Global Assured Destruction, Or How Bernanke Now Holds The Entire World Hostage

Tyler Durden's picture

The one headline we have been waiting for for over four years has just hit:


Not when, if. And there you have it: if the Fed exits, the world (and most certainly Japan) gets it. Thus, for the sake of the children (who will have inhert about $100 trillion in debt but don't worry: debt is an asset as some "analysts" will promise) Bernanke can never exit. QE...D

And since never is a litte longer than 2016/2017, at some point in the next few years Bernanke will be the proud owner of all marketable Treasury paper. All of it.

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fonzannoon's picture

He also can't keep at it forever right?

If I was the rest of the world would I rather he exit and have the dollars that have been exported all over the world still have some value even though The U.S ends up in depression or would I rather the print themselves into hyperinflation and have all those dollars be worthless?

Burt Gummer's picture

Stuck between a printing press and an interest rate rise hard place. Fucked if you print, fucked if you don't, hedge accordingly.


Beam Me Up Scotty's picture

Fonz, if I was the rest of the world, I would dump my dollar holdings for something of real value, as fast as I could without scaring the sheep awake.  Kinda like China is doing.  They can use those dollars to acquire things that have use or utility.  Then I don't care if he prints the wheels off the car.

fonzannoon's picture

Exactly because China seems to know where this is going. Some other countries I guess not so much.

FL_Conservative's picture

"And since never is a litte longer than 2016/2017, at some point in the next few years Bernanke will be the proud owner of all marketable Treasury paper. All of it."



markmotive's picture

JGBs have yielded <2% for 15 years. 'IF' is definitely the right question to ask Bernanke.

Crisismode's picture




How much longer can this go on?


Please . . . someone . . . give us a date.



FEDbuster's picture

"at some point in the next few years Bernanke will be the proud owner of all marketable Treasury paper. All of it."

Bennie can have all the paper except my toilet paper.   I will keep my beans, bullets and bullion, fuck you very much!

markmotive's picture

Wanna know what happens when everyone races to the bottom?

1 hour of Kyle Bass:

Cdad's picture

Funny...the concept of "rate risk" as applied by the shallow thinkers of these desperate economic times...simply means...a real market for risk might emerge.  And the very concept of that terrifies the current kleptocracy on Wall Street, in Japan, across the entire continent of Europe.

What does that tell you, folks?  It tells me that we must redouble our efforts in the War on Markets.

Thank you, Ben Bernanke, for this wasteland you have made for us.

espirit's picture

Berspanky is holding the Krudmeisters deek.

jeff montanye's picture

and in the spirit of original thought on hostages breaking the hold of the terrorists: what might help the other semites (palestinians) from israeli anti-semitism?  could it be bitcoin?

Harlequin001's picture

but that's always been a mathematical certainty.

and it doesn't take the brains of a rocket scientist to work it out, as any ZH'er or gold bug will tell you.

Don't hedge, buy gold, while you still can...

Manthong's picture

Sáncte Míchael Archángele, defénde nos in proélio

fourchan's picture

i suspect the bubble market in stocks is actually the banks buying since 2009 with their zirp funds
they received these funds from the fed in exchange for all the bad mbs and god knows what else. 
so we the tax payer now own mbs trillions worth, the banks own all the productive companies and 
we the people are all debt slaves. 

the fed res "system" is working perfectly as it has for the last 100 years. 

what is the definition of treason?

Manthong's picture

could it have anything to do with a layered Adobe Illustrator graphics file compiled as a pdf  and posted as a scan  of an official government document on a certain white house web site on April 27, 2011?

get a freaking clue..  and then consider the definition of the word "licit".


double crap.. enduring the few seconds of ad is essential to getting an important message


Boris Alatovkrap's picture

Boris is recommend to parse PDF (use and see 20+ stream object in simple document scan. Ask why is to separate image element? Why is JPEG artifact to differ from object to object? Why is microfiche image overlay on green security paper?

Amerika is not Super Power, is Super Gullible.

But what is Boris know!?

Boris Alatovkrap's picture

Other interesting question for curious Amerikan Patriot...

1) Why is JFK issue EO 11111 and is blow back of head 6 month later?

2) Who are man on Grassy Knoll and how to make zig-zag bullet? Who is man on 6F of depository?

3) Where now is $US 5 Treasury Note for Silver Backing?

4) Why is Vietnam Diem be assassinate 30 day before JFK?

5) Why is Tonkin Gulf fake flag after JFK?

6) Why is Apollo 16 (19 hour mission) photo log to contain 1,200 Hassleblad 120mm photograph (weight of film canister = 20kg), 1,000+ 35mm, and 2 hour of 8mm motion, and how his full dress astronaut change film 100+ time? (Very busy astronaut, maybe is "astro-not":)

7) Why is Hinckley attempt blow hole in Reagan thoracic cavity 30 day after Ronnie is threaten for removal of Volker and then suddenly best friend of Fed!?

8) Why is Brittany Spear cut hair in crazed frenzy?

Boris is want to know!

Boris Alatovkrap's picture

More question for gullible Amerikan...

What is deal for Grandma Obama!? Obama is visit before election in Hawai'i and is sudden to death!? WTF? Is police check grandma pillow for sign of struggle?

old naughty's picture

u got it, Boris...plot upon plot upon plot...

now WE 'let' muppets know but still no awaken !

WE are supreme...the rest is irrelevant.

Manthong's picture

crazy conspiracy theories.. 

almost as crazy  as to how Hillary turned $1K into $100K in shrewd one –off cattle futures deal , how TWA 800 blew up over the US Navy during targeting training in busy air corridor one month before Clinton re-election in 1996 or the IRS suppressing information targeting certain groups before Obama re-election in 2012.

Oracle of Kypseli's picture

Maybe if all the paper is held by the FED, we won't have to get rid of it. It would go out of business. Karma

GMadScientist's picture

Okay, but you have to promise to put out.

Groundhog Day's picture

Didn't Bush have a freudian slip once and say the sosial security trust fund has a bunch of "worthless IOU's" when refernecing Us treasuries 

tickhound's picture

ZOMFG don't dare you say.  There's an ebb and flow here at zh.  We're in the ebb....

Leave it to Japan to spell it out for all the neocons the rest of us wonder why are here....

This is for you.  I said,



Panafrican Funktron Robot's picture

"China seems to know where this is going. Some other countries I guess not so much."

I think they all know where this is going.  The axis/allies binary is coming into view here with rapidly improving clarity.  South Korea is solidly in the US/UK camp, and what looks like a warning is actually cheerleading.

ballafun's picture

There is nothing to do with Which Country knows or not knows or what not... since all political leadership and Central Baningship are bothered about their POCKCETS... and not about Country's pockets...

DaveyJones's picture

China knows where its going cause they've already been a lot of places.

I think most folks in the know know. Some have more integrity than others

That said, I still don't get our idiots strategy. Other than world hatred, a tired military, and a fat, selfish and lazy populace, what assets do we have? 

Al Gorerhythm's picture

Perceptions are funny things. The perception of value has different meanings to different people. For instance, the value of the dollar in a foreigners hand is zero, because they can't spend it in their own country. Hell, the Chinese and Arabs found that they couldn't spend them in the US! (remember the container ports and Unical attempts to dis-hoard).

How can money lose its purchasing power and legitimacy just by crossing a border? Perceptions. Unload them to the patsy next door if you can.

Lordflin's picture

My God! Think of the trees! Wait... they don't actually print anymore, do they? Well, never mind then...

Ness.'s picture

Maybe that's why lumber prices are falling.. they sure at hell ain't building any houses.

Demonoid's picture

FRNs are actually printed on paper made from cotton.

Which brings to mind the ad line "Cottonelle - It's Cottony Soft!" for some odd reason....

cloudybrain's picture

they make a fancy toilet papers

Goldbugger's picture

Watch China they are buying real assets, the next worldwide currency will be based on  real assets. 

Commdities..... when the SHTF.

Everybodys All American's picture

This can go on for a while. A long while sometimes. But I'm afraid something is going to break because things never go quite as planned. When that break happens Bernanke better be able to run fast. Very fast.

Charles Nelson Reilly's picture

This is a monetary abortion of epic proportions... Thanks Bernanke, you fuckface!

Mrs. Haggy's picture

I barely even judge Bernanke on what he's done in the Fed anymore.  My judgement lies with his very first step.  Who is dumb enough to take that position in the state it was in?  Greenspan was getting the hell out and just looking for a sucker.  Enter Bernanke.  Anyone dumb enough to jump in had to be a brainwashed mess of keynesian economics.  There will always be a Bernanke out there, the problem is that we allow a system where Bernank-tards get to make decisions.

Arrowflinger's picture

The High Priest of Kooksian Economics will stumble. The savages will overtake him.

Then he will wish he could go back to being Pedro at South of the Border.

PiratePawpaw's picture

It works until suddenly it doesnt. The operative word is suddenly.

Keep some cash(powder) ready for opportunities while it works.

Put everything else in hard assets for when it doesnt.

If you read between the lines and behind the scenes, that is what the smart money has been doing for a while now.

Im not all that smart, and I dont have that much money; but I did stay in a Holiday Inn Express.....................

Right-on Left-off's picture

To the 'Fonz'

He also can't keep at it forever right?

Sure they can.  The end game is, they own all sovereign debt (Treasuries) and the yield is astronomical as well as the payment towards that yield which is from the taxpayers in the form of Federal Reserve Notes which will be used nowhere else but to pay the debt or realistically the interest which of course is the yield.  Talk about a circle jerk.

However, they like you and me, if we are both smart have, we have already used that worthless circle-jerk money to buy tangibles as the Elites are doing.  Anybody notice that gold and silver are pretty hard to find?

And at that juncture there will either be full bartering or a new currency and I am sure that new currency will not be something from a Central Bank.

Only the mindless, stupid, ignorant fools would go along with another Central Bank currency now seeing what such a currency brings in the end.

BandGap's picture

When Japan crumbles we will pick up the pieces, or at least try to. That's the problem with chaos. It's chaotic.

espirit's picture

If Japan has any tangibles left, they're going to be pretty "hot".

Diogenes's picture

When their end of the boat sinks we will be the ones who don't drown.

bubblemania's picture

Bernanke met privately last week with House Oversight and Government Reform Committee Chairman Darrell Issa and other lawmakers to discuss the central bank’s efforts to stimulate the economy and how it could exit this strategy in the future, according to people who attended the meeting.


According to this article, none of the attendees are talking and the meeing was in regards to the exit strategy and potential risks of ongoing QE.

Sounds like a conspiracy.



Everybodys All American's picture

These crooks want to know what to frontrun.

bubblemania's picture

Perhaps, but they did send Ben a nast letter back in February, that received little to no press except for a blurb on bloomberg. Something's up, its a bit unusuall for a private meeting the week before he testifies..

GMadScientist's picture

Issa caught sight of a camera and trampled three infants trying to get in-frame.