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David Rosenberg: "How Can There Not Be A QE3?"

Tyler Durden's picture




 

From Rosie's "Breakfast with Dave"

Keep in mind that the Fed, unlike the European Central Bank, has a dual mandate — and the one pertaining to the goal of full employment is becoming even more elusive. The unemployment rate has already gone from 8.8% three months ago to 9.2% as of June and that is now well outside the year-end FOMC central-tendency projection band of 8.6% to 8.9%. The Fed believes it will be down to 7.8-8.2% by the end of 2012. Good luck.

The economy is going to need a lot more help to get to these numbers — not to mention the 3.2% consensus GDP growth forecast for the second half of the year. It looks like the majority of economists are in for another big surprise as they were heading into 2008 where visions of soft-landings filled the air.

Keep in mind that every recession was ushered in by a rise in the unemployment rate of 0.5 percentage point or more. We have now gone up 0.4 of a percentage point. Just another 10 basis points to go before the sufficient condition kicks in. And in this context we just love these two quotes on the front page of the Investors Business Daily:

  • "July and August ought to be a lot better than May or June."
  • "The chances of a recession are still pretty remote."   

You have to love the optimism but at the same time be a tad worried about the high level of denial out there. So many analysts cling to the ADP report and that it was the payroll data that were out of line (really, and what about the Household survey which showed a 445k plunge?). It is the ADP that is supposed to forecast the Bureau of Labor Statistics report, not the other way around.

It is also completely wrong to assume that the other data points for June were really that good, either. The ISM may have risen, due to inventories, but 80% of the regional indices were down and the non-manufacturing index was down as well. Maybe it was the manufacturing ISM that was out of line. Yes, yes, chain store sales were decent, but calendar effects and massive discounting helped out. And auto sales undercut May's lows and that is counted as consumer spending too, believe it or not. Consumer confidence and the NAHB index were very soft last month. Jobless claims at around 420k are indeed consistent with soft jobs data at a time when hiring levels are still so subdued. The euphoria over energy prices is bizarre considering that oil is still 30% higher now than it was a year ago.So sorry — the employment numbers on Friday were totally consistent with many of the other "extended" soft patch data that were released in June.

Everybody who is bullish on growth cites lower gas prices but this is the dog chasing its tail — volume consumption is down 5.5% YoY. Demand destruction is at play — have a look at the chart below and you will see that this is actually a recessionary statistic!


Source: Gluskin Sheff

 

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Mon, 07/11/2011 - 16:43 | 1445314 DiveGerl
DiveGerl's picture

Right...just what we need right now, more QE.

Mon, 07/11/2011 - 16:47 | 1445329 oogs66
oogs66's picture

We might not get qe3 because too many people realize qe2 did nothing for the real economy and the inflation hurt job growth more than any illusory wealth effect helped

Mon, 07/11/2011 - 16:51 | 1445348 mayhem_korner
mayhem_korner's picture

We might not get qe3 because too many people realize qe2 did nothing for the real economy

Take a quick poll of ten average joes on the street and ask them what they think of qe2 and you might rethink this.  They will answer in Babarino-esque "What?"

Mon, 07/11/2011 - 17:05 | 1445405 eureka
eureka's picture

Right O - and that's why QE3 is a political slam dunk - for without it, how is the US going to continue its favorite pursuits of national pump & pomp... DOW & EMPIRE...?

So, after some destruction in equities - right about now/Q3/11 - it's on with the ponzi i.e. the purely Symbolic Power - and then, for those in such frame of mind, it's time again to:

Bet On Stocks - Bet On Satan !

Mon, 07/11/2011 - 17:18 | 1445453 Robot Traders Mom
Robot Traders Mom's picture

@ mayhem-I'll bet "ten average joes on the street" don't even know what QE2 even was...

Mon, 07/11/2011 - 17:38 | 1445525 Ham Wallet
Ham Wallet's picture

QE2=Queen Elizabeth II to 99% of the population.

Mon, 07/11/2011 - 18:09 | 1445607 akak
akak's picture

That is why we will never see QEIII anytime soon --- she hasn't been born yet!

 

(But when she is born, what an ugly monster she will be!)

Mon, 07/11/2011 - 18:13 | 1445620 knowless
knowless's picture

The vast majority are intimidated by the term "quantitative easing", let alone that there can be more than one of them. If it is discussed in the media it is only transitorily so, and never in enough depth to impart actual understanding, the only ones that know what it means are either directly involved in the financial community, or for whatever personal reasons have searched for why we are where we are and passed the gatekeepers of doubt/basic intelligence.

 

you're 100% right.

Mon, 07/11/2011 - 17:24 | 1445473 centerline
centerline's picture

J6P will cry for money to fall from the heaven's.  Doesnt know shit about QE this, TARP that, and so forth.  The Fed already laid the groundwork here by saying no more QE - UNLESS its autonomy was compromised or was forced to do so.  So... guess where the blame goes now?  Smooth.  J6P won't know what hit him until after it is too late.

 

Mon, 07/11/2011 - 18:29 | 1445662 Marty Rothbard
Marty Rothbard's picture

They would probably think you were talking about the ship.  The Queen Elizabeth II.

Mon, 07/11/2011 - 16:55 | 1445365 Max Hunter
Max Hunter's picture

Are you serious? dude... since when has logic/fundamentals hadanything to do with monetary (economic) policy.  They are trying to drive us into the ground son, or haven't you been paying attention.

Mon, 07/11/2011 - 17:02 | 1445395 john39
john39's picture

yup.  all about power. collapse through rigging of monetary policy is the means.  fixing things was never in the cards...   instead, create mountains of debt, destroy the middle class, sow fear and choas while the global elite openly take full control and eliminate what you thought were your rights.  when it looks like the government is run by idiots, its only because you are looking at it wrong.  they are just playing their part.                    

Mon, 07/11/2011 - 17:51 | 1445556 MFL8240
MFL8240's picture

With so many countries in trouble, Japan, China, and all of Europe, who will buy all the upcoming US debt if not for QE3?

Mon, 07/11/2011 - 18:20 | 1445638 Peter_Griffin
Peter_Griffin's picture

#1445556

With so many countries in trouble, Japan, China, and all of Europe, who will buy all the upcoming US debt if not for QE3?

 

That's my question too.  Is it possible QE has let the fed buy up enough treasuries from banks, allowing for banks to step back up on treasury auctions?  Then once banks want more play money, BAM, qe3 frees up their dollars again?

That's my un-educated guess, but I would like to know the educated answer.

Mon, 07/11/2011 - 16:55 | 1445356 Shell Game
Shell Game's picture

It's not about what we need, it's about how TPTB trying for the status quo.

Mon, 07/11/2011 - 16:55 | 1445366 SMG
SMG's picture

The Bank of the Oligarchy (aka. Federal Reserve) has only one mandate.   Protect the Oligarchy's banks.  If you realize that and look back you can see the Bank of the Oligarchy has been really successful.

The banks are flush right now from QE2, and in my opinion, will be able to buy all sorts of things at a greatly discounted price, from this upcoming deflationary period.  Then QE3, and goodbye dollar.

Mon, 07/11/2011 - 16:44 | 1445320 youngman
youngman's picture

Tomorrow will be telling with the first of the bond auctions......WITHOUT the Fed...supposedly...at least that is what they said...quite exciting actually...I think I have a tingle up my leg....

Mon, 07/11/2011 - 16:57 | 1445373 HpDeskjet
HpDeskjet's picture

10y Treasury rates have dropped 25bp since the end of QE2... Stopping QE is not bad for bonds, its bad for equities

Mon, 07/11/2011 - 16:45 | 1445321 Transitory Disi...
Transitory Disinflation's picture
"How Can There Not Be A QE3?"

When it is QE2.5

Mon, 07/11/2011 - 16:55 | 1445364 Mae Kadoodie
Mae Kadoodie's picture

How can we not eat our peas?

Mon, 07/11/2011 - 17:11 | 1445429 Janice
Janice's picture

"If you don't eat your peas, you can't have any pudding, how can you have any pudding if you don't eat your peas!"  "You! Yes, you! behind the bikesheds, stand still laddie!"

Mon, 07/11/2011 - 17:19 | 1445455 Shell Game
Shell Game's picture

All in all, we're all just peas in a pod?

Mon, 07/11/2011 - 18:00 | 1445575 Cheesy Bastard
Cheesy Bastard's picture

Open the pod bay doors Hal.

Mon, 07/11/2011 - 18:21 | 1445642 Cthonic
Cthonic's picture

I'm sorry, Dave. I'm afraid I can't do that.

Mon, 07/11/2011 - 18:29 | 1445657 knowless
knowless's picture

hi there!

http://www.youtube.com/watch?v=JlSQAZEp3PA&NR=1

eat your fucking peas.

Mon, 07/11/2011 - 16:46 | 1445327 Ignorance is bliss
Ignorance is bliss's picture

Even if the Fed. provides liquidity in the form of QE3 the Gov't needs to raise the debt ceiling in-order to borrow the money. We'll probably see an agreement sometime in the next 2 weeks at which time the Fed can start administering America's stimulus in the form of debt. Let's hope the system survives that long. looks like the patient is going into stimulus withdrawals.

 

Mon, 07/11/2011 - 17:18 | 1445454 eureka
eureka's picture

Is the Chair-Satan counting on Chinese Helicopters?

Mon, 07/11/2011 - 16:51 | 1445331 Waterfallsparkles
Waterfallsparkles's picture

Last POMO today and now they are worried after gunning the Market for the 2 weeks instead of Selling.

Mon, 07/11/2011 - 16:48 | 1445333 rdenner
rdenner's picture

How can there be QE3 when we can not even get a debt ceiling increase passed with less than 2 weeks to go...

 

Things will continue... UNTIL THEY CAN'T!!!

 

Can't is getting a lot closer folks..

 

Robert

Mon, 07/11/2011 - 16:50 | 1445337 Leo Kolivakis
Leo Kolivakis's picture

Fiscal tightening in US increases the risk of deflation and pretty much ensures QE3. Bring on QE3 and let's have some fun trading scrap stocks:

 

Mon, 07/11/2011 - 16:58 | 1445383 Vic Vinegar
Vic Vinegar's picture

Good point dude.  We are all going to need more Bennie Bux to maintain our current standard of living in the face of all this upcoming pea eating. 

Bring on QE3!

Mon, 07/11/2011 - 17:04 | 1445401 equity_momo
equity_momo's picture

You couple of donuts.

Mon, 07/11/2011 - 17:24 | 1445472 eureka
eureka's picture

Sweet! I am thirsty. Give me Vinegar.  :-)

Mon, 07/11/2011 - 17:34 | 1445512 Waterfallsparkles
Waterfallsparkles's picture

Did he say Pee or Pea.

Mon, 07/11/2011 - 21:36 | 1446214 gwar5
gwar5's picture

Pea. As, in Obama's command that everyone should suck it up in this economy and "eat their peas".

Mon, 07/11/2011 - 17:22 | 1445463 fuu
fuu's picture

Back to posting in the comment threads? Better get your asbestos undies on Leo

Mon, 07/11/2011 - 19:46 | 1445919 akak
akak's picture

"Undies"?  You have to be kidding!

Little leo the masochist is spanking his balls after posting here even as we speak.

It's about as much action below the belt as he is ever going to see:

"Hey baby, what do you say we go back to my place, and I show you my big fat Greek pension fund portfolio?"

Mon, 07/11/2011 - 23:41 | 1446642 fuu
fuu's picture

My bad.

Mon, 07/11/2011 - 17:25 | 1445484 Robot Traders Mom
Robot Traders Mom's picture

Leo, you are the Robot Trader of penny stocks. Congrats.

Mon, 07/11/2011 - 16:50 | 1445340 rdenner
rdenner's picture

Also as pointed out above.. The fed is already involved in Stealth QE by reinvesting..... It isn't enough to boost the markets. But it is enough to keep a panic from setting in tomorrow on the bond auction...

 

Ole Bennie will be there with bells on, buying up the long end of the auction.

 

Robert

Mon, 07/11/2011 - 16:50 | 1445342 gorillaonyourback
gorillaonyourback's picture

DEBT CEILING HIKE IS ,,,,,, QE3

Mon, 07/11/2011 - 16:54 | 1445359 mayhem_korner
mayhem_korner's picture

+14.4T

It will be like the chronic gambler getting his bonus check delivered to his Vegas hotel.

Mon, 07/11/2011 - 16:58 | 1445347 plocequ1
plocequ1's picture

There will be a QE3. Now go home and get your shinebox

Mon, 07/11/2011 - 17:13 | 1445435 kito
kito's picture

not......

Mon, 07/11/2011 - 16:53 | 1445355 sabra1
sabra1's picture

let's hope the fed  abolishes moodys, fitch & s&p before the debt ceiling increase. we wouldn't want a downgrade now, would we? 

Mon, 07/11/2011 - 17:00 | 1445391 knukles
knukles's picture

For all intents and purposes, the EU did that today.  Making them irrelevant with regard to ECB and other EU official financial activities.

Watch.  Without those independent, conflicted, corrupted ratings agencies, the EU'll have to fill the viod that've created, setting up an official governmental agency which will be totally independent, uncorrupted, objective and non-politically oriented.

Fuckin' AAA, man.

Mon, 07/11/2011 - 17:27 | 1445486 centerline
centerline's picture

The Ministry of Ratings.

 

Sends shivers down my spine.    

Mon, 07/11/2011 - 16:54 | 1445360 dumpster
dumpster's picture

unemployment 9.2 while aall th4e headlines are now 16.3..

 

rosenberg is a tweb

Mon, 07/11/2011 - 16:54 | 1445362 Waterfallsparkles
Waterfallsparkles's picture

Tarp, Traders on Pot.  QE1 Traders on Crystal Meth.  QE2 Traders on Direct Inter venous injections of Heroin.

Time for Rehab and no one wants to give up their FREE Drugs and their HIGH.

Mon, 07/11/2011 - 18:35 | 1445693 knowless
knowless's picture

I'll quit drinking the second how hard I work translates to how much I make.

Mon, 07/11/2011 - 17:31 | 1445363 TheForgottenMan
TheForgottenMan's picture

Thank God for the Central Planners! Were would we be if the greedy employers were left unmolested to reward lose who earned it instead of those defense contractors, niggers and bankers selected by Washington?

Mars?

Mon, 07/11/2011 - 19:26 | 1445835 strannick
strannick's picture

If you substitute 'white-trash dorks' for 'niggers', you increase the truth-quotient of your statement.

Tue, 07/12/2011 - 02:47 | 1446898 Troll Magnet
Troll Magnet's picture

Jesus Christ, man, what is WRONG with you?

Mon, 07/11/2011 - 16:56 | 1445367 Random_Robert
Random_Robert's picture

"Hmmm... demand destruction and currency debasement have always so bullish for nominal economic growth. What's going wrong this time?"

- BS Bernanke

 

Here's a hint, Ben- you live in the REAL world.

 

Mon, 07/11/2011 - 16:57 | 1445369 dumpster
dumpster's picture

the fed while just fund foreign banks toi buy bonds a rose by any other name is still a rose

 

 

Mon, 07/11/2011 - 16:58 | 1445381 Lord Welligton
Lord Welligton's picture

You have to love the optimism but at the same time be a tad worried about the high level of denial out there.

Why?

Optimism can be a disease.

http://www.youtube.com/watch?v=tWfDm_bqwUU

Mon, 07/11/2011 - 16:59 | 1445390 rsnoble
rsnoble's picture

I paid nearly $30 for a can of coffee and a pack of porkchops today.  Nope, no inflation lmao.

My personal thoughts are this BS budget deal in some sort of combination of quanitative ass fucking is going to result in the final push up in this POS market and that's finally gonna be the end of this cum drenched rally.

Mon, 07/11/2011 - 17:03 | 1445398 becky quick and...
becky quick and her beautiful mouth's picture

no shit. i filled up my truck with gas last night (local grocery chain has gas as well), bought a 6 pack of craft beer, and 2 steaks.

$117

no inflation, riiiiiiiight.

Mon, 07/11/2011 - 17:11 | 1445432 rsnoble
rsnoble's picture

Yep, speaking of which I need to get off my ass and order the brew making equipment.  Thought I would learn to make wine this year, here I sit with 3 loaded peach trees ready to pick and still haven't got around to it.  I regret that this could be the year I pay the price for putting it off.  I will say I just planted the other half of the garden in turnips.  God forbid if it got that bad!

Mon, 07/11/2011 - 18:28 | 1445659 Cthonic
Cthonic's picture

Skip the wine and go straight for a still.  Simpler, easier to hide, and you'll have the best swill, er schnapps for miles!

Mon, 07/11/2011 - 19:08 | 1445711 knowless
knowless's picture

do both, once you get it going you can have continuously maturing batches of beer/wine(if you plan it right, they come ready when you'de want to go to the store anyway) you can fund this diversity by selling to neighbors of varying tastes. pretty sure this is all untaxable and legal, like growing your own tobacco, but not sure on state laws, if you even care.

 

in addition; curing tobacco is as simple as smoking meat(although somewhat different), if you have a proclivity towards either I would suggest both, for both personal consumption and sale. curing tobacco is an art form of course, and because most people are hooked on the consumer chemical infused brands, it might be hard to judge, but it's worth the time if you can find a market(tobacco is cheap as fuck if you have land, the majority of a pack is taxes, just like weed). If i had a few acres, some money and time, either of these would be right at the top of my list, next to jams and honey of course.

 

http://www.coffinails.com/curing_tobacco.html

http://bbq.about.com/cs/barbecuetips/a/aa041799.htm

obviously, your own research will best suit your needs.

Mon, 07/11/2011 - 17:16 | 1445439 nope-1004
nope-1004's picture

It's transitory.

Or is it transient?

Or transvestite?

Oh whatever.  It's all spear headed by a bunch of cross-dressing bankers.

Keep Pimpin' Benny!

 

Mon, 07/11/2011 - 17:59 | 1445569 steve from virginia
steve from virginia's picture

The beer, the coffee, the pork chops are simply petroleum in drag. Add the real petroleum and you have deflation.

$100 on food/gas instead of $40 is $60 not spent elsewhere. That 'elsewhere' winds up going out of business. More unemployment, meaning fewer customers for beer, coffee, porkchops and gas. To keep the doors open the grocer has to raise prices to make margin.

The Fed made the mistake back in 2004 of calling high fuel prices 'inflation'. You will note they aren't making the same mistake this time around. Note the ECB has made the mistake and the EU credit scheme is imploding.

This is what energy constraints do: they hollow out credit even as businesses price themselves into bankruptcy. Given enough time all businesses wind up bankrupt.

QE is counterproductive, btw. Can't solve and energy problem w/ money, only conservation.

 

Mon, 07/11/2011 - 17:17 | 1445445 Lord Welligton
Lord Welligton's picture

Give up coffee?

Eat more pork chops.

Buy cooking apples.

Sweat them in a little water.

Add sugar.

Apple sauce for a fifth of what you buy it for in a jar.

 

Make your own beer.

Mon, 07/11/2011 - 17:02 | 1445396 kito
kito's picture

as long as stocks stay at these levels, no qe. bernanke knows throwing more liquidity into the picture wont impact employment. its about making the stock market look pretty so our paper prosperity continues. the only way qe comes soon is if bond sales are dreadful and force yields up. but with europe imploding, our bonds will be the near term safe haven with plenty of demand. my vote is still no qe3 for 2011.

Mon, 07/11/2011 - 17:04 | 1445400 Jim in MN
Jim in MN's picture

QE3D

It's just logical (if you wear the special glasses, squint, and imagine real hard).

Mon, 07/11/2011 - 17:08 | 1445403 dwdollar
dwdollar's picture

All one has to do is walk down main street and talk to some real business owners.  You know, the ones who don't receive bailouts for incompetence.  It's not that hard.  But, it does require one to be human.  Not an arrogant no-nothing Ivy League prick.

Mon, 07/11/2011 - 17:06 | 1445407 More_sellers_th...
More_sellers_than_buyers's picture

There HAS to be a QE3...If we don't buy our worthless shit bonds than wo will??The tooth fairy?

Mon, 07/11/2011 - 17:06 | 1445410 ljag
ljag's picture

I just want the market to last long enough for me to realize a small profit on my junior mining stocks that I've been holding since '04. Somehow I get the feeling that that ain't gonna happen tho.......boohoo!

Mon, 07/11/2011 - 17:06 | 1445411 Lord Welligton
Lord Welligton's picture

You have to love the optimism but at the same time be a tad worried about the high level of denial out there.

Why?

Optimism can be a disease.

http://www.youtube.com/watch?v=tWfDm_bqwUU

 

Mon, 07/11/2011 - 17:07 | 1445413 nantucket
nantucket's picture

it will be different.  it will have a newspeak name to make it sound benign and needed (the exact opposite of reality)...something like "ongoing contingency operation",...no, that's been used.  It will be something that on the surface doesn't appear similar to QE1 or 2 and the Bernank will be able to not laugh when he says he's "not doing a QE program". 

Mon, 07/11/2011 - 17:08 | 1445418 csmith
csmith's picture

The Euro should've collapsed 8 months ago. It didn't because the Fed funneled $600 billion into the European banks since November as part of the much-vaunted QE2. Hoarding and risk aversion are the order of the day. QE3 would simply enable more of the same.

Mon, 07/11/2011 - 17:09 | 1445422 John Law Lives
John Law Lives's picture

How long until the troglodytes in Washington D.C. tell us all that the Earth will seize up and stop rotating if we don't get QE3?

Charlatans!

Mon, 07/11/2011 - 17:16 | 1445440 MiningJunkie
MiningJunkie's picture

It is a "race to the bottom" in the purchasing power of cash so just be short FRN's and you will be fine. Buy shares in the 2011 Klondike Gold Rush and enjoy the ride!

Mon, 07/11/2011 - 17:17 | 1445442 km4
km4's picture

Does QE3 come with peas ;)

Mon, 07/11/2011 - 17:18 | 1445450 Lord Welligton
Lord Welligton's picture

Yes.

And they're $100 a pound.

Mon, 07/11/2011 - 17:23 | 1445467 swissinv
swissinv's picture

hmmm Tyler's best friend announcing QE3?

Mon, 07/11/2011 - 17:25 | 1445476 papaswamp
papaswamp's picture

Notice the trend downward of the maximum.

If a QE3, powers that be believe we can pull out of it. No QE3...they said 'fuck it' let it crash...and world of hurt is sooner rather than later. The reset button will have to be pushed at some point.

Mon, 07/11/2011 - 17:33 | 1445504 lesterbegood
lesterbegood's picture

QE no longer matters, if it ever did...the People no longer have confidence in the CONfidence scheme...this sucker's goin' down...and FEDCORP knows this...just buying a little more time...for what?

Mon, 07/11/2011 - 17:33 | 1445507 overmedicatedun...
overmedicatedundersexed's picture

went to my bank with which I have a 0 balance home equity loan account..I have no debt. I told them I would borrow 60% of the max with the following: they pay me for my super saver account interest of 0.1%, i will double their interest they pay me on the 60% loan and pay them 0.2% interest on the loan..guess what they said no. they wanted 5.5% adjustable. something seems outta wack...I was trying to stimulate the ecomony but they won't play.

why can't I get the deal the banks get?

Mon, 07/11/2011 - 19:36 | 1445882 strannick
strannick's picture

You can do better. Take all the credit they give you and buy silver. Incremental bank interest payments for max silver appreciation

Mon, 07/11/2011 - 17:33 | 1445510 SwingForce
SwingForce's picture

This is not the QE you are looking for.......

Quote Sheila Bair: “Why did we do the bailouts?” she went on. “It was all about the bondholders,” she said. 

Mon, 07/11/2011 - 17:35 | 1445519 Double down
Double down's picture

Tyler, I think you should put on a naming contest for QE3.  A "rather than calling it QE we will call it a ...." 

It could be really funny.   

Mon, 07/11/2011 - 17:37 | 1445522 SwingForce
SwingForce's picture

Mon, 07/11/2011 - 17:42 | 1445534 Juice Box
Juice Box's picture

QE3 is already here!  It is called inflation.  Inflation is really running at 8%-12% right now per shadow stats.  Eventually, this inflation will be passed along by increased wages as workers demand wages they can pay their bills with.  Debt reduction is done by the ravages of inflation.  This is the only weapon left the Fed has that can do anything.  The Fed will now talk an anti-inflation game, but will let inflation steadily climb as this will encourage consumption and will help debtors repay.

It is the only option left.  They have no other ways to get us to spend and reduce debt at the same time. 

Mon, 07/11/2011 - 17:47 | 1445545 Robslob
Robslob's picture

EVERYBODY IS "JONES'ING" FOR QE 3

Even Rosenbuuurrg...

Mon, 07/11/2011 - 18:18 | 1445632 Ignorance is bliss
Ignorance is bliss's picture

Dual Mandate of the Fed: 1. Keep the ponzi going at all costs

2. Run like hell when the SHTF

Mon, 07/11/2011 - 18:36 | 1445700 Cthonic
Cthonic's picture

Makes one wonder what was discussed in Iqaluit last year.

Mon, 07/11/2011 - 18:43 | 1445714 slewie the pi-rat
slewie the pi-rat's picture

the poor banksters!  they have spent damned near all our money, and then some, when japan suffers black swan bonanza and we just get the multi-trillion-dollar stagnation in the econom.

what about QE III?  clearly, our satanic chair-hole would have improved digestion if the fiscal situ of the US budget def-con improves.  hahaha!  that is the problem with these pesky post-fraud market collapses and bullshit bail-out schemes!  the same problem as any other slowdown.  debtors can't pay their debts!  overall.  there is no "extra, for vinnie's vig"...

the poor, the sick, and the old are already being wiped out, while blamed.  and people "in debt" get help, as the wealth is transferred from those above & below.  at zH, it seems to me that it has been pretty clear to many for quite a while now that no QE III = systemic collapse.  and now more and more folks are starting to see collapse as the best option, overall.  inevitable, really, one way or another, given this situ ripening further, in space-time.  economic collapse and re-ordering will get the pork out, by golly! 

when the system collapsed, TPTB re-fi it.  on us.  if they had not, they would have been imprisoned for fraud & ponzi.  now, they are still running us into the financial wood-chipper, and, they are still in charge, free, and getting richer, for wiping us out, except in fuking green stamps. re-fi, re-fi, re-fi. 

when our system victimizes others, we can learn to look the other way & live with it.  when it victimizes us, we have moral hazard. 

peace.

Mon, 07/11/2011 - 18:54 | 1445750 gmrpeabody
gmrpeabody's picture

"the poor, the sick, and the old are already being wiped out, while blamed."

Good call, Mr. pi-rat!

Mon, 07/11/2011 - 18:42 | 1445716 lizzy36
lizzy36's picture

Read my lips:

NO QE3 IN 2012.

Full disclosure:I have gone double or nothing on this bet.

Mon, 07/11/2011 - 18:49 | 1445735 slewie the pi-rat
slewie the pi-rat's picture

very clever, canadian cartoon creation. 

i was about to place a market order on the dec call option on yer panties, when i realized that by 2012, QE III will have ended two turkeys and a pumpkin ago. american turkeys.  when is canadian new year's?   

Mon, 07/11/2011 - 18:52 | 1445744 eddiebe
eddiebe's picture

I keep hearing the phrase: 'Keep in mind that the Fed, unlike the European Central Bank, has a dual mandate..the one pertaining to the goal of full employment..' The other one is of course keeping inflation down.
The fact that the fed has let the $ erode by 98% since it was allowed to exist in the USA in 1913, gives them no credibility that they care one whit about the high unemployment rate, let alone inflation.

Any one that thinks banksters care about anything other than getting more wealth and power also has very little credibility with me, no matter how many facts they cite or charts they show.

Mon, 07/11/2011 - 19:18 | 1445819 jomama
jomama's picture

so, we've all heard the sky was going to totally collapse when QE2 ends... only, it hasn't.  anyone have an inkling when this fabled day of reckoning will arrive?

or will TPTB (or players) with skin in the game step in and pick up the slack so the music doesn't stop?

Mon, 07/11/2011 - 19:37 | 1445885 sasebo
sasebo's picture

Just hold onto your ass with both hands.

Mon, 07/11/2011 - 19:49 | 1445890 sasebo
sasebo's picture

7

Mon, 07/11/2011 - 19:49 | 1445892 sasebo
sasebo's picture

6

Mon, 07/11/2011 - 19:48 | 1445894 sasebo
sasebo's picture

5

Mon, 07/11/2011 - 19:48 | 1445896 sasebo
sasebo's picture

4

Mon, 07/11/2011 - 19:47 | 1445897 sasebo
sasebo's picture

3

Mon, 07/11/2011 - 19:47 | 1445898 sasebo
sasebo's picture

2

Mon, 07/11/2011 - 19:46 | 1445901 sasebo
sasebo's picture

1

Mon, 07/11/2011 - 19:54 | 1445949 Weisbrot
Weisbrot's picture

when the debt ceiling gets increased in a couple of weeks thats when we see the QE, via the increase......... tah dah!

 

Mon, 07/11/2011 - 21:03 | 1446131 dcb
dcb's picture

yes more Qe to cause more pain. notice eachand every time he pumps the system with liquidity it ends up hurting the situation towards the end of it. If he hadn't done a thing we've had had slower asset price increases, lower fuel and food costs, etc. It's the Qe and liquidity that keeps causing the weakness in the end. if you don't believe me Big bad ben threw in a huge amount of liquidity at the early stages of the crisis, oil to 147, a normal recession tirned into a commicity induced recession like the 73 oil crisis. situation made much worse than it would have even been. ben just keeps making things worse and worse, and worse. if something doesn't work three times try try again. einstein called that insanity.

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