IceCap Asset Management On The Money Printers

Tyler Durden's picture

From Keith Dicker, CIO of IceCap Asset Management

With the QE2 announcement now out of the way, Mr. Bernanke’s game plan is as follows:

  1. Lower interest rates for “everybody“ and “everything”
  2. Stocks & Bonds will then increase in value making “everybody” and “everything” feel wealthier
  3. “Everybody” will then start to buy “everything”
  4. Pray that the price of “everything” doesn’t increase too much and therefore cause “everybody” not to buy “everything”
  5. If steps 1 to 4 are successful, businesses will begin to create jobs for “everybody” because they will once again be buying “everything”
  6. Ignore the housing market problem
  7. Ignore the debt problem
  8. Ignore the effect of numbers 6 & 7 on the banks

Pray that foreigners continue to buy newly issued American debt Simple enough. But wait, this is where it becomes interesting.

November 2010: The Money Printers (pdf)


IceCap-Asset-Management-Limited-Global-Markets-November-2010 -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Dick Darlington's picture

Best opening i've ever seen in any research piece. Totally cracked on the band introduction. JCT in keyboards, Looool!

ATG's picture
  1. “Everybody” will then start to buy “everything”
  2. Pray that the price of “everything” doesn’t increase too much and therefore cause “everybody” not to buy “everything”

1 Began last summer

2 May be Now

Wonderful how price works to decrease demand, increase supply and reduce price, somehting central planners rue everywhere

Debt default deflation batches

bank guy in Brussels's picture

Re « Best opening i've ever seen in any research piece. ... »

Many ZH readers probably don't know the really classic comedy piece from decades ago, "The Intro and the Outro" from 1967 and the Bonzo Dog (Doo-Dah) band.

Musicians joining a piece ... and then keep on joining and joining ... including various historical and famous figures ... French President De Gaulle on accordion ... 'Adolf Hitler on vibes. Nice!'

3 minutes on YouTube, unforgettable:

Gloomy's picture

Fabulous graphic on "The New Economic Cycle". I'm laughing and crying:

Dismal Scientist's picture

Its by Gordon T. Long. Was posted here on ZH a while ago. See his website 'Tipping Points' for more.

goldmiddelfinger's picture

"...we will not be decreasing our stock positions...."


Another wildebeest bleats from within the homogeneous herd

Pondmaster's picture

.. positions in Ag commodities and precious metals . How else are you going to break even with inflation ... oh yeah all in in TIPS ? Not!! Food inflation , fuel and everything else inflation is here to stay . But .. shhhh ... we really don't have any inflation ... mums the word .. shhh.


slaughterer's picture

But Ben should be singing:

"Buh, buh, buh ... Bennie and the Inkjets..."

Problem Is's picture

"Ben's got electric boots, a mohair suit..."

HarryWanger's picture

If we move back above 1200 in the next couple of minutes, it could rally hard to close.

chet's picture

We'll see.  It will have to be a heck of a stick save.  Unlike those who hound you here, I actually went with the Wanger Trade upon the announcement of QE2. 

I now hold you personally responsible for my financial well being (just kidding.)

SheepDog-One's picture

Step 1- Collect underpants.

Step 2-  ?

Step 3-  PROFIT!

Underpants Gnomes business plan and Bernanke seem to have a lot in common!

GoinFawr's picture

With sheepdog: hahahahaha!

@ Harry: if the DOW does manage to pare its losses moments before the close, won't the PM's recover to an equivalent degree?

Also, wouldn't that shove the DXY right back down to tracing out yet another small portion of a H&S topping pattern within the giant H&S fractal expression that makes up that index?

Have a great weekend all.


ATG's picture

If we move back above 1200 in the next couple of minutes, it could rally hard to close

Not today

The hook may be set

max2205's picture

The biggest laugh will be spx down 15% by Dec. And everyone screaming about why the PD's could push stocks up. Paul holds hearings asking what trades took place. But we all found out (like TARP) that it's sitting on PD balance sheets. Like before they were unwilling to lend tarp but now they are unwilling to buy alpha.

WE've been fooled AGAINNNN, NO NO!

Bill Lumbergh's picture

Alternatively we learn they are loading up on shorts since everyone that wants to be long is already long...there is no such thing as a free lunch even if Bernanke promises one.

H. Perowne's picture

Step 9 . . . Profit

SheepDog-One's picture

So as long as everyone can just imagine theyre wealthy, although dirt poor, homeless, and hungry, it should all work marvelously without a problem!

redpill's picture

Can anyone tell me how, practically speaking, the Fed Board of Governors is any different than the Chinese Communist Party Central Committee?

The Real Fake Economy's picture

PhD's in Economics vs PhD's in Engineering

GoinFawr's picture

Effing funny vid. Thanks for that.

JW n FL's picture



Thanks! Great Video... send it to everyone... everyone!

i-dog's picture

"Quantitative Easing Explained -"

Toooooooo funny!!! A real screen washer (coffee everywhere!).

Her: "I want to bang my head against the wall"

Him: "You should not do that"

Her: "Why not?"

Him: "Because the healthcare is too expensive"

EvlTheCat's picture

“Everybody” will then start to buy “everything”.

I felt so good today, soooooo... warm and fuzzy about the economy, I marched right down to the bank pulled out a third of my savings and bought something alright.  I don't know which I feel better about, pulling my money out of the bank, or what I bought.  I am sure time will tell me both were satisfactory choices.

I can tell you several things that gave me instant satisfaction though.  Seeing the tellers face when I wrote in the amount on the withdrawl slip.  Then the managers face when she had to come over and approve the withdrawl.  Then both their faces when they had to call and get it aproved by the "powers that be", and I would not answer their intrusive questions about the company was I was making the check out to.  "But it's for your protection???", they promptly spouted.  I told them just loud enough for everyone in line to hear, "but that is what I am doing, protecting myself".  After that the rest of the process was expedited.

For some reason "Money" from Pink Floyd was stuck in my head though.  I just couldn't get the hang of that "do wa diddy" song.

Ratscam's picture

have not laughed as much for a long time - simply great article!

Long live Norway and Switzerland which will get slaughtered as well!

mcarthur's picture

Ben needs to understand the difference between cost push and demand pull inflation.  Ben is stoking the first in hopes of getting the second but this is a pipe dream.  His comments that commodity price increases will not flow through to final consumer pricing is laughable.  If he actually believes this he is stating that his policies will kill corporate profits as expenses rise and revenue doesn't.

Snidley Whipsnae's picture

If the wages of most American workers remain stagnant and jobs continue to disappear, how are 'the people' going to feel 'wealthy enough' to go out and buy stuff?

I suppose Ben is only concerned that 3% of the population feel 'wealthier' so that they will spend 3% of their new found wealth? Trickle down?

I will go ahead with plans to purchase a push cart banana stand. I have some innovative ideas in this area. A banana in hot dog roll with mustard, onions and smothered in chilli sauce made from cat food and all for a 90% silver dime.



ghd outlet's picture

GHD australia is authorized ghd outlet brand online seller provides all kinds of ghd hair straighteners. Such as cheap ghd ,
ghd iv styler, pink ghd etc. GHD styler can make you life more confidential and colorful. Welcome to