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Confirmed: The People Printing the Currency Are Inflating the Stock Market
The Daily Bell
Staff Report
6/18/2014
Excerpt:
"Cluster Of Central Banks" Have Secretly Invested $29 Trillion In The Market ... Another conspiracy "theory" becomes conspiracy "fact" as The FT reports "a cluster of central banking investors has become major players on world equity markets." The report, to be published this week by the Official Monetary and Financial Institutions Forum (OMFIF), confirms $29.1tn in market investments, held by 400 public sector institutions in 162 countries, which "could potentially contribute to overheated asset prices." – ZeroHedge
Dominant Social Theme: Stock markets are going up because of natural "animal spirits."
Free-Market Analysis: For many years, we've been writing that Western stock markets are pushed upwards via central bank money printing. So the idea that central banks are directly holding equities is no surprise.
What is slightly surprising is that the OMFIF is being allowed to publish data confirming central bank money holdings. The size of these holdings is phenomenal and our deepest wish is that it will silence nattering about "stock picking."
It won't, of course. We'll still be subject to regular profiles – we're sure – of people who simply have a knack, mathematical or otherwise, for "investing."
What else? This article will have a certain half-life and then likely be conveniently forgotten by the mainstream media that wants to maintain the "meme" that stock investing has to do with "fundamentals" not central bank money flows.
Here's more:
We agree with this analysis right up until the end. Our presentation of the current "Wall Street Party," has been offered within a context that people CAN take advantage of the market's current hyper-stimulation, and that indeed this may not just be a "party" but the Last Party. After this latest blowout comes a crash that may usher in a far more globalized system of finance.
We see this as part of an orchestration, a kind of directed history. Equity markets are being moved up in concert around the world and the idea this is simply coincidence doesn't make much sense to us. Top bankers meet every month or more in Switzerland to "coordinate" activities. These asset expansions are not created in a vacuum.
........................................
View the complete article at:
http://www.thedailybell.com/news-ana...-Stock-Market/
The Daily Bell
Staff Report
6/18/2014
Excerpt:
"Cluster Of Central Banks" Have Secretly Invested $29 Trillion In The Market ... Another conspiracy "theory" becomes conspiracy "fact" as The FT reports "a cluster of central banking investors has become major players on world equity markets." The report, to be published this week by the Official Monetary and Financial Institutions Forum (OMFIF), confirms $29.1tn in market investments, held by 400 public sector institutions in 162 countries, which "could potentially contribute to overheated asset prices." – ZeroHedge
Dominant Social Theme: Stock markets are going up because of natural "animal spirits."
Free-Market Analysis: For many years, we've been writing that Western stock markets are pushed upwards via central bank money printing. So the idea that central banks are directly holding equities is no surprise.
What is slightly surprising is that the OMFIF is being allowed to publish data confirming central bank money holdings. The size of these holdings is phenomenal and our deepest wish is that it will silence nattering about "stock picking."
It won't, of course. We'll still be subject to regular profiles – we're sure – of people who simply have a knack, mathematical or otherwise, for "investing."
What else? This article will have a certain half-life and then likely be conveniently forgotten by the mainstream media that wants to maintain the "meme" that stock investing has to do with "fundamentals" not central bank money flows.
Here's more:
China's State Administration of Foreign Exchange has become "the world's largest public sector holder of equities", according to officials, and we suspect the Fed is close behind (courtesy of more levered positions at Citadel), as the world's banks try to diversify themselves and "counters the monopoly power of the dollar."
... While most have assumed that this is likely, the recent exuberance in stocks has largely been laid at the foot of another irrational un-economic actor - the corporate buyback machine. However, as The FT reports, what we have speculated as fact for many years now (given the death cross of irrationality, plunging volumes, lack of engagement, and of course dwindling credibility of central planners)... is now fact...
Central banks around the world, including China's, have shifted decisively into investing in equities as low interest rates have hit their revenues, according to a global study of 400 public sector institutions.
"A cluster of central banking investors has become major players on world equity markets," says a report to be published this week by the Official Monetary and Financial Institutions Forum (Omfif), a central bank research and advisory group. The trend "could potentially contribute to overheated asset prices", it warns.
The report, seen by the Financial Times, identifies $29.1tn in market investments, including gold, held by 400 public sector institutions in 162 countries.
... In Europe, the Swiss and Danish central banks are among those investing in equities. The Swiss National Bank has an equity quota of about 15 per cent. Omfif quotes Thomas Jordan, SNB's chairman, as saying: "We are now invested in large, mid- and small-cap stocks in developed markets worldwide."
To summarize, the global equity market is now one massive Ponzi scheme in which the dumb money are central banks themselves, the same banks who inject the liquidity to begin with. That said, good luck with "exiting" the unconventional monetary policy. You'll need it.
... While most have assumed that this is likely, the recent exuberance in stocks has largely been laid at the foot of another irrational un-economic actor - the corporate buyback machine. However, as The FT reports, what we have speculated as fact for many years now (given the death cross of irrationality, plunging volumes, lack of engagement, and of course dwindling credibility of central planners)... is now fact...
Central banks around the world, including China's, have shifted decisively into investing in equities as low interest rates have hit their revenues, according to a global study of 400 public sector institutions.
"A cluster of central banking investors has become major players on world equity markets," says a report to be published this week by the Official Monetary and Financial Institutions Forum (Omfif), a central bank research and advisory group. The trend "could potentially contribute to overheated asset prices", it warns.
The report, seen by the Financial Times, identifies $29.1tn in market investments, including gold, held by 400 public sector institutions in 162 countries.
... In Europe, the Swiss and Danish central banks are among those investing in equities. The Swiss National Bank has an equity quota of about 15 per cent. Omfif quotes Thomas Jordan, SNB's chairman, as saying: "We are now invested in large, mid- and small-cap stocks in developed markets worldwide."
To summarize, the global equity market is now one massive Ponzi scheme in which the dumb money are central banks themselves, the same banks who inject the liquidity to begin with. That said, good luck with "exiting" the unconventional monetary policy. You'll need it.
We agree with this analysis right up until the end. Our presentation of the current "Wall Street Party," has been offered within a context that people CAN take advantage of the market's current hyper-stimulation, and that indeed this may not just be a "party" but the Last Party. After this latest blowout comes a crash that may usher in a far more globalized system of finance.
We see this as part of an orchestration, a kind of directed history. Equity markets are being moved up in concert around the world and the idea this is simply coincidence doesn't make much sense to us. Top bankers meet every month or more in Switzerland to "coordinate" activities. These asset expansions are not created in a vacuum.
........................................
View the complete article at:
http://www.thedailybell.com/news-ana...-Stock-Market/