It
is becoming ever more apparent that we have an economic system increasingly
rigged for the benefit of the superrich, who own most of our members of Congress,
and are, by that means, able to continuously inflate the value of their
holdings at the expense of everyone else.
To
wit:
Next
leg of
the grandest of all ponzi schemes: foreign central banks to begin buying US stocks
outright, starting today!
"The
Bank of Israel will begin today a pilot program to invest a portion of its
foreign currency reserves in US equities.
The investment, which in the initial phase will amount to 2% of the $77 billion reserves, or about $1.5 billion, will be made through UBS AG and BlackRock Inc. (BLK), Bank of Israel spokesman Yossi Saadon said in a telephone interview today. At a later stage, the investment is expected to increase to 10% of the reserves.
A small number of central banks have started investing part of their reserves in US equities. About 9% of the foreign- exchange reserves of Switzerland's central bank were invested in shares at the end of the third quarter, the Swiss bank said on its website.
The
investment will be made in equity index trackers and will include between 1,500
to 2,000 shares, among them stocks like Apple Inc. (AAPL), Saadon said."
From
Globes: Israel's Business Arena:
"The
Bank of Israel today began investing a small part of its $77 billion in foreign
currency reserves in US stocks. The
central bank's latest Markets Division report states that the new Bank of
Israel Law (5770-2010) allows the Bank of Israel to make equity investments,
and that it began to do so today.
The
Bank of Israel will invest $1-1.5 billion in US stocks, 2% of its portfolio. The report adds that the Bank of Israel has
been investing in public bodies in developed countries since 2010."
While
the Fed's charter forbids it from
buying US equities outright, it certainly can promise that it will bail out
such bosom buddies as the Bank of Israel, the Swiss National Bank, and soon
everyone else, if and when their investment in Apple should go sour.
This
means that the exponential phase in risk is approaching, as everyone will now
scramble to front-run central bank purchases no longer in bonds, but in stocks
outright, leading to epic surges in everything risk related. This
will be followed by a collapse that will force the Fed to issue tens of
trillions to bail everyone out all over again. The long overdue systemic reset is finally
approaching.
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