Next Leg Of The Ponzi Revealed - Foreign Central Banks To Begin Buying US Stocks Outright Starting Today

Tyler Durden's picture

We were speechless when we read this from Bloomberg.

The Bank of Israel will begin today a pilot program to invest a portion of its foreign currency reserves in U.S. equities.


The investment, which in the initial phase will amount to 2 percent of the $77 billion reserves, or about $1.5 billion, will be made through UBS AG and BlackRock Inc. (BLK), Bank of Israel spokesman Yossi Saadon said in a telephone interview today. At a later stage, the investment is expected to increase to 10 percent of the reserves.


A small number of central banks have started investing part of their reserves in equities. About 9 percent of the foreign- exchange reserves of Switzerland’s central bank were invested in shares at the end of the third quarter, the Swiss bank said on its website.


The investment will be made in equity index trackers and will include between 1,500 to 2,000 shares, among them stocks like Apple Inc. (AAPL), Saadon said.

More from Globes:

The Bank of Israel today began investing a small part of its $77 billion in foreign currency reserves in US stocks. The central bank's latest Markets Division report states that the new Bank of Israel Law (5770-2010) allows the Bank of Israel to make equity investments, and that it began to do so today.


The Bank of Israel will invest $1-1.5 billion in US stocks, 2% of its portfolio. The report adds that the Bank of Israel has been investing in public bodies in developed countries since 2010.


The Bank of Israel said that the investments in US stocks would be made through UBS AG (NYSE; SWX: UBS) and BlackRock Inc. (NYSE: BLK) The Bank of Israel's Markets Division, which specializes in bond investments, will not be handling the equity investments. It added that the traders will have very limited discretion, and that they may only quote leading indices, in order to reduce the risk.


"We have almost no exposure to countries with big problems. We constantly examine where we invest the foreign currency reserves, and I can promise you that you can relax," Governor of the Bank of Israel Prof. Stanley Fischer said at a closed conference in mid-January.


"The Bank of Israel does not disclose the currency composition of its portfolio, especially not the composition of its equity portfolio," says the Bank of Israel. At the January conference, Fischer said, "Imagine if we were to begin publishing where you invest, so when you stop buying the bonds of a particular country, and this is published, we'll get complaints. That is why we do not publish." He added, "We have an external committee that conducts the examinations. You can assume that we're aware to the fact that there are problems in certain countries."

In other words, while the Fed's charter forbids it from buying US equities outright, it certainly can promise that it will bail out such bosom friends as the Bank of Israel, the Swiss National Bank, and soon everyone else, if and when their investment in Apple should sour.

Luckily, this means that the exponential phase in risk is approaching as everyone will now scramble to frontrun central bank purchases no longer in bonds, but in stocks outright, leading to epic surges in everything risk related, then collapse and force the Fed to print tens of trillions to bail everyone out all over again, rinse repeat, until this chart becomes asymptotic. We say luckily, because it means that the long overdue systemic reset is finally approaching.

Chart: Diapason

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Mongo's picture

Say after me: An AAPL

redpill's picture

They know it's March 1, not Apri1 1, right?

Ahmeexnal's picture

makes sense. buy AAPL and wait for march 7th iPadHD party.
sell a couple days later and pocket a 25% gain.
so this is where all the printed money will be dumped....quite predictably, I might add.

Troll Magnet's picture

israel colluding with ben shalom to prop up the stock market?  you don't say!

Comay Mierda's picture

this isn't about propping up markets. this is about buying controlling interests in major companies with printed fiat bullshit.

All your companies are belong to us

GeneMarchbanks's picture

It is both. Election year means much optimism and as many back ups as possible. It also means an inflationary wave is coming.

Comay Mierda's picture

i am now thoroughly convinced we are going to see the MOTHER of all stock market crashes. then the central bank cartel will buy controlling interests in all major companies on the cheap.

All us little slaves will then TRULY be working for the man.

The revolt is near

fuzed's picture

if they're smart they'll buy facebook and twitter, because that's how revolutions communicate these days.

fuzed's picture

i swear i didnt intend to push enter twice

TruthInSunshine's picture

I'm late to the party, but this is perfectly reasonable.

It's all an expansion of The Bernank's 'virtuous circle,' where the health of the fundamental economy is but a quibble, if not irrelevant.

It's not like central banks, that can print fiat at no cost, directly or indirectly pouring said fiat into equity markets, isn't consistent with fundamental principles of capitalism, or that central banksters can't still maintain that they aren't encouraging (or outright creating) asset class bubbles.

Now, central banksters are buying real estate (including their own buildings), sovereign bonds and equities! It's all fixed! There's more risk! Utopia!

I'm sure that this will have only beneficial consequences, near, intermediate and long term.



JW n FL's picture



Bernake Lends Against the Stock Purchases!

The Money is Rolled over into new Purchases of yet more stock!

The .25% that is paid on money barrowed?? that was raised from JUNK!! Collateral! to begin with? means NOTHING!!

Bernake Does NOT Need QE-3 outright where everyone can see it!

He has been printing every day of every week for YEARS! to push the market this much higher!


Now Bernake can Lend Money Against the Stock Purchased by Banks OUTSIDE! of the United States so that the Paper Trail will stop there..

 Who owns what?

 in what Country?


 Sorry Sheepeople! Looks Like the Ass Reaming with Conitue! the FED just Popped a 1,000,000,000,000,000 milligram Viagra!




engineertheeconomy's picture

All that liquidity flowing overseas since Bernanke was elected has to go somewhere.

Prices 1 yr from now:

Gas - $100/gallon

Loaf of Bread - $40

Dozen eggs - $75

Rent on 3br - $10,000/month

And to think that TED NUGENT is the only one that has a problem with that? ? ?

DavidC's picture


That made me smile!


TruthInSunshine's picture



I meant to say "there's no more risk! Utopia" in the 2nd from last paragraph, since central fractional CTRL+P banksters are buying all asset classes.

Go long everything, and all the time!

Divided States of America's picture

They learned from Madoff, its Ponzinomics 101....Ponzi collapses if theres no more sheeple to find to keep the cash flowing.

Thus, now you have the Jews abroad (Bank of Israel) and from the homeland (Larry Fink, Jim Cramer and three quarters of Wall Street) working together and cheerleading to save the day. It may all be just talk to lead the lemmings off a cliff.

You should all realize now that Jews dont usually do anything if it doesnt benefit them. This means the rest of us are royally screwed.

moonshadow's picture

when are all the ZHers who keep up the anti-Jew rhetoric gona cut that shit out and shut the F up?! bet some of you are the same types who would get all offended if someone said "those muslims" alluding to terrorism. both are pretty stupid but mine was closer to the truth and i dont see that bantered about. there are plenty of english and blacks and indians and gays and all kinds of other types of people who have been naughty players in the system so shut the hell up with the making it sound like all Jews!

engineertheeconomy's picture

Are you the boy in the bubble?

Do you seriously believe it's only Zerohedgers that hate jews?

Several of my closest friends are Jewish, and even they don't like Jews.

So get over it already. You're either for evil bankers or you're against them like Hitler was.

If you already are a banker, you should probably just kill yourself.

pkea's picture

great point comay:)))) they didn't started investing yet: wait a year or so... ahahhhahahaha

Every Third Word's picture

Twitter dude Jack Horsey Loves Gandhi yet bows to China, Iran and others when the limit Twitter. Jack, go back to smelling your own farts, at least you're only harming yourself. HYPOCRITE HORSEY!






CeNBeCowards and BloomBucks liars are all arrogant monkeys. They're coming for you, too.


AbruptlyKawaii's picture

some shit is gonna hapen before march 5th wh zion summit, where this fits in i dunno

Oztralian's picture

does your family reunion include Fred Phelps and Harold Camping?

oldman's picture


All the little slaves have always 'worked for the man'. This is how human society is organized.

What we are talking about now is the mother of all fascism.

This market will now do exactly what the machine wants it to do and there will be none of our silly shit called insider trading except for those can read the market well enough to outplay the machine; they WILL be jailed as insider trading terrorists.

The mother of all crashes? I hardly think so---all the money, all the guns, all the law, all the all-------

And we have seen it for the last several years in socks and bombs-----and now so brazenly in pms and currencies---'they' are screaming 'fuck you slaves' so loudly that it is a joke.

Tell me, Little Man, what are you going to do except what you are told?

Comay, it is time to get serious, put down all of our words and quietly focus our energy on change-----------war afainst the 'little slaves' has been declared and it will not be won in the markets, but in the streets with heavy losses of life.

I hope you are ready for this because you have no choice       om

jerry685's picture

I believe you have it right...

there is going to be a fire sale....

Digital dollars can disappear way faster then money under the mattress...

Real folding money is dissapearing....or piling up at central banks


Draw the money supply down ..and make them hollar...

Then the people will extend their charter.....Unfed strikes again



Caviar Emptor's picture

I was just saying it again this morning: market is just a proxy for monetary expansion. 

Am I hot or what? :-)

Uchtdorf's picture

Point of clarification: Bibi doesn't want to help Obummer. But Bank of Israel wants to help The Bernanke. The Bernanke probably keeps his job if Oblahblah is Prez, not so if Ron Paul wins (a girl can dream, can't she?).

rufusbird's picture

RE: "

this isn't about propping up markets. this is about buying controlling interests in major companies with printed fiat bullshit. All your companies are belong to us."

We're going to find out what it is like to be Chinese!

rufusbird's picture

"I am a Zionist"

Say it isn't so Joe...


NeoRandian's picture

Wouldn't be surprised if a great deal of financial shenanigans have occurred specifically to wreck AAPL. A covert Jew roommate of mine is always defaming AAPL and saying things like they are fools for holding on to so much cash, that they should be over leveraged like every other sensible, bank controlled corp.

Well what are they going to do with all that money? They are already number 1 with no signs of stopping. AAPL is the new god of man, not the state. The central banks will do anything they can to take a controlling interest in AAPL and then ruin in.

engineertheeconomy's picture

AAPL can be likened to the magnificent Redwood Tree.

Grows straight up faster than any other. Then, when it finally comes crashing down, it takes out everything in it's path.

I wouldn't build a house under a Redwood Tree

MrSteve's picture

Every excuse to blame Israel will be exploited on this website, by the incredible tough guys of the internet who refuse to use their real names. They're so brave, they hide behind false names and spread lies because they can.

The wolves are wolves all over the world; without them the sheep would over run the planet. I notice there are fewer sheep and even fewer wolves where ever history is studied. C.M. here has a good grip on history and current events. Follow the fiat money.'s picture

Did your parents really name you MrSteve?

engineertheeconomy's picture

That's Mr. MrSteve Jew

There I fixed it lol

NumberNone's picture

We were warned.   Laurence 'Larry' Fink said yesterday in WSJ  to buy stocks.  In fact the title of the article is 'Why BlackRock's CEO is So Bullish'...I think we know why now.  The whole article is creepy in light of the fact that CB's are now propping up the market.  Reminds me of Lucy asking Charlie Brown to kick the football. 

Reptil's picture


corporatism, straight from a Mussolini playbook.

WmMcK's picture

Congrats on what may be a record for up arrows!

Conrad Murray's picture

I wonder if this sort of thing would need some approval from the top of the administration? Any Zionists milling about the White House?

Oh hey, there is! Vice Traitor, Joe "I am a Zionist" Biden.

john39's picture

if only it was just Biden... I think it would be far easier to list those who are not zionists...  

Cathartes Aura's picture

don't forget Lie-brrrrr-man!  his name crops up with the most egregious shit. . .

oogs66's picture

We would certainly have to protect them if they incest in us.

hidingfromhelis's picture

Freudian slip?  As they say, "If you can't keep it in the pants, at least keep it in the family."  Who needs to be protected from whom is a whole 'nother matter.'s picture

A Freudian slip is what Siggy's wife stripped down to help him knock the ash off of his cigar.

WryObserver's picture

This is just a dumb racist attack. It has no place on a forum where people actually think.

toothpicker's picture

What's race got to do with it? You're the only one talking about race. Are you a racist? Racist!!!

WryObserver's picture

It's just another attack on Jews and Israel. That is most certainly racist, not to mention irrelevant.

This story is about our Fed causing other central banks (plural, get it) including Switzerland to buy U.S. stocks in order to prop up our stock market. They can't do it themselves by charter, so they have gathered proxies to do it.

It would be lovely to have some more intelligent discussion about that.

toothpicker's picture

The attack is certainly not on Israel in this case: US taxpayer money goes to Israel as "aid". The money flows back to US equities (banks). After this money shuffle it's not hard to guess where US military support will go (not that it was beforehand either...)

brokenclock's picture

This was the plan all along. First have central banks print fiat paper to save the bankers/jooze.  Then in return we launch attacks against iran while they buy up the stock market with our/taxpayer money. So simple but highly effective. 


Everyone sing now,,,,,,,,, The Wheels on the bus go round and round...round and round...

TIMMAYYY's picture

Please post a link to sciEntific evidence that supports your claim that the Jews are a race....

FeralSerf's picture

The Jooze are IN a race to steal all of Planet Earth's resourses and assets.

Rabbi Yaacov Perin also announced at Baruch Goldberg's funeral that "One million Arabs are not worth a Jewish fingernail."

“Our race is the Master Race. We are divine gods on this earth. We are as different from the inferior races as they are from insects. In fact, compared to our race, other races are beasts and animals, cattle at best. Other races are considered as human excrement. Our destiny is to rule over the inferior races. Our worldly wise kingdom will be ruled by our leader with a rod of iron. The masses will lick our feet and serve us as our slaves.” — Israeli Prime Minister Menachem Begin (1977-1983) in a speech to the Knesset [New Statesman Magazine June 25 1982]

"By way of deception, thou shalt do war." -- Ha Mossad, le Modiyn ve le Tafkidim Mayuhadim

"I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man who controls Britain's money supply controls the British Empire, and I control the British money supply." Nathan Mayer Rothschild

“Every time we do something you tell me America will do this and will do that . . . I want to tell you something very clear: Don't worry about American pressure on Israel. We, the Jewish people, control America, and the Americans know it.” ---Ariel Sharon, October 3, 2001 PIA (2001). From a monitored news broadcast of Yid Israel radio. Oct. 3.

"Non-Jews were born only to serve us. Without that, they have no place in the world-only to serve the People of Israel," ........"This is his servant...That's why he gets a long life, to work well for this Jew."......"why are gentiles needed? They will work, they will plow, they will reap; and we will sit? like an effendi (master) and eat."........ "That is why gentiles were created." -- Israeli (former chief) Rabbi Ovadia Yosef 10/18/2010 (radio speech in Israel)