"Central Banks Now Own $25 Trillion Of Financial Assets"

Tyler Durden's picture

With 85% of Wall Street telling Citi they expect a "dovish hike signal" from Yellen tomorrow, which means a polite request for another BTFD opportunity, even if as BofA says "expectations for a dovish Fed are coinciding with macro strength in the US (most obviously in housing & consumer spending) as well as highest level of wage inflation since Jan’10"...

... here is a quick reminder of where we currently stand from BofA's Michael Hartnett, from a brief note titled The Liquidity Supernova & the "Keynesian Put."

* * *

Risk assets are now supported by the new ”Keynesian Put”, the expectation that fiscal measures will be deployed to combat any renewed weakness in the economy/markets (independently of any larger political projects). But asset prices remain primarily supported by excess monetary abundance across the world:

  1. There have been 667 interest rate cuts by global central banks since Lehman;
  2. G7 central bank governors Yellen, Kuroda, Draghi, Carney & Poloz have been in their current posts for a collective 17 years, yet only one (Yellen in Dec’15) has actually hiked interest rates during this time;
  3. Central banks own $25tn of financial assets (a sum larger than GDP of US + Japan, and up $12tn since Lehman);
  4. There are currently $12.3tn of negative yielding global bonds (28% of total);
  5. There is currently $8tn of negative yielding sovereign debt (54% of total).

Do not expect any unwind of this $25 trillion in risk asset support to be unwound any time soon, or perhaps ever, or else...

The Crab Nebula supernova

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nibiru's picture

and you all thought we are going to live in boring times of prosperity.

BaBaBouy's picture

"""Central Banks Now Own $25 Trillion Of Financial Assets"""

Why Are they Secretly Screwing With GOLD ???

Whats the End-Game ???

hedgeless_horseman's picture


If I was writing a book where the plot involved a GLOBAL hyper-inflation scenario, I could easily use the above article to set the scene in the first chapter.


6.  Read The Creature from Jekyll Island: A Second Look at the Federal Reserve - 5th Edition, by G. Edward Griffin.

7.  Visit a coin dealer [today, mother-fuckers, before Mr Yellen goes full-dovetard tomorrow!] and buy some gold or silver Canadian Maple Leafs.



We came to understand that our government is powerless over its spending - that our nation's debt had become unmanageable.



blue51's picture

What are the odds , that the FED ever does step 4 or 5 ?

SamAdams's picture

The FED bought toxic debt from the very banks that own stock in the FED.  The banks then took that cash and deposited it with the fed for 1/4% interest.  Quite the deal if you can get it.

Ghost of Porky's picture

Why not just take the Fed public?


Nasdaq ticker symbol JOOO

All Risk No Reward's picture

The establishment opposition to the establishment is blinded about the realities of private control over a debt-money system.

If you controlled trillions in debt-paper and trillion in money, would you hyperinflate?

No. Why? Because it would screw you.

No, what you would do is what any sane person would do... you'd turn off the debt-money spiggots, this would bust the economy (your mega-corporate fronts are TBTF&J), buy it all up for pennies on the dollar, and then, after you've looted everything, then you would hyperinflate to "balance your books" and claim "capitalism failed, WE need to control the economy now."

Nobody has ever properly described the system in which you live.

It is a... pay attention... this chit is real...

Debt-Money Monopolist Mega-Corporate Fascist Empire.

If you think ordinary people are going to be bailed out of their debt through hyperinflation you are blinded by an ersatz illusion of knowledge and not the real thing.

The system controllers aren't stupid (their #1 agenda is to increase debt... how's that working out... A+++++++, right?), they just pretend to be stupid to keep people from realizing they are EVIL.

"pretend inferiority..."
~Sun Tzu, Art of War

actionjacksonbrownie's picture

Secretly? Anyone paying attention knows they are managing the Gold price. As for the reason... they need to maintain a small semblance of value to their imaginary "money" so they can continue to buy up all the major assets in the world with a simple keystroke. I find it absolutely bizarre that this has been allowed the world over, and that the impoverished masses haven't completely wiped out the entire bankster class by now. Perhaps the information age will wake up the brain-dead populace, but I doubt it.

UpTo11's picture

I believe that at some point over the past 10 years, central banks realized they could own all the assets of the world.  I no longer believe they are propping up the market, but simply buying it cheap with multiplied fiat before the masses figure it out.  Maybe the true pawns are the doomsdayers (keep seeling into the CB's).

BlindMonkey's picture

"Why Are they Secretly Screwing With GOLD ???

Whats the End-Game ???"


I have no idea what the end game is but if I could borrow an unlimited sum of money at NIRP, I can give you some idea of how much PMs I would stack.  <<<ALL OF IT>>>

actionjacksonbrownie's picture

You do realize that even at negative rates, those loans can be recalled. So you would get to keep a very small portion (or none, depending on penalties, fees, and present asset value), and the bank that lent you the "money" would get all your Gold (collateral) for free - for simply creating a keystroke entry on their balance sheet.


You cannot win with central banking, or fractional reserve lending, regardless of the rates offered.

BlindMonkey's picture

Those fuckers can't win with boating accidents either.  That happens a lot with stacks of gold.


Or so I am lead to believe.

All Risk No Reward's picture

They control government, though, so they can make sure you don't benefit from it.

And you might just get your *ss tortured... "for the greater good," if that makes you feel better.

JRobby's picture

Defend fiat at all costs has been the game for decades. People watching paper gold prices need to be committed.

JRobby's picture

They will (attempt to) buy another $75 Trillion before they let go. But it will be collapsed before that.

Government needs you to pay taxes's picture

Welcome to Barack's black hole.  You can only move closer to it thru time.  

J Jason Djfmam's picture

Barack Hole Sun, Won't you come, And wash away the rain.

boink.voink's picture

World War 3 will wash all of this away, it always works. All bow down to American exceptionalism (The exceptionally STUPID)

yogibear's picture

Welcome to the North Korean economy. Central planners own all assets.

Winston Churchill's picture

Its a feature,not a bug.

It was always going to be the endgame with fractional reserve banking with money created from thin air.

Its just math.The exponent is now vertical.

Robert Paulson's picture

Wandering by 33 Maiden Lane the other day, I heard this song blaring from the windows:




actionjacksonbrownie's picture

Funny you should mention NK. What is the most isolated and denigrated country in the world, and what is the only country in the world WITHOUT a central bank??

peddling-fiction's picture

A timeline of countries that did not have a Central Bank starting back in year 2000. An eye-opener for sure.


KickIce's picture

He's just more of a "hands on" person for creating misery for his people.

cowdiddly's picture

in a word its steath Nationalization. Mussolini is laughing his ass off in the grave and they laugh at people like Chavez? Whateva. These fuckers are grabbing up everything and it is costing them NOTHING but crap printed out of THIN AIR.

peddling-fiction's picture

Just a reminder for the few here at ZH that have no clue.

Central Banks are private institutions and have nothing to do with Federal nor national.

They are owned by the R0thsch1lds, Sch1ffs, W@rburgs, R0ckefellers et al.

This is one part of the objectives of the n-W0.

They have been successful.

More on this and other aspects of the n-Wo they are rolling out.


I for one can vouch that their global anti-dissent intelligence services are up and running.


neversink's picture

11 Reasons - Excellent asrticle. needs updating, particularly on how muych money the Fed has lent the banks....

Thanks for posting

neversink's picture

11 Reasons - Excellent asrticle. needs updating, particularly on how muych money the Fed has lent the banks....

Thanks for posting

UnschooledAustrianEconomist's picture

I don't think they are successful. I think they are losing control.

But I do see and respect your point of view.

peddling-fiction's picture

For example, if the Fed goes bankrupt, it only is a company with a corporate veil.

It would then proceed to sell its assets.

That would be the money trail you would want to scrutinize. Who ends up with the stocks.


They are bringing their Ponzi to an end and lining up to get the most benefit.

Also WWIII will be needed to wrap things up. The countries never benefit, but they will.



The war-torn countries will then need loans to recover and will plead for a new religious, political and social structure so WW never is repeated again.

Then the n-W0 will be complete, with a false Messiah/Anti-Christ or two to boot.

UnschooledAustrianEconomist's picture

I see those points and consider them highly valid. Including WWIII and the new religious/political/social setup afterwards. Might happen all that way but still I personally doubt there's some evil, widely orchestrated scheme behind.

My opinion about them losing control comes from my experience working big corporate for quite some time now. Never in positions with a lot to say, but always with a lot to see.

And what I see is, that it is all fucked up while maintaining the good appearance at all cost. No investing in assets or people, distrust and intrigues, aversion to reality, fucked up IT systems, fucked up bottom-up and top-down communication, fucked up accounting, business declining, and so on. All signs of failing entities.

And the picture I see in small looks very much alike the picture I see in big. It's not them riding the Tsunami like the Lord himself, it's them struggling not to drown and at the same time trying to look like the Lord himself (because looking like not being in charge equals drowning).





peddling-fiction's picture

Unschooled: I also had the experience of the lots to see kind when I was involved with Fortune 100 IT projects and then later on with Process Reengineering consulting.

That is the first onion layer. The next onion layer is the financial insider info that ZH kindly has shared with us, both by articles and posts.

The third onion layer is the financial and political control of most of the world by Zi0nism.

The fourth onion layer is how all things international are interlocked and controlled by the same folks.

The fifth  onion layer are the intelligence agencies, held together by Freem@sonry and led by the select few bloodlines in the Illuminati.

The sixth onion layer is how the real God, the creator of creators, is hidden behind lies disseminated by Yahweh, the creator of this Prison Earth (because it is not a planet), and his chosen Juice (Zi0nists).

The seventh onion layer is how Jesus (but not distorted or apostate Christianity) stands alone as a model to be followed, who pointed out that the real father of the Juice, Yahweh, is the evil seed. It makes a lot of sense how the Juice still hate Jesus, and how it is in their agenda to destroy all vestiges of Christendom.

The eight onion layer is how some of us humans have the same soul seed like Jesus, and will be persecuted relentlessly as God's children, until this duality we live in, is split and separated for good.

headfake's picture

How does a private entity like the Fed nationalize anything? Only governments can nationalize right?

FrankieGoesToHollywood's picture

I don't think it is true.  Sure, if you consider paper "promises to pay" and value them at face value, then there is $25T.  But that statement alone should cause you to devalue how much in assets you think they really own.

The other day my daughter created a $1000 bill with a crayon.  Do I own $1000 more in assets?

peddling-fiction's picture

It is about real stock ownership and the right to sell off what you own to the "right" people when the SHTF.

They will sell them off as penny stocks to their buddies.

FrankieGoesToHollywood's picture

So then the true value is not $25T?  my point exactly.

Mr. President's picture
Mr. President (not verified) FrankieGoesToHollywood Aug 25, 2016 10:21 AM

YOU don't own 1000 in assets. YOU (and your counterfeiting daughter ) do not have that right.

Only THEY do.

FrankieGoesToHollywood's picture

It is not counterfit.  She has the full intention to pay that $1000.  She promised.

J Jason Djfmam's picture

A good enough time for a long weekend/nullification/reset event.

It isn't like our leaders would look worse than they do now.

waterwitch's picture

EMP strike in Manhattan ought to do it.

NoDebt's picture

"Do not expect any unwind of this $25 trillion in risk asset support to be unwound any time soon, or perhaps ever."

Not to worry, I don't.

Still, I find buying of assets without extinguising their obligation upon purchase (most notably bonds) brings up the old "stock vs. flow" argument.  An argument I don't think we ever really resolved here (though Tyler has his definite opinions on which matters most).

Pricing happens at the margin.  I.e. the next transaction.  If CBs stop being the buyer of last resort on an ongoing basis the price point is likely to slowly creep back.  If they flip the switch the other way and become the seller, it FORCES prices back the other way.  Unless they are always out there supporting the bid the "stimulus" stops existing.  And they find out they bought a shitload of everything and overpaid for all of it.


Sandmann's picture

You describe the Ponzi.

It is straightforward "Rollover and Re-Issue"

If you cannot pay the Coupon or Return the Principal you have essentially Expropriated

LawsofPhysics's picture

Correct, in other words corruption/bribes will simply increase as shit collapses.  this is in fact that ultimate "pricing at the margins".

Just ask anyone who has done business in China.

Sandmann's picture

This invalidates all University Economics courses. It is clear that Economics as those uncles of Larry Summers - Paul Samuelson and Kenneth Arrow - propagated is pure bunkum. It also makes Milton Friedman self-evidently the shill and snake-oil salesman that he was.

They have monetised EVERYTHING and now need more Collateral fabricating. What next ? Mortgage children into servitude ?

They have collapsed the US Dollar Civilisation through Reductio Ad Absurdam

coast's picture

you are mortgages when you get  social security number, so they are already doing what you sid, nd have been for a long long time

LawsofPhysics's picture

LOL!!!  When fraud becomes the status quo, possession is the fucking law.

All that government red tape (like social security numbers) won't matter one fucking bit.

Global Weimar motherfucker!!!

LawsofPhysics's picture


For those asshats that say "you are the collateral", well come and get it motherfuckers.

get long sharecropping and guillotines.