• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

Bernanke Fails To Deliver As Chairman Checks To Congress

Tyler Durden's picture




 

The market is not amused...

 

  • *BERNANKE SAYS STAGNATION IN LABOR MARKET IS `GRAVE CONCERN'
  • *BERNANKE SAYS FED WILL BOOST ACCOMMODATION AS NEEDED FOR GROWTH
  • *BERNANKE SAYS HE WOULDN'T RULE OUT FURTHER ASSET PURCHASES
  • *BERNANKE: QE `SIGNIFICANTLY LOWERED LONG-TERM TREASURY YIELDS'
  • *BERNANKE SAYS IMPACT OF QE IS `ECONOMICALLY MEANINGFUL'
  • *BERNANKE: BIG BOOST IN QE MAY REDUCE CONFIDENCE IN SMOOTH EXIT

Those are the headlines. Here is the disappointing conclusion , which promises nothing new at all:

As I have discussed today, it is also true that nontraditional policies are relatively more difficult to apply, at least given the present state of our knowledge. Estimates of the effects of nontraditional policies on economic activity and inflation are uncertain, and the use of nontraditional policies involves costs beyond those generally associated with more-standard policies. Consequently, the bar for the use of nontraditional policies is higher than for traditional policies. In addition, in the present context, nontraditional policies share the limitations of monetary policy more generally: Monetary policy cannot achieve by itself what a broader and more balanced set of economic policies might achieve; in particular, it cannot neutralize the fiscal and financial risks that the country faces. It certainly cannot fine-tune economic outcomes.

 

As we assess the benefits and costs of alternative policy approaches, though, we must not lose sight of the daunting economic challenges that confront our nation. The stagnation of the labor market in particular is a grave concern not only because of the enormous suffering and waste of human talent it entails, but also because persistently high levels of unemployment will wreak structural damage on our economy that could last for many years.

But here is where Bernanke literally kicks the market in the teeth:

A second potential cost of additional securities purchases is that substantial further expansions of the balance sheet could reduce public confidence in the Fed's ability to exit smoothly from its accommodative policies at the appropriate time. Even if unjustified, such a reduction in confidence might increase the risk of a costly unanchoring of inflation expectations, leading in turn to financial and economic instability.

Bernanke just admitted the risk of deferred inflation and thus checked to Congress once again. And with the Fiscal cliff coming up, not to mention elections and the debt ceiling fight up ahead, good luck Chairman.

 

 

 

Full speech here

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Fri, 08/31/2012 - 10:03 | 2752365 fightthepower
fightthepower's picture

Fuck You Bernanke!

Fri, 08/31/2012 - 10:06 | 2752382 The Wizard of Oz
The Wizard of Oz's picture

GOLD BITCHEZ!!!

Fri, 08/31/2012 - 10:08 | 2752404 American34
American34's picture

BULLISH!

Fri, 08/31/2012 - 10:12 | 2752419 Precious
Precious's picture

Live from the Politburo in Wyoming, it's being streamed in fairness to the muppets, NOT !

Fri, 08/31/2012 - 10:13 | 2752441 old naughty
old naughty's picture

From whence, J-hole will just be A hole.

Fri, 08/31/2012 - 10:17 | 2752465 HoofHearted
HoofHearted's picture

Bernanke channeling Bob Marley: I shot the markets...

Fri, 08/31/2012 - 10:23 | 2752508 BaBaBouy
BaBaBouy's picture

They can Lick My J-Hole ...

Fri, 08/31/2012 - 10:24 | 2752524 Crisismode
Crisismode's picture

But gold just popped $15 up.

Go figure.

 

Fri, 08/31/2012 - 10:30 | 2752552 Stackers
Stackers's picture

As I have said: Bernak' knows he is pushing on a string at this point and will not do QEx until his feet are at the fire. Which should be fairly soon.

Fri, 08/31/2012 - 10:34 | 2752572 gckings19
gckings19's picture

wait for it>>>>>>now!

Fri, 08/31/2012 - 12:59 | 2753148 Papasmurf
Papasmurf's picture

Odd that  you have a j-hole. 

Fri, 08/31/2012 - 10:24 | 2752522 withnmeans
withnmeans's picture

The title seems to be off just a little. He did not fail to deliver, he delivered exactly the right subliminal B.S. the algos needed.

Listen, we all know the numbers are fictitious, like the EU, we will keep jawboning "Because it works".

Stay out of the markets, let the Big Banks play their games "albeit with our money, gift from the Government". 

Cheers

Fri, 08/31/2012 - 10:30 | 2752551 spastic_colon
spastic_colon's picture

the only thing that mattered today was that fag hilesenrath's op-ed at 10:01am EST....fuck off!

Fri, 08/31/2012 - 10:23 | 2752509 Boris Alatovkrap
Boris Alatovkrap's picture

You are precious... is spotting on! Announcing policies is reminiscing for old Soviet Style Politburo.

"Monetary policy cannot achieve by itself what a broader and more balanced set of economic policies might achieve; in particular, it cannot neutralize the fiscal and financial risks that the country faces. It certainly cannot fine-tune economic outcomes."

Mr. Bernanke is talk of monetary crisis is being natural phenomenal but is intentionally fabrication of banking enterprise. Now culpable party is giving solution or is covering over?

Fri, 08/31/2012 - 10:13 | 2752438 tocointhephrase
tocointhephrase's picture

Follow the yellow brick road, follow the yellow brick road, SILVER SILVER SILVER SILVER, follow the yellow brick road

Fri, 08/31/2012 - 10:09 | 2752418 DavidC
DavidC's picture

I don't swear very often but I am in complete agreement with that sentiment, to include Tim Geithner, Larry Summers et al.

DavidC

Fri, 08/31/2012 - 10:21 | 2752492 max2205
max2205's picture

bftD!!

Fri, 08/31/2012 - 10:21 | 2752494 HoofHearted
HoofHearted's picture

I swear all the time, and I'll say it for you: Fuck Bernanke, fuck Geithner, fuck Larry Summers, fuck Bill Dudley...in the asshole and without any lube. They have screwed the economy so badly without even the decency to give a reacharound. It is time they took it up the ass.

(I'm not for QE, not for the bailouts, not for any of it. But they now have the crackhead economy waiting for this shit and then they tell the economy to go cold turkey. It ain't right. They want the power, to be masters of the universe. Fuck them all!)

Fri, 08/31/2012 - 10:27 | 2752544 Nothing To See Here
Nothing To See Here's picture

As Ron Paul says, the problem is not with the persons in charge, it is with the system and the theories upon which they act. Replacing Bernanke would not solve anything. Replacing Keynesianism in the air would.

Fri, 08/31/2012 - 10:44 | 2752621 Ratscam
Ratscam's picture

Reminds me of 2PAC

Well this is how we gonna' do this:
fuck Mobb Deep,
fuck Biggie,
fuck Bad Boy his staff, record label, and his mother fucking crew.
And if you want to be down with Bad Boy,
Then fuck you too.
Chino XL, fuck you too.
All you mother fuckers,
fuck you too.
All of y'all mother fuckers,
fuck you, die slow motherfucker.
My four four (.44 magnum) make sure all your kids don't grow.

Fri, 08/31/2012 - 13:32 | 2753257 slewie the pi-rat
slewie the pi-rat's picture

fringe verminRus tend to thrive on staaahbiiiiiLieeeeeeTAAAAY

plus that stready diet of guilt

b/c on a long enuf timeline we all

eat shit
lay eggs and
die young

Rayman Raving Rabbids - Teenager In Love

Fri, 08/31/2012 - 10:13 | 2752442 drivenZ
drivenZ's picture

so, if he prints he's damned and if he doesnt print he's damned? why doesn't congress get it's act together and do something instead of coasting through elections? The bernanke bashing is stale, the real problem is Congress.  

Fri, 08/31/2012 - 10:16 | 2752461 docj
docj's picture

OK, I'll bite - what, precisely, do you suggest CONgress do?

Fri, 08/31/2012 - 10:21 | 2752490 Nothing To See Here
Nothing To See Here's picture

The real problem is with the people who elect those congressmen.

Fri, 08/31/2012 - 13:40 | 2753292 jerry_theking_lawler
jerry_theking_lawler's picture

ah ha. now you see why the founders originally only wanted 'property owners' to vote. this way the people voting have skin in the game. if you dont, then you end up where we are. politicians promising to spread the wealth to the poor in return for votes.

Fri, 08/31/2012 - 14:09 | 2753377 Global Hunter
Global Hunter's picture

agree 100% with Jerry the king lawler.  I'll add a property ownership threshold doesn't have to be high or particularly cumbersome to acheive results.  Shit just making people pay 100 bucks to vote would probably be enough to get most people especially students to think long and hard about whether they wanted to vote or not.  I think that's the main point, get somebody thinking about whether it really is worth their while to vote or not because right now it doesn't matter, people who are ignorant and don't care outnumber those who do.

Fri, 08/31/2012 - 10:23 | 2752498 drivenZ
drivenZ's picture

tax reform, medicare reform and social security reform. just to name a few. None of which Bernanke can do anything about and all of which are a drag on the economy due to the obvious $ issues as well as the uncertainty issues. Remember the super committee? yea nobody else does either because they didnt do shit. Congress has been on cruise control the last year waiting for the elections and fundraising for their parties. Grow some balls, reach across the aisle and get something done. 

Fri, 08/31/2012 - 10:32 | 2752559 docj
docj's picture

The Senate last passed a budget in April 2009 - but they're going to "reach across the aisle" and re-do taxes, social security and medicare?

Frankly, at this point I'd just assume flush them all and start fresh in January.

Fri, 08/31/2012 - 10:47 | 2752641 drivenZ
drivenZ's picture

this point is not lost on me...but it's unrealistic only if you believe that's how things should operate. Doing all of those reforms plus passing budgets is not unrealistic. If that's unrealistic then what the hell are they getting paid to do? oh right, fundraise.     

Fri, 08/31/2012 - 13:25 | 2753238 V in PA
V in PA's picture

I get what you are saying, and wish I could believe in it, but your arguement is flawed because it is based on the premise that politicians actually care.

Fri, 08/31/2012 - 10:34 | 2752574 Dumpster Fire
Dumpster Fire's picture

...

Congress has been on cruise control the last year waiting for the elections and fundraising for their parties

 

You've slept through the past 40 years I see.

 

Congress can never do anything within the 2 year pre-election period. 

 

We have elections every two years.

Fri, 08/31/2012 - 11:20 | 2752783 earnyermoney
earnyermoney's picture

The fiscal cliff everyone's talking about is the result of the super comittee. Mandatory across the board cuts for every government agency. We're talking real cuts not this baseline BS.

Either you lay off government employees or keep head count and slash salaries and benefits. Bout time these aholes experience the realities of the private sector the past 3 decades.

Fri, 08/31/2012 - 10:23 | 2752518 rehypothecator
rehypothecator's picture

Repeal ten thousand pages of regulations (i.e. a few percent of them, at least to start).  Make taxes low and more importantly, predictable in the future.  Undo Obamacare and other items of legislation that place unknown, large burdens on potential small buisnesses.  Oh, and take whatever steps are necessary to put Corzine in jail, up to and including removing Eric Holder.  

Fri, 08/31/2012 - 10:25 | 2752530 rehypothecator
rehypothecator's picture

While I'm dreaming, give me a pony, too.  None of this will ever happen.

Fri, 08/31/2012 - 10:53 | 2752671 JR
JR's picture

Continuing on…with these suggestions proposed in Debt and Delusion:

Withdraw special privilege limited liability status protection of financial speculators from their creditors in the event of losses…convictions for fraud and deception to carry confiscation of personal assets;

Overhaul the derivatives market…establish a global capital adequacy regime for all users based on a standardized Value-at-risk model backed by cash deposits in proportion to exposure…prohibit government agencies, pensions funds and insurance funds, industrial and commercial companies from entering into derivatives contracts;

Tighten laws on companies granting credit with an ethical code for lending to the general public, call into accountablility lenders with higher than average non-performing assets…

Stop the debt addiction!!! Bring on transparency and accountability, Ben.

Did you go to Jackson Hole? If you didn’t, how do you expect to get anything? The paymaster is in Jackson Hole.

 

Fri, 08/31/2012 - 10:32 | 2752561 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

OK, I'll bite - what, precisely, do you suggest CONgress do?

Die, en masse.

Fri, 08/31/2012 - 10:19 | 2752482 earnyermoney
earnyermoney's picture

when's barry going to get his act together?

Fri, 08/31/2012 - 10:41 | 2752611 kito
kito's picture

barry has his act together, as does congress......and they win the oscar awards for pretending to be an effective government...............

Fri, 08/31/2012 - 10:47 | 2752645 GeorgeHayduke
GeorgeHayduke's picture

Barry's doing exactly what his owners have told him to do. Just as Bush II, Clinton, Bush I, Reagan and Mitteny will do if he's elected. Sure the sheople vote for these assholes, but they aren't in office to serve their interests. They are there to bow to their corporate owners.

Fri, 08/31/2012 - 11:13 | 2752760 earnyermoney
earnyermoney's picture

I'm writing Ron Pauls name on the ballot for President and my wife's name on the ballot for Congress.

Fri, 08/31/2012 - 13:01 | 2753160 Papasmurf
Papasmurf's picture

That will cause a divide by zero error in Diabold computers.

Fri, 08/31/2012 - 10:22 | 2752502 HoofHearted
HoofHearted's picture

The REAL problem is the fiat with no mooring.

Fri, 08/31/2012 - 10:28 | 2752545 Boris Alatovkrap
Boris Alatovkrap's picture

Advice for Amerikan friends - Congress is most effective in do nothing, not meddling. Remember, US Congress is more worst of Soviet Politburo.

Fri, 08/31/2012 - 10:20 | 2752483 fonzannoon
fonzannoon's picture

Gold selling off, treasuries rallying, stocks up.....Hey Robotrader get out here. Go ahead you guys earned it.....

Fri, 08/31/2012 - 10:26 | 2752533 HoofHearted
HoofHearted's picture

And now that Bastard Bernanke says that QE3 is necessary, giving everything that can be sold an erection. He just gave the big banks a chance to cover their shorts on the first message and go long taking a ton of money from the Muppets.

Fucking Efficient Market Hypothesis at work right here and right now. And we're all getting fleeced. Glad my stack of the shiny isn't going anywhere.

Ben Bernanke belongs on that bench that Arlo Guthrie talked about: mother rapers, father rapers....

Hell, I'm going to go listen to Alice's Restaurant and have a glass of merlot. It's nearly 10:30am, what the fuck?

Fri, 08/31/2012 - 10:31 | 2752557 TheSilverJournal
TheSilverJournal's picture

Expected the silver and gold drop, but wow, look at that pop right after!! That's a move like we haven't seen in silver in many months.

Fri, 08/31/2012 - 10:38 | 2752596 gckings19
gckings19's picture

Where's Million dollarbonus with his ridiculous comments.

Fri, 08/31/2012 - 10:30 | 2752554 midtowng
midtowng's picture

It looks like he's talking out of both sides of his mouth. You can take what he is saying any way you want.

Fri, 08/31/2012 - 12:19 | 2753006 techperson
techperson's picture

Wow, Tyler, didn't you read the last paragraph? The parting thought Bernanke wants us to retain:

"Over the past five years, the Federal Reserve has acted to support economic growth and foster job creation, and it is important to achieve further progress, particularly in the labor market. Taking due account of the uncertainties and limits of its policy tools, the Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability."

further progress - will provide - stronger - sustained - the surprise is that the S&P is only up 10, and gold is only up $22. September 13 is coming. Risk on, bitchezz!

Fri, 08/31/2012 - 10:05 | 2752371 Vincent Vega
Vincent Vega's picture

Bernanke speaks and says absolutely nothing.

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