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Putting It Into Perspective: One Week Of QE 3 In Minimum Wage Job Terms

Tyler Durden's picture





 

By now everyone knows that as part of QEternity, Uncle Ben is currently monetizing $40 billion in MBS per month, a number which as we first forecast hours after its announcement and which everyone is now piling on to reaffirm, will rise to $85 billion in outright, unsterilized monetization beginning January 1, 2013 (as anything less would be seen as impllicit tightening in a market which now needs $85 billion in Fed Flow monthly simply not to collapse). This is fungible money which is going solely to benefit the banks, whose reserves with the Fed swell, and which proceeds can be used for virtually any purpose - from buying MBS (which they are doing) to 300x P/E stocks like AMZN - but not to be lent out to those desperately seeking loans? Why: one simple reason - the banks are already mired in legacy litigation from loans made during the last housing bubble (just see the hundreds of mortgage-related lawsuits Bank of Countrywide Lynch is a defendant in, and the just announced $1 billion lawsuit against Bank of America by the US and you will get a sense of how bad it is) and the last thing they need is a repeat of that. And while the Fed has only one monetary easing pathway, which always goes through the banks, we wish to demonstrate to our readers what, in a thought experiment ignoring all the obvious practical considerations, the equivalent benefit to the general population would be if instead of being held by the banks and used to make the rich even richer, this money would bypass the banking syndicate and go straight to the US job seeker...

For perspective purposes, below is a crate supporting $100MM in cash.

The graphic below then shows how many minimum wage jobs this $100 million could fund (labor supply and demand and other "practical" stuff aside). In short, it takes 3500 minimum wage American workers one year to make $100 million.

So how many minimum wage jobs could one week, forget one month, of the current $40 billion in QE 3, prefund?

This much.

And this is just one WEEK of QE 3.

To visualize how many jobs the Fed could fund in one year starting with its outright monetization of $85 billion/month in January, in one full year, take all the groups of people shown above, and multiply by 100!

And this is why America is not enamored with the Fed or with its bankers...

graphic courtesy of Demonocracy

 


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Wed, 10/24/2012 - 12:14 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

King Dollar!

Wed, 10/24/2012 - 12:17 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Well, there sure is a lot of them out there.  Gonna be fun when they all come rushing back eh Mr. Hendrix?

Hedge accordingly.

Wed, 10/24/2012 - 12:29 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

Time's a coming that gold will jump astronomically.  Maybe the US$ will be King for a while, and all else will go down (deflation, as people slam the brakes on spending and the banks fon't lend), but the deficit spending and Ctrl-P will ensure that GOLD will prevail.

As LawsofPhysics just above says: Hedge accordingly.

Wed, 10/24/2012 - 13:17 | Link to Comment MillionDollarBogus_
MillionDollarBogus_'s picture

When Bernanke says he wants to create jobs, is he referring to the banking sector, and nothing else..??

Bush sent all taxpayers a treasury check to help goose the economy. 

Bernanke should start doing the same. 

Wed, 10/24/2012 - 13:22 | Link to Comment SilverDOG
SilverDOG's picture

MillionDollarBogus_

 

I'll take silver, you can have more paper.

Wed, 10/24/2012 - 14:08 | Link to Comment Arcturus
Arcturus's picture

you need the paper to get the silver. Unless of course you are both a miner and a refiner.

Wed, 10/24/2012 - 14:15 | Link to Comment Dalago
Dalago's picture

lock and load baby!

Wed, 10/24/2012 - 19:15 | Link to Comment 3rdgrader
3rdgrader's picture

Bernanke is God. I love him for stealing all of my money and giving it to those rich cock suckers. I hope he starts printing $1,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000 every minute and starts giving it to all his rich friends to play with. God bless Bernanke, oops, I mean God bless God.

Instead of saying that he is creating jobs, why doesn't he just tell the truth, that he's stealing $10,000 per month from every man, woman and child on the planet?

The guy is more fucked up than Charles Manson

Wed, 10/24/2012 - 18:39 | Link to Comment dhengineer
dhengineer's picture

I remember when they sent those checks, they implored people to spend it, not to save it, not to buy PM with it.  What did I do?  I immediately deposited it in my savings account.  A week later, I wired the money out of that account to a silver dealer, and bought silver with the full amount...

I feel so naughty...

Wed, 10/24/2012 - 12:45 | Link to Comment vast-dom
vast-dom's picture

please copy paste this article and your comments directly to The Federal Reserve Consumer Help:

ConsumerHelp@federalreserve.gov 

Wed, 10/24/2012 - 19:05 | Link to Comment 3rdgrader
3rdgrader's picture

Nobody ever reads any of it because they don't give a flying fuck, but go ahead and send em a line or two lol

Wed, 10/24/2012 - 14:13 | Link to Comment Glitterbug
Glitterbug's picture

At $85 Billion a month, the fed could print enough in just 4 months to pay Germany in genuine US$ notes for their Gold held in Fort Knox. And the same for all the other nut-jobs who have stored their Gold in the USA for "safe-keeping".  Imagine if the Fed printed money and paid off all the Gold the USA holds in escrow for other countries in one fell swoop!

OK, so the Gold may not really be there, or if it is, it has been lent out or rehypothecated. So this would be a way out of the mess.

Imagine the scramble as those countries then try to buy back their position in the Golden stakes to fortify their central bank reserves!  Is that unethical? Maybe, but no more so than what Nixon did when he reneged on the original Gold/Dollar link.

Wed, 10/24/2012 - 12:29 | Link to Comment Atlasshruggedme
Atlasshruggedme's picture

I don't want a min wage job... do you? Lets do a chart of the Avg Income (50k?)

Wed, 10/24/2012 - 12:46 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

50k * 1 million is $50 billion, and Bennie may be purchasing about $80 billion/month of MBS, which is an annual rate of about $1 trillion.  That $1 trillion could be used to employ 15 million people @50k/year.

Wed, 10/24/2012 - 12:47 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Bam!  +1000, this isn't about jobs, it is about power and control.  Always has been.

Wed, 10/24/2012 - 13:05 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

 

 

I must have miscalculated somewhere. $ 1 trillion / 50k = 20 million jobs @ 50k/yr.

 

Minimum wage employees earn about $15k/year.

$1 trillion / 15k = 66.666 million jobs @ 15k/year. Chairsatan indeed...

Wed, 10/24/2012 - 13:26 | Link to Comment worbsid
worbsid's picture

I was wondering how Romney was going to create 12 million good paying jobs and now I know.  His new FED chief will simply give the money to Octomom and others like her and call it jobs.  Welfare goes down as he promised and jobs go up.  Bravo ...

Wed, 10/24/2012 - 14:57 | Link to Comment hwwesq3
hwwesq3's picture

The job that Octomom and others like her will have is called "a consumer."

And the money will be spent, instead of disappearing into the Cayman Islands.

Wed, 10/24/2012 - 19:09 | Link to Comment 3rdgrader
3rdgrader's picture

When they say they're going to create jobs, they mean the hookers are going to give the Bankers blowjobs. At least we know where our money is going. It's all going down someones...

Wed, 10/24/2012 - 16:50 | Link to Comment hawks5999
hawks5999's picture

Demonocracy refers to the graphic as representing "average wage" of about $28k/yr.

Wed, 10/24/2012 - 12:48 | Link to Comment Carp Flounderson
Carp Flounderson's picture

Better math there... thank you.  original article has massive fail on stock vs flow comparisons.

Wed, 10/24/2012 - 13:53 | Link to Comment ydderf1950
ydderf1950's picture

15 million people doing what?

Wed, 10/24/2012 - 14:11 | Link to Comment hijoepoota
hijoepoota's picture

15 million people jacking in San Diego. According to the gang also known as Bernakits, printing money will solve all our problems.

Wed, 10/24/2012 - 14:24 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

That's a corrected 20 million @ 50k/year. I'm not for any such plan - just replacing the pictures with numbers. 

Wed, 10/24/2012 - 14:50 | Link to Comment dugorama
dugorama's picture

rebuilding the bridges in minnesota?  repaving the streets in NYC?  rebuidling all of the third world infrastructure in greater NYC, for that matter.  I don't care if you build a money losing high speed rail linke between Boston and DC or SF and LA or both - it's all better than giving it to Goldman Sachs.  We, the people, end up with something tangible and they, the unemployed, retain or gain some job skills.  Hell, just send everybody in the whole country a check for $30k, but for gawd's sake quit teh wealth transfer from me to Goldman Sachs.

Wed, 10/24/2012 - 15:29 | Link to Comment LawsofPhysics
LawsofPhysics's picture

energy is the limiting factor and available energy and energy output by the current providers has flatlined.  This is the issue no one is talking about.  No energy, no eCONomy, period.

Wed, 10/24/2012 - 18:46 | Link to Comment dhengineer
dhengineer's picture

There are approximately 150 million taxpayers in the country.  You could send each taxpayer a check for 5k to offset the taxes or to pay for "health insurance".  I know my personal household economy would feel one hell of a stimulus jolt when the two of us opened the mailbox and found a check for 10k sitting there...

Wed, 10/24/2012 - 12:40 | Link to Comment insanelysane
insanelysane's picture

Govmint suing BOA for 1B should help.

Wed, 10/24/2012 - 13:02 | Link to Comment insanelysane
insanelysane's picture

TYLER,

CNBS and Bloomsbug are stuffing this story to keep the rally going.

http://www.reuters.com/article/2012/10/24/bankofamerica-brief-idUSWEN808520121024

Wed, 10/24/2012 - 13:35 | Link to Comment ebworthen
ebworthen's picture

BOA will get $2 Billion from the FED at 0.01%, pay the govmint $1 Billion, and make $250 Million lending out the first Billion at 5%-29% to their non-credit worthy customers and Fannie/Freddie, FHA, USDA borrowers.

It's like the infinity loop, just made out of manure.

Wed, 10/24/2012 - 14:48 | Link to Comment NotApplicable
NotApplicable's picture

O shit!

Wed, 10/24/2012 - 12:48 | Link to Comment fuu
fuu's picture

RAH RAH!

Wed, 10/24/2012 - 14:14 | Link to Comment Chupacabra-322
Chupacabra-322's picture

We have a criminal government with criminal elements as part of it who do not give one fat, friggin' damn about the ordinary people of the United States. Isn't that obvious by now?

This country is being brought down. That is no accident. That is the result of plotting and scheming for MONEY, POWER and CONTROL of anything that isn't nailed down, nationally and globally.

What I'm seeing is that if this keeps up, and the people of this slumbering nation ever stop watching the insipid, untruthful television news and wake up at last because what is happening all around, including to each of us individually, can no longer be ignored, then our hearts and our minds and our bodies may have to be put on the line.

And that's the bottom line, whether we like it or not.

 

Wed, 10/24/2012 - 16:59 | Link to Comment willwork4food
willwork4food's picture

Multi-national secured currency reserve credits will be the new game in town brought to you after it all goes down by those that wish to rule the world and own all its gold.

All on your favorite NFL visa debit cards. No cash allowed without federal exempt status.

Wed, 10/24/2012 - 12:17 | Link to Comment swissaustrian
swissaustrian's picture

As G. Edward Griffin says frequently, the FED is a banking cartel and its purpose is to enrich its member banks.

All the rhetoric about jobs (and price stability) is just that: a bunch of hot air.

QE is designed to recapitalize the banking system and to clean bank balance sheets of toxic assets.

Wed, 10/24/2012 - 12:23 | Link to Comment Rainman
Rainman's picture

Clearly the Fed mandate isn't jobs. The mandate is financial repression, but we already know that.

Wed, 10/24/2012 - 12:25 | Link to Comment Tango in the Blight
Tango in the Blight's picture

And thus they stack the FED's balance sheet up with all those toxic assets. When they're done they'll let the FED crumble and die, they won't care anymore.

It's way too long since we have seen the guillotines in action, their return to service is long overdue...

Wed, 10/24/2012 - 12:40 | Link to Comment Dr. Engali
Dr. Engali's picture

When it does the banks will be ready for the new global currency, and the game will start over on a grander scale.

Wed, 10/24/2012 - 12:55 | Link to Comment rustymason
rustymason's picture

"As G. Edward Griffin says frequently, the FED is a banking cartel and its purpose is to enrich its member banks. All the rhetoric about jobs (and price stability) is just that: a bunch of hot air. QE is designed to recapitalize the banking system and to clean bank balance sheets of toxic assets."

Quote of the Day! Dankesehr, swissaustrian.

Wed, 10/24/2012 - 12:16 | Link to Comment Neethgie
Neethgie's picture

Job's like cutting the grass with scissors, like in DPRK?

Wed, 10/24/2012 - 12:27 | Link to Comment babylon15
babylon15's picture

We're basically already this way in the United States.  We have mailmen and garbage men making $75,000 a year with lifetime health benefits and a pension.  Meanwhile, people getting their PhD in organic chemistry and physics are doing, on average, 3 post-docs, often forced to move to other countries to do them because there aren't even enough post-doc slots for all the PhDs being awarded.

PhD in science = 40k a year, 80 hours a week, temporary job.  Oh yeah, don't forget ~$30k in student loans on average.
Garbage man = 75k a year, 30 hours a week, permanent job.

You pick the better life.      

Wed, 10/24/2012 - 12:49 | Link to Comment helping_friendl...
helping_friendly_book's picture

$30k? I wish! Try $61k with $10k of that accumulated when I couldn't find a job with a chemical engineering degree. had to settle for working for a municipality, and thankful I have it, and send every extra dollar to pay that loan down. Interest is $5.90/day. 

Wish I would have stuck it out as a pipefitter because I would be making double what I am now and wouldn't have one nickel in debt.

The professors told me "there are so many engineers retiring in the next 10 years you will have your pick of job offers." HA! I took me 7 years to find a job where I live and travelled the country working in the mean time. All the engineers are working into their 70's because of the Dot.com and Great Recession. I could only find work about half the time because the only work I could find was project work.

We are fucked.

Moral:

Don't take on any student loan debt!. It is not dischargable, the loan will continue to collect interest until in is paid.

The lender can garnish YOUR SOCIAL SECURITY BENEFITS to pay your student loan.

At the rate I'm going it will take me 27 years to pay this off.

Become a drug dealer instead. It much more profitable and you don't pay taxes.

Wed, 10/24/2012 - 12:57 | Link to Comment insanelysane
insanelysane's picture

I feel for you but you are correct.  I have been telling my kids to become plumbers or electricians and if they really have to, so called "public servants."

Wed, 10/24/2012 - 13:17 | Link to Comment helping_friendl...
helping_friendly_book's picture

Good advice!

I did school all on my own. No help from anyone except the banks. Now I see why. If I don't pay this loan off they will collect interest until the day I die and then the taxpayers will pay the remaining balance of the original principle and accumulated interest.

If I didn't work my payment would be 15% of my earnings, %0, and be discharged after ten years.

What is the point of working? I'll never be able to retire, and there probably won't be any SS in 20 years anyway.

I have thought about borrowing against my house equity, paying the student loan, and then declaring bankruptcy.

Pipe fitting was hard work but, it kept me in shape and I would prefer soldering copper pipe to dealing with a bunch of uptight, boring, engineers that think much more of themselves than they ever will be, anyday.

I did enjoy the curriculum but, I would advise saving money to pay for classes in advance and utilizing the community college system to defray total costs. I did. If I would have gone the 4 years at University my student loan would be 100k.

What a shame. They have certainly ruined this country and the student loan jew bank scam guarantees the bankers a steady flow of taxpayer money until the day we die.

Student loan debt is, now, larger than credit card debt. The Social Security Administration will be issuing half of all benefits to banks to pay off these loans in 20 years.

The Jews are buying all of this debt they can because it is GUARANTEED BY THE TAXPYER. 

Fooled again by the dirty bastards.

Wed, 10/24/2012 - 13:45 | Link to Comment Skateboarder
Skateboarder's picture

"Meet the new boss - same as the old boss."

Go back to pipefitting man. Engineers all uppity in thier own farts thinking they're gonna "change the world" etc. - they're horrible to be around. Change can be a good thing but also a bad thing too - I guess not enough people have learned that lesson even after the promises of the current adminstration four years ago.

There's been a false message circulating around the globe over the last couple decades, that white collar work is better than blue collar work, and that it's more valuable because in theory it pays more. And the peeps have fallen for it. There's been a negative trend in respect, and thus want, for blue collar work, methinks, and that's absolutely not okay. Everyone thinks they can just go to fucking college, get some bullshit degree that doesn't even teach anything particularly useful, and show up for work at a $75k job because that's what should happen in theory. Jig's up folks - that job isn't there, and if it is, sure aint payin that much.

Wed, 10/24/2012 - 14:31 | Link to Comment helping_friendl...
helping_friendly_book's picture

Can't go back now. All the pipe fitters are now Colombians with green cards. I know because I have managed resources on large, fixed bid projects. 

I just can't believe the scam that is twice as bad as when I fell for it. University tuition and fees, books are twice what they were when I graduated ten tears ago. 

I have bright white scars on my arms from soldering above my head with my long sleeves buttoned. Liquid silver solder drips into your sleeves and burns as it rolls down your arm. I do miss it but, no longer have the stamina nor the waistline required to do the work. 

Rednecks pipe fitters are worse than engineers 'cause they have to cut those dreaded hangover farts in the truck, elevator or any enclosed space they happen to trap you.

 

Wed, 10/24/2012 - 14:48 | Link to Comment Skateboarder
Skateboarder's picture

Amen, brother. Hungover rum farts in small enclosed spaces are among the top nasty smells. You can't blame the Colombians - they came here for a better opportunity, and they got them. Their kids, however, are probably falling for the education scam.

I've posted this chart from my alma mater before, and it shows exactly what you're talking about.

Wed, 10/24/2012 - 15:43 | Link to Comment helping_friendl...
helping_friendly_book's picture

Dude! The chart says it all! I suppose I can consider myself lucky I graduated when I did with the increase shown in your graph. I made it out in thwe nick of time.

I sincerely believe it is a coordinated effort by the university's board of visitors and the banking board of directors to jack up and inflate the cost for juicier loan balances. This is a serious problem and will just get worse as borrowers default on their loans, because they can't find a job, and the taxpayer picks up the tab only after a lifetime of interest accumulation.

Can you imagine what kind of bubble that will be?

It will be 50% of all social security benefits going directly to the fucking banks. The master plan.

I read about doctor's having 100k+ loan balances and getting paid squat because of cuts in Medicare and Medicaid spending.

I owned a 2100 square foot antebellum house with an English basement, a wind tunnel in the winter. I would rent out rooms and wheel and little & deal of the gank on the side for beer and book money. This was before all the BC's and high-grade started to appear. I lived there before and after college, 15 years, in the hood. The only good thing, for me, about the housing bubble was the fact that I sold that POS for 3X what I paid for it, and put a nice down payment on a house three blocks from the university. I always had my roomates pay my mortgage. I highly recommend it to any students who want to economize.

For the record:

I do respect the Colombians I met and worked with over the years. Very conscientious, smart, hard working people. The salt of the Earth and were always on time. Sober people. Never a rank fart from the Colombians.

Wed, 10/24/2012 - 14:56 | Link to Comment RockyRacoon
RockyRacoon's picture

My dad had a huge scar on his chest down to his waist from spilling hot tar while hefting a steaming 5 gallon pail of it up a ladder.  That was a long time ago for him but a memory like yesterday for me when I recall seeing it.   I learned to "egg" a copper slip-joint before soldering from an old-time plumber.   It was a very helpful hint.   I've learned quite a few trades to some degree, from working in a cabinet shop to pay my way thru a couple of years of college, to end up in the remodeling trade during the 1980s.  Used to buy the VA and FHA repos to rehab and put back on the market.  There are houses all over town with our empty beer cans in the walls.  It was a great time!

Wed, 10/24/2012 - 15:49 | Link to Comment helping_friendl...
helping_friendly_book's picture

I hear you Rocky. I was continually wheeling and dealing when I was in school and when I graduated to make ends meet.

I am fucking tired now and would just like a level playing field to invest some of the money I have squirreled away because a am afraid to put it in the market for fear of becoming someone's muppet.

I can't risk reverting to some of my old tricks because I am now married and I fear the man now that I have someone other than me to worry about.

I am, truly, the deer in the headlights.

Wed, 10/24/2012 - 13:04 | Link to Comment donsluck
donsluck's picture

We are not all fucked, you are. You ignored what was happening all around you and went down your hyper-educated path. Although I sympathise, reality is what it is, some things are beyond your control. When it's raining, find shelter.

Wed, 10/24/2012 - 13:35 | Link to Comment helping_friendl...
helping_friendly_book's picture

I take full responsibility, am current on all my loan payments and have a 750 credit score. I just assumed I would be making a lot more money at this point.

The average salary in the profession, I was told, was going to be in excess of $85,000 starting. There were graduates who did get good offers and made that kind of money for a few years, bought $350,000 houses then had the plant moved overseas. Well you know the story. Now they are driving 200 miles a day to work or even flying overseas for weeks at a time. 

I am not making excuses, I should have known better, paid more tuition upfront and not taken on so much debt. I could have been wiser.

I am just trying to bring this to others attention so they don't get trapped into taking on non dischargable debt ans then finding no work to be had. Don't buy the lie.

Yes I am crying like a little bitch but, a am paying my debts while I whine.

I don't dare invest in the market our I'll get my clock cleaned and really be up shit's creek.

What is one to do except keep on one's grind?

I could move to where there is better, more lucrative, work but, my wife has a dynamite career and would be stupid to ask her to sacrafice her position.

Can't win for losing.

Wed, 10/24/2012 - 21:16 | Link to Comment jerry_theking_lawler
jerry_theking_lawler's picture

ah, the rub....like most graduates, you got out of school and thought you would just magically start making 100k+/yr working from home..... just kidding.

the colleges sell this koolaid to the students, and they drink it up. i too am a ChE with 15+yrs of experience. worked in some shitty jobs/places over the years but now am somewhat successful. plus the work is easy. the only way to truly get ahead is use your skills, become a specialist, and start your own business.

on the flip side, was on a team restarting a chem plant in the US....couldn't find qualified candidates with plant process/management experience to fill all the roles.....only filled about 90% of roles b/c the pool of employees with skills we needed was small and those that had them wanted serious $$.

Wed, 10/24/2012 - 13:39 | Link to Comment helping_friendl...
helping_friendly_book's picture

I graduated in 2002 so I really don't get your assertion that I: "ignored what was happening all around you and went down your hyper-educated path".

 What does that mean exactly?

What is hyper educated? I have a Bachelors of Science. Is that so hyper-educated? 


Wed, 10/24/2012 - 13:56 | Link to Comment walküre
walküre's picture

We are not all fucked, you are

You're fucked too. Don't fucking kid yourself! If you were settled for life, you wouldn't be posting here. None of us would. We're the 99% and that includes you. Unless you're in the 1% you got fucking squat when the shit hits the fan (not if).

Wed, 10/24/2012 - 14:28 | Link to Comment NotApplicable
NotApplicable's picture

I pity the 1 percenter who resorts to hanging out here!

Wed, 10/24/2012 - 14:18 | Link to Comment YC2
YC2's picture

I would trade my claim on social security to have my school debt wiped clean today with zero hesitation. 

 

Either agreement being kept seems unlikely, I dont know why this isnt an option to trade BS for BS, no pun intended.

Wed, 10/24/2012 - 14:31 | Link to Comment NotApplicable
NotApplicable's picture

Because the LAST thing they want to do is to release you from their dual-chokehold.

Hell, I'd opt out of SS just to get away from payroll deductions (and maybe half of what my employer pays).

Not going to happen though. They'd rather "we all go down together."

Wed, 10/24/2012 - 12:18 | Link to Comment Arthor Bearing
Arthor Bearing's picture

That's why Obama-as-socialist is such a myth, at least in socialism the money eventually flows to the people, rather than being used to help traders rig markets *ahem* I mean gamble.

Wed, 10/24/2012 - 12:21 | Link to Comment Abraxas
Abraxas's picture

You are right. Obama is no socialist. Look around, corporations and big banks are taking complete control. By definition, this is fashism.

Wed, 10/24/2012 - 12:28 | Link to Comment Gene Parmesan
Gene Parmesan's picture

What does fashion have to do with anything?

Wed, 10/24/2012 - 13:21 | Link to Comment Bohm Squad
Bohm Squad's picture

"Hooked on phonics worked for me."

Wed, 10/24/2012 - 13:39 | Link to Comment dark_matter
dark_matter's picture

Fash=Scotch for bother or annoy. Fashism=Scotch for a system that bothers or annoys everyone.

Wed, 10/24/2012 - 13:25 | Link to Comment TWSceptic
TWSceptic's picture

Yes he's a fascist in socialist disguise.

 

And btw Romney too, in free marketeer disguise.

Wed, 10/24/2012 - 14:59 | Link to Comment RockyRacoon
RockyRacoon's picture

Either Moe will keep his job, or Curly will get it.  What's the fuss all about?

Wed, 10/24/2012 - 13:34 | Link to Comment crusty curmudgeon
crusty curmudgeon's picture

"...at least in socialism the money eventually flows to the people..."

This is the most ignorant and naive statement I've seen all week.  Thanks.

Wed, 10/24/2012 - 14:03 | Link to Comment Beam Me Up Scotty
Beam Me Up Scotty's picture

"at least in socialism the money eventually flows to the people"

Is that how it worked in the Soviet Union?  Or North Korea?  Or Cuba?  The list goes on.  I don't think the people in any of those countries had any sort of decent standard of living.  Instead of the top 1% having most of the wealth, it was the top .000001% that had all the wealth in those countries.  I would be careful what you wish for.

When everyone is poor, no one is poor.  You might think you are well off because you own 2 shirts and a pair of pants, because everyone else around you is wearing a rain barrel.  That doesn't mean you are rich, or that money is flowing to the people.  You can bet your so called "leaders" will still be living a lavish lifestyle.

Wed, 10/24/2012 - 12:23 | Link to Comment ebworthen
ebworthen's picture

Money for the little people?

Hah!

That would involve MORAL HAZARD.

Can't have that, can't have someone getting something for nothing (other than banks and corporations).

God forbid that monetization should actually reach individuals in a 70% consumer consumption economy.

McMansions!

Coach handbags!

Tiffany's and Nieman Marcus, Saks Fifth Avenue!

All hail the Gods of crony capitalism!  All hail!  Hail Ben Bernanke and the criminal syndicate of Wall Street!

Bow to your masters serfs!  Bow to your masters!  It's Medicare open enrollment!  Choose the "insurance" for your supplement to the supplement of medi"care"!

Blood!  We need more blood! The Wall Street parasites and the parasites of the parasites cry out as one!  Blood!  We need more Blood!  Bloooooooooodddddddddd!!!!!!!

Wed, 10/24/2012 - 12:31 | Link to Comment IBelieveInMagic
IBelieveInMagic's picture

At least we Americans get first use of these newly created dollars. Imagine real stuff being handed over by the rest of the world in exchange of these dollars! Love it while the going is good. We got the world by it's nut sacks.

Wed, 10/24/2012 - 12:55 | Link to Comment socalbeach
socalbeach's picture

Who's "we" ?

Banks who get handouts and access to zero interest rate loans, recipients of government largesse ("defense" contractors, welfare recipients, etc.), and the upper middle class with the ability to get loans or refinance at supressed interest rates.  I'm sure I left some out, but everyone else is paying higher prices for food, energy, etc.

Wed, 10/24/2012 - 13:13 | Link to Comment IBelieveInMagic
IBelieveInMagic's picture

We, the unwashed masses, are being trickled on from above by the banking elite and we in turn are pissing down on the rest of the world. If you really looked carefully, you will realize that great % of income being earned by Americans is directly or indirectly from the government (healthcare, defence, government, etc, etc.) -- mostly non-tradable goods and services. I know most ZHers whine about how the Feds are favoring the banking elite but the fact is that even common Americans are benefited by the Feds action compared to the third world serfs -- they are the real losers. This is just an observation to remind ourselves to maintain reasonable perspective, not a defence of the banks or the Feds.

Wed, 10/24/2012 - 13:18 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Precisely why only a total reset "fixes" anything.  This is the only way we all find out the true value of everyone's labor.

Wed, 10/24/2012 - 13:42 | Link to Comment Eally Ucked
Eally Ucked's picture

Total reset would be very painful for Americans and very positive for 3-rd world countries, do you really want that to happen?

Wed, 10/24/2012 - 13:49 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Bullshit.  bring it.  The only people who have anything to fear are those who know that there is absolutely no value in their labor and who are no willing to contribute in a very real manner.  Fuck the paper-pushers.  My community is very prepared.  What's that old real estate saying again?  Oh yeah, location, location, location...

Wed, 10/24/2012 - 14:06 | Link to Comment Skateboarder
Skateboarder's picture

SERIOUSLY, LoP, fuck paper-pushers, "management," and more generally people who don't have any skills other than blabbering and regurgitation. If you work hard, and you can get shit done, you have nothing to be afraid of. When it comes down to it, and you don't have any value in your labor, i.e. you rely on other people to get your shit done for you, then you'll be exposed for the shite you are.

Wed, 10/24/2012 - 14:13 | Link to Comment IBelieveInMagic
IBelieveInMagic's picture

Which unfortunately will include most Americans. Hence, this will not be allowed to collapse without a fight.

Wed, 10/24/2012 - 15:05 | Link to Comment RockyRacoon
RockyRacoon's picture

An old proverb from some place I forget:  When an old person dies a library burns.

It's amazing how much knowledge some of my friends and I have regarding the trades.  Good useful stuff that would be of great benefit in a "reset".   Keeping some of us with calloused hands alive would be a good move on the part of those who would cast us off for the production of soylent green.

Wed, 10/24/2012 - 13:53 | Link to Comment socalbeach
socalbeach's picture

I don't know for sure if the average American would have been better or worse off without the Federal Reserve's money printing, but my guess is they're worse off.  Median income for the U.S. population, adjusted for official inflation figures, is down 8.1% since 2007.

Median household income falls again
September 18, 2012
http://www.sfgate.com/business/bottomline/article/Median-household-incom...

"According to the U.S. Census Bureau, real median household income fell for the second year in a row in 2011 - two years after the official end of the Great Recession - to $50,054. That's an 8.1 percent drop from 2007..."

(In response to whether or not the avg American is better off with the Fed's policies, not whether we're better off compared to the avg 3rd world peasant.)

Wed, 10/24/2012 - 12:21 | Link to Comment resurger
resurger's picture

Peak QE!!!

Wed, 10/24/2012 - 12:22 | Link to Comment tocointhephrase
tocointhephrase's picture

We are all Japan!

Wed, 10/24/2012 - 12:23 | Link to Comment IridiumRebel
IridiumRebel's picture

Makes you want to kick em' square in the nuts, don't it?

Wed, 10/24/2012 - 12:24 | Link to Comment Captain Benny
Captain Benny's picture

Printers will never be able to make paper worth more than the metals:

Got gold, silver, and lead?

 

Wed, 10/24/2012 - 12:26 | Link to Comment BLOTTO
BLOTTO's picture

OCCULT SHIT SHOW.

.

Nothing New Under the Sun,

History is merely repeating itself.

.

 

 

Wed, 10/24/2012 - 12:35 | Link to Comment PUD
PUD's picture

But does that include the half jobs as reported by ADP?

Wed, 10/24/2012 - 12:38 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

 

 

When are the "Tylers" gonna admit QE is nothing but a looting spree, looting the economy, looting the people, transferring trillions of American wealth to Wall Street?

Fed can't create wealth.  Fed can only move existing wealth by creating more currency and giving it to whomever they choose. 

"Asset buying" is a joke.  Fed's balance sheet is a garbage dump of worthless financial paper Fed paid full price for.  No way would banks ever buy that worthless shit back.

"Asset buying" is simply a way to make large cash gifts look legit.

Wed, 10/24/2012 - 12:42 | Link to Comment Tyler Durden
Tyler Durden's picture

Since you appear to be new here, we said in March 2009, the day the expanded QE was announced, that "easing" is the death knell of America's middle class, and a bank- and administration-endorsed destruction of what this country once stood for.

Wed, 10/24/2012 - 13:01 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

 

 

Then why these nonsense articles about how many jobs a week of QE could fund? 

It never was intented to help jobs nor the economy.   It's the opposite, looting the economy, looting the people.

Just tell the truth.

Wed, 10/24/2012 - 13:08 | Link to Comment debtor of last ...
debtor of last resort's picture

QE makes desperate.

Wed, 10/24/2012 - 13:28 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

I believe the article is there for what they call perspective.  The idea of $85 Billion a month, created out of the anus of the bankster class, in toxic asset purchases a month falls, on deaf ears of the majority in the American public (think all Obama and Romney voters).  When one puts into perspective what this "money" can do if related in terms of people and jobs, then majority may, just may, get a fucking clue that the bankster class is there for the stability of those closely connected with them at the expense of the rest.  Nothing more, nothing less.

The najority of the public needs to be able to see the correlation of the money going to the banks versus that money and what it would do the the plebe class.  Simply "telling the truth", something ZH and its community have done in the past near decade, are often times talking over the head of the average TV junky, as they don't see the correlation yet. 

For instance, I can tell someone the Gulf of Tonkin was a false flag attack to get the US into Nam (truth), but a clip of Robert McNamara would be a good bit of evidence to the sheep (perspective). http://www.youtube.com/watch?v=5AaGVAipGp0

Does this printer make my ass look big? - Ben Bernanke

Wed, 10/24/2012 - 13:33 | Link to Comment resurger
resurger's picture

lol

You need to get laid man!

Wed, 10/24/2012 - 14:04 | Link to Comment rqb1
rqb1's picture

it is an analogy, td is not trying to prove anything, but relate the amount of money to common knowledge.

 

Wed, 10/24/2012 - 15:58 | Link to Comment helping_friendl...
helping_friendly_book's picture

ZH might be trying to enlighten you or they could be a Wall Street tool. 

Still great reading and superb commentary from most of the posters here.

Do you prefer to revert to the yahoo chat of the finance page?

I didn't think so.

Let your opinion be your own, let others draw their own conclusions. I knew about QE long before they started QE.

I knew about QE long before I discovered ZH.

http://www.federalreserve.gov/boarddocs/speeches/2002/20021121/default.htm

Wed, 10/24/2012 - 13:27 | Link to Comment JR
JR's picture

Tyler, Cranky has been a ZH fighter for “2 years and 22 weeks,” providing some of ZH’s most erudite commentary.  I know ZH cannot make the case as strong as Cranky suggests, but it’s important to realize that you are both on the same team, albeit one is providing a wide presentation of analysis and another is lighting fires.

Here’s just one of Cranky’s hot items one and a half years ago:

Thanks to those beautiful laws of mathematics, bankers will ultimately fail.

Most developed nations have sold out their sovereignty to central banks, withdrawing their national currencies and adopting central bank currencies.

For example America withdrew its national currency, the US dollar, and adopted Federal Reserve Notes (FRN) issued by the Federal Reserve, a private non-government bank. European nations withdrew their respective national currencies and adopted the Euro, issued by the European Central Bank, a private non-government bank.

Amshel Rothschild said give him control of a nation's currency and he doesn't care what laws they make, implying he has more control than the nation's lawmakers.

We see that in here America where Fed chairman Ben Bernanke has more power than Congress and doesn't care what laws Congress makes. In Europe ECB head JCT has more power than any Euro-nation parliament and doesn't care what laws they make.

Central banks have one purpose: Steal the wealth of a nation.

Central banks have complicit corrupt politicians in a national government helping them steal that nation's wealth.  In America it's Obama, Geithner, and powerful people in Congress.

Central banks buy cooperation of corrupt politicians by offering to loan them unlimited amounts of their private currency the central bank creates out of thin air, printing it on a printing press more or less.   In America The Fed has loaned $14 trillion FRNs to the federal government, and all of it was created out of thin air.

(The US dollar no longer exists.  Calling FRNs "dollars" is convenient but it's erroneous.  There's no such thing as a US dollar anymore.  A 1 FRN note says "one dollar", implying 1 FRN is equivalent to 1 US dollar. But it's meaningless since US dollars don't exist anymore.)

The Fed is loaning America's wealth to the federal government, private companies like Goldman Sachs, and foreign banks like Deutsche Bank.

Yes, I said loaning it. The Fed owns it. The Fed owns America's wealth.

The Fed also buys stuff with America's wealth, like buying (worthless) securities from Goldman Sacks, effectively giving part of America's wealth to Goldman Sachs, and buying (wothless) greek bonds from Deutsche Bank, effectively giving part of America's wealth to Deutsche Bank.

A nation's wealth is carried in its currency.

Whoever owns that currency owns the nation's wealth.

When a nation's government issues a currency, the government now owns the nation's wealth. Instantly.  Just that fast.

This is why America's founders said NO paper currency.  Only physical gold and silver would be allowed.  It's right there in the Constitution.  Gold and silver only.

It doesn't mean a gold-backed paper currency either. They said NO paper currency PERIOD.

When a nation withdraws its currency and adopts an outside currency, the owner of that currency now owns the nation's wealth. Instantly.  Poof, just like that.

The Fed owns America's wealth. The ECB owns all the Euro-nations' wealth.

Greece has consumed more wealth than they've created.  They've had to borrow wealth from other Euro-nations and the ECB for some time now. About 300 billion Euros worth so far.

Most of that borrowed wealth has been consumed by the Greek government, some going into pockets of Greek politicians, some  passed on to the Greek people in various welfare programs.

Greece has borrowed so much wealth fron other Euro-nations, those other nations are now saying "enough, no more, they can't pay back what they've borrowed already".

Some day the American people ...and nations like China... hopefully will say the same thing about our federal government.

But the Fed couldn't care less. The Fed would loan ALL of America's wealth to the federal government if we let them...

Wed, 10/24/2012 - 13:37 | Link to Comment resurger
resurger's picture

JESUS CHRIST!

do you work for the Stellar Wind JR?

J/K

Wed, 10/24/2012 - 13:45 | Link to Comment JR
JR's picture

Not yet. ;-)

Wed, 10/24/2012 - 15:37 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

 

 

Tyler, Cranky has been a ZH fighter for “2 years and 22 weeks,” providing some of ZH’s most erudite commentary.

Thanks JR, and yes, ZH has my loyalty in spite of any disagreements about individual articles.

Most ZH articles address specifics.   I typically try to show how those specifics tie into the bigger picture.

 

Wed, 10/24/2012 - 12:46 | Link to Comment Dr. Engali
Dr. Engali's picture

You have either been taking a nap old geezer or forgotten your meds, because the "Tyler's" have been stating that all along.

Edit. You've been here long enough to know that so one must assume one if two things ; either you are woefully ignorant or you are a troll.

Wed, 10/24/2012 - 12:46 | Link to Comment fonzannoon
fonzannoon's picture

thats one hell of a nap. so this new global currency will be backed by gold Doc? that means massive devaluation of the USD? where i get lost there is the banks are recapped and the fed chokes and dies...how do the banks benefit from the new currency?

Wed, 10/24/2012 - 13:10 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

 

 

because the "Tyler's" have been stating that all along.

Bullshit. 

I see lots of articles about why QE isn't creating jobs, isn't helping the economy.

Anyone with a brain knows QE isn't about helping the economy.  It's about transferring wealth to the banks.  

Just say that.  Tell people what the Fed really is doing, not what it isn't doing.

Wed, 10/24/2012 - 13:13 | Link to Comment Dr. Engali
Dr. Engali's picture

Okay I've concluded that you're not a troll .. You are just woefully ignorant. Again the Tyler's have been stating all along what QE is all about. You need to do one of two things... Either do a simple search on the site a do some reading ( there are far too many articles for me to give you the links) or you need to go hang around the AARP site because you're going to hurt yourself here.

Wed, 10/24/2012 - 13:21 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Explaining how this site has pointed out the theft of the Fed is like pissing in the wind.  Could feel good at first, but the spray back is not worth the effort.

Wed, 10/24/2012 - 13:33 | Link to Comment Dr. Engali
Dr. Engali's picture

Yeah I know. The geezer has been here for over two years and he makes a statement like that is just ridiculous.

Wed, 10/24/2012 - 13:37 | Link to Comment crusty curmudgeon
crusty curmudgeon's picture

Given that some people have obviously slept through logic class (or received a public education and failed to do any critical thinking on their own), allow me to hold your hand.  I'm going to go real slow... 

Illustrating how many jobs would have been created with QE is NOT the same as implying that the purpose of QE was to create jobs.  Got it?  No?  Let's try again...

Tyler isn't suggesting that QE was intended to create jobs just because he shows how many jobs could have been created with the same amount of money.

Clear enough?

Oh, and one more thing:  Every article doesn't need to make the same point.  Yep, I know it sounds crazy to you but for some of us, it would get rather old to read articles that all make the same point.

Wed, 10/24/2012 - 13:41 | Link to Comment fonzannoon
fonzannoon's picture

This whole thing is so far beyond old it is maddening.

Wed, 10/24/2012 - 13:45 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

 

 

Illustrating how many jobs would have been created with QE is NOT the same as implying that the purpose of QE was to create jobs. 

Yes, it DOES imply that.  ZH whining about no jobs created DOES imply jobs and economic recovery is supposed to be the purpose of QE, reinforcing what  sheep are told by the government, msm, etc.

Like I said above, stop whining about what the Fed isn't doing.  Say what they really are doing.  Say it clearly and boldly and frequently so the sheep out there will (hopefully) get the message.

Wed, 10/24/2012 - 13:49 | Link to Comment crusty curmudgeon
crusty curmudgeon's picture

"Say it clearly and boldly and frequently so the sheep out there will (hopefully) get the message."

I like the thought and share your goal.  But sheeple don't read ZH.  Your ranting is misplaced.

Wed, 10/24/2012 - 14:10 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

 

 

But sheeple don't read ZH. 

What?  ZH has become the largest independent financial site on the entire freikiin internet, and nobody outside the financial community comes here?  None of the sheep have come here and had their eyes opened?

I rather doubt that.   I suspect quite a few  sheep are coming out of their sheep-ness by the education they get here.

"Bernanke Decides To Loot Another $40 Billion A Month From The American People And Give It To Wall Street" would have been much more informative than this article.

Wed, 10/24/2012 - 20:56 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

cranky-old-geezer, missing the point (perhaps because those damned kids won't keep off of his lawn):

Illustrating how many jobs would have been created with QE is NOT the same as implying that the purpose of QE was to create jobs. 

Yes, it DOES imply that.

Let's try this again, with more fiber.

Illustrating how many pounds of primo, mind-blowing weed could have been bought for each man, woman, and child in the country with the money created by QE is NOT the same as implying that the purpose of QE was to buy weed.

Wed, 10/24/2012 - 14:09 | Link to Comment walküre
walküre's picture

Take it a step further.

QE3 is another bank bailout. Nothing is being eased. It is a ruse.

Another point I would make is how the Fed comes up with this bullshit number of $40 billion per month. That number is straight from Ben's ass. Why not $35 billion, or $55 billion? And that amount times eternity (as long as required)? Then the additional $45 billion to twist paper at least until the end of 2012. That has at least an expiry date - for now.

The bottom line is that whatever the Fed did since 2009 has merely helped the banks and the well connected class of the top 1%. There was little trickle down effect to the economy if any. The den of thieves a.k.a. Wall Street has benefited and by extension, the city of New York. To the point where Manhattan real estate became again the pirate's preferred digs to buy with their loot.

Wed, 10/24/2012 - 12:39 | Link to Comment LeisureSmith
LeisureSmith's picture

That's alot of Soylent Green. 

Wed, 10/24/2012 - 12:43 | Link to Comment zilverreiger
zilverreiger's picture

How many needless bits were shifted with this article to tell us soemthing that would fit in a small table with numbers?

Wed, 10/24/2012 - 12:44 | Link to Comment icanhasbailout
icanhasbailout's picture

let me guess, you still use LYNX

Wed, 10/24/2012 - 14:39 | Link to Comment NotApplicable
NotApplicable's picture

Google's greatest enemy!

Wed, 10/24/2012 - 12:47 | Link to Comment Mountainview
Mountainview's picture

It's the something for nothing mentality which is highly disturbing...

Wed, 10/24/2012 - 13:13 | Link to Comment sdmjake
sdmjake's picture

"No one owes you anything"

been posted before but always worth a read: http://www.harrybrowne.org/articles/GiftDaughter.htm

Wed, 10/24/2012 - 13:15 | Link to Comment LawsofPhysics
LawsofPhysics's picture

In addition, mother Nature and the laws of physics do not guarranty your survival either.  To believe that the paper promises of man-made contructs and institution will somehow do this is beyond stupid.

Wed, 10/24/2012 - 13:17 | Link to Comment sdmjake
sdmjake's picture

Indeed, as they say, "On a long enough timeline..."

Wed, 10/24/2012 - 12:52 | Link to Comment ThisIsBob
ThisIsBob's picture

I would still like to know what the Fed is paying for these MBS thing-a-majigs (cash for clunkers).  How is the price set and what is its relation to par?

Are there not any fearless bloggers who can check that out?

Wed, 10/24/2012 - 13:13 | Link to Comment Boxed Merlot
Boxed Merlot's picture

The rate is approximately frn17K per second from now on. At that rate of transfer, enough ownership of improved US real estate should be transferred into the member banks joint ownership with new and perfected titles to prevent a furthering of prosecution for their control fraud committed in their original creation.

BTW, there's not a single supreme court justice that would declare the principles espoused by Christ as being relevant to their adjudication of any decision brought before the court. While some may see this as immaterial and inconsequential, I prefer to believe the founders would be terrified.

Wed, 10/24/2012 - 12:52 | Link to Comment Poor Grogman
Poor Grogman's picture

The sad thing is everyone who has debt, desperately needs to get their hands on just enough of the pile to make that monthly payment.

Debt serfdom on a grand scale....

Let them eat cake. Says the bernake

Wed, 10/24/2012 - 12:58 | Link to Comment JR
JR's picture

In short, it takes 3500 minimum wage American workers one year to make $100 million. – Tyler Durden

It’s a river of money, but in this case the stream flows uphill back to the source, to the banking establishment, and the jobs and the economy atrophy.

These banking criminals would be long gone if not for the establishment propaganda enlisting the support of low information voters.

America’s founders always feared the rise of democracy, or “mobocracy.”

Early Americans believed democracy, or direct government by the people, is unstable and dangerous because it has no way of preventing the growth and unified power of factions. On the other hand, they believed a representative government, or a republican form, was more stable because it was indirect and less liable to fall before a popular idea sold by the elite to low-information voters or before a majority of factions unified in a common goal, such as robbery of the treasury to benefit themselves.

When a republican form of government was ratified by the thirteen states, America grew from its tiny beginnings to become the most powerful nation in the world, a growth based on self-reliance that begot individualism and liberty and a free-enterprise, supply and demand, market system.    

The establishment of the Federal Reserve System in 1913 destroyed America’s republican roots. It transferred the representative power of the people -- the law -- to the current international private banking families who now issue and control the nation’s money with no oversight from the Congress.

These elite banking cartels, by periodically restricting the money supply within the emergent stock exchanges and markets of the world, easily engineered “crashes,” thereby transferring the wealth of the people to the most powerful of the banking and industrial families. Now, they print the direct wealth transfer without restaint and with open QE fanfare.

"Putting it into perspective,"it now can be said that  life for most Americans is demonstrably worse than at any time in recent U.S. history...

Wed, 10/24/2012 - 12:58 | Link to Comment newworldorder
newworldorder's picture

This mathematical "hand wringing" does not matter. The financial (banking) power structure, aided by the captured political system will do what it wants.

The system exists for the 1% and the 20% wanabys that will sell their souls to become the 1%. What is it about this that the "hand wringers" do not understand?

Very few are istening to the cry in the wilderness. Most people are silent, do not want to hear and are too busy earning their daily bread and pleasures to care.

Wed, 10/24/2012 - 12:58 | Link to Comment JustObserving
JustObserving's picture

The Fed is not only screwing the middle class to benefit the banksters but also the rest of the world:

"Major investors in US government bonds now find themselves in the position John Maynard Keynes identified: "Owe your banker £1,000 and you are at his mercy; owe him £1m and the position is reversed."

Valery Giscard d'Estaing, the French finance minister under Charles de Gaulle, famously used the term "exorbitant privilege" to describe the advantages to America of the dollar's role as a reserve currency and its central role in global trade.

That privilege now is not only "exorbitant" but "extortionate". How long the world will let the US exercise it is uncertain."

http://www.independent.co.uk/news/business/comment/satyajit-das-so-how-long-can-the-us-hold-the-world-to-ransom-with-the-dollar-8223577.html

Wed, 10/24/2012 - 13:02 | Link to Comment newworldorder
newworldorder's picture

That privilege now is not only "exorbitant" but "extortionate". How long the world will let the US exercise it is uncertain."

This will continue as long as the American military quarantees order in the world and protects the oil flow. If for any reason this fails, the privilage will stop.

Wed, 10/24/2012 - 12:59 | Link to Comment Boxed Merlot
Boxed Merlot's picture

The point is, Bennie is protecting the owners of the fed by buying up the evidence of their misconduct by transferring legal ownership of improved US real estate into their joint ownership, i.e. into the coffers of the fed.

The value of frns is irrelevent, just as long as the titles to the deeds are perfected this time around. 

The bis is happy, the imf is happy, the fed's happy, why aren't you?

 

This is the culmination of several well thought out lines of reasoning by these economic phds whose continued reliance on their ownership of the US judiciary prevents true justice from occurring.  imo.

 

   

Wed, 10/24/2012 - 13:14 | Link to Comment Quinvarius
Quinvarius's picture

Facts hurt Kaminsky's brain.  He is still in denial that QE3 was announced.  There is no way he can handle QE4.  I will send him a copy of one of Peter Schiff's books.  I am not a fan of the economy.  But that is a lot of cheap money. 

Wed, 10/24/2012 - 13:26 | Link to Comment Fix It Again Timmy
Fix It Again Timmy's picture

What will it take to shutdown the 24x7 blast furnaces of greed that seem to be everywhere?  Your government?  Ha, that's a joke....

Wed, 10/24/2012 - 13:47 | Link to Comment tooriskytoinvest
tooriskytoinvest's picture

SURPRISE: Feds sue BANK OF AMERICA

http://dealbook.nytimes.com/2012/10/24/federal-prosecutors-sue-bank-of-america-over-mortgage-program/

President Obama booed at university's Military Appreciation Day football game

http://www.wyff4.com/news/local-news/oconee-pickens-news/President-Obama-booed-during-Clemson-game/-/9654906/17111956/-/jygtdr/-/index.html#ixzz2AEu9z4Is

Government's Laying Siege to Town Exposes West's Indifference to Human RightsLibya and the Human Rights Double Standard

http://uruknet.com/?p=m92063&hd=&size=1&l=e

Economic Gloom Is Spreading: Central Banks Are Losing War Against The Primary Trend And The Selloff In Stocks And Precious Metals Could Be About To Get Worse

http://investmentwatchblog.com/economic-gloom-is-spreading-central-banks-are-losing-war-against-the-primary-trend-and-the-selloff-in-stocks-and-precious-metals-could-be-about-to-get-worse/

Wed, 10/24/2012 - 13:50 | Link to Comment mr_bad
mr_bad's picture

Fuck the Bernanke !!!!!!!

Wed, 10/24/2012 - 13:58 | Link to Comment drivenZ
drivenZ's picture

you guys act as if the entire $40B in MBS is going right to the coffers of banks. when in reality it's just an asset swap where guys like Bill Gross (and the banks) are making profits selling to the Fed or someone else with an implicit put from the fed. But they arent taking in $40B in cash profits. They're picking up a small % of that via realized gains. The purchases also prop up the housing market (obviously) which increases homeowner wealth. Not much solace to renters or savers but home owners are the relative winners the fed has picked to support. 

 

Also, reserves at the fed, however large they may be, do not mean banks aren't lending. Reserves at the fed are a function of the size of the feds balance sheet, not of lending or lack thereof.  

Wed, 10/24/2012 - 14:04 | Link to Comment crusty curmudgeon
crusty curmudgeon's picture

"guys like Bill Gross (and the banks) are making profits"

See - it was possible to extract something accurate from this comment.

Wed, 10/24/2012 - 14:09 | Link to Comment drivenZ
drivenZ's picture

sorry, I forgot ZH hates independent/dissenting opinions. Ironic, dont you think? 

Wed, 10/24/2012 - 14:44 | Link to Comment crusty curmudgeon
crusty curmudgeon's picture

Somehow, pointing out that you are inaccurate is the same as hating independent/dissenting opinions.  Interesting.  Well, I guess that makes sense to you.

Go with that.  It makes it easier to swallow (not that there's anything wrong with that).

Wed, 10/24/2012 - 15:06 | Link to Comment drivenZ
drivenZ's picture

go ahead prove me wrong, i welcome it.

Wed, 10/24/2012 - 14:22 | Link to Comment babylon15
babylon15's picture

PIMCO finished in last place among peers in 2011.  Do you not remember Bill Gross' public apology for the worst performance of his entire career?

Wed, 10/24/2012 - 18:06 | Link to Comment drivenZ
drivenZ's picture

right and you do recall post 2011 he was publicly buying MBS due to the fact that he said the fed would step up and start buying MBS, right? and low and behold, $40B/month   

Wed, 10/24/2012 - 18:12 | Link to Comment drivenZ
drivenZ's picture

this took all of 15 seconds to find... 

 

"Half of the $272.5 billion Total Return Fund that Mr. Gross manages at Pacific Investment Management Co. is dedicated to mortgage-backed securities after an extensive portfolio shuffle in recent months"

http://online.wsj.com/article/SB10000872396390444023704577649953228620454.html

Wed, 10/24/2012 - 14:18 | Link to Comment helping_friendl...
helping_friendly_book's picture

QE CONTINUES!!!!!

Bullish!

Bernake continues the insanity. 85 billion until 01.01.2013

Low interest rates through the middle of 2015.

Wed, 10/24/2012 - 14:23 | Link to Comment moneymutt
moneymutt's picture

The thing that irritates me is - the 1% cut off their nose to spite their face...banks could have been easily save simply by taking all the money the FED and Congress (via TARP etc) and spent it hiring jobless Americans to useful things. What if everyone who wanted a job could have gotten a $10/hr job from Federal govt, with local county deciding what these people should do - pick up litter, help old people, whatever.  Even better, lets spend half the money to give basic job to unemployed and half on real infrastrucutre projects, that way people making far more the $10 hour would get jobs building things. Economy would be doing so well housing would be fine, debts would not be defaulted.

Wed, 10/24/2012 - 14:42 | Link to Comment NotApplicable
NotApplicable's picture

Even better? Naming the plan the Great Leap Forward 2.0.

Wed, 10/24/2012 - 14:25 | Link to Comment q99x2
q99x2's picture

That's enough people to march on Washington and bring about hope and change. They should cancel their cable subscription and listen to Alex Jones.

This is not my endorsement of AJ because he is boisterous and sometimes exaggerates more than me. But, his guests are some of the best such as: Jim Rogers, Richard Stallman and Nigel Farage. And, television makes people physically and mentally sick.

Wed, 10/24/2012 - 14:46 | Link to Comment NotApplicable
NotApplicable's picture

DC marches have never amounted to anything substantive. Instead they are mostly elite-orchestrated psyops to safely diffuse rising tensions within various classes of the public.

Besides, they always happen on the weekends, when the politicos are safely getting their dicks sucked elsewhere. They could give two-shits about any protests (unless they can use them to garner votes/street cred).

Wed, 10/24/2012 - 16:36 | Link to Comment helping_friendl...
helping_friendly_book's picture

The Bonus Marcher drew the ire of Hoover?, MacArthur and Patton who went in and cracked skulls before clearing the shanties built outside of the Capitol.

http://www.pbs.org/wgbh/amex/macarthur/peopleevents/pandeAMEX89.html

1930's style OWS.

Wed, 10/24/2012 - 14:29 | Link to Comment farmerjohn2112
farmerjohn2112's picture

We're not even pawns anymore...

Wed, 10/24/2012 - 14:45 | Link to Comment walküre
walküre's picture

No, we're not. They have their eternal Versailles and we have yet to even find the Bastille on the map, let alone get enough riled up to be marching towards it.

BUT. If they figured out how to create themselves this eternal wealth, the perpetual paycheque without taking US into consideration then why are we still feeding them and clothing them? It's their money and we should figure out how to live without trading in it.

Who says we have to accept it when it is basically just a figment of their imagination?

Wed, 10/24/2012 - 18:21 | Link to Comment Cycling Fish
Cycling Fish's picture

1. Try and object to your serfdom and you will discover what the militarization of the police, "fusion centers", domestic drones and the patriot act are really for, you rotten pack of commie socialist terrorists!

2. At some stage those with marketable skills will migrate and renounce their citizenship to escape student debt. That will result in the collapse of the international extradition system as wall street orders the government to try and pursue defaulters.

3. I am an old fart and I learned a long time ago that the simplest explanation of human behaviour is usually accurate, as I found out again just recently.

Consider the possibility that bernanke and giethner are being paid to Favor wall street over main street, either in cash now or promised cash when they retire.

Wed, 10/24/2012 - 18:30 | Link to Comment baserunr
baserunr's picture

You're not looking at this the right way.  Just think of all the new buyers that are out there for the NEW iPad!   And I'll bet soon you can even use your EBT card to get one!

 

/sarc

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