The Government May Shut Down, But These 18 October POMOs Will Proceed Come Hell Or Selective Default

Tyler Durden's picture

As pointed out earlier, the Federal Reserve does not depend on Congressional appropriations, and will not see any cutbacks due to a shutdown which with every passing hour seems more inevitable. It also means that even if the entire US government were to be shutdown, the daily wealth effect injection into the stock market for the benefit of the 0.01% will continue and the confidence show must go on. Specifically, as was released moments ago by the NY Fed, Bernanke will inject another $45 billion in the capital markets courtesy of 18 distinct bond-monetizing POMO operations over the next 31 days. These will take place regardless of anything else that may happen to the government, which perhaps better than anything else, shows who is truly in control of this country and on whose behalf they operate.

Source: NY Fed

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TruthInSunshine's picture

This essay's assertions are complete fabrications.

Bernanke has repeatedly stated that the Federal Reserve does not, nor can it, print "money."

Do you really expect me not to believe him?

Desp's picture

Words matter - No the Fed can't print anything.

Does the Fed expand the money supply? Absolutely.

TruthInSunshine's picture

Au contraire, because when the Bernank buys USSA debt issuance, in the form of treasuries, in the secondary markets, from the BFFs of the NYFRB (paying these Primary Dealers a commission, to rub salt in the wounds), it's literally printing money from thin air.

Desp's picture

The treasury owns the press, the fed doesn't technically "print" anything. Therefore the Bernanke can say that and be correct.

TruthInSunshine's picture

He can "say" anything he wants in tortured, semantical diarrhea.

It's what the Fed does that reveals the facts.

walküre's picture

and invent phrases the entire world repeats over and over

from green shoots to taper... Every kid had heard it somewhere from someone but Ben coined it

best case $49.5 billion in October *** TAPER

TruthInSunshine's picture

Ben "buys" billions bi-weekly by ledger entry.

And that's the functional equivalent of printing federal reserve notes in a fractional fiat reserve FUBAR framework.

Mike Hunt Hurts's picture

How will they know what statement (lie) to tell us without the September jobs number from BLS?

Good number = lie about taper possibility at some point in the future

Poor number = lie about economy not strong enough yet to taper

eclectic syncretist's picture

Since money is made from cellulose, which is made by plants from water and atmospheric carbon dioxide, all federal reserve notes are (sans the ink anyway) actually made from air.  However, if the Fed had to print the actual bills to cover all extant debts we would quickly find ourselves in the position of the Easter islanders who cut down all their trees and sealed their doom. 

rum_runner's picture

Oh come on.. in 2043 that money will be removed from the economy for a trillionth of a second while those particular 30yr treasuries are rolled over to the new 180 year treasuries.  Backed by the full faith and credit of the USSA!

floyd084's picture

The fed doesn't print money, the mint does.

Stoploss's picture

It's called the school of hard knocks, their colors are black and blue.  Ben knows all about that.

Deacon Frost's picture

Don’t forget, Ben Shalom Bernanke was the ‘bag boy’ for Alan Schafer’s operation ‘South of the Border’ where Bernanke grew up in Dillon, SC as a young man.   Alan Schafer’s operation wasn’t just confined to tourist trinkets and restaurants. Also Schafer was the Democratic Party operative for SC and NC in that region doling out lots of money.

TeamDepends's picture

Boon: Jesus. What's going on?
Hoover: They confiscated everything, even the stuff we didn't steal.
Bluto: They took the bar! The whole fucking bar!
[Otter grabs a bottle of whiskey and throws it to Bluto, who chugs it all]
Bluto: Thanks. I needed that.
Hoover: Christ. This is ridiculous. What are we going to do?
Otter & Boon: Road trip.

Lewshine's picture

How can anyone believe that a shutdown would be any kind of threat at all - You'd have to be a complete MORON!! Look at the market. Down 126 points on the last 10 hour window?? If this was a real threat we'd be down 5 to 10% starting last Friday. This is a chirade. Ben is using the precious golden goose (US Equity market) to add fear to both the public and their representitives in congress. Such Bullshit! We live in the Matrix - Real threats are not allowed!!

slaughterer's picture

Watch the 3:30pm Ramp Capital LLC numbnuts spend your tax money on the closing hope-filled ramp.

Grande Tetons's picture

The Federal Reserve has no Federal employees. Except for Barry. 

hedgeless_horseman's picture



The Federal Reserve has no Federal employees. Except for Barry.

He's not so much an employee, per se, but rather a faithful servant.

Grande Tetons's picture

Lavar Burton, before he was famous....


Could be a photo or print form his 1977 press kit



Bay of Pigs's picture


'Murika....Fuck Yeah!

bigdumbnugly's picture

pomo.  the bloodline of it all. 

type O negative.  universal donor.

but only specified recipients.

dick cheneys ghost's picture

''shows who is truly in control of this country and on whose behalf they operate.''..........dont be so coy tyler, name names~~

john39's picture

are their names truly known? of course the banks are... and the historic banking families... but who is above them, i seriously doubt the people truly in control are publically known.

Mercury's picture



Well, we laid a strip for the Jersey shore
And prepared to cross the line
I could see the bridge was lined with bears
But I didn't have a dog-goned dime.
I says, "Pig Pen, this here's the Rubber Duck.
We just ain't a-gonna pay no toll."
So we crashed the gate doing ninety-eight
I says "Let them truckers roll, 10-4."

hedgeless_horseman's picture



Kris was better in Rollover, but I will take Ali over Hanoi Jane anyday.

Bearhug Bernanke's picture

Only a larger, more bearded, Federal Reserve Chairman can stop Ben now.

Uncle Remus's picture

Wait - the real Santa is up now?

rum_runner's picture

I never appreciated the similarities between the two.  Both work from reclusive fortresses that are inaccessible and inscrutable to the public and both hand out free shit only to those whom they favor.

Uncle Remus's picture

And, not a little irony...

Racer's picture

Can't have the bankster class inconvenienced..... that would NEVER do

/sarc unfortunately

nickels's picture

So which is really money? Federal Reserve money or Congressionally Appropriated money? -- or is there something else--?

notadouche's picture

Why would the 15th and the 28th be so much larger than the other days?  Any rhyme or reason of is it just a matter of dart throwing?  

viahj's picture

just mid-month and end of the month support for reporting facilities

john_connor's picture

I would hope the *market* is more forward looking than what is happening next month.  Even though it no longer discounts cash flows into the future, it certainly may discount POMOs 6-12 months out in light of a possible backdrop of less bond issuance.  I know the clowns can't stop spending money but we may soon reach tipping point of Fed holding too much paper and gov issuing too much paper, i.e. rates go up regardless of POMO.

whirlybird rules's picture

Things are also getting heated in Italy.  It must have been an busy day at BIS:0)  I smell a meltdown...

Sudden Debt's picture

I wonder how long it will take before the FED will own the entire stock market...

whirlybird rules's picture

I think that already happened.

ebworthen's picture

Never a shortage of taxpayer cash for the banks or Wall Street!


thismarketisrigged's picture

what day is the day that this bastard fucking kills himself along with all other bankers?


do we have a date for that yet?

whirlybird rules's picture

You can think it, but don't say it!  This is the new world :/  Remember "they" are keeping reocrds.

BullyBearish's picture

Take a listen to this from Bloomberg, an insider describes another more insidious "wealth transfer" mechanism separate from QE: essentially, as prices rise and wages decline, the .01% are loaning money to the 99.9% so they can consume and send that money back to the .01% AND give them a little more via interest on that borrowing. 8min in.


SheepDog-One's picture

What? The FED and 'tha guvt.' are 2 completely different things, but it could be more correctly stated that the FED is the real guvt. and is not being shut down.

knowshitsurelock's picture

Well, of course its a charade, but a well orchestrated one.

How else can you demolish the existing paradigm unless you expose all the doofuses in Washington and Wall Street before you implode the whole mess and open up your new shop down the street, with full ownership and control of everything?

What else would egomaniacal psychopathic narcissitic hedonistic oligarchical reprobate power mongers do for fun?

Cynthia's picture

The Market, which is the demi-god of our rulers, is going to correct this nonsense. It's down now, and after it offers an opportunity to buy on the dip, sanity will miraculously return, only until the next manufactured crisis.