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A Paralyzed Fed Defers Decision On Monetary Policy To Primary Dealers In An Act That Can Only Be Classified As Treason
- Bank of America
- Bank of America
- Ben Bernanke
- Bloomberg News
- Bond
- Bond Dealers
- Capital Markets
- Citigroup
- Credit Suisse
- Deutsche Bank
- Dollar Destruction
- Federal Reserve
- goldman sachs
- Goldman Sachs
- JPMorgan Chase
- Lloyd Blankfein
- Monetary Policy
- Monetization
- Morgan Stanley
- National Debt
- New York Fed
- Purchasing Power
- RBC Capital Markets
- RBS
- System Open Market Account
- Time Magazine
As if there was any doubt before which way the arrow of control, and particularly causality, points in America's financial system, the following stunner just released from Bloomberg confirms it once and for all. According to Rebecca Christie and Craig Torres, the New York Fed has issued a survey to Primary Dealers, which asks
for suggestions on the size of QE2 as well as the time over which it would be completed. It
also asks firms how often they anticipate the Fed will re-evaluate the program, and to estimate its ultimate size. This is nothing short of a stunning indication of three things: i) that the Fed is most likely completely paralyzed due to the escalating confrontation between the Hawks and the Doves, and that not even Bernanke believes has has sufficient clout to prevent what Time magazine has dubbed a potential opening salvo into a chain of events that could lead to civil war: in effect Bernanke will use the PD's decision as a trump card to the Hawks and say the market will plunge unless at least this much money is printed, ii) that the Fed is effectively asking the Primary Dealers to act as underwriters on whatever announcement the Fed will come up with, and thus prop the market, and, most importantly, iii) that the PDs will most likely demand the highest possible amount, using Goldman's $2-4 trillion as a benchmark, and not only frontrun the ultimate issuance knowing full well what the syndicate of 18 will decide in advance of what the final amount will be, but will also ramp stocks on November 3 to make the actual QE announcement seem like a surprise. This also means that the Primary Dealers of America, which include among them such hedge funds as Goldman Sachs, such mortgage frauds as Bank of America, such insolvent foreign banks as Deutsche, RBS, UBS and RBS, and such middle-market excuses for banks as Jefferies, are now in control of US monetary, and as we explain below fiscal, policy.
It also means that the Fed has absolutely no confidence in its actions, and, more importantly, no confidence in how its actions will be perceived by the market which is why it is not only telegraphing its decision to the bankers, but is having its decision be dictated by them, an act so unconstitutional it would be seen as treason in any non-Banana republic! This is the last straw confirming that the only ones left trading the market are the Fed and the PDs, passing hot potatoes to each other, and the HFTs, churning the shit out of everything else to pretend someone is still trading.
And the saddest conclusion is that this is the definitive end of US capital markets: not only is the Fed's political subordination a moot point, but the Fed, and the middle class' purchasing power via the imminent dollar destruction that is sure to follow as the PDs seek to obliterate their underwater assets by raging inflation, is now effectively confirmed to be a bitch of Lloyd Blankfein and his posse.
The official explanation for this unprecedented incursion by the banking crime syndicate in US monetary policy is as follows:
Avoiding Disruption
Treasury officials say they want to avoid any disruption to the $8.5 trillion market in U.S. government debt, the world’s most liquid, as the Fed weighs restarting large-scale asset purchases. The Treasury also doesn’t want to give any impression to investors, particularly those based overseas, that it might be coordinating with the Fed to finance the national debt.
“Treasury debt-management decisions are designed to deliver the lowest cost of borrowing over time and are entirely independent from monetary-policy decisions made by the Federal Reserve,” Mary Miller, assistant secretary for financial markets, said in an e-mail to Bloomberg News yesterday. Before joining the Treasury last year, Miller was head of global fixed- income portfolio management at T. Rowe Price Group Inc. in Baltimore.
The Treasury is scheduled to hold its quarterly meetings with bond dealers tomorrow, ahead of the department’s Nov. 3 refunding announcement.
Fill in the blank: the Fed has essentially given PDs the option of $250BN, $500BN or $1 trillion in monetization over six months. It is now absolutely clear that the PDs will pick the biggest number possible... which incidentally amounts to $2 trillion per year, and is precisely what Goldman's downside case was, as we presented previously.
The New York Fed surveyed primary dealers required to bid in U.S. debt auctions. It asked dealers to estimate changes in nominal and real 10-year Treasury yields “if the purchases were announced and completed over a six-month period.” The amounts dealers can choose from are zero, $250 billion, $500 billion and $1 trillion.
Of course, since a $2 trillion purchase over 1 year means the Fed will have to monetize every single bond issued, the SOMA limit will have to be raised, another prediction we made months ago:
The Fed is unlikely to buy up the entire supply of new securities, although it may adjust its internal guidelines of how much it can hold of any given issue. The Fed limits itself to owning no more than 35 percent of any specific security it holds in its System Open Market Account, or SOMA.
“Our Treasury strategists point out it could also cause pricing distortions along the curve, if, for example, the Fed continues to target a 40 percent purchase concentration in the 6-10 year maturity bucket, as it has in its recent purchases,” analysts at JPMorgan Chase & Co., including Alex Roever, wrote in an Oct. 22 research report. The report predicts the Fed will buy about $250 billion a quarter during the easing campaign.
How about $500 billion?
And, incidentally, since the "independent" Treasury will be forced to issue more debt to fill all the demand for $2 trillion over the next 12 months, as there is not enough debt in the pipeline to fill $2TN worth of demand and prevent the entire curve pancaking at zero (i.e., the 30 year yielding precisely 0.001%) it also means that the government will be forced to come up with more deficit programs, which also means that primary dealers will now also determine US fiscal policy.
Which begs the question, why is anyone pretending that the political vote on November 3 matters at all?
Below are the 18 banks that, in a completely separate vote, will henceforth rule America, regardless of what particular puppets end up in the Congress and Senate:
BNP Paribas Securities Corp.
Banc of America Securities LLC
Barclays Capital Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc.
Goldman, Sachs & Co.
HSBC Securities (USA) Inc.
Jefferies & Company, Inc.
J.P. Morgan Securities LLC
Mizuho Securities USA Inc.
Morgan Stanley & Co. Incorporated
Nomura Securities International, Inc.
RBC Capital Markets Corporation
RBS Securities Inc.
UBS Securities LLC.
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Pinata was broken before the party began. The sweet smell of SDR's in all our pockets is at hand. Game over man! And a new one begins.
Not if the rest of the world has anything to do with it.
If everything turns to shit economically and monetarily world wide , the world will BEG for an answer , and plea for One world currency and One World leader . Coming to a nation near you . Admission - Your life and soul .
World tax, like we're not paying the UN enough already.
This is the war we are in right here. Is America going to be a state of the world? If so, we are going to need a new name.
Ben: So, I asked you here to discuss your ideas on the size of QE 2 of X.
BNP Paribas Securities Corp. - We're in whatever camp Goldman is in, they seem to always have a good feeling about these things (*wink*).
Banc of America Securities LLC - We don't have a problem going with the majority.
Barclays C - Uh, what were you thinking?
Cantor Fitzgerald & Co. - Yeah, any ballpark figure to work with, or can we just throw anything out there?
Citigroup Global Markets Inc. - We're good with anything, we don't expect to be together much longer but a good final pufff under our 'chutes is always appreciated.
Credit Suisse Securities (USA) LLC - Are you talking 'DOLLARS'?
Daiwa Capital Markets America Inc. - As long as we can get our house in order first, we're good.
Deutsche Bank Securities Inc. - Two Hundred and Fifty BILLLION Dollars? Remember, Benjamin, we still make a few things!
Goldman, Sachs & Co. - Call Hank! NOW
HSBC Securities (USA) Inc. - 3 trillion couldn't hurt. Could it?
Jefferies & Company, Inc. - 4 TRILLION!
J.P. Morgan Securities LLC - 6 TRILLIONators!!
Mizuho Securities USA Inc. - Jamie jamie, if we put that amount in the computers, they will break.
Morgan Stanley & Co. Incorporated - "TOTALLY AWESOME!!"
Nomura Securities International, Inc. - Eeeeerigoshinon agopeey beddirashagadanonn!!!! Hari Kari-anan!!
RBS Securities Inc. - Ok, picture if during the announcement we could bring in the bagpipers! Woot - there it is! This WILL BE a world event - we'll all come out together, hand in hand, with a new slogan our marketing team has come up with, "Yes, WE CAN".
RBC Capital Markets Corporation - meh?
UBS Securities LLC. - Fuck it - 100 Trillion!! It's a no brainer - you gotta surprise 'em, go wayyy out there. It's time Ben - let it be your time - let it be our time.
Cute!
Nicely done!
LOL!!! The UBS at the end was inspired!
Holyshit!!! This is the last straw of a system that is so broke, so taunted, so corrupt, that I want to scream at my Bloomberg terminal!A fucking survey,,that is how they think about making monetary policy...Christ ! And of course they ask all the PD?? They certainly didn't ask all the retirees in America before they bury interest rates from 4% to 0.5% Live on that assholes.!! I hope the questionaire included potential bonus information, I wouldn't want to upset anyone at Goldman Saches!!!
WTF?
There is NOWHERE to put the money to work paying a freaking 6% return!
Money in the bank doesn't MAKE money by fuckin magic, dude. There's no ENTITLEMENT to a nice fat coupon with no risk.
This notion that money can do work and just grow by the magic of interest compounding is what needs to go. There's no demand to borrow at rates higher than the Fed is offering - THAT IS WHY they had to drop rates!
Money in the bank is a LOAN to the bank! If they cannot reliably get 5% return on it, how the hell would anyone expect them to PAY that?
Oh I don't know, how about all those big bank credit cards charging between 10% and 30% interest? How about the 4% fees for a 6-month balance transfer? You think maybe the banks, borrowing at 0% from us (directly through savings, indirectly through the Fed), could spare a couple percent?
And I don't know about your neck of the woods, but loans (excluding mortgages) aren't exactly cheap out here. Auto loans from all but a couple credit unions are hovering dangerously close to 10% now.
I should be shocked.
Alas, at this point the only shocking thing would be if they didn't defer to the Primary Dealers to make both fiscal and monetary policy.
Ben doesn't have to ask the PD which cusips they want him to buy, because the answer is: all of them.
Incidentally, it also proves that the FED knows QE doesn't work and can't work. Either QE is a serious, scientific thing, and then you should be able to determine yourself the amount needed, either it is a fraud.
Yep, it's a "how much do you want before the music stops?" kind of question.
These banks -- knowing that they had the GSE's, the Treasury -- and yes the Fed -- to back them up offered Americans a "Pick your payment plan".
Why wouldn't American Civil Servants offer them the obverse?
We are all taxpayers now.
Yeah well this shows what we already know, the fool Bernanke has no clue on how to solve any problem, even the one he studied for years in hindsight getting his Phd, the Depression. When in doubt you have to do what is morally and logically right, instead of following the crack addicts on Wall St. The Fed has been floating trial balloons for 2 months now through mouthpieces like the dumbass Bullard and the only answer that will be accepted by the criminals that run Wall St is more printing, more money, else all goes down.
So the answer is the Fed will print whatever it takes to keep their masters happy, they have absolutely zero idea on how to make a decision, or worse yet the consequences of any decision they make. Bernanke needs to be removed now, he is a loose cannon gone 4th order playing the role of world's largest day trader, probably maxed out on his Prozac and Ritalin prescriptions so he can dress in the morning and tolerate the pressure.
We need an adult with moral conscience put in charge - unfortunately that won't happen as long as our political leaders fail to call out the fraud, thus we will continue to see debasement of the currency and destruction of middle class America until we no longer allow it to continue.
Peace out brothers
WhatEVER!! HOW DO WE TRADE IT!??!?
With a HELOC, and this breaking news, I am SOOOOooo CLOSE to quiting my part time job bitches!! Applebee's for LIFE!!
plain as day for everyone to see.
Is it time to call in Trogdor yet?
I swear when I first read this piece Wells Fargo was called out as the biggest frad of all. What happened - old Warren call you up and make an edit?
http://www.newyorkfed.org/markets/pridealers_current.html
the fed is a private bank, it is doing what its shareholders want. like any good company
Man O Man, the riots are going to go ape shit.
Never saw it coming, those arent my footprints!
What does a bank have to do to get fucked in this city?
When they wear a chastity belt like the Fed, ain't gonna happen.
Incredible.
The (evil) genius behind the Fed's plan is the fact that they keeping making their actions more and more complex for the average American stooge to understand. The MSM is clearly too fucking stupid to understand much less report on the Fed's chicanery. The truly sad part is, there are genuinely intelligent people out there who have absolutely no idea what is going on in their own government. When they finally start to figure some shit out, it will be way too late to do anything meaningful. They will wake up one day, and it will all be over. I've seen numerous references here and other places to some "lone nut" firing the first shot that causes people to finally wake up. Can't happen soon enough.
purposeful double post:
dedicated to Ben and Timmay:
http://www.youtube.com/watch?v=In02RLoJbDA&NR=1
(the best party band of the Twin Cities)
You said, "The truly sad part is, there are genuinely intelligent people out there who have absolutely no idea what is going on in their own government."
The FED is NOT the government, it's a privately owned banking cartel. I emailed the NY FED and asked for a copy of their original charter, what I recieved documented that the 3 largest shareholders at it's inception were Chase Bank, National City Bank and Goldman Sachs.
The FIRST thing the people need to know is that the government is nothing but a hand maiden to the FED.
You said, "The FED is NOT the government,..." which, technically, is true.
(I had this same conversation the other day...)
Funny thing about the FED... say you want to send the FED an email... if you look up their website, you'll notice the URL is www.federalreserve.gov. Notice the .gov designation. Do you think the FED was given a .gov TLD by accident? The only way to receive a .gov TLD is by registering a domain through http://www.dotgov.gov/ The government officially determines which entities are considered government run/owned enterprises. For all intents and purposes, even tho many know it's technically not true, the FED is, according to the United States government, currently recognized as being part of the United States government.
My point is... maybe pretending that the FED is NOT part of the government is one of our biggest problems.
You're basing its inclusion on a gTLD? really? Perhaps pretending that it's part of the government, when it isn't, is the problem instead.
The Fed is the government when it suits their purposes.
privitization of profits, socialization of losses, bitchez!
Oh, you mean like Fraudy and Faulty? Yep.
It's HYBRID gov and corporate:
http://www.newyorkfed.org
http://www.bos.frb.org/
http://www.philadelphiafed.org
The traditional executive, judicial, and legislative branches are actually Federal Reserve subsidiaries.
Soon to be a multiple choice question in social studies classes at high schools across America:
Name the four branches of govt:
A) Judicial, Executive, Legislative, Communicative
B) Distributive, Judicial, Legislative, Executive
C) Executive, Financial, Judicial, Legislative
D) Derivative, Judicial, Executive, Legislative
As usual, the answer will be "C."
Why doesn't anybody ask me: "How much money do you need for retirement?"
Because you'd expect them to keep a straight face.
.
2012 coming true!?
get religious, bitchez.
PIMCO is not on the list of those 18 masters of the universe.
No wonder why Mr. Gross is so mad.
I really don't get most peoples reactions here... I guess most people forgot it's called survival of the fittest for a reason. 1) Capitalism- deal with it bitches... Play the game, there WILL be a winner and a looser... I have already figured out where the upper hand is ;) have you? 2) As our increasingly socialist government continues to weaken itself- can you REALLY be surprised the sharks smell blood and are going in for the kill!? For f@^$ sake, some People have to wake up and realize where true power is... The Romans built the colosseum for 1 purpose... Control- own the mob and you own the world... Get ready cause it's about to get ineresting!
What is interesting is your furtive admiration of those who cause us harm. In my book, people like you deserve the guillotine, too.
I really really don't want to sound like a dick- but it's sounds to me you were the kid picked last on the playground.
Honestly- can we all get real here? Most of us are traders right? In our game there is a winner and a looser- if your not slaughtering the pig, chances are your next on the chopping block... I am LOVING watching big government get it's own shit being sold back to them for a premium! Ahhh the free market AT IT'S FINEST!
Welcome to the next level of Darwinism... Evolution is a bloody, horrible, and possibly masicistic game- even Rome purged itself, and who's to say WE are above the laws of nature?
Sp no- I dontadmire them for givin th US taxpayer the proverbial horizontal hokey pokey- and giving us all a sore butt... However I am not afraid to call it like I see it and Respect institutions like GS for just being that much better than the rest of us at this game...
You ever play monopoly
Well, just riddle me this: how is GS better than us in a way that should earn them respect? I'm sorry for being born a Gentile, but I've never had a fighting chance of being better than them at their game as long as I'm not allowed to play. It's not something I could conceivably 'win' at, nor you, nor anyone else here.
And you just hit it out of the park! Now your getting it!
Seriously tho- you just hit the nail on the head- it's THEIR game THEY wrote the rules, THEY WON BEFORE IT EVEN BEGAN and to believe otherwise is foolish... So play the game- there is nothing you can really do that would make any difference! Let the deck of cards fall and be sure to be on the next kings good side ;)
What an incredibly uplifting a message. Just out of curiosity, most days how DO you ever get the shoeshine off your tongue, though?
rofl
What a little KGB agent we have here, no?
In my book, lying, cheating and stealing your way to the top earns one an ass beating of the century. When everyone is cheating, the game ends because there is no one left to cheat.
Oh... and I WAS that kid that got picked last.. every. single. time. I was horrible at sports because I actually followed the rules.
I have played Monopoly and when the banker cheats he gets kicked out of the game or the other players beat the shit out of him.
Also, what every six grader knows it that you can't have a fucking monopoly game with more than one banker or an unlimted amount of fucking monopoly money.
I was one of the kids that got picked first on the play ground and I agree with the other poster, you don't get it, and we should beat the shit out of people like you.
The more important Monopoly rule is that when one player has all the money the game is over. It's about over.
umm...this must be for U...
http://www.youtube.com/watch?v=LoQYw49saqc&ob=av2n
The founding fathers won. Slime like you have pissed away the rewards.
My kids kicked my ass at Monopoly. They teamed up, and after they eliminated me, split the profits.
You should have done some Quantitative Easing by having the Federal Reserve Bank buy your mortgages at 4x market value when your kids aren't looking, and if the kids catch you, tell them to go get a legal pad and submit a FOIA request. After they spend five minutes writing it to your specifications, tell them you're not a govt agency under FOIA law, and crumple the paper in their young faces and drop it on the floor.
Never too early to teach your kids that the house (govt, GS, Fed, tenured professor that is giving them a "C" for having the wrong thoughts on their freshman essay, etc.) always, Always ALWAYS wins. Their tears will help them remember the lesson.
So morality and rule of law are ultimately meaningless. It's kill or be killed. REALLY? That is the world you want to live in?
No it's not- but last I checked the 900 million year old game of life isn't exactly a bed of roses... Yes I personally still hang onto the glimmer of hope of a utopian world too- and hell maybe we will figure it out... But as long as there are sharks swimming in these waters, I am not willing to wager someone will not get eaten. If history is going to continue it's vengeful and power hungry ways- we will continue to see man struggle and fight to be on top... And when the stakes get high enough, yes, it's kill or be killed: see WWII, WWI, Civil war, American revolution... Etc... Etc... Of course that's the literal translation- the very G rated approach is in the free market- every trade has two sides - and only one can be right... The only real thing we can do is play the game- and IMO the only Peaceful solution is to suck it up and make some babies to get the real estate market bid again< cause apparenty that's what the FED is betting on. Unless we actually start a revolution 99% of all attempst to make change happen will only be met with more smoke and mirrors tricks (from the true seats of power) to keep the 99.99% of ignorant Americans (not those that are here and actually see the problems) mislead and utterly confused... Go ask someone on main street USA what a credit default swap is and you will be met with a blank stare followed by a comment on what snookie did last night on jersey shore... I guess what I am trying to say is, I don't know if I believe that Americans really have balls or the brains anymore to get any real
Change to happen. That would require us to beat the fools at GS at their own game... Rant over! Btw loving these posts lol- I live a good argument
The world is competitive, because we all chase pieces of paper and there never is enough to go around. The world is corrupt, because we all chase pieces of paper and there never is enough to go around. The world is full of suffering and poverty, because we all chase pieces of paper and there never is enough to go around. The world is full of murder and bloodshed, because we all chase pieces of paper and there never is enough to go around.
Get it? Maybe it is time we rethink this plan because it SUCKS.
My sentiments exactly. Paper money sucks. I wish I could barter AND use gold and silver.
Laws of the financial universe: Supply and Demand & Risk
Like the avatar... Let’s not forget that Ted Kaczynski a.k.a. The Unabomber was a U.C. Berkeley mathematician recruited by the CIA. into the M.K. Ultra mind control program. The accounts I have read state once Kaczynski found out what was really going on he quit the program and fought against what he understood to be the enemies of the American people by attacking the foundations (which were set up by the Robber Barons to sleazily and deceptively steer, administrate, subvert, and destroy the United States).
There is an administrative class of liars and con artists.. Geithner’s dad headed the Ford Foundation and Obama’s mom worked for him at the Ford Foundation. Bill Gates’ dad headed up one of the fronts for global eugenics known as Planned Parenthood. Benanke might have gone to Harvard but he spent his summers apprenticing to the Mid-Atlantic crime boss for the syndicate. The whole system is like that.
You state –“The world is corrupt, because we…”
I’m going to disagree with you in that there is no ‘we.’ There is us and them. A lot of the behavior you speak of is due to social engineering by the controllers.
The list 18 banks that Tyler states: “…will henceforth rule America, regardless of what particular puppets end up in the Congress and Senate” is well worth making note of if you haven’t already.
luved beetlejuice
+1. great points.
We think we have to play the game, yet our greatest thinkers through the ages have lamented and showed us other ways to live, ways that are more in line with our conscience and our idea of a better world. Lao Tzu, Buddha, Jesus, Muhammed, Gandhi, Jefferson, Huxley, Einstein, Orwell, Vonnegut. People can choose to stop playing the game, they just haven't in the history of the world so it gets kind of discouraging. Why not just give it a shot? Resources are finite. Growth is finite. We can either live in harmony with the earth and one another or perish. The wisest among us have been saying it for thousands of years. The crisis, as it unfolds, bears many similarities to eschatological predictions because this is the point, now, where we have the ability to destroy ourselves and our planet, or decide to just abide man.
You actually get Walter. You should check out "ZeitgeistMovement.com" ... they are doing some amazing work there.
You actually get it Walter. You should check out "ZeitgeistMovement.com" ... they are doing some amazing work there.
Sorry to ask a stupid question, I'm not in finance as my handle suggests, but will the Fed use this "money" to purchase MBS from the banks, or will it be treasuries as in POMO?
2 trillion gives you a lot of room to maneuver.
With that kind of money they will buy MBS, CMBS, CDS, Treasuries (7 , 10, 30 year), TIPS, Ferraris, hookers, cocaine, lots of transvestite porn, more judges, more regulators. I did not mention COiTUs or POTUS because they have bought that long ago. That much money might even let them buy the SCOTUS.
SCOTUS has already been bought and paid for...........
How do you think Sotomayor and Kagan got in???
Damn, what else is left to buy?
Well written, as always, Mr. Durden. It's a shame only the chosen few who venture to this site will get to see this take on the news. I can't wait to see how CNBC spins this into great news. I'm guessing two random monkeys in suits, the pro saying we need $5T+ and the con saying we must be conservative and keep it under $3T or so.
It's like asking the person robbing you exactly how much they would like you to give them.
I just loaned a million dollars to myself right now. For some reason, I am not a million dollars richer. No worries on the interest I charge myself, I can just roll that every year.
The masses will only understand when they can't afford to buy hopium anymore.
The withdrawals will be ugly.
Until then, buy gold!
The masses are dumber than a box o rocks... They will forget this ever happened before they stop buying "hopium"... This has happens dozens no hundreds of times in history- your either a king or a pawn.
Either way- buy gold lol
i really wish the aaron burr society would become more, well, proactive...
http://www.aaronburrsociety.org/aaron_burr_society_home.html
After reading the comments; all I can say is:
MY FUCKING GOD, I MISSED YOU GUYS !!!
No way! It's the Cheek!
And we by god fucking missed you too you cheeky bastard! { :
high cheeks, just kidding†
Welcome back. I have discovered that I miss reading your insights.
Nice to see you CB
<looks at CB suspiciously>...how do we know it's really you and not Timmy Geithner's personal assistant, who just cracked your ZH password while you rot in George Bush's Uruguayan estate's prison?
sorry but this cannot be allowed to happen
Please all of you in America start an end the FED movement
thats all it need be no tea partu that can be hijacked just one Agenda
END THE FED
everyone needs to stand outside liberty street and shout these words with a pic of Bernanke in an ornage jumpsuit or a noose around his neck
Please do it now
.
What happens when the DXY hits Zero?
#sible... which incidentally amounts to $2 trillion per year, and is pre
dont need to be smart cookie to know...US FEDERAL BUDGET DEFICIT IS GONNA BE 2 TRLN $ in 2011 fin year..
any questions ???????? does anybody in right mind would buy $$based debt ?
end of story...
alx
Curious to see any market reaction to this article tomorrow. What a circus.
My "theory about the day of reckoning" says that the market will blow up the very second when the illusion about the FED being in control vanishes.
Today seems like a good candidate for such day.
I repeat, what are these cunts buying with the QE money, MBS?
They aren't buying anything yet (QE2). They talk of buying treasuries. Nobody knows exactly what will happen unless some people have been told exactly what will happen. However, ZH is saying that this Bloomberg article is conveying that the Fed is going to let the banks tell it what to do.
I read the Bloomberg article and I'm not taking it that way. To me, it says the Fed is trying to get as much information about what will happen before they make a decision. This is the reason for many conflicting articles coming out of various sources. Goldman says $4T, what's his name says 500B, WSJ article says 200B. Now he asks the banksters for their opinion. He's gotten himself in between a rock and a hard place and their is no right answer. He's trying to decide what is the best wrong answer. He may or may not do what they wish.
If they are going to fucking do it I say they randomly pull 500,000 SSN numbers and give a million to each asshole that wins and let the chips fall where they may. I doubt he's going to follow that advice either.
Taxpayers are first on the list to pay, last to get paid - unless incorporated where no rules apply.
Bonuses on Christmas.
I would tend to think not judging by Mr. Pimp's anti fed rant yesturday.. they must have double crossed him but good.
Nah, it just means that now he has sold and might be short.
Can you tell me if my logic is correct. The Fed makes up money from thin air, gives it to itself, the banks, the banks then purchase treasury bonds from the Fed? Can someone also explain the mechanisms by which the taxpayer foots the bill for this Fed money printing. I'm just a simpleton trying to get to grips with the fraud at play, I don't care how many times I get junked. I just want answers.
The fed doesn't exactly make up money out of thin air. They need a keyboard to type it in....like this: 1,000,000,000,000. There, that's how easy it is to for them to get a trillion dollars. The treasury bonds are bought in open market operations (POMO).
Read about that here: http://www.newyorkfed.org/aboutthefed/fedpoint/fed32.html
look up monetization on wikipedia or the like.
The tax payer foots the bill when Treasury issues new bonds. Well, that's if they actually ever collect taxes to pay off the debt. I suppose if the government just goes deeper and deeper in debt and finally defaults then who ever bought the treasuries will foot the bill. (That could be you or I or China or Japan or who ever bought the stuff (I won't touch it now). When the Fed buys stuff get hurt too. We eventually get screwed through a weakening dollar. Higher commodity prices eventually get passed down to the consumer. However, in more philosophical terms I think we can say the whole world gets fucked when one little bearded fuck face gets this much power.
The big problem now is that if you have savings you don't know where to put it. Or, at least I don't. I've put mine in precious metals. But who knows..that could tank if QE2 is small and cautious. But I need to make money. If I was just wishing for wealth preservation I'd have a short position in the market, precious metals, some foreign bonds, maybe some swiss francs and a couple other currencies.
That make any sense?
Ignore my post as I am not a finance guy, but the taxpayer pays through;
1. mega -dilution (money printing) therefore higher prices for everything
2. unfair advantages given to some components of the system (banksters, politicos, etc); free money is an unfair advantage at 0.25%. Free QE2 money also.
3. decreased pension incomes as pensions are based on the long bonds
4. decreased incomes as the game is deflation in incomes for the middle class and inflation in incomes for the pigs.
5. The loss of the rule of law. A biggie imho.
6. Moral Hazard; the consequences of which will mutate like an unpredictable methed up fractal. Why follow the law, why be fair, why not cheat if they do it? You can already sense it here at Zero Hedge.
7. The US is finally and ultimately responsible for all the crap toxic shit Burndunke is buying. e.g. We are responsible for all of Fannie and Freddie's toxicities.
8. There is much more, but it is getting late. Read some of the old posts. Hopefully others will add on.
The Fed basically buys assets from the banks, they may even pay more than those assets are worth, this increase the banks balance sheet and normally they would lend it out. Now they generally just buy more treasuries or cover losses. It puts liquidity into the system so it doesn't stop functioning. If the assets the Fed bought go down in value the Fed takes the lose. The people pay with higher energy and food costs because the dollar is seen as worth less by countries and investors around the world.
If the Fed buy's treasuries because no else will, it generally has a bank or primary dealer buy them, then the Fed buys them from the bank or dealer. It hides it somewhat, but everyone knows. In this case people pay with higher costs as countries and investors shy away from the dollar, but also in taxes and decreased gov't services down the road as the gov't has to start paying back it's debt.
Exactly why it is obvious that, rather than the rebel many believe Santelli to be, he is in fact one of the greatest MSM puppets. How many time have you listened to him caw about the 'success' of an auction?
How many time have you listened to him caw about the 'success' of an auction?
LOL!
It's more accurate to say that dollar-holders, not taxpayers, foot the bill for money printing.
So be happy, the Chinese are getting screwed right along with the American taxpayer.
anythingandeverything..the trick in the announcement is that the money is passed to the unholy sisters, whom will scorcheth the land of efficient pricing. .. and yes, the FED controls the US money supply and yes, the whole US consumer 'engine of the world economy' thing has been excessively inflation-driven (monetary phenomena)- which is not being allowed to correct.. and yes, food will become unobtainable..and yes, even the americans will become hungry en masse, and yes, the national guard will turn Washington into a Green zone....what will happen, States will parcel allotments of land for people to grow food on...but what you need -is a further 32 acres on government land alloted to an address or single voter, maximum per household.
QE2 will break the fundamentals underpinning the system, every nation in the world knows this. The right course of action here would be for POTUS to sanction congress for a dissolution of the FED and to revoke the charter of some operational aspects of the banking cartel.
Gosh, this is going to be painful.
Finally, a cure for the obesity epidemic.
Close..E pilot.. three players, the FED creates money, the Treasury sells Debt which pays interest. The Banks invest in the Treasury Debt. Banks also have the ability to multiply the amount they spend depending on their reserves of cash - important- Treasuries count as Reserves. ..so a large part of banking reserves is already Treasuries. They can sell these to the Fed, but then, with the money they hold they can, as they could have done with the treasuries they just sold in any case, buy ~five times the amount of treasuries for the cash they just received...the issue is not so much the banks' ability to do this, it is that the FED should be buying the treasuries at this particular moment...because, the market for US treasuries is dicey and the Banks themselves are relatively uncapitalized -for linked reasons- so it is an artificial market, and in turn, that mispriced activity is most likely being used to further misprice other financial assets..and the world is sensitive to the price of financial assets.
The Fed has iterated that it's actions are not out of choice but out of neccesity. The issue with that argument is... it seems slightly perverse that this is the system anyone in their right mind should be trying so very hard to save.
Got my vote for quote of the day.
Doesn't matter how big it is, it will require a QE3, etc etc, should the system last that long... Bennie's shown his hand, and we see he was bluffing... no real surprise.
EZYJET PILOT
I believe that all QE amounts to is giving the banks a lifeline
They sell their worthless junk to the FED
in oreder to have fresh non toxic cash
so they can pump the markets up
Goldman is basically saying that the banks need 4 trillion to stay alive for now...
thats all QE is doing keeping the zombie banks alive a little longer at the expense of savers and anyone holding dollars
Tnats all it is
its not really inlfation per se its just banks will use this new money to speculate
i n whatever they choose.
Its absolutely criminal that it goes on
In a free m,arket these banks go bust and there is no FED end of story
and the markets sets interest rates not a central bank owned by satanic zionists
Celtic prophecy
Prophecies of verse 166 in OI: Ni accus bith nombeo baid: sam cin blatha, beti bai cin blichda, mna can feli, fir gan gail. Gabala can righ rinna ulcha ilmoigi beola bron, feda cin mes. Prophecies of verse 167 in OI: Muir can toradh. Tuired bainbthine immat moel ra/tha, fa/s a forgnam locha diersit- din atrifit- linn lines sechilar flaithie faoilti fria holc, ilach imgnath gnuse ul-. Incrada docredb-gluind ili, imairecc catha, toebh fri ech delceta imda dala braith m-c flaithi forbuid bron sen saobretha. Brecfa/sach mbrithiom- braithiomh cech fer. Foglaid cech mac. Ragaid mac i lligie a athar. Ragaid athair a lligi a meic. Cliamain cach a brathar. Ni sia nech mnai assa tigh. Gignit- cenmair olc aimser immera mac a athair, imera ingen..."
166. Then after the battle was won and the slaughter had been cleared away, the Morrigan, the daughter of Ernmas, proceeded to announce the battle and the great victory which had occurred there to the royal heights of Ireland and to its sid-hosts, to its chief waters and to its rivermouths. And that is the reason Badb still relates great deeds. "Have you any news?" everyone asked her then.
Peace up to heaven. Heaven down to earth. Earth beneath heaven, Strength in each, A cup very full Full of honey; Mead in abundance. Summer in winter... Peace up to heaven...
167. I shall not see a world which will be dear to me: summer without blossoms, cattle will be without milk, women without conscience, men without valor, Honor will be found short. Conquests without a king... Woods without mast. Seas without produce... False judgments of old men, false precedents of lawyers, every man a betrayer, every son a reaver. The child will go to the bed of their parent, the parent will go to the bed of their child. Each their siblings mate. They will not seek any mate outside their own house... An evil time, son will deceive his father, daughter will deceive mother, ..
You would be amazed what was writen in runes 2 thousand years before jews roamed
I would ask everyone to take the names of their children to make sure the tree of rot stops before the fruit drops. The parents will be far gone before this is done.
Can't let this cancer spread any farther than it has to beyond Winter Solstice otherwise the rest of the orchard will be rotten.
Gosh, that's astonishing, especially since runes are Germanic, not Celtic, the runic alphabet is derived from a Lebanese alphabet called Phoenician (presumably indirectly via Etruscan, Latin or some other Italic alphabet - by the way, Hebrew of course is also derived from Phoenician), and the oldest runes yet found are from the 2nd century AD, whereas much of the Old Testament was written at least six centuries earlier, and the legend of Moses is set roughly around 1200 BC.
Awwww, now you've gone and ruined CPL's cogent and tightly-worded little story!
Can you pronounce the word "Shylockracy"?
Come on, don't be coy and give it a try. It can very be liberating.
Good thing the law is written in pencil.
So glad I only see historical trends at times because, fuck, it's just like the ingredients to an awesome blood soaked revolution .
Fucking shylocks, hand given to friendship and then with other to sink deep in our backs. Starting to wonder if a certain German wasn't right on the money and I wish I were drunk saying that instead of just waking up and reading this shit.
Anyone else got their marks for the day?
Queen anne's lace, a bottle a vodka, one month in the bottle of vodka. Kill a man in about a minute without pain. For a woman, she menstruates heavily. Tasteless, odorless and looks like a heart attack. Pick accordingly and serve liberally.
This is Queen Anne's lace btw...might have seen it growing in ditches.
http://www.examiner.com/images/blog/wysiwyg/image/Queen_Annes_Lace_04081...
Very poisonious to men, birth control for women.
Why isn't Gold skyrocketing on this kind of news? Is everyone "comfortably numb" or what?
90% of the investors aren't sure which way to run when the obvious was appearent two year ago when the shit storm hit, which was get out, run and hide.
Hmm... Now I get it (and if that's the case, 90% of investors don't get it):
if a building is collapsing, you better get out of the building instead of guessing which part of the building may be the strongest one.
Similarly, when a financial system is collapsing, you better get out of the system altogether to save your ass.
Lead is always more valuable than gold. At high speed it can get you all the gold you want, or anything else.
Federal Reserve is a private owned enterprise, it has always been. Or rather, call it a conspiracy theory and get some more of this from your money masters.
20+ years ago I was a banker during the last crash. For a few years after that you never admitted to your occupation.
I thought all bankers were born in candlelit ceremonies with chanting.
when will people wake up
I try to mention all this and i get starnge looks from many people
truth hurst these days better just to joke around and discuss sport and what celebrity is shagging who
I mentioned to a colleage that theres a good chance the entire system will collapse if they keep bailimg people out and he
didn't want to hear just accused me of being negative
negativity or realism is not allowed it seems along with default
Empire of Illusion by Chris Hedges, he goes all into this "positive thinking" bullshit
Be very careful who you try to warn...you don't want anyone you don't trust 100% to "remember" you talked about gold all the time.
Four reasons I think.
1. It really isn't news. It has been an open secret that the cartel have been manipulating gold and silver for a long while.
2. Many would doubt JPM and HSBC to be really punished or for them to stop what they are doing.
3. Many have grown used to banks being able to do whatever it is they want and have little faith in regulators, justice system or politicians.
4. A criminal proceeding is what is really needed to put the frighteners into JPM.
Now if it looked like a really good case and the judge seeming to favour it then more would come out of the woodwork and then...that would affect the market.
Sorry, but what is the fuss? The fed routinely surveys the PD's on demand appetite, yield curve, rate direction etc etc. For ages now the treasury market has been a buyers market. The Fed is doing what is expected - finding out from "customers" what they want. They don't need surveys, they can just pick up the phone and ask for market demand appetite. This is routine.
Every central bank on the planet first goes to the banks to find out how much they can buy and indicative pricing/yield targets. Even "pre-ordering" is done.
Nothing is "routine" in the context of debt monetization.
FED is effectively asking from PDs, how much money they need in order to keep the stock market bubble (and other bubbles) inflated. AFAIK, that's not in FED's mandate.
Not disagreeing, but why all the hoopla now when the Fed has acted this way, like, forever. Including the first QE. old news to me. Whether the Fed has a mandate to do much of anything they do is true.
Maybe a more appropriate question would be, "why has it taken us so long to become outraged"?
Psst!..Hey you PD's, just in case yer not sure as to how to fill in a 'point blank' cheque correctly, follow the example provided below.Just don't be shy ya hear,there's no need for shame:
http://i.dailymail.co.uk/i/pix/2008/07/30/article-1039909-021E743A000005...
This is nothing new, the FED surveys dealers all the time for "market conditions, etc." this is what you do when you are the head price fixer and they have done it for years- however I do really appreciate the sensationist tone to the report - very good
So, you don't even try to hide it anymore. How long do you think someone in the oil, drug, agriculture, or computer industry would stay out of jail if they proudly pronounced themself to be the head price fixer?
...the 18 banks who "now" control America. Good one!
it makes me laugh when people refer to a free market
Now we know why the bond market's
been tanking. PD protest of QE size.
When will people wake up, we ask. No so long as both the couple work 10 hour shifts, commute two hours each way, arrive home exhausted to children who require TLC, and struggle to make ends meet. They are tired. they are stressed. In their rare free moments can we blame them for prefering to click on the mind-void-tube rather than gnash their teeth about the nameless faceless 'fed'? And that my fellow ZH-ers is what the big gov knows and wants. Keep the masses overworked; hand them opportunities for escapism and the masses can be herded.
with respect, I understand the point you are trying to make, but any couple who both work 10hrs a day with a 4hr commute might want to reconsider the "styled-life" they are committed to, and dump it for one that allows more time with their children, less time mind-voiding in front of the training box. . .
there's really no excuse for wasting lives in this manner.
Thanks for the replies. I've been doing my own research and had a vague idea but what you said is in line with what I've read.
The masses won't have that oppurtunity for much longer...
Sell the news!! Actually it makes great sense to add more liquidity to a liquid market. This man Bernanke isn't a PhD for nothing. Where's he get his degree from?
Time too nullify the Federal Reserve Act
Let's see, we need bonuses equal to about $175 billion next year, right guys. So, if we start with that and calculate backwards we need QE2 to be about......
Well at least we know who really runs the country...as if people here on ZH didn't know. Educating the couch potato is the real challenge.
So........... when do we take to the streets? I've had this pitchfork laying near the door for 2 years now!
Please allow me to introduce myself
I'm a man of wealth and taste
Ive been around for a long, long year
Stole many a mans soul and faith
And I was round when Jesus Christ
Had his moment of doubt and pain
Made damn sure that Pilate
Washed his hands and sealed his fate
Pleased to meet you
Hope you guess my name
But whats puzzling you
Is the nature of my game
I stuck around st. peters burg
When I saw it was a time for a change
Killed the czar and his ministers
Anastasia screamed in vain
I rode a tank
Held a generals rank
When the blitzkrieg raged
And the bodies stank
Pleased to meet you
Hope you guess my name, oh yeah
Ah, whats puzzling you
Is the nature of my game, oh yeah
I watched with glee
While your kings and queens
Fought for ten decades
For the gods they made
I shouted out,
Who killed the Kennedy's ?
When after all
It was you and me
Let me please introduce myself
I'm a man of wealth and taste
And I laid traps for troubadours
Who get killed before they reached Bombay
Pleased to meet you
Hope you guessed my name, oh yeah
But whats puzzling you
Is the nature of my game, oh yeah, get down, baby
Pleased to meet you
Hope you guessed my name, oh yeah
But whats confusing you
Is just the nature of my game
Just as every cop is a criminal
And all the sinners saints
As heads is tails
Just call me Lucifer
cause I'm in need of some restraint
So if you meet me
Have some courtesy
Have some sympathy, and some taste
Use all your well learned politesse
Or Ill lay your soul to waste, um yeah
Pleased to meet you
Hope you guessed my name, um yeah
But whats puzzling you
Is the nature of my game, um mean it, get down
Woo, who
Oh yeah, get on down
Thanks for posting! It's a classic song.
And I laid traps for troubadours
Who get killed before they reached Bombay
That stood out; cryptic...cool. Isn't there a stock exchange in Bombay or Mumbai or whatever its called?
argent
you HAVE to take to the street
I left my home country years ago
but for the ones who remain in the west
you have to protest now
How will you feel whe n 1984 arrives k nowing you did nothing?
especillay the ones who have kids
what future will thay have ?
ironically they are the ones least likely it seems to speak out
remember evil prevails when good men stand by and let it happen
Life during Wartime ....... It's coming folks
Heard about Houston? Heard about Detroit?
Heard about Pittsburgh, PA?
You oughta know not to stand by the window
somebody might see you up there
I got some groceries, some peanut butter
to last a couple of days
But I ain't got no speakers
ain't got no headphones
ain't got no records to play
Why stay in college? Why go to night school?
Gonna be different this time?
Can't write a letter, can't send a postcard
I can't write nothing at all
This ain't no party, this ain't no disco
this ain't no fooling around
I'd love you hold you, I'd like to kiss you
I ain't got no time for that now
http://www.youtube.com/watch?v=KsksSWOxq2Y&feature=related
What ever happened to our ability to insert an anal rectifier into these pricks and then hang em in the town square.
What say you all
At least pitch fork 'em
it is just not PC these days...
Further confirmation of FASCISM....
Just how can it be that the front running dealers are allowed to steal in mass ?
This is further confirmation that stealing is allowed by those positioned to do so....
One word....
REVOLUTION
I would like to add a small detail and want you all to see the whole picture.
The above mentioned banks OWN the FED, they are the FED. This group is also called Rothschild bankers, Rothschild family owns all these banks and they did have a control on the US , England ( they also own the bank of England) but added more banks after the world War II . Now they control all Western world, Europe, Japan, Hong Kong .
The only missing part of the world control power is China, but they will never get it..
Don't forget Putin, he's outside the net for now too.