San Fran Fed Defends QE2 By Comparing It To Gold Scramble Prevention Contraption "Operation Twist"

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Mon, 04/25/2011 - 13:58 | 1204352 FOC 1183
FOC 1183's picture

and surely 6 observations are statistically significant.  well done Eric

Mon, 04/25/2011 - 14:23 | 1204493 topcallingtroll
topcallingtroll's picture


Good one.

Mon, 04/25/2011 - 19:04 | 1205656 Frankie Carbone
Frankie Carbone's picture

Hey, it takes 2 points to draw a line, three to add curvature. ;)

You can make a lot of crazy favorable conclusions with an N=6 dataset.

Mon, 04/25/2011 - 14:05 | 1204374 Paper CRUSHer
Paper CRUSHer's picture

Yes QE3....yes QE3.....I can't stand n'more.

Hey Tyler,the first drawer on ya desk.......yeah, next to the Smith & Wesson......that jar of cyanide.....pass a few o'those capsules over here.


Mon, 04/25/2011 - 14:05 | 1204376 SheepDog-One
SheepDog-One's picture

OK so how will the FED defend QE3, by calling it 'Operation Bend Over'?

Mon, 04/25/2011 - 14:04 | 1204390 depression
depression's picture

Operation Checkmate

Mon, 04/25/2011 - 14:04 | 1204382 falak pema
falak pema's picture

twist n turn... lets twist we did last summer!

Ben probably watched his parents twist...and it marked him deep...

Mon, 04/25/2011 - 14:07 | 1204389 Internet Tough Guy
Internet Tough Guy's picture

Gold has always been funny in that way. So many people worldwide think of it as money, it tends to dry up as the price rises. ANOTHER, 1997

Mon, 04/25/2011 - 14:08 | 1204411 SheepDog-One
SheepDog-One's picture

'Priced' in what?

Mon, 04/25/2011 - 14:07 | 1204392 Atch Logan
Atch Logan's picture

Who would believe this shit?  People in power are getting desparate.  Things are falling apart.  They will attempt to take shocking measures.  Hunker down, silver bitches.

Mon, 04/25/2011 - 14:05 | 1204394 AldoHux_IV
AldoHux_IV's picture

End the fed and remove the world elitard order.

By the way, regardless of what Shit-anke and the fed do, the inevitability of justice and retribution is coming for the crimes they committed.

Mon, 04/25/2011 - 14:18 | 1204478 topcallingtroll
topcallingtroll's picture

If we had let the banks stockholders and unsecured creditors get zeroed out, and then given the banks to the senior bondholders we wouldnt be to the point where we have to rise up.

Mon, 04/25/2011 - 14:32 | 1204540 Sancho Ponzi
Sancho Ponzi's picture

This lady should work for the SF Fed:

We are, like, so totally screwed. Totally...

Mon, 04/25/2011 - 14:08 | 1204396 SheepDog-One
SheepDog-One's picture

The FED totaly did not expect the huge growing demand for gold, so now theyll have to 'reverse' that...

Hmmm sounds very ominous indeed, maybe they figure people will have to be 're-educated' perhaps?

Mon, 04/25/2011 - 14:07 | 1204402 TruthInSunshine
TruthInSunshine's picture

The Bernank says:

I am Jack's sphincter, spewing forth all manner of foul, putrid and toxin laden shit. I am Shiva, Destroyer of Worlds.

Mon, 04/25/2011 - 14:11 | 1204416 Eireann go Brach
Eireann go Brach's picture

 Just posted on CNBC! "What Might Next Round of Fed Easing Look Like"...the monkeys and dumb cunts in skirts with accents are expecting QE3...


Mon, 04/25/2011 - 14:20 | 1204492 SheepDog-One
SheepDog-One's picture

Well the DOW is down by 30 OBVIOUSLY we need more free money crack to correct that.

Mon, 04/25/2011 - 14:09 | 1204417 Quinvarius
Quinvarius's picture

I think we have been doing massive unannounced QE since 2000 and we will be doing massive unannounced QE until 2050.  The only thing the Fed did differently in 08-09-10 was to tell people about it.

Mon, 04/25/2011 - 14:27 | 1204516 A Man without Q...
A Man without Qualities's picture

And we have a winner! Look at the Fed's balance sheet, all the way up to the Lehman collapse, it was ratcheting up, then they were able to purge it all in the scramble for "safe" Dollar assets.

I had this discussion with a bunch of US bond traders prior to the first round of QE, and I said, "but they have been doing this for years, what's the big deal? " Total silence all round the table...

Mon, 04/25/2011 - 14:12 | 1204423 johny2
johny2's picture

I think Ben is going to print, print, infinity.


Mon, 04/25/2011 - 14:17 | 1204441 geminiRX
geminiRX's picture

So is the past (and possible future) ramp in stocks from Fed intervention -or- is it secondary to Armstrongs thesis of capital flow moving from the public to private sector due to non confidence in government debt? Or are both synonymous? Zerohedge and Denninger have argued that a market crash is likely, but Armstrong says this is not in the cards (at least that is what I understand of his theory)

Mon, 04/25/2011 - 14:17 | 1204472 SheepDog-One
SheepDog-One's picture

Market crashes are never pre-announced, and comments from all 'experts' the next day are baffled bewilderment at the unexpectedness of it all.

Mon, 04/25/2011 - 14:18 | 1204477 slaughterer
slaughterer's picture

What would a contemporary "operation twist" look like?  I do not think that its aim would be to stop gold migration to India and China, but to manipulate the yield curve to best suit the Federal debt overlays.

Mon, 04/25/2011 - 14:21 | 1204483 SheepDog-One
SheepDog-One's picture

Yes dont worry sheeple! More piles of FREE MONEY are just around the corner! Free whiskey! As much as you want! Yipee!!

Mon, 04/25/2011 - 14:24 | 1204513 TruthInSunshine
TruthInSunshine's picture

Marc Faber classic - "Bernanke is a liar. Bernanke only knows how to print, print, print."

(Spoken to a Bloomberg REporter, while Faber was laughing his ass off saying it.)


  Faber ~ Ben Bernanke is a Liar
Mon, 04/25/2011 - 14:25 | 1204517 disabledvet
disabledvet's picture

what we all should love about not just our government but all governments is that in the end it will always be a "cost is no object" approach.  now "we apologize for your wait" but "this is the government" and "these things always take time."

Mon, 04/25/2011 - 14:37 | 1204590 Steelpulse
Steelpulse's picture

Hi everyone,

                  Can someone please tell me the significance of the day, wednesday, April 27th? (Financial world speaking, of course!) I'm new to ZH. Thanks. 


Mon, 04/25/2011 - 14:54 | 1204677 Vagabond
Vagabond's picture

Bernanke is giving a press conference.

Mon, 04/25/2011 - 15:23 | 1204796 Steelpulse
Steelpulse's picture

@ Vagabond, Thanks!

Mon, 04/25/2011 - 19:15 | 1205685 Frankie Carbone
Frankie Carbone's picture

It's the day that The Bernack declares that inflation at *cough* 2.5% is too low and hints at QEIII.

Which happens to coincide with the day that you can buy $100 US Savings Bonds for your son's college fund for $.39 CAD.

Or Ten for a Dollar (CAD) if you wait until Friday!


Mon, 04/25/2011 - 14:46 | 1204624 jkruffin
jkruffin's picture

There was a job opening at one of the Universities here in NC, so I applied for it.  They called me today and asked me did I understand that this was a stimulus created job that only lasts for 1 year as of Feb. So here we are heading into May, and no one has taken that job, and it has 9 months left of employment on it. 

Who in their right mind is gonna take that shit? You can sit at home and get free food stamps, unemployment checks, DSS checks, and WIC instead of working for 9 months and then being jobless again.

This has to be to most ignorant administration ever known to mankind. How on earth did these idiots get into office? So are these the so-called jobs Obama claims he created? Temp jobs?  What a f**king idiot.

Mon, 04/25/2011 - 15:03 | 1204718 disabledvet
disabledvet's picture

"Johnny Neutron" created more jobs.  And I am being serious when I say that.  Even more than Hong Kong Phooey...for now.

Mon, 04/25/2011 - 14:44 | 1204626 VegasBob
VegasBob's picture

We should hook up the purveyors of such nonsense to a lie detector electric chair, and make them testify under oath.

One lie and they fry!

Mon, 04/25/2011 - 14:46 | 1204634 Milton Waddams
Milton Waddams's picture

I don't happen to think we're out of this last [financial crisis]. I think President Obama should have asked the American people to, told them they are going to have to, told them that we have to sacrifice and we had to get out of this situation we put ourselves in and I think they would have done it.  But instead we are printing money. It's easier, a lot easier. - Julian Robertson, Tiger Management

Mon, 04/25/2011 - 15:01 | 1204710 A Man without Q...
A Man without Qualities's picture

If there is an election in 2 years, what happens after that doesn't matter, and there's always an election in 2 years. The political class always choses the quick and easy solution, which always involved more debt, and this is why we are here...

Mon, 04/25/2011 - 15:30 | 1204820 SheepDog-One
SheepDog-One's picture

When theyre backed into a corner and out of answers, they claim its 'election season', and now we're ALWAYS in a perpetual election season.

Mon, 04/25/2011 - 15:34 | 1204838 A Man without Q...
A Man without Qualities's picture

But, it's tragic how dumb people are.

Obama extends Bush tax cuts and announces further payrolls holiday - his approval rating jumps. Partly as a consequence of further unaffordable stimulus (made possible through QE) oil prices shoot up, feeding through to gas prices and his approval rating declines again.

People seem pissed off when they discover there is no such thing as a free lunch, it just takes a while for them to realize....

Mon, 04/25/2011 - 14:57 | 1204680 Urban Redneck
Urban Redneck's picture

There is a comprehensive library in Marriner Eccles, I've visited and done research there.  Why would FED researchers who have superior access to that library and its treasure trove of internal history limit their methodology to combing public disclosures in the WSJ, a few scholarly articles, and an unpublished manuscript, instead of reviewing actual transaction history and market responses?  If they come out next week with a quantitative analysis of POMO- based solely on past WSJ reporting, who would believe them?       

Mon, 04/25/2011 - 15:14 | 1204763 Duuude
Duuude's picture

"...who would believe them?"


Why tha sheeple a'course.


Mon, 04/25/2011 - 15:12 | 1204755 rlouis
rlouis's picture

The authors should be embarassed by having their names attached to such a bogus, misleading paper for disingenuous propaganda purposes. Reminds me of the article a few months ago by the Fed economist who whined about how hard it is to be an economist.  Getting paid to destroy a real economy with collectivist BS - they're completely immersed in their fantasy lies...    

Mon, 04/25/2011 - 15:16 | 1204761 css1971
css1971's picture

I think the purpose of QE2 was to force the Chinese to break their USD peg.

I think Ben took advantage of the banking crisis to adjust exchange rates. If this is the case, it's fucking genius and the banks are his bitches, not the reverse.


Mon, 04/25/2011 - 15:21 | 1204785 carbonmutant
carbonmutant's picture

I think you have a point. +10

Mon, 04/25/2011 - 15:20 | 1204779 carbonmutant
carbonmutant's picture

Change you can believe in....

Mon, 04/25/2011 - 15:36 | 1204836 dcb
dcb's picture

every nightbefore I go to bed  I saya prayer forbernanke, members of the fomc, dudley, and other members ofthe federal reserve. that prayer ist hat hell existsand that they have a special place in it to suffer endlessly. I also offer a prayer that god will send a meteorite to strike the the fed. I also wishthat just like Moses and the EgyptiansGod takesthefirst born children of the federal reserve. Neverinthehistoryof the  8untiedstates has an organizatyion done suchdamage, lied so much, and the americanpeople continue to take it up the ass from these people who engage in wealth transfer.

What a story, Members of Fed defend the fed. I also know this is the way you get promoted in the fed. The new guy on the FOMC just wrote a paper on how wonderful the fed is.



Mon, 04/25/2011 - 16:06 | 1204971 Threeggg
Threeggg's picture

Benny in no way will say he is going to start a QE3 but, you can guarantee he will have a remote control button under the podium that fires up the printing press as he is saying this. There is no way out of this mess that he has made, as he will say one thing and do another.

I am betting on it !

Does anyone really believe he will actually say he is going to continue into QE3 ????????????????

That would be suicide !


Mon, 04/25/2011 - 19:29 | 1205725 css1971
css1971's picture

Does anyone really believe he will actually say he is going to continue into QE3 ????????????????

He could be forcing the  chinese to supply QE3 using already printed money, and has 2.7 trillion dollars of treasuries to sell to soak up any excess.

  • Why do you think the Chinese announced their USD holding reduction?
  • Why are there a load of senators over there?
  • Why have we been hearing that QE2 can be stopped dead? It accomplished it's purpose.

This WSJ article seems to blow the theory out of the water:

But what people say and do can be entirely different.

Is that accelerating you think?

Tue, 04/26/2011 - 03:35 | 1206863 nathan1234
nathan1234's picture

Ben(t) Bernanke, of sound mind pursuing his orders will say something which means nothing, which opportunity will be used for further manipulation till such time as realisation dawns on the traders.


Mon, 04/25/2011 - 16:59 | 1205227 slewie the pi-rat
slewie the pi-rat's picture

i don't know about the chinese, but these FED assholes sure sound like they have broken their pegs!  and, the QE wasn't even the same bullshit, anywaze.  spread the weird!

(actually, i kinda like the modigliani '66, there...)

Mon, 04/25/2011 - 17:03 | 1205246 Miles Kendig
Miles Kendig's picture

And this pile of crap is called serious policy making?

No wonder Bill O'Reilly and Barack Obama think it's all evil speculators while Low Dobbs says the administration should just order Saudi to pump more oil. 

Paulson & Bush, QE 1 + TARP

Geithner & Obama, QE lite & QE 2.

Whoever is in power in 2013 will be told they MUST to do direct asset purchases.

Clueless fucks

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