WTF - must see

[Palloy2]

If any further proof was needed, we are totally fucked.  The Central Banks of US, China, Japan, ECB, UK and Switzerland, which are the bedrock of the world's financial system, now hold $19 trillion worth of assets, or 38% of combined GDP - up from 15% in mid 2007.



This asset-buying keeps share and bond prices up, and interest rates low.  If the Central Banks were to stop buying, share prices would fall and interest rates rise, making company debt impossible to service, hence bankruptcies everywhere, factories closed, workers laid off, stocks liquidated, tax revenues collapse, pension funds wiped out - the biggest deflationary spiral the world has ever seen.  In fact it will probably all be over so quickly that the economy wouldn't have time to complete a circuit, so spiral is not really the right word for it.  Head straight down the toilet, do not pass GO, do not collect 200 pounds.

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[Eddie]

What level do you think we get to before the house of cards comes down? Central bank assets equal to 100% of GDP?

200%?

It's all about confidence. Since ignorance is so pervasive among most people about how this system is being bubble-gummed and baling-wired together, I think it could go on still for some time. The handwriting certainly is on the wall, though.

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[RE]

<a href="http://www.youtube.com/v/98qw86DsdZ0" target="_blank" class="new_win">http://www.youtube.com/v/98qw86DsdZ0</a>

RE

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[agelbert]

What level do you think we get to before the house of cards comes down? Central bank assets equal to 100% of GDP?

200%?

It's all about confidence. Since ignorance is so pervasive among most people about how this system is being bubble-gummed and baling-wired together, I think it could go on still for some time. The handwriting certainly is on the wall, though.

Yep. As long as the Centrally Corrupt Banks have we-the-people by the Ex nihilo Legal Tender short hairs, nothing but the guillotine stops those plutocrats.

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[azozeo]

What level do you think we get to before the house of cards comes down? Central bank assets equal to 100% of GDP?

200%?

It's all about confidence. Since ignorance is so pervasive among most people about how this system is being bubble-gummed and baling-wired together, I think it could go on still for some time. The handwriting certainly is on the wall, though.

The opium trade is propping up the global economy.

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[Palloy2]

Theoretically eventually the Central Banks would own everything, but long before that they would run out of things to buy because the remaining super-rich players in the game would refuse to sell.  I think we've had articles posted here that say the ECB is reaching that point already (links to that welcome).



This table shows that this YTD, the Central Banks ex China have already bought a $ trillion's worth of assets, and are on track for a $3.6 trillion spend for 2017, and adding in China would take it over $5 trillion. 

Can anyone find a figure for World Total Assets, hence CB's %age share of that?

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[Eddie]

I calculated a couple of years ago that the value of all the estimated recoverable crude oil in all the oil fields in the world was only worth 20 trillion USD or so at current prices. This did not include tight oil only recoverable with fracking, but it's a number that says a lot about the debt level and the likelihood of it ever being paid back.

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[agelbert]

I calculated a couple of years ago that the value of all the estimated recoverable crude oil in all the oil fields in the world was only worth 20 trillion USD or so at current prices. This did not include tight oil only recoverable with fracking, but it's a number that says a lot about the debt level and the likelihood of it ever being paid back.

We are all dead if they even get to burn a tenth of that oil...

But we get to die from lots of other profit over planet  reasons even before that.   

Here’s where you’re most likely to die from air pollution

http://grist.org/climate-energy/heres-where-youre-most-likely-to-die-from-air-pollution

But don't worry, Pruitt and Trump have a plan....

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[Surly1]

What level do you think we get to before the house of cards comes down? Central bank assets equal to 100% of GDP?

200%?

It's all about confidence. Since ignorance is so pervasive among most people about how this system is being bubble-gummed and baling-wired together, I think it could go on still for some time. The handwriting certainly is on the wall, though.

The opium trade is propping up the global economy.

Would love to see some numbers based on any reasonable estimate on that.
Wouldn't bet against that being true.

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[Palloy2]

The UNDOC says that 90% of world opium production is in Afghanistan, and 60% of world heroin consumption is in the US.  It follows that at least 83% of heroin in the US comes from Afghanistan - a country where US forces have been at war for the last 16 years, all the time blaming the enemy for growing poppies.



Spraying the crops with herbicide from aircraft is possible, of course, and it's not like they don't know where the poppies are, most are in Helmand province where the US built a wonderful irrigation system for them.  But they haven't killed of the industry by spraying because they were asked not to by the Afghan Government, not the Taliban.

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