Central banks around the world are printing money. They are admittedly buying shares of companies, either domestic or foreign.
In the case of Japan, they are buying the vast majority of ETF's and just about everything else.
The ECB is buying corporate debt, supporting the insolvent corporations.
The Fed is monetizing the debt of the U.S. government, allowing it to continue operating through its bankruptcy. They also printed $16 trillion during the Financial Crisis and gave it to institutions all around the world and didn’t tell anyone.
The Bank of Norway and the Swiss National Bank are buying shares of U.S. companies, through publicly visible 13F filings directly on the SEC website.
In total, central banks have actually admitted printing $15 trillion in recent years, utilizing it in one way or another.
As a result of all of this intervention, stocks, particularly in the U.S. have risen. Central banks are buying these shares and there's really nothing stopping them from printing more money and buying more shares. The balance sheet of the G3 central banks entirely correlate with U.S. share prices over the years since the Financial Crisis.
Interest rates has been persistently low for nearly a decade. This policy of easy money has been pervasive globally. Unprecedented and extreme circumstances forced governments and central banks to react, taking every measure possible. What’s unusual is that while we are being told that the economy is doing well and that is reflected in the markets, the quantitative easing and ultra low and even negative interest rates are still continuing. Seems strange to me.
The Fed uses a technique it calls: Forward Guidance. This is essentially publicly stating what they may do as a means of manipulating the market to remain calm or go higher. Not actually even taking an action is necessary. Simply saying what they will do is good enough and it has now become an acknowledged tool available to the Fed.
Why you may ask? Since 2009, the market has moved in lockstep with the central bank actions. Traders know this. Algorithms know this. Bankers and politicians may even know this. So as long as they remain “accommodative”, the party goes on. If the central banks reverse course, stocks and every other asset benefiting from these dangerous policies will feel the burn immediately.
To summarize, stocks will continue to rise as long as the Fed, the ECB, the BOJ, and the rest of them print money. A decade ago, despite central banks having full control of the monetary system, they allowed a crash to occur. Why? They could have just printed trillions instantly and solved crisis before it got bad. But of course, the Financial Crisis was created by those central bankers, in order to manufacture a problem, then present the predefined solution.
The central banks are buying up the world’s assets. The richest of the rich people like Warren “The Insider” Buffet, were able to scoop up assets at bargain prices while many people were scrambling. The Emir of Qatar buying multiple islands of Greece. Countries like Greece and others are now selling off their assets for pennies on the dollar.
This Crisis which is still unfolding is all part of a master plan. And the only thing that anyone can ever point to is rising stocks and real estate.
But look beyond the curtain, into the shadows, and unveil the truth.
