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The Chart That Shows QE3 Failed Before It Even Started

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Wed, 09/07/2011 - 14:58 | 1643153 BaBaBouy
BaBaBouy's picture

Keynesian GOLD Kill Is On AGAIN Today...

Its their Primary Weapon, Keeps them in Power,
and the rest of the sheeple as their slaves...

Wed, 09/07/2011 - 15:05 | 1643172 Azannoth
Azannoth's picture

They can only short paper gold, they can't (yet) come into your house and sell your gold for you, so who cares just buy more

I am personaly freeking out a bit at how expensive gold has become and I almost can't afford it anymore, last year I was buying with both hands now I am forced to wait for drops like this so a price breather like this suits me just fine

Wed, 09/07/2011 - 15:08 | 1643187 nope-1004
nope-1004's picture


then just why is the Fed focusing on lowering long bond yields even more?


There is no other "policy" left in the Keynesian textbook.  Benocide is running on fumes in an attempt to keep banks afloat.

 Better to look good than to be good, I guess.


Wed, 09/07/2011 - 15:10 | 1643208 BaBaBouy
BaBaBouy's picture

Of course... They Will Fail... Eventually...


Meanwhile, back at the Ranch...

Wed, 09/07/2011 - 15:12 | 1643221 Popo
Popo's picture

there is still war. And we should not forget that it was war that made Keynes look correct the first time around.

Wed, 09/07/2011 - 15:48 | 1643365 Leopold B. Scotch
Leopold B. Scotch's picture

Look correct?  For moron believers in the broken window fallacy, at least.

Wed, 09/07/2011 - 15:53 | 1643376 B9K9
B9K9's picture

I still chuckle upon recollection of the old hippies plaintive cries that "war is not the answer". Jeez, on the contrary, war is always the answer. It's been that way since the first proto-humans realized it's much easier, and a lot more satisfying to boot, to murder some other tribe, steal their crops, and screw their wives & daughters.

This time around, the war aims won't necessarily be directed towards asset acquisition (we already control the ME oil), and/or destruction of competing productive capacity (see WWII). No, this time around, the war objectives will be focused on a two domestic fronts: destroy all pensions/savings (mostly the elderly & retired) and destroy all entitlement programs.

Under the ruse & fog of war, the various allies can usher in hyper-inflation in which to make the huge, unpayable debt overhang magically disappear. With a few EOs and other associated war powers acts, we can have price controls, anti-blackmarket regulations (eg barter), confiscate gold, and allocate resource (um, food, gas, etc) aka "rationing", all wrapped up with nice, 20 year sentences for violations.

If the war could continue for another 10 years, just think how many oldsters might die off, making the problem of anyone with a living memory of 'how things used to be' that much easier to manage. And with a new underclass comprised of illegals, the entitlement cut-off could be achieved with nary a whimper of complaint.

Never forget that all organizations reach the point of self-awareness and the survival instinct. At this point in time, the federal gov't bears absolutely no bearing on some fantasy concept of representing citizens, but is rather in full blown survival mode. The outline above achieves all the important requirements of ensuring COG, which is why they will be implemented.

Wed, 09/07/2011 - 16:10 | 1643437 Leopold B. Scotch
Leopold B. Scotch's picture

Parasites should be careful not to kill the host...

Wed, 09/07/2011 - 16:43 | 1643563 Raymond Reason
Raymond Reason's picture

Son of a motherless goat!  Ok B9K9, you have my respect.  A very succinct reckoning.  "Never forget all organizations reach the point of self-awareness and survival instict".  Never heard it put that way, but its what i've been thinking for years.  God, i hope you're wrong about where this is going though. 

There has to be a point where the govt simply doesn't have the resources to wage war abroad, and micro-control every little thing domestically.  Maybe the police state will be transitory. 

Wed, 09/07/2011 - 17:04 | 1643620 New_Meat
New_Meat's picture


"There has to be a point where the govt simply doesn't have the resources to wage war abroad, and micro-control every little thing domestically."

Well, that point is South of 1940 in the U.S.

We're a long-long-long way above that "starting point."

- Ned

Wed, 09/07/2011 - 23:31 | 1644761 Raymond Reason
Raymond Reason's picture

So your point is the govt is already leveraged as hell, a paper tiger essentially?  Agreed. 

Wed, 09/07/2011 - 18:07 | 1643779 RockyRacoon
RockyRacoon's picture

I still chuckle upon recollection of the old hippies plaintive cries that "war is not the answer".

What was the question that war was supposed to answer?   Was it the same then as now?   During the marches of the 1960s I was in high school in a sleepy little town, and then into the Air Force until the early 1970s.   I missed the street movement but got to see it from the bleacher seats.   What a hoot!   I'd love to participate this time around.

Wed, 09/07/2011 - 20:26 | 1644133 BlackholeDivestment
BlackholeDivestment's picture

B9K9, ...mark of the beast? http://www.youtube.com/watch?v=XVEflECtfBM

Wed, 09/07/2011 - 15:19 | 1643244 hambone
hambone's picture

Hmmm...could the "why" of pushing rates have as much or even more to do w/ CRE and ability of banks to roll non-performing loans to ever lower interest rates???  Extend / pretend / one look at IYR should say it all.

Wed, 09/07/2011 - 17:06 | 1643624 Thomas
Thomas's picture

A colleague, just this morning, told me that he got a 15 year fixed rate refi at 3.5%. I wished him well but could not help but suspect that I was somehow subsidizing his loan with my tax dollars and debased savings. The free market would demand a greater return. I am feeling very Orwellian of late.

Wed, 09/07/2011 - 15:55 | 1643386 Clorox Cowboy
Clorox Cowboy's picture

It all becomes perfectly clear once you have a PhD.  Univ of Pheonix just created an online 12 week Doctor of Money Science degree...I suggest you go rack up some student loan debt ASAP!

Wed, 09/07/2011 - 18:37 | 1643892 sun tzu
sun tzu's picture

Lower long rates and allow everyone to refi for a flat $1500 fee to 4%. Free up hundreds of billions for the economy. The only way it would work is if the refi'd mortgages are recourse. Money for mortgage brokers and homedebtors.

Wed, 09/07/2011 - 18:44 | 1643912 sun tzu
sun tzu's picture

Lower long rates and allow everyone to refi for a flat $1500 fee to 4%. Free up hundreds of billions for the economy. The only way it would work is if the refi'd mortgages are recourse so the taxpayers won't get fucked too royally. Money for mortgage brokers and homedebtors.

Wed, 09/07/2011 - 15:17 | 1643239 Quinvarius
Quinvarius's picture

You can't afford not to buy it.  I own a few half ounces and quarter ounces from times when i didn't have much money for savings.  I have no problems going to grams if it comes to that.

Wed, 09/07/2011 - 16:42 | 1643552 Manthong
Manthong's picture

Ten years or less from now people will be commonly transacting in milligrams.

Wed, 09/07/2011 - 18:45 | 1643916 sun tzu
sun tzu's picture

In that case, I think silver would be a better choice

Wed, 09/07/2011 - 23:40 | 1644793 StychoKiller
StychoKiller's picture

Gold can still be bought in fractions of an oz and in grams...

Wed, 09/07/2011 - 15:14 | 1643226 samsara
samsara's picture

Don't think of the $100 swings in Au and $5 swings in Ag as 'Volatility',

Think of them as convulsions.  

Wed, 09/07/2011 - 15:32 | 1643302 Bendromeda Strain
Bendromeda Strain's picture

No. Birthing pains...

Wed, 09/07/2011 - 17:08 | 1643627 Thomas
Thomas's picture

Side effects of Bongo.

Wed, 09/07/2011 - 15:49 | 1643366 Nascent_Variable
Nascent_Variable's picture

I can't shake the feeling that the war on gold hasn't even started in earnest.  I still think there will be a major plunge in the next year or so.  But in the end, the central planners won't be able to contain it, no matter how hard they try.

Even if there is a severe drop soon, it is still the safest long term bet available.

Wed, 09/07/2011 - 16:33 | 1643520 Ruffcut
Ruffcut's picture

Who in the fuck knows what QE we are really on. THe friends of Ben are his masters, at the same time.

They might be printing and giving to such a degree that would make your head explode, back out of your ass.

I still feel the market could go north to uncharted waters. Do people really give a shit even when you know its ponzi, as long as your wallet gets fatter?

I thought not.

Wed, 09/07/2011 - 15:01 | 1643167 CvlDobd
CvlDobd's picture

Surely TNX, TYX, and the DAX are wrong and the 500 is right.

Wed, 09/07/2011 - 19:00 | 1643961 sun tzu
sun tzu's picture

Could it be that the market thinks sovereign debt is more risky than corporate debt and equities? When the Third Reich fell, German industry survived. The same happened with the Japanese Empire. 

Wed, 09/07/2011 - 15:02 | 1643169 youngman
youngman's picture

Because they really don´t know what to do....they can´t just bail out the banks all the time...they do..but they have to look like they are doing something for the little guy

Wed, 09/07/2011 - 15:03 | 1643175 Belarus
Belarus's picture

I think the next major move will be.....

Silver. It will take out $50 ounce. I think Faber is right on the market; bulls and bears are going to be disappointed. 

Wed, 09/07/2011 - 15:31 | 1643296 SumSUN
SumSUN's picture

Gold will pass tha torch to silva.

Wed, 09/07/2011 - 16:10 | 1643433 Josh Randall
Josh Randall's picture

That stock to Silver price spread has got to be killing The Morgue!

Wed, 09/07/2011 - 15:13 | 1643186 hedgeless_horseman
hedgeless_horseman's picture





...why is the Fed focusing on lowering long bond yields even more?


...the only other reason for QE is and continues to be the funneling of zero cost money to banks via excess reserves which can then be used for all sorts of asset levitating fungible purposes.

The Fed is of the banks, by the banks, and for the banks. Higher rates would spell disaster for the banks that are marking assets to myth and still razor thin on actual reserves.

Not too hard to figure out, folks.

Wed, 09/07/2011 - 15:20 | 1643250 WeekendTrader
WeekendTrader's picture


The Federal Reserve is neither Federal nor does it have Reserves.

Details, details.....


Wed, 09/07/2011 - 15:30 | 1643286 Seer
Seer's picture

No reserves?  Is that like the EU, which recently stated that banks will be required to have less reserves?  Isn't this a good thing?  Have less of what's worthless?  Maybe they're coming to their senses? </sarc>

Wed, 09/07/2011 - 16:13 | 1643451 fishface
fishface's picture

lots of paper and ink


You don't call that reserves  ;-)

Wed, 09/07/2011 - 16:13 | 1643455 Leopold B. Scotch
Leopold B. Scotch's picture

My currency is backed by loans paid in my currency mostly paid with freshly minted units of my currency!

Who could possible want more?

Wed, 09/07/2011 - 15:25 | 1643267 Seer
Seer's picture

But, but... wouldn't it be much simpler to just do, as the EU has done, reduce the reserves that banks have to have?  If you don't have enough money then don't make money a requirement- there! poof! "problem" "solved!"  Could there be a greater farce (complete defiance of logic)?

Next thing they'll be trying to tell us that gravity doesn't exist... Oh, wait!  They already did do this- 9/11!

Or, do like here in the US, pump more inflated dollars into the self-digging hole.


Wed, 09/07/2011 - 15:06 | 1643189 Romanzo
Romanzo's picture

Market saying to Bernanke:I m giving you your QE3, just fix the jobs! 


Wed, 09/07/2011 - 15:07 | 1643193 PaperBear
PaperBear's picture

QE3 won’t fail to put a giant rocket under gold/silver.

Wed, 09/07/2011 - 15:09 | 1643199 baby_BLYTHE
baby_BLYTHE's picture

...nevermind we are only some $45-50 billion away from hitting the debt ceiling yet again! Who wants to bet we won't hear dick about this in the MSM media?

Wed, 09/07/2011 - 15:23 | 1643255 Ahmeexnal
Ahmeexnal's picture

Baby, that's why Ogolfer will lie and claim that the money needed is not for compound interest debt payment but for job creation. At least 300bill is the figure being handled.

Wed, 09/07/2011 - 15:42 | 1643341 NotApplicable
NotApplicable's picture

Don't they just have to do a ceremonial dance in order to invoke the next level? Or was it a goat sacrifice? Stuff changes so fast these days, it's hard to keep up.

Wed, 09/07/2011 - 16:38 | 1643536 Seer
Seer's picture

Hey!  Let's not drag goats into this discussion!  Goats are honorable (and have utility)!

Wed, 09/07/2011 - 15:10 | 1643206 Belarus
Belarus's picture

Every time you see these hail marys, the market skyrocketing in unison with Gold and Silver dropping only tells you the scumsuckers have lost control. Therefore, of course, Gold and silver are set to go higher. All these are is "sucker" rallies...nothing more or less. 

Wed, 09/07/2011 - 15:20 | 1643247 Quinvarius
Quinvarius's picture

Indeed.  Stocks up with gold down always means buy gold.  Stocks are only rising for the same reason as gold, but from a far weaker fundamental base.  It is only money creation moving both markets.

Wed, 09/07/2011 - 17:29 | 1643680 Alpha Monkey
Alpha Monkey's picture

Except, people are buying gold.

Wed, 09/07/2011 - 16:42 | 1643554 kito
kito's picture















when all of these phrases are replaced with the word "dollar" or 'fiat" i will sell my gold. until then remember:

make new friends but keep the old, one being silver, the other being GOLD!!

GOLD BITCHEZ!!!!!!!!!!!!!!!!!!!!!!!!!!!!



Wed, 09/07/2011 - 15:10 | 1643209 samsara
samsara's picture

All those bullet points add up to one thing.

A BIG False Flag somewhere and WAR WITH IRAN

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