This page has been archived and commenting is disabled.

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?

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
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.

http://www.handelsblatt.com/finanzen/boerse-maerkte/anlagestrategie/note...

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.

http://goldandsilverlinings.com/?p=1594

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

Bone-us.

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

hilarious!

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? 

http://www.coinworld.com/articles/liberty-dollars-may-be-subject-to-seiz...

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.

LMAO.

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.

Tue, 08/30/2011 - 09:46 | 1614522 RSloane
RSloane's picture

There is always the option not to use the hammer particularly when dealing with large window panes.

Tue, 08/30/2011 - 08:39 | 1614301 Long-John-Silver
Tue, 08/30/2011 - 08:59 | 1614377 Infinite QE
Infinite QE's picture

Dang straight. What happened to the gold $250 crows?

Tue, 08/30/2011 - 10:09 | 1614594 Crisismode
Crisismode's picture

They're all having tea with Jon Nadler.

Tue, 08/30/2011 - 10:38 | 1614772 tmosley
tmosley's picture

Is THAT what they are calling it these days?

Tue, 08/30/2011 - 10:42 | 1614802 MsCreant
MsCreant's picture

Tearoom traders.

Tue, 08/30/2011 - 09:14 | 1614431 slaughterer
slaughterer's picture

In a Fed-induced commodity inflation scenario, wouldn't it be wise to invest in natural-gas fuel technologies since oil at $200 a barrel would be inaccessible to most automobilists?   Besides the usual PM plays, I mean. 

Tue, 08/30/2011 - 09:23 | 1614459 fiddler_on_the_roof
fiddler_on_the_roof's picture

I looked at NG car. But then they only have a mileage of 200 miles with a full tank of NG, unlike our regular cars. So deferred for now.

Tue, 08/30/2011 - 10:51 | 1614866 GoinFawr
GoinFawr's picture

@ slaughterer

Natty; now there's a commodity nowhwere near its all time highs.

Wed, 08/31/2011 - 15:39 | 1620063 GoinFawr
GoinFawr's picture

Yen C, did you catch this one?

Tue, 08/30/2011 - 09:34 | 1614495 Snidley Whipsnae
Snidley Whipsnae's picture

Thanks Evans! Keep talking! ...and Been...as in has been... Keep printing!

Tue, 08/30/2011 - 10:32 | 1614731 IQ 145
IQ 145's picture

Here's a different point of view on the recent price chart; yesterday we had a thrity dollar waterfall in thirty minutes that was clearly an artifact; ie. engineered, not the result of natural causes. The purpose of this "artificial low"; to offer a buying opportunity for the new york traders and their friends. Today's rally? already baked in the cake; if you never read the news item at all you could trade this event. If you insist on reading news items; you get a probably spurious explanation for what already happened. The dip that was buyable yesterday was created by people who knew the profits would be there today or tomorrow; whether there's a convenient news item or not. There's always something that makes a good excuse for a news item.

Tue, 08/30/2011 - 11:21 | 1614999 VegasRage
VegasRage's picture

Turd Ferguson for president! 

Tue, 08/30/2011 - 13:52 | 1615717 ATG
ATG's picture

As posted elsewhere, continuing to monetize the majority of Treasury auctions and ZIRP until 2013 are QE To Infinity and Beyond

Tue, 08/30/2011 - 08:35 | 1614284 LawsofPhysics
LawsofPhysics's picture

What else can one say but, "Keep talking stupid".

Tue, 08/30/2011 - 08:36 | 1614286 Racer
Racer's picture

Buffoons is too kind a term for the Satanic gathering

Tue, 08/30/2011 - 08:51 | 1614347 MsCreant
MsCreant's picture

Whoever junked this hysterically funny comment, come back and tell us why. Satanic and buffoon paired together is too funny. Paints a picture of an evil, incompetent, mad house.

  • Do you respect the members of the Fed?
  • Do you think what the Fed is doing, stealing your spending power, is okay?
  • Do you love QE3?
  • Do you just hate Racer?

WTF?

Tue, 08/30/2011 - 08:53 | 1614357 LawsofPhysics
LawsofPhysics's picture

I second this proposal.

Tue, 08/30/2011 - 09:08 | 1614414 Pegasus Muse
Pegasus Muse's picture

Monkeys, bankster ass-kissing, satanic gathering of Wall St sycophants …

http://www.youtube.com/watch?v=zPZLPlelmOE&feature=related

Tue, 08/30/2011 - 09:34 | 1614493 fiddler_on_the_roof
fiddler_on_the_roof's picture

FED did not have much choice other than buying all those houses and doing QE. Else we would have had a 1930's depression because the credit money is so large which was trying to squeeze to T Bills. The only other option was to nationalize all the banks, then it becomes socialism.

This situation was brought upon by many decades of policies. Anyone remember the blowing of housing bubble by Clinton by making primary residence sale profit non taxable. Why would anyone do that unless they wanted to blow that bubble and put us all at the mercy of big banks. Everything looks pre-arranged.

Tue, 08/30/2011 - 10:30 | 1614713 MsCreant
MsCreant's picture

So you lean towards satanic, away from buffoon. Many of the commenters agree. I will take the other side, more as a thought experiment than anything.

In defense of "incompetent:"

I am an academic. I can tell you with confidence we have a culture that, in many ways does not coincide with the real world. Things that would have consequences in the real world, do not in academia. To keep it as short as I can, the academy is a petri dish of moral hazard. This is Ben's "culture," but worse (my background is not so "elite," some of us have our feet on the ground in the "real" world).  In my world, once you have earned tenure, you can't get fired. You keep getting raises (for now) even as others are taking pay cuts and losing their jobs. Govt. sponsored funding assures that there will be money (for now) to keep the show going when all the other shows in town are closing down. Summation, if you are used to exceptions, you may really believe that is how the world works. And that mind set will guide your policy decisions (and yes, this includes cronyism). But this is different from a multi generational conspiracy.

Ben and company may merely be academics, in crisis mode, always reacting to the next crisis, never proactive because they never, ever, manage to get their footing and get far enough in front of the game to "plan" or do (gasp) prevention.

They did inherit a bag of shit. It was insolvent when they took over. In a sense, nothing they do matters. All they can do is try to land the plane as softly as possible. Keeping the banksters happy keeps the gears lubed so that when you need to respond to the next crisis, you have friends who willingly do favors for you.

Tue, 08/30/2011 - 08:36 | 1614287 RSloane
RSloane's picture

Gee, who could have seen that coming.

Tue, 08/30/2011 - 08:37 | 1614292 MichaelG
MichaelG's picture

Did he say what were the drivers of the commodity surge?  Asshole.

Tue, 08/30/2011 - 08:49 | 1614338 Dapper Dan
Dapper Dan's picture

 

Would ‘in it be nice if someone in the media would ask a question like that? And then press for an answer.

 

Tue, 08/30/2011 - 09:03 | 1614398 MichaelG
MichaelG's picture

Yes, preferably whilst slowly tightening the thumbscrews.

Tue, 08/30/2011 - 08:38 | 1614295 Irish66
Irish66's picture

I'll say it again, that was one scary interview

Tue, 08/30/2011 - 08:38 | 1614300 FranSix
FranSix's picture

Wait!  Something happened. Somebody sold gold forward without first owning any, driving the price down $40/oz.  Now, they're stuck with having to buy it back! D'oh!

Tue, 08/30/2011 - 08:43 | 1614317 Long-John-Silver
Long-John-Silver's picture

Good for them, they deserve everything coming to them, in Spades.

Tue, 08/30/2011 - 08:44 | 1614323 FranSix
FranSix's picture

In London-town, I mean.

Tue, 08/30/2011 - 08:39 | 1614302 FubarNation
FubarNation's picture

The markets are FUBAR. 

 

When one asshat makes a simple comment like that and the commods go apeshit sumpin' aint right.

Tue, 08/30/2011 - 08:45 | 1614327 Cdad
Cdad's picture

Exactly.  The toxic banks are now well engaged in the trade.  Beware and good luck.

Tue, 08/30/2011 - 08:54 | 1614359 SheepDog-One
SheepDog-One's picture

Somethings going to blow up big time here. How the HELL can you have markets up 2% just yesterday, then bring on some FED assclown who is begging for more QE with markets 15% from their all time bubble highs! What the hell is this insanity....anyone talking about more money printing with markets able to pop up 2% daily should be arrested.

First its 'All is WELL!' 24/7, but with a constant side order of begging for more money...I sense panic and a FED out of gas.

Tue, 08/30/2011 - 09:00 | 1614385 espirit
espirit's picture

The Fed is hoping that the sheeple "buy the rumor".

Tue, 08/30/2011 - 09:10 | 1614418 SheepDog-One
SheepDog-One's picture

Exactly, more carrot on a stick technique...'we need more suckers in the markets lets see if theyll buy the pump if we yap about QE3 some more', but so far not so good.

Tue, 08/30/2011 - 09:13 | 1614425 Cdad
Cdad's picture

Correct...and the point I am making, here and on the previous gold thread, is that the TBTF banks are at work here...and anyone predicting this or that based on today's completely FUBAR movement in EVERTHING is just asking to have it handed to them.

And as always, my comments about gold are confined to the paper gold market, and not guys who are squirreling away the metal...as you guys will inherit the Earth.  But gold moving as it has been is rather the machinations of bankers pushing the derivatives of gold around...which is bad news, in the broadest sense.  It, for example, will raise the margin issue yet again, and some Asian guy buying two coins later on this afternoon is not going to change the point I am making.

 

Tue, 08/30/2011 - 09:18 | 1614444 SheepDog-One
SheepDog-One's picture

The Bernank has 1 tool, a 6 pound sledge hammer.

Tue, 08/30/2011 - 09:21 | 1614455 Raymond Reason
Raymond Reason's picture

This is more carrot dangling.  A cheap trick that works. 

Tue, 08/30/2011 - 09:52 | 1614542 Snidley Whipsnae
Snidley Whipsnae's picture

...But if 10 million Asian guys each buy two coins this afternoon? ...and, they did so because a margin hike caused paper gold to drop $150? ...and, because the Asian guys caused the physical market to tighten by their purchases?...and, because physical has tightened and caused paper price to rise, another margin hike is put in place?... It's all connected in a feed back loop... Paper gold and it's margin hikes are transfering physical gold from West to East. Is that a good thing? Why won't the Treasury allow an audit of physical US gold? Is it in the East now?

Sometimes the tail wags the dog...

Tue, 08/30/2011 - 10:01 | 1614565 LongBallsShortBrains
LongBallsShortBrains's picture

Or buy the TUMOR.

Tue, 08/30/2011 - 08:39 | 1614304 Josh Randall
Josh Randall's picture

Wall Street stiffs and 401K'ers are clamouring for it Bernank - go ahead and give it to them, QE3 - you know you want to, and you and I both know that my Silver and Gold will go up too. Is it the possibility of a Silver and Gold price ratio move closer that keeps you and your Masters from rubbing a QE3 out ? OR is it the commodoties markets going APe$hit, raising prices even higher so that O'Bummer really doesn't get elected ?

Tue, 08/30/2011 - 09:02 | 1614394 SheepDog-One
SheepDog-One's picture

Definitely theyre painted into the corner, they got this QE3 carrot on a stick dangling but cant actually deliver it because that would send everything apeshit. So theyll keep hinting about more free crack to the markets, which are rising 2% daily, but thats about the extent of it.

Tue, 08/30/2011 - 09:55 | 1614554 Snidley Whipsnae
Snidley Whipsnae's picture

"they got this QE3 carrot on a stick dangling but cant actually deliver it because that would send everything apeshit." right, SD1...

They are jawboning... Saying 'we got a bazooka in our pocket'... Eventually they will have to use the bazooka or STFU!

Tue, 08/30/2011 - 13:33 | 1615617 TruthInSunshine
TruthInSunshine's picture

They have their hand in their pocket, in the shape of a firearm - finger extended-  trying to convince the teller it's a loaded pistol.

Tue, 08/30/2011 - 08:41 | 1614307 Clint Liquor
Clint Liquor's picture

The FED will continue to pack around the corpse of Keynesian Economics (ala Weekend at Bernies) until it rots out of their hands.

 

Tue, 08/30/2011 - 08:41 | 1614308 uno
uno's picture

came across as arrogrant clown; "I don't agree with your premise" was the answer to anyone criticizing QE 2 effects. 

Tue, 08/30/2011 - 08:56 | 1614368 NotApplicable
NotApplicable's picture

That's because those effects are special.

Tue, 08/30/2011 - 09:04 | 1614399 DefiantSurf
DefiantSurf's picture

On the contrary, QE2 worked as intended, you don't see any banksters missing bonuses do you?

the dollar transferred (via inflation) more than 17% of its value away from the consumer to the banksters and government.

I would say QE2 was an overwhelming success!

The problem is that YOU expected to benefit from it which it was not designed to do.

 

 

Tue, 08/30/2011 - 08:42 | 1614311 freethinker4now
freethinker4now's picture

Implode already...

Tue, 08/30/2011 - 08:42 | 1614312 JW n FL
JW n FL's picture

http://www.kitco.com/charts/livesilver.html <--- Haaaaa haaaa haaaa haaa haa!

Tue, 08/30/2011 - 08:43 | 1614314 THE DORK OF CORK
THE DORK OF CORK's picture

I don't get Zero hedge analysis - the damage has been done over decades , we have a debt based monetory system , if you will not default on deposits then you must degrade the quality of that debt so that transactions can continue.

This destruction of the US dollar will make world trade more sustainable again.

Tue, 08/30/2011 - 08:55 | 1614364 SheepDog-One
SheepDog-One's picture

???

Tue, 08/30/2011 - 09:07 | 1614411 THE DORK OF CORK
THE DORK OF CORK's picture

Sheepdog - the western world has been incapable of investing capital wisely due to a highly dysfunctional banking system - there is simply not enough rule of law to justify large internal capital expenditure.

 

Tue, 08/30/2011 - 09:16 | 1614437 SheepDog-One
SheepDog-One's picture

I disagree with the premise, the World Central Bankster cabal are not incompetent fools, theyre conducting a grab of all the peoples wealth so they can completely take over....1 currency. 

Tue, 08/30/2011 - 09:20 | 1614451 knukles
knukles's picture

Clarity

Tue, 08/30/2011 - 11:01 | 1614912 IQ 145
IQ 145's picture

No. never make a complicated conspiracy story to stand in place of the short-sightedness of human beings. "They", insofar as there is a they are as worried as you are. they're just trying to stay in business; they don't have any spare time to take over the world; even if such a thing were possible. It's impossible to identify anyone who would benefit from this "one world currency" which is a popular internet meme. But then, so is global warming.

Tue, 08/30/2011 - 11:48 | 1615109 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Beneficiaries, international banks and fortune 100 and yes there is such a thing as the New World Order, emphasis on "WORLD".

Tue, 08/30/2011 - 09:05 | 1614403 LawsofPhysics
LawsofPhysics's picture

How exactly does this "world trade" become "sustainable" if i) no one will accept the dollar and ii) you don't actually produce anything of REAL VALUE (sorry, financial "products" are a fucking joke)?

Answer that fucknut, but you better look up what the word "sustainable" means first.

Tue, 08/30/2011 - 08:43 | 1614315 MsCreant
MsCreant's picture

Testing, 1, 2, 3, testing...

Oh Sh!t, that's just a test of the emergency broadcasting system. If this were an actual emergency, THE SH!T WOULD REALLY HIT THE FAN!!

Tue, 08/30/2011 - 10:16 | 1614633 eaglefalcon
eaglefalcon's picture

some test like that happens once a week on my cable tv. I guess one day it won't say "test" any more.  Instead we'll see the president (obama or his successor) flanked by the attorney general and the fema chief declaring "emergency"  

Tue, 08/30/2011 - 08:43 | 1614316 Monedas
Monedas's picture

Tyler, I thought Monedas warned you about irrational, exuberant  outbursts of cynical humor ? Does the Treasury Department use toner cartridges in printing FRNs ? Are you trying to amuse or confuse ? I don't get it and I'm the in house humorist without portfolio ! Monedas 2011 Do not attempt this from your home PC !

Tue, 08/30/2011 - 10:44 | 1614816 JacktheTab
JacktheTab's picture

Can we please get an "ignore" button for Monedas already?

Tue, 08/30/2011 - 08:43 | 1614318 WinstonWolfe
WinstonWolfe's picture

http://www.youtube.com/watch?v=wcW_Ygs6hm0

 

<---------- good old ben

Tue, 08/30/2011 - 08:44 | 1614322 ItchiBitzchi
ItchiBitzchi's picture

my hemmorhoids are killing me.

Tue, 08/30/2011 - 08:57 | 1614372 NotApplicable
NotApplicable's picture

one word: tuck

Tue, 08/30/2011 - 08:45 | 1614325 RTFM
RTFM's picture

Damn you Ben!!!! Raise interest rates this instant and make my magic pile of FRN's grrrrrrrow in value so that I may buy more tools and guns at ROCK BOTTOM prices!!!

Tue, 08/30/2011 - 08:45 | 1614326 Platinum_Investor
Platinum_Investor's picture

Hike margin rates on washroom breaks at CME.  They are full of shit anyway.

Tue, 08/30/2011 - 08:45 | 1614328 Gandalf6900
Gandalf6900's picture

How many BM's does it take to make a QE?

Tue, 08/30/2011 - 08:46 | 1614333 EvlTheCat
EvlTheCat's picture

Just the right amount of snarkyness with my morning coffee.  Cheers ZH!

Tue, 08/30/2011 - 08:46 | 1614334 laomei
laomei's picture

thanks fed for that pile of free fiat... been waiting all day for that move and i managed to catch it.  chalk up another 20k to buy more gold with.

Tue, 08/30/2011 - 08:46 | 1614335 saulysw
saulysw's picture

Is the interview of Evans / Liesman online somewhere?

Tue, 08/30/2011 - 08:51 | 1614346 thedrickster
thedrickster's picture

Don't bother, think Mr Magoo after fucking a super model and being told he is special.

Tue, 08/30/2011 - 09:41 | 1614510 WmMcK
WmMcK's picture

"Oh Magoo! You've done it again!"

Tue, 08/30/2011 - 08:52 | 1614350 4xaddict
4xaddict's picture

Sure it's Fisher sends Gold soaring or is it Gold spike sends Fisher scurrying for more QE.

The insider buying on that news was absolute bullshit!

Tue, 08/30/2011 - 08:52 | 1614351 4xaddict
4xaddict's picture

Sure it's Fisher sends Gold soaring or is it Gold spike sends Fisher scurrying for more QE.

The insider buying on that news was absolute bullshit!

Tue, 08/30/2011 - 08:52 | 1614354 Oh regional Indian
Oh regional Indian's picture

I wonder if most here are seeing the irony here.

The biggest tool in the hands of the fed is the PIEHOLE of people like Evans. When they can move markets on words alone, why do anything?

Doing is so quaint, almost archaic. Just say it!

V

http://aadivaahan.wordpress.com/2011/08/30/humor-me/

Tue, 08/30/2011 - 08:57 | 1614370 SheepDog-One
SheepDog-One's picture

YES thats what Ive been saying too, QE3 is now the ultimate carrot on a stick, simply dangled out in front of the markets but in my opinion never to be actually reached.

What need for QE? If we can rally markets 2% on yesterdays terrible news there is NO need for any hand holding and training wheels for the markets!

Tue, 08/30/2011 - 09:28 | 1614477 Zero Debt
Zero Debt's picture

Yup, the Feds call it Rational Expectations Theory or something like that...

You just gently say - "well, we have a printing press, that we could use"...

 

Tue, 08/30/2011 - 08:56 | 1614369 kahunabear
kahunabear's picture

Evans is clueless and dangerous.

Tue, 08/30/2011 - 08:58 | 1614374 Dr. Engali
Dr. Engali's picture

I really wish these stupid fucks would shut their mouths. I have been waiting for a descent pull back to add to positions.

Tue, 08/30/2011 - 09:00 | 1614387 Infinite QE
Infinite QE's picture

$100 pullbacks may be all we get going forward

Tue, 08/30/2011 - 11:06 | 1614938 IQ 145
IQ 145's picture

Did you take a day off yesterday? The thirty dollar waterfall in thirty minutes escaped your attention? Wait some more; markets go up and down, not up and up.

Tue, 08/30/2011 - 08:59 | 1614382 LookingWithAmazement
LookingWithAmazement's picture

Gold apparently in a bubble: rises on QE rumors. Just like stocks, housing, commodities did for years.

Tue, 08/30/2011 - 09:00 | 1614386 NotApplicable
NotApplicable's picture

Fed Dove Evans Open Mouth, Roasted Pigeons Fly Out.

FTFY!

Tue, 08/30/2011 - 09:00 | 1614389 Flakmeister
Flakmeister's picture

Ok, I got my answer to a question in an earlier thread.....thx Tyler

Tue, 08/30/2011 - 09:01 | 1614391 John Law Lives
John Law Lives's picture

"these buffoons have not learned anything"

Then again, maybe these buffoons WANT a currency crisis so they can hit the R-E-S-E-T button and usher in a world currency.

Tue, 08/30/2011 - 09:05 | 1614402 SheepDog-One
SheepDog-One's picture

Yep, just waiting for the right timing though, who knows what theyve got planned is it another 9-11 date set? Or sooner, or later....no one here knows until we see it but thats certainly whats up their sleeve, hitting the reset button.

Tue, 08/30/2011 - 09:02 | 1614393 Bansters-in-my-...
Bansters-in-my- feces's picture

Looks like the gubberment haqs a Milliondollar ASSHOLE TROLL on the site this morning.

Fuck off troll.

Tue, 08/30/2011 - 09:10 | 1614415 EvlTheCat
EvlTheCat's picture

Premature exacerbation.  I think you missed the troll you were aiming at.

/kidding

Tue, 08/30/2011 - 09:02 | 1614395 TradingJoe
TradingJoe's picture

I would never believe THEY don't know what they are doing or that they haven't learned anything, NO, THEY KNOW EXACTLEY what they are doing and will keep doing it until they can no more! Getting sickeningly rich at the expense of others and not being called upon is GREAT for THEM! They couldn't care less where all that wealth is coming from as long as there is no accountability for them! This why I believe gold will go to the moon, until looting is not possible anymore or there is WAR! Until then and most likely beyond, I will buy physical at ANY price because once needed it will be SAVING MY ASS!

Tue, 08/30/2011 - 09:06 | 1614407 SheepDog-One
SheepDog-One's picture

Right they know exactly what theyre doing, we're nearing the planned event horizon.

Tue, 08/30/2011 - 09:13 | 1614426 SilverDOG
SilverDOG's picture

Supportive of said, is the record "NATO/USA" guarded poppy harvest. They do know exactly what they are doing. 

Secondly, QE is not reaching the streets beyond inflationary effect. Currency amount on the street is decreasing, exactly as planned. Exactly as performed in depressions around the world throughout history. Make it, the Take it.

Depression ll Bitchez!

Tue, 08/30/2011 - 11:42 | 1615074 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Agreed on all counts SilverDOG.  Poppy harvest in Afghanistan has increased 90% since U. S. invasion of Afghanistan in 2001 and severe cash contraction lead to Stock Market crash in 1929 followed by The Great Depression.

Tue, 08/30/2011 - 09:04 | 1614400 espirit
espirit's picture

Takedown on safe havens (CHF) indicated a turn yesterday.  This babble from the Fed is just confirmation.

Tue, 08/30/2011 - 09:07 | 1614412 fonestar
fonestar's picture

What would be nice is an Evans/Bernanke duetto, when they hit that high falsetto it will send commodoties to the point of smashing all the windows of the NYSE ear drums all over the world.

Tue, 08/30/2011 - 09:08 | 1614416 PulauHantu29
PulauHantu29's picture

When is next Margin Hike?

Tue, 08/30/2011 - 09:13 | 1614427 SheepDog-One
SheepDog-One's picture

I'd say by now 100% margin is 'priced in'.

Tue, 08/30/2011 - 09:10 | 1614419 kahunabear
kahunabear's picture

Number one thing Evans is clueless on is inflation. Monetary policy IS and WILL create huge inflation and it is killing this country. Very scary.

Tue, 08/30/2011 - 09:14 | 1614432 SheepDog-One
SheepDog-One's picture

Yea theyre putting on an act, trying to get as much as they can from this QE3 carrot on a stick. 

Do NOT follow this link or you will be banned from the site!