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Evans-Pritchard Announces Fed Contemplating $5 Trillion QE Expansion

Tyler Durden's picture




 

In his latest column, the Daily Telegraph's A. Evans-Pritchard does a good job of recapping all the various reasons why Bernanke has now completely cornered himself, and facing a newly collapsing economy, is left with just one recourse: the printing of more, more, more paper. This should not come as a surprise to anyone who has read even a few posts on Zero Hedge - the only response the Fed is left with as deflation accelerates, and as the Fed and the banking cabal refuse to do an orderly reorganization whereby financial firms grow into their balance sheets via a debt restructuring (and equity wipe out), is the spewage of more, inflation-stimulating, fiat. Ironically, as this newly printed and rapidly diluted monetary representation (because it increasingly is not equivalent to money) makes its way only and almost exclusively to those with direct discount window access, i.e., the mega banks (and for some ungodly reason, the clearinghouses soon), the assets that will be bid up are all tangible commodities, while secondary assets, which are contingent on a properly functioning reserve banking (money multiplier) system, collapse in a deflated heap of liquidations. Yet one notable section in AEP's post draw our attention: "Key members of the five-man Board are quietly mulling a fresh burst of asset purchases, if necessary by pushing the Fed's balance sheet from $2.4 trillion (£1.6 trillion) to uncharted levels of $5 trillion." We are very curious where the DT's reporter has found this information, since if it comes from a credible source this is a massive game changer, and while many have speculated this will happen sooner or later, to know for a fact that QE is definitely coming is major news, and, if true, we are stunned the WSJ's Jon Hilsenrath, who recently has had his ear "very close" to the Fed's internal process, has not reported on this yet.

Incidentally, the $5 trillion number was referenced previously on Zero Hedge in a post by RBS economist, and uber-realist, Bob Janjuah, as follows:

All that's now left, as I have said before, is for the Fed to shift to
a USD5trn or so new QE programme, likely in co-ordination with a bunch
of other central banks, which in total may give us USD10trn or more of
new QE. But this isn't happening until much much later this yr or, more
likely, next yr.

We agree with Bob: the next QE phase will most certainly not occur before the midterms, which as the recent abdication of a national budget demonstrated, are a critical priority for the administration, over and above the telegraphing of the country's catastrophic state to the general population, which is precisely what a nuclear monetary blast would be (let alone a new fiscal one - it is no incident that today, for the first time, a new $35 billion unemployment stimulus bill crashed in the Congress after it could not muster enough votes). Therefore, we are confident that the Fed has its hands tied well until December, although we anticipate a January lift off date for QE version 2 and final, which, as Bob Janjuah notes, will likely come in collaboration with every single central bank in the world, in one last (failed) reflation attempt: the final spasm for the Keynesian religion.

(Recommended reading: Bob Janjuah Prepares For A Sell Off To Below 850, And A Coordinated $10 Trillion Quantitative Easing Part 2)

 

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Fri, 06/25/2010 - 00:42 | 432952 TuesdayBen
TuesdayBen's picture

Don't you ever sleep?

Fri, 06/25/2010 - 01:51 | 433068 London Dude Trader
London Dude Trader's picture

The markets never sleep.

Fri, 06/25/2010 - 02:21 | 433087 epsilonphase
epsilonphase's picture

i think the correct response is "money never sleeps pal"

 

 

Fri, 06/25/2010 - 07:58 | 433282 Inspector Asset
Inspector Asset's picture

seen today at www.WallStOnion.blogspot.com

 

Al Gore, Global warming in his pants?

 

Al Gore was recently described as a "Crazed Sex Poodle" in this article at the Smoking Gun. The licensed masseuse reported that Al Gore repeatedly groped her and Frenched kissed her before pinning her to the bed and humping her like a"crazed sex poodle." Apparently all this talk about global warming, was causing Al Gore to over heat in the genital area, causing volcanic like eruptions from Al's penal member. The spew, subsequently dried on the licensed masseuse black slacks and is now considered evidence. Al Gore was at Hotel Lucia, in Portland Oregon when this alleged sex crime took place over 2 years ago. It is not the first time the Al Gore has been accused of such accusations. In fact his wife, Tipper, just left him in June for similar reasons. Tipper claims that she would routinely wake up to find Al humping her leg like a "crazed sex poodle." "It was cute for a couple years when we first got married but it gets old after awhile" explains Tipper Gore. Some are wondering if global warming itself has contributed to the sex crazed state of Al Gore or could it be, just all the talk of global warming has put a heavy undue burden on Al Gore, and the pressure has gotten to him. Or could it be just being rich and famous makes people feel above the law, legal or moral? This incident puts a crack into Gore's character, that is if he had any to begin with. With something like global warming, where the verdict is still not in, and the debate rages on, we turn to experts and trusted politicians for guidance. When the head spokes person, for the movement, the man who invented the movement, turns out to be a crazed sex maniac with violent inclinations, we have to question weather we can trust this mans agenda with global warming. I say, along with the Czech President, that the whole global warming thing is a fraud. A fraud created to get more(total) control on the populace, while creating Ponza schemes (Carbon Tax Credits) to enrich the bankers again. In the end all will pay with new carbon taxes on everything. This will be the first elitist scheme to entangle the entire world and be executed from a single agency(institution). It is socialism with a green flag on it. Al Gore, and his obnoxious behavior is just a symptom of the attitudes of these elitist and their bogus science and paid experts. Al Gore should check himself into Obama's "Behavior Modification program" for sex and for food. Or at the very least, call Tiger Woods, and get some recovery pointers.
Fri, 06/25/2010 - 08:00 | 433288 Turd Ferguson
Turd Ferguson's picture

"I just made a hundred thousand in Hong Kong gold. Play with it."

Fri, 06/25/2010 - 00:42 | 432953 RaymondKHessel
RaymondKHessel's picture

Explains the PIMCO equity interest.

Fri, 06/25/2010 - 00:43 | 432956 A Clear thinker
A Clear thinker's picture

I have to wonder, what do they know is coming...

Fri, 06/25/2010 - 01:24 | 432982 RoRoTrader
RoRoTrader's picture

support below and Evans Pritcard is such a dork.

Fri, 06/25/2010 - 01:27 | 433036 A Clear thinker
A Clear thinker's picture

Yep... I have tight buy stops, this breaks down from here or I switch to all GLD. Ya can almost smell the oil, massive layoff coming... very sad.

Fri, 06/25/2010 - 02:25 | 433049 RoRoTrader
RoRoTrader's picture

pre-emptive FED strike........Greek Islands for sale.

The $5T is old news........coordinated CB number is $12 to $15 T with all major CBs participating. ZH wrote about this a few weeka ago.

Fri, 06/25/2010 - 03:35 | 433129 Hdawg
Hdawg's picture

i thought it was 15 each for europe and US

Fri, 06/25/2010 - 00:45 | 432958 Shameful
Shameful's picture

It's not like Zimbabwe Ben didn't warn us.  He told us that what he would do with the printing press.  If a lunatic is constantly ranting about how he wants to shoot people and he is given a gun no one really should be suprised by the eventual outcome.

Fri, 06/25/2010 - 01:16 | 433017 DoChenRollingBearing
DoChenRollingBearing's picture

Ding, ding!  Shameful wins the prize tonight!

Beb B has never hid his wish that we never have Great Depression v. 2.

What should your prize be?  Hmm.  How about a stint in law school or a trip to Singapore.  Ohh, wait....

Good seeing you around Shameful!

Fri, 06/25/2010 - 05:20 | 433183 Popo
Popo's picture

Great Hyperinflation or Great Depression 2.0  -- they're both just different flavors of economic collapse -- the difference being that in the former the banks survive and savers are sacrificed.

 

 

Fri, 06/25/2010 - 06:28 | 433201 Miss Expectations
Miss Expectations's picture

Interesting...Bernake as the Good Humor Man.  In the summer of 2012 the popsicles will either be 5 cents or $500.00.  Somehow I don't think Ben is going to make small change. Right now he's selling my favorite childhood flavor, Sky Blue.

Fri, 06/25/2010 - 14:26 | 434013 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Maybe candy stays the same price, but gold's price is in the hundreds of thousands.  "I thought there was gold in Fort Knox, I swear!" -BS

Fri, 06/25/2010 - 07:52 | 433275 Threeggg
Threeggg's picture

Bullseye !

Fri, 06/25/2010 - 05:09 | 433180 johngaltfla
johngaltfla's picture

The problem also for the Fed is that if they DON'T prevent GD II (which they can't) by attempting to hyperinflate, then they will be abolished and the banksters no longer given free reign to play with the monetary supply or interest rates, the mother's milk of the entire financial system. That and cities burning to the ground are probably good considerations when facing a deflationary depression scenario.

Fri, 06/25/2010 - 06:39 | 433211 Ned Zeppelin
Ned Zeppelin's picture

Like Ahmedimijad-a-ma-whatever saying Israel must be wiped from the face of the earth kind of thing?

Fri, 06/25/2010 - 08:34 | 433340 FrankIvy
FrankIvy's picture

No.  Not like that.  Quite the opposite.  Most news sources in the U.S. translate Ben's fedspeak in a manner that reflects positively on him, regardless of the fact that he's a monster who's going to wipe out the U.S.  Ahmadinijad, on the other hand, has his words translated incorrectly and reflects poorly on him, regardless of the fact that he's not a monster, just wants to be left alone, is being constantly threatened by his nuclear armed neighbor, and is not a threat to the U.S..

Fri, 06/25/2010 - 08:50 | 433370 fearsomepirate
fearsomepirate's picture

Yeah, when Ahmadinejad says he wants to "wipe Israel off the map," what he *really* said was, "I want to wipe this smudge off my map," because hey, a guy's map gets dirty from time to time.  But the scrofulous American press, which is manipulated from behind the scenes by greedy Jews following the Protocols of the Elders of Zion, always mistranslates "smudge" as "Israel."  And it's very obvious that the reason this giant, oil-rich country (along with every other Muslim country) can't get its shit together is malicious conniving and plotting in a country smaller than most U.S. states a thousand miles away.  It might seem crazy how a handful of sneaky Jews in a tiny little country can keep around 1 billion Muslims in poverty, but then you are underestimating how sneaky and conniving the filthy Jew truly is.

Fri, 06/25/2010 - 12:56 | 433801 goldfish1
goldfish1's picture

Ahmadinejad, on the other hand, has his words translated incorrectly

Yes. Here's a good analysis:

http://www.huffingtonpost.com/sam-sedaei/the-biggest-lie-told-to-t_b_70248.html

Thu, 07/15/2010 - 08:31 | 470573 GoldBricker
GoldBricker's picture

Like Ahmedimijad-a-ma-whatever saying Israel must be wiped from the face of the earth kind of thing?

When I was a kid in the 1960s I often heard that Kruschev said of America "We will bury you", which was interpreted as a threat. Then in the 1970s I studied Russian and found out that the expression means not to kill, but to out-live, as in "the old lady had buried 3 husbands".

So, unless you know Farsi (as you strike me as the kind of person who knows only English, and maybe some Hebrew), you have to take others' word for it, don't you? And the MSM would never mislead you, would it?

Fri, 06/25/2010 - 00:48 | 432962 the grateful un...
the grateful unemployed's picture

we should buy equities with both hands, and buy on the rumor sell on the news

Fri, 06/25/2010 - 00:48 | 432963 Cursive
Cursive's picture

If the Fed is the only buyer left, I still don't see how that will save the economy.  Prop up financial asset prices maybe, but not stimulate the economy.

Fri, 06/25/2010 - 00:57 | 432987 Ausbroker
Ausbroker's picture

Won't save the economy, but when the crash comes, they want to be holding all the assets

Fri, 06/25/2010 - 01:03 | 432994 thesapein
thesapein's picture

Those aren't real assets the Fed is holding. 

Fri, 06/25/2010 - 01:29 | 433040 Augustus
Augustus's picture

They aren't buying them with real money either.  Eventually they will all have the same value - Zero.

Fri, 06/25/2010 - 08:58 | 433393 fearsomepirate
fearsomepirate's picture

It doesn't matter to them.  All profits of the Fed go into the Treasury.  No one at the Fed is conspiring to hold a wealth of "assets" (the assets are all junk anyway).  They're doing everything they can to keep the bonuses coming to their pals at Goldman Sachs.

Let me give you an alternative theory:  Every head of every major industry believes the economy depends on his industry.  It's just natural.  For example, my father's a diesel executive.  He's been in the diesel industry for almost 20 years and knows it inside and out.  If you asked him, he'd say the country's health depends on his company staying afloat, and he'd mean it sincerely.  Of course, if his company *does* go bankrupt, that's that.

Now, take the guys at the Fed and Treasury.  Their whole lives have been high finance.  Yeah, they're corrupt, but you're missing this other part--they truly believe that if Goldman Sachs goes down, the whole country comes down with it.  It's not just propaganda.  They really believe it themselves.  Now, you take even the most pure-souled guy, if he's a true believer in the economy's absolute dependence on the profitability of Goldman, and give him the unlimited money-printing power of the Fed, what exactly do you *think* he's going to do?

Fri, 06/25/2010 - 13:04 | 433825 Thisson
Thisson's picture

"All profits of the Fed go into the Treasury."

That's not true, they only remit interest received from the treasury back to the treasury.  They get to keep their other profits (e.g. from trading bonds).

Fri, 06/25/2010 - 05:05 | 433179 rsi1
rsi1's picture

Press the restart button and you get a new economy, smaller, but with much less debt, and you can start growing/indebting yourself again.

Fri, 06/25/2010 - 00:56 | 432980 Rusty Shorts
Rusty Shorts's picture

Hells Bells, double or nothing  !!

Fri, 06/25/2010 - 01:00 | 432988 thesapein
thesapein's picture

But can they really hold out until next year?

Fri, 06/25/2010 - 01:08 | 433006 JLee2027
JLee2027's picture

Nope...

 

It's over.

Fri, 06/25/2010 - 07:40 | 433253 TBT or not TBT
TBT or not TBT's picture

You'd think the deflationary signs would be making them twitchy, insomniac, and punchy.  Ben thinks of himself as a student of the Great Depression.   How could he/they sit by through November?

Fri, 06/25/2010 - 01:01 | 432990 Madcow
Madcow's picture

The Dems do not understand what is happening. Frightening blithering babbling idiocy. Barney Frank is totally insane. I just watched him on C-SPAN, explaining that we're going to fight the financial meltdown with sharks and hats.

 

 

 

 

 

Fri, 06/25/2010 - 08:59 | 433396 fearsomepirate
fearsomepirate's picture

But are they bowlers or fedoras?  The country's future depends on it.

Fri, 06/25/2010 - 01:08 | 433002 Kreditanstalt
Kreditanstalt's picture

Oh-oh...

They don't have to do it before November.  The mere TELEGRAPHING of their intentions before the mid-term elections will be enough to have the desired effect.  Don't expect Obongo to do this dirty work: but wait for a hint from Vice-President Geithner or Secretary Bernanke...

Wed, 07/14/2010 - 22:55 | 470100 Amish Hacker
Amish Hacker's picture

No more calls, please. We have a winner.

Fri, 06/25/2010 - 01:07 | 433003 JLee2027
JLee2027's picture

I call BS on the 5 trillion plan.

Fri, 06/25/2010 - 02:35 | 433095 faustian bargain
faustian bargain's picture

Indeed. They might go straight to 8 trillion.

Fri, 06/25/2010 - 05:38 | 433189 Anton LaVey
Anton LaVey's picture

8 Trillion? Tsk tsk tsk, such a lack of ambition.

I think the total QE, worldwide, will probably number in the tens of trillions by the time we are finished.

You know, "A trillion here, a trillion there, and pretty soon, you are talking about some serious money".

Fri, 06/25/2010 - 09:51 | 433476 trav7777
trav7777's picture

Maybe I need a louder avatar to get people to pay attention.

They have to QE the entire credit base.  Otherwise, the math says that the compound interest function will consume the money supply in a cascading sequence of defaults.

They have no choice, as a matter of math, but to print the interest at least.  The marginal utility of debt has gone to 0.

Wed, 07/14/2010 - 18:28 | 469515 NotApplicable
NotApplicable's picture

"They have to QE the entire credit base."

This is what I'm thinking, else you will always have the next weak link still needing to be rolled forward. I mean, if you kick the can, you have to kick the whole can, not just part of it, right?

Oh, and given that all the new debt is just going toward servicing the old debt, doesn't that make its marginal utility negative?

Fri, 06/25/2010 - 01:11 | 433010 yabs
yabs's picture

the criminal

he should be shot on site

he is worse than any bin laden

an economic terrorist

the world should pay 5 trillion to whoever shoots him

Fri, 06/25/2010 - 02:16 | 433083 Hdawg
Hdawg's picture

The whole world is a stage... so the truth is probably somewhere in the middle.

Fri, 06/25/2010 - 12:30 | 433752 Ripped Chunk
Ripped Chunk's picture

Cranky today you are?

Fri, 06/25/2010 - 01:12 | 433014 Caviar Emptor
Caviar Emptor's picture

I knew it! I knew it! The one trick pony will ride again!

It's almost too cartoonish to be real. But that's our Fed! A caricature of a bumbling cartoon clown. 

Good thinking, Ben! One more big shot of Wild Turkey oughta lick them blues but good. Hit us with your best shot! Shock n Freakin' Awe, baby! 

Go for the Quad!....the Quadrillion.

Fri, 06/25/2010 - 01:41 | 433044 DoChenRollingBearing
DoChenRollingBearing's picture

I have known, sort of, what a quadrillion was when I was a kid (you know, the semi-nerdy ones who knew the ranks in the Army, etc.).  Still, even with the size of our country, a quadrillion is a HUGE number.  A million times a billion (American system). 

If that were in FRNs, then the average amount of cash per capita would be an impressive $3,030,000,000 for each American!  [all of these zeros makes it hard to calculate at 1:00 AM, so please feel free to check my math]

Do it Ben!  Makes us all multi-billionaires!  Those of us with any doubts will hold some gold, thank you.

Carry on.

Fri, 06/25/2010 - 01:54 | 433071 Caviar Emptor
Caviar Emptor's picture

Yup, the numbers check. But the Quad Bazooka would put Ben in the record books as the Caligula of Monetary Porn. It would also wipe away all the failed bank balance sheets, all the SIVs, unwind all the potentially toxic derivatives, unwind FNM/FRE/AIG, and the hundreds of lesser dependents on the Fed's largess. The Quad could wipe away the sins of the fathers and of the unholy banks, it could wipe the slate clean of all reminders of the folly of the last 3 decades. Psychologically that would be worth it to many Americans even if a stick of butter costs $25,000. Yes, one could say it would be worth its weight in gold :) Bring it on!

Fri, 06/25/2010 - 08:31 | 433321 cowdiddly
cowdiddly's picture

"The Caligula of monetary porn" Good One, Still laughing. Ben ain't gonna piss around anymore. Round Bales of Benjamins shove out the back of this. I show those mattress stuffing bitches.

http://www.youtube.com/watch?v=IS83TySok5I&feature=related

Fri, 06/25/2010 - 08:36 | 433345 Commander Cody
Commander Cody's picture

Its amazing how fast we blew past trillion$ as significant.  To infinity and beyond!

Fri, 06/25/2010 - 12:33 | 433758 Ripped Chunk
Ripped Chunk's picture

and when he gets to the end, he's gonna start all over again

Fri, 06/25/2010 - 14:38 | 434041 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Ben does not have the taste to sip Wild Turkey.

Fri, 06/25/2010 - 01:13 | 433015 Apostate
Apostate's picture

Just watch the video.

http://www.youtube.com/watch?v=Svf2aWr0hfI

"Money money money. Who do you trust? Me? I'm giving away free money! And where is the Batman?"

He's dead.

"And now, here's the part where I relieve you - the little people - of the burden of your failed and useless lives."

Well played, Mr. Bernanke.

Really, the QE is mostly about shoring up political and corporate support. It's also a foreign policy tool. As we see with Germany, all major world nations are expected to inflate simultaneously to contain the damage to fiat purchasing power.

But some, at least, are resisting the call. Not everyone wants to live through a complete political collapse. 

Fri, 06/25/2010 - 02:50 | 433105 dnarby
dnarby's picture

"All you care about is money.  This town deserves a better class of criminal."

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

"Everything burns."

Fri, 06/25/2010 - 01:20 | 433026 vainamoinen
vainamoinen's picture

The fed bets the farm!

Fri, 06/25/2010 - 04:37 | 433163 LeBalance
LeBalance's picture

the fed bets YOUR farm.

Fri, 06/25/2010 - 10:24 | 433554 Eternal Student
Eternal Student's picture

The Feds bet our Farms long ago and lost. More recently they bet our childrens' Farms.

Now they are going for our grandchildrens' Farms.

Fri, 06/25/2010 - 01:22 | 433029 Brett in Manhattan
Brett in Manhattan's picture

The dismal homebuyer data signals that housing prices have a ways to go before bottoming, putting more homeowners underwater to the point where default becomes the best option.

The banks will have to unload more of their MBSs on the fed.

Fri, 06/25/2010 - 01:24 | 433031 yabs
yabs's picture

I'm serious this is really scary stuff

can you americans get a campaign to stop this insanity before its too late

WE HAVE TO TAKE THE DEFATION

its the only moral and just thing to do

savers will prosper

the feckless go under

thats capitalism

hyperinflation destroys everyone apart from maybe the squid

this shit needs to stop right now. Deflation will be way less painful than hyperinflation

 

Fri, 06/25/2010 - 01:37 | 433051 Augustus
Augustus's picture

There are lessons to be learned from the crashing of bubbles.  Savings are a form of being prepared.  Owning some hard assets is a good inflation protection.

Fri, 06/25/2010 - 02:21 | 433086 Hdawg
Hdawg's picture

you shall have your deflationary wish...but not before your rulers have debased your purchasing power to that of the average chinese labourer unfortunately.

Obama, Head of the UN Security Council "No nation shall be above another." 

Fri, 06/25/2010 - 06:56 | 433223 OldTrooper
OldTrooper's picture

can you americans get a campaign to stop this insanity before its too late

Uhhh...no.

Hope you aren't relying on the US to do anything effective.  Hell, I'm not and I live here!

Can we get a campaign to stop this...that is funny!

Fri, 06/25/2010 - 08:29 | 433335 FrankIvy
FrankIvy's picture

Wow.  Can "you Americans get a campaign."

Us Americans?  How familiar are you with American culture?

The majority of Americans are poorly informed and poorly motivated.

Like Joey from Friends.

Like the people on the star cruiser in Wall-E.

Like Dim from Clockwork Orange.

Like Dan Conners from the Roseanne sitcom.

Like Betty White from Golden Girls.

Get a campaign together?

Try this.  I'd bet my next paycheck that 99% of Americans couldn't do the following three things:

Find Iran, Iraq, and Afghanistan on an unlabeled map.

Spell the word "campaign".

Tell you the official name of the U.S. Central Bank.

 

Does that help?

 

You remind me of a story my mom used to tell.  She was swimming on Jones beach and she was being pulled out by a rip tide.  She was so far out she started to worry that she would be lost at sea, as she couldn't make out any people on the shore.  She noticed a man also caught in the rip tide near her, so she yelled out, "sir, sir, please help me."

He yelled back, "Jesus Christ lady, I'm getting pulled out too help yourself.

Fri, 06/25/2010 - 11:22 | 433678 RockyRacoon
RockyRacoon's picture

Good stuff, Frank.  Thanks for the clarity.  Keep comin' back.

Fri, 06/25/2010 - 10:31 | 433571 Eternal Student
Eternal Student's picture

Most Americans are wholely part and parcel of the corruption. They are very heavily invested in it, and as much of the problem as are the Bankers.

You have obscene Pensions. Inane Housing prices boosted by cheap loans from the Feds. This constitutes the major asset classes of most Americans. Do you seriously think you're going to get them to change their minds when they are so heavily invested in this? That's one key reason why they keep electing leaders who promote the problem.

Wishing for the majority of Americans to come to their senses is like wishing for the Bankers to give up their bonuses. It's not going to happen willingly. And unless you understand the extent of the problem, you're not going to be able to understand why it's going on.

 

Fri, 06/25/2010 - 01:25 | 433033 old naughty
old naughty's picture

Not sure how Big Ben could find a copter big enough to throw the newly printed greenbacks down...But then that's just me wondering. 

Fri, 06/25/2010 - 01:39 | 433054 DoChenRollingBearing
DoChenRollingBearing's picture

Nonsense!

BB can do it with the new $1,000,000 "Obama" FRNs being planned!

Though you might still need the heavy lift military choppers to dump the $1,000,000 bills by the pallet loads into the cities....

That doesn't work, print up some Ben Bernanke notes of $10,000,000.  Or $100,000,000 if need be.  No problem.

...

Any doubters?  Just hang onto your gold.  Buy gold before you see all the zeros....

Fri, 06/25/2010 - 05:39 | 433190 Alcoholic Nativ...
Alcoholic Native American's picture

You guys knock Obama, and make this shit up, but forget that Bush really did do this to spur the economy.  I guess it's ok if it's not actually in this country.

 

Obama should do a magazine interview slamming the United States gross corruption.  And then resign.

Sun, 06/27/2010 - 03:34 | 433218 Ragnar D
Ragnar D's picture

Sure, if you leave out the part where the socialists have held Congress for the past 4 years.  And Barry was sitting in Chicago pushing the same thug-government policies.

Bush and Nancy teamed up to bring us a record-setting 400bn deficit.

Barry saw his 400, and raised him 1600bn.

 

Whatever he "inherited", he injected with steroids and handed a bag of crack.  Don't pretend he's any different from the rest of the control freaks who ran Chicago into the ground.  We're peons, anyone with a real career is the evil "rich", and his only solutions are ones that rob us blind, give the Anointed Ones more control over our lives, and buy votes with more dependency programs.

 

He's working off the Detroit (Newark, Baltimore, Philly, New Orleans) model.

Fri, 06/25/2010 - 07:15 | 433235 OldTrooper
OldTrooper's picture

You know what Obama was before he became our President?

He was a fucking Senator!  If he had any good ideas why didnt he write a bill to really fix something back then?  Hmmm?

McCain was no better.  Both of them wandered around saying, "When I'm President..."  Like they were holding back all of their really good, workable fixes until we gave them the presidency.

For better or worse, Obama is the President, his hand-picked guys run everything, and his allies control congress.  Sounds like he's 'in charge' now.  When you are in charge you get all the credit ... and all the blame.

Fri, 06/25/2010 - 11:02 | 433663 Eternal Student
Eternal Student's picture

Sorry, that's not going to be done. Inflation is debt repudiation. While you can do a little bit of it at a time, wholesale debt repudiation will cut you off from the Bond Markets.

That's just not going to happen, and anyone thinking that it is is just kidding themselves. There's way too much incentive to have access to those markets. Especially if you're heavily dependent upon International Trade just to survive (as in Oil).

Fri, 06/25/2010 - 01:34 | 433046 Printfaster
Printfaster's picture

My only question is:

Is it $5 trillion American, or $5 trillion British?

It does make a difference, but somehow doesn't seem to matter anymore.

http://eyeful-tower.com/muse/billion.htm

Fri, 06/25/2010 - 05:40 | 433191 Anton LaVey
Anton LaVey's picture

And the first thing that crossed my mind as I read this was: "It depends, is it an African swallow or a European swallow?".

Thanks for the laugh.

Fri, 06/25/2010 - 01:34 | 433047 Cheeky Bastard
Cheeky Bastard's picture

Munis and ARMs

Fri, 06/25/2010 - 02:34 | 433093 RoRoTrader
RoRoTrader's picture

California and New York vs Greece, Portugal, Spain and and my homeland. Pray or prey.

Fri, 06/25/2010 - 02:57 | 433108 Cheeky Bastard
Cheeky Bastard's picture

Pour moi; definitely a prey. IL needs to rely on BABs [which most states/munis shun being they are taxable] to fund itself; and that may not be enough since every new BABs auction IL conducts necessitates IL offering higher and higher yields to find demand. MCDX is unfazed by the movements in IL and CA debt and CPDs [traders are idiots] with absolutely no volatility in either the index components, and the skew is so negligible that every arbitrage is basically a loss of time. NY is still fairing well due to its tax structure and the overall weight it has in the national GDP output, ditto CA. IL is toast since the revenue streams are either all put into servicing old debt or defined in GO BABs as revenue streams, thus serving a dual purpose only prolonging the inevitable. Unless FED decides to serve as a  monoline for IL, while implicitly enhancing its overall credit rating or outright guaranteeing all IL bonds outstanding 100 c/$ IL will default. It can not play the spread as USA does nor can it pay IR using external revenue streams. GR, CA are n the same shape, but GR has an advantage that all of its debt outstanding is an unsecured debt; while CA and IL do not have such luxury. If indeed FED is trying to inflate its BS to 5T [10T] maybe expected both the monetization of muni bonds outstanding and all new issuances which will surely skyrocket in both the volume and the value if FED guarantees/buys back on the secondary market/agrees to use as a collateral in REPOs with financial institutions. The old rules about probability and distribution of default in muni bonds are no longer valid; we are entering into uncharted waters; and when the tide goes out; we will see who has been swimming naked this whole time.

Fri, 06/25/2010 - 03:58 | 433130 RoRoTrader
RoRoTrader's picture

You are way over my head Cheeky, but thank you so very much for the spot.

Yesterday, I had the priviledge of being given the opportunity to provide bail to an innocent man. I took it. It is one of the better things I have done in my life and maybe a way of of paying forward for the things I have done wrong in my past. Hopefully.

You are a great talent Cheeky and thank you again so much. Sincerely.

Irish bastard.

PS........I think when the  CA and NY shit hits the public fan the pretense of the recent and sudden European findings of fiscal responsibility will be put into perspective.

Bon Saint Jean Baptiste, Cheeky.

Fri, 06/25/2010 - 06:10 | 433202 exportbank
exportbank's picture

Cheeky... great comment - the naked truth.

Fri, 06/25/2010 - 09:55 | 433482 trav7777
trav7777's picture

I am with you on everything here.

The Fed is going to print the coupon.  Expect that.  Global coupon now paid by monetization.  This will status quo the compound parasitic drag.

They are required mathematically now to forgive debt at the rate GDP begins to contract and print the coupon.  There is no growth in the aggregate system.

Thu, 07/15/2010 - 08:42 | 470587 GoldBricker
GoldBricker's picture

Cheekster,

On the inflation/deflation ad nauseum thing, what do you think of Gary North's hypothesis that the reason that the bailouts (broadly defined) have not much increased inflation is that the Fed is paying interest on excess reserves? If you accept this, can the Fed goose inflation merely by reducing or eliminating that interest?

Fri, 06/25/2010 - 01:38 | 433052 Rusty_Shackleford
Rusty_Shackleford's picture

I've said it before and I'll say it again, before this is over, the Fed will attempt to purchase every financial asset on earth.

Fri, 06/25/2010 - 01:45 | 433061 Printfaster
Printfaster's picture

Completely wrong.  The fed will never buy a real asset.  They will only buy liabilities and relabel them as assets.

Makes for a neat balance sheet.  No matter how bad the fed balance sheet is, all they  have to do is find a couple more electrons and send them out, and they are covered.  They can even print the money to pay for the money that the Treasury dept prints.  Ahh the joys of ink and electrons.  Paper into gold, and computer screens into porn at the SEC.

 

Fri, 06/25/2010 - 01:52 | 433069 thesapein
thesapein's picture

It's like it has little choice now but to start eating some of it's own vomit.

Yeah, how does that taste, Ben?

Fri, 06/25/2010 - 01:53 | 433072 thesapein
thesapein's picture

It's like a snake eating its own tail.

Fri, 06/25/2010 - 01:39 | 433053 MGA_1
MGA_1's picture

So, what happens to all the assets the fed purchases and who will get an attempt to bid on them?

Fri, 06/25/2010 - 01:42 | 433059 Brett in Manhattan
Brett in Manhattan's picture

Umm. Umm.

Fri, 06/25/2010 - 01:52 | 433070 Burnbright
Burnbright's picture

There will be no one left to bid, which is why his inflationary policy is shear lunacy. He is single handedly destroying the market. What is the value of anything when more than 99% + have no money to buy anything? Everything becomes worthless when you are the only game in town. Its like jerking yourself off trying to get laid.

Fri, 06/25/2010 - 06:50 | 433221 Ragnar D
Ragnar D's picture

They think they're bidding up their own eBay auctions.

What they're really doing is emailing themselves about their own Craigslist ads.

Fri, 06/25/2010 - 07:17 | 433240 Ungaro
Ungaro's picture

Or, breathing their own exhaust.

Thu, 07/15/2010 - 08:46 | 470600 GoldBricker
GoldBricker's picture

and who will get an attempt to bid on them?

You might rather ask "who will want to bid on them?" After all, if they had real value, why did the Fed have to buy them? If the asset is worth (generously) 10 cents on the dollar, it will be easier for the Fed to keep pretending than to sell and realize the loss.

Fri, 06/25/2010 - 01:39 | 433055 lynnybee
lynnybee's picture

they are all just creeps, awful people .... i'm sick to death of these people.  whatever they touch turns to ruination. 

Fri, 06/25/2010 - 01:41 | 433057 Hansel
Hansel's picture

Is the Fed 'contemplating' or has the Fed decided and now Evans-Pritchard is doing the necessary pre-hype?  It's not really a trial balloon if the Fed has already committed.

Fri, 06/25/2010 - 02:26 | 433089 Hdawg
Hdawg's picture

It's already understood that Europe will do the same.

Fri, 06/25/2010 - 01:42 | 433058 yabs
yabs's picture

pitchard evans gets some good info but he agrees with the keynesian policies I can tell

he is a prick

Fri, 06/25/2010 - 01:43 | 433060 Alcoholic Nativ...
Alcoholic Native American's picture

That's a surprise!

Fri, 06/25/2010 - 01:47 | 433064 reckoning
reckoning's picture

this move will ensure only 1 term for this obamanation of an aministration... tough call for ben.... definately political suicide... but he does truely believe it is the way to go... he has expressed that fact ad nauseum...

 

i would wonder if the admin can keep a lid on him until they feel as though they have secured their own re-elction aspirations... i am sure the power hungry politicos will let the economy suffer terribly, and let the stock market slide right back to the lows of 3/09 if it means they get re-elected...

 

the true powers that be... the private share holders of the US federal reserve bank... are watering at the mouth!... more intrest collected!... more debt for us slaves to service...

 

why can't i buy just 1 share!... oh, right... i have friggin morals!.. is there some proceedure to cut those out?... moralectomy?

Fri, 06/25/2010 - 02:24 | 433067 Rusty Shorts
Rusty Shorts's picture

Paper Money - Montrose (Midnight Special 1974)

http://www.youtube.com/watch?v=xVJ6JR4OeiU

Fri, 06/25/2010 - 02:01 | 433075 realitybiter
realitybiter's picture

I had a friend whose wife had a beloved sick dog.  The dog had cancer.  Bad.  The vet looked at the husband and said, "we can give the dog a blood transfusion and that might work."  $3,000  For two days the tail wagged, sparkles was happy and the husband go action.  Day three, sparkles goes down.  Sick.  Very tepid tail wag.  The wife says, "But the blood transfusion worked, I saw it.  You saw it.  Lets do it again, we must!"  $3,000  This went on two more times.  My friend was sick with senseless destruction of capital.  The net?  Bought Sparkles 3 weeks.  $12,000 went to a vet.  $12,000 left my friend.  We are only delaying the inevitable, and destroying capital.

Fri, 06/25/2010 - 02:51 | 433107 dnarby
dnarby's picture

(Insert quip about dog years here)

Fri, 06/25/2010 - 09:57 | 433486 trav7777
trav7777's picture

Your friend should have been, like, a MAN or something and put his foot down.  I'd have shot the dog myself, it was the humane thing to do

Thu, 07/15/2010 - 08:48 | 470607 GoldBricker
GoldBricker's picture

Good analogy. Thanks.

Fri, 06/25/2010 - 02:12 | 433078 Quinvarius
Quinvarius's picture

Is this finally the bazooka?  I keep thinking he fired it already.  Then he pulls out something even bigger.

Fri, 06/25/2010 - 02:39 | 433097 Hdawg
Hdawg's picture

Europe are already talking about doing another $5T .

The final bazooka is a further $15-20T in both Europe and US in order to debase the currencies enough to take western workers purchasing power down to the same level as a chinese labourer.  Then we'll get the deflationary depression.

Obama, Head of the UN Security Council "no nation can be above another".

It's not like this globalist puppet has not been upfront about it.

Fri, 06/25/2010 - 07:04 | 433228 reading
reading's picture

They might pull out the bazooka, but forgot the ammo...

Fri, 06/25/2010 - 02:17 | 433084 old naughty
old naughty's picture

Was Sparkles happy, for 3 weeks? Guess his owners weren't...

I thought the "t" are for hard drives, they grew big over the years...and now its for creating assets out of debts --- real fast. Hum.

Fri, 06/25/2010 - 02:31 | 433090 jd2iv987
jd2iv987's picture

anyone else notice an influx of new ZHers?

 

more specifically 3 weeks and 2 days ago?

shits getting "spook"y

Fri, 06/25/2010 - 02:45 | 433102 Hdawg
Hdawg's picture

I hear ya,

In Tyler we trust.  You can't hijack the truth.

 

Fri, 06/25/2010 - 03:13 | 433120 CD
CD's picture

Maybe more registered; not such a huge influx of readers. Took YOU long enough to make your presence known... Maybe more are willing to speak up? Any special significance to the date you mentioned?

http://www.quantcast.com/zerohedge.com

Fri, 06/25/2010 - 08:18 | 433312 I need more asshats
I need more asshats's picture

It's that douche Reggie. All of the new usernames will love the bustblogboom and crow about how much they have made as paying members, blah, blah, blah.

Ya gotta love a true douche bag.

Fri, 06/25/2010 - 02:42 | 433098 The Credible Hulk
The Credible Hulk's picture

Meanwhile, North Korea thinks this cunning plan all the way through.

http://www.abc.net.au/news/stories/2010/06/24/2936414.htm

Fri, 06/25/2010 - 02:54 | 433109 dnarby
dnarby's picture

When you consider the derivatives that will be created from the new 15T of debt will total an additional 5 quadrillion, 75T in MBS to NK seems like a bargain!

Either that, or we pay him in pennies.  Do we have enough zinc to cover the whole country 50ft thick?  I'd vote for that!

Fri, 06/25/2010 - 10:04 | 433496 RF
RF's picture

Big hats, no cattle.

 

Best regards,

RF

Fri, 06/25/2010 - 02:44 | 433100 RoRoTrader
RoRoTrader's picture

Fuck off with pretense Pritchard.

Fri, 06/25/2010 - 02:51 | 433106 Escapeclaws
Escapeclaws's picture

$5 trillion more of Wall St bonuses?  Say it isn't true!

Fri, 06/25/2010 - 02:54 | 433110 AUD
AUD's picture

The impending depreciation of bank assets will be avoided at all costs.

Fri, 06/25/2010 - 03:04 | 433115 jmc8888
jmc8888's picture

I'm guessing that's the all in option.  Pretty stupid when the hand doesn't even contain a pair.

Fri, 06/25/2010 - 03:10 | 433119 asdf
asdf's picture

that won't solve anything. Maybe the yield curve will start to look like the japanese one, but that doesn't matter for the real economy. It just punishes savers further, that's all.

Fri, 06/25/2010 - 03:19 | 433121 AndItsGone
AndItsGone's picture

But here's the thing: The Fed can't do this without political cover. Political cover can't happen without a panic akin to early '09. Thus, putting $2.5T on the line and dangling it in front of GS like a hambone at the dog track is a recipe for a market crash.

 

Fri, 06/25/2010 - 03:24 | 433123 Mr_Watts
Mr_Watts's picture

Haha...from South Park...lol. Great episode!

Fri, 06/25/2010 - 07:15 | 433236 Catullus
Catullus's picture

Bingo.

This will happen a lot faster than people think. Get them all to the panic moment. Then provide the solution

max keisar is correct: these people are financial terrorists.

Fri, 06/25/2010 - 03:20 | 433122 poor fella
poor fella's picture

Awesome! When rates are below 1% I may refi - but with my luck that'll be a short term top and the Fed will start paying people to borrow money.

Fri, 06/25/2010 - 03:27 | 433124 Privatus
Privatus's picture

Bermonkey, you're the captain of the Titanic and your place in history is assured. Just make it 5 quadrillion and STFU already. There is no way the USD is coming out of this alive.

Fri, 06/25/2010 - 03:41 | 433137 Tic tock
Tic tock's picture

Liquidity is hardly going to kickstart the economy, I might hazard that deep, deep structural change would.. that's the unexpected outcome of starting a globe-sized war against the environment or whatever, a global denominator feels they have to have a change. ..this suggestion reminds of the saying, 'money for old rope'

Fri, 06/25/2010 - 04:14 | 433152 godfader
godfader's picture

As Richard Koo explained, the Fed could print 10000 Trillion via QE, it would have zero effect on inflation, the job market or credit growth. Neither positive nor negative. QE is a giant non-event.

It equates to Bernanke printing dollar bills and burying them in his backyard. Same non-event.

Fri, 06/25/2010 - 07:11 | 433232 Ungaro
Ungaro's picture

Only partly true: non-event in terms of its effect on inflation. QE is a nuclear event in terms of shifting toxic and soiled assets from the private sector to the backs of taxpayers.

Karl Marx was wrong when he said of the income tax that "capitalism has devised the means of its own destruction". He should have been referring to central banking and QE.

Banks sell their used toilet paper to the Fed at par and use the money to buy Treasurys (since they cannot and will not lend) or keep it at the Fed as excess reserves. Congratulations, America -- you have just become poorer and deeper in debt.

It is a misnomer to call this disaster a credit crisis. The credit contraction was and is a symptom, not the cause. The cause was a crisis of confidence caused by systematic mis-pricing of risk, which is polite way of saying the borrowers and banksters were distorting the value of their assets via various gimmicks.

Confidence in the quality of the banks BS (Balance Sheet) was lost and confidence in the value paper money and its proxies began to deteriorate.

It would have been far better if BS (Ben Shalom) Bernanke handed out cash to consumers instead of stoking his bankster buddies with QE. Government is reactive and likes to treat the symptom (bank asset quality), not the cause (loss of confidence).

Of course, the best solution would have been to (a) let nature take its course and allow the stupidest banks and sleeziest borrowers to fail and (b) prosecute the fraudsters. By now, we would be well on the road to recovery.

If the United States is too big to fail, who will bail US out?

Thu, 07/15/2010 - 09:04 | 470645 GoldBricker
GoldBricker's picture

It would have been far better if BS (Ben Shalom) Bernanke handed out cash to consumers instead of stoking his bankster buddies with QE.

What, waste a crisis? There's no crisis so bad that it can't be turned to the advantage of the having class. War, famine, oil spill, whatever.

The new money goes first to the haves. They spend it first, before the new cash has registered as higher prices. The last ones to receive this cash do so after prices have increased. Voila! Take from the poor and give to the rich.

Fri, 06/25/2010 - 05:21 | 433184 schatzingrid
schatzingrid's picture

Papa Ben is very proud to announce that mother Balance sheet is again pregnant. The new baby will be born within 9 monts and his/her (we don't know yet!) name will be QE10. I would like to warmly thanks HAL and SKYNET for their participation. Thank you so much.

Fri, 06/25/2010 - 06:03 | 433188 ebworthen
ebworthen's picture

 Today I got a glossy "Why a Home Equity Loan may be Right For You" pamphlet from my bank.

Fri, 06/25/2010 - 07:28 | 433244 OldTrooper
OldTrooper's picture

Thanks, but no thanks.  I own my cardboard box free and clear.

Fri, 06/25/2010 - 05:50 | 433193 Gordon_Gekko
Gordon_Gekko's picture

Why not make it an even $100 Trillion while we're at it? After all, all you need to do is type up some numbers on a computer somewhere....unfortunately, real wealth does not come from making ledger entries...only its destruction.

Fri, 06/25/2010 - 05:52 | 433195 godfader
godfader's picture

It wouldn't matter if it's $1 trillion or $100 trillion. What difference does it make? At the end of the day people are unwilling to borrow the excess money even if you held a gun to their head.

QE (without fiscal stimuli, i.e. somebody actually spending the money) has very little if any effect on lending, inflation or employment. It's a non-event. A yawner. At some point Bernanke will understand that, too.

Fri, 06/25/2010 - 06:51 | 433215 Mako
Mako's picture

Correct, it's game over. 

There is no Wizard of Oz, and there is no magically Helicopter Ben that is going to save anyone from the chaos that is coming. 

At the end of the day, the system is toast, it hit it's peak and now must collapse. 

"At some point Bernanke will understand that, too."

You mean.

"At some point the Lemming will understand that, too."

Unfortunately it does the Lemmings very little good at the end of the cycle, basically the Lemmings are getting hit with the Truth.  The Lemmings are running from the Truth, that is what is going on.... well, the Truth can not be destroyed.

It's Ben's job to keep all Lemmings marching in the same direction as long and hard as possible, his job isn't to tell you there is an end to the road, his job is to convince all the Lemmings that the road goes on infinitely. 

However, stuff like this will have less and less effect going into the future.  Beating a dead horse to make him run faster is futile, but that is Ben's job.   That is all they are, and all they could ever be.

The only thing the Fed can do is effect the edges and help to get the Lemmings marching in the right direction, unfortunately or fortunately the Fed can't extend the road to infinity.  The only way QE works is if Helicopter Ben had unlimited power, absent unlimited power it just extends the game a little longer.  

Fri, 06/25/2010 - 13:13 | 433850 Scout Itout
Scout Itout's picture

If you are a lemming you want to be one of the last to fling youself from the edge.

The first to jump are dashed upon the rocks. As the bodies start piling up their survival rate goes up slightly also, only to be crushed by the seemingly neverer ending supply of falling Lemmings. The fortunate ones come at the last, where, because of the dead and bloated bodies, they survive the fall, having a nice soft, albeit smelly landing.

The moral of the story is: If you're a lemming it pays to be last!

Thu, 07/15/2010 - 09:05 | 470648 GoldBricker
GoldBricker's picture

On the other hand, he who panics first panics best.

Fri, 06/25/2010 - 09:22 | 433431 fearsomepirate
fearsomepirate's picture

Of course it has an effect.  In this case, it's being used to allow zombie banks to continue consuming economic resources when they should be failing.  And have you noticed that, while "people" might not be willing to borrow more, the US Treasury most certainly is?

Fri, 06/25/2010 - 05:51 | 433194 John McCloy
John McCloy's picture

  I reiterate that they have no idea whatsoever to do at this point. The fact that nothing has been reinflated aside from the stock market (via manipulation, low volume markups and the greatest short squeeze in history) I cannot see them believing a 5 trillion dollar QE or any other kind of stimulus will do anything aside from buying a year at most since the core issues still have not been addressed. 

   The only and I do mean only logical explanation for this would be an attempt to allow the elites to raid the treasury in order to buy time to get their own house in order as 25% unemployment bares down upon us and the citizens turn outright "menancing" toward the establishment. There will not be anywhere near enough nifty gadgets or tard TV to quell unrest as American citizens become increasingly poor while Wall Street lives behind the moat. These men are animals and unfit to have any position of power in this nation.

Fri, 06/25/2010 - 06:03 | 433199 Alcoholic Nativ...
Alcoholic Native American's picture

Hear Hear!

Though they are probably gonna find a way to blame this all on socialism, get more wall street friendly types in office, and start another war on weak profits for good measure.

Fri, 06/25/2010 - 06:45 | 433216 Ned Zeppelin
Ned Zeppelin's picture

"These men are animals and unfit to have any position of power in this nation." If we saw the greed and desire for power in their hearts, they would be unrecognizable as human, I also assure you.

They cannot count on the military protecting them - Stanley made that clear.  You might look at his resignation as an opening salvo in that breakaway process where the military openly questions the authority of insane civilian "leaders" hellbent on madness.

Fri, 06/25/2010 - 07:04 | 433227 Snidley Whipsnae
Snidley Whipsnae's picture

Ben knows more QE will not solve the long term problems. Wall St/DC are playing for one more day in the sun...One day at a time. There is no long term planning that I can see no matter how I look at the world economy...except eventual default.

The West, or most of it, is addicted to cheap credit. The majority of those that were not thrifty are already howling for more cheap credit and they have suffered little compared to what is coming.

Get plenty of pop corn, hard assets that are difficult to find/tax, sit back, watch the show...there is nothing that we can do about their 'plan' when our elected representatives no longer represent us. When the world economy collapses the Keynesians will be in hiding. Most of the world will revert to barter economy until some commodity backed currency can be established.

One question: Will Angela Merkle go along with this plan or dump the Euro, return to DM, and stick with austerity?  This plan of Ben's will force Germany into closer ties with Russia for access to oil/gas...imo. Real production based economies need real commodities not ever cheaper fiat currencies.

Fri, 06/25/2010 - 07:42 | 433259 Dapper Dan
Dapper Dan's picture

I concur John,  it is the only logical explanation.

A question: is it logical for the rich to buy civilian submarines?

http://www.strategypage.com/htmw/htsub/20070711.aspx

Fri, 06/25/2010 - 09:25 | 433437 fearsomepirate
fearsomepirate's picture

You forgot U.S. Treasuries.  Really, ~5% on a 30-year?  Who the hell thinks that inflation's going to stay below 5% for the next 30 years?  No one.  So why is anyone buying 30-years at 5%.  The real bubble's in government bonds, friend, and it's a dogma at the Fed that the worst possible thing that could happen to a country, worse than hyperinflation, is for the government to not pay off its rent-seekers with the hard-earned coin of its citizens.

Fri, 06/25/2010 - 06:19 | 433204 John McCloy
Fri, 06/25/2010 - 06:19 | 433205 dan22
dan22's picture
Today’s China Security Journal articles  was titled: "Lower Interest Rates Can No Longer Attract Deposits, Major Banks Are Luring Customers With Higher Interest Rates." Source: China’s Coming Banking Crisis- The Banks Are Loosing Deposits At a Rapid Pace
Fri, 06/25/2010 - 07:16 | 433239 Snidley Whipsnae
Snidley Whipsnae's picture

"Lower Interest Rates Can No Longer Attract Deposits, Major Banks Are Luring Customers With Higher Interest Rates"

I know...but how does this square with China allowing citizens to purchase gold/silver?

Is China planning to crash their own financial system and issue a new currency backed by commodities?

Fri, 06/25/2010 - 06:33 | 433207 Iam Rich
Iam Rich's picture

King World News recent interview with Felix Zulauf dovetails nicely with this thread.

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/5/28_F...

 

Fri, 06/25/2010 - 06:42 | 433213 Ned Zeppelin
Ned Zeppelin's picture

But I think Ben really does care about The Small People.

Do NOT follow this link or you will be banned from the site!