Friday, August 12, 2016

It's Official: All Central Banks Are Now Totally Maxed

See Full Report
*We've been showing how the ECB and JCB are totally maxed. They can't meet their mandates.
*The Bank Of England just ran out of bonds to buy too. That was fast.
*QE supply issues have this QE spree nearing an end of the road.
*We wanted to review why it all may not be working and the events to watch out for.
*We have one chart in this report that should incite a gasp. We'll give a hint. It's the last one. But read the whole thing for context.

We have to admit, we weren't surprised to see that the Bank Of England was unable to buy the bonds they wanted to buy. Didn't they just set out to ease last week? They are already maxed? That was fast.
The ECB (Euro Central Bank) and JCB (Japan Central Bank) are totally maxed too. What now? While the level of liquidity growth is peaking governments are still keeping market rates low. But markets are markets and if bond holders want to sell at some point for, oh I don't know, inflation, then CBs will be able to buy everything they want.
BoE Already Maxed
Most readers know by now this has to be one of our favorite subjects in the entire universe. This is better than politics and we'll prove it to you. We caught central bank officials on video. The Bank of England ("BoE") set out to buy everything they could last week and already ran into no sellers. The Bank of England can not carry out its quantitative easing ("QE") of liquefying 170B pounds worth to the UK market. Why? There are no sellers.
We know the story. Buying bonds at low rates adds money to banks so banks can turn around and lend to businesses and people. It's supposed to add money to the economy. If CBs can't carry out their purchases they don't add that money. Other than BoE officials walking outside and handing money to the people directly, they can't get the money out there into the system.
They hit a wall on week one.
JCB and ECB to BoE: We know all about it
We've reported that the JCB and ECB can't find bond sellers for the central banks to meet their bond buying liquefying goals. We've reported that the only way the ECB meets their stated published goals of bond buying is to break or change the laws. This is the overseer of the entire EU banking system. They made plans publicly to buy bonds that were illegal for them to buy.

Chaim Siegel has been working with hedge funds and mutual funds as an analyst and PM his entire career. Chaim specializes in earnings and predicts, analyzes and reacts to earnings and earnings events as well as developing current company stories with a hedge fund perspective. If you want his analysis real time sign up to the right for real time email alerts. #in, $spy, $qqq, $iwm, $vxx, $ycs, $fxe, $EUO, $YCS, ^GSPC, INDEXSP:.INX, #elazaradvisorsllc, CME Globex: ES Disclosure: These trades can lose you money and principal especially when using leverage BY USING THIS SITE YOU AGREE TO TAKE ALL RESPONSIBILITY FOR YOUR OUTCOMES AND LOSSES AND HOLD BESTIDEAS, ITS CONTRIBUTORS AND ELAZAR ADVISORS, LLC HARMLESS

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