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Ben Wins - Who Loses?
The most significant market adjustment since Bernanke used the "Unlimited" word is not in stocks, bonds or PMs. It's in inflation expectations. Have a look at this chart. Focus on the incredible spike in the past 24-hours.
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The sick part of this is that if Bernanke saw this graph, he would cry with tears of happiness. This is exactly what he was praying for. Ben thinks that inflation is a good thing. That it will cause demand to be pulled forward as people realize that things are going to cost more tomorrow than they do today.
I suspect Ben is right. Higher inflation expectations in the US will filter around the globe. Post the extraordinary steps Ben took yesterday, people will be stocking up on "stuff". Things like rice, flour, cooking oil, soy, wheat and sugar. If you can eat it, buy it now. It will be more expensive in a month. While your at it, fill up the gas tank, the price is going up next week and every week for the next few months.
Ben doesn't care about that stuff. He ignores this altogether. Maybe he's right, after all, food and energy are really not so important to the 7Bn folks who happen to be passing through this decade, right?
Some day the history books will study this period of time and ponder how so many people gave up control of key elements in their lives without ever having a say in the outcome. How could one person have gotten so powerful? Somehow we have anointed Ben as the new God. An omnipotent decider that is nether elected or whose power is somehow checked. Don't think for a minute that he's one of those benevolent gods, he's not.
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I don't know. But if I had a say in it, I'd say: Get on the phone and call everyone you love and ask them if they'd have a family dinner meeting and have a talk about the apparent truth, that very difficult days are ahead of us. Then, enlarge the group to include associates and neighbors, church members and those whom you respect and have a larger meeting of the minds.
To know this is coming is very frightening. I believe it will go beyond this and there isn't much time. If soldiers /constant presence of law enforcement end up in the streets, it is too late.
Majority rules because the majority has been right the majority of the time.
What kind of a world has it become when Robert Mugabe makes sense?
Can you get me into Switzerland with you when you go back; as your personal assistant? I'm a pretty good trader and very organized.
plus I love Sig Sauer rifles and Swiss watches
Bruce,
Please!
Ben is not 'so powerful' unless you are a pundit and need to sell a story, which you are not. Do you truly believe that this poor bastard has any idea of what he is doing: he's like five year old lost in a forest. How can we empower him? Everyone knows he is a fool and perhaps a corrupt fool------I am really tired of hearing and reading about how 'powerful' politicians and economists are when they are among the dumbest and most rigid people on the planet.
The street is more powerful than the Fed or the Gov't.
The street just doesn't know its own strength because it empowers the wrong people.
Thanks for a nice try, but Ben did not win---down in infamy----nothing else om
Of course this might be a bluff by Ben to scare people to rush out and spend their money on anything. That seems to be the prevailing theme.
This might be a ploy by Apple to get people to rush out and buy the new I phone!
Somewhere I heard 30 million iPhone 5s already ordered. I don't get it in so many ways.
I have never owned or bought an Apple product and never will.
bruce it is not rational thought that makes ben a god it is a religous mania i call it bank religion the certain belief that if banks fail we are doomed its a false religion but its ours
Ben the Maginificient!
lol....
[laughing, tears of sadness streaming down my cheeks]
"Some day the history books will study this period of time and ponder how so many people gave up control of key elements in their lives without ever having a say in the outcome."
Pot, meet Kettle.
Reading this from Krasting, a retired banker, can be summarized as pure horse shit.
Decimating every living thing is the only game in town. It just so happens (no one sees it coming) that 99 out of 100 people have the same thing in common, and it's their deaths by manufactured misery through a false ransom payable by a fabrication of corrupt man. Too bad survival of the fittest isn't quantified in fuckup-fiat.
And here you are a registered member of a site founded by an ex-banker and HF bond analyst, who was also convicted of insider trading. The same goes for those who Greened you.
What color is your pot? Do you not believe in redemption? Is one's totality of character to be judged by a single act? Have you lived such a pure and unadulterated life yourself?
Let he who is without sin......
Sound money = banks are not caught in the business' enriched by fraud.
It is complete madness to have this much power vested in an unelected and utterly unaccountable entity - it is truly the 4th arm of the US government and it is time to reel this beast in.
Wait for it...
MISSION ACCOMPLISHED!
Ben just wants to keep his job, so a short term (2-3 months) goose on the markets is good for Obama. Then things will likly crash giving the statist yet another self-induced crisis from which to rescue the masses. Most likely John Taylor would replace him if Obama loses, with a possibility of the retiring Ron Paul at treasury. (Now that's an example of real hope) Its the only reasonable explanation for acting now rather than waiting for a significant pullback in the markets as I and most at ZH believed would be the case.
Ben's QE3 is to lure people into risky investments by hyper-inflation so later he can quickly raise interest rate in the name of combatig inflation, of course, average people are the losers.
BK, in all seriousness are you thinking about relocating at all? I will probably leave the States if Obama is re-elected. I speak English and Swedish and have been learning German. I am really wondering what you would advise for the younger generation.
Our unelected Central Tautologist, whose models prove that his models work, has tried yesterday to channel Franklin Raines, resurrect Countrywide Financial, and assume the role previously held in the private sector by AIG of outlawing risk and making any and all allocations of capital somehow wise and efficient.
How successful might this new Hail Marriner Pass be?
From the BLS' own website come these statistics:
Total NF Payroll November 2008 (start of QE I): 135,300,000
Total NF Payroll Today: 133,040,000
"We lose jobs on every QE, but make up for it in volume"
Putting myself for a moment into the mind of a registered Fedophile such as CNBC's Steve Liesman, I think I have found the hidden gem. It's the "NF", or non-farm element. It's not inclusive enough. Apparently Bernanke includes as working farmers in his self-proclaimed "success" all of those Americans facing unemployment and rocketing prices by starting backyard gardens. He might even include those who peddle their SNAP cards for cash, as they clearly add as much value to society as MBS salesmen.
As bad as it is now, one wonders how Bernanke will ever extract himself after cornering the risk and debt market? Julian Assange, in his indictable Swedish Moment, found it easier to withdraw his stimulus than Bernanke will have it.
(Had to take one more dig)
At bed time every night Ben lays in bed and has two cookies and warm milk. Then Timmy jerks him off, and they both fall into a deep sleep.
I'm picturing Satan and Chris on South Park. Not sure who would fill the role of Saddam.
600billion/300million people = we're each responsible for $2,000 of QE3
Bernanke just taxed ordinary workers, savers, and people on UI an additional 2k in a recession/depression.
I think the short-term loser is joe sixpack and his grandma, and the long-term loser is the FED (they're losing more credibility with each printed dollar)
Exactly. The more of you that get this the better. Congress can't do any fiscal revenue increases or bailouts or spending cuts. The only one that can do something anything is the Fed and avoid political backlash.
Congress will blame the fed when it goes bad but for the sheep it'll be too late to do anything. And the politicians will spin their do nothing records. You will reelect them. Ben is taking one for Congress.
Don't you get it!?
Failed banks get zero percent money and people with good to excellent credit pay between 5 and 20 percent on loans. Banks are parasites and the people ofthe world are hosts.
I keep on asking myself "what's the fallback position" if the FED realizes it's wrong. How do they back out of trillions of dollars of this stuff What will they have accomplished if after 12months nothing much changed.
The fall back is collapse.
Nope, war.
Watch your sparks.
Why do you think the Fed will ever realize they are wrong? The academics in the Fed will burn the whole country to the ground before they consider that their life's work was wrong. Even then, they will write in their memoirs that their actions would have worked if followed through. Same as the first Great Depression.
The only solution is revolution.
I can't give my opinion of Ben for fear of being banned from ZH for life.
Allow me a polite, if inadequate assist:
We haven't hanged a Jew for treason since the Rosenbergs.
I hear Nuremberg is available.
Bernanke has just sent the plane into a nose dive to avoid stall speed and he will no doubt eject before the rest of us crash and burn. For some reason, I think those history books will also say no one, absolutely no one, thought QE infinity was a bad idea at the time.
Fuck you tears of happiness!!!1
Karma's a bitch.
Plenty of time to reflect on as we embark on our own 'Trail of tears".
Things are looking better.
The Hindenburg just crashed and burned on the deck of the Titanic.
QE 3 http://youtu.be/XiId0z5EKtk live video of Da Bernank flying the QE Infinity
The good news is Ben will finally have the answers he searched for with this science fair project.
Unfortunately for us, I think he will blame the data before he blames his models.
Ben did not win. He just lost his last chance to redeem the Fed and return it to its mandates.
Infinite QE? There is no turning back now...
The Second American Revolution - unfolding now in a neighborhood near you.
Ben did it to keep his job, pure and simple. He already knows that Romney will not reappoint him, because Romney said so. Central Banks have the power to make or brerak political leaders. So he has gone all-in to reelect Obama.
Bernanke is an employee, and like a good employee, he does what he's told and is compensated for.
Obama is a figurehead, and if his employer wants to replace him with Romney, this is what will happen.
Romney may promise anything he likes, but if /when he gets the figurehead job, he will revert to reading his employer's daily script, just like Obama, and all the others before him did.
whatever is in the script's next act, is on the way, bar a massive uprising, or an unpredictable act of Nature that foils their plans.
I'd put my bets on Nature before I would an amrkn revolt. YMMV.
$190 oil will not re elect Obama, Ben just finished him.
Bruce:
But Obama-care and the EPA restrictions will damp down on any growth, even world-wide, cf: the iron-ore debacle following e.g. Chesapeke collapse.
All commin' down, and the Bernank knows this.
then again, wtf do I know?
- Ned
Expectations don't cause inflation, a shortage of goods relative to funds to pay for them ... causes inflation.
There is no such thing as a shortage of goods in America, there are not enough customers with money. QE is for the asset managers who can cash the Bernanke blank check. Customers have no QE, they cannot meet the prices set by the managers. Regardless of expectations, they are out in the cold.
Without customers the asset managers are stranded. If they don't extend credit there is effectively no QE.
The real losers are home-owners whose equity is vanishing fast. Their lenders have a market for underwater paper.
As for inflation, watch what happens when gas prices rise above $4 per gallon. (I can't wait.)
This is why US stocks are terrifying--only the old and wealthy own them. When it's time to sell, who is the buyer and what is the bid? If joe six pack is the buyer, the bid will be $.01, even for Apple.
Gold has a similar problem, but it will benefit from dollar destruction and is easy barter.
I actually think food producing land (or long term food storage if you can't buy land) is the best investment. If you have that, I'd then put 20% in gold and 70% in foreign stocks, and maybe 10% in a few handpicked US stocks.
Once again, beware Agenda 21 and sustainable development. Property owners will be told what they can and cannot do on their own land by unaccountable Imperial agencies.
"Too bad, bub, that there's a Delta Smelt, no water for you. And, is that a spotted owl? Come with me, citizen, we have a nice urban concentration zone for you. Pay no attention to the Monsanto van pulling up at your surrendered property, sir."
If you're going to buy land, don't do it in the USSA. Lest you learn what the word Kulak means.
We Are Now One Year Away From Global Riots, Complex Systems Theorists Say
http://motherboard.vice.com/2012/9/10/we-are-now-one-year-and-counting-f...
Today, the food price index is hovering around 213, where it has stayed for months—just beyond the tip of the identified threshold. Low corn yield in the U.S., the world’s most important producer, has helped keep prices high.
“Recent droughts in the mid-western United States threaten to cause global catastrophe,” Yaneer Bar-Yam, one of the authors of the report, recently told Al Jazeera. “When people are unable to feed themselves and their families, widespread social disruption occurs. We are on the verge of another crisis, the third in five years, and likely to be the worst yet, capable of causing new food riots and turmoil on a par with the Arab Spring.”
Looks like Ben's QE3 will make this a reality
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heh, so much for that super-duper drought resistant GMO-Korn, which is at least 85% of all corn grown in amrka.
Yankee High Fructose Corn Syrup withdrawals in 3. . .2. . . 1. . .
That will teach them for burning embassies.
Just loaded up on 10 super pails
Fuck you, bernake, I do not want a shitty house.