A Paralyzed Fed Defers Decision On Monetary Policy To Primary Dealers In An Act That Can Only Be Classified As Treason

Tyler Durden's picture Submitted by Tyler Durden on 10/27/2010 23:23 -0500

Bank of AmericaBen BernankeBloomberg NewsBond DealersCapital MarketsCitigroupCredit SuisseDeutsche BankDollar DestructionFederal ReserveGoldman SachsJPMorgan ChaseLloyd BlankfeinMonetary PolicyMorgan StanleyNational DebtNew York FedPurchasing PowerRBC Capital MarketsRBSSystem Open Market AccountTime MagazineWells Fargo

As if there was any doubt before which way the arrow of control, and particularly causality, points in America’s financial system, the following stunner just released from Bloomberg confirms it once and for all. According to Rebecca Christie and Craig Torres, the New York Fed has issued a survey to Primary Dealers, which asksfor suggestions on the size of QE2 as well as the time over which it would be completed. Italso asks firms how often they anticipate the Fed will re-evaluate the program, and to estimate its ultimate size. This is nothing short of a stunning indication of three things: i) that the Fed is most likely completely paralyzed due to the escalating confrontation between the Hawks and the Doves, and that not even Bernanke believes has has sufficient clout to prevent what Time magazine has dubbed a potential opening salvo into a chain of events that could lead to civil war: in effect Bernanke will use the PD’s decision as a trump card to the Hawks and say the market will plunge unless at least this much money is printed, ii) that the Fed is effectively asking the Primary Dealers to act as underwriters on whatever announcement the Fed will come up with, and thus prop the market, and, most importantly, iii) that the PDs will most likely demand the highest possible amount, using Goldman’s $2-4 trillion as a benchmark, and not only frontrun the ultimate issuance knowing full well what the syndicate of 18 will decide in advance of what the final amount will be, but will also ramp stocks on November 3 to make the actual QE announcement seem like a surprise. This also means that the Primary Dealers of America, which include among them such hedge funds as Goldman Sachs, such mortgage frauds as Bank of America, such insolvent foreign banks as Deutsche, RBS, UBS and RBS, and such middle-market excuses for banks as Jefferies, are now in control of US monetary, and as we explain below fiscal, policy.

It also means that the Fed has absolutely no confidence in its actions, and, more importantly, no confidence in how its actions will be perceived by the market which is why it is not only telegraphing its decision to the bankers, but is having its decision be dictated by them, an act so unconstitutional it would be seen as treason in any non-Banana republic! This is the last straw confirming that the only ones left trading the market are the Fed and the PDs, passing hot potatoes to each other, and the HFTs, churning the shit out of everything else to pretend someone is still trading.

And the saddest conclusion is that this is the definitive end of US capital markets: not only is the Fed’s political subordination a moot point, but the Fed, and the middle class’ purchasing power via the imminent dollar destruction that is sure to follow as the PDs seek to obliterate their underwater assets by raging inflation, is now effectively confirmed to be a bitch of Lloyd Blankfein and his posse.

The official explanation for this unprecedented incursion by the banking crime syndicate in US monetary policy is as follows:

Avoiding Disruption

Treasury officials say they want to avoid any disruption to the $8.5 trillion market in U.S. government debt, the world’s most liquid, as the Fed weighs restarting large-scale asset purchases. The Treasury also doesn’t want to give any impression to investors, particularly those based overseas, that it might be coordinating with the Fed to finance the national debt.

“Treasury debt-management decisions are designed to deliver the lowest cost of borrowing over time and are entirely independent from monetary-policy decisions made by the Federal Reserve,” Mary Miller, assistant secretary for financial markets, said in an e-mail to Bloomberg News yesterday. Before joining the Treasury last year, Miller was head of global fixed- income portfolio management at T. Rowe Price Group Inc. in Baltimore.

The Treasury is scheduled to hold its quarterly meetings with bond dealers tomorrow, ahead of the department’s Nov. 3 refunding announcement.

Fill in the blank: the Fed has essentially given PDs the option of $250BN, $500BN or $1 trillion in monetization over six months. It is now absolutely clear that the PDs will pick the biggest number possible… which incidentally amounts to $2 trillion per year, and is precisely what Goldman’s downside case was, as we presented previously.

The New York Fed surveyed primary dealers required to bid in U.S. debt auctions. It asked dealers to estimate changes in nominal and real 10-year Treasury yields “if the purchases were announced and completed over a six-month period.” The amounts dealers can choose from are zero, $250 billion, $500 billion and $1 trillion.

Of course, since a $2 trillion purchase over 1 year means the Fed will have to monetize every single bond issued, the SOMA limit will have to be raised, another prediction we made months ago:

The Fed is unlikely to buy up the entire supply of new securities, although it may adjust its internal guidelines of how much it can hold of any given issue. The Fed limits itself to owning no more than 35 percent of any specific security it holds in its System Open Market Account, or SOMA.

“Our Treasury strategists point out it could also cause pricing distortions along the curve, if, for example, the Fed continues to target a 40 percent purchase concentration in the 6-10 year maturity bucket, as it has in its recent purchases,” analysts at JPMorgan Chase & Co., including Alex Roever, wrote in an Oct. 22 research report. The report predicts the Fed will buy about $250 billion a quarter during the easing campaign.

How about $500 billion?

And, incidentally, since the “independent” Treasury will be forced to issue more debt to fill all the demand for $2 trillion over the next 12 months, as there is not enough debt in the pipeline to fill $2TN worth of demand and prevent the entire curve pancaking at zero (i.e., the 30 year yielding precisely 0.001%) it also means that the government will be forced to come up with more deficit programs, which also means that primary dealers will now also determine US fiscal policy.

Which begs the question, why is anyone pretending that the political vote on November 3 matters at all?

Below are the 18 banks that, in a completely separate vote, will henceforth rule America, regardless of what particular puppets end up in the Congress and Senate:

BNP Paribas Securities Corp.
Banc of America Securities LLC
Barclays Capital Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc.
Goldman, Sachs & Co.
HSBC Securities (USA) Inc.
Jefferies & Company, Inc.
J.P. Morgan Securities LLC
Mizuho Securities USA Inc.
Morgan Stanley & Co. Incorporated
Nomura Securities International, Inc.
RBC Capital Markets Corporation
RBS Securities Inc.
UBS Securities LLC.

 

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by Mercury
on Wed, 10/27/2010 – 23:32
#682440

Wow. Just wow.

Hi, Morgan? It’s Ben, I’m thinking of a number…

Why doesn’t Ben also ask which cusips the PDs would like him to buy too?

Login or register to post comments by Flatchestynerdette
on Wed, 10/27/2010 – 23:47
#682477

i grin at your comment 😉

Login or register to post comments by 66Sexy
on Wed, 10/27/2010 – 23:50
#682487

satan laughing, spreads his wings.

 

howz about, 666 billion… or 6.66 trillion.

Login or register to post comments by tomdub_1024
on Thu, 10/28/2010 – 00:37
#682556

about the 5 min mark…gotta love Ozzie…

Login or register to post comments by theXman
on Thu, 10/28/2010 – 01:10
#682598

Time to give them a bona fide disruption — END THE FED!

Login or register to post comments by scaleindependent
on Thu, 10/28/2010 – 03:07
#682672

**** NEWS UPDATE 11/4/2010 *******

 

THE FED HAS ISSUED A SURVEY TO THE 18 PRIMARY DEALERS, REQUESTING FUTURE AUSTERITY DECREES ON UPCOMING NEW FISCAL YEAR 2011.

THE PRIMARY DEALERS HAVE STIPULATED THE FOLLOWING AUSTERITY MEASURES:

1. 401k’s to be discharged by owner at age 70.

2. Dissolution of Welfare.

3. VA benefits to be cut in half.

4. Grand Canyon National Park to be sold to Las Vegas Sands, Inc.

5. Medicare rates to physicians, hospitals and health care workers to be cut by 35%

6. No payed sick leave.

7. No maternity leave.

8. The dissolution of the following US govt. services;  EPA, secretary of health and human services, Education, Veterans Affairs.

9. Pentagon budget to increase by 30%

10. National Guard budget to increase by 100% in urban areas to protect the peace.

11. The SCOTUS will hereby be named the MTOTUS.

12. Free Ipod Shuffle to all Americans!

 

13. Fill in the blank…

 

Login or register to post comments by goldfish1
on Thu, 10/28/2010 – 03:22
#682691

13. A Tyson breaded GMO “chicken” fillet in every pot.

Login or register to post comments by iconoclast63
on Thu, 10/28/2010 – 02:02
#682633

“If you choose not to decide, you still have made a choice.”

Login or register to post comments by deKevelioc
on Thu, 10/28/2010 – 03:10
#682677

Money for nothing and the chicks are free.

 

Login or register to post comments by deKevelioc
on Thu, 10/28/2010 – 03:11
#682682

Money for nothing and the chicks are free.

Login or register to post comments by joe.schmuck
on Wed, 10/27/2010 – 23:31
#682441

Thomas Jefferson is spinning in his grave, sigh.

Login or register to post comments by flaunt
on Wed, 10/27/2010 – 23:45
#682472

Finally got my zerohedge account approved!  Yay!

What I really wanted to say was I don’t think TJ or any of the founders would be at all surprised were they alive today.  They wrote about what would inevitably happen while they were still breathing.  No, if you woke them out of their sleepy graves and told them what was happening they’d say, “what the hell did you expect,” roll over, and go back to sleep.

 

Login or register to post comments by Howard_Beale
on Wed, 10/27/2010 – 23:57
#682496

It’s not like this is the first time this has happened. Good read: 13 Bankers

Login or register to post comments by Unlawful Justice
on Thu, 10/28/2010 – 00:04
#682512

I concur.

Login or register to post comments by Charlie Bravo
on Wed, 10/27/2010 – 23:31
#682443

Uh oh.

Charlie Bravo

Login or register to post comments by The LD
on Thu, 10/28/2010 – 00:05
#682514

Banana Republic…Confirmed!

Login or register to post comments by ebworthen
on Wed, 10/27/2010 – 23:32
#682445

If only, if only, the masses, the sheeple, would know the truth.

Login or register to post comments by Chito Campo
on Wed, 10/27/2010 – 23:41
#682462

All that we see or seem is but a dream within a dream.

Login or register to post comments by goldfish1
on Thu, 10/28/2010 – 03:23
#682694

And what would “the people” of limited intelligence and education, do with “the truth”?

Login or register to post comments by Cognitive Dissonance
on Thu, 10/28/2010 – 03:49
#682710

What are “we” here on ZH doing with the truth?

Login or register to post comments by thermroc
on Wed, 10/27/2010 – 23:35
#682450

I think the keystone just crumbled.

Login or register to post comments by Hook Line and S…
on Thu, 10/28/2010 – 00:22
#682535

Yes, but the Guidestone is still intact.

Login or register to post comments by potatomafia
on Wed, 10/27/2010 – 23:37
#682452

Well Fuck, this cant be good, can it?

Login or register to post comments by TheGreatPonzi
on Wed, 10/27/2010 – 23:41
#682456

It’s cool to be a banker. A few trillions here, a few trillions there. Directly in your pockets. When the final collapse comes, you flew to your private island in an helicopter with two bodyguards.

Impossible to go bankrupt. You can only win.

This is reality. This is the 2010 America. Face it.

Login or register to post comments by Trifecta Man
on Wed, 10/27/2010 – 23:40
#682461

Demonstrate!

Login or register to post comments by Flatchestynerdette
on Wed, 10/27/2010 – 23:45
#682473

against who? they’ve left the country on their private jets or are on their private islands. Maybe we can all go to the Hamptons or Connecticut or NJ if you’re on the east coast and to Bill Gross’s house if you’re on the west coast.

 

Login or register to post comments by Trifecta Man
on Thu, 10/28/2010 – 00:35
#682553

The Fed.

Login or register to post comments by tomdub_1024
on Thu, 10/28/2010 – 01:20
#682606

dedicated to Ben and Timmay:

(the best party band of the Twin Cities)

Login or register to post comments by Flatchestynerdette
on Wed, 10/27/2010 – 23:42
#682464

I was wondering why China came out and 1) said that it might go more GLD than $ and 2) that printing $ was inflationary to the world – ie them and causing ‘them’ harm with their economy.

*

Then I see the Helicopter Ben wants to do a mini QE2 – like small yachts named titanic1 titanic2 titanic3 – over time as it were

*

now we have the final piece of the story – Ben can see China from his window and its not looking very neighborly anymore in wanting to buy our shit exports – literally as well as financial and that could leave us up the creek.

Screwed. We are so screwed.

Login or register to post comments by Mr Lennon Hendrix
on Wed, 10/27/2010 – 23:42
#682465

“Bennie, Bennie, Bennie, oh Bennie and the Jets…..Behnie, Behnie, Behnie, oh Behnie and the jets..jets…Behnie Behnie Behnie and the jets Bennie Bennie Bennie oh Behnie and the jets…Behnie Behnie, Behnie Behnie, Behnie Behnie…and the jets…”

Elton John – Benny and the Jets:

Login or register to post comments by Spalding_Smailes
on Wed, 10/27/2010 – 23:47
#682479

Battle for Senate
http://www.realclearpolitics.com/epolls/2010/senate/2010_elections_senate_map.html

Battle for House –
http://www.realclearpolitics.com/epolls/2010/house/2010_elections_house_map.html

Login or register to post comments by cossack55
on Thu, 10/28/2010 – 00:03
#682509

Battle for America

http://www.turdinthetoilet.com/politiciansarescum/fatlazystupidcitizens.

Login or register to post comments by goldfish1
on Thu, 10/28/2010 – 03:25
#682697

Battle? Only the illusion of battle. One word: Diebold.

Login or register to post comments by Miles Kendig
on Thu, 10/28/2010 – 00:36
#682466

The key here is that substituting “inflation targets” for “price stability” will be the blank check Ben has been waiting for. The numbers announced really won’t matter for anything other than to give fodder to various Gerbervores and their lemmings

Fact remains that as this drags on all pretense is falling away. We are now getting a real and rare treat into how both parties are getting their; “Honey, I didn’t forget the lube this time” moment of appeasement.

Big Boy Letters indeed.  ROFLMAO  Just wait until all of this happy crappy gets shoveled onto those even greater fools, the so called sophisticated investors.  Oh man, this is gonna be nearly as good as running a sprinkler test while the fed and the pd’s try and tell us the pool on the roof must have a leak

Login or register to post comments by nuinut
on Thu, 10/28/2010 – 00:38
#682558

all pretense is falling away

all pretense is falling away

all pretense is falling away

 It’s been comin’ for a long time, but it sure does feel weird all the same.

Login or register to post comments by Sean7k
on Wed, 10/27/2010 – 23:44
#682469

Well, why even pretend we are a nation of laws? Why pretend our government has anything to say about how we are ruled? Why pretend that the Constitution has meaning? Why pretend to support a nation run by banks, for banks and to their ultimate elevation as overlords of the people?

Just say no to Federal Reserve Notes. 

Login or register to post comments by 66Sexy
on Thu, 10/28/2010 – 00:02
#682504

the law is gone… there IS no law, but common.

Login or register to post comments by midtowng
on Thu, 10/28/2010 – 01:36
#682620

Why pretend? It’s obvious. Without the pretense of laws and elections the people might actually do something to disrupt the status quo.

Bread and circuses brother.

Login or register to post comments by Cognitive Dissonance
on Thu, 10/28/2010 – 03:52
#682712

The act of pretending is the “Big Lie”.

Login or register to post comments by StychoKiller
on Thu, 10/28/2010 – 02:27
#682649

Just when ya think that the times could NOT go any lower:

The Balrog appears “like a great shadow, in the middle of which was a dark form, of man-shape maybe, yet greater”.

Login or register to post comments by Pondmaster
on Thu, 10/28/2010 – 03:23
#682692

Pretty much describes our current Political leadership, The Fed , the Banksters   … and you and me . In men there is NO HOPE . None !!

Romans 3:10-18

As it is written, There is none righteous, no, not one: There is none that understandeth, there is none that seeketh after God. They are all gone out of the way, they are together become unprofitable; there is none that doeth good, no, not one. Their throat is an open sepulchre; with their tongues they have used deceit; the poison of asps is under their lips: Whose mouth is full of cursing and bitterness:Their feet are swift to shed blood: Destruction and misery are in their ways: And the way of peace have they not known: There is no fear of God before their eyes.

Login or register to post comments by poor fella
on Wed, 10/27/2010 – 23:54
#682476

Soon ‘whatever particular puppets end up in Congress’ will be decided by money flows into TBTF banks and PDs who can hide said money in campaign contributions and purchase The Invisible Hand. How much would ‘The American Way of Life’ will go for at auction and what kind of yield should be expected?

Do the books, “How to Become a Canadian Anchor Baby” or “Mexican Ganglordship 101” exist?

Login or register to post comments by flaunt
on Wed, 10/27/2010 – 23:47
#682478

Isn’t this a bit like asking children how many cookies they anticpate eating, and how many they expect their mother to bake for them?

Login or register to post comments by moofph
on Wed, 10/27/2010 – 23:48
#682480

…something tells me when they role the dice, it’s gonna come up snake eyes.

Login or register to post comments by gigeze787
on Wed, 10/27/2010 – 23:48
#682482

The Fed surveying their “clients” for guidance on QE2 is nothing more than Mussolini’s version of fascism:

“Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power.”

Impeach/Fire Bernanke.

Now.

Login or register to post comments by A Man without Q…
on Thu, 10/28/2010 – 02:41
#682658

What you say is correct and people should pay far more attention to this. I would recommend a book by Adam Tooze, called “The Wages of Destruction”.  The way the Nazi war machine was used in order to benefit the demands of the manufacturers pushed forward the war agenda when it became obvious that they needed to start using the materials created or the factories would become idle.  I have always believed that a factor in the way the first Gulf conflict played out was the need for the US military to clear stock that had been gathering dust since Vietnam, so they had an excuse to order shiny new stuff.

When we have a situation where many of the PDs are implicated in a massive fraud against borrowers, investors and state governments, and the Fed thinks it is ok to trust them to honestly answer how much money to print for the sake of the economy – it tells me the situation is more fucked up that even I imagine.  It’s the last gasp of a dying regime.

 

http://www.amazon.com/Wages-Destruction-Making-Breaking-Economy/dp/07139…

Login or register to post comments by tony bonn
on Wed, 10/27/2010 – 23:49
#682483

when i thought i had seen and imagined it all them comes this, and treason is too kind of a word for the treachery so documented.

and now we know why the great apostle advised, owe no man nothing.

“and say the market will plunge unless at least this much money is printed”

good – let it plunge bitch.

fuck bernankrupt. fuck the fed. and fuck gross. he knows on which side his bread is buttered.

Login or register to post comments by RobotTrader
on Wed, 10/27/2010 – 23:50
#682484

Any wonder why luxury goods sales are going through the roof?

PigMen are making absolute fortunes.

Never before has it been so easy for them.

Login or register to post comments by Burnbright
on Thu, 10/28/2010 – 00:06
#682517

I suppose you are just enjoying the ride before it becomes a blazing inferno?

Login or register to post comments by Caviar Emptor
on Thu, 10/28/2010 – 01:17
#682604

Risk free

Login or register to post comments by iconoclast63
on Thu, 10/28/2010 – 02:14
#682640

A careful study of the Weimar Republic demonstrates many similarities to what’s happening in the U.S. right now. The big capitalists howled at the notion that the Reichsbank should stop printing money. The stock market volume shot through the roof. The surplus currency in the system found more and more non-productive outlets like stock gambling and mergers and acquisitions, building factories that built nothing but parts used in the building of factories, etc …

The excess money, once printed and released into the system, had to find a place to live once the legitimate productive uses for it ran dry.

This is the role of the pig-fuckers (ahem, I simply could not call them “men”, sorry) on Wall St.

I fear the outcome will be the same.

Login or register to post comments by Pondmaster
on Thu, 10/28/2010 – 03:31
#682700

Dictatorship ,war,  subservience , poverty , starvation , death .

This is what these men utlimately offer us . And we play their market games hoping for crumbs that fall from their tables .

Login or register to post comments by RecklessMonkeys
on Wed, 10/27/2010 – 23:50
#682485

I’m still thinking that it will not be a bazooka, although maybe they’ll front load it in the earlier months. There’s nothing stopping them doing it again in six months, a la boiled frog.

As you say, Bernanke and the banks will gang up on the hawks with the threat of a crash if they don’t get something. The MSM has been on about 500 billion, which was my guess, but since they’re probably setting low expectations, I’m going for a trillion now.

 

 

 

Login or register to post comments by poor fella
on Wed, 10/27/2010 – 23:59
#682499

The question is, will the public hear the ‘T’ word and finally wonder what the s*CKityF#cka&&*)(*Cbicklikn is going on?

Login or register to post comments by Flatchestynerdette
on Thu, 10/28/2010 – 00:01
#682501

I’m to bed but I could have sworn that Helicopter Ben’s main selling point in his confirmation hearings was that he had written ALL about the depression and KNEW what to do to prevent one from EVER happening. Seems his dissertation and real life are vastly different animals but then again, whenever ‘theory’ his the road of life it falls away to reveal reality. Funny how now in hindsight I think that we should have just let LTCM fail in the late 90s. That was the first of its kind and set the stage for later hand outs.

 

42,000 factories lost in America since the 4th Q of 1999 through 2nd Q 2010. Average number of workers in each of these factories? 500. What are we selling to China? Paper – waste and treasuries (also waste).

 

What happens if they start selling or stop buying as it seems Ben has figured out they are doing? You get a Fed that goes to PDs and begs.

Login or register to post comments by Rogerwilco
on Thu, 10/28/2010 – 00:01
#682503

It’s a creepy revelation, like the scene in the 1960’s film Spartacus, where Laurence Olivier (Bernanke) tells Tony Curtis (Geithner) that some men like snails (QE) and some like oysters (a strong USD), but he likes snails and oysters. So he inquires of Tony, does Tony like snails? Or is he more into oysters? And wouldn’t he like to try some snails, just to see what it’s like…and if Tony still has doubts, look at all my friends on this PD list, why they like snails too!

Login or register to post comments by lemonobrien
on Thu, 10/28/2010 – 01:02
#682588

that’s a homosexuality/bisexual reference.

Login or register to post comments by TexasCapitalism
on Thu, 10/28/2010 – 00:04
#682511

Wells Fargo is not a PD.

Login or register to post comments by LeBalance
on Thu, 10/28/2010 – 00:05
#682513

With all of the historic precedence, some folks here were still calling for a low-ball QE2.  Even now, this hilarious article floats a low-ball high number, just to prepare the field for the true high ball number.

This is still peanuts.

Wait for it…..

Login or register to post comments by TheGreatPonzi
on Thu, 10/28/2010 – 00:10
#682521

Over 10 trillion?

Login or register to post comments by nuinut
on Thu, 10/28/2010 – 00:40
#682563

Infinity, ultimately.

 

Login or register to post comments by trav7777
on Thu, 10/28/2010 – 00:08
#682518

what part of “credit must grow” are you cretins freakin struggling with?  GFD is Douchinger running this site too???

I had this argument 2 years ago where I predicted that if private credit origination did not pick up that the government would take up the baton and MAKE you borrow.

There’s no way out of this math, the credit system must grow or else.  The Fed has no choice but to print the coupon and force the origination.

No, the economy won’t recover, oil has peaked.  It won’t really gd matter what the Fed does.  Just accept that and move on.  Pigmen will sit at trough-head and continue to buy Ferraris.  The banks own the Fed anyhow; they are the shareholders.

Login or register to post comments by wake the roach
on Thu, 10/28/2010 – 03:12
#682684

Yep… There is no possible way to win this game we call industrial civilization. A monetary profit system (irrespective of credit) requires infinite growth in the supply of energy into the ever cooling “warmer body” (the worker/consumer) from which a monetary (energy) profit is extracted. In order to maintain the required energy imbalance (think temperature) needed to allow the energy (monetary) transfer to the cooler body (owner of production) in a profit system of exchange. Unfortunately, this means infinite growth in the supply of energy to the system. We do this with the ever increasing production/consumption/waste of goods and services for which this energy is embodied… Unless energy supply (and the resources we shape with this energy for the production of goods of trade value) can grow infinitely, or the rate of efficiency at which we use each unit of energy increases infinitely (both impossible), the system must return to equilibrium. Entropy always wins. Unfortunately for mankind, we will only learn this most fundamenetal universal economics lesson the hard way. Good luck to you all.

Login or register to post comments by ElvisDog
on Thu, 10/28/2010 – 00:10
#682519

Sorry, I’m not buying it. If they try $2T a year, the wheels come flying off immediately, not in 2014 or 2020 but immediately. There is no way TPTB can manage or control the economic distortions that will ensue if that level of monetization is attempted. Bernanke would quite probably literally be signing his death certificate (In the French Revolution, the tax collectors were the first ones to be strung up by the mob).

Login or register to post comments by skyr191
on Thu, 10/28/2010 – 00:10
#682520

Durden for Prez, Bitchez.

Login or register to post comments by Problem Is
on Thu, 10/28/2010 – 00:16
#682522

“events that could lead to civil war: in effect Bernanke will use the PD’s decision as a trump card…”

Lessons taught but never learned
All around us anger burns,
Rig the markets by HFT,
Long ago front running was plain to see.

For they marched up to Bastille day,
La guillotine claimed  her bloody prize,
Hear the echoes of the fraudsters,
Power isn’t all that money buys.

Login or register to post comments by ebworthen
on Thu, 10/28/2010 – 00:24
#682539

Yes, the heads of the banksters need to roll to restore balance.

Login or register to post comments by Bananamerican
on Thu, 10/28/2010 – 02:04
#682634

Lord Acton: The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.

Login or register to post comments by chet
on Thu, 10/28/2010 – 00:13
#682524

Fucking shit.

Login or register to post comments by gigeze787
on Thu, 10/28/2010 – 00:15
#682525

‘A banana republic of the banks, by the banks and for the banks.’

Login or register to post comments by gloomboomdoom
on Thu, 10/28/2010 – 00:16
#682527

Honestly (No joking here) why is everyone so doomy?

I know you all are mad about not being able to sit around all day long and collect interest off your millions. But many of us live hand to mouth.

Your Tea Party will gain influence, for certain, but any attempt at Austerity will throw any political party or movement off the face of the earth for at least a century.

These people in Washington are not going to change a thing, I promise. They are going because they want to be career politicians and live the rock star life. *junk*

Login or register to post comments by frankTHE COIN
on Thu, 10/28/2010 – 00:17
#682529

I’m speechless.

Login or register to post comments by Charlie Bravo
on Thu, 10/28/2010 – 00:19
#682533

Ditto.

Charlie Bravo

Login or register to post comments by Hook Line and S…
on Thu, 10/28/2010 – 00:17
#682530

Pinata was broken before the party began. The sweet smell of SDR’s in all our pockets is at hand. Game over man! And a new one begins.

Login or register to post comments by nuinut
on Thu, 10/28/2010 – 00:43
#682566

 The sweet smell of SDR’s in all our pockets is at hand

Not if the rest of the world has anything to do with it.

Login or register to post comments by Pondmaster
on Thu, 10/28/2010 – 03:45
#682707

If everything turns to shit economically and monetarily world wide , the world will BEG for an answer , and plea for One world currency and One World leader . Coming to a nation near you . Admission – Your life and soul . 

Login or register to post comments by poor fella
on Thu, 10/28/2010 – 00:35
#682540

Ben: So, I asked you here to discuss your ideas on the size of QE 2 of X.

BNP Paribas Securities Corp. – We’re in whatever camp Goldman is in, they seem to always have a good feeling about these things (*wink*).

Banc of America Securities LLC – We don’t have a problem going with the majority.

Barclays C – Uh, what were you thinking?

Cantor Fitzgerald & Co. – Yeah, any ballpark figure to work with, or can we just throw anything out there?

Citigroup Global Markets Inc. – We’re good with anything, we don’t expect to be together much longer but a good final pufff under our ‘chutes is always appreciated.

Credit Suisse Securities (USA) LLC – Are you talking ‘DOLLARS’?

Daiwa Capital Markets America Inc. – As long as we can get our house in order first, we’re good.

Deutsche Bank Securities Inc. – Two Hundred and Fifty BILLLION Dollars? Remember, Benjamin, we still make a few things!

Goldman, Sachs & Co. – Call Hank! NOW

HSBC Securities (USA) Inc. – 3 trillion couldn’t hurt. Could it?

Jefferies & Company, Inc. – 4 TRILLION!

J.P. Morgan Securities LLC –  6 TRILLIONators!!

Mizuho Securities USA Inc. – Jamie jamie, if we put that amount in the computers, they will break.

Morgan Stanley & Co. Incorporated – “TOTALLY AWESOME!!”

Nomura Securities International, Inc. – Eeeeerigoshinon agopeey beddirashagadanonn!!!! Hari Kari-anan!!

RBS Securities Inc. – Ok, picture if during the announcement we could bring in the bagpipers! Woot – there it is! This WILL BE a world event – we’ll all come out together, hand in hand, with a new slogan our marketing team has come up with, “Yes, WE CAN”.

RBC Capital Markets Corporation – meh?

UBS Securities LLC. – Fuck it – 100 Trillion!! It’s a no brainer – you gotta surprise ’em, go wayyy out there. It’s time Ben – let it be your time – let it be our time.

Login or register to post comments by The Axe
on Thu, 10/28/2010 – 00:30
#682545

Holyshit!!! This is the last straw of a system that is so broke, so taunted, so corrupt, that I want to scream at my Bloomberg terminal!A fucking survey,,that is how they think about making monetary policy…Christ ! And of course they ask all the PD?? They certainly didn’t ask all the retirees in America before they bury interest rates from 4% to 0.5%  Live on that assholes.!! I hope the questionaire included potential bonus information, I wouldn’t want to upset anyone at Goldman Saches!!! 

Login or register to post comments by trav7777
on Thu, 10/28/2010 – 00:53
#682577

WTF?

There is NOWHERE to put the money to work paying a freaking 6% return!

Money in the bank doesn’t MAKE money by fuckin magic, dude.  There’s no ENTITLEMENT to a nice fat coupon with no risk.

This notion that money can do work and just grow by the magic of interest compounding is what needs to go.  There’s no demand to borrow at rates higher than the Fed is offering – THAT IS WHY they had to drop rates!

Money in the bank is a LOAN to the bank!  If they cannot reliably get 5% return on it, how the hell would anyone expect them to PAY that?

Login or register to post comments by lizzy36
on Thu, 10/28/2010 – 00:30
#682546

I should be shocked.

Alas, at this point the only shocking thing would be if they didn’t defer to the Primary Dealers to make both fiscal and monetary policy.

Ben doesn’t have to ask the PD which cusips they want him to buy, because the answer is: all of them.

Login or register to post comments by TheGreatPonzi
on Thu, 10/28/2010 – 00:34
#682552

Incidentally, it also proves that the FED knows QE doesn’t work and can’t work. Either QE is a serious, scientific thing, and then you should be able to determine yourself the amount needed, either it is a fraud.

Login or register to post comments by Burnbright
on Thu, 10/28/2010 – 00:38
#682560

Yep, it’s a “how much do you want before the music stops?” kind of question.

Login or register to post comments by wisefool
on Thu, 10/28/2010 – 00:39
#682559

These banks — knowing that they had the GSE’s, the Treasury — and yes the Fed — to back them up offered Americans a “Pick your payment plan”.

Why wouldn’t American Civil Servants offer them the obverse?

We are all taxpayers now.

Login or register to post comments by The Grifter
on Thu, 10/28/2010 – 00:39
#682561

Yeah well this shows what we already know, the fool Bernanke has no clue on how to solve any problem, even the one he studied for years in hindsight getting his Phd, the Depression.  When in doubt you have to do what is morally and logically right, instead of following the crack addicts on Wall St.  The Fed has been floating trial balloons for 2 months now through mouthpieces like the dumbass Bullard and the only answer that will be accepted by the criminals that run Wall St is more printing, more money, else all goes down.  

So the answer is the Fed will print whatever it takes to keep their masters happy, they have absolutely zero idea on how to make a decision, or worse yet the consequences of any decision they make.  Bernanke needs to be removed now, he is a loose cannon gone 4th order playing the role of world’s largest day trader, probably maxed out on his Prozac and Ritalin prescriptions so he can dress in the morning and tolerate the pressure. 

We need an adult with moral conscience put in charge – unfortunately that won’t happen as long as our political leaders fail to call out the fraud, thus we will continue to see debasement of the currency and destruction of middle class America until we no longer allow it to continue.

 

Peace out brothers

 

Login or register to post comments by poor fella
on Thu, 10/28/2010 – 00:57
#682579

WhatEVER!! HOW DO WE TRADE IT!??!?

With a HELOC, and this breaking news, I am SOOOOooo CLOSE to quiting my part time job bitches!! Applebee’s for LIFE!!

Login or register to post comments by jomama
on Thu, 10/28/2010 – 00:40
#682562

plain as day for everyone to see.

Login or register to post comments by UGrev
on Thu, 10/28/2010 – 00:43
#682568

Is it time to call in Trogdor yet?

Login or register to post comments by The Grifter
on Thu, 10/28/2010 – 00:56
#682580

I swear when I first read this piece Wells Fargo was called out as the biggest frad of all.  What happened – old Warren call you up and make an edit?

Login or register to post comments by gs_runsthiscountry
on Thu, 10/28/2010 – 01:13
#682601

http://www.newyorkfed.org/markets/pridealers_current.html

Login or register to post comments by dcb
on Thu, 10/28/2010 – 00:57
#682582

the fed is a private bank, it is doing what its shareholders want. like any good company

Login or register to post comments by Buttcathead
on Thu, 10/28/2010 – 00:59
#682584

Man O Man, the riots are going to go ape shit. 

Login or register to post comments by merehuman
on Thu, 10/28/2010 – 00:59
#682586

Never saw it coming, those arent my footprints!

Login or register to post comments by Tic tock
on Thu, 10/28/2010 – 01:02
#682589

What does a bank have to do to get fucked in this city?

Login or register to post comments by ThreeTrees
on Thu, 10/28/2010 – 01:03
#682591

Incredible.

Login or register to post comments by BGO
on Thu, 10/28/2010 – 01:06
#682592

The (evil) genius behind the Fed’s plan is the fact that they keeping making their actions more and more complex for the average American stooge to understand. The MSM is clearly too fucking stupid to understand much less report on the Fed’s chicanery. The truly sad part is, there are genuinely intelligent people out there who have absolutely no idea what is going on in their own government. When they finally start to figure some shit out, it will be way too late to do anything meaningful. They will wake up one day, and it will all be over. I’ve seen numerous references here and other places to some “lone nut” firing the first shot that causes people to finally wake up. Can’t happen soon enough.

Login or register to post comments by tomdub_1024
on Thu, 10/28/2010 – 01:25
#682607

purposeful double post:

dedicated to Ben and Timmay:

(the best party band of the Twin Cities)

Login or register to post comments by iconoclast63
on Thu, 10/28/2010 – 02:34
#682651

You said, “The truly sad part is, there are genuinely intelligent people out there who have absolutely no idea what is going on in their own government.”

The FED is NOT the government, it’s a privately owned banking cartel. I emailed the NY FED and asked for a copy of their original charter, what I recieved documented that the 3 largest shareholders at it’s inception were Chase Bank, National City Bank and Goldman Sachs.

The FIRST thing the people need to know is that the government is nothing but a hand maiden to the FED.

Login or register to post comments by Central Wanker
on Thu, 10/28/2010 – 01:11
#682597

Why doesn’t anybody ask me: “How much money do you need for retirement?”

Login or register to post comments by nuinut
on Thu, 10/28/2010 – 03:35
#682701

Because you’d expect them to keep a straight face.

Login or register to post comments by gs_runsthiscountry
on Thu, 10/28/2010 – 01:16
#682599

.

Login or register to post comments by skyr191
on Thu, 10/28/2010 – 01:13
#682602

2012 coming true!?

get religious, bitchez.

 

 

Login or register to post comments by Central Wanker
on Thu, 10/28/2010 – 01:16
#682603

PIMCO is not on the list of those 18 masters of the universe.

No wonder why Mr. Gross is so mad.

Login or register to post comments by dhussey
on Thu, 10/28/2010 – 01:19
#682605

I really don’t get most peoples reactions here… I guess most people forgot it’s called survival of the fittest for a reason. 1) Capitalism- deal with it bitches… Play the game, there WILL be a winner and a looser… I have already figured out where the upper hand is 😉 have you? 2) As our increasingly socialist government continues to weaken itself- can you REALLY be surprised the sharks smell blood and are going in for the kill!? For f@^$ sake, some People have to wake up and realize where true power is… The Romans built the colosseum for 1 purpose… Control- own the mob and you own the world… Get ready cause it’s about to get ineresting!

Login or register to post comments by zelter
on Thu, 10/28/2010 – 01:52
#682626

What is interesting is your furtive admiration of those who cause us harm. In my book, people like you deserve the guillotine, too.

Login or register to post comments by dhussey
on Thu, 10/28/2010 – 02:18
#682645

I really really don’t want to sound like a dick- but it’s sounds to me you were the kid picked last on the playground.

Honestly- can we all get real here? Most of us are traders right? In our game there is a winner and a looser- if your not slaughtering the pig, chances are your next on the chopping block… I am LOVING watching big government get it’s own shit being sold back to them for a premium! Ahhh the free market AT IT’S FINEST!

Welcome to the next level of Darwinism… Evolution is a bloody, horrible, and possibly masicistic game- even Rome purged itself, and who’s to say WE are above the laws of nature?

Sp no- I dontadmire them for givin th US taxpayer the proverbial horizontal hokey pokey- and giving us all a sore butt… However I am not afraid to call it like I see it and Respect institutions like GS for just being that much better than the rest of us at this game…

You ever play monopoly

Login or register to post comments by zelter
on Thu, 10/28/2010 – 02:38
#682656

Well, just riddle me this: how is GS better than us in a way that should earn them respect? I’m sorry for being born a Gentile, but I’ve never had a fighting chance of being better than them at their game as long as I’m not allowed to play. It’s not something I could conceivably ‘win’ at, nor you, nor anyone else here.

Login or register to post comments by dhussey
on Thu, 10/28/2010 – 02:46
#682660

And you just hit it out of the park! Now your getting it!

Seriously tho- you just hit the nail on the head- it’s THEIR game THEY wrote the rules, THEY WON BEFORE IT EVEN BEGAN and to believe otherwise is foolish… So play the game- there is nothing you can really do that would make any difference! Let the deck of cards fall and be sure to be on the next kings good side 😉

Login or register to post comments by CD
on Thu, 10/28/2010 – 03:44
#682704

What an incredibly uplifting a message. Just out of curiosity, most days how DO you ever get the shoeshine off your tongue, though?

Login or register to post comments by iconoclast63
on Thu, 10/28/2010 – 02:38
#682655

So morality and rule of law are ultimately meaningless. It’s kill or be killed. REALLY? That is the world you want to live in?

Login or register to post comments by dhussey
on Thu, 10/28/2010 – 03:16
#682686

No it’s not- but last I checked the 900 million year old game of life isn’t exactly a bed of roses… Yes I personally still hang onto the glimmer of hope of a utopian world too- and hell maybe we will figure it out… But as long as there are sharks swimming in these waters, I am not willing to wager someone will not get eaten. If history is going to continue it’s vengeful and power hungry ways- we will continue to see man struggle and fight to be on top… And when the stakes get high enough, yes, it’s kill or be killed: see WWII, WWI, Civil war, American revolution… Etc… Etc… Of course that’s the literal translation- the very G rated approach is in the free market- every trade has two sides – and only one can be right… The only real thing we can do is play the game- and IMO the only Peaceful solution is to suck it up and make some babies to get the real estate market bid again< cause apparenty that's what the FED is betting on. Unless we actually start a revolution 99% of all attempst to make change happen will only be met with more smoke and mirrors tricks (from the true seats of power) to keep the 99.99% of ignorant Americans (not those that are here and actually see the problems) mislead and utterly confused… Go ask someone on main street USA what a credit default swap is and you will be met with a blank stare followed by a comment on what snookie did last night on jersey shore… I guess what I am trying to say is, I don't know if I believe that Americans really have balls or the brains anymore to get any real
Change to happen. That would require us to beat the fools at GS at their own game… Rant over! Btw loving these posts lol- I live a good argument

Login or register to post comments by EZYJET PILOT
on Thu, 10/28/2010 – 01:29
#682611

Sorry to ask a stupid question, I’m not in finance as my handle suggests, but will the Fed use this “money” to purchase MBS from the banks, or will it be treasuries as in POMO?

Login or register to post comments by scaleindependent
on Thu, 10/28/2010 – 03:20
#682690

2 trillion gives you a lot of room to maneuver.

With that kind of money they will buy MBS, CMBS, CDS, Treasuries (7 , 10, 30 year), TIPS, Ferraris, hookers, cocaine, lots of transvestite porn, more judges, more regulators. I did not mention COiTUs or POTUS because they have bought that long ago. That much money might even let them buy the SCOTUS.

Login or register to post comments by What_Me_Worry
on Thu, 10/28/2010 – 01:33
#682618

Well written, as always, Mr. Durden.  It’s a shame only the chosen few who venture to this site will get to see this take on the news.  I can’t wait to see how CNBC spins this into great news.  I’m guessing two random monkeys in suits, the pro saying we need $5T+ and the con saying we must be conservative and keep it under $3T or so.

It’s like asking the person robbing you exactly how much they would like you to give them.

I just loaned a million dollars to myself right now.  For some reason, I am not a million dollars richer.  No worries on the interest I charge myself, I can just roll that every year.

Login or register to post comments by exhopiumaddict
on Thu, 10/28/2010 – 01:37
#682621

The masses will only understand when they can’t afford to buy hopium anymore.

The withdrawals will be ugly.

Until then, buy gold!

Login or register to post comments by dhussey
on Thu, 10/28/2010 – 02:01
#682632

The masses are dumber than a box o rocks… They will forget this ever happened before they stop buying “hopium”… This has happens dozens no hundreds of times in history- your either a king or a pawn.

Either way- buy gold lol

Login or register to post comments by e_goldstein
on Thu, 10/28/2010 – 01:47
#682624

i really wish the aaron burr society would become more, well, proactive…

 

http://www.aaronburrsociety.org/aaron_burr_society_home.html

Login or register to post comments by Cheeky Bastard
on Thu, 10/28/2010 – 01:56
#682630

After reading the comments; all I can say is:

 

MY FUCKING GOD, I MISSED YOU GUYS !!!

Login or register to post comments by MurderNeverWasLove
on Thu, 10/28/2010 – 02:19
#682644

No way!  It’s the Cheek!

Login or register to post comments by yabs
on Thu, 10/28/2010 – 02:13
#682638

sorry but this cannot be allowed to happen

Please all of you in America start an end the FED movement

thats all it need be no tea partu that can be hijacked just one Agenda

END THE FED

everyone needs to stand outside liberty street and shout these words with a pic of Bernanke in an ornage jumpsuit or a noose around his neck

Please do it now

Login or register to post comments by MurderNeverWasLove
on Thu, 10/28/2010 – 02:17
#682642

.

Login or register to post comments by plocequ1
on Thu, 10/28/2010 – 02:22
#682646

What happens when  the DXY hits Zero?

Login or register to post comments by alexwest
on Thu, 10/28/2010 – 02:23
#682647

#sible… which incidentally amounts to $2 trillion per year, and is pre

dont need to be smart cookie to know…US FEDERAL BUDGET DEFICIT IS GONNA BE 2 TRLN $ in 2011 fin year..

any questions ???????? does anybody in right mind would buy $$based debt ?

end of story…

alx

 

Login or register to post comments by JuicyTheAnimal
on Thu, 10/28/2010 – 02:23
#682648

Curious to see any market reaction to this article tomorrow.  What a circus.  

Login or register to post comments by Central Wanker
on Thu, 10/28/2010 – 02:34
#682650

My “theory about the day of reckoning” says that the market will blow up the very second when the illusion about the FED being in control vanishes.

Today seems like a good candidate for such day.

Login or register to post comments by EZYJET PILOT
on Thu, 10/28/2010 – 02:37
#682653

I repeat, what are these cunts buying with the QE money, MBS? 

Login or register to post comments by JuicyTheAnimal
on Thu, 10/28/2010 – 03:09
#682676

They aren’t buying anything yet (QE2).  They talk of buying treasuries.  Nobody knows exactly what will happen unless some people have been told exactly what will happen.  However, ZH is saying that this Bloomberg article is conveying that the Fed is going to let the banks tell it what to do.  

I read the Bloomberg article and I’m not taking it that way.  To me, it says the Fed is trying to get as much information about what will happen before they make a decision.  This is the reason for many conflicting articles coming out of various sources.  Goldman says $4T, what’s his name says 500B, WSJ article says 200B.  Now he asks the banksters for their opinion.  He’s gotten himself in between a rock and a hard place and their is no right answer.  He’s trying to decide what is the best wrong answer.  He may or may not do what they wish.  

 

If they are going to fucking do it I say they randomly pull 500,000 SSN numbers and give a million to each asshole that wins and let the chips fall where they may.    I doubt he’s going to follow that advice either.  

Login or register to post comments by Widowmaker
on Thu, 10/28/2010 – 03:56
#682717

Taxpayers are first on the list to pay, last to get paid – unless incorporated where no rules apply.

Bonuses on Christmas.

Login or register to post comments by EZYJET PILOT
on Thu, 10/28/2010 – 02:57
#682665

Can you tell me if my logic is correct. The Fed makes up money from thin air, gives it to itself, the banks, the banks then purchase treasury bonds from the Fed? Can someone also explain the mechanisms by which the taxpayer foots the bill for this Fed money printing. I’m just a simpleton trying to get to grips with the fraud at play, I don’t care how many times I get junked. I just want answers.

Login or register to post comments by JuicyTheAnimal
on Thu, 10/28/2010 – 03:30
#682695

The fed doesn’t exactly make up money out of thin air.  They need a keyboard to type it in….like this:  1,000,000,000,000.  There, that’s how easy it is to for them to get a trillion dollars.  The treasury bonds are bought in open market operations (POMO).  

Read about that here:  http://www.newyorkfed.org/aboutthefed/fedpoint/fed32.html

look up monetization on wikipedia or the like.  

The tax payer foots the bill when Treasury issues new bonds.  Well, that’s if they actually ever collect taxes to pay off the debt.  I suppose if the government just goes deeper and deeper in debt and finally defaults then who ever bought the treasuries will foot the bill.  (That could be you or I or China or Japan or who ever bought the stuff (I won’t touch it now).  When the Fed buys stuff get hurt too.  We eventually get screwed through a weakening dollar.  Higher commodity prices eventually get passed down to the consumer.  However, in more philosophical terms I think we can say the whole world gets fucked when one little bearded fuck face gets this much power.  

 

The big problem now is that if you have savings you don’t know where to put it.  Or, at least I don’t.  I’ve put mine in precious metals.  But who knows..that could tank if QE2 is small and cautious.  But I need to make money.  If I was just wishing for wealth preservation I’d have a short position in the market, precious metals, some foreign bonds, maybe some swiss francs and a couple other currencies.  

 

That make any sense?

Login or register to post comments by scaleindependent
on Thu, 10/28/2010 – 03:46
#682705

Ignore my post as I am not a finance guy, but the taxpayer pays through;

 

1. mega -dilution (money printing) therefore higher prices for everything

2. unfair advantages given to some components of the system (banksters, politicos, etc); free money is an unfair advantage at 0.25%. Free QE2 money also.

3. decreased pension incomes as pensions are based on the long bonds

4. decreased incomes as the game is deflation in incomes for the middle class and inflation in incomes for the pigs.

5. The loss of the rule of law. A biggie imho.

6. Moral Hazard; the consequences of which will mutate like an unpredictable methed up fractal. Why follow the law, why be fair, why not cheat if they do it? You can already sense it here at Zero Hedge.

7. The US is finally and ultimately responsible for all the crap toxic shit Burndunke is buying. e.g. We are responsible for all of Fannie and Freddie’s toxicities.

 

8. There is much more, but it is getting late. Read some of the old posts. Hopefully others will add on.

Login or register to post comments by belogical
on Thu, 10/28/2010 – 03:54
#682714

The Fed basically buys assets from the banks, they may even pay more than those assets are worth, this increase the banks balance sheet and normally they would lend it out. Now they generally just buy more treasuries or  cover losses. It puts liquidity into the system so it doesn’t stop functioning. If the assets the Fed bought go down in value the Fed takes the lose. The people pay with higher energy and food costs because the dollar is seen as worth less by countries and investors around the world. 

If the Fed buy’s treasuries because no else will, it generally has a bank or primary dealer buy them, then the Fed buys them from the bank or dealer. It hides it somewhat, but everyone knows. In this case people pay with higher costs as countries and investors shy away from the dollar, but also in taxes and decreased gov’t services down the road as the gov’t has to start paying back it’s debt.

Login or register to post comments by Tic tock
on Thu, 10/28/2010 – 02:58
#682666

anythingandeverything..the trick in the announcement is that the money is passed to the unholy sisters, whom will scorcheth the land of efficient pricing. .. and yes, the FED controls the US money supply and yes, the whole US consumer ‘engine of the world economy’ thing has been excessively inflation-driven (monetary phenomena)- which is not being allowed to correct.. and yes, food will become unobtainable..and yes, even the americans will become hungry en masse, and yes, the national guard will turn Washington into a Green zone….what will happen, States will parcel allotments of land for people to grow food on…but what you need -is a further 32 acres on government land alloted to an address or single voter, maximum per household. 

QE2 will break the fundamentals underpinning the system, every nation in the world knows this. The right course of action here would be for POTUS to sanction congress for a dissolution of the FED and to revoke the charter of some operational aspects of the banking cartel.

Gosh, this is going to be painful.    

Login or register to post comments by deKevelioc
on Thu, 10/28/2010 – 03:07
#682673
Bernanke: “We are Federales… you know, the Federal Reserve.”Bogart: “If you’re the Fed, where are your badges?”Bernanke: “Badges? We ain’t got no badges . We don’t need no badges! I don’t have to show you any stinkin’ badges!” Login or register to post comments by Tic tock
on Thu, 10/28/2010 – 03:16
#682685

Close..E pilot.. three players, the FED creates money, the Treasury sells Debt which pays interest. The Banks invest in the Treasury Debt. Banks also have the ability to multiply the amount they spend depending on their reserves of cash – important- Treasuries count as Reserves. ..so a large part of banking reserves is already Treasuries. They can sell these to the Fed, but then, with the money they hold they can, as they could have done with the treasuries they just sold in any case, buy  ~five times the amount of treasuries for the cash they just received…the issue is not so much the banks’ ability to do this, it is that the FED should be buying the treasuries at this particular moment…because, the market for US treasuries is dicey and the Banks themselves are relatively uncapitalized -for linked reasons- so it is an artificial market, and in turn, that mispriced activity is most likely being used to further misprice other financial assets..and the world is sensitive to the price of financial assets. 

The Fed has iterated that it’s actions are not out of choice but out of neccesity. The issue with that argument is… it seems slightly perverse that this is the system anyone in their right mind should be trying so very hard to save.

Login or register to post comments by nuinut
on Thu, 10/28/2010 – 03:52
#682713

The Fed has iterated that it’s actions are not out of choice but out of neccesity. The issue with that argument is… it seems slightly perverse that this is the system anyone in their right mind should be trying so very hard to save.

Got my vote for quote of the day.

Doesn’t matter how big it is, it will require a QE3, etc etc, should the system last that long… Bennie’s shown his hand, and we see he was bluffing… no real surprise.

Login or register to post comments by yabs
on Thu, 10/28/2010 – 03:19
#682689

 EZYJET PILOT

 

I believe that all QE amounts to is giving the banks a lifeline

They sell their worthless junk to the FED

in oreder to have fresh non toxic cash

so they can pump the markets up

Goldman is basically saying that the banks need 4 trillion to stay alive for now…

thats all QE is doing keeping the zombie banks alive a little longer at the expense of savers and anyone holding dollars

Tnats all it is

its not really inlfation per se its just banks will use this new money to speculate

i n whatever they choose.

Its absolutely criminal that it goes on

In a free m,arket these banks go bust and there is no FED end of story

and the markets sets interest rates not a central bank owned by satanic zionists

Login or register to post comments by CPL
on Thu, 10/28/2010 – 03:52
#682703

Celtic prophecy

 

Prophecies of verse 166 in OI: Ni accus bith nombeo baid: sam cin blatha, beti bai cin blichda, mna can feli, fir gan gail. Gabala can righ rinna ulcha ilmoigi beola bron, feda cin mes. Prophecies of verse 167 in OI: Muir can toradh. Tuired bainbthine immat moel ra/tha, fa/s a forgnam locha diersit- din atrifit- linn lines sechilar flaithie faoilti fria holc, ilach imgnath gnuse ul-. Incrada docredb-gluind ili, imairecc catha, toebh fri ech delceta imda dala braith m-c flaithi forbuid bron sen saobretha. Brecfa/sach mbrithiom- braithiomh cech fer. Foglaid cech mac. Ragaid mac i lligie a athar. Ragaid athair a lligi a meic. Cliamain cach a brathar. Ni sia nech mnai assa tigh. Gignit- cenmair olc aimser immera mac a athair, imera ingen…”

166. Then after the battle was won and the slaughter had been cleared away, the Morrigan, the daughter of Ernmas, proceeded to announce the battle and the great victory which had occurred there to the royal heights of Ireland and to its sid-hosts, to its chief waters and to its rivermouths. And that is the reason Badb still relates great deeds. “Have you any news?” everyone asked her then.

Peace up to heaven. Heaven down to earth. Earth beneath heaven, Strength in each, A cup very full Full of honey; Mead in abundance. Summer in winter… Peace up to heaven…

167. I shall not see a world which will be dear to me: summer without blossoms, cattle will be without milk, women without conscience, men without valor, Honor will be found short. Conquests without a king… Woods without mast. Seas without produce… False judgments of old men, false precedents of lawyers, every man a betrayer, every son a reaver. The child will go to the bed of their parent, the parent will go to the bed of their child. Each their siblings mate. They will not seek any mate outside their own house… An evil time, son will deceive his father, daughter will deceive mother, ..

You would be amazed what was writen in runes 2 thousand years before jews roamed

 

I would ask everyone to take the names of their children to make sure the tree of rot stops before the fruit drops.  The parents will be far gone before this is done.

 

Can’t let this cancer spread any farther than it has to beyond Winter Solstice otherwise the rest of the orchard will be rotten.

Login or register to post comments by Shylockracy
on Thu, 10/28/2010 – 03:52
#682711

Can you pronounce the word “Shylockracy”?

Come on, don’t be coy and give it a try. It can very be liberating.

Login or register to post comments by CPL
on Thu, 10/28/2010 – 04:14
#682715

Good thing the law is written in pencil.

 

So glad I only see historical trends at times because, fuck, it’s just like the ingredients to an awesome blood soaked revolution .

 

Fucking shylocks, hand given to friendship and then with other to sink deep in our backs.  Starting to wonder if a certain German wasn’t right on the money and I wish I were drunk saying that instead of just waking up and reading this shit.

 

Anyone else got their marks for the day? 

 

Queen anne’s lace, a bottle a vodka, one month in the bottle of vodka.  Kill a man in about a minute without pain.  For a woman, she menstruates heavily.  Tasteless, odorless and looks like a heart attack.  Pick accordingly and serve liberally.

 

This is Queen Anne’s lace btw…might have seen it growing in ditches.

http://www.examiner.com/images/blog/wysiwyg/image/Queen_Annes_Lace_04081&#8230;

Very poisonious to men, birth control for women.

Login or register to post comments by Central Wanker
on Thu, 10/28/2010 – 04:08
#682724

Why isn’t Gold skyrocketing on this kind of news? Is everyone “comfortably numb” or what?

Login or register to post comments by CPL
on Thu, 10/28/2010 – 04:11
#682726

90% of the investors aren’t sure which way to run when the obvious was appearent two year ago when the shit storm hit, which was get out, run and hide.

Login or register to post comments by jesusonline
on Thu, 10/28/2010 – 04:13
#682728

Federal Reserve is a private owned enterprise, it has always been. Or rather, call it a conspiracy theory and get some more of this from your money masters.

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