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Watch Ben Bernanke's Testimony To Congress Live, "Prepared To Respond If Stimulus Needed"

Tyler Durden's picture




 

Watch live the first of two official monetary policy testimonies by Ben Bernanke, today being before Congress, and thus Ron Paul, tomorrow before the Senate. Among the critical items to be discussed are the role of fiscal policy, whether there will be QE3, and how (and when) the Fed will proceed with future rate hikes. Mostly, it is expected be a whole lot of hot air. Full text of the report can be read here. The reason everything is surging is because, as predicted, the Chairsatan appears to have just ushered in QE3: "The possibility remains that the recent economic weakness may prove more persistent than expected and that deflationary risks might reemerge, implying a need for additional policy support. The Federal Reserve remains prepared to respond should economic developments indicate that an adjustment of monetary policy would be appropriate."

Key speech highlights:

  • Fed's Bernanke says economy could evolve in a way that would warrant move to less accommodative policy
  • Fed's Bernanke says given uncertainties about recovery and inflation, Fed remains prepared to adjust stance of policy if appropriate
  • Fed's Bernanke says possibility remains that weakness more persistent than expected, deflation risks may return implying need.
  • Fed's Bernanke says most recent data attest to continuing weakness of labour market, unemployment rate to decline only gradually
  • Fed's Bernanke says recent weaker-than-expected economic performance appears to be the result of temporary factors
  • Fed says debt ceiling debate hasn't affected Treasury prices yet
  • Fed's Bernanke says inflation has picked up so far this year, but more of recent rise appears likely to be transitory

 

For those curious, Citi's Steven Englaprovides a backdrop for how FX (which is where the vol and the leverage is, and thus is far more important than stocks) may interpret the testimony:

The Bernanke testimony baseline:

  1. Growth is sluggish, for reasons that can not be attributer to special factors -- that was the FX market takeaway from yesterday's Minutes
  2. QE3 not on the radar screen now
  3. Hikes not on the radar screen now

As we saw yesterday, small and possibly unintended deviations, from expectations of Fed policy can have visible currency effects.

We note in particular that our economists expect Bernanke to indicate a 'somewhat stronger' H2 outlook and unusual uncertainty. Yesterday FX investors saw persistent bearishness on the growth outlook in the Minutes. If Bernanke emphasizes that the Fed still sees growth as bouncing back, even tentatively, some of this pessimism may be unwound. Given that the market does not price fed funds at 50bps until the beginning of 2013, even modest optimism or hawkishness on inflation could trigger some backing up of rates and by implication currency knock-on effect.
The USD downside is if the Fed Chairman 'buys into' the weak payroll data and opens the door to QE3, as the best stimulus option out of a set of bad choices. Given the history of QE2, the initial reaction would be equities positive and USD negative.  If he were to open up this door, the major beneficiaries by far would be commodity currencies, AUD, CAD, NOK, and related EM currencies (with possible spillovers into commodity prices themselves).. Given the QE2 experience investors will anticipate more of an impact of nominal asset prices than on real GDP, so the more sensitive the asset is to liquidity, the better it is likely to do.

 

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Wed, 07/13/2011 - 10:00 | 1451391 TaxSlave
TaxSlave's picture
Watch Ben Bernanke's Testimony To Congress Live

No.

 

Wed, 07/13/2011 - 10:09 | 1451415 French Frog
French Frog's picture

by the sound of it, there must have been a hint of more easing in his prepared speech looking how stocks and €/$ have just gone up 

 

edit: apologies...if i'd look up rather than giving up on the video feed i'd have realised that this was already stated by ZH

Wed, 07/13/2011 - 10:27 | 1451504 TheTmfreak
TheTmfreak's picture

So now Bernanke is saying "Temporary" instead of Transitory. Nice. I like to know how prices will "come down" when the dollar is intentionally kept low, meaning the cost of gasoline (regardless of other factors) could possibly come down? Hum....

 

Edit: Well I was wrong. There goes the transitory nonsense again.

Wed, 07/13/2011 - 10:47 | 1451623 gmrpeabody
gmrpeabody's picture

Watching Barney Frank makes me want to give my breakfast back.

Wed, 07/13/2011 - 10:51 | 1451647 TheTmfreak
TheTmfreak's picture

Just wrote basically the same thing. While I'm not going to disagree with 100% every thing he says. The classic "even a blind squirrel gets a nut" applies in this situation.

Wed, 07/13/2011 - 10:57 | 1451712 TheTmfreak
TheTmfreak's picture

IS BIG BEN CRYING? Wow. haha. He is quivering for real. Clearly Ron Paul has broken his monotone coooool roboticism.

Wed, 07/13/2011 - 11:00 | 1451751 RockyRacoon
RockyRacoon's picture

Dr. Paul gets the truth out of Bernanke:   "Is gold money?" -- Bernanke says, "No."   Dr. Paul:  "Why do banks hold gold?"   Bernanke:  "It's an asset."   Dr. Paul:  "Why don't they hold diamonds?"   Bernanke:  "It's tradition."

There ya have it in a nutshell.   Ben got bent over the barrel.

Wed, 07/13/2011 - 11:04 | 1451782 TheTmfreak
TheTmfreak's picture

I was definitely blown away during that part. Glad I was watching just for that.

Wed, 07/13/2011 - 11:18 | 1451884 El Oregonian
El Oregonian's picture

Bullets are an asset...

Wed, 07/13/2011 - 11:24 | 1451913 TheTmfreak
TheTmfreak's picture

So apparently is Linkedin and Angry Birds stock. Bernanke's words are probably an asset as well.

Wed, 07/13/2011 - 12:07 | 1452249 eureka
eureka's picture

All for love of US empire, which will die without such assets.

Wed, 07/13/2011 - 12:08 | 1452256 TheTmfreak
TheTmfreak's picture

QE3 ON THE TABLE>>> ITS ON THE TABLE.

Wed, 07/13/2011 - 12:32 | 1452404 fallout11
fallout11's picture

ITZ COMING!  

Gents, you just know QE# will be here any day now. No other path left but to inflate to the moon. USD = the new reichmark

Wed, 07/13/2011 - 13:48 | 1452739 eureka
eureka's picture

Zieg Heil NAZImerikan Federation MUST RULE - PRINT PRINT PRINT.

Wed, 07/13/2011 - 11:30 | 1451953 dark pools of soros
dark pools of soros's picture

why hold pennies(bullets) when they get to hold gold(nukes)?

Wed, 07/13/2011 - 12:20 | 1452334 arby63
arby63's picture

Guaranteed eventually worth more than any other "asset" on the planet. Time will prove this absolutely correct; and the clock is ticking.

Wed, 07/13/2011 - 10:49 | 1451633 TheTmfreak
TheTmfreak's picture

I know I'm being redundant but Barney Frank is a completely and total moron. He keeps saying "reducing the debt." Nobody, not even Rand Paul (but he states this) is talking about reducing debt, rather deficit. Funny how some on the House Financial Services Committee cannot distinguish the difference.

Ok so "deal with the deficit later." I want somebody just one person to talk about interest on the debt increasing. If Ron Paul would ask this question and put somebody the spot to answer it, it would make my day. I'm not going to expect any answer to debt interest.

Wed, 07/13/2011 - 11:14 | 1451860 Max Hunter
Max Hunter's picture

Not only is our Congress dumb as a box of rocks (most of them) they are also for sale to the highest bidder.. Pretty bad combination.. This will not end well..

I agree Barny is very difficult to listen too and even harder to watch at the same time..

Wed, 07/13/2011 - 10:53 | 1451661 Don Birnam
Don Birnam's picture

I assumed Bernanke must be speaking ex cathedra somewhere in D.C. :

As this is written, silver is riding the Orion booster to $ 38.07.

Wed, 07/13/2011 - 10:57 | 1451674 SWCroaker
SWCroaker's picture

I had always thought that the word transitory meant "in a state of transition", where the word temporary meant more "at a current state only for a bit of time".   The two aren't quite the same, and technically neither word hints at the nature of the following state.  You could conceivably "transition" from low, to higher, to higher still, and still describe that movement as "transitory".  Each level held on the climb could in turn just be at that level "temporarily". 

See, the Chairsatan has been speaking the truth all along.  Up to now, he's been saying that inflation, in his view, "is in a state of transition".  Now things have reached a cusp of serious movement, and it is more accurate to claim that inflaiton levels are "probably about to change from their current state".

Not his fault if the media/world has atrophied language skills and can't read the subtle nuances in his word choices...

Wed, 07/13/2011 - 11:03 | 1451770 TheTmfreak
TheTmfreak's picture

So you're assuming that when he uses the word transitory that he means it to the specific definition of what you say? I can clearly see and understand your specific definitions, and I'll yield to that point.

However, from what I gather, his language means transitioning through a "soft patch" and then back to "normal" ok levels. Meaning the same as temporary.

Wed, 07/13/2011 - 11:39 | 1452034 SWCroaker
SWCroaker's picture

I'm only half pressing tongue to cheek when I remark on his odd use to date of the word transitory, and subsequent change to the word temporary. 

IHMO, the Fed Chairman is a vewy vewy cwever weasel when it comes to word choice.  He's apt to pick words with multiple meanings, and often lean on the 4th or 5th obscure definition when it suits him.  Given that we're trying to diagnose the speech of an intelligent individual, one who prides himself on his mastery of language, I'd think twice about the fact that he has altered the word he is using to characterize a situation.  He sees some difference, that is almost certain.

The "return to prior state" assumption is an assumption, as strict definitions of "transitory" and "temporary" do not imply what comes next.  The listener may assume that further qualification, but Ben would be justified in claiming he never said that.

Wed, 07/13/2011 - 11:58 | 1452056 TheTmfreak
TheTmfreak's picture

Depends on whos definition of justification you might take. I'd say he could say that, but I wouldn't let him get away with him.

Its very clear from his ridiculous outlooks is that things will "get better" if things kind of stay as the status quo (with debt ceiling raised).

Edit: He just (in my mind) accepted this statement, when he was questioned about "being transitory and then residing."

Wed, 07/13/2011 - 12:04 | 1452218 Sleepy Weasal
Sleepy Weasal's picture

So maybe this is the summer of recovery...the last one was both transitory and temporary. 

Wed, 07/13/2011 - 10:49 | 1451636 Cone of Uncertainty
Cone of Uncertainty's picture

Don't let that fucking happen again.

Wed, 07/13/2011 - 12:36 | 1452426 bonddude
bonddude's picture

For the first time I like Maxine Waters. She's roasting the Bernank on the Real Housewives of

Wall Street. hahahahaha

Wed, 07/13/2011 - 11:15 | 1451444 DavidC
DavidC's picture

A succinct and pithy response - which made me laugh!

DavidC

Wed, 07/13/2011 - 10:28 | 1451531 tarsubil
tarsubil's picture

Ben is just so stiff, so haggard, so robotic in his reading of his statements. I wonder what would happen if he went a day without medication/narcotics.

Wed, 07/13/2011 - 10:48 | 1451632 fuu
fuu's picture

Silver over $38.

Thanks Ben! +1.94/oz

Wed, 07/13/2011 - 10:54 | 1451675 redpill
redpill's picture

And rising!  PMs going orbital.

Wed, 07/13/2011 - 10:57 | 1451707 fuu
fuu's picture

38.15

Wed, 07/13/2011 - 11:33 | 1451988 dark pools of soros
dark pools of soros's picture

you sound like a stock pumper...  wasn't silver at $48ish?  keep the oven door closed while it bakes..

Wed, 07/13/2011 - 12:07 | 1452241 dark pools of soros
dark pools of soros's picture

ha i get junked for this..   i was one of the few on here that actually sold at $48 and bought back down at $41 and $36..  so i don't mind the small recent run but how about all you 'NEVER SELL' crew..  how can you get excited at $38? or even $45?  you act like you are getting rich but you never make any realized gains anyway..  just die already

Wed, 07/13/2011 - 14:07 | 1452439 fallout11
fallout11's picture

Disturbingly prescient comment there dark pools.

The selling price in fiat script is immaterial if one never sells for fiat script.

Wed, 07/13/2011 - 11:22 | 1451900 jerry_theking_lawler
jerry_theking_lawler's picture

i wonder how many Chinese this is gonna piss off....oh yeah, and Russians, too....

Wed, 07/13/2011 - 11:30 | 1451957 slaughterer
slaughterer's picture

I do not see one sign of "deflationary pressure" on the market today.  The market can forget about QE3 if it maintains this trajectory.  BB's Catch 22.

Wed, 07/13/2011 - 10:02 | 1451393 Dr. Engali
Dr. Engali's picture

Inflation in check......soft patch....transitory...blah blah blah

Wed, 07/13/2011 - 10:19 | 1451479 Paper CRUSHer
Paper CRUSHer's picture

Careful there Doc'.......Benny Boy stated 'soft recovery' not 'soft patch.'

Its still good to know that the Fed has reached a consenus on an exit strategy once the economoney recovers.Roughly translated....never.

 

 

Wed, 07/13/2011 - 10:33 | 1451548 Translational Lift
Translational Lift's picture

This is like watching a toilet back up..............

Wed, 07/13/2011 - 10:36 | 1451557 Calculated_Risk
Calculated_Risk's picture

hehehe

Wed, 07/13/2011 - 10:58 | 1451727 LongBalls
LongBalls's picture

hahahaha!

Wed, 07/13/2011 - 10:02 | 1451395 francis_sawyer
francis_sawyer's picture

Welcome to today's "jerkle cirk"... Pull up a chair an prepare to get hosed

Wed, 07/13/2011 - 10:10 | 1451436 Dr. Richard Head
Dr. Richard Head's picture

A bukkake kabuki?

Wed, 07/13/2011 - 10:15 | 1451462 francis_sawyer
francis_sawyer's picture

good one!... definitely a "fuster cluck"

Wed, 07/13/2011 - 12:05 | 1452223 GoinFawr
GoinFawr's picture

What a bunch of cunning stunning stunts.

Wed, 07/13/2011 - 10:02 | 1451396 caerus
caerus's picture

lol..."economic uncertainty"

Wed, 07/13/2011 - 10:23 | 1451509 A Man without Q...
A Man without Qualities's picture

= we know it hurts but we haven't finished transferring what's left of the middle class's wealth to the banks....

Wed, 07/13/2011 - 10:46 | 1451615 Ricky Bobby
Ricky Bobby's picture

+1

Austerity for the peasants

Wed, 07/13/2011 - 10:02 | 1451397 cossack55
cossack55's picture

Why?

Wed, 07/13/2011 - 10:02 | 1451398 GetZeeGold
GetZeeGold's picture

 

Here's hoping he can top his no freakin clue comment from the last presser.

 

Wed, 07/13/2011 - 10:02 | 1451400 Eric Cartman
Eric Cartman's picture

Not working.

Wed, 07/13/2011 - 10:04 | 1451405 GetZeeGold
GetZeeGold's picture

 

Yeah.......we're aware of that.

 

Wed, 07/13/2011 - 10:04 | 1451402 francis_sawyer
francis_sawyer's picture

Wait... Wait... My peas are still re-heating in the microwave...

Wed, 07/13/2011 - 10:08 | 1451427 j0nx
j0nx's picture

Ahh this place is always good for a laugh!

Wed, 07/13/2011 - 10:18 | 1451484 francis_sawyer
francis_sawyer's picture

@jOnx

Put "the beard" in a chair & shove a mike in his face & all sorts of hilarity ensues...

It's to smoothout those 'transitory' soft patches inbetween Joe Lavorgna & Richard Koo comments...

 

Wed, 07/13/2011 - 11:29 | 1451482 I Am The Unknow...
I Am The Unknown Comic's picture

Should we be eating our peas on the edge of a sharp knife, or should we "just suck them up?"

You know, in all fairness to Obama, at least he didn't say "collard greens."  I will eat my peas but I will NOT eat my collard greens.  Same goes for kale, polk, kelp....

Wed, 07/13/2011 - 10:42 | 1451587 TheTmfreak
TheTmfreak's picture

So should I be led to believe, that you saved your left over peas? Phew, I figure most people would just not eat them and throw them away. You know the true consumer way.

Wed, 07/13/2011 - 10:03 | 1451403 UTICA CLUB XX PURE
UTICA CLUB XX PURE's picture

How do they start out by complementing him? Its a big farce already...

Wed, 07/13/2011 - 10:04 | 1451404 Atomizer
Atomizer's picture

We're going to kick the pea down the road.

Wed, 07/13/2011 - 10:50 | 1451642 Whatta
Whatta's picture

TAX THE PEAS!!!!

Wed, 07/13/2011 - 11:03 | 1451775 pods
pods's picture

Eat your peas, bitchez!

pods

Wed, 07/13/2011 - 11:52 | 1452117 mt paul
mt paul's picture

pay taxes

in peas....

 

vegetable eating bytches

Wed, 07/13/2011 - 10:05 | 1451408 the not so migh...
the not so mighty maximiza's picture

Let me guess, he is going to print more money.

Wed, 07/13/2011 - 10:51 | 1451650 baby_BLYTHE
baby_BLYTHE's picture

yep, that is all the money printer knows. However, I was reminded this morning of his famous helicopter speech...

 

The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services.

 

Remember, the man can always be bluffing. I am with Bill Gross, they will still a wait a bit to offically annouce it.

No one should get ahead of themselves,however, if planning to trade on this

Wed, 07/13/2011 - 11:04 | 1451785 the not so migh...
the not so mighty maximiza's picture

I don't know if it is a bluff babyBlyth, who is going to buy US debt;  ether direct or indirect?

 

Wed, 07/13/2011 - 11:41 | 1452036 baby_BLYTHE
baby_BLYTHE's picture

I agree with you, that there are basically no buyers of US debt at these ultra-low rates. (other than liquidity games played between central banks)

That is why I mentioned I agree with Bill Gross.

All I am suggesting is that they may "hint" at more printing long before they actually initiate the presses.

More easing is coming, that is a certainty

Wed, 07/13/2011 - 12:33 | 1452410 Vic Vinegar
Vic Vinegar's picture

My God you know a lot of things baby...I think you are destined for greatness.  Have a wonderful day.

Wed, 07/13/2011 - 11:00 | 1451745 LongBalls
LongBalls's picture

They have not another choice in the world. They stop the press the ponzi collapses.

Wed, 07/13/2011 - 11:02 | 1451760 Shell Game
Shell Game's picture

QE3 = the mere suggestion, no action required.

Wed, 07/13/2011 - 11:52 | 1452126 mt paul
mt paul's picture

print more

peas....

Wed, 07/13/2011 - 10:06 | 1451414 10kby2k
10kby2k's picture

I cannot watch the guy....his face revolts me.

Wed, 07/13/2011 - 10:06 | 1451417 Dick Darlington
Dick Darlington's picture

And look at the instant wealth effect for the 0,1% of the population. RTY goes nuts immediatly when Bernank opens his mouth. Beyond laughable...

Wed, 07/13/2011 - 10:07 | 1451418 PsefTikos
PsefTikos's picture

the only time stimulation is used by the Berncanker is when he's stimulating GS's genitals

Wed, 07/13/2011 - 10:07 | 1451419 j0nx
j0nx's picture

I'm sure Ron Paul is prepared to throw some REAL 100mph fastball questions Ben's way instead of the usual softballs since Ron is retiring and has nothing to lose anymore. Right? Right? Bueller?...

Wed, 07/13/2011 - 10:09 | 1451433 the not so migh...
the not so mighty maximiza's picture

would be nice

Wed, 07/13/2011 - 10:28 | 1451532 W T Effington
W T Effington's picture

Reading Market Ticker huh? Deninger is on point with a lot of stuff but he has a huge insecurity when it comes to Ron Paul. I think hes jealous because Paul actually does stuff and Deninger just talks.

Wed, 07/13/2011 - 10:28 | 1451533 InconvenientCou...
InconvenientCounterParty's picture

Bueller's tied up at the moment so I'll jump in.

...nothing to lose?

I think the facts would indicate otherwise.

1. He's running for POTUS.

2. His portfolio is packed to the gills with Gold Miners.

Wed, 07/13/2011 - 10:32 | 1451545 W T Effington
W T Effington's picture

What do you want from the man? He wrote a fucking book called END THE FED. How would asking the most difficult questions imaginable change the situation any? Bernanke has already lost most of his credibility with those who pay attention.

Wed, 07/13/2011 - 10:34 | 1451553 TheTmfreak
TheTmfreak's picture

Since apparently using the words "monetary policy" (ironically as I wrote this, i was trying to remember the word, and sure enough the good ol' bernank assisted me) is something that public is completely neutral about, i'm sure him asking the CRAZIEST curve ball CRAAZZZZY questions would have absolutely no effect whatsoever, especially since not a single "news" source will report it, as nobody would read it.

 

Wed, 07/13/2011 - 10:55 | 1451683 TheTmfreak
TheTmfreak's picture

Oh goodness I stand slightly corrected. Boy did he call him out on gold.

"Is gold money"

Silence...

"No"

fast forward...

"Why hold treasuries then?

Silence....

"Tradition..."

Really?

Wed, 07/13/2011 - 10:54 | 1451671 j0nx
j0nx's picture

I don't need Denninger to tell me how to think. I've always been critical of Paul for not BBQng Bernanke as he testifies. Paul talks a big game but then never takes it all the way. There is a LOT more that he could be doing and a LOT more heat that he could be applying if he wanted to. The only question is why doesn't he want to?...

Wed, 07/13/2011 - 11:37 | 1452020 dark pools of soros
dark pools of soros's picture

and what are you doing armchair qb?

Wed, 07/13/2011 - 11:55 | 1452145 mt paul
mt paul's picture

the best way

to control opposition ..

 

is to be the opposition ...

 

 

Wed, 07/13/2011 - 12:45 | 1452474 fallout11
fallout11's picture

Smart man. Classic control methodology.

Wed, 07/13/2011 - 11:05 | 1451787 LooseLee
LooseLee's picture

Yea, and those POS's on CNBC cut the broadcast as soon as Ron was questioning the fact that TPTB's resue was only for the banks and corps with nothing going to mainstreet. What a farce of a leadership and MSM we have in this degrading nation....

Wed, 07/13/2011 - 10:07 | 1451421 Dr. Engali
Dr. Engali's picture

Ah nice qe3. Thank you Ben for increasing the value of my silver and gold. Or should I say devaluing the buck? Either way...Thanks.

Wed, 07/13/2011 - 11:39 | 1452035 dark pools of soros
dark pools of soros's picture

right so you can also pay more for gas, food, everything..  no one gets rich from gold and silver, you just protect your wealth

Wed, 07/13/2011 - 10:07 | 1451423 TradingJoe
TradingJoe's picture

and the "market" goes APE just because he might say something not included in the "statement", or simply put...short from a bit higher?!?!

Wed, 07/13/2011 - 11:35 | 1452010 slaughterer
slaughterer's picture

+1

Short, including the PMs.

If you think silver will stay very long above $38, you are probably not good at intuiting what is happening behind the scenes at the JPM commodities division strategy room...

Wed, 07/13/2011 - 10:07 | 1451424 jack stephan
jack stephan's picture

Priest Vito Cornelius: I try to serve life. And you seem to want to destroy it.
Zorg: Oh, Father. You're so wrong. Let me explain.
[Puts and empty water glass on his desk]
Zorg: Life, which you so nobly serve, comes from destruction, disorder and chaos. Now take this empty glass. Here it is: peaceful, serene, boring. But if it is destroyed
[Pushes the glass off the table. It shatter on the floor, and several small machines come out to clean it up]
Zorg: Look at all these little things! So busy now! Notice how each one is useful. A lovely ballet ensues, so full of form and color. Now, think about all those people that created them. Technicians, engineers, hundreds of people, who will be able to feed their children tonight, so those children can grow up big and strong and have little teeny children of their own, and so on and so forth. Thus, adding to the great chain of life. You see, father, by causing a little destruction, I am in fact encouraging life. In reality, you and I are in the same business.

Wed, 07/13/2011 - 10:38 | 1451571 snowball777
snowball777's picture

Where is the robot to pat you on the back? Or the engineers? Or their children?

 

Wed, 07/13/2011 - 12:11 | 1452278 GoinFawr
GoinFawr's picture

"Much better. Never be ashamed of who you are. You're warriors, be proud. So what if the Federal Government scattered your people into the wind? What doesn't kill you makes you stronger. Your time for revenge is at hand."-Zorg

Wed, 07/13/2011 - 10:08 | 1451428 Atomizer
Atomizer's picture

Gold is rising, thanks Ben!

Wed, 07/13/2011 - 10:13 | 1451452 Josh Randall
Josh Randall's picture

Exactly - And the Silver to Gold ratio along with it. Watch that JPM ad Silver price gap shrink - love it

Wed, 07/13/2011 - 10:17 | 1451476 Dr. Richard Head
Dr. Richard Head's picture

Question is, when the parity of Silver and JPM come about this time through who gets slammed down THIS time?  Will it be silver yet again or JPM collateralization of its stock for naked shorting silver get hammered down? 

Me thinks they still have a couple bullets left in the chamber to cram down silver before the winter of this year.

Wed, 07/13/2011 - 10:22 | 1451501 francis_sawyer
francis_sawyer's picture

Looks to me like a Au or Ag "arbitrage" opportunity vs. Platinum might be the play for a few months...

Wed, 07/13/2011 - 10:30 | 1451538 Josh Randall
Josh Randall's picture

I concurr Doc, I believe the Morgue will smack it down once again but I just love the thought of the JPM execs sweating it out because they only do have a few bullets left 

Wed, 07/13/2011 - 10:46 | 1451584 francis_sawyer
francis_sawyer's picture

Who needs bullets when you have a printing press...

The pen is mightier than the sword... & the printing press is mightier than the pen...

---

You actually CAN print gold... Here's how... You get all the debt piled up onto soverign balance sheets... You get the sovereigns in a perpetual feedback loop of needing to add to that steaming shitpile or else TEOTWAWKI...

You PRINT the extra debt (in the form of notes)... You hustle those notes over to the commodities exchanges and incrementally scoop up all the marginal supply... then store it on pallettes in warehouses in downtown detroit...

Voila! You've printed gold

 

Wed, 07/13/2011 - 11:08 | 1451819 Shell Game
Shell Game's picture

Not at all far from the truth:  Who Is Draining GLD?

A: the giants..

Wed, 07/13/2011 - 10:19 | 1451485 LMAO
LMAO's picture

Yeah, altogether this should turn out to be an excellent day for commods and stocks. As to inflation, even though it has picked up somewhat according to the great almighty it's still not even close to what ZimbaBen is aiming at, thus full thrust ahead to boost inflation. Warp speed 5 Cpt. Zulu, errr I mean Cpt. Obahama.

 

LMAO

Wed, 07/13/2011 - 10:08 | 1451431 Bohemian Clubber
Bohemian Clubber's picture

"Upside down
Boy, you turn me
Inside out
And round and round
Upside down
Boy, you turn me
Inside out
And round and round

Instinctively you give to me
The love that I need
I cherish the moments with you
Respectfully I say to thee
I'm aware that you're cheatin'
When no one makes me feel like you do"

Wed, 07/13/2011 - 10:09 | 1451434 lieutenantjohnchard
lieutenantjohnchard's picture

holding but physical silver i would love it if the bernank spoke daily. physical would surely skyrocket.

Wed, 07/13/2011 - 10:11 | 1451445 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

...what a bunch of blowhards...egotistical fucktards the lot of 'em

Wed, 07/13/2011 - 10:11 | 1451447 anony
anony's picture

Gracyass, but No thanks.

When he speaketh I find it's healthier and far more informative if I watch re-reruns of, "Mr. Ed".  A talking horse makes more sense then his addlepated propagandizing.

I'd watch instead, what he does, not what he says.  And THAT I can't do until long after it happens.

Wed, 07/13/2011 - 10:12 | 1451450 Dr. Engali
Dr. Engali's picture

 I wish Bawny Fwank would shut his pie hole.

Wed, 07/13/2011 - 11:14 | 1451725 hedgeless_horseman
hedgeless_horseman's picture

Like many of us, I'm sure Ben is happy to be facing Barney's front, and be showered in lisp spit, rather than be just another TBTF intern sacrificed at a Hutt party held over the Massachusetts congressman's rear...

Actual size.

Wed, 07/13/2011 - 12:14 | 1452297 bigdumbnugly
bigdumbnugly's picture

ugh.  thanks for that.  really.

i will be unable to post for the next several minutes as i clean the blown chunks off my keyboard.

Wed, 07/13/2011 - 10:12 | 1451451 Marge N. Callz
Marge N. Callz's picture

What a fuckstick.

Wed, 07/13/2011 - 10:13 | 1451456 White.Star.Line
White.Star.Line's picture

Due to the lack of results from our previous policies, we are going to try a new program called "honest communication."

Let me start by saying, we are going to continue to rob from you every worthwhile asset on the planet, and in return you get debt, devalued currency, poverty and pain.

Eat your peas happily, or we will make you eat bombs.

Wed, 07/13/2011 - 10:13 | 1451457 ZippyBananaPants
ZippyBananaPants's picture

Paul should go over and drop a tea bag on Frank's chin

Wed, 07/13/2011 - 10:14 | 1451464 Dr. Richard Head
Dr. Richard Head's picture

Flagged as funny.

Wed, 07/13/2011 - 10:14 | 1451463 Jambo Mambo Bill
Jambo Mambo Bill's picture

Ron Paul jumping ship?

Wed, 07/13/2011 - 10:21 | 1451500 I Am The Unknow...
I Am The Unknown Comic's picture

he's going to finish his term and run for president

Wed, 07/13/2011 - 10:14 | 1451465 Sudden Debt
Sudden Debt's picture

Just wait at least 12 months before a new QE.

It's way to early.

Just wait a bit longuer untill everything goes to the shitters.

Why waste it now?

 

Wed, 07/13/2011 - 10:25 | 1451507 dwdollar
dwdollar's picture

A year without QE will include riots and expanding 'no-go zones' in the US.  Of course all that will happen anyway.  But why let it happen now while you're still able to forestall it?

Wed, 07/13/2011 - 10:29 | 1451536 Sudden Debt
Sudden Debt's picture

Like the once in California?

Or those in Queens?

Or Detroit?

Yep, you don't want those...

 

Wed, 07/13/2011 - 10:57 | 1451622 Marco
Marco's picture

As long as no one in government has the vision to present a solution which doesn't end in a complete clusterfuck I personally welcome more QE ... delay the collapse as long as possible, I doubt it matters for the severity any more at this point.

None of the debt will ever be paid off, so borrow while the borrowing is good. As long as we can get trinkets and oil for paper keep the gravy train rolling ...

Wed, 07/13/2011 - 10:26 | 1451522 francis_sawyer
francis_sawyer's picture

Last time QE was announced/frontrun...

You'd just seen a technical "dark cross" of the 50ma & 200ma (SPX)... Since the 200ma (as we speak) is creeping up towards 1260, that may be somewhat of a bogey...

- Let "dark cross" happen

- trigger a few Hindenburg Omens

- Get the momo-s & daytraders to pile in short

---

Pull the string on QE3... Well - it worked last year, anyway...

 

Wed, 07/13/2011 - 10:34 | 1451551 InconvenientCou...
InconvenientCounterParty's picture

+1

That would be my playbook. I don't have a jittery trigger finger (and upper lip) though.

Wed, 07/13/2011 - 12:12 | 1452281 Sleepy Weasal
Sleepy Weasal's picture

Bennie knew how the markets would react he just needed to feel what the china and euro response would be.  He will know alot more over the next few days.  

 

This speech buys some time but I think in total it's a head fake.  

Wed, 07/13/2011 - 10:15 | 1451466 johny2
johny2's picture

I could almost believe Bernanke is a gold bug, judging by his actions.

Wed, 07/13/2011 - 10:52 | 1451652 KickIce
KickIce's picture

Of course he is, these sob's know exactly what is going down seeing that they are the orchestrators.

Wed, 07/13/2011 - 10:15 | 1451467 Iriestx
Iriestx's picture

I'm sure if we print a few trillion more and give it to big and foreign banks that everything will work out.

Wed, 07/13/2011 - 10:15 | 1451468 SmoothCoolSmoke
SmoothCoolSmoke's picture

QE(3) will backfire on equites this time.  That will be the irony of the whole thing.

Wed, 07/13/2011 - 10:16 | 1451472 ss123
ss123's picture

I thought that after doing the same thing over and over again and expecting different results was a form of idiocy.

Why do they think throwing even more stimulus at the problem will help in the long run? Idiots.

Wed, 07/13/2011 - 10:21 | 1451498 the not so migh...
the not so mighty maximiza's picture

No one is buying our trash debt so they have to,  no choice.

Wed, 07/13/2011 - 10:33 | 1451518 Sudden Debt
Sudden Debt's picture

Maybe a new marketing department would help for the Gov.?

ACTIONMARKETING BITCHEZ!!

 

BUY 1 BOND GET 1 FREE!!

BUY 1, not satified? FULL REFUND!!

FREE LONGRIFFLE WITH EVERY BOND PURCHASED

BUY 1 BOND AND GET A GM CAR FOR FREE!

 

And this one could also work:

FOR EVERY 1000$ PURCHASED IN BONDS, YOU GET 1 OUNCE OF FORT KNOX GOLD FOR FREE!

...

 

Wed, 07/13/2011 - 10:37 | 1451569 Bohemian Clubber
Bohemian Clubber's picture

lol

Wed, 07/13/2011 - 10:48 | 1451630 Calculated_Risk
Calculated_Risk's picture

Buy 1 bond, get a wacky wavy inflatable tube man!!!

http://www.youtube.com/watch?v=YtespeLin2c&feature=related

Wed, 07/13/2011 - 10:53 | 1451660 Calculated_Risk
Calculated_Risk's picture

Buy 1 bond, get a wacky wavy inflatable tube man!!!

http://www.youtube.com/watch?v=YtespeLin2c&feature=related

Wed, 07/13/2011 - 11:35 | 1452004 Sunshine n Lollipops
Sunshine n Lollipops's picture

Why do they think throwing even more stimulus at the problem will help in the long run? Idiots.

I believe it's called 'The Race to the Bottom."

Wed, 07/13/2011 - 10:16 | 1451473 scratch_and_sniff
scratch_and_sniff's picture

We are now back in the bad news is good news paradigm...make the most of it.

Wed, 07/13/2011 - 10:17 | 1451477 Version 7
Version 7's picture

He's going to finally announce the amero.

Wed, 07/13/2011 - 10:17 | 1451478 Archimedes
Archimedes's picture

Whoa! Ron Paul is coherent and making a clear concise argument!

Wed, 07/13/2011 - 15:59 | 1452212 baby_BLYTHE
baby_BLYTHE's picture

I agree.

The first part of Ron Paul's testimony was loaded with economic populism

'all these big banks and corporations are getting all this money while the consumer is broke and unemployment is sky high'..."wouldn't it be better if the consumers got access to that money instead ($17,000 divided up amongst the population)"

Even if the printer doesn't think gold=money, he does watch the price and is aware it is a vote of no confidence against his central planning outfit

Wed, 07/13/2011 - 10:18 | 1451483 SmoothCoolSmoke
SmoothCoolSmoke's picture

Look at this from CNBC website: 

Fed Chairman Ben Bernanke told Congress Wednesday that a new stimulus program is in the works that will entail more asset purchases, the clearest sign yet the central bank is weighing another round of monetary easing.

Did Ber-shankie really say those words?!?!?

 

 

Wed, 07/13/2011 - 10:20 | 1451492 the not so migh...
the not so mighty maximiza's picture

QEIII baby

Wed, 07/13/2011 - 10:26 | 1451520 johny2
johny2's picture

It has been clear for some time that QE3 is being brought forward. Haven't you noticed that dollar exchange rate is low even when you compare it to the currency of the greece and portugal? Central planning.

Wed, 07/13/2011 - 10:19 | 1451488 caerus
caerus's picture

Ron Paul is the man

Wed, 07/13/2011 - 10:21 | 1451495 euphoria
euphoria's picture

fuck yer he is.

Wed, 07/13/2011 - 10:20 | 1451490 tarsubil
tarsubil's picture

William Clay got my hopes up then dashed them like a hot wet turd on the windshield of a super sonic jet.

Wed, 07/13/2011 - 10:20 | 1451493 MFL8240
MFL8240's picture

QE1 and QE2 have not accomplished a thing, why is QE3 gonna work?

Wed, 07/13/2011 - 10:22 | 1451505 the not so migh...
the not so mighty maximiza's picture

No one is buying our garbage debt so they have to,  no choice.

Wed, 07/13/2011 - 10:24 | 1451511 SmoothCoolSmoke
SmoothCoolSmoke's picture

It worked for GS, JPM, MS, et al.  They'll take more because they could give a shit if it destroys the USA.

Wed, 07/13/2011 - 10:37 | 1451561 francis_sawyer
francis_sawyer's picture

Cause it pays the bills for another month... Consider it a "payday loan"...

Wed, 07/13/2011 - 10:21 | 1451499 euphoria
euphoria's picture

Anyone watching the gold chart while chairsatan speaks?

Wed, 07/13/2011 - 10:22 | 1451506 tarsubil
tarsubil's picture

It is all transitory! Earthquakes and oil speculation! You gotta believe me! It isn't my fault!

http://www.youtube.com/watch?v=UBCoLQI0GKM

 

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