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Here It Comes: US Gives Green Light On IMF-Mediated Rescue Of Europe, EURUSD Goes Parabolic

Tyler Durden's picture


From Reuters: "US official says US would be ready to back larger European financial stability fund via increased IMF commitments." In other words, America, and its oh so rich middle class, is about to bail out Europe again. EURUSD surges on the news, as does ES. Elsewhere, Ireland's new dictator, Olli Rehn, adds that he is "attracted' by Eurobond ideas; sees no initiative soon. Which means about a week.

The EURUSD just went parabolic.


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Wed, 12/01/2010 - 12:55 | 768219 Sancho Ponzi
Sancho Ponzi's picture

...and DXY just took a huge dump

Wed, 12/01/2010 - 13:37 | 768515 chopper read
chopper read's picture

you didn't get the memo?!!!!!!!!!!!!!


David Rockefeller and the gang have decided that currency monopolies are going global. all en route to "Special Drawing Rights" for us all, with the feudal counterfeiters at the top.


psst.  thats NOT you. 

Wed, 12/01/2010 - 14:49 | 768916 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Soros raised his eyebrows to the lady, the only lady, that he lets interview him.

"The SDRs are backed by goled."

Wed, 12/01/2010 - 16:27 | 769462 Bay of Pigs
Bay of Pigs's picture

Mr Jimi, liftoff is imminent.

The crowd stood back, mouths agape, staring in that quote REAL?

Wed, 12/01/2010 - 23:30 | 770723 Buck Johnson
Buck Johnson's picture

There will be two currencies in the US, one for internal use and the other for trading international.  They will make it illegal or hard for people to obtain or use the external currency because that one will be based on a basked of commodities.  The internal one will be easy for the country and countries to manipulate and only worry about screwing the pleabs.

Wed, 12/01/2010 - 12:56 | 768220 mule65
mule65's picture

Panic buying and short covering LOL.

Wed, 12/01/2010 - 12:56 | 768222 ZeroPower
ZeroPower's picture

So the US taxpayer is not only bailing out banks from back home, but across the pond as well.

Financial services field - FUCK YA. USA. USA.

Wed, 12/01/2010 - 13:08 | 768314 jus_lite_reading
jus_lite_reading's picture

If anyone needed another reason to buy all the silver you can on Dec 7th, here it is!


EFFFF the banksters!

Wed, 12/01/2010 - 22:10 | 770482 rocker
rocker's picture

I said it weeks ago, USA taxpayers must bailout all Bankers on foreign soil just like we did here. We will monetize all their debt and recapitalize all their banks as well.   Buying IRE and AIB looks good now.

Be prepared and invest accordingly. Loaf of Bread $10.   Ounce of Silver $50.   Ounce of Gold $2000. 

Wed, 12/01/2010 - 12:57 | 768227 Gene Parmesan
Gene Parmesan's picture

It's easy to be generous when you're giving away someone else's money.

Wed, 12/01/2010 - 13:43 | 768543 BurningFuld
BurningFuld's picture

Needs a little correction. It's easy to be generous when your giving away someone else's money to yourself.

It's a mixed up world boys and girls.

Wed, 12/01/2010 - 15:11 | 769022 chopper read
chopper read's picture

arm yourselves.

Wed, 12/01/2010 - 12:56 | 768228 kato
kato's picture

of course, those same people who love this - who love getting their bonds bailed out - wouldn't give the steam off their piss to help a poor person get health care.

Wed, 12/01/2010 - 13:18 | 768378 SteveNYC
SteveNYC's picture

Good observation, agree totally. Makes me sad for the human race.

Wed, 12/01/2010 - 13:18 | 768381 D-Falt
D-Falt's picture

Like SEIU Local 1911 for example. 

“In addition, new federal health-care reform legislation requires plans with dependent coverage to expand that coverage up to age 26,” Behroozi wrote in a letter to members Oct. 22. “Our limited resources are already stretched as far as possible, and meeting this new requirement would be financially impossible.”

Wed, 12/01/2010 - 15:15 | 769041 chopper read
chopper read's picture

kato, your beloved 'healthcare' builds the US Treasury Bond market, which is front-ran by the International Banking Cartel.  Why do you believe that Goldman Sachs gives so much money to the 'Dumbo-craps'? 

these monsters find out what you care about, then get you to vote for Federal intervention.  then, they use the gunpoint of government to fleece us all. 


Wed, 12/01/2010 - 12:57 | 768232 Careless Whisper
Careless Whisper's picture

"US official" = Federal Reserve Bank scum

who voted for these guys? how do we get them out? why are they called "officials"?

Wed, 12/01/2010 - 12:57 | 768234 tmosley
tmosley's picture

Yeah, IMF, sell us ALL of your gold so you can fund this clusterfuck.  Then you will have nothing, and we, the free, will have everything.

Wed, 12/01/2010 - 13:00 | 768248 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The EURUSD just went parabolic.

So did platinum.

Wed, 12/01/2010 - 13:00 | 768250 crzyhun
crzyhun's picture

Madness of a lost currency! This is just as mad as the you tube of the shoppers.


Wed, 12/01/2010 - 13:01 | 768254 DonnieD
DonnieD's picture

Can civilians purchase drones for their own personal use?

Wed, 12/01/2010 - 13:04 | 768280 MsCreant
MsCreant's picture

Yes. The problem is they currently need to be recharged every 15 minutes.

Wed, 12/01/2010 - 13:01 | 768259 RobotTrader
RobotTrader's picture

Wow, what a rally....

Stock valuations keep growing and growing.


Uploaded with

Wed, 12/01/2010 - 13:07 | 768304 Internet Tough Guy
Internet Tough Guy's picture

No post about oil brutally upcrashing to 86? The LA city bus is going to be extra crowded today.

Wed, 12/01/2010 - 13:10 | 768323 qussl3
qussl3's picture

The rate CBs are throwing good money after bad, stocks are a freaking safe haven.


Wed, 12/01/2010 - 14:03 | 768576 NotApplicable
NotApplicable's picture

Good money? They don't have any good money, all they have is bad and worse.

Wed, 12/01/2010 - 15:52 | 769292 tallystick
tallystick's picture

Should we be worrying about naked shorting and FTDs?

Wed, 12/01/2010 - 13:01 | 768261 MsCreant
MsCreant's picture

None of us are surprised by this. I am not a very sophisticated audience member at all and yet I am certain if I had to I could find an old comment of mine where I said that Bernanke would print to cover them when the time came. He is not bailing them out, he is using them like AIG to bail US out.

I see an orgy of Zombie corpses feasting on each other. Wonder what will come of that?


Wed, 12/01/2010 - 13:18 | 768380 erik
erik's picture

Yes, because US banks hold tens of billions in EU debt.  He is bailing them out with our money in order to bail out our banking system and keep the bonuses flowing.

At this point, if ECB announces QE tomorrow, you have to put everything in the long gold bucket.

Wed, 12/01/2010 - 14:23 | 768761 MarkS
MarkS's picture

Actually, US banks hold very little Euro debt in comparison to Euro banks or versus other holdings.  He is bailing them out to keep the $US from skyrocketing. 

All the manufacturing growth we have seen this summer was export driven.  Look at intermodal rail traffic thru the summer and look at the big droppoff in intermodal (right on que).  Inventory build that needs to find a home, not import more crap, and a manufacturing that needs a devalued $ to compete.

Of course they are also doing it because they believe a collapse in/of Europe will lead to a massive global slowdown.  And from here, that would have to change the 'R' to a 'D' as in Depression.

It pisses me off, but is hardly surprising.  The only question is whether or not people believe in it enough to kick the can farther down the road this time.

Wed, 12/01/2010 - 14:51 | 768918 erik
erik's picture

Mark, I didn't say in comparison to Euro banks or versus other holdings.  I stated that the US banks hold tens of billions in EU debt, and implied that fact is not lost on Bernanke.

I have made similar comments previously on the export-driven boost in ISM over the last 2 months due to USD weakness, so we agree there.

Wed, 12/01/2010 - 13:02 | 768265 redpill
redpill's picture

Fuck this shit!

Wed, 12/01/2010 - 13:08 | 768310 Hansel
Hansel's picture

+1 Fuck this shit!

Wed, 12/01/2010 - 14:02 | 768670 UGrev
UGrev's picture

another vote for "Fuck this shit!" +1

Wed, 12/01/2010 - 14:52 | 768923 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I think that would make for a good chant outside the Fed during the moments before the riot police came and arrested everyone for exercising our first amendment.

"Fuck this shit!  Fuck this shit!"

Wed, 12/01/2010 - 20:58 | 770357 peaches
peaches's picture

Fuck this shit! Fuck the Ben Bernank!  ...and buy silver.

Wed, 12/01/2010 - 13:01 | 768266 John McCloy
John McCloy's picture

So our dollar goes down because dollars will be in demand from the not so slowly decaying Eurozone? ok.

Wed, 12/01/2010 - 13:39 | 768523 flaunt
flaunt's picture

No the dollar goes down because we have no f'in money and we'll have to borrow or print it to bail out the f'in bankster terrorists.

Wed, 12/01/2010 - 13:03 | 768269 Racer
Racer's picture

They had to use other tactics to devalue the dollar and talk about bailing out europe was a good way to boost the euro and trash the dollar.. and make the market jump

Wed, 12/01/2010 - 13:03 | 768276 economessed
economessed's picture

Don't expect me to file a tax return if this goes through.  I'm out of options that fit within "the system."  But I'm not short of hostility towards those who enrich themselves from MY LABOR.  It's not your money, and you CAN'T HAVE MINE.

Wed, 12/01/2010 - 13:04 | 768278 Cognitive Dissonance
Cognitive Dissonance's picture

Instant global orgy. Wow, nicely timed to distract attention from the noon Fed "information" release.

Wed, 12/01/2010 - 13:06 | 768296 John McCloy
John McCloy's picture

   When they cannot move the markets with fundamentals anymore they pull the same tricks repeadetly and that is rhetoric, rhetoric & more coordinated rhetoric.

Wed, 12/01/2010 - 13:14 | 768351 Clockwork Orange
Clockwork Orange's picture

Seems to be coordinated to stitch the two ponzi-actions together ... since we did not lose any money on TARP, we have plenty to gamble on Europe.  All is good.  Praise be to Zimbabwe Ben.

Wed, 12/01/2010 - 14:01 | 768662 A_MacLaren
A_MacLaren's picture

Close to the bulls eye. 

The failure of one debt based, fractional reserve ponzi-scheme fiat currency would glaringly display the fallacies of all the others.

Wed, 12/01/2010 - 13:52 | 768598 NotApplicable
NotApplicable's picture

Between this announcement and this morning's deficit commission yelling "BOO!" I'd say they've done a good job of filling the air with noise today.

Meanwhile PMs prep for lift-off.

Wed, 12/01/2010 - 13:09 | 768288 bob_dabolina
bob_dabolina's picture

Wheat + 6.5%

Oats 4.5 %

Corn 3.6%

Rice 3.5%

Oil 3.3%

Sugar 3%

And the winner isss....cold and hungry people whose ue benefits are about to expire.

Good job central bankers. Good job. You really shoved your dick up our asses with that one. Is this the wealth effect I hear so much about?

Wed, 12/01/2010 - 13:11 | 768328 jus_lite_reading
jus_lite_reading's picture

Millions of people will be rolling off the cliff in the coming weeks. As long as there is another "Black Friday" the other masses still collecting unemploymeny will be happy. Until...

Wed, 12/01/2010 - 13:06 | 768300 Nucking Futs
Nucking Futs's picture

Houston, we have lift off!

Wed, 12/01/2010 - 13:07 | 768303 Nedly66
Nedly66's picture

And the timing of this IMF statement comes right as the Fed releases the bailout details.... Suspicious? Time to start digging through those files!!!!

Wed, 12/01/2010 - 22:18 | 770495 rocker
rocker's picture

Will you believe everything they disclose. I will not.

Wed, 12/01/2010 - 13:07 | 768308 erik
erik's picture

The Euro bond idea will never work.  Why would Germany be willing to pay more for their borrowings?  That's all that would happen.  The healthy countries would pay higher rates, the unhealthy countries would pay lower rates.

Wed, 12/01/2010 - 13:12 | 768335 prophet
prophet's picture

I think they call that a progressive system.  Just like health care and US taxes.

Wed, 12/01/2010 - 13:55 | 768614 NotApplicable
NotApplicable's picture

Well, it is FAIR (Fuck All Ignoring Reason).

Wed, 12/01/2010 - 14:08 | 768696 bob resurrected
bob resurrected's picture

Germany will do it because it is the cheapest way to keep the Euro alive. And, the Euro is good for their business.

It also allows Europe to print like the US.


Wed, 12/01/2010 - 14:59 | 768952 erik
erik's picture

Interesting points but I'm not sure that paying 100 basis points more will be cheaper for them in the long run.  I can't say whether the Euro is good for German business or not because I honestly don't know.

As far as it allowing Europe to print like the US, well that could be true to an extent.  However, imagine what happens when Greece wants to float significantly more in EU bonds than Germany, and rates go up as a result.  Germany can't do anything about it.  The EU bond would cause even more division between EU countries.  It is a neat idea in theory, but in practice it will not work.

I don't see Germany wanting to keep the EU together as much as they want to keep their own banks solvent.  These bailouts are not for the good of the Irish or Greek people. 

If they do it, I will be very surprised.

Wed, 12/01/2010 - 13:09 | 768320 vote_libertaria...
vote_libertarian_party's picture

ummmm..Republicans in going to do something about this?


Where does the US contribution to the IMF come from?  Treasury Dept.?  Which requires Congressional approval?

Wed, 12/01/2010 - 13:11 | 768333 Aductor
Aductor's picture

Don't tell me you bought that propaganda. The same BS that Obama used to throw around, now recycled and rebranded.

Wed, 12/01/2010 - 13:15 | 768356 ZackAttack
ZackAttack's picture

Last spring, they attached it to a Forever War funding bill.

Wed, 12/01/2010 - 16:06 | 769366 chopper read
chopper read's picture


...nice world they wish to live in.   thankfully, some of us livestock will have children who survive the social darwinism, rise to the top, and smash their offspring into oblivion.  They could have just followed the US Constitution, but, i mean, if this is how they wish to play....

new set of rules for our kindergarteners: covert machiavellianism.

Wed, 12/01/2010 - 13:10 | 768324 Aductor
Aductor's picture

Even the Kremlin used to be better at creating credible narratives. This is hilarious.

Wed, 12/01/2010 - 13:10 | 768326 Cdad
Cdad's picture

Simply amazing.  How Ben Bernanke keeps his job after the new Congress is seated is well beyond me.  How the dollar survives is also well beyond me.  But I understand that the criminal syndicate known as Wall Street likes a broken dollar because it can pop earnings...for a quarter.  Oh, and they can also use this to ramp the price of gasoline into our faces, as well.

Revolution!  Defund.  Drain the swamps of DC and Wall Street both...and with ease.  Simply close your wallet.  That is all there is to it.

Wed, 12/01/2010 - 14:29 | 768809 Double.Eagle.Gold
Double.Eagle.Gold's picture

Bernanke is the public face, the pr man, for the global banking cartel. He's nobody. The President selects the pr man from a list of names provided to him by the banking cartel, he does not appoint he selects one of the offered. Congress critters then affirm, nothing more.

Ultimately, we have ZERO say over who the pr man is.

Wed, 12/01/2010 - 15:10 | 769013 aerojet
aerojet's picture

There won't be a revolution.  Look, as soon as Americans get into a revolt mode, there will be a war of some kind, with a draft, to act as a huge distraction.  It has always been that way, it will always be that way.

Wed, 12/01/2010 - 13:12 | 768339 curbyourrisk
curbyourrisk's picture

FUCK THE US OFFICIAL.  Who the hell does he think he is playing with out money. 

Wed, 12/01/2010 - 13:13 | 768344 thetruth
thetruth's picture

I'm guessing many of you saw that CNN has put some of it's reporters on the USS George Washington for the war games with North Korea.  Last time this happened was right before we attacked Iraq.


Do you think war is most bullish for oil, gold, or what other commodity?

Wed, 12/01/2010 - 13:14 | 768353 firstdivision
firstdivision's picture

Can anyone explain to me as to WTF is going on with silver?  When I look at a chart, it is gapping all over the place.

Wed, 12/01/2010 - 13:19 | 768387 MsCreant
MsCreant's picture

Kitco is fine. 28.60

Wed, 12/01/2010 - 13:21 | 768399 firstdivision
firstdivision's picture

Thanks for the Kitco reminder.  I was looking on Finviz.

Wed, 12/01/2010 - 13:15 | 768357 DonutBoy
DonutBoy's picture

Ha!  The central bankers are really all-in aren't they!  I'd like to buy something besides a PM now and then, but they keep telling me not too.  There will be no defaults - we all go off the cliff together clutching our paper money.  As if the US was solvent now!  Do you think Germany will buy California's bonds?

Wed, 12/01/2010 - 13:15 | 768362 D-Falt
D-Falt's picture

Wow! We're all saved! Does this mean everybody will *luv* the US now? 


What a joke!  I'll bet Germany wishes the Moors and Vikings would take places like Spain and Ireland back off of their hands. 

Thu, 12/02/2010 - 00:28 | 770883 IQ 145
IQ 145's picture

 That's funny. They probably do so wish.

Wed, 12/01/2010 - 13:16 | 768364 sabra1
sabra1's picture

Forcastfortomorrow: (paragraph from elite banker with inside info.)

JOE : Aghh ok, the second thing down on my list is……agh….. watch the US dollar. They

are saying that either two things will happen. One, they will crash it and send it to the

depths, or before this happens they will stop it trading and bring in an entirely new

different currency. It will hurt a lot of people, and business owners. All they said as they

talked amongst themselves is watch the US dollar. They are going to greatly and

massively devalue this and try and send people broke. This is scary I must say.

Wed, 12/01/2010 - 13:31 | 768372 Kaiser Sousa
Kaiser Sousa's picture

it will continue as long as the bankers r convinced there r no "real" consequences associated with the repeated financial rape & robbery of the and other benign forms of "protest" i have said time and again r summarily dismissed by sociopaths...until there is a violent response of the likes of killing a banker or one of their bought and paid for politicians nothing will change......

Wed, 12/01/2010 - 13:18 | 768379 willien1derland
willien1derland's picture

This is REDONKULOUS! Once again Washington misses the plot - Why even attempt to balance a budget???? This is a clusterf*ck! I agree with this bailout provided ALL LEGISLATURE, JUDICIAL, & EXECUTIVE BRANCHES are taxed at 98.7% of their income...

Wed, 12/01/2010 - 13:22 | 768385 hambone
hambone's picture

Not trying to get too technical and beyond my own understanding (that doesn't take long) but if we are making "loans" to EU via the IMF, and promise money at very low fixed rates of 3 or 4%? for say 3, 5, 7yrs...isn't there a good chance that American taxpayer could quickly find themselves loaning money at less than the cost of US borrowings of say 4 or 5%? 

And this isn't to mention the low likelihood of ever getting our principal back unless we loan them more money with which to pay the principal (as their GDP will likely underperform their debt growth)? 

Seems the spasms of a dying, irrational ponzi.

Wed, 12/01/2010 - 13:19 | 768390 Cone of Uncertainty
Cone of Uncertainty's picture

And Erin Burnett's first orgasm of the day is complete.

Wed, 12/01/2010 - 22:21 | 770509 rocker
rocker's picture

Nah, she faking it again.  It's a dry hole.

Wed, 12/01/2010 - 13:22 | 768403 Saxxon
Saxxon's picture

I shorted that spike but considered the ramifications of this and covered flat.  'There will be time' as T.S. Eliot reminds us; but now is not the time IMVHO.

Wed, 12/01/2010 - 13:28 | 768446 Cdad
Cdad's picture


So your point is that the reaction to this disasterous news of our Fed destroying our currency and monetizing debt, ours and everyone else's, is for a breakout in the S&P?  This is the right reaction to this action?

I rather think the collapse is very likely near...virtually at hand.  The US is broken and broke, and the world thinks we can float them all?

What am I missing?

Wed, 12/01/2010 - 13:37 | 768514 Saxxon
Saxxon's picture

Cdad, I actually quite agree but I am coming at it right this moment from a lowly day-trading perspective.

I like short-term swing trades with 2x and 3x ETFs. Therefore I need volatility and days like today get my blood up. That said, I am sussing a rally to SPY 122 and will wait a few days before I go a-hunting.

I am not making a political statement.  I am coldy horrified by this mutant cloud of electric money thrashing above the world, but I am not here on ZH to beat my chest on the topic.

Wed, 12/01/2010 - 13:40 | 768521 hambone
hambone's picture


you may be looking for the crash in the wrong direction?  Think of the market crashing up first due to unlimited liquidity, riskless investing, coming together to send prices for everything liquid flying.  The crash down could be a subsequent second act after the realization that inputs all went parabolic but there was no way to pass them on...boom.  But that takes time to filter through and in the meantime HFT's can make a killing and get out of the way passing all the shit to the Fed b4 the expected collapse?  But how long will that take?

Wed, 12/01/2010 - 13:23 | 768409 sabra1
sabra1's picture

isn't  this what is to be done if you want to destroy something? the fed has no intention of ever getting this money back, as the ECB will never be paid back either. this is the "elitest" plan to enslave the world, don't you get it?

Wed, 12/01/2010 - 13:26 | 768427 Highrev
Highrev's picture

Europe's contemplating Sugar Daddy Bernanke.

Ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha

Wed, 12/01/2010 - 13:29 | 768453 total nonsense
total nonsense's picture

The LUNACY of the FED continues..Really is unreal..This will end with one of the Biggest crashes that we have seen in our life times...

Wed, 12/01/2010 - 13:34 | 768486 steveo
steveo's picture

Agreed, but it won't just be a crash, has potential to change national borders, political systems, nastiness

Wed, 12/01/2010 - 13:32 | 768472 buzzsaw99
buzzsaw99's picture

 Central bankers are all one big happy mishpacha.

Wed, 12/01/2010 - 13:34 | 768485 iota
iota's picture

And gold barely responds?... I thought for sure this would be one of those 'flight to safety' moments.

Also the 1M charts can make anything look dramatic.


Wed, 12/01/2010 - 13:47 | 768572 Saxxon
Saxxon's picture

iota; the Au response is interesting, is it not . . .

Wed, 12/01/2010 - 13:56 | 768622 iota
iota's picture

Very. So are a couple of the FX reactions.

Wed, 12/01/2010 - 13:36 | 768493 iota
iota's picture



Wed, 12/01/2010 - 13:35 | 768501 DavidC
DavidC's picture

I'm really surprised the Chinese (and Russians) are standing for any of this - why aren't they buying the dollar in big time and selling the stock indices? They could bring US and UK to their knees very quickly.


Wed, 12/01/2010 - 13:37 | 768513 Cdad
Cdad's picture

Correct...and I believe they will.  And I do not believe we will have to wait long to see it, either.

Wed, 12/01/2010 - 13:55 | 768617 InconvenientCou...
InconvenientCounterParty's picture

I think you might be on to something.

Remember how the U.S. "won" the cold war? Maybe China is next. Russia can't do shit except preserve itself.

Maybe WW3 has been on since 1984 and few people realize it because the WW3 has a whole different set of rules?

or maybe I'm retroactively validatating my inflation thesis. F if I know.

Wed, 12/01/2010 - 18:42 | 769979 Oracle of Kypseli
Oracle of Kypseli's picture

True; and these new rules preserve enough shoppers for i-stuff, $100 jeans and 3d TV's   

Wed, 12/01/2010 - 17:53 | 769801 RockyRacoon
RockyRacoon's picture

When you find somebody who has just committed suicide, the last thing you want to do is pick up the gun and be found standing over the body.


Wed, 12/01/2010 - 13:41 | 768529 Jim in MN
Jim in MN's picture

How low, low, low can they go, go, go....break out the Dante quotes...

Wed, 12/01/2010 - 13:49 | 768585 johngaltfla
johngaltfla's picture

I call bullshit on this story. There's no way the House of Representatives will allocate money for this bullcrap.

Wed, 12/01/2010 - 13:53 | 768595 Saxxon
Saxxon's picture

johngaltfla; Good point; if they won't even allocate continued benefits for the American 99'ers who just hit the cold streets today.

Thu, 12/02/2010 - 00:25 | 768612 M.B. Drapier
M.B. Drapier's picture

Rehn's not barking any orders to the Germans yet, so I don't expect a Eurobond is imminent. [edit] Maybe not. Centralisation of all EU bond issuance isn't imminent, but expansion of the EFSF bond program might be.

Wed, 12/01/2010 - 13:59 | 768644 macroeconomist
macroeconomist's picture


No surprise here..

Remarks by Governor Ben S. Bernanke
Before the National Economists Club, Washington, D.C.
November 21, 2002

Deflation: Making Sure "It" Doesn't Happen Here

"...The Fed can inject money into the economy in still other ways. For example, the Fed has the authority to buy foreign government debt, as well as domestic government debt. Potentially, this class of assets offers huge scope for Fed operations, as the quantity of foreign assets eligible for purchase by the Fed is several times the stock of U.S. government debt.16

I need to tread carefully here. Because the economy is a complex and interconnected system, Fed purchases of the liabilities of foreign governments have the potential to affect a number of financial markets, including the market for foreign exchange. In the United States, the Department of the Treasury, not the Federal Reserve, is the lead agency for making international economic policy, including policy toward the dollar; and the Secretary of the Treasury has expressed the view that the determination of the value of the U.S. dollar should be left to free market forces. Moreover, since the United States is a large, relatively closed economy, manipulating the exchange value of the dollar would not be a particularly desirable way to fight domestic deflation, particularly given the range of other options available. Thus, I want to be absolutely clear that I am today neither forecasting nor recommending any attempt by U.S. policymakers to target the international value of the dollar."


He said everything he has done so far years ago.Next step is buying longer maturity U.S debt I guess.



Wed, 12/01/2010 - 13:59 | 768645 jbc77
jbc77's picture

This is unreal. How dare these fed faggots bail out Europe with our money. I'm sorry but Ben Bernanke needs to be hung from a fucking light post. I keep saying this but - we're are actually living in a sick episode of the financial Twlight Zone. These douche bad elitists will stop at nothing to keep the current system alive. It's absoultely sickening.

Wed, 12/01/2010 - 14:21 | 768756 gwar5
gwar5's picture

Bailed them out and still bailing them out. There's no end to it.

We're part of the EU whether we like it or not -- the Bitchez.

The Chinese are laughing.

Wed, 12/01/2010 - 14:01 | 768663 LongSoupLine
LongSoupLine's picture

Nothing to see here American middle-class...just drink Starbucks, watch Dancing, and buy a GM pos.

Wed, 12/01/2010 - 14:08 | 768698 gwar5
gwar5's picture

Holy Shit! There is a lot going on today. Bernankebank bailed/bailing out Europe, IMF? 

This is de facto monetary union of the entire West with the nothing but ashes of insolvent countries. 

The Mayan calendar was right! It's the end of Times!


Wed, 12/01/2010 - 14:11 | 768714 SheepDog-One
SheepDog-One's picture

Truely is the last of the last everyone is enjoying partying with the free drinks and string quartet on the aft decks of the Titanic.

Wed, 12/01/2010 - 14:09 | 768705 SheepDog-One
SheepDog-One's picture

Funny, no ones yet mentioned the crashing dollar and the Chinese ICBM 'airplane contrails' last time Benny was on a mission to devalue Chinas debt holdings.

Wed, 12/01/2010 - 14:16 | 768733 mauistroker
mauistroker's picture

Let me get this straight.

China and Saudis give ('loan') money to US. Fiat. Paper and digits.

US deploys fiat to bail out TBTF everything, everywhere. And fight wars. And buy crude.

Commodity inflation results. Middle East unrest intensifies. Chinese food prices go up. Saudis get paper/digits for precious oil.

Are they really this fucking dumb? How long will they stand for this?

Oh, I forgot, maybe they've cut the flow already and the US is creating the fiat out of thin air. Which, if they continue to play, would make them even more dumb!

Wed, 12/01/2010 - 14:28 | 768797 Jim in MN
Jim in MN's picture

Yes, Chinese and Arab elite attitudes are critical.  Not clear that either group of powerful men gives a crap about their own people, or if the entire global superelite is ready to depart for a lunar base...although they prefer Swiss and Thai pervert resorts.

The real "us vs. them" has barely started to unfold.  Would make an excellent video game: the world's democratic masses chasing the superrich across this and other worlds, with high game levels set deep in the Swiss vaults under the Earth.

Wed, 12/01/2010 - 14:53 | 768929 Double.Eagle.Gold
Double.Eagle.Gold's picture

The question of why Saudi's continue to supply oil is addressed thoroughly in posts by ANOTHER and Friend of Another (FOA) which you can find here.

In short, when Nixon closed the gold window, the Saudi's demanded and we agreed to provide gold with each barrel of oil. This private agreement, gold for oil, remains in place and is the only reason we continue to receive oil.

Apologies for the crude interpretation of the fascinating writings of ANOTHER. You can find current day discussion of this at FOFOA's blog here.

Wed, 12/01/2010 - 22:28 | 770536 rocker
rocker's picture

'Are they really this fucking dumb? How long will they stand for this?'   

Must understand. the amount of money they get buys anything they want. It's us, the American People who are that dumb !

It is the value of saver's dollars that go to hell. It is the hidden tax.  Buy Silver, Gold or anything Precious Metal.

Wed, 12/01/2010 - 14:29 | 768777 hambone
hambone's picture


I'm so fucking lost at this point, I really don't know what to say?

I started a game and I thought we all knew the rules.  Now I don't know what game we are playing and I know there are no rules but what comes out of "their" mouths next. 

My American paradigm is utterly destroyed.

In a way everything I expected to happen has happend and in another way I've been totally wrong on the implications of these things.  Either we are very close to cracking or I've fallen down the rabbit hole and need to live to learn in this new world?

Wed, 12/01/2010 - 22:35 | 770550 rocker
rocker's picture

Slowly now, say me "Zimbabwe"

Wed, 12/01/2010 - 14:25 | 768780 MyKillK
MyKillK's picture

Haven't we already contributed $100 Billion to the IMF?


This is getting totally out of hand.

Wed, 12/01/2010 - 22:37 | 770554 rocker
rocker's picture

Now that's a good "Shits and Giggles".   Just 100 billion,  please............... X what ???

Wed, 12/01/2010 - 14:26 | 768787 DavidRicardo
DavidRicardo's picture

I told you this would happen, and you didn't believe me.  And I told you the total amount of the bailout which has been agreed to: it's $70 trillion.  Invest accordingly.


And remember:


BLS 4.7% baby, BLS 4.7%.


You silly people who let your ideology get in the way of counting cars on the highways in suburbia.  Count those cars!!!!!!

Wed, 12/01/2010 - 14:45 | 768894 gaoptimize
gaoptimize's picture

Bail-out of EU Banks through Federal Reserve just mentioned by Rush.

Wed, 12/01/2010 - 14:50 | 768917 RSDallas
RSDallas's picture

Won't this eventually (like probably a couple of months at the most) cause the bond vigilantes to start kicking some ass?  I mean the US has basically went "all in" here, if it's true.   

Wed, 12/01/2010 - 19:36 | 770165 RockyRacoon
RockyRacoon's picture

From Doug Casey's latest newsletter --worth a watch.

An Excellent Video

Follow the link here  for a terrific little video called “Lemonaid” that was submitted as part of an “Atlas Shrugged Video Contest.” It’s of a very high production quality, so you may think that the beginning is a commercial – but it’s not, it’s the video entry. This is definitely something you are going to want to share.

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