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The Central banks bought a staggering $1.5 trillion in assets in the first five months of the year to keep the economy from imploding while at the same time, capping the gold price. Yes, it’s true…. $300 billion a month of Central bank asset purchases pushes up STOCK, BOND and REAL ESTATE values while it depresses or caps the gold (or silver) price.
The amount of Central bank asset purchases are now reaching insane levels. And they have to. It is the same thing as being a drug addict. Once, someone starts down the road of drug addiction, it takes more and more of the drug to reach the same effect. Thus, when Central banks started purchasing assets to prop up the market, they have to continue, and they have to continue buying even more.
In a previous article, I published this chart showing Central bank asset purchases up until the first four months of 2017:
This chart came from a Zerohedge article that showed the Central banks purchased $1 trillion in assets in just the first four months of 2017, and the total of their balance sheets reached $14.6 trillion. In just five years, Central banks purchased $7 trillion in assets. However, in the first four months of 2017, they ramped it up to $1 trillion. Which means, the Central Bank asset purchases could reach $3.6 trillion annualized in 2017, surpassing half of all official purchases in the past five years.
That’s a lot of PROPPING UP folks…. and it also has totally depressed and capped the gold price. But, not for long.
However, before I get into some really interesting charts on just how crazy things are getting in Central bank land, I would like