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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Vilfredo Pareto's picture

Why not?  If you fuckers want our paper bad enough to bid it up and accept a guaranteed loss (negative return) we got no problem with it, fools.  Lol

Grandad Grumps's picture

All of the problems can be swept under the rug when you create the money to buy assets out of thin air and then buy everything. When it is time to crash the system, all you lose is stuff created out of thin air and own all of the assets.

Aubiekong's picture

The only investment that might retain value is stacking PM.  And its just a might not a guarantee, but investing anything in terms of a fiat currency is guaranteed to end badly....

Silver Savior's picture

I would say that PM's are the most sure thing we have going for us. Nothing comes close.

Bear's picture

When purchasing assets with printed money, you still have to sell pm's to keep up appearances

Bear's picture

"$1 trillion of financial assets just in the first four months of 2017"

Like with most addictions one has to keep taking on greater quantities to keep the same high. I bet they are now a little concerned since their 2017 purchases have not move asset prices much.

To Hell In A Handbasket's picture

It's about ownership in the end, it's always about ownership. Especially if it is done legally.

Honest Sam's picture

Not so.  

I swear on my mama's grave that if she removes the Temporary Restraining Order she took out against me two years ago, Margot Robbie will satisfy me for the rest of my natural life and maybe a bit beyond.

https://www.youtube.com/watch?v=sByoeuNy7lM

Silver Savior's picture

If anyone stacked their precious metals and needed to branch out I would seriously look at Ethereum. And this comes from a guy who absolutely hates digital currency. It's just a hedge. 

wholy1's picture

The PTB's - Psychopaths That Bugger - same old time immemorial elemental racket - [asset] CONSOLIDATION/TRANSFER by way of debt-slave additional fiat currency authorization/monetization.  Everything else is either a facilitation of or distraction from said.

mailll's picture

When the Banks "givith", everything is great.  When the Banks "taketh away", everything collapses. 

The banks gave during the roaring 20's and took it back in 1929.

The banks gave during the early 2000's and took it back in 2008.

The banks are giving during this time.  When will they again take back?

The higher the giving goes, the greater the crash. 

Any predictions on when they will decide to take back (stop buying stocks and bonds, stop giving loans,

and whatever else they buy with free money to control our, or their, economy)?

Vilfredo Pareto's picture

Never.  If they think they can get away with it.

 

They might.

reTARD's picture

It's just moar Joobucks.

Yog Soggoth's picture

Maybe I could take out a loan, lease a storefront selling guns and fishing hooks, sell them to myself with help from another loan, declare bancruptcy, sell half the merchandise online and buy a cabin in the woods for my cat. Makes as much sense as BOJ's plan except they actually have 765+ tons of gold just in case they decided to stop playing paper games. I'm pretty sure my cat would let me live in the cabin.

IridiumRebel's picture

Remember Susan Rice and the tapping?
Yeah me neither....

Archive_file's picture

I'm in San Francisco. Power outage in the entire financial district for at least the last hour. Hacking???

Archive_file's picture

LOL. How about the Norks? It's a false flag operation soon to be blamed on your freinds, the "Russians."

In.Sip.ient's picture

Yeah, but I don't recall the

number to push for "power outage"...

 

KimAsa's picture

OT, but why did Barry Manilow have to come out as gay? I liked him fine just the way he was. Or was that Billy Joel?

This debt will only and ever be repaid on the back(s) of middle class labor, until the middle class is either unwilling or unable to labor for the 1% anymore. What the banksters have done is a unique and modern form of slavery and theft on the middle class. FUCK YOU central fucking banksters.

Archive_file's picture

It's all about Richard Simmons.

Vilfredo Pareto's picture

According to neokeynesians deflation is merely the result of lack of bold monetary policy lol.   They also think they can pirouette through all this and avoid the crack up boom too.

 

I guess we will see.

VWAndy's picture

 And they paid for every bit of it with fiat magic folks.

GreatUncle's picture

And every action they take removes a little bit more faith in FIAT.

wdg's picture

Its hard to believe but the monetary and financial system of the US and almost all western nations is a massive criminal enterprise, better known as central and fractional-reserve banking. In the core of this system of plunder and theft is the Federal Reserve which is privately owned by the International Criminal Banking Syndicate. Hanging is too good for these bastards. We need to bring back quartering; all that is required are four energetic draft horses. And justice should be rendered in the public square for all banksters and their agents in Congress and the Whitehouse to see. 

Insurrexion's picture

 

More fucking proof of a Monster movie where you are the one who dies in the end.

Now, you might say, “So what? I’m making money, who cares how.”

I say, “Fine, you fuckers. Get it your fake returns in a fake economy while you can, because the fake Central Banks have made real economics irrelevant.”

Look at the fucking real interest rates around the fucking world (the real indicator of the health of the real economy). Down, down, down (since 1980).

The fucking CBs created fake this economy by “hoping” their fucking Keynesian “stimulation” would work on what was a structurally sick real economy.

It didn’t fucking work. They created the “Frankenstein Economy.”

Now the CBs, (the Dr. Frankensteins) have blistering tight assholes riding the shoulders of a Monster towards a cliff in the dark; while, you and your families’ lives depend on them to “monitor and respond to the data”…for fuck’s sake.

Be crystal clear about this. The Dr.s cannot stop pumping fake cash into their Frankenstein Economy. Otherwise, the Monster stops walking, or falls over the cliff, crashing down with the Dr.’s on its shoulders and everyone dies.

 

The question for you is not if, but when.
Gallumhrasha's picture

well if the dollar crashes, at least i dont need to make any more payments on my car

Gallumhrasha's picture

I say everyone right now should take a loan and purchase whatever they want then crash the dollar. We get to keep all the assets and restart the economy

Miss Informed's picture

The Fed has already beat you to it to the tune of $5 trillion.

mailll's picture

This Zerohedge article says "EVERYTHING" when it say's "Nothing Matters".  The BANKS control the financial system.  And when currency becomes digitized, and all transactions are traceable, they will be able to monitor and control us. When paying with a credit card, they can monitor our purchases.  When paying with cash, they can't. This is why they wan't to digitize currency.  They want to monitor ALL purchases, and incomes.  You see, having money isn't enough.  They want CONTROL!  No one in history has ever been able to take over the world with armies.  But they can take over the world by way of complete control of the financial system.  Look at how much money controls our lives now, we basically serve moneyAnd who will this world dictator be after the world is conquered?  This is all theoretical of course, but very possible. 

AE911Truth's picture

Not theoretical. This is the plan of the Central Banks.

The solution is to stop using their fiat.

In.Sip.ient's picture

LOL, NO, The solution is to do as NK does...

 

Go nuclear, or go home...

 

Clowns on Acid's picture

Actually the headline should be "Nothing is Real"

donefuhkingaround's picture

METALLICA  "Hardwired"

 

In the name of desperation

In the name of wretched pain

In the name of all creation

Gone insane

 

We're so fucked

Shit outta luck

Hardwired to self-destruct

 

On the way to paranoia

On the crooked borderline

On the way to great destroyer

Doom design

 

We're so fucked

Shit outta luck

Hardwired to self-destruct

 

Once upon a planet burning

Once upon a flame

Once upon a fear returning

All in vain

 

Do you feel that hope is fading?

Do you comprehend?

Do you feel it terminating?

In the end

 

We're so fucked

Shit outta luck

Hardwired to self-destruct

Hardwired to self-destruct

 

Self-destruct

Self-destruct

Self-destruct

Insurrexion's picture

 

Is there a dinic relationship between the SF power outage today and SF's Metallica?

"Nothing Else Matters"

https://www.youtube.com/watch?v=tAGnKpE4NCI

Rock on Bitches.

donefuhkingaround's picture

nice tits - another connection - since who hasn't yelled "show your tits" at a rock concert ?

donefuhkingaround's picture

COROLLARY:

 

SUPERJOINT    Today and Tomorrow

 

Precious little companionship

Of family in the bloodline

A jungle in the cards

The murderous

Disastrous of existence

Transmission interference

Backslapping and chatting it up

A practice (we) could not stomach

Incite conservative outrage

With bizarre behavior

 

And trust no one

 

Picture-charming tippler

Descended grit construction

 

That paved the way to Golgotha

Further down the road

 

Unreeling, old and burning

 

Mourn a past innocence

(Now) replaced by (a)

Growing cynicism

 

Damned cut out

 

Unlike our predecessors

Convenient static

 

Spit lick crumbs

 

Killer friend

Killer small talk

 

Open close strip

 

Defacing denominator

Differences will occur

 

Self-demonization

 

Brilliant dick accent

Differences will occur

 

The snark of the faux

 

Killer friend

Killer small talk

 

Descended grit construction

 

Today's fuck-all

Is tomorrow's fuck you

(repeat 3x) 

 

Trust no one

 

Today's fuck-all

Is tomorrow's fuck you

(repeat 3x) 

 

Trust no one

Archive_file's picture

I just spoke 3 hours ago to 2 young men in BDU's loading their car here in San Francisco. They were in an officer training program at a local university. I asked if they knew whether the national guard was being activated. One of them replied,"Oh yeah, I saw that. Yeah, national guard has until July 1st to get ready." I asked if that was just California or nationwide. He responded "nationwide." I haven't seen or heard anything about troop call ups so he may have slipped up and divulged some "insider" information.

Shits about to get real.

*NSA: I can be reached in the van I live in down by the beach with all the other deplorables. Unfortunately, it looked pretty glassy and offshore, so bring your surfboard along with your handcuffs. You'll have to paddle for me.

Chet Ricco's picture

I'm planning a big party for when it all comes crashing down. Just paid off the house, no debt at all! Hurray for me!!! Of course most of you would turn up your nose at my piece of heaven, but I am happy with my wife, son, farm, livestock, and my crick full of fish. Take my advice, be happy with less.

chrbur's picture

soooo....the central banks are buying stocks and stuff with money that they print in their basements....sweeeeeet.....

Clowns on Acid's picture

The Central Banks are trying to tell the new wave, populist  politicians...."We are in charge, and can outspend or sink you at anytime".

Magooo's picture

If you want to understand why the CBs are doing what they are doing - this is all you need to know --- GROWTH IS OVER ---  what we are seeing is a desperate battle to delay collapse. 

 

When collapse does come it will be PERMANENT.  And you will starve.  Everyone will starve

 

 

HOW HIGH OIL PRICES WILL PERMANENTLY CAP ECONOMIC GROWTH

For most of the last century, cheap oil powered global economic growth. But in the last decade, the price of oil production has quadrupled, and that shift will permanently shackle the growth potential of the world’s economies.  http://www.bloomberg.com/news/articles/2012-09-23/how-high-oil-prices-will-permanently-cap-economic-growth

 

 

HIGH PRICED OIL DESTROYS GROWTH

According to the OECD Economics Department and the International Monetary Fund Research Department, a sustained $10 per barrel increase in oil prices from $25 to $35 would result in the OECD as a whole losing 0.4% of GDP in the first and second years of higher prices.  http://www.iea.org/textbase/npsum/high_oil04sum.pdf

 

 

OIL PRODUCERS NEED $100+ OIL

 

Steven Kopits from Douglas-Westwood said the productivity of new capital spending has fallen by a factor of five since 2000. “The vast majority of public oil and gas companies require oil prices of over $100 to achieve positive free cash flow under current capex and dividend programmes. Nearly half of the industry needs more than $120,” he said http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/11024845/Oil-and-gas-company-debt-soars-to-danger-levels-to-cover-shortfall-in-cash.html

GreatUncle's picture

And your share of the "great CTRL-P" is ... drum roll ... nothing!

Why can't they just fucking admit the only economic tool they have is to print money into existence from fresh air.

After that the only option left is the nuclear one in a last ditch hope to preserve the system as it is for themselves.

Miss Informed's picture

I keep wondering if the central banks buying bonds, stocks and mortgage backed securities is not all about the Rothschilds et all taking title to every thing of value, with credits made of thin air. That will leave the rest of us disenfranchised with nothing to do but pay usurary to them, the owners of pretty much everything.

Osamabeentokin's picture

I knew we were screwed on the day the only idea the geniuses had left was just to print more. Historians will call this the age of Ctrl-P economics. The last death rattle of Neoliberalism.

Let it Go's picture

All this feeds into the currency markets as well. When you consider just how destabilizing currency swings can be it is easy to see how a strong dollar could obliterate the global economy. It should not be a surprise in our current global economy that behind the curtain central bankers could be busy manipulating currencies so they trade in a narrow range that will not rock the boat.

Many market watchers have become dubious of recent market moves and over the top efforts of both governments and central bankers to keep this so-called recovery moving forward. More on the merit of this controversial opinion and the ramifications it holds in the article below.

 http://brucewilds.blogspot.com/2017/03/currencies-are-trading-in-false-paradigm.html

CAPT DRAKE's picture

Maxine Waters says the CB has this one.  As long as we have faith, all will be fine.

Just go to work at your pretend job, continue to borrow and spend like the world is going to end tomorrow, because it just might.

Osamabeentokin's picture

Even imaginary money runs out. When there is more money than there are stars in the universe, even if we strip mine the entire sahara desert, there won't be enough silicon to process all those transactions. Even at the Trillion dollar mark in yearly balance sheet bloating, there is no turning the corner. They have no idea how to fix it, the only plan they have is "Keep It Going Till I Retire".

I'd understand the plan if Elysium was orbiting the earth, but if you think about it, the longer you wait, the more likely you take the blame and the more likely it indeed happens when you retire, which means you're powerless, which means you're fucked because the new blood always takes aim at their predecessor when things go bad. Indeed, when things reach a critical point of no return, extending the game a little longer increases your chances of being the one left holding the bag. Now you might think that's a clever observation, but i'm the last of the village idiots compared to other people...

 

Consider this: 

The Fed has "broken the mold" by suddenly appointing a woman at the Fed. I"m not saying that's a bad thing, I"m saying the Fed is a traditionnally more male oriented org and giving the woman the job is a thing you do when things are about to go south.

The power players in Washington know this as well, which is why they allowed a black man to become president for the first time, and if things had gone according to plan, we would have had the first female prez after him. But instead, we had an "impulse buy" moment by the power elites, and the electoral college voted Trump in. The reasons being: A)Nobody likes him, so no great loss and B)He has the personality profile of someone who gets more obnoxious and unapologetic as the situation worsens, making him the perfect straw man for the little people to burn.

The media keeps getting shittier, as though everyone has suddenly become creatively bankrupt. Are they really creatively bankrupt or are all the good creatives part of some Bunker Entertainment Division and are too busy getting ready to pacify the surviving elites for a chance at living in their enclave? Where IS Jessica Alba? Did she become Dick Cheney's bunker wife or something?

You don't need 3 tons of tinfoil on your head to realize where I'm going with this: IT IS AS THOUGH A GREAT SHIFT IS TAKING PLACE...A SHIFT FROM THE REGULAR CREW TO THE GRAVEYARD CREW.

They are all quietly exiting the stage as loud and distracting newcomers arrive to bedazzle us. 

 

ds's picture

It is not the money pumps that matter. As every major economy is doing it, it makes no difference to whatever the price levels in the paper markets. It is where the printed monies go in the economies you reside in. 

Some of the printed monies will seep into propping up artificial employment (living wages, etc) because the Powers there still have some fear (not concern) on mass revolts. Other Powers will resort to more blatant force on their People.

Be on the right side. Debts kicked down the road to your next generation is not where you want your legacies to be. Arguably, it is asinine to rush into USA and EC to share their debts. Similarly, the existing tribes in these places should say to the immigrants "YOURS", if they can.The 1% who hold 99% of global wealth are agnostic about nations and economies, they are globalists. Their economic base is not entirely threatened by their divisive preys who can increasingly be replaced by robots, etc. You need a war for this global class struggle to end.

Even if the bubble of the paper assets burst tomorrow, what matters is how the debts that sustained the bubble going to be shared.Never heard of socializiing the loss and privatizing the gain ?

Wake some of us up if you find the safe haven where a debt Jubilee is declared and Powers that control economies are not captives of a Predatory Class. Best that you can do is stay away from paper markets and rethink your loyalties to nations, that are not necessarily your tribes, eg USA now. A habitat (eg USA) can still be a place where you can get your best prices (not values) and enjoy them with your tribes, wherever they maybe in this internet age.

p.s.  A diaspora tribe before they bought their country controlled the global economy in a non internet age. All nations were their habitats. You know what tribe and that their tribal loyalty has not diminished. I am not of this tribe.