Reuters Floats Disturbing Trial Balloon: "The ECB May Be Forced To Buy Stocks"

Tyler Durden's picture

Over the past two years, we have repeatedly cautioned that the biggest challenge facing the ECB as it expands its bond monetization is the ability to find sellers of private securities, i.e., a shortage of monetizable bonds, both government and now corporate. Last March, even JPM warned that it doubts the Eurosystem can "meet its quantitative target without distorting market liquidity and price discovery." That however has not stopped Mario Draghi from steadfastly continuing the ECB's QE, even as the bond shortage has gotten more acute by the week. In fact, according to Jefferies analysts, the shortage is now so profound that the ECB is effectively buying back bonds from itself.

According to a note by Marchel Alexandrovich and David Owen, first flagged by the WSJ, courtesy of the circular nature of the Eurosystem, the central bank has masked what is essentially a backdoor monetization of its own securities.

How does Draghi achieve this? As the WSJ notes, the ECB’s QE program is implemented through several national central banks, like Germany’s Bundesbank and Spain’s Banco de Espana. National central banks buy bonds according to rules set by the ECB. The problem is that these constraints narrow the stock of debt the banks can buy from. These rules prevent the purchase of too much debt from any one country and stop central banks from buying debt with steeply negative yields. Portuguese and Irish debt, for instance, is now becoming scarce. But the national central banks also sell sovereign bonds. They sometimes reduce their holdings as a part of their reserve management activities, which aim to ensure that banks, state institutions and other organizations “manage their euro-denominated reserve assets comprehensively, efficiently, and in a safe, confidential and reliable environment,” according to the ECB’s website.

As a result, while the German Bundesbank bought €209 billion in sovereign bonds between March and July, it also sold off €43 billion of such debt, according to Jefferies. Those securities are then back on the market to be bought, potentially helping the central banks to work around the program’s restrictions.

The conclusion: “This suggests that one of the ways that QE has been implemented, especially in the countries where scarcity may be an issue, is that the (National Central Bank) is essentially buying bonds from itself; or more intriguingly, perhaps even from the other NCBs in the Eurosystem,” said Mr. Alexandrovich, one of the economists.

Circular nature of the ECB's bond monetization notwithstanding, it merely confirms the underlying problem: there are simply not enough government bonds for the ECB to keep buying, effectively putting a hard limit on how long Draghi can continue his QE program.

There is, however, one loophole, one which the BOJ exploited recently when instead of expanding its bond purchases, it launched an even more aggressive equity buying spree, by doubling the amount of ETFs the central bank would buy.

That, according to Reuters, is precisely what will happen next, as it writes that the ECB may soon be forced to follow the Bank of Japan's example and buy equities as part of any expanded stimulus programme. Reuters then recaps the familiar problem: "The European Central Bank could run out of eligible bonds for its 1.7 trillion euro bond-buying scheme, meaning alternative options are on the table should it decide to loosen policy further to lift growth and inflation across the bloc. Analysts say these could include large-scale share buying, a policy that the BOJ has already adopted after it started purchasing equity exchange traded funds (ETFs) for its own quantitative easing scheme six years ago."

As Kuroda will readily admit, ETFs offer an easy way to directly monetize, and nationalize, the stock market:

"ETFs allow an investor to trade a range of assets, from a basket of stocks to government debt. ETFs, which offer a convenient way to purchase a broad basket of securities in a single transaction from an exchange, have risen in popularity with investors due to their simplicity and lower fees."

However, the ECB faces significant hurdles in helping all 19 euro zone members equally without distorting a key market for investors. According to Reuters, buying ETFs in the 19-nation euro zone would be far from simple for the ECB, both practically and politically. "How do you buy an index which favours all countries within the euro zone? Obviously the ECB doesn't want to be seen favouring one market above another," said Commerzbank economist Peter Dixon.

The answer is, "you don't", so you do whatever Mario Draghi's former employer, Goldman, advises him to do.

Putting Europe's ETF market in context, investments in Europe-listed ETFs are worth just over $500 billion, compared with nearly $200 billion in Japan and more than $2 trillion in the United States, according to consultancy firm ETFGI.

And while, the European ETF market is bigger than Japan's, such a scheme would have to benefit 19 member states, from heavyweight Germany to tiny Slovakia. If it buys an ETF that tracks a pan-European stock index such as the Euro STOXX 50 or MSCI's EMU index , which are weighted in terms of market capitalisations, the ECB runs the risks of being seen to favour only the bloc's biggest economies or sectors.

Alternatively, the ECB may simply throttle liquidity even more, if - for example - it bought single-country ETFs, which would result in liquidity issues since the ETF market is still developing.

Continuing its analysis of which ETFs the ECB would buy, Reuters notes that of the top 10 firms listed by market cap in the MSCI EMU stock index, four are French, three are German, with the rest listed in Belgium, Spain and the Netherlands.

The BOJ's foray into equity buying highlights potential pitfalls. While the BOJ does not reveal details of its buying, analysts say it disproportionately benefits a handful of high-priced shares that have outsized weightings in the Nikkei stock average. The ECB has been careful to limit its asset buying in a way which follows some orderly distribution across the region. Under its government bond-buying scheme, the ECB buys bonds in relation to a country's contribution to the bank - although it has deviated from this already in purchases of corporate bonds.

"As with the current bond buying programme, the capital key would certainly be an issue they have to think about," said Antoine Lesné, EMEA head of ETF strategy at SPDR ETFs, part of State Street Global Advisors. "This would determine the choice of the index and/or the strategy. Then one would need to look at the current product availability. This would also skew the impact on the larger contributors to the euro zone economy which may need less of that support compared with those of the periphery for example."

Most troubling about the Reuters piece, however, is that it is phrased in a way as if the ECB's ETF purchases were already a done deal, and all it needed was a way to prepare the market. To wit:

There are many options available to the ECB before it chooses to buy ETFs and tweaking the parameters of its current bond-buying programme would also ease pressure on the central bank to follow more radical measures such as stock purchases.

However, even Reuters admits that because of the complexity and because stock investments are not as prevalent in Europe as in the United States, there may be fewer benefits from such a plan than from other options. Asked in May whether the ECB would contemplate buying equities, its vice president Vitor Constancio said only that no further measures would be adopted so soon after policy was eased in March. At least two ETF providers contacted by Reuters said they had not been in any discussions with the ECB.

As Thomas Bartolacci, head of ETF Capital Markets at Vanguard, the second-biggest provider of ETFs in the world after BlackRock said "Equities are fraught with more questions and that would make buying by any central bank a little more difficult of a pill to swallow." That said, Vanguard and BlackRock would both be delighted if the ECB did in fact launch monetization of stocks by way of ETFs as it would lead to even greater demand for passive investments (which Vanguard would gladly provide), while at the same time frontrunning the ECB would send the European market to record highs, spilling over across the world.

Sadly, what is not discussed is that as CLSA concluded one week ago when looking at the BOJ's ETF purchases, it said that the "BOJ is nationalizing the stock market" because that is precisely what it is doing with every incremental intervention in the stock market.

"If it seems strange that the BOJ is hamstringing the price discovery mechanism of the Japanese stock market by partially nationalizing it, it is all the stranger that it chooses to do so by substantially skewing its buying towards such a distorting index. The arbitrary decisions of the Nikkei committee get to choose the destination of trillions of yen of BOJ – and hence government - money."

Alas, this latest Reuters "trial balloon" points to just one direction: despite the political complexities, the ECB will soon have no choice but to start monetizing ETFs, and perhaps an outright basket of stocks, as the European stock market follows Japan in the "nationalization" route. And why not: after all the bond market has already been nationalized in both Japan and Europe, with the ECB explicitly providing the funding for merger transactions. Considering that the true mandate of all central banks has always been the "wealth effect" and pushing risk assets higher, why stop there?

Finally, once the ECB and BOJ (not to mention the SNB of course) are both monetizing ETFs, how long before the US Federal Reserve will be forced to join in, and the global nationalization of all stocks markets is complete?

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ANestIOS's picture

"Forced" (sic!!!)

BaBaBouy's picture

Well The "Paycheck To Paycheck" Majority will be glad to hear that their Stock Portfolios will be going up ~~~

Jim Sampson's picture

Tim Cook is furiously masturbating to the news.

Haus-Targaryen's picture

Idiot "Europeans" throwing away their children's future for "Europäische Einheit über alles"

Pinto Currency's picture

Buying stocks just distorts the measure of economic health.

Moving the needle with their fingers.

Instead of reform and market restructuring we get more financial market fakery.

AlaricBalth's picture

If I were to go into a brokerage firm with money I created from thin air (my HP printer) to buy stocks, after the manager stopped laughing, I would be swept away by the Secret Service and/or FBI and thrown into a Federal Special Housing Unit for observation and interrogation. 

Folkvar's picture

They're already buying equities, they're all at it and have been for ages. 

economessed's picture

Agreed.  The plan should just be ramped-up, and move directly to buying all items for sale listed on Craigslist.  It is potentially the most effective way of injecting money into the pockets of the downtrodden.  Not that I have anything to gain by saying this, but if anyone in Europe is looking for a 22-year old rototiller or a (mostly complete) china set with only a FEW chips on a couple of the saucers, they may want to check out the great investment opportunities sitting idle on Craigslist....

Perimetr's picture

Prelude to systemic collapse



pods's picture

Mario needs a big fat cock "forced" up his backside.

These scumsucking moneychangers have no shame.

Let's hope they have no heads to go along with it.


t0mmyBerg's picture

any central banker buying euities should slowly have their skin removed and then a slow drip of vinegar dripped on their exposed flesh while staked out in the sun for a few weeks

RafterManFMJ's picture

I really fail to understand how an entity can print currency from nothing, debauching the currency and citizen's savings, and buy real stocks with said currency - just to benefit the rich?

Naturally this is how modern banking works but - it's so transparently obvious - are citizens of the EU this dumb and sheep-like?

And the Swiss printing and buying US stocks?

Japan's gov owning material percentages of their "market?"

How isn't this reported far and wide for the Frankenstein monster that it is?

Sam Clemons's picture

What do you propose normal people do about it?  The banks are beyond control of everyone.

Radical Marijuana's picture

Being able to enforce frauds necessarily becomes exponentially more fraudulent. The ability to enforce frauds inherently spins out of control of everyone, including those originally able to do that. The existing systems are based upon applications of the methods of organized crime, through vicious spirals of all aspects of political funding resulting in the the enforcement of frauds. The excessive successfulness of controlling civilization through the methods of organized crime necessarily becomes runaway criminal insanities.

The only things that "normal people" could do about that would be to better understand the principles and methods of organized crime, because the only better governments would necessarily have to be based on better organized crime. Of course, the vast majority of "normal people" have been way too well brainwashed to believe in bullshit to be able to do that. Furthermore, the only publicly significant apparent alternatives that "normal people" could turn to are various forms of controlled opposition. There is almost nothing which is publicly significant than the central core of organized crime, bankster dominated governments, surrounded by layers of controlled opposition groups. Inside that context, "normal people" are not publicly presented with any deeper analysis of their real problems, and therefore, they have no realistic ways to respond to the established systems based upon the abilities to enforce frauds becoming exponentially more fraudulent.

Hence, that exponentially increasing fraudulence must spin out of control of everyone, including the central bankers which have been supervising that for several Centuries, which arose out of previous Millennia of civilization based on being able to back up lies with violence, which became more sophisticated and integrated systems of legalized lies, backed by legalized violence, whose most important forms are the ways that public governments enforce frauds by private banks. Those symbolic robberies of the few by the many are automatically becoming exponentially worse, in ways which necessarily are spinning more and more out of control, and therefore, are headed toward series of psychotic breakdowns, and crazy collapses into chaos, as severe social storms blow through, due to the potential for those social storms being pumped up by exponentially increasing enforcement of frauds, which never stopped those from still being fundamentally fraudulent.

"Normal people" are normally insane, due to

having adapted to live inside enforced frauds!

"It is no measure of health to be well adjusted to a profoundly sick society."

-- Jiddu Krishnamurti

"They are normal not in what may be called the absolute sense of the word; they are normal only in relation to a profoundly abnormal society. Their perfect adjustment to that abnormal society is a measure of their mental sickness."

-- Aldous Huxley

The Bizarro World does not have merely one mirror, in which things are simply reversed in the way that they appear to be backward. Rather, there are multiple mirrors, and even mirrors that are hinged, or unhinged, in ways that their reflections can reflect back on each other, in almost infinitely repeating reversals, whereby what is backwards may be flipped around and around, again and again ... To apply that to the notions regarding enforcing frauds, on a superficial level that appears to violate the laws of nature, that nothing can be made out of nothing, and nothing can be sent to nothing, but rather, there can only be the transformation of energy, which continues to exist, and have its overall existence conserved.

Making "money" out of nothing appears to superficially be a violation of the most basic law of nature, the principle of the conservation of energy, which has the special case of the conservation of matter. (Hence, the idea of money backed by gold and silver, which cannot be created out of nothing, and therefore, the notion that such bimetallic based money is less vulnerable to systematic frauds, the ways that fiat "money" made of nothing as debts surely is.) Furthermore, making "money" out of nothing misunderstands the concept of entropy in absurdly backward ways. Indeed, the degrees to which the dominate natural languages and philosophy of science have been hijacked by the biggest bullies' bullshit world views, which then became the banksters' bullshit world veiw, goes far beyond what "normal people" continue to almost totally take for granted, when the continue to "think," and "communicate," using the dominate natural languages and philosophy of science, which have been based on being able to enforce frauds for a long, long time!

However, on a deeper level, since those frauds are enforced, those frauds do not violate the laws of nature, after one includes the energy that enforces frauds into the superficial appearance of the fraudulence of creating "money" out of nothing. Similarly, on relatively superficial and/or deeper levels of analysis, the lies are different at every level. The vast majority of "normal people" are not aware of how the monetary and taxation systems really work through public governments enforcing frauds by private banks. The public schools and mass media massively lie by omission regarding those social facts. Therefore, most people are not conscious of how the MAD Money As Debt systems are based upon the enforcement of frauds, paradoxically because the persistent enforcement of those frauds has become such a perpetual war against their consciousness that they have been mostly conditioned to not want to understand what is really happening.

"Normal people" have adapted for generation after generation to living inside of enforced frauds, despite those becoming exponentially more fraudulent. Therefore, "normal people" have become the matching bookends of increasingly impotent political idiots, which correspond to the increasingly psychotic psychopaths that are controlling them, in ways which are necessarily spinning out of control, because being able to back up lies with violence never stops those from still being false.

Inside that context, it is worthwhile to perceive that the current crop of central bankers are merely the publicly apparent agents of the ruling classes, which originally made and maintained systems based upon public governments enforcing frauds by private banks. Therefore, those central bankers have the impossible task of keeping the debt slavery systems going, despite having to double down, driving the overall resulting debt insanities to increase at about an exponential rate. For thousands of years, Neolithic Civilization social pyramid systems were able to develop their abilities to enforce frauds, to become exponentially more fraudulent, while that expressed itself through all of the sociopolitical systems being dominated by the best available professional hypocrites. Within that context, the so-called "normal people" can not effectively resist the excessively successful applications of the methods of organized crime being applied against them, especially because the "normal people" are not willing and able to better understand how and why those principles of organized crime are necessarily what is controlling civilization.

The vast majority of "normal people" continue to want bogus "solutions" based upon the same old-fashioned false fundamental dichotomies and related impossible ideals. Therefore, the only public significant opposition to the systems currently supervised by the central bankers are controlled, to propose and promote those kinds of bogus "solutions." IT IS BARELY POSSIBLE TO EXAGGERATE THE DEGREE TO WHICH EXPONENTIAL PROGRESS IN PHYSICAL SCIENCE, WITHOUT ANY PROGRESS IN POLITICAL SCIENCE, HAS RESULTED IN CIVILIZATION MANIFESTING RUNAWAY CRIMINAL INSANITIES, INSIDE OF WHICH OVERALL SITUATION THE SO-CALLED "NORMAL PEOPLE" ARE JUST AS INSANE AS THE CENTRAL BANKERS!

For further elaboration, see my recent comments under:

The Mass Escape From Reality

The laws of nature never stop working, and therefore, nothing which depends upon those laws of nature is going to stop working. However, the sociopolitical systems based on being able to enforce frauds required civilization to develop in ways which became criminally insane, in the senses that fraudulent financial accounting systems could only be socially successful to the degree to which the majority of people could be brainwashed to deliberately ignore and misunderstand the basic laws of nature in the most absurdly backward ways possible, and yet, collectively take doing that almost completely for granted!

The ways that globalized Neolithic Civilization is becoming more and more INSANE, at about an exponential rate, were originally driven to develop by the ways that the laws of nature manifested through human beings. Furthermore, the ways that civilization is going INSANE are also still consistent with the laws of nature. INSANITIES DO NOT VIOLATE THE LAWS OF NATURE. However, that also means that there are no ways to prevent the psychotic breakdowns driven by systems based upon being able to enforce frauds becoming exponentially more fraudulent.

Certainly, it is correct to state that the vast majority of "normal people" can not effectively do anything to resist the central bankers driving the creation of the public "money" supplies, as MAD Money As Debt, made out of nothing, which then can "pay" to buy up more and more of everything, whose most important result is that "money" made of nothing has been "paying" to strip-mine the natural resources of a fresh planet at an exponential rate ... While doing so is more and more running into the real limits to growth on a finite planet, which is expressed through various increasing sets of diminishing returns. Since those relatively objective facts are socially expressed through fraudulent financial accounting systems, the social results are becoming increasingly paradoxical.

However, since existing sociopolitical systems are dominated by the best available professional hypocrites, it is politically impossible for them to publicly admit and address what is really happening. Rather, they must continue to deliberately ignore and/or misunderstand the accumulating apparent anomalies, manifesting through the paradoxical psychotic breakdowns of their ways of thinking, communicating and behaving, that developed as sets of consistent contradictions, within systems based upon enforcing frauds, being as dishonest about themselves as they could possibly become. THAT MAXIMUM POSSIBLE DISHONESTY, AUTOMATICALLY INCREASING, APPLIES JUST AS MUCH TO THE SO-CALLED "NORMAL PEOPLE," WHOSE LIVES ARE BEING CONTROLLED BY THE CENTRAL BANKERS, AS IT DOES TO THOSE CENTRAL BANKERS THEMSELVES.

Theoretically, enough of the "normal people" would have to go through series of intellectual scientific revolutions, and profound paradigm shifts, in the ways that they perceive their political problems, in order that they could better understand themselves living as general energy systems, acting as entropic pumps of environmental energy flows. However, because they have actually adapted to living INSIDE ENFORCED FRAUDS, for generation after generation, the vast majority of the so-called "normal people" can not comprehend the degree to which they have been brainwashed to believe in bullshit that has INVERTED EVERYTHING.

Since the existing sociopolitical systems are ALREADY based upon enforced frauds, which do NOT admit and address that they ARE fraudulent (despite actually becoming exponentially more fraudulent), the degree to which civilization is based upon deliberately ignoring and misunderstand the laws nature as much as humanly possible is automatically getting worse, faster ... With terribly tragic ironies, the exponential progress in physical science has enabled the development of technologies to allow the exponentially increasing enforcement of frauds, while nothing like that kind of progress in physical science is allowed to happen within political science, because doing so would require integrating and surpassing the already achieved profound paradigms shifts, due to series of intellectual scientific revolutions which have already happened during the previous history of the development of the philosophy of science.

At the the present time, "normal people" are political idiots, who have nowhere else to turn but towards various controlled opposition groups, who are also similar political idiots. Although it is theoretically quite possible to better understand human beings and civilization as manifestation of general energy systems (and moreover, it becomes more and more imperative to do so, the more that advancing physical science enables advancing technologies), to actually better understand political economy can NOT be done without series of profound paradigm shifts. In order to better understand human beings and civilization, one must go through intellectual scientific revolutions, in order to admit and address how and why governments are the biggest forms of organized crime, controlled by the best organized gangs of criminals, whose symbolic figureheads are now the central bankers. Doing so has to go THOUGH the looking glasses, which have INVERTED the public perceptions of everything, in the most absurdly backward ways, in cascading fractal patterns. Furthermore, that is the only sufficient way to better understand how and why those systems are spinning more and more out of any human control.

The almost total triumph of building a globalized political economy on the basis of enforcing frauds REQUIRED that the general public, the "normal people," deliberately ignored and/or misunderstood the laws of nature, as much as possible. Furthermore, that is way more profound than the what the various publicly significant controlled opposition groups are telling those "normal people" are their problems. At the present time, despite the about exponential progress in mathematical physics, and the related advancing technologies, political science remains as deeply mired in integrated systems of dominating MADNESS as it humanly possible to do.

It was always inevitable that people who could legally counterfeit the public "money" supplies would end up being able to buy everything, in ways such as outlined in the article above, whereby each step is taken in ways which lead to the next step, and so on, and so forth ... However, those who superficially recognize that still tend to stay within the deeply entrenched, bullshit-based, views regarding political economy, and therefore, tend to continue to spout superficial "solutions," which are bogus, because those stay within taking to much for granted their perception of the world through false fundamental dichotomies, and the related impossible ideals.

"Normal people" actually live as gangs of robbers too. Unless they understood that, then they could not more effectively resist the GREATER THEY, namely the central bankers acting as the public agents of the ruling classes, whereby public governments enforcing frauds by private banks are engaged in symbolic robberies, which are robbing more and more of everything, as fast as possible ... (I.e., central banks are buying up more bonds, etc., as well as being driven towards buying up more stocks too.)

"Normal people" want to continue to misunderstand themselves in the most absurdly backward ways possible. "Normal people" want to continue to believe in the banksters' bullshit regarding the political economy, and their roles as "normal people" within those systems based upon the maximum possible dishonest bullshit. Since everything almost totally operates through fraudulent financial accounting systems, which deliberately ignore the principle of the conservation of energy, as well as deliberately misunderstand the concept of entropy in the most absurdly backward ways, the vast majority of "normal people" almost totally take for granted deliberately ignoring and misunderstanding how they are actually living as entropic pumps of environmental energy flows.



While a genuinely more scientific view can understand how and why that has happened, since natural selection pressures drove the development of artificial selection systems to become based upon the maximum possible enforced frauds, in ways which were always actually consistent with the laws of nature, nevertheless, the results are that civilization is manifesting exponentially increasing criminal insanities. Thus, the tragic trajectory we are on is that there must be enough insanity to cause series of psychotic breakdowns. While I would WISH that those could be catalyzed by better social psychiatry, the essential issues are that civilization has become too terminally sick and insane to be able to accept any superior catalysis of the transformations which it theoretically needs to go through, such that its general level of understanding of political science could become better reconciled with its progress in the understanding of physical science, HOWEVER, the vast majority of "normal people" are NOT interested in anything like that, but rather, they continue to WISH that somehow impossible ideals could be realized.

Meanwhile, of course, the ruling classes, through their publicly significant agents, the central bankers, will likely NEVER publicly admit and address the essential issues that everything they are doing is based upon public governments enforcing frauds by private banks, and therefore, those central bankers can not do anything else but continue to double down on their collective MADNESS. At the present time, they continue to be able to do that, because the vast majority of "normal people" do not want to admit and address their own deeper levels of similar MADNESS, while the only publicly significant controlled opposition groups are also likely to NEVER going to public admit and address their own MADNESS.

Globalized Neolithic Civilization was built of the basis of being able to back up lies with violence, which became the ways that public governments enforce frauds by private banks. Along the way, almost everyone living inside those systems adapted to believe in the maximum possible dishonest bullshit, in ways which enable the best available professional hypocrites to operate those systems, in ways which deliberately ignored and/or misunderstood what they were really doing, as much as was humanly possible. Furthermore, as those systems based upon enforcing frauds automatically become exponentially more fraudulent, the best available professional liars and immaculate hypocrites, such as the central bankers, struggle to keep that going and growing ... while the vast majority of "normal people" can not effectively resist, because they can not understand what is really happening, but rather, continue to attempt even more astonishing feats of maintaining exponentially increasing levels of cognitive dissonance towards the accumulating apparent anomalies ...

In the end, I REPEAT, only series of intellectual scientific revolutions, and profound paradigm shifts in political science, could possibly come to better terms with how and why the existing political economy is almost totally based upon exponentially increasing enforced frauds. Theoretically, "we should" develop an understanding of "economics" which could be reconciled with better understanding of all general energy systems. However, doing so practically means that "normal people" would have to better understand that they necessarily live as gangs of robbers, while the biggest gangs of robbers are governments, which are currently dominated by the best organized gangs of robbers, which are the biggest gangsters, the banksters, whose symbolic public figureheads are the central bankers.

As long as most "normal people" continue to want bogus, bullshit-based, "solutions" whereby impossible ideals will somehow be realized, then those bogus "solutions" will continue to be offered to them by the controlled opposition groups, which stay inside the banksters' bullshit-based view of economic activities. At the present time, the public schools and mass media continue to LIE BY OMISSION to the vast majority of "normal people" as much as possible.

The mainstream media's presentations of what the central bankers are doing is drowned under deepening piles of bullshit! However, almost all of the so-called alternative news, such as Zero Hedge, are still overwhelmingly dominated by various controlled opposition groups. While most of the articles and comments published on Zero Hedge are more critical of the roles of the central bankers, almost none of the superficially correct analysis goes through deeper levels of analysis, in order to correct the enormous errors that the ways that they are "thinking," and "communicating" about "economics" is doing so in ways that continue to take for granted the degree to which those notions regarding "economics" are still as absurdly backward as possible.

As long as "economics" continues to be thought about in ways which can NOT be better reconciled with physical science, then political science continues to be stuck in the doldrums, left behind in the dust by exponential technological progress, being primarily applied to back up bigger frauds with more force. However, in order to better reconcile "economics" with general energy systems, one has to go through series of intellectual scientific revolutions, and profound paradigm shifts, in order to admit and address how and why civilization has become almost totally stark raving MAD.

Indeed, it barely possible to exaggerate the degree to which political economy based upon enforced frauds is necessarily also based upon deliberately ignoring and misunderstanding the laws of nature as much as possible, since the only connections between the laws of nature and the laws of men were the abilities to enforce frauds. Most "normal people," including the "normal controlled opposition" to the central banking systems, which supervise those enforced frauds, do not appear to have the slightest clue regarding how clueless they actually are, regarding the degree to which they almost totally take for granted staying inside the banksters' bullshit view of "economics." Indeed, to the similar degree to which enforced frauds dominate the globalized political economy, which are more than 99%, so too do the levels of deliberate ignorance and misunderstanding of the basic laws of nature in the minds of the vast majority of people also match that!

dark pools of soros's picture

Have you tried to TALK to any of the people?  They are so vapid progressive that their belief in the current system IS their religion.  Yes all these fucknuts that laugh at religions as fairy tales, are living the biggest fairy tale right now..  so to have them 'wake up' would be a 'losing their religion' moment and shock them to their empty core..  that is why they are so violent about losing to Trump.  Their whole belief structure goes down their multi gender toilet


Haraklus's picture

It also means that the Central Banks own real assets that are not part of their monetary system.


As it stands, CBs tend to only own things denominated in their own paper money.  Since they can print paper money, that doesn't matter very much.


Where it gets scary, to me, is that CBs are gearing up to own not only income in fixed fiat dollars, but they are going to own real, productive assets paid for by said printed money.  And they're going to keep buying more and more stocks to keep prices up, make no mistake.

And real income owned by CBs means real income not owned by private parties.  It means more and more income for fewer and fewer people, and it's getting closer and closer to naked confiscation of productive assets.  It's terrifying. 

Eddie Baby's picture

These guys are going to find there heads on sticks one day.

Allen_H's picture

What a load of dogshit, they already well fucked.


"Forced" to buy, or that was the plan all along to create cash out of thin air and buy(own) everything?

Quantum Bunk's picture

The USSA (United Seppo Socialist Republics) is running Germany. Germany is a shell of its former self. If the EU wants to survive, it must purge itself of scum like Draghi.

GunnerySgtHartman's picture

And just when you thought the clusterf*ck couldn't get any worse, it does.  Look out below!

Boubou's picture

Is this creeping nationalization?

Doom Porn Star's picture

There are NO nations in the EU.   Nations have borders.  

The EU is a supra-national federalist construct.

This is a well engineered Control Fraud by the Central Banking Cabal.

The Banksters are counterfeiting and forcing the corporations to issue bonds and equity to buy via their regulatory enforcers at the local, formerly 'national', government level.

Not nationalization: theft via forced conversersions of private assets into counterfeited debt/credit accounting chits.

aliens is here's picture

Time to create some shell corporation and issue stocks for Feds to buy.

Yars Revenge's picture

Like the SNB/BOJ hasn't already been buying stocks for everyone who's charter prevents them from buying stocks?

Thebighouse's picture

Where's Corzine when you need him most?


IntercoursetheEU's picture

Like the donkey eating it's own... oh never mind


OregonGrown's picture
"The ECB May Be Forced To Buy Stocks"


Who in the F really thinks the ECB isnt buying stocks already........ Look at Japan, Look at switzerland........  The ECB is the stock buyer of last resort!

101 years and counting's picture

its really quite funny, at this point.  there is no one for them to then sell to.  so, eventually, all their holdings will go to zero......this is purely just a period of desperation, ever since Bernanke killed capitalism in 2009.

SomethingSomethingDarkSide's picture

I'm going to start a public company that sells my stool.  

Hedge Funds and Average Joes will be begging to "Front Run this Shit"!

brada1013567's picture

Instead of Helicopter money, why not drop it from one of those Space-X rockets?

brada1013567's picture

I think they are turning Japanese.


I really think so.

wmbz's picture

Pure horseshit! Those asshole have been buying stawks!

I really wish someday someone in the MSM would call these lying fucks out...Bigtime! Of course that won't happen they are all a bunch of fucking pussified morons!

RawPawg's picture

Go long Shovel Stocks

Because they just keep Digging That Hole

conraddobler's picture

Keep up the charade, eventually a few people will own everything, but then of course that is the point.


Turin Turambar's picture

Not a bad idea.  After all, when one can create fiat currency ex nihilo with a couple of keystrokes on a computer, why not buy everything on the whole dam# planet?

luri's picture
luri (not verified) Sep 2, 2016 10:25 AM

etf's go both ways - both long and short! is the ECB picking POSITIONAL favorites - ie, long only?

if so, will they first BAN short ETF's?


Apocalicious's picture

Because it worked out so well for John Law...

Flounder's picture

Still wanna be short Jeff?

Spungo's picture

It's hilarious how NOBODY says anything to stop this. This is monarchy level of corruption. Print a bunch of money then give it to your personal friends. This is how stock compensation works. You get paid in options that are only worth something if the company stock goes up. If the central bank is buying the stock, it means your options are worth a fortune even if the company is shit.

Everyone knows this. All conservatives know this. All liberals know this. Everybody has a vague idea of how stock compensation works. Do anything to make stocks go up because that's how executives get paid.

S Spade's picture

who's following who?'s a circle jerk / goat rope.  the US fed, err central bank(s), are hand in hand with the euro central banks

ring around the rosey, we all fall down

YesWeKahn's picture

I gonna IPO myself to be valued 1 trillion euro, these mf will buy my stocks, I have no fear, I don't have to work to be rich and famous, that sounds really good.

Uranium Mountain's picture

No wonder God will burn the Earth with fire. 

Bryan's picture

Forced?  Maybe they can be forced to get the heck out of the business of market and economic manipulation for political gain.

directaction's picture

If the ECB believes that buying a small amount of stocks via ETFs or even outright purchases of individual large-cap stocks is good for the European economy and people, then buying ALL of the stocks of ALL of the large-cap and small-cap stocks would be even better, even blissful, a workers paradise.  
I do hope the ECB and the fed both come to this realization soon so they can get this journet into state-ownership of all stocks and of all industry completed. Oh, what a happy day that will be!  

Quinvarius's picture

LOL.  They already are.