This page has been archived and commenting is disabled.
Fed Folds: Will Do Open-Ended MBS Buying, Extends Operation Twist
Bernanke has acquiesced and is now the 4th branch of the status quo- and all is well in the world:
- *FED TO KEEP POLICY STIMULATIVE FOR `CONSIDERABLE TIME'
- *FED WILL ADD TO PURCHASES IF LABOR MARKET DOESN'T IMPROVE
- *FED DOES NOT SAY WHEN MBS PURCHASE PROGRAM TO END
- *FED TO BUY $40B MBS MONTHLY, CONTINUE `OPERATION TWIST'
- *FED TO BUY MBS, EXTENDS ZERO-RATE POLICY INTO 2015
To summarize:
- The good news: The Fed's NEWER, OPEN-ENDED and NEVERENDING QE is bigger, longer, and has a Retina display (however its battery life is far shorter).
- The bad news: The Fed has now confirmed it is merely a sad, political, self-frontrunning caricature of what a central bank should be.
Pre-FOMC:
S&P 500 Cash 1437.9
S&P 500 Futures 1437
Dow 13345.43
10Y 1.7247
5Y 0.6522
30Y 2.8815
EUR 1.2895
MBS Spread 0.57993
Gold 1724.35
Silver 32.77
WTI Oil 97.23
USD Index 79.70237
Apple 676.91
Full redline comparison to the August statement below:
»
- 40156 reads
- Printer-friendly version
- Send to friend
- advertisements -
Gross just came.
god what a disturbing visual
Hyperinflation here we come baby. Destination, Emerika Bitchez
QE to infinity and beyond.
It looks like Gold and Silver to infinity and beyond:
Look at gold shooting higher in real time:
http://www.pmbull.com/gold-price/
Nice for those holding bullion before the announcement!
TURKEY SAMMICHES BITCHEZ!
...more like Cock-meat sammichez Bitchez
Dropping dickburgers out the whirlybird, yeeee hawwww
Ugh....Jesus Christ...my egg salad sandwhich for lunch feels so inadequate now.
Let's not forget what set off the Muslim countries revolutions.
Reason #1; Police and Government Tyranny and Torture.
Reason #2; US Federal Reserve Corporation exporting food inflation with their monetary policy all over the planet.
Tunisia
Suicide that Sparked a Revolution
http://www.youtube.com/watch?v=47d6fyaOjRM
Egypt
Justice for Khaled Said, End torture in Egypt
http://www.youtube.com/watch?v=VQfgSg1Vvlo&feature=related
Why don't they just extent ZIRP to the year infinity???
Holy barbarous relic Batman !!!
How did it end for the Roman Empire, again?
If only we could have a South African nation-wide miners strike in the near future. Oh wait...
"The Fed has now confirmed it is merely a sad, political, self-frontrunning caricature of what a central bank should be."
What it should be? How about killed? Where's Andy Jackson when you need him....
When JP Morgan's short position goes belly up in the Silver market, that will kill enough Banks to make Andrew Jackson proud.
I can't remember exactly, but I think Alexandria was involved.
Um, cuz that didn't work. Now you get NIRP, bitchez.
Can anyone explain why everybody is soooo excited about the FED buying MBS. Does it really do anything else then just clear toxic shit off of bankers books?
that's all it does. that's all that QE was intended to do. that is all the the Fed does (support ownership banks).
Because this is my fucking Plan!
To have the Federal Reserve Corporation stuffed to its fucking rafters with mountains of stinking fecal toxic waste matter, that it destroys itself from within and blows itself up.
It's a very complicated plan. I've been working on this plan a very long time.
Now just go along with it and shut the fuck up about it.
And where does the toxicity go? It can't just disappear. Someone, somewhere, is on the hook. And that somoene is you and I, which we will never pay, so the only avenue to resolve is inflate away the debt. Default won't happen, and neither will repayment.
the fed cant lose money on mbs...they just print what they lose. we are the ones that take it up the ass with depredciation of the currency.
They don't care, it's imaginary money that they can trade for real assets. It's worse than monopoly money, at least you have to work to buy the game.
Repeat after Ben."Taxpayers are cunts...let them pay while we dine in the ivory towers!."
MBS buying now ....$1 trillion of Student Debt and Defaults to be bought next year (is my guess) .....Fed balance sheet will double (at least) again by 2015.
i guess that home improvement loan just came through to fix up iran ...
Imagine where gold and silver would be if allowed to trade freely, in an uncorrupt, open, market. THE US ECONOMY IS A PONZI.
What do you mean 'the US economy"? Try the global economy.
But the shit storm arrives.
Just think of it as in connect the dots.
Armageddon Ahoy!
Global monetization for all intents and purposes.
Gotta monetize any shocks to the system.
In other words (will date me, but the oldsters will remember the '70's oil embargoes and printing press reactions) gotta sterilize any increases in the price of oil...
Why's that Uncle Knukies?
Because my little one, with the Mid East going all bat shit killing people, invading US Embassies (sovereign territory, remember) over a film nobody ever heard of (false flag incendiary fuse?) then it would seem that the Islamists are mad as hell and not gonna take it anymore, some Western country (singular) is getting pissed on, which just so happens to have a fuckload of military might in the area....
And you all thought it was gonna be the Enterprise on the bottom.
Not so fast, me buckos.
It couldn't be any damned smoother.
Just like maybe the most relevant modern invention...
Stool softeners...
The shit flows really really effortlessly, so much you get to enjoy it, no unwarranted distractions....
Booyah, Motherfuckers!
Gog and Megog Ahoy!
Apocalyptic +1
knukles, I always appreciate your unique and excelllent perspectives!
Thank you, eatthebanksters.
While accolades and recognition are not something I overtly search for any longer (I'd tried that unsuccessfully for way too long!) and in fact are unattainable within a shroud of anonymity, the satisfaction of a job well done is a gift borne by comments such as yours. Even as a casual observer of the human condition, a compliment here and there is appreciated.
Nah, SOYLENT GREEN Sandwiches for everyone!!
Yes, implying that we are being force fed our own decaying future.
Penis extension to 2050.
Nothin' could be finer
than to goose the metals and minahs
in the moooooo-or-nig
Holy B. Jesus, gonna let it all hang out!
EU/ECB/EMS/Whatevrethefuckallthemacronymsstandfor print print print
Fed Bend over and Open-ended print print print
What could go wrong?
This is gonna end badly.
So sayeth the Knukles.
"FED WILL ADD TO PURCHASES IF LABOR MARKET DOESN'T IMPROVE"
Playbook for the banks: buy more bonds and fire evryone.
FUCK YOU BERNANKE
At only 0.5 TRILLION per year it will take Ben till hell freezes over to muck all the shit out of the banks.
Sooner rather than later (after the election)... and he already has the benevolent sounding excuse/cover ready to go.
0.5T - perhaps there is one bank they are worried about.
This was all that mattered to ben
Is the Stock Market Voting for Obama?Rising Market Means Obama Wins
Goldman's QE3 Shopping List: Stocks For When Bernanke Starts Buying BondsKeep reducing the labor participation rate - unemployment solved!
I guess I'll cut against the consensus here and just state that today's announcement, which focused on MBS, was an explicit admission that The Bernank & Gang are not committing to bridging the upcoming fiscal cliff (as of today, at least).
Unless the Fed turns Twist into steroid-injected Twister, the debt ceiling and deficit spending of unknown quantities going forward have not been addressed.
Let us see how this shakes out, but by focusing on MBS and not treasuries, this really could be a very big and tangible sell the news event, regardless of initial, kneejerk reaction.
And I'll just mention that the crystal ball was on full power yesterday:
Wed, 09/12/2012 - 16:08 | 2787227
WTF on VIX120919P14 ???
Anyone?
VIX now well under 15... LMAO
Sniff snifff sniff***
Something is rotten in the state of Benmark...
Something tells me this is more about banks than goobermint. Then there's this little nugget from a few days ago refered to as Collateral Transformation: http://www.bloomberg.com/news/2012-09-11/bny-mellon-says-derivatives-may-need-4-trillion-more-collateral.html
thats what i was thinking......the shadow banking systems was getting close to something bad happening....
Historically 75 to 80 percent of derivatives have zero value. This means that the shadow banking system needs another 500 trillion in collateral.
No problem, the only consensus so far has been about dick burgers.
Sell signal? Dream on. B is desperately trying to keep O in the office. I just hope there will be a huge spike in oil prices which will bury Barry Presidency no matter how much of oil reserves freed up. Well, since we cannot do anything about that,
let us make some money.
Bon3rtr0n 2012 for silva.
gold rose 35 points from pre to post announcement. I guess they couldn't hit the sell button fast enough.
maybe 'they' are finally giving up on suppression as a tool and will allow gold to float to its true value. That would of course be the end of the dollar but the Euro would be lookin good....
At some point there will be the next raid, but for 6 weeks the pm markets have reflected solid buying. BTFD leaving many in the dust may be an idea whose time has past: buying scale up may be the new strategy:
http://www.forexpros.com/commodities/gold-advanced-chart
"Nice for those holding bullion before the announcement!"
And even nicer for those holding since $745/oz... If only it hadn't been lost to the floor of Lake Hopatcong in that terrible wardrobe malfuntion...
Yeah, if what I bought in '99 for $280 hadn't been stolen, I think I'd be showing breakeven around now...
The annual rate of return right now for anyone with purchases in the 2004-2005 time frame is over 16%, about the same as treasuries were providing during the last big inflation around 1980. Funny how times change.
c
And still the banks won't lend, Mr. Smith won't be employed with a real wage, and consumption will only be in apple products. Kids will go into debt for college without employement on the other side (especially lawyers - until Congress, filled with them, creates enough new regs for lawyers to get back to full employment).
This all just takes us into more debt, as much as they may want to call sanitization. Once i rates start to rise, watch out on servicing the debt with 50% GDP. Ugly bugly. Lower mortgage rates won't move more houses if mortgages aren't leant. Just saying.
Likely the FED will only purchase MBS that its masters hold in private funds. That crony counterfeited money will be offshored to tax havens and not transmitted back to the US economy. Its all about money flow to the mediocracy.
MV=YP (kind of)
His printing "M" just fills the deflated "M" of the shadow banking. He knows he's pushing a rope
Will someone explain it to me...wy can Ben print to infinity but if I do it I go to jail?
how does the mortgage market move?
every time housing inventories go down the buyers rush in for fear of missing the bottom...
then, just like magic... the housing inventory is again flooded with 'recycled gargantuan lots', of banked foreclosed properties...
let the dumping continue until the dump is burnt to the ground?
wash, rinse, and repeat... using ad infinitum detergent
jmo
I feel vindicated I've been saying all along he would save obama and the markets middle class be damned!
John Williams - Sell-Off in Dollar Should Evolve into Hyperinflation
CTRL +P bitchez
Presses Ctrl+P. Computer asks for printer preferences. "Hmmmm how many copies...?" "Hey Steve, how much paper do we have in the basement???"
Long cotton-fiber bonded paper.
$200 oz silver is what John Williams at Shadow Stats predicted awhile back in a radio interview.
He gets The Cigar soon.
Will someone explain this to me: if Ben can print to infinity, why will I go to jail for doing the same?
and aaaway we go .........
$1750!
My cheeks are flappin'!!!
Female then?
Is that you Willy Wonka? I can see my house from here!!!
time to cue "not for profit" seller
Be warned: this is 40 billion USD per month of UNSTERILIZED QE. This means NEW MONEY will keep entering the system in "exchange" for junk paper.
And the worst of horrors: This is an open ended program. It will keep going on and on because the economy will not improve because of this.
This is a very very sad day and there are dark clouds forming at the horizon. Be prepared for worse things to come.
one just won't do ... gotta get me a QE6-pack
Apple is already on version 5. The Fed are a bunch of pikers.
That was my take. Operation Twist with a twist. 45 billion per month in Twist, and add in another 40 billion a month in printing.
pods
This 100% a bubble that's being blown and 100% it will crash - it may not be this week or next month but it will blow, and when it does it will be hard. Very hard.
DavidC
Merely the last bit of Kabuki before the collapse is all. This is a good thing. ;)
No. Wrong.
40 billion times 9. Every Hard dollar may be loaned out 9 times to credit facilities.
You live in a fractional reserve banking and lending system. 40 billion becomes 360 billion of credit per month to be vested FROM bonds to derivatives to pay 30 year old bonds with 12% payments coming due.
Over the next three years they will release, 12 trillion dollars worth of credit.
Get it straight.
Credit money creation is not as certain as raw high powered Federal balance sheet money expansion, but then again, the money multiplier/credit limit from QE1 and QE2 has not been utilized either.
Just a little tipping point to increase the monetary velocity is all that is needed for things to move to a different regime.
I don't understand. Won't most of this "money" end up being held as foreign cash reserves? It will never really enter the US system - well at least until Romney gets annointed by TPTB and starts banging the drum of tax free cash repatriation for corporations. As long as corporations continue to sit on record amounts of "cash" and all of that "cash" is in the hands of a very tiny group I am not sure how hyperinflation could ever happen. I just think that the evolvement of the country will continue into 2 distinct societies - One that holds the vast, vast, vast amount of the "cash" and the rest of us who are forced to work as wage slaves in order to pay off our "cash" debts or end up spending time in corporate run prisons.
The honey I fermented last year (Mead) sits at 13% (by volume)...bottoms up, folks!
Fuck the fuckin fed fucks
QE to infinity is here to stay.
http://silverliberationarmy.blogspot.ca/
GOLD BITCHEZ!!
Q wEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE COCKSUCKERZ!
<<<$1800 today
<<<$1800 tomorrow
Better question: Why in the Hell is the $ and the Euro rising too?
Atta boy, Al.
Looks like they won't STOP until we're all standing outside of Marriner Eccles with our pitchforks in hand. Better go find mine now.
Will a rake or a pickaxe do (as a substitute)?
Question: When these MBS start to come off/expire, where does the "created" money go?
The "New Deal `Eminent Domain' Program" of the `Great Recession'... via aka. indiscriminetflation ?
This just in, a singularity has just developed beneath the Federal Reserve's Washington DC office, and is set to devour the rest of what little value remains in the US dollar. While reports are preliminary it is said that the black hole, certain to siphon off the few productive resources and assets of an already staggering domestic economy, initially occurred when the self collapsing vortex that is comprised of Fed Chairman Bernake's titanic ego, hubris, and intellectual dishonesty imploded from the quantam fluctuations eminating from his irrepresable urge to "Ease".
That is 'gross'
This is Sproiticus.
"Gross just came." Did Erin Burnett come with him.
SUCK IT BERNANKE !!!!
Fuck me. I'm out. Fucking criminals.
out of what? I'm in reits,gold, silver....had orders to get more toilet paper If he announced..
By the way i got it wrong again, i was sure they would wait.
Physical metals I understand, but REITs? They are not even actual properties that you own, can live in or burn down as you see fit. They are paper assets, like certain others I'd shudder to hold.
SELL THE NEWS
Does this mean QE3?
It means QE4EVA
Can a brother get a ZIRP?
Make that a NIRP!!!
Whateva yer round buns desire... :>D
Once you turn off the printing press, you can not turn them off.
Droll +1
Operation Twist 1.5
"Twist" as in mobius strip, as in it never ends.
QEtaint
Potter is furiously selling WTI
we i never!
Fuck Bernanke.
At least we know we won't be getting QE4. It's just going to be QE3 to infinity!
Got Gold?
My little stash of poor-guy silver appears happy.
Slapped down Wed to make room for a pop today. What a rigged casino!
Wow. I just made money on that loaf of bread in my freezer. Thank you Ben!
Release the inflation Kraken, Bitchez!
Will you look at that spike in Ag
PM charts are vertical. Glad I bought when I did. Soon it will be worth recovering from the bottom of the river.
I love when they have to pan out on the spot charts. $100 incriments cmon lets go! I can see a vapor trail!
Step functions contain almost at infinite number of frequencies...
And QE6 is announced, for those who are actually keeping an accurate count.
Wait, I thought round 5 was just announced yesterday by the economic engine of our economy.
[edit: beaten to the gold bitchez punch! I need a GOLD BITCHEZ hotkey!!!]
Mine is CTRL-Au. :)
Flash spike
ben admits the US is Japan.
DING DING ** Winner
Pretty much.
And to think it was that (in)famous paper - with it's unfortunate helicopter reference - that dripped arrogance and oozed hubris (with a dash of thinly-disguised racism slopped in for good measure) while promising ... PROMISING that "It" could never ... ever in a gazillion years "Happen Here", due to the virtuosic wizardry of American policy know-how with "unconventional measures" around the "zero bound" that won good old Bennie the coveted post of FedHead to begin with.
So now ... what? ... retirement Bennie? No Plan B? Sure ... since Plan A is: hit it with a hammer, Plan B is: hit it with a BIGGER hammer. Sure ... that oughta do it.
Neo-Kenesian arse-bandits are a fucking fatal disease! Death by intellectual corruption.
Pounding in screws with hammers, what could possibly go rwong hree??
I'm still trying to figure out how on earth this is actually going to help the labor market...these fools are desperate.
Why would they want to do that?
Right! An improved job market would eventually exert upward pressure on labor costs which would ultimately act as a headwind to profit growth which would weigh on stock prices... which is diametrically opposed to Bernanke's doctrine of paper asset reinflation.
And people don't really need jobs, since with all the printing, iSNAP becomes almost free. It's the new normal.
To further consolidate power, of course.
Tuco
Now what would make you think they have the desire, let alone the capacity, OR ability to help the labor market? That's merely their facade of integrity.
What they are doing (in a far from desperate manner) is inflicting a monetary "Chinese Water Torture," which, in essence is the act of maintaining the destruction in the form of a controlled collapse, in order that they benefit from it. Any benefits that may actually accrue to outsiders is merely the price they pay to maintain the facade, usually occurring in spite of their efforts, rather than due to them.
Sharky, You dont get it do you ? If employment is allowed to gain a foothold in this country the inflation created through investment, production and output would create so much inflation domestically that the system could not handle it; while they try and print the banks back to solvency. That is why we import everything we need so that we can export the freashly printed dollars to the rest of the world.
If they lose the Petrodollar/Reserve Currency status that the dollar has it will be the end of the dollar. Period !
Watch this and learn the reasons we are in this mess: http://www.youtube.com/watch?v=HP7L8bw5QF4
All part of the New World Order Plan they want to bring America's middle class down to the level of the other third world countries!
Dollar no longer primary oil currency as China begins to sell oil using Yuan
when are people gonna get it. they have no interest in helping the country. its just a lie to pacify the sheeple. They have zero interest in helping the labor market or the people in general. they are not Fools. they are smart. they get away with the perfect crime.
Good luck Ben, explaining how continuing these failed Fed programs to boost the economy will, well, boost the economy.
Rent-A-Truck is soaring!
Ah yes - the cacophony of 'beep-beep-beep' as stackers back up their trucks.
Hmm, Timothy McVeigh clones on a mission...
You didn't rent that...
feww billion in Asia ex just put on a diet
Kito.... I will be sending you my order.