Here Is Why The Dow Just Passed 13,000

Tyler Durden's picture

Wondering why the DJIA just passed 13K again? Wonder no more: as the chart below shows it is entirely due to the nearly $7 trillion pumped by global central banks into the world stock markets just in the past 4 years. As Sean Corrigan from Diapason notes, the aggregate global central bank balance sheet has doubled in four years, after doubling in the 5 years before that. We would add that with the entire centrally planned ponzi scheme hell bent on preserving the illusion of nominal gains, global liquidity is now fungibly sloshing from one market to another with absolutely zero resistance whatsoever. At this rate, it should double again in 3 years, then 2, and so on. Will the Dow hit 52K in 5 years in that case? Why most certainly. Just ask any remaining citizens of the Weimar Republic. They know all too well about exponential stock market rises. They also know absolutely everything about the self-delusion that comes with chasing NOMINAL numbers. Oh, and before we forget, expressed in spot gold price, the central bank aggregate tally has moved from being the equivalent of 10 billion oz of gold, to just 8 billion. Guess what is 20% underpriced.

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GenX Investor's picture

This just in from CNBC... Aren't you worried you're missing out here? Folks... 13K, you all ought to get in on this...  Anyone... Bueller...

Pladizow's picture

When Hemingway was asked how you go broke, he answerd - "In two ways: gradually, then suddenly."

tmosley's picture

What's 20% of infinite again?

NotApplicable's picture

Transitory math.

In other news, somebody's managed to sweep 2B oz. of gold out of the CBs. Not bad work, if you can get it. (well, assuming it's not tungsten)

mrgneiss's picture

Speaking of CB's, anyone notice the recent flurry of bankster and CB persona resignations?

clones2's picture

Doesn't really matter if that is the cause.  The only thing Central Banks can do at this point is continue to PRINT!!!  They have to...  They will continue to print, and markets will continue to inflate and rise... 

The "old rules" of valuation and fundamentals don't apply any more.

Tough for bonds to go much lower...  This "money" has to go somewhere.

Badabing's picture

Inflation is responsible for all our problems. We’re running on a treadmill that’s set to fast. OK I understand that as GDP expands the money supply needs to be adjusted or we experience deflation but give me a fucking break! The fat cats that have their hands on the monetary throttle have been using our livelihood to bail out their bad bets. My dad raised a family of eight on manual labor job and as inflation ate away at the value of the dollar my mom eventually had to get a job to make ends meet. Its inflation that doubled the work force while all the jobs got outsourced! What the fuck gives them the right to inflate the money we use to save. The Euro wasn’t my one world order idea! That pipe dream was created as a counterfeit union with the big banks juggling the paperwork for the PIIGS so they could falsely join. Sounds like a setup by the big banks to destroy the Euro’ So the answer is inflating away the dept, without increasing wages? Sure I understand, TPTB want their evil doings that didn’t work to come out of our ass! They will never let Greece go

LongBalls's picture

It no longer matters WTH is going on. Make money from it. Play the ponzi game with stocks and keep stacking. We can't fight this magic trick. We must play along and try to profit/protect ourselves from the end result.

DCFusor's picture

LB, yup, it's workin for me, but it's a lot of work...thinking about an honest job again, frankly.

silverbullion's picture

To hell with all forms of fiat.

Manthong's picture

13 is a lucky number.

Isn't it?

tocointhephrase's picture

Being a Jew (not a Zionist!) yeah itz a great number, 13 moons and all that!

Ghordius's picture

badabing, without the euro we would now have a huge speculation field in the eurozone currencies, with the northern ones so overvalued to throttle all trade and the southern ones so undervalued to kill all trade, too... witness the Swiss and the Greeks

yes, there is a lot of anger without a punching ball - but short of waiting until we pass from a Fiat Reserve Currency System that we have since 1971 to something else, there is little option. ok, we could in theory just use the USD, yes, but this would ruffle many national feathers...

buy gold if you want to save and wait - and don't believe this euro-one-world-order idiocy from the US, it's all propaganda

Papasmurf's picture

You will never get ahead working to feed bankers.  So long as rampant theft is allowed to continue, the money supply increase must exceed the rate of stealing.

Bansters-in-my- feces's picture

Thanks for the link mrgneiss about the Bankster rats jumping ship.

Very interesting.

For some reason my National Radio station has not mentioned this yet.

I'm sure they will though......Sarc/

Common_Cents22's picture

20% of infinity?    why, the bonus of the financial elite and sledge funds.

Shocker's picture

I remember back in 2010 Mar Faber was talking how the Dow could surpass 20,000 but with no recovery.

This is basically the same thing.

No Recovery, pretty simple clear -

The idea that the Dow shows the health of the economy is, well an old myth.

Don Birnam's picture

"Okay, Sweathogs. For extra credit: why did the Dow just hit thirteen thousand ?"

"Ooo ! Ooo ! Mister Kotter ! Mister Kotter ! Because Melissa Lee is wearing her lucky red dress ? Makes as much sense as anything else !"

Convolved Man's picture

Because is comes before 14000?


Don Birnam's picture

"Vinny -- I'm impressed. You and LaVorgna have a career ahead of you at D-Bank, Barbarino !"

Convolved Man's picture

Vinnie:  What? Where?

Freddie:  Hey, Mr. Kot-tair, it's V-I-N-N-I-E.

LongSoupLine's picture



(screaming with foam from mouth) - "I just sold all my gold, silver, children and copper water piping in my house and am long any and all internet stocks...13,000!!! WOOHOO!!"

covsire's picture

Would now be a good time to rack up as much debt at near 0% as possible?

Vagabond's picture

Seriously... I'm wondering the same.

Esculent 69's picture

The only way to protect yourself is with silver bullets.  How the hell else you gonna kill vampires when the come to suck you dry

orangedrinkandchips's picture



"when the music's over...TURN OUT THE LIGHTS!"

SheepDog-One's picture

So the bankers are more rich in fantasyland....hey whatever! Good luck to everyone else who isnt a central bankster though, $5 gas is a bitch when youre broke.

cranky-old-geezer's picture



Folks... 13K, you all ought to get in on this...

i've been hammering away on this theme in many of my comments.  USD has lost 1/3 of it's value since 2008, 40% since 2007.

2007 14,000 high would be 23,300 in today's devalued dollars. 

13,000 is 55.8% of the 2007 high.  So it's still down 44%.

I understand stock traders don't like hearing this.   They wana believe they're making money again. 

But they're still way below where they were in 2007, and have a long way to go just to break even.


EscapeKey's picture

No, you're wrong; it's got something to do with "Greek debt hopes".

At least if you smoke Marketwatch hopium.

BeetleBailey's picture

Just.....moved my stops up.......I trust this market as much as a hungry wolf with a open hen house door....

HelluvaEngineer's picture

Do those stops work at 6:00 AM?

PrintingPress's picture

Printer ink is definately under priced!

resurger's picture

So ze Xerox Printers.


Let's make a deal

mc_LDN's picture

So does this means every Central Bank in the world is locking its populations into an almighty death roll? Is there any return? Are they crashing all of us on purpose?

LawsofPhysics's picture

yes. same as it ever was.  Wake me up when the jubilee starts.

The Big Ching-aso's picture



Dow spelled backwards is Wod.   Wad.    Whatever.

victor82's picture

Please. Let us not disrespect the memory of the great John Holmes by mixing his nickname with that of Ponzi banksters.

LawsofPhysics's picture

exponential equations are a bitch.

A Lunatic's picture

Looks like we're gonna have to kill Osama Bin Laden again real soon.

Seasmoke's picture

you all can have your gold.......i am sticking with and stacking silver forever

ZeroChance's picture

But, it seems so peaceful out there.  Things are improving and stuff... no?

Scotch-n-Soda's picture

I heard maria Bartiromo is going to flash her hooters today in support of Fat Tuesday and the fact that the DOW has passed 13K.