{"id":32183,"date":"2018-03-10T17:59:12","date_gmt":"2018-03-10T22:59:12","guid":{"rendered":"http:\/\/olduvai.ca\/?p=32183"},"modified":"2018-03-10T17:59:12","modified_gmt":"2018-03-10T22:59:12","slug":"21-trillion-and-rising-how-central-banks-are-lboing-the-world-in-one-stunning-chart","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=32183","title":{"rendered":"$21 Trillion And Rising: How Central Banks Are LBOing The World In One Stunning Chart"},"content":{"rendered":"
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$21 Trillion And Rising: How Central Banks Are LBOing The World In One Stunning Chart<\/a><\/span><\/h3>\n<\/div>\n
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Back in late 2016, we showed <\/a>the unprecedented domination of capital markets by central banks using a chart from Citi, which had put together a fascinating slideshow asking simply “Where is the utility in marginal QE” and specifically pointing out that the longer unconventional monetary policy such as QE continues<\/a>, the bigger its marginal cost, until eventually QE becomes a detriment.<\/p>\n

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A broad criticism of monetary policy, the presentation carried an amusing footnote: “This presentation does not change any of Citi\u2019s existing, published views on the actual future path of monetary policy. It is merely intended as a contribution to the ongoing debate about the efficacy of available policy tools” –\u00a0 after all, the last thing the market wanted is the realization that even banks no longer have faith in the central planners.<\/p>\n

Incidentally, Citi’s broad critique of global QE took place when central banks owned just over $18 trillion in assets.<\/p>\n

Fast forward to today when in its latest update of central bank holdings, Citi shows that as of this moment not only has the total increased by another $3 trillion to a grand total of $21 trillion and rising, <\/strong>but that the big six central banks now own over 40% of global GDP<\/strong>, more than double the 17% they held before the financial crisis less than a decade ago.<\/strong><\/p>\n

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Which is remarkable in a world where there is still some confusion about what is behind the “global coordinated recovery”, and where there are deluded people who claim that central banks are now out of the picture.<\/p>\n

It is also remarkable because now that central banks are gradually phasing out QE, it is the central bankers themselves who are terrified of what happens when the market starts selling; terrified that they have lost control. <\/strong>Recall that following stunning admission from Citi’s Hans Lorenze<\/a>n last November:<\/p>\n

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

$21 Trillion And Rising: How Central Banks Are LBOing The World In One Stunning Chart Back in late 2016, we showed the unprecedented domination of capital markets by central banks using a chart from Citi, which had put together a fascinating slideshow asking simply “Where is the utility in marginal QE” and specifically pointing out […]<\/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":[124,125,19235,534,661,662,4318],"class_list":["post-32183","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-central-planning","tag-declining-marginal-returns","tag-monetary-policy","tag-qe","tag-quantitative-easing","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32183","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=32183"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32183\/revisions"}],"predecessor-version":[{"id":32184,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32183\/revisions\/32184"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}