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

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Tue, 08/30/2011 - 08:34 | 1614282 Turd Ferguson
Turd Ferguson's picture

QE to infinity

Tue, 08/30/2011 - 08:38 | 1614294 achmachat
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?

Tue, 08/30/2011 - 08:47 | 1614331 MsCreant
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.

Tue, 08/30/2011 - 08:51 | 1614349 PY-129-20
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.


Tue, 08/30/2011 - 09:38 | 1614506 MadMonkIvan
MadMonkIvan's picture

Amazing interview indeed - thankyou!

Tue, 08/30/2011 - 11:30 | 1615030 TruthInSunshine
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

Tue, 08/30/2011 - 12:21 | 1615257 whstlblwr
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.

Tue, 08/30/2011 - 13:56 | 1615727 tiger7905
tiger7905's picture

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


Tue, 08/30/2011 - 14:11 | 1615804 Libertarian777
Libertarian777's picture

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

Tue, 08/30/2011 - 14:51 | 1616026 Flakmeister
Flakmeister's picture

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

Tue, 08/30/2011 - 10:01 | 1614563 Crisismode
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.

Tue, 08/30/2011 - 10:36 | 1614760 IQ 145
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?

Tue, 08/30/2011 - 08:55 | 1614365 MillionDollarBonus_
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.

Tue, 08/30/2011 - 08:57 | 1614371 espirit
espirit's picture

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

Tue, 08/30/2011 - 09:31 | 1614487 Ausperity
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?

Tue, 08/30/2011 - 10:02 | 1614567 MsCreant
MsCreant's picture


Tue, 08/30/2011 - 10:38 | 1614777 IQ 145
IQ 145's picture

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

Tue, 08/30/2011 - 10:03 | 1614573 Crisismode
Crisismode's picture

And what think tanks are those?


The Marionettes Group, and

The Sphincter Osculators Group?

Tue, 08/30/2011 - 10:29 | 1614705 Flakmeister
Flakmeister's picture

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

Tue, 08/30/2011 - 11:43 | 1615080 Flakmeister
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.

Tue, 08/30/2011 - 08:59 | 1614380 Upswaller
Upswaller's picture

Um, yeah.

Tue, 08/30/2011 - 09:01 | 1614390 SilverDOG
SilverDOG's picture

Portfolio is turning around... and bending over. 

Tue, 08/30/2011 - 10:40 | 1614786 IQ 145
IQ 145's picture

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

Tue, 08/30/2011 - 09:02 | 1614396 dwdollar
dwdollar's picture

Haha...  thanks for the laugh.

Tue, 08/30/2011 - 09:06 | 1614408 PaperBear
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 ?

Tue, 08/30/2011 - 09:11 | 1614422 LongBalls
LongBalls's picture

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

Tue, 08/30/2011 - 09:30 | 1614483 Hulk
Hulk's picture

You need a sense of humor injection...

Tue, 08/30/2011 - 11:20 | 1614998 sullymandias
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.

Tue, 08/30/2011 - 11:26 | 1615020 PrinceDraxx
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.

Tue, 08/30/2011 - 09:12 | 1614423 Raymond Reason
Raymond Reason's picture

Obvious sarcasm. 

Tue, 08/30/2011 - 09:58 | 1614516 Esso
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.

Tue, 08/30/2011 - 10:07 | 1614579 MsCreant
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.

Tue, 08/30/2011 - 10:37 | 1614766 tmosley
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.

Tue, 08/30/2011 - 12:03 | 1615187 ceilidh_trail
ceilidh_trail's picture

Whatever happened to Harry Wanger?

Tue, 08/30/2011 - 09:12 | 1614424 Robslob
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

Tue, 08/30/2011 - 10:06 | 1614578 Crisismode
Crisismode's picture

Of course his portfolio has turned around.


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

Tue, 08/30/2011 - 09:20 | 1614452 RSloane
RSloane's picture

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

Tue, 08/30/2011 - 09:46 | 1614521 WTFisThat
WTFisThat's picture

WOW that was really funny

Tue, 08/30/2011 - 10:45 | 1614827 IQ 145
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.

Tue, 08/30/2011 - 13:06 | 1615516 caerus
caerus's picture


Tue, 08/30/2011 - 09:38 | 1614505 Snidley Whipsnae
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.

Tue, 08/30/2011 - 15:05 | 1615695 ATG
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? 


Tue, 08/30/2011 - 08:40 | 1614296 Quintus
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......

Tue, 08/30/2011 - 08:49 | 1614341 SheepDog-One
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.

Tue, 08/30/2011 - 08:59 | 1614381 Hobbleknee
Hobbleknee's picture

Unemployment trumps markets.

Tue, 08/30/2011 - 09:15 | 1614421 Soul Train
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.


Tue, 08/30/2011 - 09:21 | 1614456 IBelieveInMagic
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.

Tue, 08/30/2011 - 11:05 | 1614932 kumquatsunite
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. 

Tue, 08/30/2011 - 08:50 | 1614343 russki standart
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. 

Tue, 08/30/2011 - 08:52 | 1614352 NotApplicable
NotApplicable's picture

...every problem looks like a liquidity issue.

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