Bernanke Tells Nation This Sunday: More QE Coming

For those wondering why the market leaked higher in the last hour, it is because someone got an advance copy of the transcript (or advance notice) that in this Sunday's latest attempt at faux transparency on 60 Minutes, the bearded mutant-cum-supreme genocidal overlord says that more QE is coming. From Reuters: "The euro rose to a
session peak against the dollar in late afternoon New York trade on
Friday after a report on the CBS website that Federal Reserve Chairman
Ben Bernanke did not rule out buying more than $600 billion of bonds in
further quantitative easing." It also explains why the euro is back to 1.34, and is right in line with our expectations that the EURUSD is only weak so long as the market realizes that much, much more QE is coming. How much? See the chart below for our ongoing expectation of what the Fed's balance sheet will look like soon. And yes, the $7 dollar jump in gold late in the day may be multiplied 10-20x on Monday after the world realizes that the US economy is as fucked as always.

Perhaps it is time for Goldman to revise its 48-hour old "alles gut" call?

This is what we projected a few months back. Looks like we may accidentally be spot on as usual.

Of course, if that happens, look for every other bank to go apeshit in tandem (and that certainly includes the BoJ and the ECB which will join the fray):

And lastly, here are the Senators who voted Yay or Nay on Bernanke's most recent renomination. Who would have thought only 30 Senators gave a rat's ass about what happens to this country's middle class.

State	Senator	Party	Jan. 28 Ben S. Bernanke Fed Chair 70–30
Hawaii	Akaka, DanielDaniel Akaka	D	Yea
Tennessee	Alexander, LamarLamar Alexander	R	Yea
Wyoming	Barrasso, JohnJohn Barrasso	R	Yea
Montana	Baucus, MaxMax Baucus	D	Yea
Indiana	Bayh, EvanEvan Bayh	D	Yea
Alaska	Begich, MarkMark Begich	D	Nay
Colorado	Bennet, MichaelMichael Bennet	D	Yea
Utah	Bennett, RobertRobert Bennett	R	Yea
New Mexico	Bingaman, JeffJeff Bingaman	D	Yea
Missouri	Bond, KitKit Bond	R	Yea
California	Boxer, BarbaraBarbara Boxer	D	Nay
Ohio	Brown, SherrodSherrod Brown	D	Yea
Kansas	Brownback, SamSam Brownback	R	Nay
Kentucky	Bunning, JimJim Bunning	R	Nay
North Carolina	Burr, RichardRichard Burr	R	Yea
Illinois	Burris, RolandRoland Burris	D	Yea
West Virginia	Byrd, RobertRobert Byrd	D	Yea
Washington	Cantwell, MariaMaria Cantwell	D	Nay
Maryland	Cardin, BenBen Cardin	D	Yea
Delaware	Carper, TomTom Carper	D	Yea
Pennsylvania	Casey, BobBob Casey	D	Yea
Georgia	Chambliss, SaxbySaxby Chambliss	R	Yea
Oklahoma	Coburn, TomTom Coburn	R	Yea
Mississippi	Cochran, ThadThad Cochran	R	Yea
Maine	Collins, SusanSusan Collins	R	Yea
North Dakota	Conrad, KentKent Conrad	D	Yea
Tennessee	Corker, BobBob Corker	R	Yea
Texas	Cornyn, JohnJohn Cornyn	R	Nay
Idaho	Crapo, MikeMike Crapo	R	Nay
South Carolina	DeMint, JimJim DeMint	R	Nay
Connecticut	Dodd, ChrisChris Dodd	D	Yea
North Dakota	Dorgan, ByronByron Dorgan	D	Nay
Illinois	Durbin, DickDick Durbin	D	Yea
Nevada	Ensign, JohnJohn Ensign	R	Nay
Wyoming	Enzi, MikeMike Enzi	R	Yea
Wisconsin	Feingold, RussRuss Feingold	D	Nay
California	Feinstein, DianneDianne Feinstein	D	Yea
Minnesota	Franken, AlAl Franken	D	Nay
New York	Gillibrand, KristenKristen Gillibrand	D	Yea
South Carolina	Graham, LindseyLindsey Graham	R	Yea
Iowa	Grassley, ChuckChuck Grassley	R	Nay
New Hampshire	Gregg, JuddJudd Gregg	R	Yea
North Carolina	Hagan, KayKay Hagan	D	Yea
Iowa	Harkin, TomTom Harkin	D	Nay
Utah	Hatch, OrrinOrrin Hatch	R	Yea
Texas	Hutchison, Kay BaileyKay Bailey Hutchison	R	Nay
Oklahoma	Inhofe, JimJim Inhofe	R	Nay
Hawaii	Inouye, DanielDaniel Inouye	D	Yea
Georgia	Isakson, JohnnyJohnny Isakson	R	Yea
Nebraska	Johanns, MikeMike Johanns	R	Yea
South Dakota	Johnson, TimTim Johnson	D	Yea
Delaware	Kaufman, TedTed Kaufman	D	Nay
Massachusetts	Kerry, JohnJohn Kerry	D	Yea
Massachusetts	Kirk, PaulPaul Kirk	D	Yea
Minnesota	Klobuchar, AmyAmy Klobuchar	D	Yea
Wisconsin	Kohl, HerbHerb Kohl	D	Yea
Arizona	Kyl, JonJon Kyl	R	Yea
Louisiana	Landrieu, MaryMary Landrieu	D	Yea
New Jersey	Lautenberg, FrankFrank Lautenberg	D	Yea
Vermont	Leahy, PatrickPatrick Leahy	D	Yea
Florida	LeMieux, GeorgeGeorge LeMieux	R	Nay
Michigan	Levin, CarlCarl Levin	D	Yea
Connecticut	Lieberman, JoeJoe Lieberman	Ind. D	Yea
Arkansas	Lincoln, BlancheBlanche Lincoln	D	Yea
Indiana	Lugar, RichardRichard Lugar	R	Yea
Arizona	McCain, JohnJohn McCain	R	Nay
Missouri	McCaskill, ClaireClaire McCaskill	D	Yea
Kentucky	McConnell, MitchMitch McConnell	R	Yea
New Jersey	Menendez, BobBob Menendez	D	Yea
Oregon	Merkley, JeffJeff Merkley	D	Nay
Maryland	Mikulski, BarbaraBarbara Mikulski	D	Yea
Alaska	Murkowski, LisaLisa Murkowski	R	Yea
Washington	Murray, PattyPatty Murray	D	Yea
Florida	Nelson, BillBill Nelson	D	Yea
Nebraska	Nelson, BenBen Nelson	D	Yea
Arkansas	Pryor, MarkMark Pryor	D	Yea
Rhode Island	Reed, JackJack Reed	D	Yea
Nevada	Reid, HarryHarry Reid	D	Yea
Idaho	Risch, JimJim Risch	R	Nay
Kansas	Roberts, PatPat Roberts	R	Nay
West Virginia	Rockefeller, JayJay Rockefeller	D	Yea
Vermont	Sanders, BernieBernie Sanders	Ind.	Nay
New York	Schumer, ChuckChuck Schumer	D	Yea
Alabama	Sessions, JeffJeff Sessions	R	Nay
New Hampshire	Shaheen, JeanneJeanne Shaheen	D	Yea
Alabama	Shelby, RichardRichard Shelby	R	Nay
Maine	Snowe, OlympiaOlympia Snowe	R	Yea
Pennsylvania	Specter, ArlenArlen Specter	D	Nay
Michigan	Stabenow, DebbieDebbie Stabenow	D	Yea
Montana	Tester, JonJon Tester	D	Yea
South Dakota	Thune, JohnJohn Thune	R	Nay
Colorado	Udall, MarkMark Udall	D	Yea
New Mexico	Udall, TomTom Udall	D	Yea
Louisiana	Vitter, DavidDavid Vitter	R	Nay
Ohio	Voinovich, GeorgeGeorge Voinovich	R	Yea
Virginia	Warner, MarkMark Warner	D	Yea
Virginia	Webb, JimJim Webb	D	Yea
Rhode Island	Whitehouse, SheldonSheldon Whitehouse	D	Nay
Mississippi	Wicker, RogerRoger Wicker	R	Nay
Oregon	Wyden, RonRon Wyden	D	Yea
	vote by party	D R Ind.	47–11 22–18 1–1

Comments

[Bring the Gold]

Yep it's all about the top 100 or so families maybe 300 families on EARTH that are poised to benefit from this. They will evicersate the richest last and blame them while the top 300 families aim their media guns at the horrible "rich". You guys cheering Bernanke, the Dems and Republicans on are cheering for Darth Vader and the storm troopers. Soon FEAR will rule the galaxy!!! Don't worry palpatine will dissolve the Galactic Senate soon enough.

Oh maybe they are all incompetently stealing trillions and centralizing power...you know incompetently. Only a fucking idiot still believes in the incompetence theory. Read Ellen Brown's Tower of Basel found here: http://www.globalresearch.ca/index.php?context=va&aid=13239

[huggy_in_london]

i doubt this cocksucker will be allowed to do more....

[cosmictrainwreck]

I'd venture that a lot of us hope you're right.... but who/how restraint?

[huggy_in_london]

Well firstly the backlash in congress might be too great (which i doubt).  More likely is that the market does not allow him to do this.  His plan is predicated on yields being low.  But what he forgets is that there are more fixed income securities for sale than he has to buy.  QE is unequivocally bad for bonds.  Yields will continue to rise should they attempt any more QE.  Rising yields will eventually threaten the stock markets run away gains.  Unfortunately for us, bernanke and these idiots think that they can control these markets.  I have traded markets for 20 years professionally and i am yet to see anyone control a market for anything more than a few hours or a day at most.  The market is too big.  And its too big for the fed to control.  They would need to effectively shut the market to control it.  That would be something.... then you'd have no free markets in the US and no free speech!  Quite an achievement for the supposed champions of democracy.  US edging closer to fascism ......

[cosmictrainwreck]

boy, you ain't just a-kiddin' about the fascism part. that's what we're all wailing & flailing about. Thanks for the clear explanation - and again, hoping for the best out of all the poor scenarios

[tahoebumsmith]

That was then...

http://www.youtube.com/watch?v=9QpD64GUoXw

This is now....

http://www.youtube.com/watch?v=s-AArLKX-Mw

I really like the exit strategy he talked about 6 months ago. Seems to be working just like all his other plans.

[Bastiat]

My gut yesterday when they raided the PMs was they were running stops because they knew liftoff was coming -- now I know what they knew. 

[Gigantor]

At some point someone has to say:

"Uh, Ben, I don't think your "plan" is working at all."

[jmac2013]

Why not quantitative easing infinity? Most people I talk to never heard of quantitative easing, and consequently have no outrage over it.  And as long as some bearded man who looks like a good valued figure of authority goes on national TV and tells the masses why it's needed, I'm sure that would be good enough.

[CU1981]

Hilarious : http://www.youtube.com/watch?v=Gl47z2g2EvI

Soon to go Viral !!

[cosmictrainwreck]

LMAO....nice style, adding the sound effects. Ha!

[Bay of Pigs]

the JP Morgue...LMAO...

[DeltaDawn]

LET'S GET BUSY!

Call Congress and voice your support for Ron Paul! If they can't stand by his appointment, they should be "junked" by the voters. This is a litmus test that they mean business.  Tell them you are a Tea Partier....that scares them a little.

[CitizenPete]

Yeah you tell them your a tea bagger -- that scares them a little.  Scares the living fking daylights out of me! I would chew my own leg off to escape from a room with Shara "Fking N. Korea is our ally" Palin or Michell "Jesus rode a Dinosaur" Bachman, or the rest of the NeoCon Fascist Republican sky-God worshiping faux Libertarian want-to-bes. Go back to Tea Party Nation and post about the birth certificate and muslim baby-eaters, or whatever twisted fked up BS that Fox News is pumping into your trailer TV at this moment. 

But Hey, I could be out of line here.

Ron Paul 2012 - Hope for America (slim hope at this juncture, but Hope none-the-less)

[DeltaDawn]

You are playing into the globalists' hands by believing what they tell you to believe. Your enemy is not Americans who want to follow the Constitution and balance the budget.  I do not live in a trailer (but do not insult people who do) and I am also voting for Ron Paul in 2012.  That puts us both on a watch list buddy. 

[Dolar in a vortex]

I junked you because I think your reply shows a level of ignorance that the msm revels in.

And hey, I don't feel out of line at all!

PS. Fox News isn't the problem, it's the right and left politicians of America. They think we're all stupid and they are leaders because they deserve to be. And yet they're not smart enough to notice their subservience to Wall St and the fed.

[Parth]

Why is everyone so upset? All it means is everyone has to spend all their money as quickly as they can. Its a new reality show- "America's fastest shopper"- that should be the true reality show for America, not singing and dancing. I am headed out for happy hour ad nauseum until I drain every cent in credit I have. I shall pay it back after QE10.

[Buck Johnson]

We are caught and they have to know it in the printing money phase of our economy.  He's not even hiding it and thats because he is out of bullets to use.

[Justaman]

When does this crap end?  Who is holding The Bernanke and his cohorts accountable for their actions?  This government has started a currency war with a country that DOES have a war chest. 

America deserves this as we are too lazy, dumb, and beiber crazy to understand the rug is being pulled out from under us by OUR OWN FREAKIN' ELECTED LEADERS! 

I am so glad my incompetent senators re-elected this "genius academian" who probably has never invested any real money for a client.  Heck, he has probably never had a real job in the industry.  Disgusting and typical for the establishment all at the same time. 

Wake up U.S.A...um, wait a second, it's too late...we lie in the bed we make.  It will be a sad day when Asia takes us over, bails us out or some fascimile of that.  We are already heading to a police state so the transition should be pretty easy.  Good luck to us all.  Peace...bitchez.

[AN0NYM0US]

bin gone for a while -- WTF is all of this anti robo crap, Robotrader  is one of the good guys in the order of Mahem and Cheeky B -- I don't understand the junks that he is getting - ROBO rocks

[RoRoTrader]

ditto........+100

[Itsalie]

Latest score of currency war since August Jackson hole:

Benny the chopper 2

Merkel 1

The buck has plunged twice since August (including yesterdays's 250bp freefall, still ongoing), euro once. Looks like the time to recover from each orgasmic high is getting shorter, Benny will need a big dose of viagra soon. Whatever Benny will excrete at his CBS 60 minute show, the europeans will more than match him with their own porn from Spain, Portugal, Belgium or Italia! Already Kingdom of Spain bid/offer spreads have continued to widen Friday despite ECB's buying :)

[Atomizer]

Iron Mountain Blueprint is right on schedule.

[honestann]

More attempts to get the effect of QE long before needing to pull the trigger and do it.  That's simply an attempt to get as much bang out of every fiat, fake, fraud, fiction, fantasy debt buck they create out of thin air, and add to the debt of every productive individual on earth --- their slaves.

End fractional reserve practices.
End federal reserve.
End fantasy.
End fiction.
End fraud.
End fake.
End fiat.

End government.  It is so utterly obsolete.

Hang the entire predator class for endless acts of fraud, treason and crimes against humanity.

Time to return to reality.

Reset.

[TruthInSunshine]

-Contrarian alert-

I realize that there is a claim of 'advance copy' of the 60 Minutes interview.

My common sense tells me The Bernank is literally in his last throes and he knows it.

This appearance on 60 Minutes, his 2nd in a very short time frame, is unprecedented, and suggests that he is going to give it his best shot in order to deflect criticism from what he's already done with a few harsh critics ready to verbally assault him on a weekly basis in Congress, and that he is about to fall on his sword in order to not only try and save the Federal Reserve, but the banking & financial services' industies.

Think about this: I can't recall a time within my life where more average people - not all, but a fair amount - were openly complaining about the Federal Reserve, Bernanke and Goldman Sachs/Wall Street. Can any of you? Even with the Lame Stream Media completely non-reporting the raping and pillaging of the meaty center of the American Middle Class, people are aware, in general terms, that they're being screwed as sacrificial lambs to banking and Wall Street interests.

Gas prices are up (killing the middle class), interest on deposits, money markets and bonds are way down (killing retirees), foreclosure and delinquency rates on residential and commercial mortgages are very high, and small businesses are sucking wind as they struggle to deal with high input costs and low pricing power. I could go on, but you all know the other consequences of The Bernank's willing trade-off of stuffing the banks with as much cash as possible, due to their extraordinarily weak balance sheets, consequences be damned.

So is their a political calculus here? Damn skippy. And it's a massive one. And massive political angles DO NOT tend to be wasted.

So here's my wacky prediction: Bernanke, knowing he's either going to be impaled, or in preparing the groundwork to commit Seppuku, actually drops a bombshell and talks about the need to wind down Federal Reserve hyper-interventionism, because some significant stability has been achieved. He'll prattle on about how confidence has been restored to a certain degree, car sales are increasing, interest rates are significantly lower than the historical norm, blah, blah, blah...

Obviously, anyone with an I.Q. above 80 and who actually can see what the economy (outside of Manhattan & D.C. - the two biggest beneficiaries of The Bernank's largess) looks like will roll their eyes and be flummoxed by The Bernank's seeming obliviousness.

But The Bernank will essentially be pulling a "mission accomplished" tagline out of his ass, in preparation to fade away into some obscurity, for at least a few years.

Now, all that insider selling we've seen for the last 7 months or so, which has climaxed, will all make sense, as will the enormous expansion of the Fed's balance sheet since 2008, stuffed full of highly overvalued 'Maiden Lane' type assets, where much of these septic things still remain, blowing up piecemeal with time.

We get an equity market correction, interest rates on savings rise as do bond yields (after all, look at all the corporations that already met their borrowing needs for the next 25 to 50 years, locking in insanely low interest rate obligations), seniors and retirees breath a sigh of relief, there is no great pummeling of a widely invested in equities segment of the American Public as this class lacks the broad participation in equity ownership they had up until 2007, the dollar rises which brings back purchasing power to the middle class, who rejoice at $1.89 per gallon gasoline and all the USDA prime or choice Tbones their grilles can handle...you get the picture.

But problems do remain, structurally speaking. It's just that more time is bought, yet again, just in the nick of time for the candidates who start campaigning and raising money in 2011 for the 2012 super election cycle.

Improbable? I like to think of it as my contrarian play recognizing there is a massive political component to all of this that has all but been completely ignored.

The Bernank does not operate in a vacuum, despite claims that The Bernank is a truly independent actor not beholden to Congress or the President, history teaches us that Presidents, especially, put enormous pressure on people like The Bernank & the Congress does not like taking too much heat for central bankers' policies, and there is no real bubble to be enjoyed by a wide audience (gold/silver are not widely owned) on the horizon, as in the case of the dot.com or housing bubbles that glossed over structual problems in the recent past, to help the Bernank in terms of kick the can - especially now that equity ownership is historically in low percentages among the middle class (I do realize pensions and 401(k)s and the like carry exposure, but retail and individually driven ownership rates are very low).

This is the perfect time, place and scenario for realpolitik to come in and save the day, with 2012 looming larger.

[CitizenPete]

Ron Paul 2012

END THE FED

[merehuman]

what? no bubble. fiat bubble, bond bubble over valued market bubble, trust bubble.

got a balloon?

[curious1]

Is Ben Shalom some kind of jewish hitler hell bent on destroying America or just to satisfy his ego - "no depression under my watch"?Either way it is dangerous or very expensive.

I imagine when  he will stripped off of his president of fed reserve position on the grounds that he is mentally challenged and will he sent directly to mentally retared facility. I also question how can he go on for so long but then I realize Greenspan also had multi light year tenure. Fook Ben...

[curious1]

US gone wild:

U.S. Military in Iraq Tries to Intimidate Soldiers Into Not Reading Wikileaks

http://gawker.com/5705639/us-military-in-iraq-tries-to-intimidate-soldie...

[Rodent Freikorps]

As Rachel Slajda reports on Talking Points Memo, the Office of Management and Budget in the White House has "directed all federal agencies to bar their employees from accessing the WikiLeaks Web site and its leaked diplomatic cables."

[dcb]

The answers here are so easy I find it strange that anyone doubts what the fed will do.

1) american banks are insolvent

2) They are insolvent because of the fed and it's failures

3) they are insolvent because of governments failure

4) all power structures desire to maintain the status quo, therefore to cover up for the two massive failures the fede will do what is has too.

that means buying as much as it takes to bail the banks out as if thye assets were priced to real market levels. We have alos had dudley (the person really running the federal reserve) say we are going to have low interest rates forever.

this shit aint rocket science

[SparkySC]

Will 60 minutes ask about the Silver Market Manipulation scheme? 

http://www.zerohedge.com/article/goldman-sack-blows-whistle-jp-morgue-si...

[FreedomGuy]

They don't ask hard questions because first, they tilt towards being statist and you don't challenge your own. Second, they probably don't know squat about economics, markets, trading or even currency. The CAN'T ask a hard question unless they've got some Libertarians on staff. What's the odds of that?