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Deja Lu, All Over Again

Tyler Durden's picture


In what year was the following written:

The Federal Reserve appears on track to buy the entire [amount of] government debt it has committed to purchase, barring a sharp, unexpected shift in the economy's prospects.


If anything, lingering weakness and renewed concerns about global credit markets may lead top officials to lean toward doing more rather than less.


Policymakers would not likely have committed to a significant upfront figure if they saw the possibility that they would need to change course shortly thereafter. Instead, officials view the move much like traditional interest rate cuts, which are rarely taken back so rapidly.


A recent batch of better-than-expected economic data, including a relatively upbeat reading on the job market, has raised questions about whether the Fed acted prematurely in pulling the trigger...


The Treasury market has been selling off sharply, in part as a response to the somewhat brighter landscape.

The answer: 2010. The 10 Year back then was 3.40%.

But yes, baffle 'em with enough BS, and three years later everyone will forget that the "Taper" is nothing new, that it happens every year or so, and that without fail it is accompanied by a "sharp bond sell off" as a "response to the somewhat brighter landscape" only for central planning to go right back to doing the only thing it can do: buy everything without consideration for cost or market liquidity once the mirage fades all over again.

* * *

And a bonus, from the same Reuters article:

Whether the Fed's bond-buying policy, also known as quantitative easing or QE, will enter a third phase when the $600 billion in purchases is completed in June is another matter.


A hawkish tilt in the composition of voting members on the Federal Open Market Committee, where regional Fed bank presidents rotate in and out each year, will make consensus harder to come by in 2011.


The chorus of opposition to the policy, both internationally and domestically, could also restrain further Fed buying.


However, since the financial crisis sent the economy into its deepest recession, the Fed has shown a propensity for erring on the side of doing too much. Its influential chairman, Bernanke, has argued that Japan's fatal error was being too meek in its approach to unconventional easing.

Time to look forward toward not only the Untaper, but to QE5 (or is it 6? does anyone care as long as 'stocks' are up?), only this time with Janet Yellen hitting the print button.


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Tue, 06/18/2013 - 13:03 | 3668659 KnightTakesKing
KnightTakesKing's picture

MOAR printing!

Tue, 06/18/2013 - 13:04 | 3668670 The Gooch
The Gooch's picture

MOAR Kevin.

Tue, 06/18/2013 - 13:12 | 3668687 flacon
flacon's picture

Fed is going to TAPER.... They need to preserve their dry powder for a later date. They don't have to be a hero in June... 


Obama threw Bernanke under the bus already in anticipation of the TAPER. It's going to be an exciting few minutes on the trading floor when the news comes out. 


I am loaded with JPM and IWM puts. ALLLLLLL INNNNNN!


How did that Russian guy do on his FB stock? He bought ONE MILLION DOLLARS back when FB was at $27. "ALLLL INNN!"

Tue, 06/18/2013 - 13:13 | 3668712 Popo
Popo's picture

People seem to have forgotten that Greenspan also claimed he was going to end QE.   And he actually started to.. and then the biggest crash in the history of finance happened.   Greenspan retired and handed the printing press to Bernanke.  

Funny how these assholes always claim to be "about to get responsible" just before they retire.  

Tue, 06/18/2013 - 13:31 | 3668767 flacon
flacon's picture

Today may be the greatest opportunity to bet against the markets. Let's see how this turns out, but I think looking back on today there will be many who wished they had initiated puts today. 

Russell 2000



Tue, 06/18/2013 - 13:48 | 3668842 Groundhog Day
Groundhog Day's picture

If they do not taper, which is likely considering they can't, the market will fly tomorrow.  Those puts will disintegrate tomorrow.  I don't mean to burst your bubble but the shorts continuously get burned in this game.  It would be wiser for the news to come out and trade after, ou'll make less, but won't lose your shirt if your wrong on your black or red outcome.

Tue, 06/18/2013 - 15:13 | 3669128 SteveNYC
SteveNYC's picture

No way dude, more of the same. Careful with those puts.

Tue, 06/18/2013 - 16:13 | 3669269 TriggerFinger
TriggerFinger's picture

I'm too lazy to scroll all the way down.... has anybody said 'Fuck You Yellen' yet?

Tue, 06/18/2013 - 13:25 | 3668752 NotApplicable
NotApplicable's picture

Save dry powder? You must not be noticing the ever decreasing half-life of their actions.

What they're doing instead is to increase the velocity of BS in ALL directions, in order to counteract their otherwise ineffective machinations.

You ever watch an out of balance washing machine? What do you do? Open it up, rearrange stuff, and try again, hoping to achieve the moment when the centrifugal force is overtaken by inertia. But it only happens when a high enough velocity is achieved.

Of course, Ben can't stop the machine, or rearrange anything. All he can do is to throw more stuff in on the unbalanced side in an effort to maintain inertia. Never mind the fact that he cannot help but to overload the system. That'll happen some other day.

Tue, 06/18/2013 - 13:09 | 3668693 max2205
max2205's picture

market is melting up again today

Tue, 06/18/2013 - 13:23 | 3668745 flacon
flacon's picture

Buy puts, make money.

Tue, 06/18/2013 - 13:14 | 3668710 Yen Cross
Yen Cross's picture

     MOAR {shite/fractional reserves}, to shovel!

Tue, 06/18/2013 - 13:18 | 3668729 TheFourthStooge-ing
TheFourthStooge-ing's picture

Don't forget to bring your hip waders.

Tue, 06/18/2013 - 13:25 | 3668748 Yen Cross
Yen Cross's picture

  TheFourthStooge-ing    I'll be standing right along side of you, holding up the dam.

Tue, 06/18/2013 - 13:37 | 3668800 Lore
Lore's picture

Tapering is important. Imagine how your ass would snap shut without tapering.

Tue, 06/18/2013 - 16:07 | 3669247 This just in
This just in's picture

Plus the tapering helps to channel the headwinds while rapidly approaching the fan.

Wed, 06/19/2013 - 01:10 | 3670486 Lore
Lore's picture

Exactly. We're being tasteless, but the glib jargon for all these stupid programs might just as easily refer to bodily functions. When will central bankers call a spade a spade?

Tue, 06/18/2013 - 13:16 | 3668718 kentfinance
kentfinance's picture

ah yes...but with bonds selling off they get to buy at better levels...see?

Tue, 06/18/2013 - 13:43 | 3668829 SheepDog-One
SheepDog-One's picture

Pure fucking fantasy.

Tue, 06/18/2013 - 13:03 | 3668662 slaughterer
slaughterer's picture

QE-YD (Yellen/Dudley) 2014 is a coming.  USA is going Japanese.

Tue, 06/18/2013 - 13:36 | 3668798 SmallerGovNow2
SmallerGovNow2's picture

I really think so....  (-:

Tue, 06/18/2013 - 13:04 | 3668664 TruthInSunshine
TruthInSunshine's picture

Yellen be gellin' just like Ben the fleeing felon as the CronyComrades demand MOAR!


Tue, 06/18/2013 - 13:04 | 3668672 resurger
resurger's picture


Tue, 06/18/2013 - 13:10 | 3668697 insanelysane
insanelysane's picture

Tylers, We need a Where's Ben going? poll.

Tue, 06/18/2013 - 13:13 | 3668711 slaughterer
slaughterer's picture

The Japanese are going to buy Bernanke from Obama for $5 trillion,  download all of Bernanke's mind, and put his body in a cryogenic chamber.

Tue, 06/18/2013 - 13:28 | 3668757 smlbizman
smlbizman's picture

bens going to pull off that fake fucking beard and rubber  face, revealling  himself to be maxine waters......

Tue, 06/18/2013 - 14:24 | 3668984 caimen garou
caimen garou's picture

I disagree, I think he is pee-wee herman

Tue, 06/18/2013 - 15:10 | 3669110 TruthInSunshine
TruthInSunshine's picture



Greenspan's bubbles sat on a wall

Greenspan's bubbles had a great fall

All Bernank's fiat & all Bernank's Madoffs

Failed to truly reflate those bubbles before the revenge of the write offs


#KeepObamaBundler&Ex-CEOofGoldmanThe"Honorable" Jon S. CorzineFreeProject


Tue, 06/18/2013 - 13:04 | 3668666 resurger
resurger's picture

There will be no walls in Wolfstreet.


Tue, 06/18/2013 - 13:04 | 3668668 cloudybrain
cloudybrain's picture

save toilet papers

Tue, 06/18/2013 - 13:04 | 3668669 Midasking
Midasking's picture

Why can't we just give everyone a trillion dollar coin so we can move on from the QE and get back to more shopping!

Tue, 06/18/2013 - 13:04 | 3668671 madbraz
madbraz's picture

Finally a spot on article on QE and the Fed BS behind it.  Despite QE, implied inflation expectations have dropped in the last 2 months.  Absent QE, the 10 yr goes below 1.5% again.  With a market correction (20% or more), it goes below 1%.





Tue, 06/18/2013 - 13:30 | 3668764 Panafrican Funk...
Panafrican Funktron Robot's picture

"Absent QE, the 10 yr goes below 1.5% again."

Tenuous assumption, keep in mind, QE boosts both stocks AND bonds.  $45 billion a month in UST purchases is present case, if that were to ever go down, the 10 year would probably go up in yield (even with an equity pullback).  

Tue, 06/18/2013 - 13:06 | 3668681 JustObserving
JustObserving's picture

US debt and unfunded liabilities are $141.6 trillion and rising at $8 trillion a year.  It is impossible for the Fed to taper under such conditions.

Tue, 06/18/2013 - 13:10 | 3668698 yogibear
yogibear's picture

tick, tock like a bomb. Just a matter of time.

Wed, 06/19/2013 - 00:58 | 3670473 MisterMousePotato
MisterMousePotato's picture

@JustObserving ... you fail to mention the trillion or so each year that the feds are spending as we speak just to keep places like Detroit and Memphis from ...



Tue, 06/18/2013 - 14:43 | 3669045 Dapper Dan
Dapper Dan's picture

You are frightening to children,  please cease and desist!

Do Not Worry !!

Do Not Worry !!



And remember kids, they're fighting for our freedoms, but only some of them.                  (the freedoms,  that is)

Tue, 06/18/2013 - 13:07 | 3668682 JJ McApe
JJ McApe's picture

Ben is out of bullets and the dragon of no job growth due to excess regulations and excess
Government has not been slain. The speculation is very reminiscent of 1929.

Tue, 06/18/2013 - 13:34 | 3668783 SmallerGovNow2
SmallerGovNow2's picture

you nailed the two biggest problems when it comes to future growth.  cannot happen without repeal of massive regulatory burden (including simplifying the tax code) and reduction of the size and scope of the federal government...

Wed, 06/19/2013 - 01:06 | 3670481 MisterMousePotato
MisterMousePotato's picture

So I walk into my little Sierra foothills town hall to pay the water bill. (Up about 400% in the last 15 years [they finally figured out a way to force people to fund their pensions].)

Anyway, in an idle moment, I picked up their "Welcome to [Paradise]" brochure to look at while waiting.

It consisted of no less than 40 or 50 pages of utter beaurocratic crap that one had to go through in order to open a business. This license. That permit. Those permissions and inspections and reviews.

Now, to sure, each page was only five and a half inches by eight and a half inches (letter sized paper folded in half), but 40 freakin' pages!?!

Fuck 'em. They've made it impossible.

Wed, 06/19/2013 - 08:26 | 3670828 swiss chick
swiss chick's picture

Same goes for France...

Tue, 06/18/2013 - 13:07 | 3668686 crzyhun
crzyhun's picture

“2010 is whatever the records and the memories agree upon.” GO 1984

Tue, 06/18/2013 - 13:08 | 3668689 BadKiTTy
BadKiTTy's picture

I keep thinking I cant take any more of this...... and then I have to tell myself that this is the way things are, and nothing will change.  

Ignorance is indeed bliss.......I wish I could go back to having my head in the sand! 



Tue, 06/18/2013 - 13:28 | 3668755 NotApplicable
NotApplicable's picture

Try some meth. I hear it cures everything that's wrong with society.

Tue, 06/18/2013 - 13:33 | 3668777 SmallerGovNow2
SmallerGovNow2's picture

not sure about that but i'm leaning pretty heavy on the alcohol crutch...

Wed, 06/19/2013 - 01:07 | 3670483 MisterMousePotato
MisterMousePotato's picture

Looks like I picked a bad decade to quit sniffing glue.

Tue, 06/18/2013 - 13:08 | 3668690 yogibear
yogibear's picture

"With doing more"

The Fed has infinite printing to counter-act  deflation. That's what it's doing.

Rather than let markets adjust to rid all the excesses, it's increasing the excesses.

Oh, this should end well (sarc).

Tue, 06/18/2013 - 13:08 | 3668696 slaughterer
slaughterer's picture

Today = FOMC pre-ramp.

Overnight futures shows the fabric of the half-time leaks as the informants and snitches relay their illegally-attained info to the Squid/Whale. 

Tue, 06/18/2013 - 13:11 | 3668700 Wanton1
Wanton1's picture

Magnetosphere weakened by 50% in last two years.  

Earth's magnetic field is 1/2 gauss .... down from 300 gauss 250 million years ago.  

Earth lost 70-80 % of its magnetic field in the last 4,000 years.  


Tue, 06/18/2013 - 13:16 | 3668720 Frank N. Beans
Frank N. Beans's picture

are you suggesting a link between Earth's magnetic field and QE? 


Tue, 06/18/2013 - 13:17 | 3668726 El Viejo
El Viejo's picture

Uh correct me if I am wrong, but when the Earth's magnetic field disappears the next solar flare coming this way will blow away the earth's atmosphere just like Mars.

Tue, 06/18/2013 - 13:20 | 3668732 ParkAveFlasher
ParkAveFlasher's picture

Yeah, gold won't save you when YOUR FACE MELTS OFF.

Tue, 06/18/2013 - 13:36 | 3668788 Terminus C
Terminus C's picture

Yu huh!

I'll use it to shield mah face bitch!

Tue, 06/18/2013 - 13:36 | 3668796 insanelysane
insanelysane's picture

I think we used up all of the magnetivity.  It isn't a renewable resource.

Tue, 06/18/2013 - 14:08 | 3668920 ParkAveFlasher
ParkAveFlasher's picture

Peak magnetivity, then?  No wonder I can't get anything to stick to the fridge.

Tue, 06/18/2013 - 14:13 | 3668946 El Viejo
El Viejo's picture

They use magnetic ink on US currency. Hmmmmmmm. That's where it went.

Wed, 06/19/2013 - 01:08 | 3670484 MisterMousePotato
MisterMousePotato's picture

WTF are you guys talking about?!?

Tue, 06/18/2013 - 13:22 | 3668740 Ham-bone
Ham-bone's picture

Bullish!?!  You saying go long FB?>?

Tue, 06/18/2013 - 15:35 | 3669166 adr
adr's picture

That happens when the Earth is going through a pole reversal. We are overdue for one and it is most likely happening right now.

Tue, 06/18/2013 - 13:13 | 3668708 Inthemix96
Inthemix96's picture

The wife has gone and bought some of that expensive Swedish furniture today and asked me to unpack it, I used a brand new stanley knife and gave myself a right fucking fright.

I damn near slit me shelf.


Chin up bitchez, just remember, you aint waking up in the morning knowing you are the bernsplank.  Evil little dwarf cunt.

Tue, 06/18/2013 - 13:18 | 3668727 ParkAveFlasher
ParkAveFlasher's picture

Terrorist attack = thwarted.

Tue, 06/18/2013 - 13:13 | 3668709 yogibear
yogibear's picture

Print baby print until a currency crisis. End game for the US and Fed.

Bernanke, Evans, Dudley and Yellen, how's it feeling being trapped continuing the insanity with no way out?

Tue, 06/18/2013 - 13:14 | 3668714 assumptionblindness
assumptionblindness's picture

So, I think that I have figured it out.  All of these QE "thingies" have been about putting a lid on the bond markets...I get it - volatility in stocks GOOD! Higher interest rates BAD!!!

Maybe it's time to finally give up on the fear of 'bond vigilantes', 'mean reversion', and 'unlimited deficit spending'...who gives a shit anyway?!  MMT is the new quantum physics and spooky action of economics.

I want to beat the shit out of my Econ101 professor!  Supply and demand theory spouting mother fuckin' liar!

Tue, 06/18/2013 - 13:34 | 3668782 NotApplicable
NotApplicable's picture

I hope to someday ask Stanley Fischer to sign my econ book that he wrote, then beat him upside the head with it.

Of course, I want to do the same thing with my copy of George Reisman's, Capitalism. I expected this to be one of the greatest books ever, but I couldn't make it past chapter two and his fucking preaching about "good citizens."

Whaaaa... tell me again what economic theory has to do with the mafia that runs the world???

Tue, 06/18/2013 - 14:16 | 3668951 El Viejo
El Viejo's picture

Those who can do.  Those who can't  Teach  or become a manager.

Tue, 06/18/2013 - 13:17 | 3668717 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Someone needs to make good use of the PRISM program and hack into it to get the contents of Bernanke's and some of these other slimebags like Dimon, Blankenstein, Soros etc and leak that..... It might just break the Marxist controlled capture of a few large corporations, regulators in their respective industries and political enablers in the hybrid marxist government/crony faux capitalist (corporate style) that is turning this country into Amerika. Will the free markets be restored who knows but fuck it enough is enough.

Tue, 06/18/2013 - 14:09 | 3668923 Joe Sixpack
Joe Sixpack's picture

Already done. How do you think they get them to do the stupid things that ruin their institutions that they do do?

Tue, 06/18/2013 - 13:20 | 3668719 slaughterer
slaughterer's picture










Tue, 06/18/2013 - 13:22 | 3668739 fonzannoon
fonzannoon's picture

and 3 trillion dollars later gold rapidly heads down towards 2010 prices.

makes sense.


Tue, 06/18/2013 - 13:29 | 3668760 SmallerGovNow2
SmallerGovNow2's picture

When does it break fonz?  gold price and fed balance sheet are diverging when they have always moved in tandum.  how big can the fed balance sheet be?  when is it riddiculously high that it will crumble under its own weight? 

Tue, 06/18/2013 - 13:36 | 3668797 fonzannoon
fonzannoon's picture

I am pretty sure that you feel the same way that I do. I am almost certain that I hold this whole thing in the palm of my hand. Equities will keep rising parabolically and precious metals will just keep heading towards lower and lower levels. Real estate will keep going up and interest rates will start falling again. Nothing bad will happen. It will go on like this while I punish myself and those around me with my awful, ridiculous negaitve sentiment. I will lose clients, friends etc. I will become so angry and jaded and vicious that I will start picking on other posters here and getting into fights on here just out of pure anger. Finally I will sit back and come to the understanding that this was not about the market. This was not about the economy. This was about me. My psychology. My inability to see any positive aspect of anything. My need to believe that we were always on the cusp of some sort of collapse.

Upon coming to that realization I will sell any PM's that I have, change my whole investment thesis, and allocate my capital the way that everyone else has. I can finally start a new beginning the right way.

That exact moment is when everything that I feared will come true.

Tue, 06/18/2013 - 13:41 | 3668816 SmallerGovNow2
SmallerGovNow2's picture

I've had thoughts of entering the stock market.  Then I look back to 2008 when i got burned, then go "nah".  Been dabbling in gold and silver coins mostly for 20 years.  Think i'll stay that way.  Worst case is my son can inherit them...

Tue, 06/18/2013 - 15:00 | 3669094 MichiganMilitiaMan
MichiganMilitiaMan's picture


Tue, 06/18/2013 - 16:14 | 3669272 KnightTakesKing
KnightTakesKing's picture

Fonz, I see the time spent in that FEMA camp did you some good. Now you are thinking like a true patriot again.

Tue, 06/18/2013 - 13:39 | 3668790 Ham-bone
Ham-bone's picture

A very simple answer = ESF

The U.S. Exchange Stabilization Fund was established at the Treasury Department by a provision in the Gold Reserve Act of January 31, 1934. 31 U.S.C. § 5117. The fund began operations in April 1934, financed by $2 billion of the $2.8 billion paper profit the government realized from raising the price of gold to $35 an ounce from $20.67. The act authorized the ESF to use its capital to deal in gold and foreign exchange to stabilize the exchange value of the dollar. The ESF as originally designed was part of the executive branch not subject to legislative oversight.

The Gold Reserve Act authorized the ESF to use such assets as were not needed for exchange market stabilization to deal in government securities. The Fund had no statutory authority, however, to engage in other activities that it began to undertake.[citation needed] The principal such extraneous activity it devoted itself to was lending dollars to politically favored governments.

A change in the law, in 1970, allows the Secretary of the Treasury, with the approval of the President, to use money in the ESF to "deal in gold, foreign exchange, and other instruments of credit and securities."[5]

On September 19, 2008, U.S. Treasury Department announced that up to $50 billion in the ESF would temporarily be made available to guarantee deposits in certain money market funds.[8]

Lets just say there is infinite fiat in the ESF to do the executive branches bidding with no oversight.  Period. 

Tue, 06/18/2013 - 13:23 | 3668744 Yen Cross
Yen Cross's picture

   Great post! +1   Oh, by the way, how's that usd/jpy short working out for you?

Tue, 06/18/2013 - 13:26 | 3668749 fonzannoon
fonzannoon's picture

Me? I still have a small japan short yen play on. I will keep it and just forget about it.

Tue, 06/18/2013 - 13:34 | 3668773 Yen Cross
Yen Cross's picture

    Fonz, I said in an earlier thread that the usd/jpy long was over until after the Fed.  I also said that I was looking to long the aud/usd. (aud is a commodity currency) I also bought some MOAR silver.

      My comment was directed at slaughterer.  His Friday comment about usd/jpy going to 93.

Tue, 06/18/2013 - 13:37 | 3668802 fonzannoon
fonzannoon's picture

Good I am glad it was not directed towards me because as you can see by my was another way of saying "I'm getting killed".

Tue, 06/18/2013 - 14:53 | 3669067 Yen Cross
Yen Cross's picture

  I upvoted you. slaughterer +1  I think you have good intentions. The serial junkster is just 'cannon fodder'.

Wed, 06/19/2013 - 01:11 | 3670488 MisterMousePotato
MisterMousePotato's picture

People seem to forget ... there are a lot of letters (and words) that come after "Q."

And even when we use up all those, well, what's not to stop us from starting all over again? Yay.

Also, the Latin alphabet is not the only one out there.

Tue, 06/18/2013 - 13:34 | 3668775 MichiganMilitiaMan
MichiganMilitiaMan's picture

Why do we even have a Fed Chairmen and Fed Govenors anymore?  (I know rhetorical question)  Why not just create a HFT algo that factors all this shit including headlines, BLS, PPI, CPI, GDP and its revisions, and the elites desired voting outcomes for the next election cycle, and get rid of the Fed and it's appartus.   It would then spit out factors or solutions that indicate what the interest rates and amount of QE should be each month.   By the way it could be open source for transparency.


Just a thought-

Tue, 06/18/2013 - 13:36 | 3668792 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

2010 began w FED balance sheet at 2.2 trillion. 2011 started at 2.4 trillion. Now at 3.4 trillion, as per FRED.

Shoot for 5 trillion, it's a nice even number.

A pause here and there ...

But they're going to have problems, the bigger it gets, the bigger the imbalances.

Tue, 06/18/2013 - 13:48 | 3668846 newworldorder
newworldorder's picture

There are only 2 courses of action that the FED can take

1.  Real Economic growth, based on worldwide economic conditions will pick up quickly, unemployment will improve and debt will be wound down. OR

2.  The current slog of US and Worlwide economic /finance system with all the known propaganda variables will persist. The FED has little if any wiggle room, under scenario #2 as the Finance system must be preserved and the US deficits have to be funded.

The only unconteplated variable is an Economic/Financial reset. Will they even try to return to honest economic, market driven financial systems or wait untill there is economic anarchy world wide?

Will they go for controlled change or instant change as a result of financial and social collapse?

Tue, 06/18/2013 - 13:51 | 3668853 MFLTucson
MFLTucson's picture

A recent batch of better-than-expected economic data, including a relatively upbeat reading on the job market, has raised questions about whether the Fed acted prematurely in pulling the trigger...


Ok, enough of the fuckin lies.  The unemployemt report was a disgrace.  122,000 of the 175,000 jobs wer low paying, how in the hell is that good news?

Tue, 06/18/2013 - 15:03 | 3669106 newworldorder
newworldorder's picture

Its good news as long as most people buy it. The American public is not known for understanding "nuance or context."

Tue, 06/18/2013 - 13:52 | 3668856 insanelysane
insanelysane's picture

Heading into the 2014, the incumbents (repub and dems) need the economy to be "picking up."  This is done by simply tapering for the rest of 2013 which will reveal the true state of the economy.  At the beginning of 2014, the incumbents pass some legislation that does jack squat but at the same time the Fed turns on the QE spigot and voila, an economy that is picking up.

Tue, 06/18/2013 - 14:07 | 3668916 Don Levit
Don Levit's picture

I learned recently that when the Fed buys tTeasuries, it is an asset on its balance sheet, with a corresponding liability  -  the increase in debt held by the public.  This is the same financial dynamic whether the purchaser is the Fed or China.

I was astonished, for I thought the Fed was printing money with no accountability.

Don Levit

Tue, 06/18/2013 - 14:09 | 3668922 caShOnlY
caShOnlY's picture

we know this ends in hyperinflation.   how can anyone NOT be buying gobs of gold and silver right now?

Tue, 06/18/2013 - 14:11 | 3668930 Joe Sixpack
Joe Sixpack's picture

but, but, but.... Krugman says they're barbarous relics.

Tue, 06/18/2013 - 14:42 | 3669041 Hohum
Hohum's picture


Quite the opposite.  As ZHers point out, most incomes aren't going up.  Thus, not a lot of demand created.

There is asset inflation but it's not going to "end" until the assets deflate, which will happen...eventually.

Tue, 06/18/2013 - 14:15 | 3668948 Whiner
Whiner's picture

Bang Moment coming. Those in cash and gold and ammo will bet ready to barter and buy.

Tue, 06/18/2013 - 14:18 | 3668961 syntaxterror
syntaxterror's picture

"We will not monetize the debt."

- Bernank


Fucking liars. And dumb fucking Americans enable them.

Tue, 06/18/2013 - 15:56 | 3669206 world_debt_slave
world_debt_slave's picture

It's a bull market according to CNBC

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