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December 30, 2017 | 2009 – 2017 Four Central Banks Pumped 19.7 Trillion $$$ into Global Economy! The Result!

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian:

Why have we had over 8 years of elevated asset values and a feeling that this situation is permanent? The change in finance and economics since the financial crisis of 2008 was our Central Banks and their pumping actions. This historic pumping of new liquidity into the overall global financial system is what has given us our current BUBBLE markets. Look at these four Central Banks for an example of what has happened:


  1. The PBOC (China) has pumped in some $5.5 trillion via their QE polices.
  2. The Bank of Japan has pumped in some $4.6 trillion via their QE policies.
  3. The European Central Bank has pumped in some $5.2 trillion via their QE polices.
  4. The Federal Reserve Bank of the USA has pumped in some $4.4 trillion via QE.


The above four Central Banks (excluding the Bank of England and all the other less prominent Central Banks) have increased their balance sheets by some $19.7 trillion (all this is measured in nominal dollars for comparison purposes). If we think about the multiplier effect where banks use these new funds to increase their own balance sheets the pumping of digital money into our global economy has been beyond anyone’s imagination. The trillions are impossible to measure accurately.


But all this pump priming and asset bubble situation is coming to and END in 2017 and early 2018. The thinking is that these bubbles must now be managed and reduced. Unfortunately, this mindset will eventually create the environment for a downturn in all our markets. This downturn will be equally historic and it all starts in 2018. The elites who rule over us now are tapering their pump priming and this will CHANGE all markets later in 2018. It’s all a game of numbers, digits, and this concept called ‘value’!


What goes UP eventually comes DOWN. The charts of our Central Banks reveal that this extraordinary elevation of credit and liquidity has reached levels where a reversal in trend must happen. This is starting now and it will continue until we see major breaks in the prior trend. The 2009 to 2017 trend was UP and UP as our Central Banks experimented with their ability to create money OUT-OF-NOTHING (called QE or Quantitative Easing). This game is now mostly OVER!


The POWER of our Central Banks has been beyond my ability to fully understand. I did not think that our Fed would set in motion this type of QE trend all over the globe. But our prior Fed Chairman, Mr. Ben Shalom Bernanke, was able to show that Central Banks could create digital money via a mere punch of the computer key. All this could be accomplished behind closed doors with few discerning what was happening.


This led to similar actions by the Bank of England, the Bank of Japan, the European Central Bank, the Swedish Central Bank, and the People’s Bank of China. All copied the Bernanke mindset (creating units of their currencies from their personal thinking) and this is what created the multi trillions of new currency units flooding the planet. From 2009 to 2017 we have experienced a unprecedented period of new monies flooding our stock, bond, real estate, and derivative markets.


No amount of negative happenings (war, social upheaval, terror, or global killing events) have altered the trend of increasing asset values these past 8 years. Our money from nothing policy has overcome all other negative events to give us all a FEELING of a ‘wealth effect’ and an emotion that all is well within economics. My many friends here in Arizona have all mostly felt that these actions were good, proper, and beneficial for everyone. The DOW increased in 2017 by 25% and this is what everyone now expects going forward. More asset bubbles for all our markets in 2018.


My sense is that all this expectation is unwarranted and misleading. Our Central Banks (those who rule over all global economic events) are NOW starting to reverse this pump priming trend. The trillions of new currency units will which created our bubbles will now start to be withdrawn (gradually). America’s Fed has started the trend. The European Central Bank is following. The Bank of Japan is considering a reduction soon. The People’s Bank of China is considering a similar reduction. Others will likely follow!


The GAME of pump priming our global economy with unprecedented new currency units is now mostly OVER. The bubbles have reached a peak in 2017 and this ‘snowball’ of credit and liquidity will start its descent from the ‘mountain’ top. 2018 will be a new year where Central Banks will start this tapering process and then an increasing of global interest rates will follow. The game of excessive pump priming is OVER IMO and this changes the entire GAME of finance going forward.


Our crypto currencies will experience this change later in 2018. The Real Estate sector will experience a reversal of trend. The stock markets will gradually experience a reversal of trend. Bond markets will likely experience increasing interest rates and all our derivative markets will start to wonder if this game can continue. It’s all math and numbers and today the game is rigged by our Central Banks and their trading gimmickry and their algorithmic manipulations within all these markets.


The exposure of our Central Banks is now needed so everyone can discern the role which these institutions played to create these fantasy markets all around the planet. Our Fed was at the core of this global financial corruption and I would vote for these elites (starting with the Bernanke QE policy) to receive the prize for the ‘intoxication’ which our markets received from 2009 – 2017. Who will receive the prize for ‘removing’ this intoxication from our markets? Might it also be Bernanke (prior to his removal from being our Fed Chairman)?


The USA mostly rules over global finance as our $$$ is the most prevalent currency for settling all global transactions. This may change in 2018 as people recognize the corruptions which our dollar has promoted. My sense is that the digital dollar has helped create these crypto currencies which are also digital units. All is now becoming digital and this eventually leads to the ‘Mark of the Beast’ economic system. I sense that this end-time system is soon to emerge globally. Enjoy the Holidays! 2018 will be an interesting year IMO. Prepare of serious change soon! I am:

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December 30th, 2017

Posted In: Kingdom Economics

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