In the first few months of the year, a trading desk rumor emerged that even as institutional traders dumped stocks and retail investors piled into ETFs, a “mystery” central bank was quietly bidding up risk assets by aggressively buying stocks. And no, it was not the BOJ: while the Japanese Central Bank’s interventions in the stock market are familiar to all by now, and as we reported last night on sessions when the “the BoJ comes in big, the average return on the [Nikkei] is about 14 basis points higher” with Nomura calculating that “the BoJ has provided a cumulative boost to the Nikkei of about 1,400 points”…… the one thing about the BOJ is that it keeps its interventions local, and tends to mostly prop up Japanese stocks, whether the Nikkei 225 or the Topix.The answer was revealed on Friday when the hedge fund known as the “Swiss National Bank” posted its latest 13-F holdings. What it showed is that, as rumored, the Swiss National Bank had gone on a record buying spree in the first quarter, boosting its total equity holdings to an all time high $80.4 billion, up $17 billion from the $63.4 billion at the end of 2016, the biggest quarterly increase in “AUM” in history.
The problem is that most people don’t understand a thing about global finance. I’m far from an expert but I have made an attempt to understand the basics because global finance is where the elites really fuck us over. I have little doubt that if you’re reading this, you’ve made an attempt as well at understanding global finance, especially after the gargantuan LIBOR scandal. But most people haven’t the slightest clue.
And so, events like this one with a Central Bank buying millions of stock shares and further overinflating a global economy that is already inflated to historic levels, nobody bats an eye. Nobody cares that it is extraordinarily unethical for a Central Bank to do so. And so after the enormous crash that’s likely coming happens, we’ll have congressional hearings with all sorts of grandstanding and bullshit. Some of that bullshit will splatter onto the Swiss National Bank and politicians will do their best to associate their enemies with entities like the Swiss National Bank. And millions of starving lemmings will likely believe those politicians, especially the Liberal lemmings.