You can’t see the bombs, you can’t see the casualties, and you can’t see the headlines, but World War III is already in full progress. And no, I’m not talking North Korea, Iran, or Syria or any other countries with minuscule military budgets in comparison to the US that are often hyped to be a global threat. World War III has actually been raging for a while, but it really kicked into full gear in February 2016. How do we know that? Because ever since February 2016 central banks have been throwing more financial resources into market intervention than the entire planet is spending on military defense combined. Indeed the latest figures for 2017 suggest that the run rate is now more than twice of all the defense budgets of the world combined.
This is what it apparently takes to fight the largest financial threat the planet has ever seen: Reality.
“Whatever It Takes” has been the rallying cry of central bankers ever since the 2008/2009 financial crisis. Still the main motto cited by Mario Draghi and other central bankers on a regular basis continues to be the primary driver of global asset values. Markets can’t correct, asset values can’t re-align with an underlying fundamental economic and fiscal reality. Hence price discovery remains a figment of night time algos correcting all bad news and morphing everything into a false illusion of calm and prosperity benefiting not only primarily the top 1% of wealth holders, but also an ever shrinking universe of stocks. The end result: An ever widening disconnect of asset values from underlying fundamentals.
And don’t think the US Fed has left the building. Far from it. Despite 3 rate hikes and a stable balance sheet, the Fed, being the entity most responsible for the nation’s M1 money supply, has guided the very same to ever steady record highs and stock prices with it. The Fed keeps printing and global central banks keep on buying.
How and when this all ends nobody knows, but know the data shows that central banks are engaged in World War III.
In the spirit of “Whatever It Takes” then please find below a summary of tweets and data just from the past few weeks highlighting the utter absurdity of the global interventionist system that has been created and, by all accounts, is absolutely required to keep this system from facing reality.
World War III in all its glory:
ECB:
April Humor:
ECB Officials Warn Against Dialing Back Stimulus Too Soonhttps://t.co/13AL4LVbEj pic.twitter.com/K2HraJP4bw— Sven Henrich (@NorthmanTrader) April 19, 2017
Central Bank buying:
Central banks have bought over $1 trillion of assets since the beginning of 2017 = largest CB buying in past 10 yrshttps://t.co/KIot9q0OxI pic.twitter.com/8XCjEXsUUv
— Sven Henrich (@NorthmanTrader) April 21, 2017
Central Bank buying:
“We can’t explain the ongoing low volatility conditions in markets” pic.twitter.com/kyztQPHXuq
— Sven Henrich (@NorthmanTrader) April 10, 2017
Consumer debt versus Fed Funds rate:
The FOMC has yet to explain how consumers will fare holding record debt levels in a rate rising environment w/ lagging wage growth pic.twitter.com/KiBZhPIw9x
— Sven Henrich (@NorthmanTrader) April 21, 2017
Central bank buying versus military budgets:
Here are the current run rates for 2017 on global spending:
ALL defense budgets COMBINED vs global central bank intervention
$1.7T vs $3.6T pic.twitter.com/4LM2gsTgaG— Sven Henrich (@NorthmanTrader) April 21, 2017
M1 Money supply:
M1 money supply. New all time highs again.#thxjanet pic.twitter.com/DXCAPOU2RT
— Sven Henrich (@NorthmanTrader) April 17, 2017
Q1 GDP evolution:
When soft expectations turn into hard data…
Happy Easter!#GDP#growth pic.twitter.com/UEP2WijIZ1— Sven Henrich (@NorthmanTrader) April 15, 2017
Debt, more debt, and more debt:
SPOTTED: The business model of USA Inc. pic.twitter.com/HugbsqU11n
— Sven Henrich (@NorthmanTrader) April 17, 2017
Asia Debt:
Asian Nations Swimming in Debt at Risk From Fed Rate Hikeshttps://t.co/1btN1dcI7b pic.twitter.com/Zyx1XgR8C8
— Sven Henrich (@NorthmanTrader) April 11, 2017
US Government Net Worth:
IPO ready. pic.twitter.com/bIbgxTF0Hy
— Sven Henrich (@NorthmanTrader) April 10, 2017
Credit Card Debt
The recovery is complete.https://t.co/y1v2XRS91e
— Sven Henrich (@NorthmanTrader) April 10, 2017
Global Debt Evolution:
Global debt has increased by $70T in just 10 years.
This is what it took to reflate the system.
This is what it will take to keep it going. pic.twitter.com/rpZtR2CIxt— Sven Henrich (@NorthmanTrader) April 4, 2017
Wealth Inequality:
Note the trend no matter whether Democrats or Republicans are in charge.
But go ahead and argue who will do a better job for you. pic.twitter.com/5OrFz3JHSn— Sven Henrich (@NorthmanTrader) April 2, 2017
Japan: We will never stop
Or Ever: BOJ chief Kuroda says ‘no reason’ to withdraw stimulus nowhttps://t.co/bXyYnZ2TiW
— Sven Henrich (@NorthmanTrader) March 24, 2017
China:
Consequence free.
h/t @Schuldensuehner pic.twitter.com/L7LBQSqn1m— Sven Henrich (@NorthmanTrader) March 13, 2017
Categories: Opinion
If everyone is indebted to everyone else.. are we really in debt to anyone?
Your assessment is dead on accurate, elite waging war against the poor/middle-class