Blogger: "Køber man Aktier(Stocks), får man en ejerandel i en virksomhed"."Køber man obligationer (Bonds), køber man gæld i et selskab"."Investere man på 'derivater'(derivatives) gambler man via en kontrakt om, hvad der vil eller ikke vil ske, i fremtiden"(Calculus). Derivater er Satans lottokupon, et sandt onde skabt til Wall Street og verdenseliten for maksimalt afkast, indtil nu, har det virket, men ikke meget længere.... $700 trillioner i derivater globalt (gæld). (Det er over ti gange verdens BNP) En tidsindstillet bombe der kan gå af, når som helst... Startede med, at Grækenland erklærede sig bankerot, bekymrede grækere tog pengene hjem under madrassen hvor bankerne risikerede kontantmangel samt forlod euroen. Hvad der er hændt med de handler (statsobligationer), som EU-banker har anvendt som sikkerhed, ved ingen.... Vi ved heller ikke, hvor mange trillioner dollars i derivater som Merkel og EU faktisk havde i klemme inden den græske regering sagde ja til en aftale, vi ved bare, Europa har sagt 'ja' til at åbne græsk lånepakke, men sagen er IKKE slut endnu....langt fra......nu Deutsche Bank som er den største bank i Europa og har ikke kun en 100 milliarder bøde, hængende over hoved, men 13 billioner kroner som er tabt..Deutsche Bank hiver alle internationale stor-banker ned i faldet som også har 'derivater' i klemme og har en direkte afhængig af Deutsche Bank... dernæst samtlige storbanker, selvom Rothschild bevidst holder hånden over, indtil videre.... Deutsche Bank is a $2 trillion problem
Authored by Daniel Lacalle via The Mises Institute,
The FT recently ran an article that states that “
leading central banks now own a fifth of their governments’ total debt.”
The figures are staggering.
Without any recession or crisis, major central banks are purchasing more than $200 billion a month in government and private debt, led by the ECB and the Bank of Japan.
- The Federal Reserve owns more than 14% of the US total public debt.
- The ECB and BOJ balance sheets exceed 35% and 70% of their GDP.
- The Bank of Japan is now a top 10 shareholder in 90% of the Nikkei.
- The ECB owns 9.2% of the European corporate bond market and more than 10% of the main European countries’ total sovereign debt.
- The Bank of England owns between 25% and 30% of the UK’s sovereign debt.
A recent report by Nick Smith, an analyst at CLSA, warns of what he calls ”
the nationalization of the secondary market.”
The Bank of Japan, with its ultra-expansionary policy, which only expands its balance sheet, is on course to become the largest shareholder of the Nikkei 225’s largest companies. In fact, the Japanese central bank already accounts for 60% of the ETFs market (Exchange traded funds) in Japan.
What can go wrong? Overall, the central bank not only generates
greater imbalances and a poor result in a “zombified
” economy as the extremely loose policies perpetuate imbalances, weaken money velocity, and
incentivize debt and malinvestment.
Believing that this policy is harmless because “there is no inflation” and unemployment is low is dangerous. The government issues massive amounts of debt and cheap money promotes overcapacity and poor capital allocation. As such, productivity growth collapses, real wages fall and purchasing power of currencies fall, driving the real cost of living up and debt to grow more than real GDP. That is why, as we have shown in previous articles, total debt has soared to 325% of GDP while zombie companies reach crisis-high levels, according to the Bank of International Settlements.
Government-issued liabilities monetized by the central bank are not high-quality assets, they are an IOU that is transferred to the next generations, and it will be repaid in three ways: with massive inflation, with a series of financial crises, or with large unemployment. Currency purchasing power destruction is not a growth policy, it is stealing from future generations. The “placebo” effect of spending today the Net Present Value of those IOUs means that, as GDP, productivity and real disposable income do not improve, at least as much as the debt issued, we are creating a time bomb of economic imbalances that only grows and will explode sometime in the future. The fact that the evident ball of risk is delayed another year does not mean that it does not exist.
Credit: Stanford
