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QE2 - The Day After: Entire World Blasts Deranged Madman's Uncheckable Insanity
Yesterday's Ben Bernanke penned an Op-Ed in which he essentially said: "I am doing whatever I interpret my mandate to be, which right now means only thing: Dow 36,000. I am only accountable to the private bank that is the Federal Reserve, a few Wall Street CEOs, and no one else. Congress has no power over me. Try to stop me." And while the stock market is so far in love with this exhibition of outright hubris which promises record bonuses even as a record number of Americans subsist on foodstamps and real, not BLS, unemployment is over 20%, putting the Chairman in a long-overdue strait jacket will ultimately require an outright clash between those who still believe in that piece paper called the constitution and the kleptocratic cartel to whom the trade-off between a senior bond impairment and their first born is never all that clear. And while more and more try to educate a hypnotized, strategically defaulting US society what QE2 means to their future, the rest of the world is already rising in a tidal wave of disapproval aimed at the Federal Reserve. As the FT reports, Brazil, China, German, and Thailand, and soon everyone else, have already voiced thighest criticism and their condemnation of this escalation in FX wars.
China, Brazil and Germany on Thursday criticised the Fed’s action a day earlier, and a string of east Asian central banks said they were preparing measures to defend their economies against large capital inflows.
Guido Mantega, the Brazilian finance minister who was the first to warn of a “currency war”, said: “Everybody wants the US economy to recover, but it does no good at all to just throw dollars from a helicopter.”
Mr Mantega added: “You have to combine that with fiscal policy. You have to stimulate consumption.” Germany also expressed concern.
An adviser to the Chinese central bank called unbridled printing of dollars the biggest risk to the global economy and said China should use currency policy and capital controls to cushion itself from external shocks.
“As long as the world exercises no restraint in issuing global currencies such as the dollar – and this is not easy – then the occurrence of another crisis is inevitable, as quite a few wise Westerners lament,” Xia Bin wrote in a newspaper under the Chinese central bank.
Korn Chatikavanij, Thailand’s finance minister, said the Thai central bank had told him it was “in close talks” with regional central banks over measures “to prevent excessive speculation.”
The renewed tension is likely to complicate US efforts to get leaders of the world’s leading economies countries meeting in Seoul next week to press China to sign up to a new accord promising to limit current account balances.
Everyone now realizes that the most benign outcome of this act is the symbolic isolation of the US by the rest of the world. The outright isolation will come the second China, Germany and Russia announces they have come up with their own, commodity-backed currency.
Dan Price, partner at the law firm Sidley Austin and formerly George W. Bush’s White House representative at the G20, said: “The US may find it increasingly difficult to galvanize countries to push China on [renminbi] appreciation when many think the Fed’s quantitative easing policy is itself a major contributor to currency misalignment and imbalances.”
Neither the Federal Reserve nor the US Treasury commented on Thursday. The tension over exchange rates has created fears of a wave of protectionist trade and investment actions in response, a reaction that so far has been markedly absent from the global economy during the recession and recovery.
The World Trade Organisation, in association with other international institutions, released a regular report which said that new restrictions on trade, direct investment and capital flows had remained subdued.
At some point all Americans, no matter how engrossed with their facebook profile, will have to ask themselves: is preventing a few multibillionaires from suffering debt writedown losses a sufficient compensation for the trillions in incremental debt, for the conversion of America to the laughing stock of the world and its subsequent insolvency, and to the collapse of the standard of living of those 81% of Americans who barely have any stock market holdings, and thus benefit exactly zero from this action.
photo credit: William Banzai
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who's whining the loudest? The EXPORTERS, ALL OF WHOM REFUSE TO ACCEPT trade balance and the NATURAL strength of their own currencies!
Cry me a FUCKING RIVER. At some point, you keep "lending" to a deadbeat, it's YOUR FAULT.
The forex and debt imbalances are the result of NOT ALLOWING natural currency forces to cure them. Why? OMFG because it would have meant loss of "face" or some stupid shit for the chinks, and a smack across the jaw of kraut export arrogance, or more favela riots demanding "equality" or wtfever is the cause de jour in Brasil in between corruption, carnaval, and the holidays they have every other week.
Oh, and the EU gets to keep pretending that THEY don't have a problem, even though Deutsche Bank is loaded to the fucking gills with toxic shit...it's all over the damned world, they have blood all over them. China is a national bad loan.
The Swiss, the French, the Germans, the English, the Chinese, the Brasilians...ALL OF THEM are liars pretending they are innocent in this. The Russians are perhaps the only innocent. They went through their collapse, fought the ruble's way out of worthlessness by a temporary gold standard, and now are a resource producer with only minor warmongering.
they call it "Douche Bank" and the currency is called "the zero." we still get to call ours "the dollar." as in "here's your one dollar you big spender, you...now go by a peanut."
+1
That deadbeat everyone is lending to also has the most guns. These guns are also the biggest and baddest, evar.
Your selective, "US" versus "them" mentality is hilarious, and truly reveals your limited intellectual capabilities.
Guess that explains why you're so proud to be a deadbeat.
And these "big guns" are what keeps our money moving around the world! He who has the biggest guns, wins! No wonder China is making big guns now!
Do you really expect resourceless Germany to have any other choice but the international trade gravy train for now, lest they get some major social upheaval on?
"Treasuries, the actual target of the $600bn, endured the most mixed trading. Initially sold in disappointment that the Fed was not buying more, they began to rally as analysts digested the Fed’s plans, which will involve it buying more seven- to 10-year notes than the Treasury will actually sell. Yields on benchmark 10-year Treasuries were down 7.7 basis points at 2.49 per cent."
Zimbabwification
Still talking about QE2?!? That is so passé...bring on QE3:
http://finance.yahoo.com/news/As-Markets-Soar-Theyre-cnbc-680186283.html?x=0&sec=topStories&pos=4&asset=&ccode=
(she's long solars too...lol!)
Wall Street is gearing up for record pay in 2010. As for the average Americans we have much higher food and energy prices to look forward to, that is guaranteed.
and you can "take that to the bank" too. how about a "squatters rights event" inside all bank lobbies? "we're not leavin' till you give us....something....."
Boys, Girls, keep it quite, will ya! Just another (bad) day at the office, eh! Who cares anymore what Benjie does, thinks or tries to accomplish, we're all fucked anyways! Any of you thinking that loading up on PM's and other "good stuff" will rescue you, well my jidish heart goes out to all of you! We are long gone passed that point of NO RETURN, unless we return as cave people again! This will end in WAR, outright and with the usual consequences! Law is dead! Corruption is very much alive and it will destroy itself as history has shown us so many times! Live as large as you possibly can, it's over, pretty soon! :-)))
The emotional tension level plateau is has grown. It had been previously forecast to start on the 8th, but now shows as beginning on November 5, 2010, at approximately 2:30 PM Pacific Coast
Likely this is the last update prior to the tipping point on 11-14-2010.
http://www.halfpasthuman.com/nunums.html
Next broadcast friday Nov 5 2010 (Guy Fawkes day. Enjoy the bonfires. The next one's on us)
http://reddragonleo.com/ArgusoogRadio-20101029-TheWatermanFiles.mp3Hey, lemme know when they do their gold/silver report.
So folks, I can't find the right forum for this....
My question: can it really be this simple at this point: just hold your nose and throw your money into stocks?
Just my luck, I'd do that and then it would crash..
What could cause this market to crash in the coming 10 days? (when my VIX calls, now worth close to zero, expire)?
Anything or is just higher, higher, higher on Ben's BS?
you need to move your VIX calls further out the calendar. spring-summer '11. market won't crash in next 10 days, short of major sovereign debt crisis or war in the middle east. you're going to have be patient on this one and probably watch your November options expire worthless.
G.....L.......D.......
Don't fight the Fed seems to be working. Your move.
"a senior bond impairment and their first born is never all that clear."
"At some point all Americans, no matter how engrossed..."
Nice work...thanks...
Leo....
Don't mean to rain on your parade, but those solars have been the ABSOLUTE WORST sector to invest in this year.....
On the other hand, plenty of screamers elsewhere:
Break open the champagne for the bulls....
LOL...
Robo,
I assure you, I am doing just fine...lol!
How about the Greek debt you thought was a steal at 7 % Leo??
LVS is about to overdose on tha financial heroin. im gonna short that p.o.s.
F is so far out of the bollinger band it's in a parallel universe.
This (PSLV) seems to be doing nicely.
No gold charts today Robo?
I award you 3 attaboys.
prisoner's dilemma. when trust breaks down, everyone is worse off. the 'exit plan' is asset-stripping through waves of 'inflation' and 'deflation.' the next wave of 'deflation' will be the financial equivalent of 'shock and awe.' think about what happens when USD rallies viciously on the next global margin call, beyond any sane measure (kind of like the JPY right now). the big healthy balance sheets foreclose and consolidate power further. then, when the US deficit is entirely hyper-extended, the rubber band breaks and massive capital flight out of USD ensues. endgame: new US currency.
too much leverage = risk of ruin.
too much GOVERNMENT leverage you mean? lol. "we're all on the lam now." fugitives...from injustice. enslaved...and we havn't got off the couch yet. it's a boondoggle, a farce. a fandango in our fanta. we have litanies and liturgies. prospectii and perceptii. hard rights and all wrongs. we should not be "on the lamb" however. it's a "euphemism." sometimes i wonder in all the confusion what we have become. we SHOULD jam our car in the middle of the funeral procession and shout wildly and in celebratory "woo-hoo"ism. and then "peal out."
Totally agree. No doubt this won't end well, and probably with a new global currency. However, when the next wave of defaults start to occur, the USD will rally hard. Not saying the USD is a good investment, but you gotta know that Ben is planning to watch foreigners default first, lowering the price of PM's.
The fact that it is now public info that GS has been "long gold for years" simply tells me that an event is around the corner.
Why does the market keep stalling a pubic hair below the April high?
A) Saving that for tomorrow
Or
B) Do it on the overnight...all night long
Everyone now realizes that the most benign outcome of this act is the symbolic isolation of the US by the rest of the world. The outright isolation will come the second China, Germany and Russia announces they have come up with their own, commodity-backed currency.
Exactly. It ain't rocket science.
I've read this line of bs elsewhere. Someday the bric is going to dump the dollar. Yeah, right. Talk is cheap. Put up or shut up. BB wants them to dump the dollar but they won't do it. DUH! buzzsaw to world, put up or stfu.
Love the "Mr. Vig". lol
Hello ZH Friends,
My wife won't listen to me again so I came to be amongst people who understand.
We are watching the destruction of our country and are helpless to do anything. My 16 month old daughter will never know the good old USA. It needs to be stopped. Someone please - how?
Remember, remember, the 5th of November.
again..."his name is General David Petraeus and he has no interest in running for office." He will not make it right. He WILL MAKE IT WRONG however.
I'm starting to feel better. Can you elaborate on the 5th of November reference?
It may refer to this:
http://www.rottentomatoes.com/m/v_for_vendetta/
Watch the movie 'V for Vendetta'.
http://en.wikipedia.org/wiki/Guy_Fawkes_Night
google guy fawks.... wait here
http://en.wikipedia.org/wiki/Guy_Fawkes
Guy Fawkes day. UK holiday.
He tried to blow up Parliament in the something in the teen 100's.
Got caught, executed. Now he's a holiday.
Understand now. Thank you ZH familiy for the temporary reprieve. Now, it's back to the insanity.
Bonfires in BofA and JPM branches? Burn BB in effigy?
Why so cryptic? Who cares.. Get it on...
If your talking about getting your wife to listen, can't help there! My wife thinks I am a crackpot and the money tree out back is going to pop off some crispy new FRNs any moment so that we can go on a cruise, save for our kids college tuitions, get a new car, fix up the house, save for retirement, blah, blah, blah... </rant>
I quietly amass what I think we will need and prepare for the shitstorm.
I was quietly amassing my rations when an order arrived at my home with box markings "Freeze Dried Food - 5 year life". Boy, you should have heard her that night. I told her I would share with her and the kid but to no avail.
You ever seen the movie Logan's Run?
Turn on the TV, watch reruns of Dancing with the Stars until your eyes bleed, drink a good american beer and eat a gov't subsidised microwaved pizza. Close your eyes and hope tomorrow is abtter day. That's roughly the equivalent of what the general population is doing about it.
Oh, that's easy, just bring some PIIGS country to default, done!
The avalanche has started. It is too late for the pebbles to vote. - Kosh
Can our newly elected Congress please send over some troops to shut down the Federal Reserve for a week or so? Give them a cooling off period, take a breather, execute a few Keynesians for show, that sort of thing.
Don't worry, the Federal Reserve is a private banking cartel, so inciting violence against it is not sedition.
Or execute a few Kenyans. Oh crap, now I'm on a CIA watch list.
Wouldn't it just be easier to give the money directly to Goldman Sachs instead of dancing around the topic ?
don't give 'em any ideas.
It would be a damn sight cheaper if they did.
You said it in the first four lines. Bernanke is the most powerful man in the world right now. He has more power than all the other central banks combined. They can do what they want, but they're pissing in the wind. He's accountable to no-one, essentially. 600 bill is just the shot across the bows - he could print 5, 10, 15T if he wants to - and don't think he won't. Now the Fed is the only game in town for Obama, Bernanke will be aided and abetted in doing so. Every time stocks going down, he'll just frisbee out some more QE. End of story.
Now I'm going to the pub.
the election DOESN'T MATTER. the Fed's decision was made behind closed doors by UNELECTED OFFICIALS.
as a saver i'm being punished. as a businessman i would rather now hold tangible goods rather than dollars. any free cash i have will go towards precious metals.
I'M GETTING MADDER. DOWN WITH BLOODY BIG FED.
You have mentioned the only on-the-ground aspect of this whole mess.
Thanks for your perspective.
Notice how QE2 just rolls off the media talking heads tongues like nothing? QE is now a built in enitlement like SS and medicare.
This is true. Why just today I saw a Tea Party sign at a rally held by some geriatric geezer on Medicare that said "Get the government out of my QE2!"
I had to laugh, of course. The Fed isn't part of the government.
Mission accomplished.
If the so called informed or even expert people on CNBC refer to the Fed as a "government agency" or even "quasi" the Fed must consider it a huge win when the average Granny doesn't know what the hell's going on.
Dollar dropping like a rock and commodities are going to the moon. This is going to be quite the train wreck for the U.S. if Bernanke and the turds in DC keep it up. So much for the election ushering in sanity.
Ag over 26 and going vertical. This has gone non-linear, QE2 hasn't even started. It's hard to imagine how they can limit the dollar collapse since we cannot afford interest rate increases.
I expect Japan begins unsterilized dollar purchases with fresh yen soon.
All investing is now guessing central bank moves in the devaluation war.
Gold +46
Make that +55
Gas at the corner Wawa up .25/gallon
has gold ever risen so much in a day?
Chart: SPX
Hey, Ben.
http://99ercharts.blogspot.com/2010/11/spx_6007.html
http://www.zerohedge.com/forum/99er-charts
There's no increasing taxes with the new congress so the Fed is taking all savings an ddwebts through debasement.
Anybody with a USD in a bank account is in the same boat as the Chinese. If you have a 401K or IRA better get a self directed IRA pronto.
Silver...parabolic...must have silver.....
Congress CAN stop him by amending the Federal reserve Act. (Hello, tea party patriots? I don't hear anything from your leaders on this point).
If Congress can't stop him, technically, the liabilities would be born by the shareholders of the Fed banks.
The very simple facts.
You're assuming that the Economy can keep limping until January 2011, when the new boneheads get sworn in and start jawboning about what to do for a situation that they won't know what to describe, let alone what to do -- good luck wid dat!
I also thank ZH for turning me onto silver at $16 and my new motivation to install a large safe in my house. Made some $$$$! That never hurts.
Ummmmm. While your Silver may now sell for more because it went up in relation to FRN fiat currency, that's because the rest of your FRN fiat currency is worthless.....ops, sorry....worth less.
Well, it is worth less, but the US dollar is still a necessary commodity to buy oil. Without that, I think it would be truly worthless.
UH WTF JUST HAPPENED TO THE SPY
UH WTF JUST HAPPENED TO THE SPY
What...you mean those flash crashes below the LOD...around 119.87? Yeah, that's crazy uncle Ben transacting a cool 1 million shares per one minute tick.
You got a problem with the plutocrats ripping you off, serf?
so this is how liberty dies, to thunderous applause
We have surrendered out liberties for facebook and white Iphones.
Ummm... YES.
Yes actually, repeatedly, down through history, again and again and again...
The sheep have applauded the Great Leader, just before he took them over the edge into the abyss.
It is hard to say much good about this I see that the notayesmanseconomics blog feels that this stimulus carries within it the seeds of its own failure and will cause inflation. In particular he thinks.
"Put another way as I do not expect Ben Bernanke to change course I expect we will see the good ship QE3 sailing down the slipway over the next 6 months or so. Looking further ahead when he retires and goes on the lecture circuit many of the listeners may well be humming Elton John’s “Sorry seems to be the hardest word.” "
http://notayesmanseconomics.wordpress.com
Petro-dollars: Doesn't this whole monetization regime now make the U.S. Petro-dollar relationship even more important and war more likely with anyone trying to buck the system?
U.S. dollar dictatorship is at the core of this policy, isn't it?
Sometimes 1 + 2 + 3 = ???
1: All the countries becoming massively annoyed at the increasingly obscene and egregious monetary actions of the FederalReserve and government of the USSA.
2: Last year the supreme court released an infinitely corrupt rule that gives fictitious entities (governments, corporations, organizations) nearly unlimited "rights" to support political candidates, as well as other "rights" formerly only applicable to individual living, breathing human beings.
3: RonPaul is the only presidential candidate who clearly would put an end to the FederalReserve, and restrain government print-and-spend insanity.
One must wonder. Will the rest of the world be forced to throw the weight of their governments behind RonPaul for president in 2012, lacking any other viable way to restrain the predators-that-be in DC?
We are going to be the laughing stock of the planet once the insolvency begins in earnest. Whats even more alarming that Ben came out in an Op-ed and had to defend what he was doing. He knows this is bad, but he's doing it because he thinks that he can control deflation and inflation and not have stagflation. But the problem is that to fix on destroy the other, that is why stagflation is almost impossible to prevent. And the rest of the world sees what he is doing and are going to respon somehow before this Sunday, just watch.
What should Bernanke do? Seriously? Seppuku. Timmy can administer the coup de grace -- if it takes 3 or 4 whacks, that's OK. 8PM EST, Live.
"In an effort to shore up the economy, government minister Baron von Görtz stepped up to the challenge and became the country's central banker. He issued more copper-based currency without limit, with a face value of one daler (much greater than their intrinsic value) and which were technically inferior and easy to counterfeit. Soon these coins were so abundant that they too depreciated rapidly towards their raw metal value as belief spread that the copper coins would soon be unacceptable as a form of payment of taxes. Görtz was blamed for the failure, and was duly beheaded in March of 1719, a punishment which greatly pleased the Swedish people."
http://en.wikipedia.org/wiki/History_of_copper_currency_in_Sweden
There's gotta be blowback from this?
Is the world so docile and scared of the US? Are they not secretly wishing revenge, and maybe even planning it also?
But can they do?
IIWT, I would start selling my UST.
Fed's engame is to destroy the dollar and set us up for a World Currency. The rest of the world engaging in the 'race to the bottom' only plays into the private banker's hands. We may be less than 10 years from a unified currency. I suppose we should not lament the end of the USA since it was officially co-opted by the Fed 97 years ago and our belief in our sovereignty has only been illusory.
Great Post and Great Art to go with... as people look back at this... I think the art will show thru as much as the truth... FANTASTIC You Two!
DOW/S&P500/FTSE daily and weekly overbought charts are now at an extreme level. Similar extreme conditions were detected before the correction started in mid 2007.
http://stockmarket618.wordpress.com
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It is funny what power will do to men in Washington. Meanwhile the rest of us are at their mercy. Florida web design firms seek to stay afloat in this economy, and we watch mutely while the decision makers declare their omnipotence.