Global Central Banks are running a racket… and ripping off citizens, worldwide.
The Swiss National Bank now owns a massive portfolio of U.S. stocks – which currently generates “over $1 billion worth of dividends, or as @SheepleAnalytics notes, “they print money and we ship them our profits.”
U.S. citizens, meanwhile, have to make stock purchases the old-fashioned way – with funds that were gainfully acquired.
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The Swiss National Bank Now Owns $87.5 Billion In US Stocks After Q2 Tech Buying Spree
ZeroHedge, Aug 9, 2018 – Excerpts:
In the second quarter of 2018… another central bank buying spree meant to boost confidence that things are now ba ck to normal, using “money” that was freshly printed out of thin air, and spent to prop up risk assets around the world by recklessly buying stocks with no regard for price or cost.
Nowhere was this more obvious than in the latest, just released 13F from the massive hedge fund known as the “Swiss National Bank.” What it showed is that, just like in the prior quarter, and the quarter before that, and so on, the Swiss central bank went on another aggressive buying spree and following a modest selloff in the first quarter which was a mirror image of the SNB’s buying spree during Q1 2017 – the Swiss central bank boosted its total holdings of US stocks to $87.5 billion, up 6.6% or $5.4 billion from the $82.0 billion at the end of the first quarter, and just shy of their all time high.
On a share basis, the SNB added some 33.659 million shares to its total holdings of US stocks, which at the end of Q2 stood at 1.320 billion.
Some notable observations: in the second quarter, after the SNB printed money out of thing air, it then added 4.85 million shares of AT&T, 673K shares of MSFT, 305K shares of AAPL, 272K shares of FB, 46K shares of AMZN, 423K shares of XOM. And according to some calculations, the SNB’s portfolio now generates over $1 billion worth of dividends, or as @SheepleAnalytics notes, “they print money and we ship them our profits.”
While we are far beyond the point of debating central bank intervention in equity markets (we do want to remind readers that until several years ago, it was considered “fake news” to even mention it, and those who accused central bankers of manipulating stock markets were said to be paranoid tinfoil basement dwellers), we want to point out that unlike the BOJ, which at least keeps its capital markets distortion local, the SNB, which likewise creates money out of thin air (then sells it for dollars in an attempt to keep the Swiss franc depressed) is actively causing substantial price distortions in the US while collecting billions in annual dividends from US corporations which are then remitted to various Swiss cantons and regional governments to fund local growth.
While we doubt this will be investigated with stocks at all time highs, we look forward to the Congressional hearings after the crash when the scapegoating and fingerpointing begins as it always does, and everyone is “stunned” to learn that central banks were responsible for blowing the biggest asset bubble the world has ever seen by directly buying stocks.
What else did the SNB reveal in its 13F? Two main things:
First, its top 20 holdings are as shown in the following chart. The central bank was clearly not shy in adding to its top positions. And more notably: it was most aggressive in adding to tech names, just in case there is still confusion why with the rest of the stock market flat YTD, it was tech names that drove the S&P500 higher.
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The Swiss National Bank gets to create ‘fake money’ to purchase U.S. stocks – and ‘suck’ over $1 billion in annual dividends out of our markets – to distribute to their own citizenry.
And, U.S. citizens sit on the sidelines and watch.
The U.S. Federal Reserve can take a big step toward leveling the playing field by granting direct liquidity extensions to U.S. citizens, in similar fashion to what they provided as bailouts Wall Street’s financial sector 2007-2010.
The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens. It is a comprehensive plan with long-term economic and social benefits for citizens and government.
The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.
The Leviticus 25 Plan – An Economic Acceleration Plan for America