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Bernanke Unleashes The Path To New All Time Highs In Precious Metals

Tyler Durden's picture




 

There was one thing, ONE THING only that Bernanke could do, to become a gold bug's best friend today, than merely announcing QE 3/4. It was to announce open-ended QE. This means this is the Fed's final shot and there is no way to frontrun the Fed any more by definition. It means the terminal start of currency debasement is now here. It also means that the path to all time nominal (and inflation adjusted) highs in gold, which is now just $160 away, silver, platinum, and all other metals, as well as all other hard assets is now clear. It also means that very soon stocks are about to realize what soaring "input costs" mean for the bottom line.

Thank you Chairsatan: you are truly a gold bug's bestest friend!

 

and in case you were wondering, Silver is now equal YTD with the NASDAQ and Gold is catching up to the S&P...

 

Charts: Bloomberg

 

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Thu, 09/13/2012 - 13:21 | 2790563 12ToothAssassin
12ToothAssassin's picture

Barbarous relics to the moon!

 

Bitchez!!

Thu, 09/13/2012 - 13:22 | 2790588 HedgeAccordingly
HedgeAccordingly's picture

More twisting and shouting YES! - Gold 1770 = http://

Thu, 09/13/2012 - 13:25 | 2790604 nope-1004
nope-1004's picture

But why is silver going up?  It's only $5 to take it out of the ground. <s>

Inflation is coming in a big way.  No turning back now.  And I'm happy we're done with numbering each successive QE..... let's call this ponzi what it is and what Jim Sinclair has said from day one:  "QE to infinity".

 

 

Thu, 09/13/2012 - 13:36 | 2790703 redpill
redpill's picture

You didn't mine that

Thu, 09/13/2012 - 13:37 | 2790711 Pladizow
Pladizow's picture

"The collapse of the people’s confidence in the created money, which was forced upon them by legal tender laws, will have a bad effect upon the government. It would be to the advantage of those really in charge to avert a total loss of confidence in their created money, to declare bankruptcy, initiate a deflation, returning so much wealth on the dollar and issuing a new redeemable one, if only to continue their power over us. It is inevitable, we will see a tremendous depression and a return to gold and silver as wealth mediums of exchange – it has always gone that way. – Money :The Greatest Hoax on Earth, Merrill Jenkins, 1971, Pg 150.

Thu, 09/13/2012 - 13:42 | 2790737 bania
bania's picture

bernank: my bff... my hero.

Thu, 09/13/2012 - 14:39 | 2791179 PAWNMAN
PAWNMAN's picture

Throw in a heavy dose of anarchy!

Thu, 09/13/2012 - 14:05 | 2790923 Karlus
Karlus's picture

Someone else mined that

Thu, 09/13/2012 - 16:33 | 2791941 Cast Iron Skillet
Cast Iron Skillet's picture

it's mine, anyway.

Thu, 09/13/2012 - 13:42 | 2790706 Kitler
Kitler's picture

Quantitative Easing = Quantitative Fleecing of "We the Sheeple"

Bernanke is an S.O.B. > Saviour Of Banksters!

Elderly pensioners are S.O.L. > Shit Out of Luck!

Thu, 09/13/2012 - 13:45 | 2790752 Peter Pan
Peter Pan's picture

An oz of silver costs $5 to take out of the earth and is valued at $35.

The cost of producing 35 fiat dollars is 10c per note or $3.50. Even less in bigger denominations.

So what is your point?

Thu, 09/13/2012 - 13:53 | 2790821 SemperFord
SemperFord's picture

You must be a newbie, RoboHomo used to say silver was useless because you could dig out an ounce for $5.

Fri, 09/14/2012 - 03:50 | 2793717 Vlad Tepid
Vlad Tepid's picture

Don't leave out MathMan.  That was his whole mantra.  Five dollars, every post.  All the while silver shot up to $50 and he lost his shirt.

Thu, 09/13/2012 - 14:05 | 2790927 Bastiat
Bastiat's picture

An oz of silver costs $5 to take out of the earth

Which earth?

Thu, 09/13/2012 - 14:26 | 2791072 Quinvarius
Quinvarius's picture

Not this earth.

Thu, 09/13/2012 - 15:57 | 2791725 elvinodiablo
elvinodiablo's picture

What does it cost JPM to take it out of their ass?

Thu, 09/13/2012 - 14:02 | 2790891 hedgelessWhoresMan
hedgelessWhoresMan's picture

Forking A

Thu, 09/13/2012 - 14:04 | 2790915 NoTTD
NoTTD's picture

Gold is so big it has its own gravity, baby!

Thu, 09/13/2012 - 13:37 | 2790714 vast-dom
vast-dom's picture

all i want to know now is when the R2K heads to zero.

Thu, 09/13/2012 - 13:22 | 2790593 Vagabond
Vagabond's picture

US dollar through the floor!

Thu, 09/13/2012 - 13:26 | 2790637 LMAOLORI
LMAOLORI's picture

 

 

 

One of two things are coming the greatest depression of all time if obama is re-elected or

The Gold Standard Is Coming

Thu, 09/13/2012 - 13:28 | 2790658 Spastica Rex
Spastica Rex's picture

Mittens will enact a gold standard?

Interesting dichotomy you present there.

Thu, 09/13/2012 - 13:46 | 2790760 LMAOLORI
LMAOLORI's picture

 

 

I know your an O Bot I've seen your posts snicker. Mitt wouldn't end up having any other choice but like I said there's always option number one the greatest depression of all times with your Messiah especially given what the chair satan just did. 

 

Thu, 09/13/2012 - 13:59 | 2790860 Spastica Rex
Spastica Rex's picture

And I know you have an IQ under 75; I've seen your posts.

Thu, 09/13/2012 - 14:26 | 2791070 12ToothAssassin
Thu, 09/13/2012 - 14:45 | 2791077 LMAOLORI
LMAOLORI's picture

 

 

Can't handle the truth O Bot I got down arrows when I pointed out ben would print to save obama too ROFLMAO

 

Is President Obama's Depression Coming Our Way?

 

Thu, 09/13/2012 - 13:41 | 2790731 Shameful
Shameful's picture

I will guarantee the US will not go back on a gold standard this decade.

1.  The gold standard is anathema to the military/banking complex that owns the political class in the US.

2.  You can't print gold!  Hard to steal via the inflation tax when you can't print the medium of exchange.

3.  There is not a significant portion of gold left in US treasury.  Sure it's on paper, but getting an audit is impossible.

A return of the gold standard in the US can only happen under a few auspices.

1.  All wealth in the US is gone.  All assets must be cleanly stripped away, and then the owners of said assets and the slaves...err citizens to be productive once more.  Basically a system restart.

2.  There is a global gold backed reserve currency that the US would participate in.

 

So unless they can suck all the wealth out of the US in the short term I cannot see a restoration of the gold standard happening.  Be like Marc Faber, be your own central banker and go on a gold standard.

Thu, 09/13/2012 - 13:54 | 2790828 LMAOLORI
LMAOLORI's picture

 

 

Umm have you noticed how much wealth they already sucked out of the U.S.?  Not too much more to go 

 


America's lost trillions

US incomes fall to 1989 levels

Thu, 09/13/2012 - 14:05 | 2790929 nope-1004
nope-1004's picture

Shameful,

Although a gold standard would bring some honesty back, I agree with you that it likely won't happen.  Where I think this is going is a pure digital transaction based system, so the gov't can document EVERY transaction to monitor movement of goods, as well as efficiently tax every trade.  How it's repriced or revalued - well, haven't figured that out yet.

The Gold standard is just too difficult to go back to now.  No question gold is heading many mulitples higher, but that doesn't mean that TPTB will freely accept it as "the standard".

 

Thu, 09/13/2012 - 14:22 | 2791046 Shameful
Shameful's picture

You are likely correct in that is what they would like.  We already have a digital currency in many respect, but also a physical one.  If the physical connection to the paper is cut then it's already a purely digital system which makes things like VAT much easier to implement.  The problem with a digital currency is once they no longer have even the pretense of a physical paper money supply the money supply can and will jump to infinity.  It's pretty clear that they would not be able to control themselves and would instantly print like mad to buy up assets, and the currency would crash, again.  This happens once, maybe the people sign on again, but happens over and over again and the masses dumb as they are will look for alternatives.

Thu, 09/13/2012 - 14:15 | 2790995 Shameful
Shameful's picture

There is plenty left.  Wait till after the 401ks are nationalized, a special Federal sales and property tax is implemented, and it becomes illegal to buy non US financial instruments/investments.  Until then, there is still blood left in the corpse.  If there is plenty of wealth to pillage in developing nations like in SA then the good old US of A has a few more rounds of looting left to go.  Besides there is still places that need to be conquered/standardized and the US is the global enforcer.  Not saying you should get prepped for the inevitable, but that it isn't going to happen tomorrow, or next month, or probably even next year.

Thu, 09/13/2012 - 19:43 | 2792697 bruinjoe93
bruinjoe93's picture

Good points.  The U.S. will fight going back to the gold standard.  However, the U.S. will one day realize that it is not stronger than the market.  Either the bond market or currency market (China, Russia, India, Brazil) will force the issue.  There's a good reason why China and Russia are hoarding gold.  The answer will be revealed in the near future. I don't know what the answer willl be but I have a suspicion that precious metals will rise sharply and violently.

Thu, 09/13/2012 - 14:05 | 2790925 Bay of Pigs
Bay of Pigs's picture

PAGING KITO!

Where the fuck are you?

Thu, 09/13/2012 - 14:32 | 2791118 kito
kito's picture

see below................unlike our esteemed leaders, i admit to faulty forecasting...................

Thu, 09/13/2012 - 13:26 | 2790642 4realmoney
4realmoney's picture

Get your silver while you can!! Over $18k/box! https://www.texmetals.com/silver-eagle-monster-box.html

Thu, 09/13/2012 - 13:27 | 2790645 CrankItTo11
CrankItTo11's picture

To the moon? That's SO 2011. To Mars! 

Curiousity killed the $

Thu, 09/13/2012 - 14:01 | 2790877 Strelok
Strelok's picture

Barbarous relics to the moon!

I can't help it, every time I hear barbarous relic I LOL.

Thu, 09/13/2012 - 14:27 | 2791083 Ponzified Plebe
Ponzified Plebe's picture

Standing at the edge of the end of the world... and the view is, well bleak.

 

While I am happy to see the value of my stack increasing, I am finding myself looking the Chairstain's decision to ease with a knot in my gut, because this is where the beginning of the end seems like it is transitioning to the rising action and climax that predates "the end". The world my kids exist in will inevitably become darker and more conviluded before it gets better. Rising silver, great. Rising bread, milk, gas, and all of the other stuff we need; not so good at all.

Thu, 09/13/2012 - 13:19 | 2790568 Snakeeyes
Snakeeyes's picture

Bernanke like to create asset bubbles (metal, stocks) at the expense of inflation, risk, and seniors getting killed on their savings.

http://confoundedinterest.wordpress.com/2012/09/13/fed-pulls-the-trigger-with-new-bond-buying-program-40-billion-in-mortgage-backed-securities-per-month/

Thu, 09/13/2012 - 13:19 | 2790569 HelluvaEngineer
HelluvaEngineer's picture

Yes, I think this move today did it.  No going back now.

Thu, 09/13/2012 - 13:22 | 2790594 12ToothAssassin
12ToothAssassin's picture

Third times the charm

Thu, 09/13/2012 - 13:24 | 2790623 gojam
gojam's picture

Half a Trillion $$$$$ a year !

Thu, 09/13/2012 - 13:52 | 2790806 tmosley
tmosley's picture

For now.  Once Twist ends you can bet they will raise it.  At that point, you can bet on a trillion a year, at least.

Thu, 09/13/2012 - 14:02 | 2790888 Strelok
Strelok's picture

$1,527 per US resident. 

Thu, 09/13/2012 - 13:24 | 2790584 Haager
Haager's picture

How many people were kicked out of the rally at 12:10? I saw gold at about 1705 then, now +$60. Those will surely shoot themselves...

 

Oh, and unless s.o. is able to frontrun the easings it seems clear that there will be a top of PMs the next days. When South Africa gets the mines back to normal...

Thu, 09/13/2012 - 13:22 | 2790591 koaj
koaj's picture

$5 diesel will do wonders for the economy

Thu, 09/13/2012 - 13:32 | 2790680 malikai
malikai's picture

I'm sure it will do wonders for Romney's campaign and Goldman's bonus pool.

Two birds with one stone.

Thu, 09/13/2012 - 13:40 | 2790729 LMAOLORI
LMAOLORI's picture

 

 

Like I posted yesterday and in another post earlier today follow the money food/gas/heating fuel well hyperinflation is on the way unless we radically change course and vote out obama that would hold it off for awhile.  You can call me Sybil but I think it's wise for you to prepare.  Store Food, Weapons/Ammo items to barter and if you can you would be wise to buy a place with a little land out from the urban areas.

Thu, 09/13/2012 - 15:41 | 2791617 OneTinSoldier66
OneTinSoldier66's picture

Republicans/Democrats = The Federal Reserve Note Party

Thu, 09/13/2012 - 13:22 | 2790597 thatthingcanfly
thatthingcanfly's picture

On another thread, I placed my bet that we blow through $1800 by the end of the afternoon. It now looks like we'll be there by the end of the lunch hour.

Good day to be hedged against zero.

Thu, 09/13/2012 - 13:23 | 2790599 XtraBullish
XtraBullish's picture

NEVER underestimate the replacement power of equities within an inflationary spiral - I LOVE the sell of BBQ'd shorts on a sunny QE III afternoon! Graham must be staring up at the rising GLD Phoenix and preparing his next "Sell EVERYTHING!!!" posting while scramblng to change his undershorts!

Thu, 09/13/2012 - 13:36 | 2790704 gjp
gjp's picture

Gold or momo stocks - which will win out in the end?  My bet is on the former.

Thu, 09/13/2012 - 13:23 | 2790601 Broccoli
Broccoli's picture

Don't forget to buy 25 lb bags of rice and pinto beans at your local warehouse store as well along with the PMs. It inflates just as fast and you can eat it in a pinch! Do youself a favor though and buy salt and pepper in bulk as well. Unseasoned pinto beans and rice, gross.

Thu, 09/13/2012 - 14:12 | 2790973 BeerBrewer09
BeerBrewer09's picture

I just buy 55 lb. bags of malted barley. I can choose whether to eat it or use it to make beer.

Thu, 09/13/2012 - 15:14 | 2791455 1C3-N1N3
1C3-N1N3's picture

Or both. Some of us like to snack on the kernels while making wort... And you know it's the yeast that actually makes the beer. =]

Thu, 09/13/2012 - 13:24 | 2790606 dwdollar
dwdollar's picture

Yeah, $40B/mo. is kind of weak but it gives the Fed plenty of room to expand 4EVA.

Thu, 09/13/2012 - 13:24 | 2790608 DavidC
DavidC's picture

The big move down last July/August started overnight in the Far East. I wonder whether the same will happen.

DavidC

Thu, 09/13/2012 - 13:23 | 2790609 TN Jed
TN Jed's picture

Saved this one specifically for today.

Jeffery Christian 9/10/12  says No QEIII, priced in already.

http://watch.bnn.ca/#clip757705

Thu, 09/13/2012 - 13:31 | 2790678 ParkAveFlasher
ParkAveFlasher's picture

Yeah Christian, you peter pumper, at $1500 you said it'll go to $1100 and at $1700 you said it'll be $1500.  Keep pumping platinum ya twerp until the Honda's of the world simply stop using it.  Biggest contrary indicator next to this fuckin guy ... Jon Nadler, what a hosehead, here he is yesterday, as usual, WRONG:

http://www.kitco.com/ind/Nadler/20120912.html

Thu, 09/13/2012 - 15:36 | 2791598 JonNadler
JonNadler's picture

am right here and am here to tell you that gold is no more edible now that it was at 1600.

Gold will collapse from here back to 250 within a few weeks. Mark my words. Am I Right Akak? 

Thu, 09/13/2012 - 15:44 | 2791649 OneTinSoldier66
OneTinSoldier66's picture

So I'd better make sure I'm next to the printing press when the hyperinflation hits because the pieces of paper it produces are edible?

Fri, 09/14/2012 - 01:24 | 2793585 StychoKiller
StychoKiller's picture

Hmm, feelin' peckish?

Fri, 09/14/2012 - 12:18 | 2795392 OneTinSoldier66
OneTinSoldier66's picture

Yes, you bet! :)

Thu, 09/13/2012 - 13:24 | 2790610 bezell
bezell's picture

JPM SCREWED!!!!! i guess

Thu, 09/13/2012 - 13:28 | 2790651 laomei
laomei's picture

That massive spike a few days back was them closing their short positions

Thu, 09/13/2012 - 13:24 | 2790611 kito
kito's picture

Doc engali.....contact me through the relationships link on zh......I WAS WRONG......YOU WIN......TURKEY SANDWICH FOR YOU....and I will honor the bet.......

Thu, 09/13/2012 - 13:29 | 2790663 Spastica Rex
Spastica Rex's picture

Pay it forward, dude!

Thu, 09/13/2012 - 14:51 | 2791276 Chuck Walla
Chuck Walla's picture

FORWARD SOVIET!

Thu, 09/13/2012 - 13:31 | 2790667 fuu
fuu's picture

<golf clap>

Well played sir.

Thu, 09/13/2012 - 13:34 | 2790695 CCanuck
CCanuck's picture

+1 for stepping up Kito, I've been following you and the doc for awhile, both of you making good points and debate.

Cc

Thu, 09/13/2012 - 13:37 | 2790708 Raymond Reason
Raymond Reason's picture

There was an article a few days ago on ZH discussing the simple math problems of QE3.  There is no place left to insert money, without destroying markets....the option would be MBS, but nothing above 40 b per month:

The alternative of tilting purchases toward MBS implies that the QE program would need to be quite protracted. Monthly supply of conventional 15yr, 30yr and 30yr GNMA has averaged about $85-90 billion over the past year and the Fed is already buying about $25 billion. The Fed might be able to buy another $40 billion without disrupting the market. Assuming that the Fed does a $600 billion program with 75% in MBS, it would need to buy $450 billion in mortgages, so in our estimation the program would need to last nearly a year.

 

spot on

Thu, 09/13/2012 - 13:58 | 2790819 Dr. Engali
Dr. Engali's picture

Hey kito...I do have to say it has been fun, and you make a pretty persuasive argument especially when it comes to observations of corrupt people. But I see them as both corrupt and desperate people doing anything they can to preserve the system and their jobs. To me they will be pariahs when history judges them. Thank you in advance and I appreciate a good debate with a person a persuasive as you.

Thu, 09/13/2012 - 14:30 | 2791098 kito
kito's picture

its been a pleasure.......im serious though....make sure you contact me through the member links.....give me the info for the place you want the order, make sure they take visa, and i will phone it in for you........a bet is a bet................just ask spastica rex......i must follow in his footsteps of the losing side doing the right thing...........i need to do this before turkey becomes $50/lb  ;)..............................

Thu, 09/13/2012 - 14:45 | 2791230 Bay of Pigs
Bay of Pigs's picture

+1 kito

Abolish the FED brother...

Thu, 09/13/2012 - 14:05 | 2790922 rosiescenario
rosiescenario's picture

....smoked turkey?????

Thu, 09/13/2012 - 14:13 | 2790987 Karlus
Karlus's picture

Honerable

 

Thu, 09/13/2012 - 14:15 | 2790998 Floordawg
Floordawg's picture

At best you were just over one quarter off... not bad considering the levels of manipulation.

And way to pay up like a man, if only the rest of the financial system had the balls to do so.

Thu, 09/13/2012 - 14:51 | 2791285 kito
kito's picture

im shocked he did this before elections..he really runs the risk of politicizing his position in the runup to november...romney is itching for some of the ron paul loyalists........................ben has everything ostensibly under control now..........dow is ever higher each day, bond yields are bottom feeding....oil steady at 95....................i had it pegged for q1 next year earliest...but then again, nothing should be shocking anymore......................

Thu, 09/13/2012 - 15:58 | 2791730 malikai
malikai's picture

I'm surprised too. But I figure this is Benocide knowing Romney won't actually fire him. Now that this QE thing is back in swing, Romney wins, and Goldman's bonus season will be another big winner. In January when we see the real Romney at work, we'll know why Benocide was ok with this.

Fri, 09/14/2012 - 01:26 | 2793587 StychoKiller
StychoKiller's picture

I gotta wonder how high the DOW has to get before the selling begins in earnest...

Thu, 09/13/2012 - 18:23 | 2792371 EvlTheCat
EvlTheCat's picture

You rock!

Thu, 09/13/2012 - 13:24 | 2790612 sharky2003
sharky2003's picture

So I suppose the next step is confiscation. 

Time to go sailing!! 

Thu, 09/13/2012 - 13:38 | 2790712 kralizec
kralizec's picture

Yes, more tragic accidents for umm, replacement buys from the last time...

Thu, 09/13/2012 - 15:33 | 2791588 Theosebes Goodfellow
Theosebes Goodfellow's picture

Say, are you sure PMs make good ballast in my boat? And I put them all on the same side?

Thu, 09/13/2012 - 15:09 | 2791416 debtor of last ...
debtor of last resort's picture

I didn't buy that gold.

Thu, 09/13/2012 - 13:24 | 2790615 kralizec
kralizec's picture

Yeah that Au chart looks like a flat-lining patient had the paddles hit them at full power.

Thu, 09/13/2012 - 13:24 | 2790619 Coldsun
Coldsun's picture

And people will say they didn't see this coming.

Thu, 09/13/2012 - 13:30 | 2790665 thatthingcanfly
thatthingcanfly's picture

And in many cases, they'll be telling the truth. The hard-working moms-n-dads who, between putting in 10 hour days at the mine and trying to raise children, don't have time to familiarize themselves with matters financial and economic, will be the ones losing their life savings (if they saved anything) due to forces beyond their control and understanding. Sad day for them. It's not their fault.

Thu, 09/13/2012 - 13:24 | 2790620 RagnarDanneskjold
RagnarDanneskjold's picture

If like Japan, nominal GDP is at the same level 15 years from now and USG keeps offsetting private deleveraging with public debt, the Fed will still be running QE3. Sometime around 2029 they will start getting inflation.

Fri, 09/14/2012 - 04:32 | 2793737 Vlad Tepid
Vlad Tepid's picture

Japan can keep that racket going because the world demands JPN - they know Japan, Inc. stands behind it with a massive productive capacity.  America, Inc. now consists soley of lattes, Facebook, and pornos.

Thu, 09/13/2012 - 13:25 | 2790628 alien-IQ
alien-IQ's picture

what he has unleashed is a world of pain for anyone that has to put gas in their car.

Thu, 09/13/2012 - 14:03 | 2790895 donsluck
donsluck's picture

The only rational response is to get your fat ass on a bicycle.

Thu, 09/13/2012 - 13:26 | 2790634 adr
adr's picture

Wow, the charts really look rational today. All I see are algo spikes followed by selloffs, followed by more algo spikes. At this rate we should hit Dow 14k by 2PM.

Why not take out the all time high by close today. The market has now lost the last .01% of its credibility. It is now 100% a con game.

Thu, 09/13/2012 - 13:26 | 2790635 disabledvet
disabledvet's picture

Long those who speak Portugese. And the King of Spain...

Thu, 09/13/2012 - 13:26 | 2790640 alien-IQ
alien-IQ's picture

When do we start pricing in QE 4?

Thu, 09/13/2012 - 13:42 | 2790740 Coldsun
Coldsun's picture

I think that's what is currently being done. Time to front run.

Thu, 09/13/2012 - 13:49 | 2790783 TrustWho
TrustWho's picture

December/January 2013 when USA government fails to address Fisical Cliff, so Daddy Bernanke will fill-in the valley with QE4 Treasury purchase and all will be well again. Daddy saves his messiah son once more.

Thu, 09/13/2012 - 14:04 | 2790921 donsluck
donsluck's picture

You're not paying attention. This program has no limit and is based on FLOW, not STOCK. Continuous QE requires no number.

Thu, 09/13/2012 - 13:27 | 2790641 Frastric
Frastric's picture

Welcome to the endgame, the Fed and ECB have gone all in, they must only work harder to ensure markets keep rising regardless of inflationary pressures.

Thu, 09/13/2012 - 13:28 | 2790652 deejo
deejo's picture

expand forever ?

i'm sure i read it wrong, but I thought the other day the article here mentioned that the Fed is runnign out of things to buy, with like $480 billion left to mess around with ?

Thu, 09/13/2012 - 13:49 | 2790782 Urban Redneck
Urban Redneck's picture

Treasuries (which he`s still buying via twist) there`s a somewhat more linitied supply, but it isn`t like either candidate for presidon`t is actually going going to reduce spending/borrowing

MBS (today`s QE) gets crap off the banks balance sheet and on to the tax payers` at an initial speed of 1/2T per year, and he can hit the gas w/o announcing a new program...

 

Thu, 09/13/2012 - 14:08 | 2790946 donsluck
donsluck's picture

Kinda like Nixon's problem with the slow illegalization of drugs as they were invented (used to jail his dissenters). Change the structure to a classification which automatically makes them illegal without involving Congress. Now the Fed can continue without announcement.

Thu, 09/13/2012 - 13:28 | 2790653 Uncle Remus
Uncle Remus's picture

What's that glowing in the bottom of the lake?

Thu, 09/13/2012 - 14:08 | 2790955 donsluck
donsluck's picture

Brass shines, gold is dull. You must not have any gold, eh?

Thu, 09/13/2012 - 14:19 | 2791030 Uncle Remus
Uncle Remus's picture

Glow and shine are not the same. And no, I don't. It's what's glowing at the bottom of the lake.

Thu, 09/13/2012 - 13:29 | 2790659 Bazinga
Bazinga's picture

Sitting here since the announcement I was saddened (only for a second!) that mostly everyone around me has NO FRIGGIN' IDEA what the announcement of QE today means. So many walk around thinking "it's getting better". At least I can come here to ZH for reality and humor!

Thu, 09/13/2012 - 14:16 | 2791006 Race Car Driver
Race Car Driver's picture

Maybe if the news cycle wasn't stuffed with burning embassies and dead Ambassadors, worthless election coverage/celebrity gossip, rumors of war, and record bad weather - maybe folks would hear about the important shit.

Thu, 09/13/2012 - 19:53 | 2792727 lakecity55
lakecity55's picture

....which is why the "nooze" is full of bull shit stuff.

Not enough PM to go around.

Go ZH!

Thu, 09/13/2012 - 13:32 | 2790668 Shameful
Shameful's picture

I'm pondering the MBS purchases.  So over a long enough timeline the Fed will own the paper for property of the US.  Then we look at the possibility of the Feb being the largest landlord in the country.  You know they issued the Rentenmark in Wiemar Germany backed by German land and industry.  Just a thought...

Thu, 09/13/2012 - 13:34 | 2790693 kaiserhoff
kaiserhoff's picture

No matter how cynical we get, it's hard to keep up.

Thu, 09/13/2012 - 14:11 | 2790970 donsluck
donsluck's picture

The Fed doesn't want the land, as it requires work to keep it up. Real estate (except farm land) is a liability. This is slowly dawning on people.

Thu, 09/13/2012 - 14:25 | 2791069 Shameful
Shameful's picture

Why?  Can the local/state gov levy a tax on the Fed?  Not bloody likely.  They claim to be a part of Fed gov and can shunt past that and collect a rent. 

Or in the brave new post industrial world we could see a rewilding, so while the land might not be producing it has value for that purpose, if only to keep people off it.

Thu, 09/13/2012 - 14:16 | 2791007 n8dawg84
n8dawg84's picture

I'm trying to find some more information on how the Rentenmark actually worked.  So far, I can only find simple definitions of what it was.  With gold/silver certificates, you could turn in the paper for metals of a predetermined weight, i.e. a gold eagle or silver dollar.  I can only assume it'd be similar using predetermined amounts of land instead of metals, if you took the Rentenmark back to the issuing Rentenbank.  Google is failing me in my search for answers...

Thu, 09/13/2012 - 14:28 | 2791088 Shameful
Shameful's picture

Nope.  While in theory it was backed by land and goods, one couldn't actually cash it in for said land or goods.  In other words it wasn't directly convertible, least according to my recollection of "When Money Dies".  What it did do is give the illusion of stability which in a make believe system is often enough.  The fiat paper works because people believe it works, a kind of magic.

Thu, 09/13/2012 - 14:54 | 2791308 n8dawg84
n8dawg84's picture

Thanks for the answer, and thanks for giving me another book to read.  Cheers!

Thu, 09/13/2012 - 16:18 | 2791864 ParkAveFlasher
ParkAveFlasher's picture

The rentenmark was just another price fixing scheme to restore confidence and cool down the presses. 

Thu, 09/13/2012 - 13:34 | 2790696 Cult of Criminality
Cult of Criminality's picture

While everyone is euphoric over the metals news,My chart shows a gap in the silver chart to the downside.I only mention this because, all of this year and prior (year before), the gaps to the downside closed fairly soon and overshot a bit more further down.So, this has worked for me in the past to keep some fiat around for when the gap closes as at sometime, it will.As long as the trend of the asset is going upwards with some momentum you have probably gotten in close to a bottom (or dip) saving your costs of purchase.

It may be next year but my observations mentioned above have been the case so if you are going to go on a buying spree on silver do some research.

The gap was down at about $31.70 have not noticed a gap in Gold

 Cheers and good day

Thu, 09/13/2012 - 14:02 | 2790880 JailBank
JailBank's picture

I would think the only thing bringing this rise down would be margin hikes.

Thu, 09/13/2012 - 17:51 | 2792236 Arcturus
Arcturus's picture

Looking at the charts on Netdania silver spot I see no gaps at all. That is even on the 4 hour chart. IMO Netdania has the most accuruate charts around. Pure forex even has the ticks.

 

http://www.netdania.com/Products/live-streaming-currency-exchange-rates/...

Thu, 09/13/2012 - 13:35 | 2790700 dragoneyes74
dragoneyes74's picture

Wow, I got insanely aggressive with buy stops just over the price at the time of the announcement in gold and silver.  Leverage is sometimes a good thing.  I'm gonna have a good weekend.  

I know I promised Bernanke a reach-around to not do QE today, but I nailed the trade so the offer still stands.  Look for me at the press conference.  

Thu, 09/13/2012 - 13:37 | 2790707 Bam_Man
Bam_Man's picture

Not transitory, bitchezzzzzzzz!!

Thu, 09/13/2012 - 13:37 | 2790715 Börjesson
Börjesson's picture

"I would like to select ... a new person to that chairman position, someone who shared my economic views, someone that I thought was sympathetic to the needs of our nation and I want to make sure that the Federal Reserve focuses on maintaining the monetary stability that leads to a strong dollar and confidence that America is not going to go down the road that other nations have gone down to their peril."

- Mitt Romney, August 23

 

"Up yours, Mitt!"

- Ben Bernanke, September 13

Thu, 09/13/2012 - 13:49 | 2790787 Temporalist
Temporalist's picture

Rmoney's version of "not Ben" is "Lil' Tim"

Thu, 09/13/2012 - 14:16 | 2791004 donsluck
donsluck's picture

Romney is making some serious blunders. Attacking women allowed the Dems to market to half the population. Attacking Bernanke forced the Fed to get behind Obama. Whatever, I'm voting Green, no more Blue or Red for me!

Thu, 09/13/2012 - 14:28 | 2791096 Watauga
Watauga's picture

"attacking women"?  WTF are you talking about?  Seriously, did you just open up the Statist/Leftist/Collectivist press kit and pull out one of about a dozen standard lies?

Thu, 09/13/2012 - 15:01 | 2791361 Chuck Walla
Chuck Walla's picture

"attacking women"?  WTF are you talking about?  Seriously, did you just open up the Statist/Leftist/Collectivist press kit and pull out one of about a dozen standard lies?

 

Give him a break. Shits really, really slow over at OFA and MOVEON. The drones have to be somewhere!

FORWARD SOVIET (ofa)!

Thu, 09/13/2012 - 13:38 | 2790717 Marigold
Marigold's picture

$2,000 by year end. Unfortunately that represents a debasement of what ever currency we are all forced to work for.. so best cash in the fiat for real gold and silver !

Thu, 09/13/2012 - 17:16 | 2792111 philosophers bone
philosophers bone's picture

$2,000 / oz also represents a debasement of phyiscal gold!

Thu, 09/13/2012 - 13:40 | 2790723 mr_T
mr_T's picture

I pity fiat..

Charlie kiss my ass. H
Hows that for civilized?

Thu, 09/13/2012 - 13:40 | 2790725 Cult of Criminality
Cult of Criminality's picture

Along with that mentioned above, if you have the nuts, sell some today or in a day or two while price is high, before the next smackdown,gap close.. then buy back in at the lower price.Physical of course.

Thats my game anyway,works for me.

Thu, 09/13/2012 - 13:44 | 2790746 RobD
RobD's picture

So how much will it cost to buy up all the MBS out there? With the way things are going int he mortgage writing industry there is not a lot more being added to the pile so when will the FED run out of MBS paper to buy?

Thu, 09/13/2012 - 13:45 | 2790754 PicassoInActions
PicassoInActions's picture

From now on the election should be easy.

Which ever candidate will promiss to remove BDM ( bennya da men or Big Ben) that one is going to win.

Thu, 09/13/2012 - 13:46 | 2790757 Cangaroo.TNT
Cangaroo.TNT's picture

Who wants to bet that Ben related best to Jan Brady?  Going over her test scores...adding them up...figuring out they tally incorrectly....  Marcia Marcia Marcia!

Thu, 09/13/2012 - 16:35 | 2791951 macktheknife
macktheknife's picture

I'll meet you in the ZH webcam section, bring some extra bitcoins and you get Jan and Cindy too

Thu, 09/13/2012 - 13:46 | 2790761 Lost Wages
Lost Wages's picture

"It also means that very soon stocks are about to realize what soaring "input costs" mean for the bottom line."

I'm beginning to think comments like this are a pipe dream. The Dow is probably going to 100,000 now. Admit it.

Thu, 09/13/2012 - 13:47 | 2790765 Kastorsky
Kastorsky's picture

Nicest guy ever!

http://i50.tinypic.com/u2eqg.jpg

 

Thu, 09/13/2012 - 13:50 | 2790791 Anasteus
Anasteus's picture

That's right, Benjamin is and has always been goldbug's best friend. But also an opportunity for many to realize what sound money really looks like.

Thu, 09/13/2012 - 13:50 | 2790793 Barry McBear
Barry McBear's picture

I just bought my first monster box of silver today after the announcement. Better late than never.  I'm already onside $0.50 per coin.  Thank you Chairsatan!

Thu, 09/13/2012 - 17:56 | 2792260 Arcturus
Arcturus's picture

What the heck were you waiting for? The price to rise? Though it is better late than never and may mean nothing whatsoever in another 2 years when it hits 75.

Thu, 09/13/2012 - 13:50 | 2790794 Mitch Comestein
Mitch Comestein's picture

It is interesting to see the reactions in the different markets.  AG futures are about flat per the DBA.  Oil is tame (for oil) and Nat. is down.  Silver just crapped a rocket ship.  Too bad I sold/traded most of mine over the last two days.  One of the guys I sold to sounded like a Apmex commercial.  It was annoying. 

Intel is up just a fraction.  I have the feeling that the market will want MORE, MORE, MORE in a few days/weeks. 

Thu, 09/13/2012 - 13:52 | 2790804 falak pema
falak pema's picture

gold @ 1759? Silver @ 34.4?

WHat is the gain since Jan 1 2012, anyone have the figures?

Thu, 09/13/2012 - 14:24 | 2791060 ParkAveFlasher
ParkAveFlasher's picture

Please don't make me hit Kitco again today.

Thu, 09/13/2012 - 13:59 | 2790862 which way weste...
which way western man's picture

"jews" are taking their counterfeiting schemes to the next level.

When does the justifiable payback from all corners of the Earth catch up with this sociopathic race cult?

Thu, 09/13/2012 - 14:00 | 2790865 Mudja
Mudja's picture

LET THE DOLLAR HIT THE FLOOR! LET THE DOLLAR HIT THE FLOOR!

New #1 club song!

Thu, 09/13/2012 - 14:01 | 2790875 NoTTD
NoTTD's picture

Bang! Zoom!  We're go(lden) to the Moon!

Thu, 09/13/2012 - 14:03 | 2790896 youngman
youngman's picture

You should have bought your gold 5 years ago....what is happening today is just what we were predecting years ago....you need to be thinking out two years now...today...

The Fed is out of bullets....they just open ended it...many many people will now start buying gold and silver....I would love to know today what Soros, Buffett, Pimco is doing.....we fellow gold bugs know what we did.....but did the talkers walk the walk....Is JPM sweating today....???

 

If you could buy a 30 year treasury or gold.....what would you spend you  money on????

Thu, 09/13/2012 - 14:03 | 2790900 JailBank
JailBank's picture

All I can think right now is I should have bought more.

Thu, 09/13/2012 - 14:09 | 2790960 TrumpXVI
TrumpXVI's picture

It's days like this that convince me that I'm a genius:)

Thu, 09/13/2012 - 14:14 | 2790992 Bastiat
Bastiat's picture

A round of applause for Jim Sinclair who has said for years this is just where we were going. 

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