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

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
sbenard's picture

Obamalaise - the Ennui Economy!

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.


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.

nope-1004's picture

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

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?

icanhasbailout's picture

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

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.

camaro68ss's picture

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

tsx500's picture

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

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.

Esso's picture

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

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!)

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.

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.

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

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...


...it 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.

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)

El Oregonian's picture
Out Of Ammo?

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

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.

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.

Piranhanoia's picture

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

jimijon's picture

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

Seer's picture

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

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.   

spinone's picture

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

Imminent Collapse's picture

We'll just do it until we need glasses.

El Viejo's picture

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


Boggles the mind.

sbenard's picture

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

boogerbently's picture

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

....comfortably numb.

Chuck Walla's picture

Obamalaise is great on a shit sandwich!



TruthInSunshine's picture

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

EscapeKey's picture

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

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."

tickhound's picture

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

hedgeless_horseman's picture



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

kliguy38's picture

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

Winston Churchill's picture

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

anything but Benbux.

Seer's picture

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

RIP Bud Williams (http://stockmanship.com/?p=1636)

Squid Vicious's picture

PPT stepping in right here, can't have a red Fed day....no f'in way jose

Debtless's picture

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

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. 

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".

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).

Enceladus's picture

fwiw 85b x 12 = 1.02t

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

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