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Watch Ben Bernanke's Testimony To Congress Live, "Prepared To Respond If Stimulus Needed"
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:
- Growth is sluggish, for reasons that can not be attributer to special factors -- that was the FX market takeaway from yesterday's Minutes
- QE3 not on the radar screen now
- 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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No.
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
Another link:
http://www.c-span.org/flvPop.aspx?src=cspan3&msg=You+are+watching+the+C-...
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.
Watching Barney Frank makes me want to give my breakfast back.
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.
IS BIG BEN CRYING? Wow. haha. He is quivering for real. Clearly Ron Paul has broken his monotone coooool roboticism.
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.
I was definitely blown away during that part. Glad I was watching just for that.
Bullets are an asset...
So apparently is Linkedin and Angry Birds stock. Bernanke's words are probably an asset as well.
All for love of US empire, which will die without such assets.
QE3 ON THE TABLE>>> ITS ON THE TABLE.
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
Zieg Heil NAZImerikan Federation MUST RULE - PRINT PRINT PRINT.
why hold pennies(bullets) when they get to hold gold(nukes)?
Guaranteed eventually worth more than any other "asset" on the planet. Time will prove this absolutely correct; and the clock is ticking.
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.
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..
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.
11 Silver Investor Mentality Shifts
http://dont-tread-on.me/11-silver-investor-mentality-shifts/
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...
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.
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.
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."
So maybe this is the summer of recovery...the last one was both transitory and temporary.
Don't let that fucking happen again.
For the first time I like Maxine Waters. She's roasting the Bernank on the Real Housewives of
Wall Street. hahahahaha
A succinct and pithy response - which made me laugh!
DavidC
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.
Silver over $38.
Thanks Ben! +1.94/oz
And rising! PMs going orbital.
38.15
you sound like a stock pumper... wasn't silver at $48ish? keep the oven door closed while it bakes..
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
Disturbingly prescient comment there dark pools.
The selling price in fiat script is immaterial if one never sells for fiat script.
i wonder how many Chinese this is gonna piss off....oh yeah, and Russians, too....
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.
Inflation in check......soft patch....transitory...blah blah blah
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.
This is like watching a toilet back up..............
hehehe
hahahaha!
Welcome to today's "jerkle cirk"... Pull up a chair an prepare to get hosed
A bukkake kabuki?
good one!... definitely a "fuster cluck"
What a bunch of cunning stunning stunts.
lol..."economic uncertainty"
= we know it hurts but we haven't finished transferring what's left of the middle class's wealth to the banks....
+1
Austerity for the peasants
Why?
Here's hoping he can top his no freakin clue comment from the last presser.
Not working.
Yeah.......we're aware of that.
Wait... Wait... My peas are still re-heating in the microwave...
Ahh this place is always good for a laugh!
@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...
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....
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.
How do they start out by complementing him? Its a big farce already...
We're going to kick the pea down the road.
TAX THE PEAS!!!!
Eat your peas, bitchez!
pods
pay taxes
in peas....
vegetable eating bytches
Let me guess, he is going to print more money.
yep, that is all the money printer knows. However, I was reminded this morning of his famous helicopter speech...
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
I don't know if it is a bluff babyBlyth, who is going to buy US debt; ether direct or indirect?
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
My God you know a lot of things baby...I think you are destined for greatness. Have a wonderful day.
They have not another choice in the world. They stop the press the ponzi collapses.
QE3 = the mere suggestion, no action required.
print more
peas....
I cannot watch the guy....his face revolts me.
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...
the only time stimulation is used by the Berncanker is when he's stimulating GS's genitals
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?...
would be nice
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.
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.
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.
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.
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?
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?...
Maybe because of this?
http://aftermathnews.wordpress.com/2008/04/22/ron-paul-and-freemasonry/
and what are you doing armchair qb?
the best way
to control opposition ..
is to be the opposition ...
Smart man. Classic control methodology.
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....
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.
right so you can also pay more for gas, food, everything.. no one gets rich from gold and silver, you just protect your wealth
and the "market" goes APE just because he might say something not included in the "statement", or simply put...short from a bit higher?!?!
+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...
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.
Where is the robot to pat you on the back? Or the engineers? Or their children?
"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
Gold is rising, thanks Ben!
Exactly - And the Silver to Gold ratio along with it. Watch that JPM ad Silver price gap shrink - love it
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.
Looks to me like a Au or Ag "arbitrage" opportunity vs. Platinum might be the play for a few months...
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
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
Not at all far from the truth: Who Is Draining GLD?
A: the giants..
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
"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"
holding but physical silver i would love it if the bernank spoke daily. physical would surely skyrocket.
...what a bunch of blowhards...egotistical fucktards the lot of 'em
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.
I wish Bawny Fwank would shut his pie hole.
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.
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.
What a fuckstick.
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.
Paul should go over and drop a tea bag on Frank's chin
Flagged as funny.
Ron Paul jumping ship?
he's going to finish his term and run for president
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?
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?
Like the once in California?
Or those in Queens?
Or Detroit?
Yep, you don't want those...
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 ...
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...
+1
That would be my playbook. I don't have a jittery trigger finger (and upper lip) though.
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.
I could almost believe Bernanke is a gold bug, judging by his actions.
Of course he is, these sob's know exactly what is going down seeing that they are the orchestrators.
I'm sure if we print a few trillion more and give it to big and foreign banks that everything will work out.
QE(3) will backfire on equites this time. That will be the irony of the whole thing.
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.
No one is buying our trash debt so they have to, no choice.
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!
...
lol
Buy 1 bond, get a wacky wavy inflatable tube man!!!
http://www.youtube.com/watch?v=YtespeLin2c&feature=related
Buy 1 bond, get a wacky wavy inflatable tube man!!!
http://www.youtube.com/watch?v=YtespeLin2c&feature=related
I believe it's called 'The Race to the Bottom."
We are now back in the bad news is good news paradigm...make the most of it.
He's going to finally announce the amero.
Whoa! Ron Paul is coherent and making a clear concise argument!
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
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?!?!?
QEIII baby
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.
Ron Paul is the man
fuck yer he is.
William Clay got my hopes up then dashed them like a hot wet turd on the windshield of a super sonic jet.
QE1 and QE2 have not accomplished a thing, why is QE3 gonna work?
No one is buying our garbage debt so they have to, no choice.
It worked for GS, JPM, MS, et al. They'll take more because they could give a shit if it destroys the USA.
Cause it pays the bills for another month... Consider it a "payday loan"...
Anyone watching the gold chart while chairsatan speaks?
It is all transitory! Earthquakes and oil speculation! You gotta believe me! It isn't my fault!
http://www.youtube.com/watch?v=UBCoLQI0GKM