{"id":28612,"date":"2017-12-06T07:24:47","date_gmt":"2017-12-06T12:24:47","guid":{"rendered":"http:\/\/olduvai.ca\/?p=28612"},"modified":"2017-12-06T07:24:47","modified_gmt":"2017-12-06T12:24:47","slug":"its-more-than-just-the-absences-of-acceleration-its-the-synchronization-where-there-should-be-none","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=28612","title":{"rendered":"It’s More Than Just the Absences of Acceleration, It’s the Synchronization Where There Should Be None"},"content":{"rendered":"
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IT\u2019S MORE THAN JUST THE ABSENCE OF ACCELERATION, IT\u2019S THE SYNCHRONIZATION WHERE THERE SHOULD BE NONE BY JEFFREY P. SNIDER<\/a>\u00a0<\/span><\/h3>\n<\/div>\n<\/header>\n
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According to the latest ECB figures, as of yesterday total \u201cliquidity\u201d added to the European banking system for that central bank\u2019s ongoing monetary \u201cstimulus\u201d was just shy of \u20ac2 trillion. The outstanding balance in the core current account (reserves) held on behalf of the banking system was \u20ac1.296 trillion. In the deposit account, banks are holding \u20ac686 billion at -40 bps in \u201cyield.\u201d<\/p>\n

To create all these euro-denominated numbers, the European Central Bank through its constituent National Central Banks (NCB) has purchased \u20ac2.21 trillion through its three main active LSAP\u2019s (Large Scale Asset Purchases): the PSPP, or QE, which buys up sovereign bonds and is the reason for running them through the NCB\u2019s (out of original concern exactly who would bear any default risk); the CBPP3, or the third time the ECB has bought covered bonds from banks; and the Corporate Sector Purchase Program which is self-explanatory.<\/p>\n

The numbers given above don\u2019t appear to balance because of the way all this stuff is accounted for. The NCB transactions of QE and other material operations actually subtract from the ECB\u2019s asset side because it isn\u2019t doing them, becoming instead -\u20ac1.21trillion in so far accumulated\u00a0autonomous factors<\/em>. On the other side, the liability side of the simple balance sheet, there are outstanding \u20ac769 billion in normal liquidity operations (OMO) at the MRO.<\/p>\n

The net of all these hundreds of billions and trillions is actually unclear. I don\u2019t mean that in an accounting sense, for all the euros are there in the various statements. Rather, what these massive transactions have produced where it counts is truly negligible.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

IT\u2019S MORE THAN JUST THE ABSENCE OF ACCELERATION, IT\u2019S THE SYNCHRONIZATION WHERE THERE SHOULD BE NONE BY JEFFREY P. SNIDER\u00a0 According to the latest ECB figures, as of yesterday total \u201cliquidity\u201d added to the European banking system for that central bank\u2019s ongoing monetary \u201cstimulus\u201d was just shy of \u20ac2 trillion. The outstanding balance in the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,7380,233,282,13578,17369,487,17368,535],"class_list":["post-28612","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-cobden-centre","tag-ecb","tag-european-central-bank","tag-jeffrey-p-snider","tag-large-scale-asset-purchases","tag-liquidity","tag-lsap","tag-monetary-stimulus"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28612","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=28612"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28612\/revisions"}],"predecessor-version":[{"id":28613,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28612\/revisions\/28613"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=28612"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=28612"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=28612"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}