Cue Hyperinflation In 5... 4... 3...

Tyler Durden's picture




 

This pretty much says it all:

  • BOE'S POSEN SAYS TIME FOR CENTRAL BANKS, INCLUDING BOE, TO BUY PRIVATE ASSETS
  • POSEN SAYS BUYING PRIVATE-SECTOR ASSETS WOULD HELP ECONOMY

Buy. Real. Assets. Now

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Mon, 06/11/2012 - 10:30 | 2514404 SeverinSlade
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I'm long Twilight Breaking Dawn Part II lunchboxes.

Mon, 06/11/2012 - 10:34 | 2514431 Stackers
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Ag. for 2014

Mon, 06/11/2012 - 10:43 | 2514500 SelfGov
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++ whether Ag. means Silver or Agriculture.

Mon, 06/11/2012 - 10:47 | 2514530 Colombian Gringo
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To be shortly followed by the US Fed.

Mon, 06/11/2012 - 10:54 | 2514572 slewie the pi-rat
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brownian motion being labile...

everything goes red with bearish vigah

Mon, 06/11/2012 - 12:35 | 2515113 zaphod
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Ben needs everyone (banks, treasury, pols & public) begging for QEx before he can go truly hogwild.

I'd say we are in a "wait for it, wait for it" situation.

Mon, 06/11/2012 - 13:02 | 2515230 John Wilmot
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...Don't fire till ya see the whites a' their pockets!

Mon, 06/11/2012 - 11:10 | 2514651 jus_lite_reading
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One word to describe this atrocity: PONZI

They are REALLY looking to start something...

...instigating global class warfare. It won't begin, progress or end well.

Mon, 06/11/2012 - 13:55 | 2515396 blindfaith
blindfaith's picture

 

 

 

Let us not forget that the squid tenticles reached from Canada to the UK recently with the BOE appointment.

 

Why is anyone surprised???  After all they are doing God's work, without the burden of a bunch of commandments to stiffel the effort.

Mon, 06/11/2012 - 10:38 | 2514456 MillionDollarBonus_
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Quit the whining - this makes perfect sense to me. Why should Bernanke buy treasuries when rates are at all time lows? It makes far more sense to monetize other assets, particularly stocks and mortgage backed securities, in order to stimulate the economy.

Mon, 06/11/2012 - 10:42 | 2514492 Liquid Courage
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"in order to simulate the economy."

FIFY

Mon, 06/11/2012 - 10:49 | 2514550 narapoiddyslexia
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MDB sometimes presents a conundrum. Should I hit the down arrow because its bullshite, or the up arrow because its good trollery? The cynicism seems over the top today, so today I gave it a plus 1.

 

Mon, 06/11/2012 - 11:00 | 2514605 Think for yourself
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I hit the biggest of either. With MDB, it's not red or green, it's the amplitude that counts.

Mon, 06/11/2012 - 11:11 | 2514656 Byte Me
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MOMO voting?

I'm liking it. And why not -- every other social metric varies from suspect to outright fucked.

I gave Bonearse a redddie...

Mon, 06/11/2012 - 12:12 | 2515007 hedgeless_horseman
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MOMO voting?

Everybody is doing it.

Mon, 06/11/2012 - 14:05 | 2515431 mick_richfield
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Seriously? 

Then so will I.

I don't want to be nobody !

Mon, 06/11/2012 - 12:15 | 2515020 Bananamerican
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don't give "Bonearse" a reddie....

give him some love.

ZH has Banzai, Limerick, star posters.....and MDB

Jes' get out the way & let the genneman DO his THANG.

MDB delivers his satire with the same insouciant elan of its comfortably clueless originators in academia, the MSM and "think tanks" (are those places where thought goes to drown?)...

He lays out the "official voice" of our times, suggesting "cake" for the masses menu...

Mon, 06/11/2012 - 11:13 | 2514662 Leopold B. Scotch
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Price discovery is so 1900s.

Mon, 06/11/2012 - 12:21 | 2515052 Liquid Courage
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Hey, I'm liking my amplitude on this one. MDB may be the best straight man since Bud Abbott.

Mon, 06/11/2012 - 13:49 | 2515381 Jack Sheet
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MDB is a program

Mon, 06/11/2012 - 11:13 | 2514664 jus_lite_reading
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I am beginning to wonder if this is simply posturing on their part to get the retail suckers to BUY ponzi stock, but in the end the CB's do nothing... (they KNOW once they begin such a suicidal move to buy "private" assets, hyperinflation follows close behind, thus my take this is pure bluff)

Mon, 06/11/2012 - 10:44 | 2514504 DeadFred
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They get to push a button on a computer to create money and use it to buy shares in profitable businesses, real estate and such? Sweet, where do I sign up so I can do that too?

Mon, 06/11/2012 - 11:26 | 2514747 Zero Govt
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Posn and Bernanke not only need to justify why central banks buying commercial assets is "good" for an economy but also detail the Exit Plan and dates and what they think will happen to the value of said assets when they sell

if the BoE and Fed are to become mortgage and stock holders the onlòy reason is the retail banks cannot sell them on, there is no market for them

Posn and Bernanke are bankers bitches, Govt pooper scoopers, what a sham/shambles

Mon, 06/11/2012 - 22:11 | 2516723 JeffB
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The Fed's already got a decent sized mortgage portfolio and has been egging lenders on to make more low down payment mortgages.

They also claim to be making money (on their "investments").

 

Mon, 06/11/2012 - 10:44 | 2514505 mayhem_korner
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...cuz monetization's worked so well thus far?

Mon, 06/11/2012 - 12:25 | 2515069 Matt
Matt's picture

If at first you don't succeed, try, try, try again.

Mon, 06/11/2012 - 10:45 | 2514511 Hedgetard55
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Like trying to stimulate a corpse.

Mon, 06/11/2012 - 10:52 | 2514565 monkeys.pick.bottoms
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It's legit only if it's been dead for less than 6 hours;)

Mon, 06/11/2012 - 11:10 | 2514653 Calmyourself
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Move to Egypt you can screw anything if it's still warm.. Hey, maybe Ben is really an Egyptian, I will have to watch him walk..

Mon, 06/11/2012 - 14:31 | 2515539 XitSam
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Hey, it worked for Frankenstein! Well, sorta. For a little while.

Mon, 06/11/2012 - 10:45 | 2514513 Beam Me Up Scotty
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Or will they use the money to short gold?

Mon, 06/11/2012 - 12:07 | 2514984 lasvegaspersona
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Scotty

REMEMBER

Gold is back by nothing, Treasuries are back by the 'full faith and credit of the USG'...bet ya forgot that didn't ya..

Mon, 06/11/2012 - 10:47 | 2514528 Pure Evil
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Ya, nothing like worthless paper used to purchase worthless paper.

Mon, 06/11/2012 - 10:49 | 2514548 narnia
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Hasn't worked all that well for the Bank of Japan

Mon, 06/11/2012 - 10:58 | 2514592 BeetleBailey
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+100 Narnia. AMEN. What trolls like MDB don't get: Japan tried that already - several times - and if the Japanese can't pull out, being as prudent and disciplined as they are.....

9 times a "stimulus" over there....and counting....?

Mon, 06/11/2012 - 11:33 | 2514765 Zero Govt
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exactly

all the evidence to date, both in Japan and since 2008, is that central bank stimulus DOES NOT WORK

the BoE did not see it coming and have fixed nothing since. The entire worthless bunch of tea sippers at the BoE should be SACKED ..they're a bunch of useless inept toadies

Mon, 06/11/2012 - 12:04 | 2514968 Totentänzerlied
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But Nobel laureate economist Dr. Paul Krugman says that's because the stimulus is too small! Now bow down and worship at the Keynesian alter, slave!

Mon, 06/11/2012 - 12:29 | 2515088 Matt
Matt's picture

If brute force doesn't work, apply more. Same applies to explosives and stimulus. Just keep doing it again and again, bigger and bigger, until you succeed. 

Mon, 06/11/2012 - 10:57 | 2514584 Dr. Richard Head
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Regardless of whether or not you are a troll, I have a question.  If purchasing other assets and liquidity injections is beneficial to economies, then why can't every person in the world role up to the discount window, get some 0% loans, deposit those funds into the bond market for a short-temr basis, pick up the interest and stimulate themselves?  I like stimulating myself.

Mon, 06/11/2012 - 11:38 | 2514800 Zero Govt
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because as you are well aware this "stumlating the economy" is nothing but windown dressing (lies) to cover the real game, bailing out bankrupt bankers and bankrupt politicians

Posn and Bernanke know about as much about the real economy as Daffy Duck knows about coal fired power stations

Mon, 06/11/2012 - 12:00 | 2514936 Uchtdorf
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When you pull up to that discount window, the kid at the window is going to ask you if "you want fries with that?"

Mon, 06/11/2012 - 10:58 | 2514591 Chaffinch
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By late 1923, the Weimar Republic of Germany was issuing two-trillion Mark banknotes and postage stamps with a face value of fifty billion Mark. The highest value banknote issued by the Weimar government's Reichsbank had a face value of 100 trillion Mark (100,000,000,000,000; 100 million million).[10][11] At the height of the inflation, one US dollar was worth 4 trillion German marks. One of the firms printing these notes submitted an invoice for the work to the Reichsbank for 32,776,899,763,734,490,417.05 (3.28 × 1019, or 33 quintillion) Marks.[12]

Courtesy of Wikipedia

Mon, 06/11/2012 - 11:26 | 2514723 epwpixieq-1
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If it makes a perfect sense to you, you better check you senses. What is wrong with with a systems where ONE authority, decides what is "valuable" well EVERYTHING. This was not even possible under in the socialist east countries. They just created the price control and all of the goods disappeared.

If Bernanke, goes after the the valuable things, why not go after the food products. Buy a lot of them, and store everything. This will be the best use for the buck. I bet that after such, actually quite wise investment decision, there will be wide spread civil war.

Bernanke will go after, particular assets, "value" of which will tend to preserve the current, unsustainable, status of the corrupt and inefficient economic system. By the way, economic comes from economize ( do with least resources ), and it is totaly different from what this system has become. It is not ECONOMical it is WASTical.

Mon, 06/11/2012 - 12:11 | 2515004 lasvegaspersona
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epw...except the term 'trillion' was not in use... a million million was a millione as in the 'madness of milliones'...When Money Dies

Mon, 06/11/2012 - 12:34 | 2515104 Matt
Matt's picture

I guess you did not get the memo. The NDAA allows the government to nationalize the farms, transport and supermarkets to ensure national security. They can control the price of food, and make sure everyone has an EBT.

The masses will be complacent (complicit?) and there will be no civil war, at least not in North America.

As for those poor countries that refuse to depeg their currencies, and lack the foresight to have food stamp programs, they will be screwed.

Mon, 06/11/2012 - 14:05 | 2515429 ParkAveFlasher
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You are precluding a military coup and civil war between heavily armed factions.  Why?

Mon, 06/11/2012 - 17:38 | 2516100 Matt
Matt's picture

If there is a military coup, who is the other heavily armed faction that is going to fight them?

Mon, 06/11/2012 - 12:34 | 2515108 LoneCapitalist
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Please dont feed the trolls!

Mon, 06/11/2012 - 11:25 | 2514729 No Euros please...
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@M$B. LOL! That was sarcasm? Right?

Mon, 06/11/2012 - 11:40 | 2514814 francis_sawyer
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 "It makes far more sense to monetize other assets"

~~~

Might as well just cut to the chase then & get about 'monetizing' grandma's catfood...

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