ECB Has Had Enough Of The Musical Liquidity Chairs Game, Leaves Fed As Only Methadone Clinic In Town

Tyler Durden's picture Submitted by Tyler Durden on 10/12/2010 11:15 -0500

Ben BernankeEuropean Central BankPurchasing Power

Bund futures drop and the EUR spikes after the ECB’s Weber has just announced that the Fed (and China) is now most likely on its own in feeding LSD and crack-laced methadone to the liquidity heroin addicts. This means Bernanke is now single handedly responsible for doing the TBTFs’ bidding and destroying the purchasing power of the world’s middle class.

ECB’s Weber says rates could rise before the phasing out of support measures completeECB’s Weber says bond buying programme should be phased out permanently ECB’s Weber says unwise to postpone relevant considerations on exit measures and rates end of crisis ECB’s Weber says risks from exiting too late from loose policy greater than exiting too earlyECB’s Weber says necessary not to postpone exit from support measures for too longECB’s Weber says for now inflation risks low, policy stance appropriateECB’s Weber says maintaining accomodative policy for too long may de-anchor inflation expectationsECB’s Weber says would be good to have generous allotment when going back to competitive tender

Of course, this means that the ECB has left German exporters to fend on their own. At the end of the day it will be Germany’s choice as to how to deal with a US-Sino block whose only hope is to debase their own currencies to zero. This is nothing but more jawboning: soon enough the european central bank will realize it has no choice but to join Ben in the currency destruction bandwagon.

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by tmosley
on Tue, 10/12/2010 – 11:19
#643379

I’m not sure you can take a central banker at his word.

If he’s not lying, then bully for Europe.  Guess that will be part of the next “Peter Schiff was right” video if he isn’t.  I didn’t think that would be the case, but I guess I might be wrong.  For the sake of Europe, I hope I am.

Login or register to post comments by EscapeKey
on Tue, 10/12/2010 – 11:36
#643439

His job, as well as Uncle Ben’s, isn’t to tell the truth, it’s to inspire confidence.

 

Login or register to post comments by French Frog
on Tue, 10/12/2010 – 11:20
#643380

does weber really mean what he says?

Login or register to post comments by UninterestedObserver
on Tue, 10/12/2010 – 13:15
#643688

You’ll know he means it when he gets suicided

Login or register to post comments by scaleindependent
on Tue, 10/12/2010 – 14:59
#644114

In this FX war the world is experiencing, what can Europe/Germany do to counteract the debauching of the US dollar?

They can create another scare of the Euro similar to April and May, where everyone thought the European Union would dissolve.

They can threaten to throw one of their own, Ireland? under the train and thus cause the Euro to go down.

I am not saying that will not happen and I agree that Weber is talking confidence game, but if the Euro continues to suffer then …All is fair in love and war.

Login or register to post comments by Ragnarok
on Tue, 10/12/2010 – 11:20
#643383

I’ll believe it when I see it.

Login or register to post comments by Turd Ferguson
on Tue, 10/12/2010 – 11:20
#643384

Watch that USDX. A break of 76 and gold is headed to 1380-1400.

Login or register to post comments by Shameful
on Tue, 10/12/2010 – 11:47
#643475

What if we see a upswing in the USDX?  Not saying their will be but some other CBs might surge in their own debasement plans.  Seems that even if the USDX goes up, but as a result of bad news elsewhere there would still be safety money moving in to gold.

Login or register to post comments by Turd Ferguson
on Tue, 10/12/2010 – 11:59
#643511

Yep. As the USDX reflects the $ relative to other fiat, the only reason the USDX would rally is due to debasement of other currencies. You might get a very short gold selloff but that’s it.

Login or register to post comments by tom
on Tue, 10/12/2010 – 11:23
#643387

Weber’s very influential, but he’s not exactly the be-all end-all of ECB policy. In fact, lately his comments have been a good guide to what the ECB won’t do.

Login or register to post comments by hedgeless_horseman
on Tue, 10/12/2010 – 11:31
#643390

AWAC: Come in Blackhawk One.

Blackhawk One: This is Blackhawk One, over.

AWAC: Op Theatre is clear of bogies, over.

Blackhawk One:  Roger that.  No bogies.  Clear for USD drop in two, Echo to Whiskey.  Clear fast movers with napalm in four.  Over.

AWAC:  Roger that.  Will relay.  Fast movers with napalm in four.  Over.  Go get ’em, Ben!

Blackhawk One:  Tally ho!

 

Login or register to post comments by firstdivision
on Tue, 10/12/2010 – 11:22
#643391

Who cares about those whacky Europeans, can’t they see we are almost green here in the US today? 

Login or register to post comments by SheepDog-One
on Tue, 10/12/2010 – 11:23
#643398

Bottom line is it cant go on forever as many dreamers have been asserting it can. The money printing/monetization game has a very short lifespan so its not a question of if they stop it but when they stop it…looks like the song is almost over and there are no chairs.

Login or register to post comments by Popo
on Tue, 10/12/2010 – 11:36
#643441

God I hope you’re right.  But if there’s one lesson I’ve learned (painfully, I should add) it’s that these f*ckers can extend the game far longer than you would think.

The song should have been over some time ago… and yet they keep figuring out a new way to keep people dancing just a little bit longer…

 

Login or register to post comments by SheepDog-One
on Tue, 10/12/2010 – 11:41
#643455

The more they extend the inevitable, the worse the inevitable will be. After all, it IS inevitable. All these people here dreaming on clouds of Hopium that countinued printing of trillions out of thin air is just the ‘new normal’ are insane, and certainly very poor students of history. Huff deeply the Hopium clouds, morons.

Login or register to post comments by Calvin Jones an…
on Tue, 10/12/2010 – 11:54
#643500

You’re just restating the old mantra: “Markets can remain irrational a lot longer than you and I can remain solvent.”  Ouch!!  That was Keynes, wasn’t it.

Login or register to post comments by treemagnet
on Tue, 10/12/2010 – 14:45
#644079

reminds me of that saying “the hardest part of riding a tiger is getting off…”

Login or register to post comments by Apostate
on Tue, 10/12/2010 – 11:24
#643399

So, this would give the US a go to depreciate faster?

The ECB has a much trickier situation to navigate than the US does. Inflation on the scale planned by the Fed would break up the EU. On the other hand, austerity and possible default could also cause the EU to break apart.

At the end, there is no way out except for death.

Login or register to post comments by Cognitive Dissonance
on Tue, 10/12/2010 – 11:26
#643404

You mean I gotta go all the way to DC for my fix? Don’t they have like….. branches or something? Christ, my old connection had a drive up window for God sakes and he was just a nickel and dime operation. We’re talking the Fed here.

Hmmm, how’s the hookers there? I mean, since I’ll be in town and all.

Login or register to post comments by Popo
on Tue, 10/12/2010 – 11:38
#643447

The hookers are great.  Unfortunately a quickie will now set you back $100,000 in inflated dollars.

Login or register to post comments by Dagny Taggart
on Tue, 10/12/2010 – 11:43
#643461

Silly me, I thought the Fed operated outta NY – 33 Liberty. You mean there is a distinction? And I believe Bloomberg let the hookers back in.

Login or register to post comments by Eternal Student
on Tue, 10/12/2010 – 12:26
#643595

Don’t worry about the hookers. They’re still running the country.

Login or register to post comments by unwashedmass
on Tue, 10/12/2010 – 11:26
#643407

our stock market is now a complete joke.

bonds are the riskiest game in town

and our money is turning into tissue….

the banks are going to give themselves 144 billion in bonuses this year, while 13% of the population is eating courtesy of food stamps….

for the love of god, someone has to stop Bernanke.

Login or register to post comments by GS is short Gold
on Tue, 10/12/2010 – 11:38
#643446

actually, that number is upto 14% now.

http://american3p.org/establishment-news/14-percent-of-u-s-population-on…

the only thing giving gold a run in it’s parabolic move is the percentage of people on food stamps.

Login or register to post comments by kengland
on Tue, 10/12/2010 – 11:29
#643420

He can say whatever he wants. They will leave it open until they can’t. That goes with the Fed. They aren’t going to telegraph it to you and me.

 

Where the hell is Nick?

Login or register to post comments by furieus
on Tue, 10/12/2010 – 11:30
#643423

It’s all fun and games until the banksters call you up at 5 ’til midnight demanding trillions and threatening the end of western civilization 

Login or register to post comments by SheepDog-One
on Tue, 10/12/2010 – 11:34
#643431

Yep, that call comes pretty quick too, and its always ‘all is well’ right up until that red phone rings. ‘Uh, Mr Bernanke we want $10 trillion dollars or there will be martial law at 6 AM’…that day is coming very soon, could well be before these ‘elections’. Who here actually believes Obama is willingly stepping up for this pimp slapping from the insolent peasantry? I dont believe it goes thru for a second.

Login or register to post comments by Caviar Emptor
on Tue, 10/12/2010 – 11:44
#643465

Just wait till those “puny” Xmas bonuses hit The Street. Then that Hotline Phone will ring at 3AM. “Mr President, we have a problem”. 

Login or register to post comments by Miles Kendig
on Tue, 10/12/2010 – 11:33
#643428

Ya.  Sure.  And Weber has been so on the money so far.  Keep on cryin’ Germany, you’re gonna be monetizing southern Europe and the Benelux for generations…

Login or register to post comments by SheepDog-One
on Tue, 10/12/2010 – 11:35
#643436

Right, everyone just keeps printing trillions quarterly for generations with no problems at all. LOL, I give it 1 month lifespan tops before the Titanic US economy is ass-end up and sliding under the icy waters.

Login or register to post comments by Miles Kendig
on Tue, 10/12/2010 – 14:32
#643692

..the Titanic US economy is ass-end up and sliding under the icy waters.

Haha.  That happened back in ’07 and what Weber is attempting is to stand on everyone else’s shoulders in the vain attempt to reach the surface.  (Un)fortunately, he has lots of bottled O2 (which is why he is wasting so much of it), an arctic survival suit on and he knows Ben and his US Coast Guard helicopter will be along to snatch him up.  Furthermore, Ben could care less about Weber’s weak assed public protestations… 

Germany has capitulated.  That doesn’t stop Weber from wrigglin’ like a fish caught in a dollar trap hoping he and his are tonight’s special at Chez Shalom.

Login or register to post comments by A Man without Q…
on Tue, 10/12/2010 – 11:35
#643433

Bernanke has become Colonel Kurtz.  He’s gone far up the delta and appears to have lost his mind.  The world needs a Captain Willard…

Login or register to post comments by SheepDog-One
on Tue, 10/12/2010 – 11:37
#643442

Excellent post, exactly right! Colonel Kurtz up the river, living in his own little world hes created his own little tyranny- step out of line and your head ends up on a bamboo pike. So who is going to be the delivery boy collecting a bill for the clerk?

Login or register to post comments by rapacious rache…
on Tue, 10/12/2010 – 11:42
#643459

Timmay!!!

Login or register to post comments by Cecil Rhodes
on Tue, 10/12/2010 – 12:22
#643586

the horror!!!

Login or register to post comments by macholatte
on Tue, 10/12/2010 – 14:20
#643962

 

You have to have men who are moral… and at the same time who are able to utilize their primordial instincts to kill without feeling… without passion… without judgment… without judgment! Because it’s judgment that defeats us.

— Kurtz

Login or register to post comments by rapacious rache…
on Tue, 10/12/2010 – 11:41
#643454

“ECB’s Weber says risks from exiting too late from loose policy greater than exiting too early”

Also, why I don’t go to the boat. I always stay too long and lose the entire surface area of my ever expanding ass

Login or register to post comments by SheepDog-One
on Tue, 10/12/2010 – 11:43
#643462

Never get off the fuking boat, goddam right.

Login or register to post comments by NotApplicable
on Tue, 10/12/2010 – 11:43
#643463

While I’m no international banking expert, there’s this thing Greenspan liked to warn us about, cascading cross-defaults, that might tend to limit Weber’s ability to stand off to the side.

My guess is that like always, Maggie Thatcher’s TINA will win the day, and the ECB will continue to play as long as there is still a single chair left for them.

Login or register to post comments by Madhouse
on Tue, 10/12/2010 – 11:46
#643472

They are throwing around trillions on CNBC on speculation of the size of QE2.

It used to be a billion here, a billion there and pretty soon you have a lot of money… now its trillions ?

The absurdity gauge has gone beyond the red area.

 

 

 

 

Login or register to post comments by SheepDog-One
on Tue, 10/12/2010 – 11:53
#643492

The Funkometer is pegged! Yes these CNBS CFR cheerleaders havent been told there will be no Q/E. Let the idiots keep jibber-jabbering, theyll soon be chased thru the streets by mobs with pitchforks. Pitchfork is my term for AK47’s.

Login or register to post comments by web bot
on Tue, 10/12/2010 – 13:41
#643825

Stop calling it trillions. Call it what it really is:

Current End of Year Debt: $13,500,000,000,000,000.00

Unfunded US Gov’t Liability: $23,000,000,000,000,000.00

Global Hedge Market: $625,000,000,000,000,000.00

Ya – look at all of them #uckin zeros… and they way we’re not #ucked.

Login or register to post comments by HarryWanger
on Tue, 10/12/2010 – 11:46
#643473

Where did that Ireland “news” go that excited everyone last night? As I said, more “ifs”, “coulds”, “might”, etc., etc.

Login or register to post comments by traderjoe
on Tue, 10/12/2010 – 12:45
#643653

Just because the MSM buried it, didn’t mean it went away. It’s still there…lurking…

Login or register to post comments by Caviar Emptor
on Tue, 10/12/2010 – 11:48
#643478

Hoenig, Neocon MachoMan, playing the Faux Hawk just to keep the plausible deniability real. 

“Read My Lips: No More QE!” 

Login or register to post comments by sweet ebony diamond
on Tue, 10/12/2010 – 11:48
#643479

Countries in Europe are now contemplating the dual-use 100 year USD bond.

The Italians will be in charge of the design.

Login or register to post comments by SheepDog-One
on Tue, 10/12/2010 – 11:50
#643484

Funny seeing so many who still believe theyre trying to figure out a way to keep it all afloat, repair it, for the benevolent purpose of well-being to the middle class of course…has everyone forgotten the entire point is economic destruction and collapse, and Phoenix up into a nightmarish 1 world govt monarchy? Anyone who actually believes any of these people are on YOUR side need a serious head examination. Theyre just trying to figure out the quickest way to destroy YOU, with as little chance of damage to themselves as possible.

Login or register to post comments by What_Me_Worry
on Tue, 10/12/2010 – 11:53
#643494

ECBs Weber says they will stop their bond buying programme until the second Ireland/Greece/Portugal/Spain try to float a bond into the market.

This whole thing seems to be straight out of the CB playbook.  Have at least one banker talk a big game in opposition to the direction of their own CB to make it appear they are possibly being objective.  The US Fed does this on a monthly basis.  I am guessing they draw straws to see who has to be the good cop.  Poor Weber had a bad draw this month.

Login or register to post comments by SheepDog-One
on Tue, 10/12/2010 – 11:58
#643510

To what end? 

Login or register to post comments by Atomizer
on Tue, 10/12/2010 – 11:56
#643498

Europe’s frameworks for macro-prudential oversight and economic governance. Jean-Claude Trichet

“The study also suggests that the increase in capital requirements, which is part of the Basel III consensus, would indeed significantly reduce the probability of a crisis. Of course, the figures need to be interpreted with caution, but the various models applied in the impact study all suggest that the net social benefits of strengthened regulation can be substantial. They also remind us that, in the long run, growth is only meaningful if it is sustainable.”

Translation: We don’t know what we’re doing.

 http://www.ecb.int/press/key/date/2010/html/sp101012.en.html

Login or register to post comments by Milton Waddams
on Tue, 10/12/2010 – 11:54
#643502

These semi-evolved chimpanzees have to say and do things, otherwise the world may realize they are essentially worthless (good only for churning out academic papers). And when the world acknowledges their worthlessness, that smoking brunette with double d’s and a landing strip will certainly pay them no mind.

Login or register to post comments by sunstreaker
on Tue, 10/12/2010 – 12:04
#643534

If the ECB does not provide liquidity the EU and the Euro will fall apart, and this will never be allowed to happen. Webber may be influential, but he is pitted against the interests of the rest of the ECB and all national and EU politicians. The ECB must provide liquidity. The only alternative for the EU to survive is to turn into a fully fledged command economy very soon.

Login or register to post comments by Dick Darlington
on Tue, 10/12/2010 – 12:13
#643561

This kind of crap from ECB reminds me about the brilliant rate hike they did just before the shtf back in 2008. Let’s see them end the bond buying program and let’s see them mopping the liquidity away. And let’s see them repeat the brilliant hike back in 08. After all that there’s gonna be a lot more currency pairs to trade like drakhma/peseta. Methinks though that Weber has been sitting and smoking in a closed room a few too many hours today and feels annoyed now that he ran out of munchies and that’s why he’s saying those silly things out loud. =)

Login or register to post comments by Martel
on Tue, 10/12/2010 – 12:20
#643568

Oh, those eurofags…. can’t even destroy their currency properly.

Anyway, ECB’s hands are tied. If Uncle Sam just keeps on printing money, sooner or later Helmut in Frankfurt can’t take no more pain. No exports = no money to to run the Brussels kleptocracy.

Login or register to post comments by macholatte
on Tue, 10/12/2010 – 14:23
#643983

You can either surf, or you can fight!

— Kilgore

Login or register to post comments by Amsterdammer
on Tue, 10/12/2010 – 12:32
#643611

W.Münchau is spot on about those madmen at the

ECB:’ Dangers of an early exit’

http://www.eurointelligence.com/index.php?id=581&tx_ttnews%5Btt_news%5D=2920&tx_ttnews%5BbackPid%5D=901&cHash=39b999986f

Login or register to post comments by Lord Peter Pipsqueak
on Tue, 10/12/2010 – 13:36
#643795

Don’t believe any hawkish sounding European/German politicians regarding protecting the people from inflation or refusing to do QE or stressing the importance of withdrawing the stimulus before it causes inflation,they are all lying scumbag bankster puppets.

The ECB is doing QE under the table as opposed to the Fed/Bank of England in yer face version.

Banks control governments,not the other way round.The minute you forget that you’ve lost all sense of reality and will start to to believe that politicins are trying to their best for you and your country. 

Login or register to post comments by macholatte
on Tue, 10/12/2010 – 14:25
#643994

“Give me control of a nation’s money and I care not

who makes the laws.”

— Rothchild

Login or register to post comments by THE DORK OF CORK
on Tue, 10/12/2010 – 14:33
#644001

Did anybody catch the second FT article on the euro crisis today.

What was amazing was a little graph on the bottom right side of the page.

It showed total euro debt since the start of the century

Financial and non financial corporate debt has exploded while household debt has increased substantially.

Meanwhile goverment debt had a slight blip upwards during the financial crisis.

Amazingly the article completly focused on fiscal debt – predictable really

The ECB seems to be completly focused on finishing a money transfer scheme from the formerly sovergin states to the corporate sector by artificially subsidising the banking sector while keeping the illusion of sovereignty by buying the most distressed sovergin debt in small quantities.

This equality between sovergin paper and bank paper is a abomination but will serve the interests of the ECBs clients well has the balance of power between semi – independent states and banks will collapse into a relationship of pure state subsistence based on their banking masters whims.

 

 

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