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Central Banks Now Own Stocks And Bonds Worth Trillions – And They Could Crash The Markets By Selling Them

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Have you ever wondered why stocks just seem to keep going up no matter what happens?  For years, financial markets have been behaving in ways that seem to defy any rational explanation, but once you understand the role that central banks have been playing everything begins to make sense.  In the aftermath of the great financial crisis of 2008, global central banks began to buy stocks, bonds and other financial assets in very large quantities and they haven’t stopped since.  In fact, as you will see below, global central banks are on pace to buy 3.6 trillion dollars worth of stocks and bonds this year alone.  At this point, the Swiss National Bank owns more publicly-traded shares of Facebook than Mark Zuckerberg does, and the Bank of Japan is now a top-five owner in 81 different large Japanese firms.  These global central banks are shamelessly pumping up global stock markets, but because they now have such vast holdings they could also cause a devastating global stock market crash simply by starting to sell off their portfolios.

Over the years I have often been asked about the “plunge protection team”, but the truth is that global central banks are the real “plunge protection team”.  If stocks start surging higher on any particular day for seemingly no reason, it is probably the work of a central bank.  Because they can inject billions of dollars into the markets whenever they want, that essentially allows them to “play god” and move the markets in any direction that they please.

But of course what they have done is essentially destroy the marketplace.  A “free market” for stocks basically no longer exists because of all this central bank manipulation.  I really like how Bruce Wilds made this point

One indication of just how messed up and flawed the global markets have become is reflected in the way central banks across the world are now buying stocks. This has become a part of their response to correcting the forces of past excesses. Their incursion into this bastion of the free markets signals we have entered the era where true price discovery no longer exists. The central banks are often viewed as price-insensitive buyers, so this incestuous influx of money is in some ways the ultimate distortion.

According to Business Insider, global central banks are on pace to purchase an astounding 3.6 trillion dollars in stocks and bonds in 2017.

Overall, the five largest global central banks now collectively have 14.6 trillion dollars in assets on their balance sheets.

You can call this a lot of things, but it certainly isn’t free market capitalism.

The Swiss National Bank is one of the biggest offenders.  During just the first three months of this year, it bought 17 billion dollars worth of U.S. stocks, and that brought the overall total that the Swiss National Bank is currently holding to more than $80 billion.

Have you ever wondered why shares of Apple just seem to keep going up and up and up?

Well, the Swiss National Bank bought almost 4 million shares of Apple during the months of January, February and March.

And as I mentioned above, the Swiss National Bank now owns more publicly-traded shares in Facebook than Mark Zuckerberg”

Switzerland’s central bank now owns more publicly-traded shares in Facebook than Mark Zuckerberg, part of a mushrooming stock portfolio that is likely to grow yet further.

The tech giant’s founder and CEO has other ways to control his company: Zuckerberg holds most of his stake in a different class of stock. Nevertheless this example illustrates how the Swiss National Bank has become a multi-billion-dollar equity investor due to its campaign to hold down the Swiss franc.

It is now the world’s eighth-biggest public investor, data from the Official Monetary and Financial Institutions Forum show.

But as shameless as the Swiss National Bank has been, the Bank of Japan is even worse.

Today, the Nikkei is essentially a giant sham.  The Bank of Japan regularly goes in and just starts buying up everything in sight, and according to Bloomberg they are on pace to become the largest shareholder in dozens of the most prominent Japanese corporations by the end of 2017…

Already a top-five owner of 81 companies in Japan’s Nikkei 225 Stock Average, the BOJ is on course to become the No. 1 shareholder in 55 of those firms by the end of next year, according to estimates compiled by Bloomberg from the central bank’s exchange-traded fund holdings.

If global central banks have the power to pump up these markets, they also have the power to crash them.

Why would they want to do such a thing?

I can answer that question with just two words…

Donald Trump.

If the Comey angle doesn’t work, the elite could try to destroy Trump by engineering an absolutely devastating stock market crash.  Close to half the U.S. population dislikes Trump anyway, and so it would be fairly easy to get them to believe that Trump’s policies have caused a new financial crisis.  Of course that would be complete nonsense, but in our society today the truth often doesn’t really matter.

And without a doubt, evidence continues to mount that the real economy is starting to slow down substantially.  For example, we just learned that bankruptcies surged once again in May.  The following comes from Wolf Richter

So here we go again. Total US business bankruptcies in May rose 4.7% year-over-year to 3,572 filings, according to the American Bankruptcy Institute. That’s up 40% from May 2015 and up 10% from May 2014.

And there’s another concern: Bankruptcy filings are highly seasonal. They peak in tax season – March or April – and then fall off. The decline in April after the peak in March was within that seasonal pattern. Over the past years, filings dropped in May. But not this year.

Without unprecedented intervention by global central banks, financial markets would have crashed long ago.

And if they keep increasing their purchases of stocks and bonds, the central banks may be able to prop things up for a while longer.

Who knows?  Perhaps with enough financial engineering they would be able to keep this bubble going for years.  Of course things would start to get really awkward once they eventually owned virtually everything, but I have a feeling that things will never get that far.

I have a feeling that global central banks will eventually find an excuse to start “unwinding their balance sheets”, and I have a feeling that it will be at a time that is highly inconvenient for President Trump.

 
  • Guest

    “Perhaps with enough financial engineering they would be able to keep this bubble going for years.”

    Sure. Why not? They’ve kept it going this long. And while keeping global equity markets propped up, they’ve suppressed the prices of gold and silver on the Commodities Exchange (Comex) by creating contracts for metal that doesn’t exist. Those who bought precious metals in an effort to protect the value of their wealth have been defrauded. But I’m hopeful that we’ll eventually be vindicated. Waiting has been the hardest part.

    • socalbeachdude

      Absolutely false as to commodities prices on COMEX. By the way, COMEX only handles about 10% of all annual gold transactions and most of that is handled through the LBMA and spot markets based in London. Metals as a whole were driven by MANIC SPECULATION IN DEFIANCE OF THE FUNDAMENTALS TO ABSURD SPECULATIVE HIGHS and then began collapsing from their own gravity nearly 6 years ago with gold down around 35% and silver down around 70% and it was extremely obvious back in 2011 that exactly that would happen and of course it has and will continue to happen as prices REVERT TOWARDS AND TO THEIR MEANS.

      • sad

        start your own blog, since you’re much smarter than everyone else on this one.

        • Stuey

          Exactly!! He has ruined the comments section on this blog.

          • Had Enough

            Just get everyone to block him and they go away.

          • SoCalBeachDude

            You apparently want to live in total delusion and not be exposed to the ACTUAL FACTS, it would appear. Why exactly is that?

          • SoCalBeachDude

            By adding actual facts and enlightening analysis? Really? Seriously?

      • MaxRockatansky33

        Polly wants a cracker?

      • WILLIAM GOODWIN

        Having read your posts, you should change your name to PompousBeachDude. Just a thought.

  • TOUJOURS DEMAIN

    I agreed with what you said above M1ke…….”Who knows? Perhaps with enough financial engineering they would be able to keep this bubble going for years.”

    I think I will have a bowl of delicious home made chili.

    • Guest

      Did you used to comment over at TF Metals Report?

  • IronBelly

    Here is a quote by Fed chairperson Janet Yellen:

    “There is always some chance of recession in any year. But the evidence suggests that expansions don’t die of old age.”

    • socalbeachdude

      That is a correct statement by Janet Yellen.

      • olde reb

        Sure it is. Expansions result in hyper inflation; i.e., increased deficit spending. Goldman Sach’s budget for 2018–whoops, Trump’s budget– is a clear projection of increased deficit spending and hyper inflation.

        A recession would result if there would be no deficit spending; i.e., a virtual lack of new cash in circulation as in the 1930’s. That ain’t gonna happen and Janet confirmed it.

        • SoCalBeachDude

          No, “expansions” do not result in “hyper inflation” at all. The US federal government has racked up around $10 trillion in federal debt increasing the federal debt by NEARLY DOUBLE over the past 8 years since 2008 to now over $20 trillion, but there has been ALMOST NO INFLATION WHATSOEVER as a result.

          Yes, a recession would indeed result if federal spending were to be cut by the amount of deficit spending which last year was around $1.4 trillion a year, but SO WHAT? The federal debt cannot continue to be endlessly increased without huge repercussions and much of the “expansion” and “growth” of the USA is ARTIFICIAL and has been driven by the massive amount of debt across all levels of the US economy which now exceeds $67 trillion with only about $20 trillion of that being the federal government debt.

          Janet Yellen is merely Chairman of the 7 member Board of Governors of the Federal Reserve and is in no position to confirm anything such as you erroneously assert above. The Federal Reserve has nothing at all to do with the federal government budget and very little to do with the economy of the USA and with GDP.

  • Bill

    You’ve convinced me that my plan for a simple life in a simple home without stuff is the right thing to do. A canverted shipping container will be just right.

  • mony printing gone wild

    not just stocks,but virtually everything,oil,all commodities,mortgages,bonds name it,even autos (lol),next up 1 trillion in repo’d cars,2 trillion in defaulted student loans,they’ll even print away the trillion in CC dept

    • socalbeachdude

      Huh?

  • JC Teecher

    The Word “Gate, has a particular meaning towards upcoming events in a spiritual and supernatural way.
    In the original sense, it means an opening, as in a doorway.
    However; in a logical biblical sense it is a reference to….
    “gate (of palace, royal castle, temple, court of tabernacle) heaven”, and figuratively means to open up to any state (the particular condition that someone or something is in at a specific time).
    In the original Hebrew texts based on God’s special times and dates, this word “gate” has special significance for an upcoming event, or events, that may just cause some events to escalate into the first of many dominos to fall, in regards to the coming economic/financial collapse. I did say “may”, as in a possibility.
    There are two very special dates forthcoming, that “may” cause real concern for people that are not fully prepared for this, almost certain event, of judgment, for a wicked and more importantly, a non-repentant world. With the blood of nearly 70 million innocent lives on its hands, America is far from the Christian Nation it was at it’s inception.
    On September 19th, 2017 the Jubilee Year period of 5777 comes to a close. There are many things related to this day. The end of the period of prophetic fulfillment for restoration and judgment; that will consummate the end of this Age, is the main thing to consider.
    The next day on the 20th, at sunset, begins Rosh Hashanah and 10 days later the end of the period closes with Yom Kippur on Sept. 30th at sunset. Many celestial alignments happen during this time period and some have not happened since the time of Adam and Eve.
    The Gate? The root meaning of Rosh Hashanah means the opening, or beginning. The root meaning of Yom Kippur is the closing. If we see the “gate” as a divine court, or Tribunal, as Jewish writings, portray this 10 day period, as is also called the “Days of Awe”; then we must also consider this:
    The Jubilee Year was a time of restoring of facts and records on every adult/accountable person alive on the Earth. On Sept. 20th at sunset, the Courts of Heaven; are opened, and the facts are lain out as documented, in the Divine Books of Life, before the Judge of Heaven and Earth. After ten days, the court is closed at sunset on the 30th. What happens next is either imaginable or unimaginable, but I believe much judgment will follow. Some; may have even begun before then. Will there be any significance in relation to what the author of this article has presented? Very possible, and the wise should plan accordingly.

    • socalbeachdude

      And just what does that have to do with stock markets?

      • Paul Patriot

        Much more than you understand, Daniel son….

        • socalbeachdude

          Huh?

      • JC Teecher

        If you are deep in the markets obi wan, and judgment comes from above in the form of an economic/financial collapse/crash, then the markets will implode like the twin towers did.

        Get a grip on your life and stop trying to prove you know exactly what is going on, because it is evident to most of us here, that you are a copy and post commentator, looking for praise and applause, of which you do not deserve. At least a dozen people here would like to see you banned.
        I don’t care, but i do think it is ridiculous to continue to allow your never ending posting of links, of which most have nothing to do with the articles.

        My biblical articles have everything to do with living and dying, and is more important to most people than some of your smorgasbord of rant postings, which run people off the site, instead of embracing them with truths.

        • JC Teecher

          Just to follow up, Bill posed the question of banning you Social bdud, so I went back and checked the names and numbers that was up votes for banning you.
          Here is the current list:
          endofdays
          Thunderscepter
          Craig Martin
          JC Teecher
          Poco Pete
          Castiel
          aperion
          jakartaman
          Cinderella Man
          Bill
          pulltheweeds
          Stuey
          Paul Anders

          The list keeps growing, and people can keep adding names here with upvotes so we can petition the site owner, if that is what you want.
          I never asked for banning you, just putting a stop to your incessant posting of links.
          But, obviously many feel you should be completely banned. If I were the site owner, you would get one warning with the copy and post links crap, and if it continued…….you’re outa here DUDE!
          I can guarantee one thing, if all my endeavors to start my own website comes to fruition this Fall, the members on that site will not have to sift through endless copy and paste links and the continual bs you or anyone else spews.
          There will be free speech to the point of some salty language allowed, and opinions, even if they are in direct conflict of the articles and comments of Christians, but there will NOT, be “continual disruptions” from people like you, Carl and snotbox.
          Carl might clean up his god-hating act, and then be allowed a trial period.
          I will be fair and balanced, but hating of Christians and people looking to become Christians, will not be allowed.
          There are plenty of Satan worshiping sites for that bs. Go there.

          • Concerned Capitalist

            Although I disagree with much of what commentators on this website discuss or assert, I can agree that systematically regurgitating article–that the poster did not write–is disrespectful not only to this website, but also to the decent people who wrote the articles.
            Even if I do agree with some of So Cal Beach’s discourse, he should try to respect the sovereignty of intellectual property and formulate his own arguments.

          • socalbeachdude

            I would suggest that you learn about FAIR USE of news information, and many of the comments I post are totally original along with other highly credible well-sourced news.

          • socalbeachdude

            None of those folks on your “list” including you hardly ever offer any substantive news or information at all here, but thanks for documenting that list of the CLUELESS!

          • socalbeachdude

            Please stop your religious proselytizing.

        • socalbeachdude

          I have no exposure to equities at all.

          • mtntrek3

            Really SBD, a site of your own is what you want.

    • Ricardo

      Also 31st October 2017 is the 500th Anniversary of the Reformation.

    • Gay Veteran

      “…On September 19th, 2017 the Jubilee Year period of 5777 comes to a close….”

      groan, is this more Shemittah BS

  • JC Teecher

    As I try to always look at things from a biblical perspective, I am adding this to the article for consideration. Not by any means, to take anything away, but just to add for further enhancement and possibly urgency.

    • socalbeachdude

      Why don’t you trying looking for a logical perspective?

      • JC Teecher

        Why don’t you kiss it right in the really black spot.
        Not mine but Carl and snotty’s.

        • socalbeachdude

          So you are incapable of logical thought?

        • SnodtBlossom

          I have pink spots 😉

      • SnodtBlossom

        JCT likes his biblical fairtytales & fantasies of faithful wives and popularity

        • socalbeachdude

          Yes, that is quite apparent from his posts!

  • aldownunder

    it’s a bit suss old mate socal hasn’t shown up yet maybe just maybe he’s feeling a bit guilty about up voting the disgusting comment by snotblossom yesterday a new low for you both

    • JC Teecher

      He probably ran out of meth or crack and is re-supplying for next round.

      • socalbeachdude

        Oh, get a clue dude and stop making such totally false and utterly bogus assertions.

        • JC Teecher

          assertion: “a confident and forceful statement of fact or belief.”

          My statement started out…”He probably…”
          Now according to Webster’s, “probably” is not an assertion. So once again you are wrong.

          • aldownunder

            I see that disgusting comment about your dear wife has now been deleted from yesterday it sat there way too long and was totally out of bounds
            Anyone who posts crap like that or even up votes such garbage should be BANNED from this site no questions asked

    • Troy

      You’re talking about a guy who a couple of months ago made a comment to someone that poor people can eat dandelions, squirrels and snails.

      • socalbeachdude

        Yes, they most certain can and should, but unfortunately in the US around 45 million of the so-called poor are now getting food stamps (SNAP) although some states such as Alabama are cutting that back now very significantly.

        • Stuey

          Easy for you to say while you live off your trust fund.

          • SoCalBeachDude

            It’s funds as in plural, but what on earth does that have to do with all of those deadbeats getting food stamps (SNAP)?

    • socalbeachdude

      Huh?

      • aldownunder

        If you lie with dogs you’ll wake up with fleas

        • socalbeachdude

          You apparently have fleas then!

          • aldownunder

            You owe JCT an apology for up voting the vile comment about his wife the other day posted by that dog snotblossom

          • socalbeachdude

            Huh? What comment?

          • SnodtBlossom

            I always make that comment

          • aldownunder

            Well it’s way out of line and you should be banned for continually making it then

    • SnodtBlossom

      what disgusting comment?

  • marlene

    Trump’s name shouldn’t even be in this article. He had nothing at all to do with this. And this would not happen if he had been President over the LAST 8 years!

    • marlene

      And who has trillions to buy these stocks & bonds? Or is that another pre-planned economic manipulation?

  • hopeful

    Excellent reading, thanks for the info. Very interesting. Also,
    it’s nice that no southern beach dude’s have commented yet. I hope there
    won’t be a list of irrelevant links soon. One can only hope. I’ve been
    investing my time in a vegetable garden. It’s starting to look nice. I
    hope more people will do the same.

    • socalbeachdude

      Get a clue due, and start learning about things rather than whining when important news is posted.

      • hopeful

        due? dum fck

      • FriendOfManAndAnimal

        Do you really need to be so mean to people?

        • socalbeachdude

          I take it that you CHERISH IGNORANCE.

          • TexOhara

            I don’t cherish ignorance but I don’t see what that has to do with being mean?

  • socalbeachdude

    The only 2 central banks that I am aware of that own any equities (stocks) are the BOJ (Bank Of Japan) and SNB (Swiss National Bank). The Federal Reserve is prohibited from owning any stocks at all. Both the SNB and BOJ disclose their total holdings of stocks in their annual balance sheet statements. The biggest buyers and sellers of stocks on any given day are ETFs which now account for about one-third of market transactions, and the other major players are pension funds, hedge funds, and corporations themselves which are the main reason why stock indices have been driven up to the levels they have been as a result of stock buybacks.

  • socalbeachdude

    Many stocks are now ALREADY COLLAPSING and have been doing so over the past year in increasing numbers and severity. The market indices are now being held up by only a TINY HANDFUL OF ABSURDLY OVERVALUED STOCKS and when they run out of a SUPPLY OF GREATER FOOLS, then the whole “markets” perceptions and prices come crashing down.

    According to Goldman, a mere 10 stocks — 10 stocks — account for almost half the S&P’s gains for the year.

    Forty-six percent, to be precise.

    This year’s bull’s-eye stocks are the so-called FAANGs — Facebook, Amazon, Apple, Netflix and Google.

    Rounding out the top 10 are Visa… Philip Morris… Oracle… Home Depot… and Broadcom.

    Most other stocks are zeroes — or worse.

    David Stockman in yesterday’s reckoning:

    “During the last 70 days, the FAANGs have gained $260 billion in value, while the other 495 companies in the S&P 500 have lost an identical amount… Other than the five FAANG stocks, the market has been silently collapsing since March 1.”

    Meanwhile, recent data from Fundstrat Global Advisors reveal that just 40 stocks out of 500 — 8%, that is — account for some 85% of the S&P’s gains this year.

    https://dailyreckoning.com/new-financial-weapons-mass-destruction/

  • socalbeachdude

    The most laughably bogus bubble out there right now is so-called “crytocurrencies” with the poster child for such manic speculative idiocy being intrinsically worthless BitCon which is headed for a massive collapse.

    Bitcoin surges 8% to record near $3,000

    http://www.cnbc.com/2017/06/06/bitcoin-surges-to-new-record-rising-above-2900.html

    Crypto currency… cloakcoin up 300% in two days

    https://srsroccoreport.com/crypto-currency-cloakcoin-up-300-in-two-days/?cn=bWVudGlvbg%3D%3D

    Bitcoin – a speculative asset with “no intrinsic value”

    https://www.cryptocoinsnews.com/bitcoin-speculative-asset-no-intrinsic-value-says-business-insider-founder/

    • sad

      not this sht again, you really should start your own blog.

      • socalbeachdude

        You should start looking at the actual facts going on in the financial markets and this is a major fact of the GROWING BUBBLES ABOUT TO BURST.

        • Concerned Capitalism

          A correction could arise, but a collapse requires an external stimulus, calamity, or systemic flaw in algorithms.

          Also, did you not claim gold would succumb to a mean reversion trend? If there were to be an economic collapse, physical gold, ETFs, and miner stocks would skyrocket.

          Mean reversion tends to occur for reasons that are not all solely mathematical. Mathematics can be used to model markets, but I have found it fairly difficult to model investor psychology with it.

          Mean reversion is simple. Generally people sell or short because sentiment and technical indicators suggest overvaluation.

          If you think the equity, bond, option, futures, currencies and IR derivatives markets are going to tank, why would gold go down during such tumultuous periods?

          Also, any person with basic logical and maybe programming could understand both the workings and the appeal of cryptocurrency products.

          • socalbeachdude

            All commodities including gold and silver and platinum and rhodium will PLUMMET RIGHT ALONG WITH EVERYTHING ELSE in an economic downturn as the GLOBAL DEFLATIONARY SPIRAL INTENSIFIES.

            MARK CUBAN: Bitcoin is a ‘bubble’

            http://www.businessinsider.com/bitcoin-price-is-a-bubble-mark-cuban-says-2017-6

            Gold is TOTALLY IRRELEVANT from a financial perspective and just a little niche fungible commodity of no important or use whatsoever other than for making jewelry.

            As to global assets they are far in excess in terms of value relative to the money supply of US dollars which is less than $14 trillion in the regulated US banking system and the value of those assets – including metals such as gold and silver – will be plunging accordingly over this year and coming years.

            Gold has already plummeted 35% in value from its manic speculative high on September 05, 2011 and silver has plunged around 70% from its manic speculative high on the same date and both are headed towards and to their means of $456 and $8 per ounce respectively.

          • olde reb

            Hyper inflation would result in run-away price escalation. Only a massive reduction of currency in circulation would result in reduction of commodities (including PM). no trend of currency restriction –a global deflationary spiral– (as in 1920-30’s) appears on the horizon. Why would commodities drop in value ?

            [currency was removed by the Fed/Wall Street by decree of the BOG to remove all gold backed U.S. Notes so that F.R. Notes could be substituted in the 1930’s. Those conditions cannot occur again.]

            However, the debt-based monetary Ponzi scheme system that requires new fiat money be added to the system to pay the interest on the debt that perpetually becomes larger. If the debt issues cannot be auctioned (as by the Federal Reserve), the entire scheme fails as any other Ponzi scheme.

            [A debt that cannot be culminated is a contract based upon fraud and is void from its inception.]

          • SoCalBeachDude

            We are in a GLOBAL DEFLATIONARY SPIRAL which is precisely why nearly all COMMODITIES HAVE BEEN PLUNGING IN PRICE FOR THE PAST 6 YEARS.

            Oil is now about one-third of what it was in price after plunging nearly 66% from its manic speculative high. Gold has plunged 35% and silver has plunged 70% from their manic speculative highs reached on September 5, 2011. All of the world’s 27 major commodities will SIMPLY CONTINUE TO PLUMMET in the years ahead.

            The US M2 money supply over the past 10 years has increased from around $8 trillion to nearly $14 trillion, while the Chinese money supply of their renminbi (RMB / yuan) is the most EGREGIOUSLY OVERPRINTED CURRENCY IN THE WORLD and has increased by more than $30 trillion to now around $34 trillion from a level of less than $3 trillion. Monetary increases have little to nothing to do with any inflation relative to goods and services, contrary to your assertions.

            Nor does the decrease in money supplies necessary lead to deflation at all. The Federal Reserve did not remove any money at all from the US money supply when the US GOVERNMENT declared gold bullion (not jewelry, numismatic coins, or industrial uses of gold) illegal in 1933 and withdrew it from circulation.

            The Federal Reserve only owns about $2.5 trillion in US Treasuries and only purchases about 8% of the around $7 trillion in US Treasuries newly issued by the US government each year and has not increased its holdings in the past 3 years of US Treasuries. And now, the Federal Reserve is working to reduce its $4.4 trillion balance sheet holdings including the $2.5 trillion in US Treasuries by nearly 50% over the coming years.

            The Federal Reserve does not “auction off” US Treasuries at all, but rather the US TREASURY AUCTIONS US TREASURIES through its PRIMARY DEALERS with all of the proceeds going to the US federal government and none whatsoever going to the Federal Reserve.

            I would suggest you learn about the US Treasuries markets and how they work at:

            http://www.TreasuryDirect.gov

      • JC Teecher

        I wonder how much he gets paid to say those words with a shout…..

        “Growing Bubbles about to Burst”.

        He gets away with a whole lot of utter nonsense, and double talking, on this site because he utters the phrase the owner likes to here…
        “The time is at hand and the shtf, with an economic collapse from the banking sector.”
        In a couple days ole sbeachdud will be preaching the tune that everything is OK and no collapse will ever happen.
        He has some real mental blocks and forked tongue issues.

        • socalbeachdude

          Zero. All of my comments are PRO BONO and 100% true, accurate, and correct.

        • mtntrek3

          Exactly.

      • No need..he runs this one. and knows all about all… even that the US owns sooo much gold but can’t send back a few 100 tons of Ger’s gold..

  • socalbeachdude

    The shareholders and bondholders of one of the largest banks in Spain, Banco Popular, were TOTALLY WIPED OUT YESTERDAY when the bank was declared FAILED and purchased by Santander, Spain’s largest bank for €1 (1 Euro) and merged with Santander including its around $40 trillion in failed non-performing loan assets.

  • socalbeachdude

    Italy faces borrowing shock when ECB removes support, warns Pimco

    ITALY faces a “horror” scenario when the European Central Bank winds down its bond buying programme in a move that risks sparking a surge in the country’s borrowing costs, according to one of the world’s largest bond managers.

    The Pacific Investment Management Company (Pimco) said the ECB’s €60bn (£53bn)-a-month quantitative easing (QE) programme was “very supportive” for countries such as Italy and Portugal and had helped to limit volatility in these countries.

    Andrew Balls, chief investment officer for global fixed income, said removing that support was likely to push up bond yields in a country that has struggled to implement reforms and reduce its massive debt pile amid weak growth.

    http://www.telegraph.co.uk/business/2017/06/04/italy-faces-borrowing-shock-ecb-removes-support-warns-pimco/

  • socalbeachdude

    Not that it matters,but we are only a few days away from the next increase in interest rates on the only 3 interest rates set by the Federal Reserve and the Federal Reserve is in the midst of general tightening and will be significantly cutting the size of its balance sheet.

    Fed forecasts rate hike ‘soon,’ details plan to trim balance sheet

    Most members of the Federal Reserve believe they should raise interest rates “soon” as long as the economy continues to rebound from a surprising bout of weakness in the first quarter, minutes from the Federal Reserve’s May 2-3 meeting showed.

    The minutes, which were released Wednesday afternoon, showed some central bankers were still watching for evidence that a recent slowdown in growth is temporary and that inflation is heating up before committing to another interest rate hike. But if economic data comes in as expected, the Fed could raise rates when it meets on June 13-14, a move markets have generally been anticipating.

    The minutes also contained details of how the Fed might reduce the massive $4.5 trillion balance sheet it accumulated by purchasing Treasury and mortgage-backed securities during the recession. Central bankers expressed preference for a plan that would let the assets gradually mature but every three months decrease the amount the Fed reinvests in these purchases, leading to a predictable and orderly reduction.

    https://www.washingtonpost.com/news/wonk/wp/2017/05/24/fed-minutes-sound-note-of-caution-about-june-rate-hike/?utm_term=.115c2777225f

  • socalbeachdude

    BOJ’s balance sheet almost as big as Japanese economy

    http://asia.nikkei.com/Politics-Economy/Economy/BOJ-s-balance-sheet-almost-as-big-as-Japanese-economy

    By contrast, the total size of the Federal Reserve balance sheet – which will now start shrinking dramatically and which includes no stocks whatsoever – is less than 25% of the size of the US economy.

  • socalbeachdude

    Beijing wins yuan battle…will it lose the global currency war?

    China’s Overnight Interbank Borrowing Rate Hits 42.8%…

    China’s surging yuan defeats short-sellers by hitting a 6-month high versus the US dollar as the dust settles after Moody’s credit downgrade.

    The corks should be popping on bottles of champagne at the People’s Bank of China, if Beijing’s policy goal was to defeat investors who dared to bet on a cheaper yuan after Moody’s recent downgrade of China’s sovereign credit rating.

    If any speculative forces were attempting to short the yuan, the currency did indeed put them in their place by surging to a six-month high against the US dollar in the Hong Kong offshore market, aided by a behind-the-scenes push from China’s central bank. The Hong Kong offshore market is said to be more sensitive to market forces than its onshore counterpart.

    As a result, the overnight yuan interbank borrowing rate has shot up to 42.8 per cent, an unhealthy sign for the yuan market. Beijing’s meddling in the yuan exchange rate also sends a signal that China is moving away from a promised “clean” floating exchange rate system.

    “It is important to remember that China’s exchange rate is still fully in the hands of PBOC,” said Louis Kuijs, head of Asia economics research with Oxford Economics and a former economist with the World Bank. “At any point in time, the PBOC decides to what extent it wants to take market pressures into account as it sets the fixing rate and steers the spot rate. In that sense, China’s exchange rate is a solidly dirty float.”

    http://www.scmp.com/news/china/economy/article/2096587/beijing-wins-yuan-battle-will-it-lose-global-currency-war

  • socalbeachdude

    The Chinese economic “death spiral”

    China is now trapped in a debt death spiral. It cannot afford for growth to slow because that would cause unemployment, bankruptcies, and social unrest. But, it cannot continue growing without massive borrowing and spending programs.

    This debt problem points to the third element in China’s growth formula, which is deflation. Persistent deflation and disinflation is caused globally by a combination of demographics, debt, deleveraging, and technology.

    China is ground zero for global deflation because of its cost structure and its cheap currency that exports deflation to trading partners.

    On the earlier visit to Nanjing, I met with provincial Communist Party officials who took me on a tour of a massive multi-city construction project with office parks, skyscrapers, apartment buildings, hotels, recreational facilities and transportation links for each of the cities. It was all empty.

    When we returned for tea in the provincial officials’ offices, I asked how they expected to repay the debt used to fund the construction. The head official answered matter-of-factly, “Oh, we can’t repay it. Beijing will have to bail us out.”

    Similarly, a Bloomberg reporter recently interviewed a Chinese bank customer who had just purchased a Wealth Management Products (WMP) from her bank. The reporter asked the customer if she was worried about the credit quality of the loans backing-up her WMP. She replied, “No, not at all. If anything goes wrong, Beijing will bail us out.”

    This blind faith in Beijing’s ability to bail out every bad debt in the world’s second largest economy raises the question of Beijing’s willingness and ability to do so.

    Higher interest rates will ultimately bankrupt Chinese companies and lead to higher unemployment and slower growth. Look for the Chinese banking system to weaken.

    In less than six months, the yuan could finally undergo a maxi-devaluation.

    https://dailyreckoning.com/chinese-economic-death-spiral/

  • socalbeachdude
  • socalbeachdude

    CHINA: The Greatest Financial Bubble in History

    China is in the greatest financial bubble in history. Yet, calling China a bubble does not do justice to the situation. This story has been touched on periodically over the last year.

    China has multiple bubbles, and they’re all getting ready to burst. If you make the right moves now, you could be well positioned even as Chinese credit and currency crash and burn.

    The first and most obvious bubble is credit. The combined Chinese government and corporate debt-to-equity ratio is over 300-to-1 after hidden liabilities, such as provincial guarantees and shadow banking system liabilities, are taken into account.

    n short, Chinese growth is in severe jeopardy. Its manufacturing base is being taken over by competitors and its high-tech future has yet to emerge, and may never emerge in time to avert a debt crisis.

    The Chinese Miracle is no miracle at all, it’s just simple development economics. China is now out of time and out of good options.

    https://dailyreckoning.com/greatest-financial-bubble-history/

  • socalbeachdude

    China’s Lehman Moment Is Coming!

    China has more than quadrupled its debt load since 2007.

    Just between 2007-2014, its debt exploded from $7 trillion to $28 trillion (simply incomprehensible numbers).

    China’s addiction for growth (in building mega-cities, bridges, roads, etc…) helped push demand for commodities higher (like iron ore, steel, and oil).

    But the initial day of reckoning came late 2014. The world was unable to absorb the unrelenting Chinese production.

    They know that their economy is more sizzle than steak. They know that the books are cooked and the actual economic production is a lot smaller than is reported. They also know that a huge portion of the economy is in debt up to their eyeballs and any drop in prices (iron, copper, real estate, whatever) will lead to pain.

    So they began lending like crazy. The money supply (M1) raced from a mild 10% annual growth rate to 25% year-over-year.

    Chinese hot money and gambling bid up prices. Now that the hot money is being curtailed, prices are dropping again.

    Worse, now the Chinese factories have to dump all of their excess production.

    Deflation will be coming shortly.

    http://www.financialsense.com/andrew-zatlin/china-lehman-moment-is-coming

  • socalbeachdude

    China’s reforms not enough to arrest mounting debt

    China’s structural reforms will slow the pace of its debt build-up but will not be enough to arrest it, and another credit rating cut for the country is possible down the road unless it gets its ballooning credit in check, officials at Moody’s said.

    The comments came two days after Moody’s downgraded China’s sovereign ratings by one notch to A1, saying it expects the financial strength of the world’s second-largest economy to erode in coming years as growth slows and debt continues to mount.

    Government-led stimulus has been a major driver of China’s economic growth over recent years, but has also been accompanied by runaway credit growth that has created a mountain of debt – now at nearly 300 percent of gross domestic product (GDP).

    Some analysts are more worried about the speed at which the debt has accumulated than its absolute level, noting much of the debt and the banking system is controlled by the central government.

    UBS estimates that government debt, including explicit and quasi-government debt, rose to 68 percent of GDP in 2016 from 62 percent in 2015, while corporate debt climbed to 164 percent of GDP in 2016 from 153 percent the previous year.

    A growing number of economists believe that a massive bank bailout may be inevitable in China as bad loans mount. Last September, the Bank for International Settlements (BIS) warned that excessive credit growth in China signaled an increasing risk of a banking crisis within three years.

    http://www.reuters.com/article/us-china-economy-rating-idUSKBN18M06Z

  • socalbeachdude

    China’s Bill Will Have to Be Paid

    A Moody’s downgrade makes clear there’s no easy way out of its debt problems.

    https://www.bloomberg.com/view/articles/2017-05-25/for-china-now-the-only-question-is-the-size-of-the-bill

    • billtheguy

      Do you really think China gives a crap about Moody’s? Here’s our product. Buy it or not. That’s like saying North Korea cares about economic sanctions.

      • socalbeachdude

        China has GROSSLY ABUSED THE PROCESS OF MONEY CREATION over the past 10 years and has increased its money supply by more than $30 trillion from less than $3 trillion to more than $34 trillion with the value of its currency, the renminbi (RMB / yuan) NEARLY ENTIRELY PEGGED TO THE VALUE OF THE US DOLLAR with very minimal float which is CHEATING TO THE MAX in the global currency markets.

        Now, that game is all coming CRASHING DOWN FOR THE EGREGIOUS MONEY PRINTERS INSIDE CHINA who have turned their currency into worthless monopoly money and created a sea of debt as far as the eye can see.

        China has a huge debt problem. How bad is it?

        Credit rating agency Moody’s downgraded China this week, warning that the country’s financial health is suffering from rising debt and slowing economic growth. It’s the first time the agency has cut China’s rating in nearly three decades.

        Fears about debt levels in the world’s second-largest economy have been flagged before. The International Monetary Fund pushed Beijing to “urgently address” the issue last year.

        http://money.cnn.com/2017/05/25/news/economy/china-debt-economy/

        China debt ‘could prompt $7.7 trillion asset sale’

        http://asia.nikkei.com/Politics-Economy/Economy/China-debt-could-prompt-7.7-trillion-asset-sale

  • socalbeachdude

    China’s downgrade could lead to a mountain of debt

    The downgrade of China’s debt by Moody’s Investors Service may push Chinese companies to borrow even more money from domestic banks as overseas debt becomes more expensive, increasing risks for the nation’s finance industry.

    With growing indebtedness at home, compounded by a slowing economy, there’s a risk of a “negative feedback loop,” said Khoon Goh, head of Asia research for Australia & New Zealand Banking Group who sees state-owned enterprises and property developers feeling the biggest impact. The downgrade will particularly hurt airlines and shipping companies, said Corrine Png, chief executive officer of Crucial Perspective in Singapore.

    Mainland firms “will need to go back to the Chinese banks in order to get loans,” ANZ’s Goh said. “That means that Chinese banks will grow more exposed to the corporate sector.”

    Since the start of the global financial crisis, Chinese companies have borrowed to keep the economy growing, pushing corporate debt to 156 percent of gross domestic product, from 100 percent in 2008, according to Bloomberg Intelligence. Most of that debt is held by state-owned enterprises, putting the government on the hook in case of defaults.

    Citing a worsening debt outlook, Moody’s lowered China’s rating to A1 from Aa3 on Wednesday, the same level as Japan and the Czech Republic. “The economy is dependent on policy stimulus and with that comes higher leverage,” Marie Diron, associate managing director, Moody’s Sovereign Risk Group, said on Bloomberg Television after the announcement. “Corporate debt is really the big part.”

    More bad news for China may be on its way from rival agency S&P Global Ratings, which in January maintained a negative outlook for the country and warned of a possible downgrade in the coming months. In response to a request for a comment, S&P referred to its January statement on the negative outlook.

    https://www.bloomberg.com/news/articles/2017-05-24/china-downgrade-may-build-debt-mountain-as-firms-borrow-at-home?cmpid=socialflow-twitter-business&utm_content=business&utm_campaign=socialflow-organic&utm_source=twitter&utm_medium=social

  • socalbeachdude

    Chanos Says More Stresses Apparent at ‘Loaned Up’ Chinese Banks as Loan to Deposit Ratios Soar to Over 80%

    Stresses in China’s banking system are becoming more apparent amid the mounting pile of credit extended by the nation’s lenders, according to Jim Chanos, the hedge fund manager who predicted the 2001 collapse of Enron Corp.

    Loans in China’s banking system had risen to the mid-80 percent range of deposits, compared with the government’s previously mandated ceiling of 75 percent, Chanos told reporters on the sidelines of the SkyBridge Alternatives Conference in Las Vegas on Thursday. That has put stress on banks’ funding, leading them to resort to wealth-management products, said the short seller, who has warned about Chinese debt before.

    “We paid attention to it this year because all of a sudden about a month or two ago, all of the state media organizations began reporting about financial risk,” Chanos said. “So when all of them start saying something, you know there’s a reason for that, that the leadership at the top is either trying to send a message or is concerned.”

    For two decades, China imposed a cap that limited loans to a maximum 75 percent of deposits as part of measures to contain risks. That ceiling was abolished in October 2015, in part because it was seen as a blunt tool that encouraged illicit deposit-hoarding and moving loans off balance sheets.

    The loan-to-deposit ratio for Chinese lenders, an indicator of the banking system’s ability to weather stress, stood at 67.7 percent at the end of March, data from the banking regulator show.

    The adjusted loan-to-deposit ratio, which includes a range of off-balance sheet items, climbed to 80 percent by the end of June last year, according to S&P Global Ratings. For some smaller Chinese lenders, the ratio has already topped 100 percent, S&P estimated.

    “The banking system is loaned up,” Chanos said. “Because of the nature of the problem, and debts are still growing twice to three times as fast as the economy, a lot of loans are just simply new loans to keep the old loans current, so-called Ponzi finance.”

    https://www.bloomberg.com/news/articles/2017-05-19/chanos-says-more-stresses-apparent-at-loaned-up-chinese-banks

  • socalbeachdude

    China Is Using the Yuan to Combat Risk of a Market Meltdown

    China has an insurance policy against a full-scale market meltdown: the daily currency fixing.

    With stocks and bonds in retreat amid anxiety over Beijing’s deleveraging campaign, officials have been guiding the yuan higher against the dollar in a move that’s caught market watchers by surprise. After meeting expectations earlier in the year, the reference rate used by the People’s Bank of China to manage the yuan has come in stronger than the forecasts of four banks who regularly track the measure on 25 of the past 32 trading days.

    “The PBOC is using the stronger fixings to prevent panic sentiment from spreading to the currency market,” said Xia Le, chief economist at Banco Bilbao Vizcaya Argentaria SA in Hong Kong, referring to the reference rate that’s updated each day. “In the short term, no one can fight against the PBOC when it intervenes through the fixings. Investors will likely become more willing to sell the dollar, pushing the yuan higher from current levels.”

    Central bank policy stipulates that the yuan is restricted to moves of no more than 2 percent either side of the reference rate. But officials have never divulged exactly how the daily rate is calculated, with banks having to come up with their own models based on what the fixing has done in the past and bits of intelligence from policy makers. Since mid-2016, the reference rate has been very predictable — until now.

    https://www.bloomberg.com/news/articles/2017-05-18/china-s-using-the-yuan-to-combat-risk-of-a-wider-market-meltdown

    • bc

      China also owns tones of gold.

    • bc

      China also owns tonnes of gold.

      • socalbeachdude

        The government of China owns about 1,677 metric tonnes of gold which is less than 20% of the US Treasury’s gold of around 8,200 metric tonnes, and even at today’s preposterous elevated prices for that stuff, the government of China’s total gold is worth less than $100 billion. Please contrast that to its money supply of renminbi (RMB / yuan) which now EXCEED $34 TRILLION after China increased that from less than $3 trillion by more than $30 trillion just over the past 10 years.

        • US 8200MT gold? How come all those that ask for gold back,Germany etc don’t get it?

          • SoCalBeachDude

            The US Treasury total gold owned of around 8,200 metric tonnes has nothing whatsoever to do with the gold held in a CUSTODIAL CAPACITY on behalf of its owners by the Federal Reserve New York Branch and they have always fully complied very rapidly and ahead of schedule for the transfer back of any gold requested by its owners.

            The US Federal Reserve has NOTHING WHATSOEVER to do with the US government gold which is entirely owned and controlled and stored by the US Treasury which consists of around 8,200 metric tonnes for which the US Treasury issues a monthly report as to the exact amounts of gold each and every month and the latest report is at:

            http://www.fiscal.treasury.gov/fsreports/rpt/goldRpt/current_report.htm

            The Federal Reserve itself own almost no gold at all and has no interest in gold at all but acts as a CUSTODIAN FOR VAULT STORE OF GOLD for other countries including Germany at the New York Federal Reserve Branch.

            Germany had 1500 metric tones of their around 4400 metric tonnes of gold stored at the Federal Reserve New York Branch. They requested the return of 300 metric tonnes of gold from the Federal Reserve and are keeping the other 1200 metric tonnes on storage at the Federal Reserve New York Bank and the transfer of the 300 metric tonnes was completed WAY AHEAD OF SCHEDULE.

            Germany brings back 300 tons of gold it had been keeping in an underground vault in New York since the Cold War

            Germany has completed an effort to bring home 300 metric tons of gold stashed in the United States, part of a plan to repatriate gold bars kept abroad during the Cold War.

            The German central bank said it brought 111 tons of gold back from the Federal Reserve in New York last year, concluding in September – the last of 300 tons slated for return.

            The gold was earned by West Germany from trade surpluses in the 1950s and 1960s, but was never moved out of the United States due to fear of invasion by the Soviet Union.

            In 2013 Germany launched the transfer to Frankfurt of 300 tons of gold from New York and 374 tons from Paris.

            The bank also repatriated 105 tons of gold from Paris last year, but still has another 91 tons to return from the French capital, and said it plans to bring them back in 2017.

            Once the transfers are completed, Frankfurt will hold half of Germany’s 3,378 tons of reserve gold, with the rest in New York and London.

            ‘The transfers were carried out without any disruptions or irregularities,’ said Carl-Ludwig Thiele, board member of the central bank, called Bundesbank.

            Thiele said there would not be any further transfers and Donald Trump’s presidency didn’t change the situation.

            ‘We have a trusting relationship with the Fed,’ he said.

            As of December 31 last year, there were 1,236 tons of German gold in New York – 36.6 percent of the total.

            The bank has not released any details as to how it transported the gold home.

            The original plan was for the transfers to be completed by 2020, but the bank brought forward the transfers.

            http://www.dailymail.co.uk/news/article-4214894/Germany-brings-300-tons-gold-New-York.html

  • Paul Anders

    This has been the plan all along, to own it all…
    There will be no crash…

    • socalbeachdude

      Laughably false, and many stocks in the US and globally have already been crashing for the past 3 years.

      • Paul Anders

        Are you utterly clueless?
        Central Banks will never let their assets go down in value. Hyper inflation after a big dip caused by
        China

        • socalbeachdude

          Hardly, but YOU certainly are! Central banks have NO CONTROL OVER ASSET PRICES IN GLOBAL FINANCIAL MARKETS, and the GLOBAL DEFLATIONARY SPIRAL is what will continue to rapidly increase including in the Peopel’s Republic of China which will be the epicenter of the crash.

  • socalbeachdude

    The $17 billion in US stocks owned by the SNB out of the $30 trillion in market capitalization of US stocks is SO TRIVIAL as to be of no significance whatsoever.

    • California Beach crud

      Laughably false.

      • socalbeachdude

        What I stated is obviously 100% correct. Are you that incapable of dividing $17,000,000,000 by $30,000,000,000,000? What percentage does that represent mathematically?

        • olde reb

          The stock market can be easily spooked. What is a typical day’s value of trade on the market ? With electronic rapid trading, high velocity with even little drop in value will set off limits.

          • SoCalBeachDude

            Are you talking about the US stock markets in which there are about 7,000 individual stocks, or about the global stock markets in which there are many more stocks? All of the global stock markets including the USA these days tend to move in tandem with major HOT MONEY SPECULATORS playing them.

  • mrsweettooth

    I still believe hard assets such as land, gold & silver are the way to go long term..All the stocks, bonds & paper I.O.U’s won’t be worth a hill of beans once it comes down to brass tacks..

    • JC Teecher

      Just to add; land is valuable to an extent. Having enough land to be sustainable for food and water support of the immediate family is great and practical.
      Having too much land that is not suitable for production, in a shtf situation can be a liability.
      WHY? taxes. Property taxes will be the fly in the ointment for most folks when there is no income to support this asset. These local and state municipalities operate on property taxes, and like death of the flesh, taxes and their increase is a sure thing.

      It would be too sad if one could not pay their property taxes, and then the courts began evicting folks off their land. It could happen.

    • aldownunder

      Very true

      • socalbeachdude

        Very false. Laughably so!

        • aldownunder

          See that’s your biggest problem you are so arrogant as to believe that you know everything and anyone who does’t agree with you is wrong

          • socalbeachdude

            Your biggest problem is that you refuse to recognize ACTUAL FACTS AND REALITY.

            From the years 1793 until 1933 the price of gold was mostly very stable at around $20.00 per ounce and then the fixed price of it was increased to $35 per ounce by the US government in 1933. It stayed relatively stable at around $35 per ounce until late 1971 when gold bullion was allowed to be traded in the commodities markets.

            At that stage gold became an EXTREMELY VOLATILE SPECULATIVE COMMODITY with huge price increases and huge price plunges and that is where it remains today and is now 4 years into the biggest price plunge that gold will have ever seen historically when that finishes. The last massive price plunge down cycle for gold lasted 22 years from January 1980 until late 2001 during which time it plummeted 70% in price.

            At any price above $456 per ounce gold is preposterously overvalued and that speculative froth will rapidly be blown off the top.

            THE ISSUE IS THE PROPER PRICE OF GOLD.

            An array of reasonable historical metrics can be used to establish the proper price of gold, including:

            1) Its historical mean which would put gold right around $456 per ounce

            2) Its 16:1 historical ratio against silver which would put gold right around $280.48 per ounce based on silver being around $17.53 per ounce

            3) Its inflation adjusted price today from its last stable historical price of $35 per ounce in 1971 which would put gold right around $400 per ounce.

            4) Its current official US government price of $42.22 per ounce which is how the approximately 8200 metric tonnes of US government gold are valued:

            http://www.fiscal.treasury.gov/fsreports/rpt/goldRpt/current_report.htm

            The Federal Reserve couldn’t give the slightest hoot about gold as it is a trivial little collectible niche commodity that has ZERO FINANCIAL RELEVANCE and has a total value of less than $7 trillion for all of the gold that has ever been mined, and about 70% of which is in the form of jewelry widely dispersed around the world.

          • aldownunder

            you posted this the other day more regurgitated crap from you

          • socalbeachdude

            All originally written and directly to the point of your delusional comment and which totally disproves your assertion!

          • James

            I’ll take gold and silver over a piece of paper that says “this is legal tender.”

          • SoCalBeachDude

            If you own any gold or silver US Mint American Eagles, they are also LEGAL TENDER and you can use them to buy groceries or whatever for their stated face values of $50 for a 1 oz. American Eagle gold coin, and of $1 for a 1 oz. American Eagle silver coin.

    • socalbeachdude

      Those thingies will PLUMMET RIGHT ALONG WITH EVERYTHING ELSE, particularly grossly overpriced fungible little niche commodities such as the metals.

  • South Texas

    The corporatocracy has created a rent seeking economy. You see it in almost any manufactured product of any complexity. The number of regulations for a small business to comply with is stifling.

    • socalbeachdude

      And high lease and rent demands are the primary force in driving retailers out of business throughout the entire US.

  • guest

    The Japanese central bank is buying huge amounts of stock in Japanese corporations. The Swiss central bank is buying huge amounts of stock in huge multinational corporations like Facebook and Apple that are not from any country.

    • socalbeachdude

      Both Apple and Facebook are US DOMICILED COMPANIES even though they operate internationally.

    • All these C Banks are owned by the same bunch of quadrillionaires, Redshield royals etc.Right SCBD?

  • JC Teecher

    According to Investopedia, the global bond market sits at about 100 trillion $. The derivatives market sits at 1.2 quadrillion. What is a quadrillion?
    One with 5 sets of zeros or 1,000,000,000,000,000.

    If half of all stocks in the world, are held and traded as securities/assets, on the books of the five major banks in the world, you can safely bet that those books are cooked and fuzzy math is used, to sell and trade the so-called assets, which is really obscure to me how something with a lot of risk can be called an recorded as an “asset” can be used over and over again to gamble on.
    The oversight on all the global banks has become a joke. Even some bank executives don’t even know how much is out there being floated around and gambled with, to show profits that do not exist.
    Looks like a giant set of ponzi schemes that will someday implode, as regulators have been bought off and legislated out of authority.

    The people left holding the proverbial bag, when it all implodes and the gov says….”they are too big to fail”, so we are allowing the banks to use law…such and such, to bail themselves out, with investors and depositor’s money, are the little people. The ignorant that leave their cash in a bank, the ignorant that leave their stock holdings in a bank, and the ignorant that believe the gov and the banks have their best interest at heart.

    Do like my dear ole ignorant dad does, leaves his money, 90 % of it and 100% of his life’s investments in the stock market, all held by one of the largest and most crooked banks in the world. Leave it in until one day out of the blue,m it all comes crashing down and the banks shut the doors, and keep all that was handed to them to secure.
    Snooze you loose. Stupid is as stupid does. A sucker is born everyday.

    • socalbeachdude

      The notional (face) “values” of derivatives is highly misleading as the total amount of money involved with derivatives is less than 1% of that amount and they are essentially a ZERO SUM GAME of gambling bets.

  • Richard O. Mann

    There are so many “could be”, “may happen”, “what if”, and who knows how many other possible things which could happen right now which would put this world into full blown tail spin. It’s just a matter of keeping an eye on things and wait for the hammer, which ever one, falls.

  • Leif Erickson

    This is why I am going to start short selling some major stocks soon and become richer than my wildest dreams.

    • socalbeachdude

      The markets can remain irrational far longer than you can stay solvent betting against them, and the past 8 years are PROOF QED as to that!

  • LIZ THE SHIZ

    why would central banks crash the market that keeps them somewhat solvent, it would be financial suicide , but then again this is not a logical world

    • socalbeachdude

      Obviously, central banks wouldn’t ever intentionally crash the markets!

  • chris

    If they are purchasing all these things with money which they just conjure into existence solely for that purpose then there is nothing to stop them ‘owning’ everything that can purchased and surely that has to be illegal. It does make perfect sense that the global financial system is completely rigged and manipulated, i’m sure many of us have concluded this over the last few years of this ‘extraordinary’ near endless rise of stocks.

  • socalbeachdude
    • MaxRockatansky33

      Dolly rises thanks to Saudi oil buddies.

      • SoCalBeachDude

        The US dollar has nothing whatsoever to do with the price of Saudi Arabia or OPEC oil prices which are CRASHING and are now down around 66% over the past 3 years when they were around $114 per barrel and are now at around $45 per barrel and headed much lower as the GLOBAL OIL GLUT continues to overwhelm the oil commodities markets.

        • MaxRockatansky33

          So why there is a term called petrodollar coming from?

  • socalbeachdude

    We are in a GLOBAL DEFLATIONARY SPIRAL that is rapidly intensifying with commodities prices PLUNGING and that is what will continue for the foreseeable future.

    Oil dives 5 percent on surprise build in U.S. crude, gasoline stocks

    http://www.reuters.com/article/us-global-oil-idUSKBN18Y03Q

  • socalbeachdude

    “Backing” any money with some thingy is a totally obsolete and very stupid notion. All currencies are backed by the current and future assets and labor and productivity of the citizens of the issuing country and that is precisely what currencies are used to pay for in transactional use.

  • socalbeachdude

    When markets crash the money that was used to purchase stocks simply VANISHES INTO THIN AIR as stock prices are SET AT THE MARGIN (prices for all of a companies stock -0 known as market capitalization 0 is based on the price of the last trade) so the “money” represented by sky high stock values was NEVER THERE IN THE FIRST PLACE FOR NEARLY ALL OF ANY COMPANY’S STOCK SHARES.

    The detrimental affect for the few central banks (specifically the BOJ and SNB) who do own stocks is that their CAPITAL / EQUITY WILL FALL by the amount that stocks they own fall below prices that they paid and both banks (like the Federal Reserve) have PRACTICALLY NO CAPITAL / EQUITY AT ALL and are far more leveraged (ratio of capital / equity to assets) than Lehman Brothers when it collapsed in 2008. The leverage ratio of the Federal Reserve is now 72:1, for example.

  • socalbeachdude

    LEVERGE RATIO OF 260:1 FOR CHINA’s BIGGEST BANK>/b>

    How China’s biggest bank became Wall Street’s go-to shadow lender

    https://www.bloomberg.com/news/articles/2017-06-06/with-260-to-1-leverage-a-chinese-giant-takes-on-goldman-in-repo

  • socalbeachdude

    Janet Yellen pays me good money at the Federal Reserve.

    • PocoPete

      Is this one of your comments that you claim are “100% true, accurate, and correct?”

      • aldownunder

        It’s not like we didn’t know already

      • aldownunder

        What happened to your comment?

        • PocoPete

          I did not know I was replying to a fake socalbeachdude so I edited out my comment.

    • aldownunder

      Ahaa a fake socalbeachdude
      as if one isn’t bad enough

    • SoCalBeachDude

      Another FAKE IMPOSTOR post.

  • Clemenzza

    Need to start a GoFundMe page for SoCalBitchFood. This goofy caulk sucker needs numerous hours on the head shrinker’s couch.

    • SoCalBeachDude

      You need to read what I stated and attempt to learn from it and stop the stupid inane ad hominem snarks.

      • Clemenzza

        You need to spend less time posting on websites caulk sucker.

  • Stuey

    Any estimates on how much stock the Federal Reserve owns?

    • SoCalBeachDude

      Absolutely ZERO, and the Federal Reserve is prohibited from owning any stocks by the Federal Reserve Act and has NEVER purchase any equities (stocks) at all.

  • DB200

    Okay, so what I suspected is true. Outside the US Central Banks are owned by the government (but set apart from the politicians, at least on paper). The central banks are buying stocks and gaining ownership of companies. Hence the government owning companies. This is in effect communism. So in order to save capitalism, the western world is implementing communism. Oh dear, where will this end?

    • SoCalBeachDude

      No, only the BOJ and SNB which are just 2 of the hundreds of central banks in the world are buying equities (stocks) and NEARLY ALL CENTRAL BANKS DO NOT BUY EQUITIES AT ALL. The list of all central banks in the world is at the BIS web site which is the central bank of central banks.

      http://www.BIS.org

  • SoCalBeachDude

    TECH STOCK SLAUGHTER…

    http://www.reuters.com/article/us-usa-stocks-idUSKBN1901LX

    NEW BUBBLE FEARS…

    http://www.cnbc.com/2017/06/09/fang-stocks-slammed-goldman-compares-them-to-tech-bubble.html

    Bezos Falls to No. 3 as $8.6 Billion Wiped Out!

    https://www.bloomberg.com/news/articles/2017-06-09/bezos-falls-to-no-3-as-tech-giants-drop-8-6-billion-chart

    Apple, Facebook and other big tech stocks tank, weigh on Wall Street

    Facebook, Apple, Amazon.com, Alphabet, Microsoft all fell more than 3 percent Friday as investors rotated out of the stocks. The group has been the market’s leaders and is behind about 40 percent of its performance this year.

    http://www.cnbc.com/2017/06/09/fang-stocks-slammed-goldman-compares-them-to-tech-bubble.html

  • Scott Higgins

    Consider the possibility of a strategy that uses the banks to overtake the companies and place them under the ownership of the globalist agenda. In such a case, a crash or bankrucy is simply a means to transfer industrial power and control to powerbrokers with a planned outcome. Who controls companies in a socialist or communist government? Who influences politics and who would be motivated to do such things?

  • ultraman

    The central banks won’t stop buying to “crash the market” & destroy Trump. They have tons of various “henchmen” in their arsenal to do that.

    Maybe they’ll actually continue to buy until they own everything. For when you own everything, you can do ANYTHING.

    Like institute ( & control ) a “one world currency”…..& various other icky things………

  • DigitalThumb

    This won’t end well, record highs in stock prices but falling profits for these companies as the consumer sees no wage growth and relentless inflation of prices for everyday goods. The results less disposable income for the consumer which reduces the profits further of these corps. Will we see a corp go bust with record high share price? Anything is possible in this mad market.

  • SoCalBeachDude

    They don’t. The very few (about 2) central banks that own any stocks own a tiny little bit of them compared to the total market capitalization of stocks which in the USA alone is around $30 trillion.

  • apeman2502

    Time to DUMP THE FED!!

    • SoCalBeachDude

      Laughably false and an extremely stupid assertion.

      • apeman2502

        Your breath stinks and your mother dresses you funny. Dump the Fed. The interest money leaving the country equals the income tax collected now.

      • apeman2502

        Nope. Dump the Fed.

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