Here Comes QE3: Hoenig Says "More Quantitatve Easing May Be Discussed"

We thought Jon Hilsenrath would break the news of QE3. To our shock, it comes from the only sensible man at the Fed, Kansas Fed's Tom Hoenig. Per Reuters: "The Federal Reserve could
debate extending its bond-buying program beyond June if U.S.
economic data prove weaker than policymakers expect, Kansas
City Fed President Thomas Hoenig said. Another round of bond buying "may get discussed" if the
numbers look "disappointing," Hoenig told Market News
International in an interview published on Tuesday." May we suggest in that case that Joe LaVorgna stop blaming every herpes outbreak in the US on snow and instead indicate that shit is once again hitting the fan. Obviously, this is merely a scheme to keep the market well bid no matter how violent the revolutionary images on TV, brought upon precisely by this genocidal policy. Even more obviously, it means that oil is going to $200 on short notice.

Comments

[Math Man]

"The Federal Reserve could debate extending its bond-buying program beyond June if U.S. economic data prove weaker than policymakers expect"

If you live on a farm, you could debate extending your d*ck in to a sheep.

Does that mean all of you conspiracy theorists who live on farms and hoard gold and ammo ARE going to f*ck some sheep?

The economic data needs to be WEAKER than expected.  Right now it is stronger.

Looks like QE3 is off the table for now... but I'm not so sure about the sheep f*cking.

[KickIce]

75% of your post references having sex with sheep.  You need help.

[ColonelCooper]

Hey, I don't much care for the drivel Mr. Math posts either, but don't knock sheep snatch til you've tried it.

[KickIce]

100% of your post refers to sex with sheep.  You need help.  :)

[ColonelCooper]

Ever see a sheep, "Get after it"?  I mean the whole pissing foreplay thing?  Not saying I'd actually tap a sheep, but a buddy of mine has a small flock and I'm here to tell you that Charlie Sheen lives the life of a monk compared to his ram. 

[tao400]

MAth man this is message to the markets that it will happen. that's the way it is done. They hint at it at first and let everyone get prepared and then do it.

[raya123]

First of all, I'm sure he did not volunteer that information, but gave the answer in response to a specific question such as "would you consider...."  He simply said the same thing that Bernanke already said on 60 minutes, that they will consider more bond buying if the economy worsens.

What did you expect him to say?  He knows damn well that if he has said "no, there's no way we'll ever do it", markets would tank immediately.  In the face of this much inflation, it will take a steep decline in stocks first before they can justify it, and I think that steep decline is coming very soon.

[Yen Cross]

Do what? Inflation doesn't exist. Look @ the ISM numbers.

[beastie]

Lifted from http://screwtapefiles.blogspot.com/2011/02/qe3-on-cards.html

QE3 on the cards?

Tom Hoenig typically plays the role of the lone dissenter at the Fed meetings. He has publicly said he takes this role to show the world that the Fed is not just a one man operation.
And I quote:

"As an economist, I cannot be certain that my views are correct. Certainly, a majority of my counterparts on the FOMC last year did not agree with my views. But it is important to recognize that in the face of uncertainty, arriving at the best policy decision is built on divergent opinions and vigorous debate.
Because of this, the role of open dissent is at least as critical to FOMC monetary policy decisions as it is to deliberations by the Supreme Court, the United States Congress or any other body with important public responsibilities from the local through the federal level."

Dot 1: He is retiring next year so literally he has hit his limit as regards career advancement. Although I am sure he will be serving on a few boards as a Director.

Dot 2: The entire Fed is stuffed now with those who believe the dream of Keynes.

Dot 3: Per Reuters he has said QE3 will probably be discussed if numbers disappoint before the next meeting. Well it's a given the numbers will be crap. So therefore there will be discussion.

So why come out publicly and say all this?
Is he saying he dissented to dissent? That's the way I am reading it.

It's really very simple .... this is telling the Fed watchers and the markets that it's business as usual. The Tea Party, the Tweedle Dem's and the Tweedle Ree's don't matter a damn. They can hoot and holler but Ben is doing it his way. What are they going to do fire him? Hah!
So bring out David Tepper and all the rest of the gang to pimp, pump and prime the markets for the next leg up.

[eaglefalcon]

Relax, folks.  If enough QE is followed through.  Everyone will be multitrillionaire

[prophet]

If the dollar and the Dow both double in the next eight years and rates stay about the same on the longer end is that a good thing?

[buzzsaw99]

This would not be necessary if you fuckers would just BTFD already!

[gwar5]

Global Benocidal pandemic.

QE-3.  I heard hear first, and I heard it 4 months ago.

ZH has not been wrong yet on all the big calls since I've been following. 

Batting 1000. Thank you zero hedge.

[bbucks]

We don't need  no stinkin QE3!  Just tell the Saudi King that we will have trouble funding our military (can't fight the Muslim brotherhood from taking you over) unless you dump a shitload of money into the US bond market. 

[ak_khanna]

The taxpayer funded bailouts for banks lead to lower standard of living for all the citizens of a country except for the beneficiar­ies of the bail outs. The poor people in any country live hand to mouth and do not contribute to tax revenues. The others who earn their living by small businesses or salaries pay taxes at a much higher rate than the rich individual­s or big businesses­. This is due to the loopholes in the taxation system which enable them to declare maximum profits in countries which have the least tax rates. So effectivel­y in the long run the government­s route the money collected as taxes from the middle class of people to the banks so that the bankers can enjoy enormous bonuses. We are in times of privatizin­g the profits and socializin­g losses for those who are well connected to the government­s and the law makers.

http://www.marketoracle.co.uk/Article24581.html

[reinibe]

Time to buy stocks. Again, I'm proven right.

I've claimed numerous times that Bernanke will print forever and never raise rates. His strategy is working, and we're already witnessing a fantastic economic recovery.

I agree. But I am buying not stock, I buy HiYields. They have a close correlation and much more “dividends” in form of cupons.

www.lowrisk.tk

http://twitter.com/#!/lowrisk007

[Moonrajah]

T-Ho made what everybody was discussing semi-official. The $600Bn of QE2 is chump-change by today's standards, add another zero (QE3) and you're talking business. 

This is way beyond sick. I hope those bastards get what's coming to them via a rope and a lamppost.

[alexwest]

why surprise..
US national debt runnning 1.8 trln$.. whos buying this shit ?
arabs, russian, china .. no no no
BENNY AND TIMMAH...thats who... FED is biggest holder of Treasureies..
its called money printing and weimAr way..

ALX

[RunningMan]

If we want this to end, we need to prevent the Congress from raising the debt ceiling. That is the one plausible action I can see short of ending the Fed. Fiscal prudence is the mandate. Now this may have dire consequences, but if everyone here is so sure QE must end, then this would appear to be the mechanism to accomplish that.