Why "Nothing Matters": Central Banks Have Bought A Record $1 Trillion In Assets In 2017

Tyler Durden's picture

A quick, if familiar, observation to start the day courtesy of Bank of America which in the latest overnight note from Michael Hartnett notes that central banks (ECB & BoJ) have bought $1 trillion of financial assets just in the first four months of 2017, which amounts to $3.6 trillion annualized, "the largest CB buying on record."

As Hartnett notes, the "Liquidity Supernova is the best explanation why global stocks & bonds both annualizing double-digit gains YTD despite Trump, Le Pen, China, macro..."

And for those who have still not seen it, here is the only chart that matters.

Finally, as a reminder also from Hartnett, any time the central bank punch bowl is taken away, an unpleasant "financial event" inevitably happens.

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VinceFostersGhost's picture



Central banks (ECB & BoJ) have bought $1 trillion of financial assets


On purpose?

hedgeless_horseman's picture


What is the con?  The con is that economic growth is both good and real.  It is most often neither  The long con is nominal returns versus real returns. 


What keeps the con going?  Apart from greed?  Money printing.  


Please, understand that if the amount of money in a closed system doubles, the value of each monetary unit halves, and the price of everything, including stocks, increases 100%.



spanish inquisition's picture

So they just "printed" the trillion dollar coin.

SomethingSomethingDarkSide's picture

Nothing fucking matters anymore - lalalalalala btfd

spanish inquisition's picture

Remember when Krugman thought 1 trillion dollar coin was going to solve all our problems. How many has the Fed printed so far?

SafelyGraze's picture


These instruments may be used in any retail store in the United States.

They may be used by the person named and described in the instrument-book.

Keep the instruments in a safe place. Parents are responsible for the safekeeping and use of the children's instruments.

When you buy any instrumented product, the proper instrument must be used in the presence of the storekeeper, his employee, or the person making delivery on his behalf.

If your instrument-book is lost, destroyed, stolen, or mutilated, you should report the fact to the local Instrument Board.

If you enter a hospital, you must turn your Instrument Book over to the Person In Charge. 

When a perosn dies, his Instrument Book must be returned to the local Instrument Board in accordance with regulations.

NOTE: when the Instrument Book was issued, the registrar asked you how many Instruments you owned on that date. If you had any instruments, you were allowed to keep them, but the instruments representing that quantity were removed from your new Instrument Book. 

SoilMyselfRotten's picture

Free markets have finally caught up to Dodo birds, both extinct

J S Bach's picture

This is how they steal the wealth - using their international-fractional-reserve-fiat-counterfeiting system.  This is the inevitable outcome with this nefarious monetary scheme.

Pairadimes's picture

And they will keep doing this until the shooting starts.

Mercuryquicksilver's picture

They'll be the only ones who can afford bullets.

nope-1004's picture

^^  +10000000000000000000000000000000000000000000000

Manthong's picture


..and we still have 8 months to go .

It’s all coming apart for the MF’s.    :- D

stizazz's picture

"Liquidity Supernova is the best explanation why global stocks & bonds both annualizing double-digit gains YTD"

While small businesses in America are closing shops by the thousands. Liquidity is floating upwards to the big boys.

Screw the little guys.

Rufus Temblor's picture

"Who's going to watch their 6?"

The CB's?  That would be the politicians and the MIC.

For everyone else?  No one.

N57Mike's picture

Being a ZH reader for many years, I have a cut & paste scrapbook, of the best blogs I've seen and this one sums it up best, (I am not shure who the author was, may have been IridiumRed).

"OK here is the current scenario:

The bank machine has been spewing $1,000 for every one dollar asked for. A lot of wise ZH posters stand around and point at it sagely yammering "this is not right" ... "this can not last" ... "it will run out". Meanwhile even wiser guys are backing up their trucks to the machine and loading up. Meanwhile, the bearded guy (now bearded girl) behind the machine keeps filling the machine up. The boyz with the trucks buy fuel, food, boats castles and islands with possible-scenario cash and off they go. Inflation? pandemic? riots? famine? ...  they don't give a shit now because they have their private armies and islands. The rest of us? Left behind?  .... We were oh so wise."
Pairadimes's picture

They are "wise guys", alright.

This is the crux of the issue. Too many make the choice to become part of the problem. It is understandable, in fact, predictable (Game Theory) behavior, but if there is to be any society left, some will have to put principles before avarice. Call me old-fashioned, but these are the few who earn my respect.

N57Mike's picture

our true reward is not in this life ... this "mortal" world is just a testing ground, a place where Vulcan hammers our soul into a golden chalice. 

Took Red Pill's picture

I'm not a religous person myself but this new image shows the significance of it all.


fiftybagger's picture

Sorry to be harsh, but anyone who believes that fake CGI bullcrap put out by NASA is a complete dimwit.


pods's picture

The bankers love to have people thinking like that. Keeps you docile while they shear you.

"The more you suffer in this life, the better heaven will be."


Some beady eyed central banker lauging his ass off reading shit like that.


general ambivalent's picture

It's true. John Calvin was basically the Janet Yellen of his time. The efficacious grace of the markets save whom they will, without regard for their acts in this world.

meditate_vigorously's picture

Amen. Whether true or not, the after life is a tool for the slavers to avoid accountability for screwing people in this world.

How many times have you heard people reassure themselves that evil people are going to hell? They should be getting violent. That is the only way these problems can be solved (revolution/civil war, or criminal justice).

booboo's picture

Sometimes a conscious works the way it was intended. I could give two fuck alls about who is backing up what truck to load up with shit. There is a hell of a lot more to life than food and shit to play with. I work to satisfy my own soul and to help a few people along the way

LMAOLORI's picture




ROFL the kids should just settle down  This is just more business as usual.  Flashback....


Accounting tweak could save Fed from losses


"Could the Fed go broke? The answer to this question was 'Yes,' but is now 'No,'" said Raymond Stone, managing director at Stone & McCarthy in Princeton, New Jersey. "An accounting methodology change at the central bank will allow the Fed to incur losses, even substantial losses, without eroding its capital."

The change essentially allows the Fed to denote losses by the various regional reserve banks that make up the Fed system as a liability to the Treasury rather than a hit to its capital. It would then simply direct future profits from Fed operations toward that liability.

This enhances transparency by providing clearer, more frequent, snapshots of the central bank's finances, analysts say. The bonus: the number can now turn negative without affecting the central bank's underlying financial condition.


"Any future losses the Fed may incur will now show up as a negative liability as opposed to a reduction in Fed capital, thereby making a negative capital situation technically impossible," said Brian Smedley, a rates strategist at Bank of America-Merrill Lynch and a former New York Fed staffer.



Bobrsta's picture

I see no indication that shooting will ever start

meditate_vigorously's picture

Hitler tried to end this and The Jews turned him into a mythological demon for it. Like a reverse martyr.


OverTheHedge's picture

The fractional reserve thing is outrageous in its own right, but I think that in this case it's not even fractionally scammed - this has to be out-and-out magic money being used to asset-strip the system. The question is: at what point does the system fail? When do people pack up and go home? At least you know that there is always someone who will buy your crappy stocks, no matter how iffy they might be.

Until they stop buying, and then? Somebody, who is on the inside, is going to do quite well out of this. Everyone else isn't.

Rufus Temblor's picture

The system fails when a country, with the military might to defend itself, decides to back its currency with gold.  Dollar hegemony is based on military power.

yogibear's picture

Central Banksters are acting like North Korea, totalitarian economics. While businesses shutter keep the bankers fat and happy.

Caloot's picture

Did this guy just say free markets?

Secret Weapon's picture

I am willing to bet you a 1T coin that an honest audit of the Fed will show that they have purchased a whole lot more than that.

hedgeless_horseman's picture


"...honest audit of the Fed..."

Good luck.

pods's picture

It would be like trying to audit Calvinball.

And every answer would be "cause we can."


Sick Monkey's picture

Agreed. What the lastes ridiculus dirivitive number? 800 trillion or so. 

EmmittFitzhume's picture

They haven't "Printed" jack shit! These fucking people are just adding zeros to a computer system and getting hard assets in return.  Kill them all!

Scuba Steve's picture

Beeks?I mean Krugman? ... Wonder what happened to Krugman?

Hopefully he is getting fukked up the ass byBig Gorillas like Beeks got ... every day every hour.

HRClinton's picture

(((They))) got the FRED(dy), you got the Mercury.

Any way the wind blows...

JRobby's picture

So getting to $4T in 2017 should not be a problem!!!!!

Yea! Privatize the whole fucking market!

It already is. Play at your own risk!!!!

Hitlery_4_Dictator's picture

Silver at 17.93 crushing it, tell me (besides losing all inventory via CME, which will never happen ayway) how will anything find real value when they have unlimted power and money supply??

Hitlery_4_Dictator's picture

That's what I belive as well.  We all know the real value of pm's should be stratospheric right now..........here's why. 


You could wrap $1 bills around the Earth 77,368 times with the debt amount!

If you lay $1 bills on top of each other they would make a pile 2,170,574 km, or 1,348,731 miles high!

That's equivalent to 5.65 trips to the Moon!
davinci7_gis's picture

Everything in the present system is tied to the dollar...if America ever looses it's status as the reserve currency of the world, then that's it. That's when you'll cash in part of your gold for whatever new comes along...the Amero, the One world currency, whatever it is.

Hitlery_4_Dictator's picture

Yes we know, we have been waiting since 1971. It's never going to happen.  The banksters are playing a brilliant long game while dumbing down the population at the same time. Have you seen the Millennials? I rest my case.