Exclusive: The Fed's $600 Billion Stealth Bailout Of Foreign Banks Continues At The Expense Of The Domestic Economy, Or Explaining Where All The QE2 Money Went

Tyler Durden's picture

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slow_roast's picture

What would QE3 have to entail to have the "right" impact?  The Fed will have to sell it so they can't simply continue monetizing the debt via flipped bonds.  Surely mortgages, Weiners, and muni-bonds might be on the plate right?  Not only that, but size-wise it would have to be in excess of $1T and last longer than 12 months to carry through to elections; so are we looking at a 15 months, $1.5T program due to start once silver hits $20, the S&P hits 1,000, oil touches $85, and the entire commodity complex is nearly dead from dysentary? 

Bay of Pigs's picture

Sounds bullish for gold and silver TD.

Where are the experts like Bob D and Spalding weighing in on this?

Quixotic_Not's picture

The trend is in place, the continued devaluation of fiat usury will move forward unabated...

Until big .gov kills the host, <s>money</s> fiat usury will be <s>printed</s> digitized & spent, and the (D) & (R) Free Shit Empire™ will continue to export inflation to lower IQ developing countries.

¿Tienes plata gringo?

Note to admin:  Why the hell doesn't the strikethrough command work?

boiltherich's picture

Used to work, but the underline command does not work either.

RockyRacoon's picture

I'm surprised that bold works.   Our liberties are slowly being taken away from us!

Bold and italics next!

Stand up for your HTML rights!   Burn your computer.

First they came for the strike-through...

Is it getting warm in here?  What are these little bubbles in the water?

Bolweevil's picture

What do we want?
When do we want it?

MsCreant's picture

Adorable, as always Rocks!

RockyRacoon's picture

See?  I'm a chick magnet.  Cute pays.

Sudden Debt's picture



Whenever a chich says to me "you're so rude", I just know I can score in the next 2 hours.

I actually met my wife in a discotec and insulted her like for a hour and when she started yelling to me, I empied a champagne bucket over her head with the water and the ice.

I had her in my bed the same night and couldn't get rid of her after that so I married her.

The only time she calles me "cute" is if I fall from the stairs and if I need ambulance to get me to the hospital. Which actually happened.



falak pema's picture

I'm just debating if its your rocks she finds adorable or if its your words she finds magnetic...anyways don't fall down the stairs...cos being cut up is not being cute.

falak pema's picture

"Diamonds...diamonds...are a girls best friend...wow, diamonds! 

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

To quote Charles Manson from his prison cell:  "Is it hot in here or am I crazy?!"



Spalding_Smailes's picture

Dollar denominated debt ......


Big deal, I have been talking about this for 7-8 months. They made loans denominated in dollars and now need more dollars so they can do a rollover ( A can " kick " per se' )


So what was driving stocks then .... ? Could it be .... improvement in the economy ?


WASHINGTON, D.C. – June 9, 2011 – The Association of American Railroads (AAR) today reported steady results in weekly rail traffic with U.S. railroads originating 273,584 carloads for the week ending June 4, 2011, up 1.1 percent compared with the same week last year.  Intermodal volume for the week totaled 205,565 trailers and containers, up 7.2 percent compared with the same week in 2010.

Fifteen of the 20 carload commodity groups posted increases from the comparable week in 2010. Commodity groups posting solid increases included: iron and steel scrap, up 18.7 percent; coke, up 18.1 percent, and grain, up 17.4 percent. Groups posting a notable decrease included: primary forest products, down 15.2 percent, and nonmetallic minerals, down 10.5 percent.


“U.S. big-truck sales soared in May, up 61.9% vs. a year-ago and far surpassing April’s 31.2% increase, previously 2011’s best monthly performance. Class 8 sales made the biggest leap, up 82.4% thanks to triple-digit percentage increases at Volvo Truck and PACCAR, up 175.4% and 145.4%, respectively. Through May, sales of medium- and heavy-duty trucks in the U.S. were tracking 30.9% ahead of like-2010.




boiltherich's picture

May 20, 2008 Baltic Dry Index=11,790

06/10/2011 Baltic Dry Index = 1,418

Nuff said.

francis_sawyer's picture

"They made loans denominated in dollars and now need more dollars so they can do a rollover"

Ha! Railroads & Trucks... Must be why the $TRAN is so "on fire" since May 1st... Right? I guess they need those huge containers to move around all the FRN's (It's the NEW 'multiplier' on money velocity)...

So... smarty pants... Since the economy is so obviously improving, and you're such a wizard at 7-8 month forecasting windows, enlighten us all as to your calls for the SPX & DXY, for, say, the Jan '12 opex...


Footnote: $50 bucks says the 'Smailes' kid eats it...



Spalding_Smailes's picture

No forecast ... Just the facts.

Study dollar denominated debt in the securitization market, forex,global finance,letters of credit, central banks, sovereign wealth funds, commodities ect ....

Then get back with us

Tell us about the money velocity QE2 created via treasuries .... or was it the bric's driving commodities ?


tmosley's picture

If it's not predictive, then it is worthless.

But we already knew that about you.

Quixotic_Not's picture

When the light comes on the cock-a-roaches scatter.

francis_sawyer's picture


Here... Here are a few 'FACTS' I was looking at... It was YOU who decided to post truck and railroad pieces for May & June...


Bay of Pigs's picture

Just the facts? Yeah, right. 7-8 months ago you were bad mouthing gold and silver when gold was around $1330-1340 and silver was $23-25.

All you bring to the table is disinformation and propaganda when it comes to PM's.


RockyRacoon's picture

I call bullshit on your railroad diversionary tactic:

Baseline Rail Traffic in Contraction: Oil Consumption vs. Production Revisited

...baseline traffic is now in contraction with intermodal and cyclical traffic soon to follow if the current trend holds.

Intermodal traffic, containers and piggyback service, actually has stronger cyclical tendencies than so-called cyclical traffic. Compared to the same month a year ago, intermodal is right where it was in 2006, 2007, and 2008.

Baseline traffic is below and cyclical traffic is well below levels in the same month in 2006, 2007, and 2008. Thus total traffic is below levels in the same month in 2006, 2007, and 2008.



CompassionateFascist's picture

Never mind corporate/gov't "statistics". A half-dozen loaded freight trains used to go thru the local station every day. Now there are none, for weeks at a time. Did see a few empties being shuttled back and forth today, tho...

knowless's picture

yeah dude, iron and steel scrap shipments up 18%! what a recovery.

could the vehicle sales increases have to do with a certain asain nations demise? isn't a 60% drop quite near a 150% gain?

bigwavedave's picture

Tyler. think about it. All that is needed to keep the printer going is the 'full faith and credit of the people of the united states" which means the housing stock. enter Fanny and Freddie. Friday the 13th - The Porn Version.

longorshort's picture

Is data available of how much each bank has gotten? Think this turd floats back to Jim Rogers short on a bank that has not went down as much as the others? My guess on that was JPM or Wells Fargo or GS, although Wells Fargo and GS would be more shock factor beings Buffet has been so smoochie smoochie with Them. I am not sure how you eliminated those two in your article.

minsky4ever's picture

As Minsky pointed out, large bailouts are followed by larger bailouts until, in the end, the institutions become too big to fail and moral hazard is out the window.

Nothing was done to change the system after the treasury was looted, not a fucking thing. Dodd-Frank was like drawing a picture on a Winkie Dink screen, it made no sense and does nothing to curtail the abuses that brought about the most recent collapse.

boooyaaaah's picture

Glen Beck's carrying you link to this article

Are you really Glen Beck

Or If not are you going to appear on his new web tv


I think you guys are on the same wave length

Caviar Emptor's picture

And political risks. Euro governments are on shaky ground because of the unfolding debt crisis. And MENA instability is a direct offshoot. Here in the US there's rising disaffection with both parties and rising chance for turmoil

Bringin It's picture

Re. Turmoil?  In the valium nation? 

johnnynaps's picture

ahhhh valium! I haven't seen you in years! Me thinks it's time to head to the good Doctor and schedule a reunion with you, on my wife's government bennies of course!

Dollar Bill Hiccup's picture

Grantham called it as he saw it in 2007, a slow motion train wreck. And now? The Dinner Roll or the last jump of the Federal Reserve ...


JW n FL's picture

This is not a 1am Saturday Night Story.. unless you are trying to bury it! LOL!! take it out with the trash on the weekend!!

Tyler Durden's picture

This story will be headlined until well into next week.

JW n FL's picture

I was kidding! I would have pushed in on Face Book and twitter any way! You can NOT Stop me or the truth Tyler!!!


Happy Saturday evening to You Bro and I would hope Yours as well given the hour!


Keep up the GRANDE' Work Product! You are Wonderful! Human Being!

JW n FL's picture

ya! but!! have you seen his ab's? they are to die for! you sexxy Beast!

Hansel's picture

Nice work TD.  While I hope this might move pols to act against Ben Bernanke, I have yet to see anyone challenge him so far.  I have been disappointed that Bernanke has not been confronted about loaning money to Libya, or about the majority of bailout cash going to foreign firms, or the complete ineffectiveness of QE on employment, or for loaning to banks at 0% so they can loan back to the gov't at 3+%.  Still the congressmen fellate Bernanke because they know who butters their bread.  The proles won't push for action against Bernanke because they largely don't understand, and even with action against Bernanke, the damage has been done.  /dejected

Conrad Murray's picture

or about the majority of bailout cash going to foreign firms

While he was a douche, Alan Grayson dug in on The Bernank - http://www.youtube.com/watch?v=n0NYBTkE1yQ

And there's always Ron Paul - http://www.youtube.com/watch?v=cxBNR0qBKVU and http://www.youtube.com/watch?v=fc4DDBvsYPg


Hansel's picture

Theater is for entertainment.  Where is the action?

Conrad Murray's picture

Just pointing out that he has been confronted. The action will come when 1,000,000 people surround the Federal Reserve Corporation, Capitol, and White House. As long as the people remain at home, placated by SNAP, Medicare, american Idle, the internet, and everything else that makes life acceptable, we will be slaves.


Bringin It's picture

I used to be amazed at how complacent/docile people have been, but ... you learn something new all the time.

Now, it's too late to do anything about the train wreck except make plans for the after effects.

I hope people find community to defend common interests, but I'm amazed it hasn't happened so far.  People are so deep into the Kool-Aide. 


TD - Thanks.  The Thomas Paine of our times. 

[PbagWan - is how the local equivalent of kiss-ass BTW] 


Neoisolationist's picture

could be that the us is just waiting for the next election. I know lots and lots of people who are disgusted, who all say the same thing: Nov 2012 can't get here quickly enough. There's also an understanding that the PTB woudl benefit from imposing martial law, so the idea of acting in such a way as to risk martial law is out of the question.

 And meanwhile of course, the sheeple quietly arm themselves, buy PM's, and food storage and other survival-based items.


Bringin It's picture

I predict elections won't fix this.

CompassionateFascist's picture

Rick Perry will fix "this". He'll either liquidate Zero and his bankster regime in 2012, or his state Texas will secede before/after and take 20 others with it. Then we will get the Civil War we so desperately need. It's the only way...in the meantime, by all means, gather 'round and attempt to levitate the Fed.

forexskin's picture

kinda going out on a limb there, huh?

mick_richfield's picture

I think that Americans are more active than they appear to be, and Greeks less.  What is more effective: thirty thousand people shouting at riot cops in Syntagma Square, or 4 million Americans not paying their mortgages?