Fed Dove Evans Open Mouth, Demands More QE, Sends Gold Soaring

Tyler Durden's picture

Who would think that all it takes for gold to surge by $40 in under an hour is for the Fed to resume the old song and dance. Yet that is precisely what happened: ever since Chicago Fed president Evans sat down with Steve Liesman to discuss that he would be in favor of more easing, and saying he believes in "room for accommodation" and that we "still need to do more on monetary policy", gold soared from under $1790 to over $1830. And confirming that gold will go far higher is his statement that "Fed policy was not a driver of the commodity price surge." In other words, these buffoons have not learned anything, and the commodity price shock is coming. However, as usual, it will be blamed on speculators. Luckily the CME can hold them in their tracks with a relentless series of margin hikes. Or not. When will the CME finally hike margins on printer toner cartridges?

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achmachat's picture

you're right, sure looks like it.

so the guys on CNBC who kept telling us to buy all those cheap stocks feel vindicated now?

in total honesty now, realistically speaking, how long do they have until the whole thing comes falling down?

MsCreant's picture

We need to see shortages of things you actually need before we get to a place I am willing to define as "falling down." We still have a little bit.

If you mean something else, friend, it is falling down now. Giants have further to fall so there is a slow motion effect to the whole thing.

PY-129-20's picture

This Interview is just remarkable. Swiss Banker Hummler is blaming Alan Greenspan in this interview for destroying the credibility of the fiat system.


MadMonkIvan's picture

Amazing interview indeed - thankyou!

TruthInSunshine's picture



Dear Ben, Please Print Us More Money

by Wolf Richter

Dear Ben,

Please print us more money. We want you to prop up the stock market. Everybody knows it's a Ponzi scheme that will collapse without your support. You don't want us to end up like Bernie Madoff's clients. No, Ben, we love Ponzi schemes. We get in early and get out before they collapse. That's why we're rich. The bad thing is that they sometimes collapse before we can get out. But you already bailed us out twice in the last couple of years through printing trillions of dollars. Why not a third time?


That will also keep the bond-market bubble inflated. We have to admit that you've done an excellent job there, hands down. Negative real yields all the way up the yield curve! Awesome. Now if you could just print a few trillions and buy up the sovereigns from the PIIGS. Euro crisis over. End of story. And we'd get richer because we'd sell them to you at face value though we bought them at fifty cents on the dollar.


And why not forever? Just keep printing. Because as soon as you stop, stock markets will crash again, and credit markets will seize, and then we're back on this awful ride to hell.


Of course, it'll cause inflation, which is good. You yourself said that. You stated many times that you want inflation. In fact, you said that one of the goals of the Fed, after propping up the markets, is to create inflation. So stick to it, Ben. Don't slack off suddenly just because some cowboy threatened you.


Inflation, in conjunction with your near-zero yields, has all sorts of benefits. For example, it will eat up the Social Security trust fund, whose $2 trillion balance is invested in treasuries. Fixed-income investors, retirees, and everybody who has any savings will also be demolished. And homeowners. But don't worry. They won't figure it out. They don't get a statement every month that shows how much inflation cost them. It's a quiet way of stealing from them, and it'll impoverish them over time, but it'll make us, the recipients of the money you print, richer.

You see, Ben, we can charge higher prices for our goods and services. And even if we have to pay more for raw materials, we look good. Our inventories increase in value, and we can claim sales jumped 10% because we raised prices by 10%. Analysts dig that.

Recently, Ben, you've done a decent job on inflation. In July, we were running at an annual rate of 6%. Not bad. But you need to preempt any cooling off. So keep printing.

Now, we're not talking about wage inflation. Oh no. We have to keep wages down. We need cheap labor, or else we'd have to send these jobs to China—which we're doing anyway. And not just to assemble iPhones...

Read the rest:

Link: Dear Ben, Please Print Us More Money

whstlblwr's picture

This post that Fed Evans whisper monetary easing then sends up commodity prices is why we want to vote for Ron Paul.

Also this is kind of thing to post on social sites because it clearly shows it's not speculators, no, it's Fed policy driving up costs of goods.

tiger7905's picture

Gall poll:34% of Americans see gold as the best investment.


Libertarian777's picture

however I bet you less than 1% of those 34% own a single oz of gold.

Flakmeister's picture

A lot of people have jewellery.... if you said 4 oz, I'd believe you. 

Crisismode's picture

Wouldn't it be just great if all bankers/politicians dropped the BS and talked straight like this guy?


Maybe in your next lifetime.

Thanks for the link.

IQ 145's picture

Gonna have to keep an eye on you, you may be a person who's paying attention. Ol Alan sure didn't help it any, did he?

MillionDollarBonus_'s picture

This is the right decision. I trusted our federal reserve officials and congessmen to do the right thing, despite the childish and cowardly attacks from the zero hedge readership, and my equity portfolio is now turning around. I have been rewarded for my patience and trust in our top quality leaders to do what is necessary.

espirit's picture

Sarc or no, you're an idiot. Blog (or troll) somewhere else.

Ausperity's picture

Million Dollar Bonus has been trolling here for months.  He is my favorite troll; he makes me laugh.  He actually turned down 2 jobs at think tanks to troll here.  You should be grateful.  I am.  Who doesn't like a Million Dollar Bonus?

IQ 145's picture

Ah, the female point of view. You mean, Bone-us, please, pretty please; do it again.

Crisismode's picture

And what think tanks are those?


The Marionettes Group, and

The Sphincter Osculators Group?

Flakmeister's picture

Actually, it was the Cato and Heartland Institutes....

Flakmeister's picture

I seem to have ruffled a few feathers.... wonder why? The two tanks I mentioned are merely fronts for fascist corporate interests. I will grant Cato a little slack, they have had a number of good pieces over the years. Heartland is just a bunch of Kochsuckers though.

SilverDOG's picture

Portfolio is turning around... and bending over. 

IQ 145's picture

You can have my turn; I don't want any.

dwdollar's picture

Haha...  thanks for the laugh.

PaperBear's picture

Oh boy, are you going to get burned.

How will your portfolio look when petrol/diesel costs $15 a galoon ? And a loaf of bread costs $5 ?

LongBalls's picture

Million Dollar Bonus is an idiot. Sadly, her/his post deserves no more response than that.

Hulk's picture

You need a sense of humor injection...

sullymandias's picture

A loaf of bread already costs >$5!

Oh, maybe you mean some kind of so-called "bread" such as Wonder or Globo.

PrinceDraxx's picture

Hell, a loaf of bread is almost $5 now. I hope petrol isn't going up $11 overnight to match it. That would suck.

Esso's picture

"Obvious sarcasm."


Which would be all good & fine if there was a point to it. Some educational value, or something.

Rather, MillionDollarFuckwad comes off like the typical, pathetic, government-loving Retard-O-Merikkan that sits at home all day reporting his neighbors to the goobermunt tattle-tale hotlines as terrorists.

I can't speak for anyone else here, but I come to ZeroHedge to get away from stupidity. If I wanted that shit, I'd watch CNBS and become a charter member of the Steve Liesman Fanboy Club.

MsCreant's picture

For all I know, it is Tyler! Sometimes floating an effigy to stab and burn can be a healthy and cathartic move. There was a poster Benjamin Dover, and a commenter Phil Grahm in the early days of this blog, they did the party line with a straight face and they were a scream. People loved to hate them.

I say do what you like with Million Dollar Bone-us. It's all good.

tmosley's picture

There are plenty of "effagies" that need a good stabbing and burning around here already.

Seems more likely that this is the new "William the Bastard", or a new incarnation of Spaliding Smailes.

ceilidh_trail's picture

Whatever happened to Harry Wanger?

Robslob's picture

Funny a man makes a statement about his portfolio "turning around" right after the worst month in the last 2 years...lmao

Crisismode's picture

Of course his portfolio has turned around.


He's been an avid follower of RoboTrader's every recommendation.

RSloane's picture

This has to be sarcasm. No one could be that stupid and manage typing.

IQ 145's picture

All this is true enough; but you have to realize that it's a party, and then it comes to an end, and everyone has a hangover. I'm glad you're making back some of your losses; but you need to get the idea that this rally will end and at that time you need to cancel your participation in the Stock Market; There is no buy and hold anymore; if there ever was; probably there never was. It's just not that easy. If the friggin thing gets back to 12,000 on the DOW you really should cash out. The higher the price goes the more unstable it is and the more likely to reverse. There will be no new highs this year in the major indices; this is a rally in a bear process. Cheers.

Snidley Whipsnae's picture

MsCreant... "We need to see shortages of things you actually need"

Action usually heats up when it takes 40% of wages to provide food...

Right now, Americans are spending about 12% on food...

If the social (food providing) programs are eliminated or cut back we will see some 'falling down' as far as social unrest...

Definitely slow motion... slow motion train wreck.

ATG's picture

Speaking of falling down, the DOJ not only went after the Liberty Dollar guy to put him in prison and confiscated all of his Liberty Dollars, now they are going after other Liberty Dollars, Gibson Guitars, Lemonade Stands and Raw Milk as "domestic terrorism."

How long before other gold and silver coins and bars not issued by the US Mint are unfair game? 


Quintus's picture

I do not understand why so many people fail to appreciate this.

When the only tool you possess is a hammer, every problem tends to start looking like a nail.

When the only tool you have is QE......

SheepDog-One's picture

Right! Total Bizarro World we live in where markets shoot up 2% yesterday, and yet pleas of 'More QE please sir!' are all we hear? For what reason, markets teetering and near their lows? No, markets are 15% from their ALL TIME highs! 

Completely insane world.

Hobbleknee's picture

Unemployment trumps markets.

Soul Train's picture

Ah, 'ye with less experience... the wonderment of youth.

Can you fathom this?

Friday and yesterday's rise is indeed the classic DEAD CAT BOUNCE. Let's see how close it comes to the supports.

Tyler has  been commenting about the low volume. Indeed.

That's a main characteristc of the DCB, besides it quick legs up to try and reach support.

Careful to you younger traders with nothing but your SMAs and hope for good fortune. You must live and learn. Hope this helps.  Buying into this morass and nonsense will be a bitter pill.

When the tide turns, it will be swift - just as it has been since Friday Noon.

And lower lows in the horizon. Shock and awe.

Then the Fed will be forced to look for some more clever ways to trick you. They have already covered their ass when Benny Boy said that they cannot do this alone.


IBelieveInMagic's picture

This is looking all too well coordinated -- first JPM and UBS says that gold is going to the moon, then Fed Guv. says resume QE -- to me this looks like an attempt to false step precious metals. Am getting paranoid.

kumquatsunite's picture

There are many other sources of gold, yet untapped. The world is a very big place....all this talk about gold being in short supply are ridiculous. 

russki standart's picture

Quintus, the Fed could end monetary accommodation and we would surely enter a deeper depression. But the immediate pain will be too great so we will inflate our debts away. Ultimately, the fed reserve ponzi scheme will end, and out of the ashes something else will emerge. 

NotApplicable's picture

...every problem looks like a liquidity issue.