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So Was The Chairman Simply Lying?

Tyler Durden's picture


Following today's margin induced collapse in commodities we can't help but wonder if the Chairman's interpretation of crude prices as being merely an indication of the "economist's basic mantra of supply and demand" was wrong, as pretty much all statements by Fed critters, or if he was simply lying.

To wit:

Now, our --- our interpretation of the increase in gas prices is the economist's basic mantra of supply and demand. On the one hand, we have a rapidly growing global economy, emerging market economies are growing very quickly, and their demand for commodities, including oil, is very, very strong.

Indeed, essentially all of the increase in the demand for oil in the last couple years, in the last decade has come from emerging market economies. In the United States, our demand for oil, our imports have actually been going down over time.

So the demand is coming from a growing economy, where we've seen about a 25 percent increase in emerging market output in the last -­ in the last -­ since before the crisis.

And on the supply side, as everybody knows who watches television, we've seen disruptions in the Middle East and North Africa, in Libya and in other places that have constrained supply, supply has not been made up, and that, in turn, has driven gas prices up quite significantly.

Odd, so it is speculators on the way down, and natural supply and demand on the way up. Or maybe the developed world announced today it was not going to use crude any more -  a press release which we admit we must have missed.

And to follow up:

There's not much the Federal Reserve can do about gas prices, per se, at least not without derailing growth entirely, which is certainly not -­ not the right way to go. After all, the Fed can't create more oil. We don't control the growth rates of emerging market economies.

Ah yes, but the Fed can certainly make it clear to the CME to destroy "speculation" in massively cross-linked asset classes. Is that a reasonable assessment of Bernanke's words?

Of course, Bernanke did make it clear that liquidity will keep coming for an extended amount of time, should the economy not pick up, the variable that pushed gold to an all time high. Luckily, that was a week ago, and everyone has forgotten all about that now.



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Thu, 05/05/2011 - 14:48 | 1244382 carbonmutant
carbonmutant's picture

Is this a trick question?

Thu, 05/05/2011 - 14:56 | 1244421 Texas Gunslinger
Texas Gunslinger's picture

If ZeroHedge is taking the position that the Fed is lying about supply/demand, then wouldn't Zero Hedge have been lying about the role of speculators in the price run?


Thu, 05/05/2011 - 14:58 | 1244432 Hugh G Rection
Hugh G Rection's picture

Thats the problem with trolling Dungslinger, too often you let the mask slip and show your true colors.

Thu, 05/05/2011 - 15:17 | 1244475 Texas Gunslinger
Texas Gunslinger's picture



Thu, 05/05/2011 - 15:18 | 1244529 lieutenantjohnchard
lieutenantjohnchard's picture

most people here already understand the plot. the usa government is bankrupt. the fed is the buyer of only resort vis-a-vis treasuries. and much of what one sees and hears from the fed and treasury is an orchestrated phalanx of lies and deception to make people who think and know otherwise that all is well.

Thu, 05/05/2011 - 15:34 | 1244629 bigdumbnugly
bigdumbnugly's picture

was he lying?

his lips were moving weren't they?

Thu, 05/05/2011 - 16:05 | 1244844 DaveyJones
DaveyJones's picture

He wasn't simply lying. All his lies are complex

Thu, 05/05/2011 - 16:21 | 1244940 malek
malek's picture


Thu, 05/05/2011 - 20:43 | 1245960 Fish Gone Bad
Fish Gone Bad's picture

It is an art to be able to speak out of ones mouth and ass at the same time.  This is a prerequisite for politicians of all flavors.

Thu, 05/05/2011 - 17:44 | 1245322 JW n FL
JW n FL's picture
Republican-controlled committee voted for a 18-month delay of regulations intended to reduce risk in OTC derivatives.
Thu, 05/05/2011 - 15:12 | 1244500 lieutenantjohnchard
lieutenantjohnchard's picture

do you think he's one of those guys paid to troll zh posting comments to sway the marginal reader? he's written some utterly ridiculous comments. my personal favorite was the one where he told us to think like a ceo - that's chief executive officer for the uninformed he told us.

Thu, 05/05/2011 - 20:37 | 1245955 Fish Gone Bad
Fish Gone Bad's picture

That is indeed pretty funny.  Maybe he has a day job translating Mexican salsa signs ("fuego" means "fire" in spanish) as well.

Thu, 05/05/2011 - 15:04 | 1244462 lieutenantjohnchard
lieutenantjohnchard's picture

zh is a website posting articles and opinions on the financial issues of the day. ben bernanke is the federal reserve chairman of the reserve currency of the world. there's a difference in their mandates. ben bernanke doesn't want to be held accountable for his printing actions.

and of course speculators moved the price of crude up. bernanke all but begged them to speculate through zirp, inflation expectations and money printing.

Thu, 05/05/2011 - 15:08 | 1244474 hambone
hambone's picture

Matters not - just look at the REIT's sitting at 2.5 yr highs...ahhhh, safe and sound there...nothing bad could ever happen to the REIT's.

And then there's the Russell 2000- up on the day. and sound.

Thu, 05/05/2011 - 15:12 | 1244509 lieutenantjohnchard
lieutenantjohnchard's picture

survivor bias in some of the reit's in the total return. but i get your point.

Thu, 05/05/2011 - 15:06 | 1244477 carbonmutant
carbonmutant's picture

You need to take the gun out of the holster before you pull the trigger...

Thu, 05/05/2011 - 15:17 | 1244538 lieutenantjohnchard
lieutenantjohnchard's picture

lol. good one.

Thu, 05/05/2011 - 14:58 | 1244442 Arrowflinger
Arrowflinger's picture

The trick question is whether this buying opportunity will be as transitory as Bearnanny's credibility.

Thu, 05/05/2011 - 15:36 | 1244642 max2205
max2205's picture


Thu, 05/05/2011 - 14:51 | 1244384 FOC 1183
FOC 1183's picture


Thu, 05/05/2011 - 14:49 | 1244390 Gubbmint Cheese
Gubbmint Cheese's picture

Lying? Ben Bernanke?? No. I absolutely believe him. I absolutely believe that the Fed Chairman could not possibly know there was a housing bubble in the making.. or that QE doesn't cause inflation.. or......


Thu, 05/05/2011 - 15:23 | 1244544 Re-Discovery
Re-Discovery's picture

"Was he lying?" Hmmm...  That's a tough one, let me consult my algo.

My algo has a two prong decsision tree on that:

Question 1  - Was his mouth shut, if "yes", then "no"; if no then Question 2

Question 2 - Did he say anything, if "yes" then "yes"

Algo will trade on the decision that Bernanke was, in fact, lying.





Thu, 05/05/2011 - 14:52 | 1244394 mogul rider
mogul rider's picture

Yup squeezing dickheads who went 100:1 leverage on commodities is a bad thing.


I mean c'mon why lower the risk any.

Thu, 05/05/2011 - 15:17 | 1244534 Dont Taze Me Bro
Dont Taze Me Bro's picture

Yeah thats true, leverage is a double edge sword for sure, but having a lot of trading desks blowing up is not a good thing either.


Thu, 05/05/2011 - 15:31 | 1244615 Urban Redneck
Urban Redneck's picture

If there is an explosion on the trading room floor all leverage is automatically off loaded to the FED balance sheet per revised business (profit & bonus) continuity plan.

Thu, 05/05/2011 - 15:40 | 1244651 Dont Taze Me Bro
Dont Taze Me Bro's picture

Sad but true. The only sucker left holding the bag at the end of the day is the US tax payer.


Thu, 05/05/2011 - 14:50 | 1244397 tekhneek
tekhneek's picture

Transitorial truth I believe it's called.

Thu, 05/05/2011 - 14:59 | 1244450 CPL
CPL's picture

Until next week when a new truth shall be revealed to all.

Thu, 05/05/2011 - 14:51 | 1244410 Gubbmint Cheese
Gubbmint Cheese's picture

if only they increased the margins on oil to protect investors from getting carried away.....



Thu, 05/05/2011 - 16:37 | 1245056 Note to self
Note to self's picture

That's funny!

Thu, 05/05/2011 - 14:56 | 1244411 Popo
Popo's picture

This is the problem with parsing economic trends from granular price movements.   ZH / Tyler is as guilty as anyone else on this issue.   If it's not oil, it's silver, gold, treasuries or equities...

When silver soars, it's inflation of course.   But what about when silver plunges?  Is that deflation?  disinflation?  Or no wait ... it's a "take down".  Yeah that's it.  Rises are due to inflation, and drops are (of course) "manipulation".  

Sigh. The old saw never changes.   But it always cuts poorly.

Any market with sufficient volatility provides infinite ammunition for all opposing theses.

Thu, 05/05/2011 - 15:07 | 1244467 Construct
Construct's picture

Well 'they' did hike margin five times in one week in Silver. And given how equities are doing nothing to the down side while PM go down almost 30% then yeah that does scream 'manipulation'.

Thu, 05/05/2011 - 15:17 | 1244522 EscapeKey
EscapeKey's picture

Nooo, there's nothing suspicious about an equities markets staying static, while commodities are collapsing, in an environment where the central bank rigs the bond markets.

No manipulation whatsoever, those who think so are clearly conspiracy theorists.

Thu, 05/05/2011 - 16:24 | 1244968 DUNTHAT
DUNTHAT's picture

And with the Dollar launching !!!

Thu, 05/05/2011 - 15:10 | 1244484 txapela
txapela's picture

It took silver 9 years to go from $5 to $50. That might be inflation.


then again..


It took silver 3 days to go from $50 to $35.


That is, conveniently, deflation.


Right. Right. Moving along now.

Thu, 05/05/2011 - 17:15 | 1245232 Popo
Popo's picture

Rather convenient manipulation of the X axis don't you think, my friend?

How'd silver do in the last 6 months?  Was that all inflation? 


Thu, 05/05/2011 - 15:11 | 1244492 benburnyanki
benburnyanki's picture

look ninkumpoopo if you try and daytrade comodities, it will surely bite you in dee a**.

However if you just ring big T and ask to buy the metals for ya, he will lock you in a good price based on current bid/ask. No don't be a don't bee and sell it in a week or you being beside da point. Buy metal and sit on um it kimosabe.

Oh I see Popo, you wouldn't be postin from the Jacuzzi over at the Rothschild's mansion with the 12 year old naked girls tied up in it monseur?

No mo day tradin and then winin', jesus you worse than a troll almost.


Thu, 05/05/2011 - 15:20 | 1244556 Dr. Porkchop
Dr. Porkchop's picture

I'd take advice from a pirate on PMs anyday over the paper pushers.

Thu, 05/05/2011 - 17:28 | 1245236 Popo
Popo's picture

> "Oh I see Popo, you wouldn't be postin from the Jacuzzi over at the Rothschild's mansion with the 12 year old naked girls tied up in it monseur?"

Yes.  Yes, that's exactly me.  Hello from the underage sex-party.   Could you send over some more Grey Poupon?

I love how all opposing non-mainstream theses are instantly labeled as "mainstream".  

If you're not a goldbug, you're a Rothschild, eh?   Lulz sonny.   Pull up a graph of M2 lately?     

Something's going to bite you in the ass.  It's not a dog, but does begin with a 'D'.





Thu, 05/05/2011 - 15:15 | 1244508 Whalley World
Whalley World's picture



Look at the Silver chart and tell me this was a bunch of day traders deciding to hit sell at the same time.  The rat is trapped and is fighting back hard.  The fundo's for Silver have never  been better, just check out Harvey Organ's blog. to check OI

Maybe I will sell my vault full of silver and exchange it for green toilet paper, or wait maybe not!

Thu, 05/05/2011 - 15:16 | 1244531 EscapeKey
EscapeKey's picture

yeah i applaud the raids. a bit further down, and i start buying more physical.

Thu, 05/05/2011 - 15:17 | 1244539 Construct
Construct's picture

At the end of the day who cares? If you go long Silver here without any leverage it matters not what their number for pushing down Silver to is. They wont be able to shake you out if you have paper silver without leverage or physical silver.

Thu, 05/05/2011 - 15:24 | 1244583 Smiddywesson
Smiddywesson's picture

Until this little display comes to an end, short paper gold, long physical gold.  Divert profits into more physical gold.  Sleep well at night.

Thu, 05/05/2011 - 15:35 | 1244580 benburnyanki
benburnyanki's picture

I know some trolls out there are lurkin' but not sure about Popo.

I know you sheep head fucker Rothschilds just dumped about 1/100000th of a % of your gold and silver on the markets to make sheep shit hit the wall to scare the bejesus out of them so they start using fake Fiat dollars again and run from PM's)

In foot ball USA way they call this play a 'hail mary' since the JPM front for the Rothschilds owns too many puts on silver and gold for decades to keep price of PM low artificially. Therefore the R's been selling huge boatloads of Silver and Gold to trick everyone else to sell and then they can unwind their short pos. and go home and u know what 12 year olds stress free again.

Thu, 05/05/2011 - 17:26 | 1245263 Popo
Popo's picture

You've got me nailed, pirate boy.  I am Baron de Rothschild.   I love Zero Hedge because it's such a wonderful example of conformity of thought.    It gives me hope for another empire one day.

Now... back to counting my billions.   And you pirate boy, must get back making french fries.  Break time is over. 

Thu, 05/05/2011 - 14:52 | 1244413 NOTW777
NOTW777's picture

we're not monetizing debt, right?  that was true, right?

Thu, 05/05/2011 - 14:52 | 1244415 apberusdisvet
apberusdisvet's picture

Well they can slam the PMs, so why not oil?  They really are the Masters of the Universe.  Can they do something about my property taxes?

Thu, 05/05/2011 - 14:55 | 1244424 Alcoholic Nativ...
Alcoholic Native American's picture

Yea, raise them, they are not sure if local governments are too big to fail yet. They will try to squeeze the last juice out of the plebes that fell for the "ownership society".

Thu, 05/05/2011 - 14:57 | 1244425 Hugh G Rection
Hugh G Rection's picture

Long Live Chairman MaoNanke!


You are insolent swine for questioning our supreme monetary wizard chief!

Thu, 05/05/2011 - 14:58 | 1244431 uhb
uhb's picture


Buying PMs is an insurance. Thou shall not buy insurance on leverage: thou shall buy your insurance physically so that you shall sleep well.


Thu, 05/05/2011 - 14:58 | 1244445 fuu
fuu's picture

That's a fact jack!

Thu, 05/05/2011 - 15:43 | 1244667 Smiddywesson
Smiddywesson's picture

Buy physical, hedge with paper, buy more physical.   Don't sit in a losing position and comfort yourself with the knowledge that you will be right in the end.  The market eats armchair economists

Thu, 05/05/2011 - 14:58 | 1244434 NOTW777
NOTW777's picture

alert: this just in erin burnett is worried about pay for us navy seals.

when does obama put on the uniform?

Thu, 05/05/2011 - 15:04 | 1244461 Alcoholic Nativ...
Alcoholic Native American's picture

You are a navy seal?  That explains a lot.  You do seem to have the mental agility of a jarhead.  Civilian control of the military. Always.

Thu, 05/05/2011 - 14:59 | 1244437 gall batter
gall batter's picture

he seems sincere.  reminds me of Pat Boone. 

Thu, 05/05/2011 - 15:00 | 1244440 scratch_and_sniff
scratch_and_sniff's picture

Tyler where are the bears? Its at times like these that i need to take some comforting investment advice from talking cartoon bears...

In years to come there will be some junior analyst researching the mania of bubbles and he might conclude "the silver bubble of 2011 was of great note, it seems that investors were listening to talking bears when the bubble was popping, this confirms my assumtions that humans then, were complete fucking morons".



Thu, 05/05/2011 - 15:14 | 1244523 SuperRay
SuperRay's picture

The story's not over, moron.  this is just the rigged paper market, or don't you know the difference?  

Thu, 05/05/2011 - 15:23 | 1244575 scratch_and_sniff
scratch_and_sniff's picture

Sure, everythings' a con these days..i suppose the paper oil, gold, copper, etc markets are all rigged aswell. Gentle ribbing my friend, makes no difference to me. The only thing i took from this was confirmation that ALL parabolic moves come to an end. This time WAS NOT different.

Thu, 05/05/2011 - 15:46 | 1244690 Whalley World
Whalley World's picture

Great thought, let's ignore 5,000 years of money being physical gold and silver.  Lets sell that track record and jump into digital money, whopee, it's like I am starring in the Matrix.  Jim Sinclair said it years ago, get ready for swings in Gold of $100 per day, who knows, in time maybe Silver too.

Thu, 05/05/2011 - 16:01 | 1244814 scratch_and_sniff
scratch_and_sniff's picture

ok, suit yourself.

Thu, 05/05/2011 - 14:58 | 1244446 mynhair
mynhair's picture

Don't you have to know what you're talking about before you can lie?

Thu, 05/05/2011 - 14:59 | 1244449 earnulf
earnulf's picture

So based on the Bernak, prices are solely dictated by supply and demand, and if the supply isn't increasing and the demand is, that is why prices are going up.

Did we miss the massive 10% drop in demand for oil today?

Or worse, did we miss the even more massive 25% drop in demand for silver?

Nope, no new revolutions, nope, no Saudi government on the ropes, Nope, no new pirate attacks on tankers, nope, no nationalizations of mines, nope, no new mine disasters.   Darn it, it must be a drop in demand, it just has to be!

Thu, 05/05/2011 - 15:23 | 1244497 Hushups
Hushups's picture

Easy answer. The silver bubble popped so apparently we all stopped buying silver today, so all of us stopped driving that extra 10% to get our daily purchase of physical. And this of course happened world wide. Today. Because we silver bugs are just confused sheep and it takes a little longer to herd us in the right direction.


Did I get that right?

Thu, 05/05/2011 - 17:35 | 1245284 Overflow-admin
Overflow-admin's picture

Mmmmm, sure some speculators and some figures of autority were involved too...

Thu, 05/05/2011 - 15:04 | 1244471 Cassandra Syndrome
Cassandra Syndrome's picture

Tomorrow, Flash crash anniversary and its a Friday to boot.

All is not well at Skynet.

Thu, 05/05/2011 - 15:08 | 1244490 6 String
6 String's picture

Ah...i doubt it. It might be a flash up in the most stable asset known to mankind: the Russell 2000. BTFD.

Thu, 05/05/2011 - 15:14 | 1244510 6 String
6 String's picture

Wait....holy shit! The Russell 2000 is down almost .50% right now. Fuck. Goddammit. Ben? Do you hear me? Ben...? Ben.......?


Thu, 05/05/2011 - 15:16 | 1244533 6 String
6 String's picture

Now that's better, Ben. Shit. I was nervous for a moment there as the Russell 2000 dipped. Should trend green end of day. Thank god!

Thu, 05/05/2011 - 15:23 | 1244571 Alex Kintner
Alex Kintner's picture

Ben can't hear sh1+ down in the basement while the presses are running. I'm surprized he took time out today to lie to the press.

Thu, 05/05/2011 - 15:07 | 1244472 DonnieD
DonnieD's picture

Without removing financial speculators from oil markets we will never know the true "supply-demand" price of oil.

Thu, 05/05/2011 - 15:10 | 1244483 MiningJunkie
MiningJunkie's picture

Silver was $26.00 in January - last week Market Vane hit 96% bullish concensus. 200-day m.a. is around $32.60. Might start picking away there...

Thu, 05/05/2011 - 15:23 | 1244561 French Frog
French Frog's picture

Given the volatility, i expect 200 ma to be breached at least intraday; i like starting to build longs from 31.25/32.20 (support trendline from 17.74 to 26.36 is now at 31.60 - previous resistance line from 15.21(2006) & 21.31 (2008) also comes in around 31.60 - Monthly S2 at 32.19 - previous top at 31.25 (2010)).

Not sure how to post a chart in here or i would do it for a clearer technical picture

Thu, 05/05/2011 - 15:12 | 1244496 Missiondweller
Missiondweller's picture

On APMEX, Silver EAgles sell for $7 over spot. Amazing.

The Silberbear has it right, one price for paper silver and another for physical.

Thu, 05/05/2011 - 15:15 | 1244514 1100-TACTICAL-12
1100-TACTICAL-12's picture

I saw a Peter Schiff video were he said $100 swings in gold will be the norm.  Silver @ $25 I'm buyin all I can...

Thu, 05/05/2011 - 15:15 | 1244515 Cassandra Syndrome
Cassandra Syndrome's picture

The Dow is starting to tank.

its like a murder, mystery novel. Butler bernank bitchez!

Thu, 05/05/2011 - 15:15 | 1244516 I Am The Unknow...
I Am The Unknown Comic's picture

Can any of the smarter people here help me understand the implications of the following:  according to Google stats, there are only alledgedly 368.7 million shares of SLV outstanding, yet by the end of the day we will have easily seen over 300 million shares traded.  I'm just struggling with how this makes sense in the real world, and I know I'm awake and not having a nightmare.  Are the HFTs playing catch with each other in 10 MM lots?  I mean seriously, WTF?

Thu, 05/05/2011 - 15:44 | 1244671 Urban Redneck
Urban Redneck's picture

There actually is a law against that, but since the SEC IT department is incapable of such basic technological wonders as blocking full-time porn surfing by SEC employees, on SEC computers, connected to the SEC network, dissecting lines of someone else's computer code and understanding what it actually does is several decades away at best.  

Thu, 05/05/2011 - 18:23 | 1245436 alexanderstollznow
alexanderstollznow's picture

if you look through volume and OI figures for futures contracts you will find it not at all uncommon for the daily volume to even exceed the OI in busy conditions.  eg Jun Tnotes today have had a trading volume about 80% of the current OI.  and they werent particularly busy.

it doesnt mean anything sinister. i just means there are a lot of day traders, possibly augmented by large new positions or liquidation.  do you think there might have been a lot of open position liquidation today in the silver?

Thu, 05/05/2011 - 20:42 | 1245958 Urban Redneck
Urban Redneck's picture

good point, but the crime is the tree falling in the woods, not whether it made noise doing so, if the net effect of HFT software code is that shares are being passed back and forth and profits are being made in the process, and bankers are forced to plead ignorance before unsympathetic juries, then any half-decent government lawyer, what am I thinking - look at their IT department. 

Thu, 05/05/2011 - 15:16 | 1244520 HamyWanger
HamyWanger's picture

Silver, bitchez!!!

Now down 30% in 7 days and 12% today. 

Thu, 05/05/2011 - 15:21 | 1244563 Dr. Porkchop
Dr. Porkchop's picture

If iPods were on sale 30% you'd cream your jeans. Buy buy buy!!!

Thu, 05/05/2011 - 15:39 | 1244570 I Am The Unknow...
I Am The Unknown Comic's picture

At what price are you going to execute your puts?  oh,'s Hamy not Harry

Thu, 05/05/2011 - 15:17 | 1244526 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

The world runs relatively normally until the U.S. fascist markets open.

Seriously, the world would be a hell of lot better without the U.S. Makes me sick waking up every morning knowing the U.S. exists in the world to be honest.

Please implode soon.

Thu, 05/05/2011 - 15:45 | 1244698 Smiddywesson
Smiddywesson's picture

On a long enough timeline, everythings survival rate drops to zero.

Thu, 05/05/2011 - 15:19 | 1244551 fiftybagger
fiftybagger's picture

Added some Kiwis this AM.  A nibble.  If we see more lows tomorrow I may get more.  Just keep stacking!


Silver For The People

Thu, 05/05/2011 - 15:22 | 1244557 AldoHux_IV
AldoHux_IV's picture

It's so sad when we have to rely upon a moronic fuck hell bent on social class genocide to manipulate prices to induce a sense of reality that is nothing but an illusion-- but having the most negative effects upon the real economy.

Obama and his SS were targeting not speculators but the smaller players who provide the liquidity and balance to the bigger players who continue to move the markets in a deconstructive way.

This is what our economy has gotten to-- moving market prices around to further the validity of a broken system all the while breaking the backs of the middle and lower classes and the poor and enslaving their children to years and years of indentured servitude.

Thu, 05/05/2011 - 15:24 | 1244564 wirtschaftswunder
wirtschaftswunder's picture

Gold is down $48 WTF?

Thu, 05/05/2011 - 16:11 | 1244877 Bastiat
Bastiat's picture

Yeah, nobody wants the stuff anymore. China just found out you can't eat it and has stopped buying. 

Thu, 05/05/2011 - 15:25 | 1244568 dugorama
dugorama's picture

zls bitchez!

Thu, 05/05/2011 - 15:37 | 1244633 Luther
Luther's picture

His lies are transitory.

Thu, 05/05/2011 - 17:08 | 1245185 sbenard
sbenard's picture

I could only wish they were! LOL!

Thanks for the belly roll!

Thu, 05/05/2011 - 15:48 | 1244708 sbenard
sbenard's picture

He was lying. Period!

Thu, 05/05/2011 - 15:58 | 1244768 MarketFox
MarketFox's picture have to talk baby talk order to be understood....


Before many of the derivative based and all other commodity Wall Street products were put into production....there used to be the simple product called oil for cash....

If one were to simply examine the sole value of the commodity would be less than 10%  of all the paper oil related products....


Let´s do the math...


What would the price of oil be without  the non cash paper Wall Street Big Bank products....


Perhaps less than 10% of what it is today....


Think not....


And by the way....remember that little item regarding position limits via GS Gensler...that was put off and no longer discussed in the news....


Yeah....I thought so....




Thu, 05/05/2011 - 16:28 | 1245004 madmax1965
madmax1965's picture

That is exactly his job.  FED=private company.  He is beholden to the stockholders.  They could give a rats ass about US!  END THE FED!

Thu, 05/05/2011 - 17:41 | 1245305 alangreedspank
alangreedspank's picture



Thu, 05/05/2011 - 17:57 | 1245350 alexanderstollznow
alexanderstollznow's picture

interesting private company, which turns all its earnings over to Treasury, and has its management appointed by the President and ratified by Congress, eh!

Thu, 05/05/2011 - 17:38 | 1245302 alangreedspank
alangreedspank's picture


I think he knows if he hiked rates oil would come down quite a bit. But to him, that would "destroy" the economy. It would certainly blow the bubble economics we have now.



Thu, 05/05/2011 - 17:45 | 1245325 alexanderstollznow
alexanderstollznow's picture

*BB is speaking about longer term factors that 1 day of trading

*contrary to the beliefs of some, the Fed does not issue directives to the CME.  it is the CFTC which handles that.

Thu, 05/05/2011 - 17:47 | 1245331 newbee
newbee's picture

Is BB lying? ...depends on what is is ...

Thu, 05/05/2011 - 18:25 | 1245344 alexanderstollznow
alexanderstollznow's picture



man, dont you hate that?


haha, no comment from anyone.  what a surprise!

Fri, 05/06/2011 - 06:54 | 1246675 benburnyanki
benburnyanki's picture

see my general comment about the 'hail mary' pass the JPM Rothschild puppets just pulled off selling phys PM and crashing markets Monday to knock down the runnaway schooner full of their gold/sil puts they been keeping PM markets down with for decades matey.

You work at Goldman? Shit you must be making 1000 quid per keystroke for todays work writing all that post just now? Hell I make 1000 french fries per dollar pay over at big Mac's so yu makin' book baby!!!!

Thu, 05/05/2011 - 21:35 | 1246100 rlouis
rlouis's picture

Everyone speaking for the govenment is lying.  They may even be so lost in their delusions that they aren't even aware that they're out of their minds. 

I imagined it was like this in the USSR in the last decade of its existence.  

Fri, 05/06/2011 - 09:41 | 1247094 benburnyanki
benburnyanki's picture

this is best i read yet.

dang the illusions they have in their own minds eh?

I used to have that too. Its a disease of the mind.

But the CIA/CNN media is designed to super sheep brain fuck us and they even give us coke so our brain is numb so we don't feel the dick movin' round inside it!!!!

what we need is B7 to do a series of Fed dudes boincin' sheep with horn side down.

Como se dice? 'Cattle Call' although the Commie Fedsky is still branded F&C in me video memory capable brain as the fookin 3CP Green$cam FokoCosmoNaut is floatin around like Dave after he jetisined orbitin' Jupiter in 2001 A Space Odessey.

Hal? Hal? Hal? Hal? Hal? Hal? Hal? Hal? Hal?






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