Global Central Banks = Reckless & Unchecked

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No Palatable Exit Strategy For Money Printing/Asset Acquisition Binge.

Even Allowing Bond Holdings To Simply Mature = Rate Ramp…As Federal Debt Diet = Steady

Central Bank Balance Sheet Reduction Chatter = Not Credible As Primary Rationale = To Create “Space” For Future Asset Purchases.



1. Federal Reserve = Not Department of Federal Government.
2. Federal Reserve = Owned By Member Banks.
3. Prints Money, Without Limitation/Oversight, To Execute Dual Mandate.


1. Federal Reserve Balance Sheet [U.S. Treasuries + MBS] = $4.5T = 118% of Annual Federal Budget.
2. Current Status = Money Print On-Hold + Balance Sheet Size Maintained = Reinvestment of Matured Securities.
3. Interest Payments on Securities Remitted To U.S. Treasury = $100B/Yr…Reduces Annual Federal Deficit By 15%.
4. U.S. Treasury Pays Interest on Bills/Notes/Bonds To The Fed. The Fed Remits The Interest Earned Directly Back To U.S. Treasury.


In 2009 U.S. Federal Reserve Initiates M1 Liquidity “Super-Nova” = 7+ Year Money Print = Termed QE [Quantitative Easing].

Global Central Banks

Global Central Banks Replicate Federal Reserve Strategy.

Global Assets Portfolio > $18T = Almost 40% of Global GDP.

Global Assets = Sovereign Debt + Corporate Bonds + Equities.

Global Central Banks

QE Ignites Asset Price Inflation But Does Not Transmit To: Traditional Inflation Measures…

Global Central Banks

Or Meaningful GDP Growth.

Thus…Lower/Inverted/Negative Interest Rates Are Initiated To Further Stimulate Economic Growth.

Global Central Banks


This Stimulus Strategy = Doomed To Fail As Printed Dollars Crowd-Out Earned Dollars In Global Capital Markets.

Income Generated By Printed Dollars Remitted To Sovereign Treasuries.

Income Generated By Earned Dollars Remitted To Private Sector.


To Thwart Central Banks’ Limitless Money Creation Authority…A Catalyst Is Required.

The Catalyst = Unknown…Likely Broad/Persistent Public Market Tumult/Volatility…Devaluing Global Central Bank Security Portfolios.

The Solution = Probably Political…Stripping Central Bank Powers…Citing Breach of Moral Hazard Doctrine.


The Toughest Questions = Specifically…

  1. WHEN?
    Impossible To Pinpoint…But Getting Closer.
  2. BY WHOM?
    Somebody With Power & “Sack.”

Article by Global Slant

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