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Out Of Ammo?

Tyler Durden's picture


It has been three years and nine months since the Fed announced 'real' QE1. Presented for your convenience below is the market's reactions then and for comparison we have included today's reaction. It seems the markets - whether Gold, FX, or Treasuries - have become numb (or engorged) on the Fed's actions. This leaves us with the sad conclusion, which the Fed will be last to acknowledge: the ammo, it's gone. It's all gone.


EURUSD - rose 370 pips on the announcement of QE1, rose 45 pips on QE4...


Gold- rose 5.4% on the announcement of QE1 but today (on QE4) Gold jumped 1.3% then faded back


Treasuries - When QE1 was announced Treasury Prices exploded in the then 10Y by over $4, today saw the same (now 7Y) bond price drop by around 4 Ticks...


Charts: ZeroHedge archive and Bloomberg


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Wed, 12/12/2012 - 15:51 | 3056959 sbenard
sbenard's picture

Obamalaise - the Ennui Economy!

Wed, 12/12/2012 - 15:52 | 3056967 nope-1004
nope-1004's picture

Does Goldman Sachs care about unemployment?  Does JPM?
I don't think they do.  So why does the Fed, a private firm representing all the banks, talk about unemployment?

Makes no sense to me.  I believe it's a way to keep people numb, believing these crooks "got your back" and are looking out for you, meanwhile they rob humanity.

Truly sick!
Ben, you're effin SICK, dude.


Wed, 12/12/2012 - 15:59 | 3056987 ZerOhead
ZerOhead's picture

It's not about keeping people numb... it is an attempt to create public support for their money printing (and stealth wealth transferance) by attempting to link continuing QE with improvement in employment levels.

Wed, 12/12/2012 - 16:09 | 3057008 nope-1004
nope-1004's picture

The opposite of numb is social unrest.   To me, numb = public support because most people are simply apathetic.  No?

Wed, 12/12/2012 - 16:15 | 3057067 ZerOhead
ZerOhead's picture

The current condition is one of general apathy. As economic conditions deteriorate further and apathy transforms into concern and fear he wants the sheeple to beg him to accelerate "easing" in order to help the unemployed.

And if not to 'educate' the population in advance then certainly to protect himself from the angry mobs later. Can't say the man was hiding his true plans can you?

Wed, 12/12/2012 - 16:19 | 3057097 icanhasbailout
icanhasbailout's picture

The bazooka went off, and they never managed to get it out of the pocket.

Wed, 12/12/2012 - 16:26 | 3057122 Randall Cabot
Randall Cabot's picture

Bernanke's impotent.

Wed, 12/12/2012 - 16:30 | 3057132 strannick
strannick's picture

Ben Bernanke has begged Congress for years to be fiscally prudent. Like Jim Sinclair says, Bernanke is doing his best to hold things together a bit longer, since we cant handle the truth. Full responsibility for the financail catastrophe we find ourselves within the hurricane eye of, rests with Rubin and Greenspan. They knew what they were doing-bankrupting the nation, and who they were doing it for-TBTF Banks, and who they were doing it to, which is everyone else. Because of the actions of these criminals, we hold gold, and each week the farcical charade manages to keep the curtain up is another week to buy gold.

Wed, 12/12/2012 - 16:42 | 3057168 camaro68ss
camaro68ss's picture

Looks like my penis when i see one of those ZH t-shirt banner ads. strate up

Wed, 12/12/2012 - 17:05 | 3057263 tsx500
tsx500's picture

tmi man.     actually it looks like my blood pressure every time i hear Oweblahma or the Bernank speak !

Wed, 12/12/2012 - 18:52 | 3057634 Big Slick
Big Slick's picture

If I could fight any figure in human history, it would be Ben Bernanke's mother 9 months prior to December 13th 1953.  I would beat her to death.

Wed, 12/12/2012 - 17:22 | 3057353 Esso
Esso's picture

I think I just figured out why Tyler doesn't let most of us post pics.

Wed, 12/12/2012 - 17:00 | 3057246 Seer
Seer's picture

"Ben Bernanke has begged Congress for years to be fiscally prudent."

No!, Don't, please, stop, don't!

It's Kabuki theatre.  No way they can exist without each other.  Not like it's NOT going to happen, but Ben and his banking buddies would have their capital evaporate if the govt weren't back-stopping all the shitty loans (which will only pile up- loan decay means death [removed money from the books]).

* Bernanke by default is implicated.  Anyone with REAL balls would have declined the position and stated the truth...  It's like being put up on war crimes stating in one's defense- "I didn't know it was loaded" (you're in a fucking battlefield, EXPECT it to be so!)

Wed, 12/12/2012 - 17:11 | 3057296 john39
john39's picture

the dollar is a fraud... central banking is just a way to take control of a government and steal wealth without having to directly attack a host country.

Wed, 12/12/2012 - 17:21 | 3057331 strannick
strannick's picture

Yes, of course Bernanke is implicated. Anyone with real balls would have declined the position, no doubt. But they are academics and so

1. Lack real balls

2. Seek a real world arena to implement their ivory tower paper mache models, oblivious to the effects on actual people.

''The banality of evil'' I think someone termed their actions.

Wed, 12/12/2012 - 23:29 | 3058305 Tommy Gunner
Tommy Gunner's picture

Paul Krugman has lost the plot with his 'spend spend spend' mantra. 

But to give him some credit - he was saying long ago 'the US needs to run surpluses in good times and pay down deficits' (true Keynesiasm) but of course politicians want the good times to roll - and they ran up mega deficits - particularly Bush with his tax cuts and wars.... 

And now we are fucked because it's too late to cut - the debts are too massive - particular after the govt picked up the tab for the TBTF banks, car companies etc...

See Greece?  See Spain?   That is the future of America

Thu, 12/13/2012 - 03:26 | 3058576 All Risk No Reward
All Risk No Reward's picture

I don't think you have the full scope of what is in play here.

Once a credit bubble is blown...  second chart on this page... is impossible to avoid a collapse without ending debt based money.

Debt Money Tyrants created Debt Money Tyranny to loot society and seize control of it (after all, they have the money and we have the debt)...

Debt Money Tryanny (PDF download)

They know this.  They knew this in 1913 when they set this system up.  It took a 5th grader to recognize the debt wasn't payable within about 25 seconds.

The question you should be asking is how they plan to benefit from the 100% certain collapse.

The answer is simple, IMHO.

They are currently stealing trillions in cash from society as they offload their bad debts onto society.  They are enriching themselves as they lay down the narrative to cripple the economy for the rest of us.   See the first chart...


The Money Changers are simply looting trillions in cash ahead of the debt based, fraudulent constraint monetary system collapse...  As they shut down our economy with "austerity" (and it is coming, albeit with lots of song and dance along the way) and bankrupt us, they will consolidate the real wealth of the worth FOR PENNIES ON THE DOLLAR.  Homes, farms, public roads, utilities, their competition, water, electricity, etc...  all privately owned BECAUSE they will bust society and then buy it up (with the money they took from us!).

Now you know why JP Morgan Chase is lending 20 year money at 3.3%...  It is an "I dare you" loan...  they know very few will be able to avoid being wiped out and asset stripped as they collapse our economy.

And they will lie - hoping that enough people are naive and apathetic to pull it off.

A collapse is baked into the cake AND PART OF THEIR PLAN.

These people aren't stupid, but they do think you are.

That's why they put Andrew "I killed the bank" on their $20 bank note.  They think you know so little about history (they co-opted your eduction and turned it into Prussion schooling/conditioning), they throw it right in your face.

Oh, and a little icing...  The Washington, DC Federal Reserve Building faces the Lincoln Memorial (Lincoln said, "I have the Confederacy before and the bankers behind me and, for my country, I fear the bankers more" and ended debt based money and cut the bankstrer cartel out...  well, until he was assassinated, anyway).

Oh, and guess what year the first Bank of the United States ended?  1811.

Guess what happened in 1812?

The War of 1812.

They think we are ignorant morons.

Wed, 12/12/2012 - 16:18 | 3057078 knukles
knukles's picture

TPTB do not wish to admit that for any effort repeatedly applied there is a truism referred to in economics as (the Law of) Diminishing Marginal Returns.


There was a once famous Indian chief who was teaching his horse to live without water.  Just about the time he'd had it trained, the damned thing up and died on him.  (Diminishing Marginal Returns and Unintended Consequences... the latter gonna be high inflation, someday)

Wed, 12/12/2012 - 20:01 | 3057800 El Oregonian
El Oregonian's picture
Out Of Ammo?

But, BUT,BUT... Didn't they just order 1.6 BILLION more rounds of ammo???

Wed, 12/12/2012 - 16:03 | 3057023 asteroids
asteroids's picture

The people aren't numb. They are broke and any job they have pays just above the poverty level. They don't have any spare cash to invest in the market, gold, etc. This ain't no mystery, it's demographics. While the FED, banks, and Obozo pray things will improve, they won't. In the end, the debt monstor will rear its ugly head and swallow the US.

Wed, 12/12/2012 - 17:11 | 3057291 eclectic syncretist
eclectic syncretist's picture

But....but.....but.....what about the metaphorical toolbox and all the other things the Fed has at it's disposal?   How can printing our debt and then taking it from us and loaning it back to us at high interest not help us improve our financial situation?  After all, it's no different than getting a new higher limit credit card to pay of debt on an old one so that we can keep going further into debt, which at some point should lead to 100% employment with ipads and lear jets for everyone, right?  I don't understand, so I guess it's a good thing these MIT economists are making the decisions, because I'd probably just pull the plug on the Fed if I could.

Wed, 12/12/2012 - 16:14 | 3057076 Piranhanoia
Piranhanoia's picture

"If it weren't for bad luck,  I wouldn't have no luck at all"

Wed, 12/12/2012 - 16:31 | 3057140 jimijon
jimijon's picture

If it weren't for a ben buck, I wouldn't have no buck at all.

Wed, 12/12/2012 - 17:03 | 3057254 Seer
Seer's picture

Fear not of being without buck.... (buck = debt)  Buck the trend of the buck and buy PMs! :-)

Wed, 12/12/2012 - 16:10 | 3057065 chart_gazer
chart_gazer's picture

what they should have said is "we'll continue to print $ to buy the debt as long as the gov expenses exceed revenues". there is no other alternative. who can possibly buy over $1T treasuries annually when the world is in a defaltionary condition?  there is too much supply.  how can they keep interest rates down if they don't have the purchasing power to dominate the auctions?  they can't, so they must and will print.  all the emploment and inflation jargon is bullshit to keep the layman in america from getting off the couch to raise some hell.

although it was obvioyusly coming, this is a sad day in america.   

Wed, 12/12/2012 - 17:08 | 3057271 spinone
spinone's picture

don't forget, they also had to print enought to buy up all those garbage securities the banks cooked up too.

Wed, 12/12/2012 - 20:02 | 3057803 Imminent Collapse
Imminent Collapse's picture

We'll just do it until we need glasses.

Wed, 12/12/2012 - 20:00 | 3057791 El Oregonian
El Oregonian's picture


Wed, 12/12/2012 - 16:11 | 3056972 El Viejo
El Viejo's picture

You and I can't print money but soon we can print these:

Boggles the mind.

Wed, 12/12/2012 - 16:05 | 3057032 sbenard
sbenard's picture

Economy? Who needs an economy? WE have PRINTED prosperity now!

Wed, 12/12/2012 - 17:56 | 3057449 boogerbently
boogerbently's picture

" It seems the markets - whether Gold, FX, or Treasuries - have become numb "

....comfortably numb.

Wed, 12/12/2012 - 18:22 | 3057536 Chuck Walla
Chuck Walla's picture

Obamalaise is great on a shit sandwich!



Wed, 12/12/2012 - 15:52 | 3056960 TruthInSunshine
TruthInSunshine's picture

Bennie crack all the corn & "the market" don't care?

Wed, 12/12/2012 - 15:55 | 3056985 EscapeKey
EscapeKey's picture

"The invisible hand of the market" demands more free money!

Wed, 12/12/2012 - 17:05 | 3057266 hedgeless_horseman
hedgeless_horseman's picture



"All right, we're gonna be displacing and falling back like crazy sons of bitches. So you got to be Johnny on the spot with the ammo, or we're dead."

Wed, 12/12/2012 - 17:14 | 3057314 tickhound
tickhound's picture

Like a gift that keeps on giving.... This post never gets old.  Brilliant.

Wed, 12/12/2012 - 17:59 | 3057460 hedgeless_horseman
hedgeless_horseman's picture



Makes a great tee-shirt for that special someone on your holiday list.

Wed, 12/12/2012 - 15:56 | 3056986 kliguy38
kliguy38's picture

Corn will be like crack when Bennie gets done printing........same price 

Wed, 12/12/2012 - 16:06 | 3057041 BLOTTO
Wed, 12/12/2012 - 16:09 | 3057052 Winston Churchill
Winston Churchill's picture

The litmus test will be when the Mexican drug cartels want payment in

anything but Benbux.

Wed, 12/12/2012 - 17:16 | 3057324 Seer
Seer's picture

Cattle industry is losing something like $113 per head.  Ponder on that!

RIP Bud Williams (

Wed, 12/12/2012 - 16:10 | 3057056 Squid Vicious
Squid Vicious's picture

PPT stepping in right here, can't have a red Fed f'in way jose

Wed, 12/12/2012 - 15:52 | 3056962 Debtless
Debtless's picture

Out of nothing. They'll make whatever is needed. All is under complete control. Wishing it otherwise is just silly.

Wed, 12/12/2012 - 16:11 | 3057063 NoDebt
NoDebt's picture

First off, nice screen name.

Second, it's the ILLUSION of control.  In reality, they know they've already lost control of this thing.  "She's made of iron, sir.  I assure you she can and will sink.  The pumps only buy you time."  Like that.

Third, this printing has nothing to do with helping the economy EXCEPT the government portion of spending.  $85 Billion a month in QE4EVA x 12 months = $1.2 Trillion.  Exactly the yearly budget deficit of the federal government.

Full-frontal monetization.  It ain't pretty. 

Wed, 12/12/2012 - 16:18 | 3057095 EscapeKey
EscapeKey's picture

3-2-1 before Bernanke's useful idiots claim that they don't monetize the deficit, as technically, the debt they buy is off of Primary Dealers, and not the Treasury.

Much like them claiming that they "don't print money" as "no physical pieces of paper are involved".

Wed, 12/12/2012 - 17:22 | 3057352 Seer
Seer's picture

They all enable each other...

Ultimately it IS about the fact that the loss of growth is resulting in the contraction of credit/debt/money*.  The System just ain't geared toward managing in such an environment.

* Velocity isn't there.  The "money," then, is pretty much just being used to prop up banks' balance sheets: when banks go under it's pretty messy; I doubt that the system can manage a TBTF going down (which is only just a matter of time).

Wed, 12/12/2012 - 16:33 | 3057145 Enceladus
Enceladus's picture

fwiw 85b x 12 = 1.02t

which is better 'cuase it leaves more room for "full" frontal!

Wed, 12/12/2012 - 15:51 | 3056964 VonManstein
VonManstein's picture

I would say so.

Think EURUSD will be rangebound forever. Cash will leak into the known names NZD AUD CAD NOK SEK XAG XAU

Itll be slow but its already begun.

This was an incredible admission of falure and guilt by the FEDs today. Incredible but not suprising.

Starting to scale in shorts DAX SPX

Stack the PHYZZ

Wed, 12/12/2012 - 15:55 | 3056977 CPL
CPL's picture

Canadian dollar is on par with the USD, on par and connected mouth to ass.  It shits, we eat.


Stay away from FOREX if any of you know what's good for your wallets.  Keep stacking only way to hide now.  

Wed, 12/12/2012 - 16:01 | 3057017 CrashisOptimistic
CrashisOptimistic's picture

Gold will not save you.  Its only value is inside your head.

The value of farmland is inside your stomach.  It's the only way to hide now, and yes, it involves getting up and walking away from your computer to actually visit it.  There's no choice now.  

Wed, 12/12/2012 - 16:05 | 3057034 lemonobrien
lemonobrien's picture

the value of pussy and childerns is in your head too.

Wed, 12/12/2012 - 16:09 | 3057051 CrashisOptimistic
CrashisOptimistic's picture

The first produces the second.  The second can work the farm and provide you your 2000 calories per day.  That's their value.  

Think stomach.  Not mind. 

Wed, 12/12/2012 - 16:19 | 3057099 knukles
knukles's picture

Just when I was thinkin' pussy....

Wed, 12/12/2012 - 16:57 | 3057238 IrritableBowels
IrritableBowels's picture

How do you like to prepare the children in order to maximize your caloric intake?  Also how do you store them?>

Wed, 12/12/2012 - 16:58 | 3057243 TruthInSunshine
TruthInSunshine's picture

"You can't eat gold," now eat your fiat!

Wed, 12/12/2012 - 17:01 | 3057248 IrritableBowels
IrritableBowels's picture

Just wondering if he liked to boil or bake the children.

"think stomach.  Not mind."

Wed, 12/12/2012 - 17:45 | 3057413 philosophers bone
philosophers bone's picture

How can you have any pudding if you don't eat your fiat!!

Wed, 12/12/2012 - 17:45 | 3057412 CrashisOptimistic
CrashisOptimistic's picture

You store them in your house, feeding them their 2000 cals per day from your farm.  Then when you're 70 and can't do it anymore, they feed you from the farm.

This is not rocket science.  It is merely the future.  Your future.

Wed, 12/12/2012 - 16:08 | 3057050 Snidley Whipsnae
Snidley Whipsnae's picture

Farmland is not a panacea. Read about the Roman farmers and their fate when their empire was confronted with economic collapse.

The pols/bankers will tax the farmers into oblivion, just as in Rome.

I see the bastards leaving no stone unturned in their search for every last asset that they can get their filthy hands on.

Wed, 12/12/2012 - 16:16 | 3057069 CrashisOptimistic
CrashisOptimistic's picture

Farmland is vulnerable to taxes, but it provides a return in calories.  

Taxing gold transactions (not confiscating, just tax any attempt to use it in a transaction) and you get no return.  You also lose all sense of price (you can price it in bushels of corn if you like) because transactions will stop when the taxation is exorbitant.  This will stop published prices.  And you never know if your counterparty is from the IRS so there's no dodging it.

Farmland is the only sanctuary.  There's no way around it.

Wed, 12/12/2012 - 16:28 | 3057131 EscapeKey
EscapeKey's picture

I think you should look up the downfall of the Roman Empire, because almost the exact opposite happened.

Wed, 12/12/2012 - 16:34 | 3057149 Snidley Whipsnae
Snidley Whipsnae's picture

Farmland was not worth a whit during the decline of the Roman Empire, The Hundred Years War, nor in any other circumstance where hoards of vandals, murderers, and would be conquerers roam the countryside. Roman farmers actually welcomed the various 'barbarians' because they were easier to deal with than their own politicians. Once the rule of law collapses the farmers are subject to all manner of threats. Farmland is not a sancturary without law to protect the farmers and land... and, there must be credible force to back the laws.

Who said anything about gold being better? But, imo, gold is better during periods when no, or little, law exists. Farms aren't portable.'_War_(1415%E2%80%931453)

Wed, 12/12/2012 - 16:37 | 3057155 alangreedspank
alangreedspank's picture

PM transactions are hard to tax. Especially when (more) private mints will get on the action.

Wed, 12/12/2012 - 17:48 | 3057424 Esso
Esso's picture

That avatar is funny.

Wed, 12/12/2012 - 20:12 | 3057822 lemonobrien
lemonobrien's picture

that's called "Jade Hop" it's an ancient chinese exercise.

Wed, 12/12/2012 - 16:39 | 3057163 unrulian
unrulian's picture

farms will be nationalized first...even before know national security and all

Wed, 12/12/2012 - 17:22 | 3057355 Enceladus
Enceladus's picture

Transactions will never stop... unless an astroid hits

In fact I saw a kid in a hoody 'transacting' last night behind a 7-11

in five years it will be a kid in a hoody buying and selling shit and gold will have a value

Wed, 12/12/2012 - 16:15 | 3057077 centerline
centerline's picture

Or taken, confiscated, etc.  No doubt.

Wed, 12/12/2012 - 16:42 | 3057178 unrulian
unrulian's picture

lead is your best bet

Wed, 12/12/2012 - 16:44 | 3057185 CPL
CPL's picture

And that's exactly how I'm investing.


PM's now, bigger land purchases after.

Wed, 12/12/2012 - 16:18 | 3057094 Bullwinkle Moose
Bullwinkle Moose's picture

You'll lose on that when they raise real estate taxes to the point you are forced out.

Wed, 12/12/2012 - 16:40 | 3057166 alangreedspank
alangreedspank's picture

A store of value cannot save YOU, it can only save your savings.

Thu, 12/13/2012 - 00:41 | 3058438 knukles
knukles's picture

Your penis is jumping
Am I the only one noticing that?

Wed, 12/12/2012 - 16:41 | 3057169 CPL
CPL's picture

Good for me then because I have land.  But I still need a weight of trade to run the land.  If nobody is taking dollars, I bet I could buy diesel for my tractors with silver and be the only asshole in the area that can actually use modern farming facilities like tractors, jeeps, ATV's.

Then when I have 40000 buchels of corn, I will not be accepting dollars or bits of string at that point.  I'll be taking silver weights, gold weights, oil as trade or farm labour/skills in trade for profit sharing and more land acquisition.


That's the only game in town now.  Get out of the way of the dollar collapse and have PM's handy if you want USEFUL goods.


Wed, 12/12/2012 - 17:31 | 3057386 Roosting Chicken
Roosting Chicken's picture

Assuming deisel is still being produced and sold at that time, which it may not be.  I don't know, but if the system crashes, I see the entire power grid going down, internet, computers, bank transactions (all my automatic payments), credit system, gas stations, etc.  I don't know how anyone could produce, transport, and sell fuel.  Better buy a horse and a plow.

Wed, 12/12/2012 - 17:27 | 3057380 Seer
Seer's picture

Don't know why you're getting hammered, but you're spot-on.

PMs are an AID.  They will be most viable during the transition state.  How long that transition state will be, or what it will look like is THE question.

Food, Shelter and Water.  These come first: know your priorities.

Wed, 12/12/2012 - 17:54 | 3057444 CrashisOptimistic
CrashisOptimistic's picture

ZH has always had gold nazis.  Getting hammered is something one must tolerate on ZH because echo chambers are more dangerous than anything else.

Gold can be taxed to oblivion.  This can happen long before rule of law breaks down.  When rule of law breaks down, your only hope is to be unnoticed.  Guns won't help you if you're asleep, and you have to be eventually.  Even if you're awake, you can't stop 20,000 hungry people.  You can stop the first dozen, but the rest will get you, and they WILL get you because standing next to them is their hungry 8 year old.  People will do anything to feed their hungry 8 yr olds.  So gold can be eradicated as any store of value by mere taxation.

If there is any remaining rule of law, in general law accords property rights far more weight than ownership of anything else.  Land has always had this special treatment.

And that's that.  Gold's store of value is eradicated before rule of law breaks down. After rule of law breaks down, it's a crapshoot.  

Interesting tidbit.  The most valuable land post breakdown is land with a water powered grinding mill on it.  Effortless providing of a vital food relevant service.

Wed, 12/12/2012 - 18:04 | 3057478 akak
akak's picture


Gold's store of value is eradicated before rule of law breaks down.

That is an idiotic statement.

Gold's store of value can NEVER be "eradicated" --- at worst, what can be (temporarily, at worst) eradicated, arguably, is its value as a medium of exchange during a completely chaotic period, such as during an invasion or a plague.  Maybe.  But how can its inherent store of value function be eradicated?  That could only happen if its acceptability were to be completely ended for all time, by all people.  Nonsense.  In other words, if you can't trade it at the moment, just sit on it --- you will be able to trade it in the future.

Wed, 12/12/2012 - 16:34 | 3057148 alangreedspank
alangreedspank's picture

True. 85% of the CAD is backed by the USD. 3% of its backing is gold. Sold most of it in the early 2000s, like Switzerland did to be able to get into some IMF scams.

Wed, 12/12/2012 - 15:52 | 3056966 michiganmaven
michiganmaven's picture

they do not realize they are firing blanks yet at the recession now... they are wondering why the recession is going down for the count !

Wed, 12/12/2012 - 16:06 | 3057042 Eternal Complainer
Eternal Complainer's picture

It's recovery.
You swallowed the wrong pill?

Wed, 12/12/2012 - 17:55 | 3057450 Esso
Esso's picture

Red, Blue, I can never remember which one to take, dammit.

Wed, 12/12/2012 - 15:53 | 3056974 Central Bankster
Central Bankster's picture

And the only game in town is to front run the Fed, and sucker in more retail "investors".

Wed, 12/12/2012 - 16:06 | 3057045 NaiLib
NaiLib's picture

Yep, as of tomorrow, every retaildesk will have a note on what to say to retail investors. "You _have to_ buy stocks, its the _only_ way you will be able to get _any_ interest or return on your investment" That will be the new mantra all over CNBC/BLoomberg/ etc etc

Wed, 12/12/2012 - 15:53 | 3056976 Confundido
Confundido's picture

First, Gold was manipulated. It began on time: At 10:30am, punctually.

The real thing is the sell off in Treasuries. If $45bn is not enough, it means that they must not just probably have to monetize the entire flow (i.e. deficit) but also the oustanding stock...By the way...who holds that stock???

Wed, 12/12/2012 - 16:04 | 3057031 CrashisOptimistic
CrashisOptimistic's picture

The Fed is funding the entire 1 Trillion dollar deficit.  85 Billion/month X 12 is 1.02 Trillion.  

This is an enormous bid under Treasuries.  They are the only thing certain to elevate.  Everything else will be consumed to fuel that bid.

Look for negative nominal yields on the 10 year next year.  If you own bonds, you're going to make money.

Wed, 12/12/2012 - 15:54 | 3056979 Comay Mierda
Comay Mierda's picture

How do you say QE in Japanese?

Wed, 12/12/2012 - 15:59 | 3056999 michiganmaven
michiganmaven's picture

Fukushima !

Wed, 12/12/2012 - 16:01 | 3057012 YuropeanImbecille
YuropeanImbecille's picture


Wed, 12/12/2012 - 16:03 | 3057020 helping_friendl...
helping_friendly_book's picture

fraud san

Wed, 12/12/2012 - 16:07 | 3057044 El Viejo
El Viejo's picture

Mo Yen

Wed, 12/12/2012 - 16:17 | 3057083 Steel_Preacher
Steel_Preacher's picture

It translates as Seppuku.



Wed, 12/12/2012 - 15:55 | 3056981 VonManstein
VonManstein's picture

and today would be July 5th on the 2011 scale

Wed, 12/12/2012 - 15:55 | 3056982 Lax Accounting
Lax Accounting's picture

3 years and 9 months and Big Ben still doesn't know the effects of asset purchases. LOL

Wed, 12/12/2012 - 16:22 | 3057110 NotApplicable
NotApplicable's picture


I don't understand why so many people make all of these excuses that only further enable his criminal activities.

He knows to do what he is told. What effects that may have are wholly immaterial to him.

Wed, 12/12/2012 - 16:55 | 3057219 tickhound
tickhound's picture

The FED is doing exactly what it needs to do to keep the NEEDED credit expansion game going.  The system NEEDS borrowing.  The FED MUST offset the lack of credit demand... It is the borrower/buyer of last resort.

To think it would sit back and bring the inevitable demise of its system forward is naive.

That said, the inability to endlessly "grow" will eventually stand up and crush it like a bug.  For now, "the growth model" is just smacking it in the face.  And so the FED reacts.  In the only way it can.

The desired "effect" is to keep the FED as an INSTITUTION.  And 3 years 9 months later, Big Ben remains pleased with this "effect."

Wed, 12/12/2012 - 17:51 | 3057434 Seer
Seer's picture


"The secret plan is that we're going to keep doing exactly what we've been doing, for as long as we can."

- Daniel Quinn, in, "What a Way To Go"

BTW - It's nice to have someone else carrying the batton.

Wed, 12/12/2012 - 18:24 | 3057544 tickhound
tickhound's picture

Baton?  It should be THE FLAG!  ;)

Wed, 12/12/2012 - 15:55 | 3056983 cougar_w
cougar_w's picture

So long as the US central bank has at least one more bullet than every other central bank on the planet, they're fine.

if that figurative "bullet" needs to be an actual bullet, fired from an automatic rifle by a US soldier, that's fine too.

I wonder if this game is Bernanke's to lose. If so, I wonder how I feel about that as an American.

Wed, 12/12/2012 - 16:00 | 3057004 Tsar Pointless
Tsar Pointless's picture

Probably the same way I feel.

Comfortably numb.

Wed, 12/12/2012 - 16:18 | 3057091 InconvenientCou...
InconvenientCounterParty's picture

As long as USD trades for crude oil, you feel "fine".

Wed, 12/12/2012 - 17:52 | 3057441 Seer
Seer's picture

When out hiking you only need to be faster than the person you're with, you needn't have to outrun the bear/cougar...  Moral of the story: slow friends are an asset...

Wed, 12/12/2012 - 15:57 | 3056988 ZeroAvatar
ZeroAvatar's picture

Le H'orror, Le H'orror!


As if a Million fiats screamed out at once, and were suddenly silenced.

Wed, 12/12/2012 - 15:57 | 3056990 zerotohero
zerotohero's picture

Ben fucking shoots blanks and blows zombies.

Wed, 12/12/2012 - 15:58 | 3056995 Hohum
Hohum's picture

And let's not forget an anniversary coming up on Sunday.  4 years of ZIRP!

Wed, 12/12/2012 - 17:54 | 3057445 Seer
Seer's picture

Partee!  It's on me! (just submit the bill to bartender Ben, I'll square it up with him later)

Wed, 12/12/2012 - 15:58 | 3056996 Body of Lies
Body of Lies's picture

It is just so predictable ... I am sure Tyler had his response to the FED's 'action' prepared well in advance. The FED and its agents have gotten really good of goosing the market before the announcements that the announcement is just so normal. I think we should be analyzing the Goose, therein lies the real truth. 

Wed, 12/12/2012 - 16:14 | 3057071 Winston Churchill
Winston Churchill's picture

Isn't that illegal ?

Wed, 12/12/2012 - 16:17 | 3057086 michiganmaven
michiganmaven's picture

Laws dont apply to the well connected

Wed, 12/12/2012 - 16:23 | 3057114 NotApplicable
NotApplicable's picture

Rather, applied by them. Via minions like Bernanke.

Wed, 12/12/2012 - 15:59 | 3056997 j0nx
j0nx's picture

Start handing out those trillions to the people which is what they should have done in the first place to spur growth instead of pissing it down the bankster bad bet black hole. We would still be in the same place at worst and probably much better off with people paying off debt, generating sales in the economy and creating jobs. No we couldn't possibly have done that....

Wed, 12/12/2012 - 17:40 | 3057403 catacl1sm
catacl1sm's picture

Inflation due to velocity of money would offset growth.

Thu, 12/13/2012 - 11:22 | 3059328 j0nx
j0nx's picture

It already has! Have you seen the cost of food and gas lately? If we are going to see inflation in commodities by printing then we may as well give the money to those who will use it instead of padding the pockets of .1 of 1% of the elite.

Wed, 12/12/2012 - 15:59 | 3056998 PUD
PUD's picture





Wed, 12/12/2012 - 15:59 | 3057002 spartan117
spartan117's picture

What would happen if the Fed announced a $450 billion per month Treasury purchase plan?  They aren't out of ammo, they just need a bigger gun.  Stop messing with the 9 already, and move up to a 454.  Cheers mate!

Wed, 12/12/2012 - 16:00 | 3057009 cavsgt
cavsgt's picture


Wed, 12/12/2012 - 16:01 | 3057010 ZeroAvatar
ZeroAvatar's picture

How do you say QE in Japanese?



Wed, 12/12/2012 - 16:04 | 3057029 lemonobrien
lemonobrien's picture

motto kane! motto kane!

Wed, 12/12/2012 - 16:01 | 3057011 Waterfallsparkles
Waterfallsparkles's picture

With the market trading it looks like no one likes what Bernanke did.  Only ones making money today are the HFT Machines.

Wed, 12/12/2012 - 16:01 | 3057013 buzzsaw99
buzzsaw99's picture

they've fukked us up the ass for so long they are impotent now

Wed, 12/12/2012 - 16:01 | 3057016 The Shootist
The Shootist's picture

But what about PM's? Surely they'll do well? Or should we all just start focusing on ammo stockpiles these days?

Who'd a thunk it?

Wed, 12/12/2012 - 16:28 | 3057125 NotApplicable
NotApplicable's picture

Family: What do you want for Christmas?

Me: 12 ga. shells.

Family (later, phoning from the store): What kind?

Me: Whatever you can afford the most of. Lead don't care, and the pump-action round chambering is equally as dramatic.

Wed, 12/12/2012 - 16:03 | 3057021 onewayticket2
onewayticket2's picture

Ben would get a better response if the $45B per month was spent on astroglide...

Wed, 12/12/2012 - 16:06 | 3057040 Gamma735
Gamma735's picture

At least it would be easier on us when Big Ben anally rapes us.

Wed, 12/12/2012 - 16:03 | 3057024 lemonobrien
lemonobrien's picture

we know the game. and we're quietly saying "fuck you" 

Wed, 12/12/2012 - 16:04 | 3057028 TahoeBilly2012
TahoeBilly2012's picture

Things are way too quiet, sumptin' is gonna blow here soon...

Wed, 12/12/2012 - 16:06 | 3057037 ptoemmes
ptoemmes's picture

Thank goodness I am not out of ammo ;-). Come to think of it probably should pick up moar.

Wed, 12/12/2012 - 18:06 | 3057482 Esso
Esso's picture

Moar, bitchez, fuck you ben, etc. ZHbonics.

Wed, 12/12/2012 - 16:06 | 3057038 Stuart
Stuart's picture

They have to be sitting on the gold market hard.  It should have taken off on this news.

Wed, 12/12/2012 - 16:49 | 3057202 Flatchestynerdette
Flatchestynerdette's picture

I get nervous when CNBC hedge fund players tell me that Gold will not be as sparkling this next year and they blame it on lack of growth in China or Europe.


Um, I never bought gold because of those 2 countries and their shenangins. I bought it for the crappola going on in this country.


So if gold hasn't taken off? I've got serious questions as to who are the players that are behind the scenes matching book prices OR have the Chinese really given up and are in trouble? Because if its the later - then the next we should see is China selling Treasuries by the boatload and the Bernanke eating them breakfast, lunch, and dinner to keep those interest rates down.



Wed, 12/12/2012 - 16:07 | 3057043 Freddie
Freddie's picture

Silver & Gold

This was made in 1964.  They had the right idea.  Just before that scum bag LBJ got his Vietnam War and War on Poverty going which both caused massive inflation.



Wed, 12/12/2012 - 16:16 | 3057080 SoNH80
SoNH80's picture

"Frossshty the Snowman...."

At least the big media eventually got on LBJ's butt about the "Credibility Gap" and the "Dollar Crisis" issues.... today, we've got, "4 more years!  Yay!"  4 More Years of doubletalk, kabuki theater, and hiding the ball-- on top of the 49 years we've had since November 22, 1963....

Wed, 12/12/2012 - 16:25 | 3057119 knukles
knukles's picture

So the Big O man is gettin' some special attention?

Wed, 12/12/2012 - 16:30 | 3057139 SoNH80
SoNH80's picture

Madison Avenue, Wilshire Boulevard and Wall Street seem to think he's groovy. Talk about cognitive dissonance, watching teevee these days makes me sick!  And the New York Times?  Best laxative around.


Wed, 12/12/2012 - 16:07 | 3057046 PUD
PUD's picture

Bernanke: Fed has overestimated pace of recovery  NO WAY!!

Wed, 12/12/2012 - 16:08 | 3057048 Essential Nexus
Essential Nexus's picture

Holding rates low until the unemployment rate drops below 6.5% is like saying "I'll stand on your neck until your asthma is fixed."

Wed, 12/12/2012 - 16:08 | 3057049 The Axe
The Axe's picture

and a broken market cares LESS    

Wed, 12/12/2012 - 16:10 | 3057054 ZeroAvatar
ZeroAvatar's picture

This whole ponzi is gonna burn to the ground.  I can smell smoke, now.


"Can you SMELLLLLL what the BERNANK is cookin!"

Wed, 12/12/2012 - 16:09 | 3057055 Quinvarius
Quinvarius's picture

All who bet against easy money and cheap credit will join Kaminsky under my bus.  He doesn't like down there.  You won't either.

Wed, 12/12/2012 - 16:10 | 3057059 delivered
delivered's picture

The play in PMs from CB QE is coming to an end. This was the play of the last decade which witnessed gold increasing from $300+/- to where it stands now at $1,720+/-. Consolidation is taking place and preparing for the next stage which will be led by first, large scale soverign debt defaults (direct or indirect) and then followed by a currency crisis. The problem isn't if but when as it would appear the US has time left to bury the massive amount of SD that will need to be purchased (from federal deficits, international markets selling, and Social Security having to become net sellers). There are still plenty of homes for US debt to bet buried in including the Fed (disclosed today), Fed proxies (banks which will continue to have to park excess funds in so called riskless assets until they are stuffed to the gills), corporate balances across the country with too much cash, and the eventual cram down in retirement/pension programs which will be forced, in one fashion or another, to allocate more and more capital to buying this crap.

So rooms are still available but what I can't figure is do the hotels have a 50% vacancy or 25% vacancy rate. If 50%, it would appear the charade can last a number of years and possibly another decade. If less than 25%, then by 2016, this thing should blow. Whatever the timing, two key strategies would seem to make since. First, accumulate physical PMs on the dips. Second, when the eventual rebalancing does occur, it will be time to exit PMs and acquire producing business assets at once in a lifetime prices.

Wed, 12/12/2012 - 16:18 | 3057093 FreeMktFisherMN
FreeMktFisherMN's picture

The inflation is already there. Certainly in terms of prices going up for people who have to eat and use fuel, but also in the Austrian (and proper) definition of inflation, which is the increase in money supply. Prices rising are a result, but not the inflation itself. Just like in the roaring 20s prices should have fallen more as productivity went up, but instead price 'stability' was the goal, and the malinvestment ensued and people didn't reap the benefits of their productivity, and valuations were messed up. 


The money that is printed is waiting to be unleashed. Any 'growth' will be purely nominal, as people look to use their dollars up in Gresham's Law fashion, and there will be too many moles to whack to keep the facade of 'price stability' and 'minimal inflation' going. There is so much dry tinder out there now. What a disaster. Sadly, the people who are prudently saving will get wiped out as they need to be saving in PMs and commodities, not FRNs. 

There is no precedent for this from a standpoint of a world reserve currency and the inertia that comes with that. But eventually the lack of supply (purchasing power) will assert itself, and production will not be enough for even subsistence, as the price signal mechanisms are so distorted. The dollar can remain strong against other toilet paper, but they all go down in mercantilist fashion together, and hollow out the savings and manufacturing that are the backbone of a strong economy.

Wed, 12/12/2012 - 16:39 | 3057165 Flatchestynerdette
Flatchestynerdette's picture

$18 trillion in offshore accounts from the elites in Cayman Islands sounds like they're keeping their powder dry until they need it for food and fuel.


They can swing it to any reserve currency, march it back in as US$ that has the highest mark to market vs. other country banks and still stay solvent.


I'm not betting against $18 trillion that's sitting in bank accounts...........waiting and not playing in the markets (gold, equities or treasuries).


I guess I'm sitting on my money as well and hoping they don't outlaw the $1 bill for coins or the penny.

Wed, 12/12/2012 - 16:20 | 3057102 LawsofPhysics
LawsofPhysics's picture

Perhaps I am less optimistic I see it like this; The Federal Reserve is a private bank in the business of printing and circulating FRNs.  If the world is going to stop using FRNs (as the recent velocity indicates), then the owners will do the prudent thing and shut the bank down, even if it means they do so in default.  Private banks fail all the time.  The owners and creditors will simply go after anyone or any entity that has an outstanding loan, such as the U.S. treasury.  If you are debt free and have physical assets of real value, no worries, although your neighbors might change soon.   A significant paradigm shift is about to occur, the last time this happened we had WWII and the population ticked back a couple hundred million.  In such "rebalancing" there is nothing you can do aside from keeping your tribe in order.  Knowing where the real battlefront will be ahead of time is also useful.  Uncheck moral hazard has gone on for far to long for this transition to be peaceful, sorry, I just don't see it.

Wed, 12/12/2012 - 16:58 | 3057242 centerline
centerline's picture

LoP, I see it in the same light.  What is happening is on a scale that cannot be compared to anything anyone has seen in thier lifetime.

I am not as concerned about the J6P debt though.  Once the wave really hits, it will be the first X% (dont know what X is) that really gets run over.  After that, it is game over... the Treasury will have been looted and we will be in an entirely different setting.  Rules, laws, whatever can be rewritten at any point to deal with the masses and what they claim to own.  The framework is already in place.  Property as we know it is likely to be redefined, regardless.


Wed, 12/12/2012 - 16:22 | 3057112 Winston Churchill
Winston Churchill's picture

PM's will overshoot at some point.As always timing is everything.

I'm aiming to buy something like a copper mine when the time comes.

"A long term investment is a short term one gone wrong".

PM's will be no different.

Wed, 12/12/2012 - 18:05 | 3057479 Seer
Seer's picture

"First, accumulate physical PMs on the dips. Second, when the eventual rebalancing does occur, it will be time to exit PMs and acquire producing business assets at once in a lifetime prices."

Clearly you understand what PMs are for.  I'd be careful about thinking that mere mortals like us can expect to swoop in and buy up "producing businesses" (let alone understand what those WILL be, with the exception of those who understand the true fundamentals- and stuff here ain't likely going to be for sale).

Things will eventually flatten out.  Problem is, things wi'll likely be SO flattened as to be unrecognizable.

Wed, 12/12/2012 - 16:10 | 3057060 Cortez
Cortez's picture

Ben must be a crack head.  He is still chasing the high from the first hit.

Wed, 12/12/2012 - 16:10 | 3057064 Seasmoke
Seasmoke's picture

three years and nine months later, this is not what i expected .......but i will continue to use this as a window to keep stacking.....thank you Ben ??????????????

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