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Sorry Folks, QE 3 Ain't Coming... Even the Fed Doves Admit It

Phoenix Capital Research's picture





 

 

Once again the US economy is tanking and everyone is talking QE 3. Sorry folks, it ain’t coming. Bernanke said point blank that it was less attractive as a monetary tool as far back as May ‘11.

 

Q. Since both housing and unemployment have not recovered sufficiently, why are you not instantly embarking on QE3? — Michael A. Kamperman, Waco, Tex.

 

Mr. Bernanke: “Going forward, we’ll have to continue to make judgments about whether additional steps are warranted, but as we do so, we have to keep in mind that we do have a dual mandate, that we do have to worry about both the rate of growth but also the inflation rate…

 

The trade-offs are getting — are getting less attractive at this point. Inflation has gotten higher. Inflation expectations are a bit higher. It’s not clear that we can get substantial improvements in payrolls without some additional inflation risk. And in my view, if we’re going to have success in creating a long-run, sustainable recovery with lots of job growth, we’ve got to keep inflation under control. So we’ve got to look at both of those — both parts of the mandate as we — as we choose policy”

 

http://economix.blogs.nytimes.com/2011/04/28/how-bernanke-answered-your-questions/

 

Even the biggest monetary doves are now agreeing with Bernanke. Bill Dudley, of the New York Fed, who’s been braying for more QE for over a year had the following to say on Wednesday:

 

Fed's Dudley: If Growth Continues, More Fed Stimulus Unwarranted

 

The leader of the Federal Reserve Bank of New York repeated Wednesday his expectation that the U.S. central bank will not need to provide additional stimulus to the economy, even as he left the door open to further action.

 

Acknowledging the options before the central bank each have costs and benefits, New York Fed president William Dudley said "as long as the U.S. economy continues to grow sufficiently fast to cut into the nation's unused economic resources at a meaningful pace, I think the benefits from further action are unlikely to exceed the costs."

 

http://online.wsj.com/article/BT-CO-20120530-712819.html

 

Folks if you’re buying into the whole QE 3 is coming on June 6th  argument you’re out of your minds. This is an election year. If the Fed announces QE 3 now, Obama is done. Do you really think this is going to happen when even the Fed’s biggest doves are noting that the consequences of QE outweigh the benefits?

 

With that in mind, Europe will be collapsing as no one (not the ECB, not the IMF, not the ESM, and not even the Fed) will be stepping in to prop it up. The reason? NONE of these entities have the funds (Europe’s banking system is $46 trillion in size) to do so (bank runs are pushing leverage levels even higher in Spain, Greece and elsewhere).

 

Moreover, the political environments for their organizations (the US for the Fed and IMF and Germany for the ECB and ESM) will not permit a massive intervention. If the Fed cranks up the printing press, Obama loses any hope of re-election. If the ECB cranks up the printing press, Germany walks. End of story.

 

On that note, if you’re not preparing for the collapsing of the EU, you need to do so now. I recently published a report showing investors how to prepare for this. It’s called How to Play the Collapse of the European Banking System and it explains exactly how the coming Crisis will unfold as well as which investment (both direct and backdoor) you can make to profit from it.

 

This report is 100% FREE. You can pick up a copy today at: http://www.gainspainscapital.com

 

Good Investing!

 

Graham Summers

 

PS. We also feature numerous other reports ALL devoted to helping you protect yourself, your portfolio, and your loved ones from the Second Round of the Great Crisis. Whether it’s a US Debt Default, runaway inflation, or even food shortages and bank holidays, our reports cover how to get through these situations safely and profitably.

 

And ALL of this is available for FREE under the OUR FREE REPORTS tab at: http://www.gainspainscapital.com

 

 

 

 

 

 

 


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Sat, 06/02/2012 - 16:20 | Link to Comment Freebird
Freebird's picture

How many newsletters was that you've sold Graham, not including your mum & other family?

Sat, 06/02/2012 - 16:14 | Link to Comment Infinite QE
Infinite QE's picture

And if QE3, or some other form of announced monetization goes out on June 6, your next career is what? Do you have a prepared free pamphlet describing that change? LOL!

 

Sat, 06/02/2012 - 15:59 | Link to Comment max2205
max2205's picture

You're clueless
If Obamerama kicks the can by giving QE zirp free money he's back in.

Please don't repeat that out loud......

Sat, 06/02/2012 - 15:58 | Link to Comment ddtuttle
ddtuttle's picture

The dual mandate is nonsense, at best it's propaganda.  The Fed has one mandate: preserve the baking system by "privatizing gains, and socializing losses".  That's it.  In other words, their only real mandate is QE.

If the banking system is health, they can tinker with other thing to keeps themselves busy.  But make no mistke, the banking system is NOT healthy and QE (or some convoluted equivalent) is the only thing on the table.

I believe they have been keeping what's left of their powder dry waiting to see how Europe will pan out.  The writing is on the wall.  Time has almost run out, and they must perform political miracles within a few weeks.  Thier record so far on quick, honest or cooperative action has been abyssmal.  It may be more accurate to say "Time has run out."

Raoul Pal's presentation has one line that everything pivots around: "When the first major bank fails ...".  There is absolutely no question that the Fed, probably in concert with other central banks, will do everything in its power to prevent that from happening.  Graaham talks about a giagantic single move, but I think they're planing an continuing war against the "first domino".  

Technically Lehman was the first domino, which took out AIG, GM, FANNY, FREDDY GINIMAE and nearly the whole financial system with it.  Quick decisive liquidity injections just barely stopped the contagion.  Now the whole world is on an IV drip of liquidity to keep it from going into shock.

This time the world is much less healthy, and sotpping the newer bigger contagion may be impossible.

The problem is that Europe is so fragile, and they can't agree on anything.  The chances of the first domino going down without anybody jumping in to save it are fighteningly high.  So we are left with the simple question:  when it comes, can they stop it this time?

Sat, 06/02/2012 - 15:52 | Link to Comment 10044
10044's picture

dude, inflation and growth are falling (by FED's measurement)... what part of that do you not understand??

 

QE to infinity and beond

Sat, 06/02/2012 - 15:05 | Link to Comment verum quod lies
verum quod lies's picture

An opinion masquerading as financial analysis is not financial analysis. In this case an illogical opinion that runs counter to hundreds of cogent articles published on this website is just silly, especially after the markets respond to the news of future heroin injections by clearly compliant and pathologically lying central banks (and not just the Fed). Sure, supporting your analysis/opinion with quotes from central bankers that reflexively lie sure makes we want to reverse my PMs bet and pay for the “free” analysis coming from an organization that elevates their opinion to that of established oracle. At least the “oracle of Omaha” has real inside information to provide in his opinions.

Sat, 06/02/2012 - 14:44 | Link to Comment Ripped Chunk
Ripped Chunk's picture

Ain't no lie! Liquify!

The elites are really not sure if their security forces will be able to stop the murdering hordes so they will continue to print.

 

Sat, 06/02/2012 - 14:36 | Link to Comment Blue Dog
Blue Dog's picture

QE3 IS coming. Sure, the Fed denied it in the past but it's coming. Same thing with governments denying that they're going to devalue the currency. They deny it and then go ahead and do it.

They have to pretend they're not going to do it otherwise the negative effects from QE3 will happen too soon.

 

Sat, 06/02/2012 - 14:31 | Link to Comment DeadFred
DeadFred's picture

What happens on the 6th? Not FOMC so what am I missing?

Two unsupported assumptions in this analysis to point out. It's assumed the the Fed wants Obama to be re-elected or that Obama controls the Fed. It's assumed that when Big Ben says something that that something is the truth. In some reality these might even be valid.

My guess, which is worth every cent you paid for it, is that they won't announce QE in June (for a massive disappointment, front run of course) but will before the election.

Sat, 06/02/2012 - 14:32 | Link to Comment DeadFred
DeadFred's picture

dup

Sat, 06/02/2012 - 14:24 | Link to Comment RoadKill
RoadKill's picture

Actually I think Ghram is right on this one.  Of course his rationale/analysis is pathetically lacking.  So let me do his work for him and give you some reasons.  I’m sure Ghram will put these into his subscription letter and claim they are his… but…

1.        Treasury yields are at all time lows across the board and are falling rapidly even without QE.  1 month yields are 0.03%.  10 year yields are 1.47% and 30 year yields are 2.53%.  This removes all of the rationale for additional QE.  Will even lower rates really help anyone?  Is Japan doing better then Germany because their 10 year is 0.82% instead of 1.17%?  FURTHERMORE the market is currently DESPARATE for treasuries.  This means that Treasury doesn’t need Ben to monetize its debt right now.  They can sell all they want to Europeans and BRICS looking for some near-term safety and certainty that they won’t have their wealth nationalized (Argentina) or converted into toilet paper (Drachma, Pesos, Lira).

2.       Bernake needs to save some fire power in case Europe really falls apart.  Think back to last summer when everyone was convinced that BOA, Jefferies and MS were going BANKRUPT.  If Europe really falls apart this is going to become an even bigger concern then last year, and now JPM isn’t there with a fortress balance sheet to buy anybody that goes under.  Ben has already admitted that additional QE hurts the Fed’s credibility.  So he can’t do QE 3, because he may have to do a LTRO in a few months.  Buying treasuries doesn’t even provide additional liquidity.  But if things freeze up, buying corporate debt, mortgages etc.. will.

3.       Bernake can’t be seen as trying to help Obama get reelected.  Because if he does, and Romney wins, he’s going to find his post-Fed career totally dead.  If he acts impartial there is an OUTSIDE chance Romney keeps him, and if he doesn’t, at least Ben leaves on good terms.

4.       Inflation is a mixed bag right now.  Oil prices have declined some – but are still over $80.  Gold is starting to decouple from stocks.  If Bernake prints and we end up with oil over $100 and gold back at $2,000 AND EUROPE STILL FALLS APART dragging the US into recession – Bernake will be hung.

In short – the best course of action is for Ben to wait a few months and let the world see what the market looks like as it goes through Hopium withdrawl.  If nothing else he will be able to say “see what happens when I don’t act”.  Don’t get me wrong, I’m not saying he won’t EVER print – just not this summer.  As we get closer to the election where his actions won’t have time to impact the results (say September/October), assuming the markets are weaker (down another 20%) and particularly if Europe falls off a cliff and our banks are dying – then he will print, and it could be a far bigger print then QE 3.  But we are only down 10% from the peak.  No reason to panic yet.  Market fell 20% last summer and he didn’t even launch a full QE, just Twist.

Sat, 06/02/2012 - 16:42 | Link to Comment markettime
markettime's picture

I agree with Roadkill's logic, however I don't think Bernanke will sit by and let the markets crash in an election year. It won't be called QE3 but possibly some form of LTRO or swap agreements to keep the money flowing. They never really have stopped doing QE as the Fed is still printing money to meet the government obligations. I can't help but think stagflation will come into play if it hasn't already. I think by the beginning of July they will come up with a new plan and they will deny any type of money printing all the way up until they do it. It is anyone's guess as to what is going to happen. Our free market system has become dependant on some fool with a printing press. 

Sat, 06/02/2012 - 15:53 | Link to Comment DeadFred
DeadFred's picture

Your post points out one of the main pro-QE reasons, interest rates. We are in new, never seen territory on rates and it points toward deflation. I'm not normally on the deflation side of the argument, but this is a big warning light. If Ben prints now it will be explained as an aid to employment or some such but it will really be aimed at stopping a deflationary implosion. Commodities (ex PMs) are tanking, the dollar is accellerating it's rise and interest rates are dropping like a stone. Could we be at the start of a deflationary event like 2008? Nothing causes more fear in the heart of a Central Banker (this assumes they actually do have hearts).

 

Sat, 06/02/2012 - 14:31 | Link to Comment gdogus erectus
gdogus erectus's picture

Not to be an asshole but "Sorry Folks, QE 3 Ain't Coming... Even the Fed Doves Admit It" is one of the most misleading POS headlines I've read on this site.  Does this guy do simple math?  We print over $100B a month just to monetize our own debt.  God knows how many interest rate swap derivatives are created each month to manipulate treasury yields low enough to make our massive debt service pencil out.  The bankers have never stopped printing and won't until the reset comes.  Or some politician comes along and stops the extra trillion a year we spend on illegal wars.  Riiiight.

Who buys all of our debt now?  Who buys any debt now?  Add up all the top country's debt issuance Vs their tax income and you can see that China and Germany couldn't possibly be buying up every single other debtor nation's bond offerings.  The rest is all "printed" into existence.  QE3.  What a fucking farce.  They never stopped "printing".  It's all a show.  Theater.  Let this country fail.  Ooooh, diving catch to save that country!.  Hegelian Dialect.  It's all bullshit.  If "QE3" is a no show it's because they need to blame the next down leg on something.  "See what happened when we didn't QE3, little sheep?"  "Baaaaah, baaaaah, please prop it all back up!" 

What could realistically happen is that the bankers lose their grip on the planned orderly world wide decline and Europe gets out of control quickly, exposing these bastards.  Hell, there are so many people reading Zero Hedge alone that maybe there will be a pitch fork shortage.

Sat, 06/02/2012 - 15:42 | Link to Comment Matt
Matt's picture

Once a sufficient portion of the debt is held by the federal reserve, the yield won't matter, since the interest payment for one year just becomes revenue for the next.

Sat, 06/02/2012 - 14:01 | Link to Comment mp95bravo11208
mp95bravo11208's picture

It is coming.  Think logically.  Obama cannot allow Europe to fall.  To save them he has to funnel hundreds of billions tothem again in secret currency swaps that he must print money for.  The Federal Reserve alone can do this and the eelction is in November.

Logically the Fed will do QE3, 4 even if under the table again as their man Obama must be re-elected in order for them to bring about total global crisis while Obama is still in charge. 

Sat, 06/02/2012 - 13:58 | Link to Comment Random XYZ
Random XYZ's picture

I don't believe there is a single bloc  of bankers that run everything. Rather, there are competing blocs of bankers and the nations they are attached to. One such faction would be the Anglo-American central banks and private banks; another would be the Chinese banks; a third would be the Russians; and a fourth would be Europe.

When things are all peachy and profitable, cooperation happens to the extent that everyone thinks the banks are all in with each other because cooperation is paying them hand over fist. But when things go bad, when debt becomes untenable even when throwiing more debt at it leading to the great debt deleveraging, then human nature will take over: the elite will fracture among themselves and it will become every institution for itself and then every man for himself. In fact, the fracturing process has already begun.

The common man who participates in a bank run is showing that he is for himself and no longer a willing participant. The common bank that refuses to lend to other banks is showing that it is for itself and no longer a willing participant. And so on up the line to the really big institutions. The taxpayers will pay ... until they won't, that day is not that far off, but it must be staved off at all costs yet there will come a time to pay the piper. When? I can't tell you that...

So back to the original question of the next QE: recall that the previous QE's have had fairly short lives, the next one will be no better at best and the big boys know that. At some point, the Anglo-American banks will be forced to defend the dollar in order to preserve their power, they can't afford to let hyperinflation get in the way because they are holding so much debt as assets on their balance sheets. When those debts inflate away to nothing, the value of those debts as assets on the balance sheet will also inflate away to nothing, not to mention the underlying assets themselves will crash when no one can afford to buy them. What happens to a bank's bottom line then? They have to recapitalize, but with what?

I'm guaranteed to be wrong on the timing ... but my forecast is that interest rates must rise sooner than anyone expects, perhaps by the end of the year. There are already trade agreements to be executed without the dollar. Who's benefiting from this? Certainly not the Anglo-American banks. There is rumor of both China and Russia offering gold-backed currencies: I discount China, they are in for their own hard landing and it will not be pretty over there, but Russia is capable. The Anglo-American banks are definitely not benefiting from this one either. If they did it, the Anglo-American banking cartel would lose its power unless the dollar is defended. Capital must be attracted to the dollar. When the picture changes and ZIRP can't hold on to dollars, interest rates must rise. What does that mean for the rest of us? Think 1930's ... the depths of the Great Depression ... perhaps worse...

Sat, 06/02/2012 - 15:42 | Link to Comment Gabriel420jr.
Gabriel420jr.'s picture

"So back to the original question of the next QE: recall that the previous QE's have had fairly short lives, the next one will be no better at best and the big boys know that. At some point, the Anglo-American banks will be forced to defend the dollar in order to preserve their power, they can't afford to let hyperinflation get in the way because they are holding so much debt as assets on their balance sheets. When those debts inflate away to nothing, the value of those debts as assets on the balance sheet will also inflate away to nothing, not to mention the underlying assets themselves will crash when no one can afford to buy them. What happens to a bank's bottom line then? They have to recapitalize, but with what?"

You could be right - but i doubt it. I think the people at the top have been planning to collapse the dollar. As evil as that sounds they need the problem, panic, solution model to run course in order to get their global currency. I don't know who specifically wants a global currency, my best guess is the anglo american banking bloc are the ones pushing for it but ofcourse they can easily fracture among themseleves and see their perfect ponzi scheme fall before they realize their endgame. Personally I doubt the world population can stomach a world currency just because atleast with seperate fiat currencies there is an appearance of competition theoretically pressuring the nations to manage their budgets. But ofcourse that is an illusion.

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Sat, 06/02/2012 - 13:41 | Link to Comment pissing_excellence
pissing_excellence's picture

The spigot is on...never stopped.

Next to Mercury and Cadmium is...............

http://youtu.be/RurWlosmg-U

Sat, 06/02/2012 - 13:35 | Link to Comment markar
markar's picture

QE 1 & 2 spiked interest rates, not lowered them. With the debt approaching $16 tr and the economy tanking, they can't afford that happening again. So what do they do this time?

Sat, 06/02/2012 - 13:25 | Link to Comment besnook
besnook's picture

this assertion is plain stupid. the economic crisis has always been about saving the banks. printing saves the banks. printing will be done. hasn't he been listening to the euro shakedown in progress.

in fact, the banks are beginning to realize that the only way out is a mega print. they just can't figure out how to get away with it so it probably won't happen until after the election but that doesn't mean there won't be another mini print before then.

Sat, 06/02/2012 - 13:07 | Link to Comment malikai
malikai's picture

Thanks for posting this. Now I will consider the next QE to be a near certainty on the 6th.

Sat, 06/02/2012 - 13:19 | Link to Comment somecallmetimmah
somecallmetimmah's picture

Damn straight.  Half the country out there is Krugmanites, who advocate QE on steoids.

If PMs retreat at all before th 6th, I'm buying.

Sat, 06/02/2012 - 03:48 | Link to Comment dolly madison
dolly madison's picture

The majority of the people don't even know what QE is.  QE would not keep Obama from being elected.

Fri, 06/01/2012 - 22:30 | Link to Comment blindman
blindman's picture

qe is stealing. there will be no more?
that is funny.

Fri, 06/01/2012 - 19:44 | Link to Comment SwingForce
SwingForce's picture

As I said at the close of the last record, please try to listen to both sides at one meeting.

Or something like that. NOBODY BUT BERNANKE  IS THE FED. THOSE OTHER "REGIONAL GUVNORS" ARE ALL SHILLS.

http://www.youtube.com/watch?v=2UIptI2rcjg

 

 ooops, I meant this http://www.youtube.com/watch?v=3eHue2jSw3s

Fri, 06/01/2012 - 18:56 | Link to Comment chiropractor
chiropractor's picture

Wow.  What a day and to think that this happened on a Friday so that all weekend I can digest and predict what is going to happen Sunday night and next week.  My two cents:  The rise in the gold price today is telling me that investors think a significant stimulus of some form is coming.  A continuing rise in the price of gold for the next month would suggest to me that the odds are increasing of another LTRO by the ECB and QE by the Fed.   Some European politicians would like to shift the problem to the European taxpayers by creating Euro Bonds.  In the US, politicians throwing money at the problem will be indicated by, and how high, there will be in an increase in the debt ceiling.  The greater our debt and the greater our bond and asset buying (QE) by the Fed, the bigger the inflation problem will be down the road.   My prediction/guess:  Greece has already printed up the new drachma currency (a while back and the CIA knew it from the get-go) and the currency will be the most modern (latest counterfeiting spoilers) and the most beautiful of any currency in the world, full of history and things to make a Greek proud.  The Greek ATM’s will spit start spitting it out when the banks and the new Greek government get on board and no more money is given to the Greek government.  A nationalizing of the Greek banks is a good possibility, or a direct investment by the Greece government of part ownership of the banks.  Spain is next but a much bigger problem.  Spain has probably printed up its future currency as well as Italy “just in case” which if (again my guess) that is the case, the CIA already knows about that too.  Also my guess:  If the CIA knows about the future currencies of Greece, Spain, and Italy, as well as Portugal and France having it on the “drawing board”, and I would guess probably Germany is way ahead of the curve on it also, but our big banks knew about all of this before the intelligence agencies.  “So what?” you may ask.  Well, what happens when politicians are in trouble and countries have their own fiat currency?   What's ahead for the new drachma?  Nothing but lies, deception, promises, and eventual devaluation.   Something to put in your thinking cap:  Why would there be a Greekafornia.  Terry Ash

Fri, 06/01/2012 - 20:14 | Link to Comment SwingForce
SwingForce's picture

BTW, what are you on?

Sat, 06/02/2012 - 13:21 | Link to Comment somecallmetimmah
somecallmetimmah's picture

Been smokin' "bath salts", apparently...

Fri, 06/01/2012 - 20:14 | Link to Comment SwingForce
SwingForce's picture

You forgot 1 thing- Why would there be another LTRO if the stuff that gets LTRO'd defaultz? And its not just another merry day in thae park when the Greeks go out to stroll, they owe alot of people alot of money. Hey, I understand their problen=ms, and I even agree with Tsipras ( at least he is considering repayment). This is all DON'T PAY THE DEBT, and in that circumstance, how does gold become worth more???

Fri, 06/01/2012 - 18:07 | Link to Comment Stuck on Zero
Stuck on Zero's picture

It won't be called Quantitative Easing, it will be called assistance for Europe.  And, of yes, it won't cost us anything.  They'll pay us back.

 

Fri, 06/01/2012 - 18:05 | Link to Comment John Wilmot
John Wilmot's picture

Wrong on all counts.

Mr. Bernanke: “Going forward, we’ll have to continue to make judgments about whether additional steps are warranted, but as we do so, we have to keep in mind that we do have a dual mandate, that we do have to worry about both the rate of growth but also the inflation rate…The trade-offs are getting — are getting less attractive at this point. Inflation has gotten higher. Inflation expectations are a bit higher. It’s not clear that we can get substantial improvements in payrolls without some additional inflation risk. And in my view, if we’re going to have success in creating a long-run, sustainable recovery with lots of job growth, we’ve got to keep inflation under control. So we’ve got to look at both of those — both parts of the mandate as we — as we choose policy”

Right, because if history teaches us anything, it's thatr central banks just absolutely hate inflation. It's not as if their very purpose for existing is to facilitate inflation for the benefit of the cartel banks and the State. /sarc ...it's as simple as this, as long as the survival of the cartel banks and of the welfare-warfare State depends on inflation, the central bank will inflate, damn the consequences for the tax-cattle, er, I mean citizens.

Fed's Dudley: If Growth Continues, More Fed Stimulus Unwarranted

Hint: growth will not continue. Europe and the US are entering the second downleg of the depression, and China's massive debt-fueled malinvestment central planning nightmare bubble is starting to burst.

This is an election year. If the Fed announces QE 3 now, Obama is done.

Obama is not in charge, the banking cartel is in charge, and do you think the banking cartel cares whether Obama or Romney is in the White House? Banking shill puppet politicians are a dime a dozen.

N.B. The cost of banking shill puppet politicians has been rising recently (see: Obama and Romney's campaign contributions from cartel banks) - I blame speculators myself.  : /

With that in mind, Europe will be collapsing as no one (not the ECB, not the IMF, not the ESM, and not even the Fed) will be stepping in to prop it up. The reason? NONE of these entities have the funds (Europe’s banking system is $46 trillion in size) to do so (bank runs are pushing leverage levels even higher in Spain, Greece and elsewhere).

If you mean that the EU economy will be collapsing, I agree. If you mean the TBTF banks or the EU political structure will be collapsing, then no, that's not going to happen. They will use a combination of debt mutualization (bailouts via EFSF e.g.) and inflation (ECB and/or other central banks) to prevent the collapse of the TBTF or the glorious New Soviet, er, I mean European Union.

Moreover, the political environments for their organizations (the US for the Fed and IMF and Germany for the ECB and ESM) will not permit a massive intervention. If the Fed cranks up the printing press, Obama loses any hope of re-election. If the ECB cranks up the printing press, Germany walks. End of story.

The American masses have two choices: banker shill A or banker shill B - same as it ever was. If more QE happens, and there is serious public outrage (that's assuming of course that Dancing With the Stars wasn't on that night), the masses will do what their rulers rely on them to do: throw out the bums!...and install the other bums who work for the same special interests and have all the same policies. This is how politics in America works, have you not been paying attention? This is why the State can get away with doing highly unpopular things and still maintain the pretense of representative government.

As for Germany, they won't leave the EMU or the EU. The various ruling parties of Europe are all on board with the agenda for (further) European integration. The present crisis was expected by the architects of the EU. The crisis is to be exploited to justify further integration. Hegelian dialectic - oldest trick in the book. The crisis has to be allowed to get bad enough to scare the masses into submission. And anyway, as with the US, the masses have no choice. They can throw the bums out only to install new identical bums.

Fri, 06/01/2012 - 18:41 | Link to Comment XitSam
XitSam's picture

Agreed. Plus Graham assumes that the public statements Bernanke makes are the truth. He just accepts it at face value! Good grief!

Fri, 06/01/2012 - 18:19 | Link to Comment Pejorative Requiem
Pejorative Requiem's picture

I was gonna say that! You didn't leave much out......... thanks for spoiling my keyboard time. What's on TV tonight......

Fri, 06/01/2012 - 17:53 | Link to Comment SheepDog-One
SheepDog-One's picture

People can dream on about QE3....fund holders pensioners and 401K Bathrobe Brigades are about to get raped.

Fri, 06/01/2012 - 17:36 | Link to Comment The Swedish Chef
The Swedish Chef's picture

I thought hyperinflation was a sure thing in these ads a couple of months ago... Good hedging though. I ain´t buying your news letter anyway.

Fri, 06/01/2012 - 17:24 | Link to Comment crawldaddy
crawldaddy's picture

as for the elections, Obama was given one great gift, its was romney.  The man is a living douchebag.  There isnt even an option at this point. 

Fri, 06/01/2012 - 17:45 | Link to Comment Ponzified Plebe
Ponzified Plebe's picture

"The man is a living douchebag"

Well, so are most of the elites. Romney has all the upside of Obama in their eyes - he'll shill for the banks, keep up the wars of choice for the military industrial complex, continue to advance the police state; and he has none of the downside - being a minority, the pesky question of country of origin, the problem of credibility since he has completely reversed on nearly his entire '08 campaign platform. Romney is a blue-blood through and through, and every American knows it, we know he is going to serve corporate interests over all other - and a good deal of the populace will go for him simply because he isn't Obama.

I think Graham has his head halfway up his ass on this, if not the whole way - the elites want Romney, they don't care if QE3 kills Obama's credibility. They are going to kill the dollar, because it suits their agendas to do so, and they know that no matter who is in office, they'll have him by the short hairs. The FED has no qualm gutting the whole country to serve the interests of the very few at the top that they actually care about.

Fri, 06/01/2012 - 17:20 | Link to Comment MrBoompi
MrBoompi's picture

There's never going to be another QE until there is.  99.9999% of us are always the last ones to find out.

If the choice is between printing and the gallows, what would you choose?

 

 

Fri, 06/01/2012 - 17:43 | Link to Comment Born-Again Bankster
Born-Again Bankster's picture

They won't call it QE3, but a central planning related monetary event is about as certain as it comes.  With regards to Obama, he will be heralded for saving the economy as the DOW surges to new highs around November.  

But silver and gold may not ever see these lows again.  Stock up, folks.

Fri, 06/01/2012 - 17:17 | Link to Comment falak pema
falak pema's picture

So its a choice between a rock and a hard place for O'bammy and the FED. If the world economy melts down they'll have egg on their face; big time!

Fri, 06/01/2012 - 17:14 | Link to Comment Widowmaker
Widowmaker's picture

QE3 before July -- guaranfukinteed.

When does a banker ever tell the fucking truth?

Never.

Fri, 06/01/2012 - 17:54 | Link to Comment FlyoverCountryS...
FlyoverCountrySchmuck's picture

Obama cannot give ANOTHER $4 Trillion Dollars to his banker buddy cronies, and have any hope at all to win in November.

Romney isn't McCain, and it ain't 2008, anymore.

Fri, 06/01/2012 - 18:18 | Link to Comment dwdollar
dwdollar's picture

Did you forget the '/sarc'?

Fri, 06/01/2012 - 17:18 | Link to Comment stocktivity
stocktivity's picture

They will do QE 3 and probably 4 and 5

Fri, 06/01/2012 - 17:50 | Link to Comment ATM
ATM's picture

Not probably - guaranteed QE 4,5,6,7,8,9....... 

That's all they have and that's all they will do. That's all anyone has really ever done when givent eh choice between "austerity" and money printing. Printing is easy and it is a form of austerity anyways. It's really just a symantics game. But with printing the political class can blame, deflect and point fingers at everyone but themselves. They will demonize groups, merchants, wealth holder, hoarders, speculators, etc.

We've seen it before and dumbshits who know nothing bu the price of a pack of cigs and a loaf of Wonderbread will agree. Must be those nebulous speculators! Get 'em!

Fri, 06/01/2012 - 17:06 | Link to Comment W10321303
W10321303's picture

All of those aircraft carriers and nukes......don't mean SHIT!

The dead-from-the-shoulders-up crowd (Uof Chicago, Stanford, Harvard Business, Yale, etc. academic weasels) will never understand that thier power is gone!

Fri, 06/01/2012 - 17:00 | Link to Comment JustObserving
JustObserving's picture

US debt and unfunded liabilities increase by $22.5 billion a day.  Now with the slow down in the economy,the debt and unfunded liabilities increase by an additional billion or two a day.

Where is that money going to come from?  The Fed has no choice but to provide stimulus to a moribund economy. And soon.

Fri, 06/01/2012 - 17:27 | Link to Comment crawldaddy
crawldaddy's picture

QE is not stimulus, pretty sure that has been proven by now.

Fri, 06/01/2012 - 17:23 | Link to Comment Winston Churchill
Winston Churchill's picture

Do not think so.

The dollar would be replaced as the reserve currency

before the election instead of after.

Its coming anyway.The US has been explicity warned in public,

and I'm sure much more strongly in private.

Pax Americana is over, just a matter of  when.

Bernankes' choice.

Damned if you do,damned if you don't.

 

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