We were almost eager to swallow the blue pill and admit that the "recovery" is an actual recovery this time (non-GAAP that is, one where all the economic data is first excluded)... and then we happened to glance at this chart, courtesy of Citigroup's Matt King.
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Ignoring for a second the direct implication of what the chart highlights, namely that due to central bank intervention there is no more net supply of debt left in the world, now that for the first time ever, central banks are set to monetize all global government debt [6], something we showed previously...
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... and leave virtually no other securities to satisfy investor demand (especially when one considers that the entire S&P is slowly but surely LBOing itself [8]) in the process sending nominal prices of existing marketable risk assets to record levels, an even more appropriate question is the following:
Is the reason why in 2015 central bank intervention is set to surpass even the emergency bailout of the global financial system in the aftermath of the Bear and Lehman collapse, because the global "self-sustaining" recovery is strong... Or because it is "quite strong"?
Inquiring minds who read between the propaganda bullshit lines are dying to know (the same minds would be delighted to also know how all this gargantuan, unprecedented central bank intervention will ever be reversed, but since that moment will never, ever come, they are happy to drop it).
