning that even more money goes straight into the pockets of tptb further allowing them to control the money supply.  Then if you consider the CIA drug money laundering....

booboo's picture

180 Billion a month just means that they are in the toilet vortex where it is narrowing and spinning faster.

 

JamesBond's picture

Meanwhile, would someone please steer me to Trump's published remarks about his views on QE?

 

Thanks in advance.

 

jb

StarveTheBeast's picture
StarveTheBeast (not verified) JamesBond Jul 26, 2016 6:03 PM

Crickets from the ZH crowd!!

N0TaREALmerican's picture
N0TaREALmerican (not verified) JamesBond Jul 26, 2016 6:10 PM

I've heard Trump's Goldman Sachs Treasure Secretary will speak on this issue, and has some strong opinions.

Zeej's picture

What have you heard on this? Would love to hear Trump address this or anyone on his team address it. source would be great

booboo's picture

So an old man has to "steer" you to Google? They were not kidding when they said millinials were fucking lazy. Do your own goddamn work.

bugs_'s picture

Are the Central Bank(er)s really "all in" or are they just naked shorting everyone else's future?

Do Central Bank(er)s really have any skin at all in the game?

gaoptimize's picture

Wikipedia has recent estimates of global external debt at $75T.  At 2% interest, there would be $1.5T in payments per year.  If central banks are issuing $180B a month, it means that effectively, external debts are being paid in freshly printed money, and the deficit continues.  The is a horific situation that is obviously unsustainable.

The Navigator's picture

yea, but, 

"markets can remain irrational longer than you can remain solvent"

Math means nothing to those shit-for-brains central bankers and

they don't give 2 shits about the peons and peasants that get fucked in their

Alice-in-wonderland world.

Just keep working and paying your GD taxes.

cheka's picture

wonder what the number would be adding china and the rest of the world's money pumpers

mosfet's picture

Fed is covertly pumping in QE in one form or another.  Anyone think Barak "most transparent administraton ever" Obama would ever admit to it, being that everything else he's done hasn't been disclosed?  The only transparency left in America is created by hackers exposing the rigging.

o r c k's picture

Obama would never admit to it because no "reporter" would ever ask the question.

jewish_master's picture

this is the result of dumb down sex maniac driven empty in the head people. at the first sign of printing money ppl should have shoot CB and thier bankers....hell thier own guards should have done this if they had the balls and integrity. instead they rather fuck each other to death (in both ways) and catch pokemons. 

Miskondukt's picture

Maybe I am missing a piece here, but where is the MSCI 2016 EPS Expectation data coming from for that graphic? Been fumbling around the interwebs but can't find the corroborating data.

coast's picture

if they are admitting to 180 billion, its probably more like 1 trillion..s....isnt it funny how they took taxes out of my checks all these years, when they could have just printed instead? :-)    I talked to an older gentleman at a nice pub the other day, he said that "obama saved the economy"   lol...I said to him, "yeppers, print trillions and zero interest rates, obama would get a nobel economy saving prize, to put along with his "peace prize"....I'm just sittin here watching the wheels go round and round, really love to watch them roll....:-)

Constitution_Bitches's picture

Direct theft of our current and many many generations of We the Peoples Productivity.

Treason to the nth degree.

These World Central Bankers are criminals and we will be required, its our duty to destroy the disease that they have spread to all mankind.

We will strip every illicit asset, transfer back to every CB the massive public debt and then line them up.  

Revolt time Bitches.

 

VWAndy's picture

18o billion buys alot of bunny rabbits and sunshine. And corrupt governments.

JailBanksters's picture

but is that enough to keep the Ponzi Dream alive, I mean Bonds, the Bonds Dream alive.

It's not like they are selling the next Bond to payout the previous Bond sold, because that would be ... well a Ponzi Scheme.

Tic tock's picture

I'm just interested to see how governments are going to sell their mandate to the electorate going forward

mosfet's picture

Anyone notice that investors are now so desperate to keep the lie going that they're rewarding companies for either reporting outright non-GAAP fiction or earnings that narrowly beat underperforming forward guidance failure?  Sheesh, is every earnings quarter from here on out going to be 'Give Everyone a Trophy Day' at Snowflake Elementary.

And these same companies (that twist their shitty results into pure earnings fiction) whine and complain that worker productivity is down.  Apple, Microsoft and every other non-GAPP shit shoveler, why are you suprised your employees are following your own example of being rewarded for failure.

SweetDoug's picture

'
'
'
"try and bolster fragile growth and lift stubbornly low inflation"

Has anyone added up all the nations trade deficits with the filthy Chinese to figure out how much money has been withdrawn, the jobs, from nations around the world as the yellow horde has syphoned off all these jobs?

That's the problem. QE is just pouring more water into a bucket with a huge hole in it.

•?•
V-V

onmail1's picture

<-- whateve pied piper america does

rest of the world does the same

heddahenrik's picture

How can you not get what QE is?

QE means the central bank is issuing new money while backing that up with the assets they buy for this. So that means a currency 100% backed up by real assets (at least if it isn't some worthless bond). For example: People who sell their Apple stock for Swiss Franc are still owning a part of Apple, but now via the Swiss Franc.

So the Yen and the Euro are moving towards fully backed up currencies, while the US Dollar is moving towards collapse as it's just backed up by Fed's almost worthless assets.

The Anti-_-Sheep's picture

And where do all central banks get their orders from? The BIS - the Bank for International Settlements <-- Home of Evil 

Batman11's picture

Fiscal stimulus is what we need, Japan knows as it has spent 25 years in the balance sheet recession following the collapse of a debt inflated asset bubble in 1989.

We can't admit the bankers blew everything up in 2008 just like they did in 1929. 

2008 wasn’t a one off “black swan event”

“Minsky Moments”

1929 – US (margin lending into US stocks)
1989 – Japan, UK (real estate)
1999 – US (margin lending into US stocks, not so much debt in this one)
2008 – US (real estate bubble leveraged up with derivatives for global contagion)
2010 – Ireland (real estate)
2012 – Spain (real estate)

Irving Fisher looked at the debt inflated asset bubble after the 1929 crash when ideas that markets reached stable equilibriums were beyond a joke.

Fisher developed a theory of economic crises called debt-deflation, which attributed the crises to the bursting of a credit bubble.

Hyman Minsky came up with “financial instability hypothesis” in 1974 and Steve Keen carries on with this work today.

Steve Keen saw the debt bubble inflating in 2005.

There are those that knew and the clueless bankers, central bankers and mainstream economists that didn’t know what hit them.

2008 – “How did that happen?”

After the bubble bursts you enter balance sheet recessions that Japan knows all about after having been in one for 25 years since 1989.

They found out what to do:

You need fiscal stimulus, monetary stimulus doesn’t work and austerity makes them worse.

Let Richard Koo, who went through Japan’s 25 year balance sheet recession. talk you through the world today (the banker’s blew it up in 2008 and it has been in a balance sheet recession ever since):

https://www.youtube.com/watch?v=8YTyJzmiHGk

 

Batman11's picture

Mario's austerity is destroying the economies and banking systems of the Club-Med nations and the collapse of the Euro doesn't look far off.

Japan spent twenty five years in a balance sheet recession and it learnt a lot.

They found out what to do:

You need fiscal stimulus, monetary stimulus doesn’t work and austerity makes them worse.

Who's a silly old Mario?

Cthonic's picture

The problem has been recognized for nearly a century, if not longer.  And the powers that be still have a vested interest in overlooking the obvious.

https://mises.org/library/causes-economic-crisis-and-other-essays-and-af...

In foreseeing the interwar economic breakdown, Mises was nearly alone among his contemporaries. In 1923, he warned that central banks will not "stabilize" money; they will distort credit markets and generate booms and busts. In 1928, he departed dramatically from the judgment of his contemporaries and sounded an alarm: "every boom must one day come to an end."

Then after the Great Depression hit, he wrote again in 1931. His essay was called: "The Causes of the Economic Crisis." And the essays kept coming, in 1933 and 1946, each explaining that the business cycle results from central-bank generated loose money and cheap credit, and that the cycle can only be made worse by intervention.

The Anti-_-Sheep's picture

How to smartly play their distorted game:

*Physical bullion 

*Short Mr Market (SH/DOG) 

*Bullion Miner Stocks (goose that lays the Golden eggs) 

*Lrg Cap Dividend Bank Stocks (f their savings rate, buy the stock for divs instead) 

*Oil stocks - sector already beaten down 

*Cash for mop up time after the crash 

I own - SH, PTR, HSBC, JPM, WFC, EGO, & I'll rebuy RDS.B after their earnings report. And of course physical gold & silver. 

Let me know what you think of that strategy. I think it's genius because it's hedged all the way around if you think about it.