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Futures, Precious Metals Soar As Bernanke Says More "Accommodative" Policies Needed, Hints At "The New QE"

Tyler Durden's picture


Curious why futures and PMs both soared out of the gate at 8am? Look no further than the Chairman of the Federal CTRL-Preserve who is speaking at the National Association for Business Economics and just made a very strong hint that the New QE (or is that the NEWER QE) is coming. And there are those mocking Bill Gross for saying the April FOMC would lead to the next QE announcement (something we expounded on extensively yesterday). And here is the most idiotic statement uttered by the Fed: "If this hypothesis is wrong and structural factors are in fact explaining much of the increase in long-term unemployment, then the scope for countercyclical policies to address this problem will be more limited.  Even if that proves to be the case, however, we should not conclude that nothing can be done." Recall what JPM said about central planning breaking the virtuous cycle just two days ago. The Fed has just admitted it... but it does not mean that the Fed will be forced to print print print infinitely more. After all, it's all there is.


and Siver

The conclusion form Bernanke's speech (link):

To sum up:  A wide range of indicators suggests that the job market has been improving, which is a welcome development indeed.  Still, conditions remain far from normal, as shown, for example, by the high level of long-term unemployment and the fact that jobs and hours worked remain well below pre-crisis peaks, even without adjusting for growth in the labor force.  Moreover, we cannot yet be sure that the recent pace of improvement in the labor market will be sustained.  Notably, an examination of recent deviations from Okun's law suggests that the recent decline in the unemployment rate may reflect, at least in part, a reversal of the unusually large layoffs that occurred during late 2008 and over 2009.  To the extent that this reversal has been completed, further significant improvements in the unemployment rate will likely require a more-rapid expansion of production and demand from consumers and businesses, a process that can be supported by continued accommodative policies.

I also discussed long-term unemployment today, arguing that cyclical rather than structural factors are likely the primary source of its substantial increase during the recession.  If this assessment is correct, then accommodative policies to support the economic recovery will help address this problem as well.  We must watch long-term unemployment especially carefully, however.  Even if the primary cause of high long-term unemployment is insufficient aggregate demand, if progress in reducing unemployment is too slow, the long-term unemployed will see their skills and labor force attachment atrophy further, possibly converting a cyclical problem into a structural one.

If this hypothesis is wrong and structural factors are in fact explaining much of the increase in long-term unemployment, then the scope for countercyclical policies to address this problem will be more limited.  Even if that proves to be the case, however, we should not conclude that nothing can be done.  If structural factors are the predominant explanation for the increase in long-term unemployment, it will become even more important to take the steps needed to ensure that workers are able to obtain the skills needed to meet the demands of our rapidly changing economy.


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Mon, 03/26/2012 - 08:19 | 2290332 Sathington Willougby
Sathington Willougby's picture

Not sure if QE's gonna work, it's been such a spectacular failure the last three - four times.  Gosh I just don't know.

Mon, 03/26/2012 - 08:20 | 2290337 battle axe
battle axe's picture

Print you Mother F*&^ers, until the printing press breaks. 

Mon, 03/26/2012 - 08:21 | 2290343 Sathington Willougby
Sathington Willougby's picture

Monetary masturbation.  Could this be the last load?

Mon, 03/26/2012 - 08:37 | 2290372 GetZeeGold
GetZeeGold's picture



I mean really.....who could have seen this coming?


Oh that wrong.....who couldn't have seen this coming?


Yeah.....that's better.


Mon, 03/26/2012 - 08:42 | 2290417 DeadFred
DeadFred's picture

THe EURUSD was just rolling over the right shoulder of such a pretty head and shoulders pattern. That pattern is now dead, but with the DOW hanging at the bottom of the trend line he had to do something. Now Obama's synthetic re-election rally has legs again. As you say no one could see it coming.

Mon, 03/26/2012 - 09:10 | 2290532 MillionDollarBonus_
MillionDollarBonus_'s picture

Bernanke is starting to hint at some serious liquidity support. The 10-year is holding resistance at 2.40 very nicely and stocks are rallying superbly, all of which bodes well for the Obama/Biden 2012 campaign.

Mon, 03/26/2012 - 09:29 | 2290602 Al Gorerhythm
Al Gorerhythm's picture

I love liberty and free speech. It offers every man the opportunity to open his mouth and bray like an ass. 

Mon, 03/26/2012 - 09:38 | 2290626 LawsofPhysics
LawsofPhysics's picture

I sure hope so MDB, my commodities portfolio would love it, not to mention making my physical shine brighter then ever.  But come on, you can do better than that.

Mon, 03/26/2012 - 09:42 | 2290641 lunaticfringe
lunaticfringe's picture

I see Captain Fucknuts has made his appearance. Always  long the dollar.

Mon, 03/26/2012 - 10:54 | 2290936 Fuh Querada
Fuh Querada's picture


Mon, 03/26/2012 - 12:35 | 2291385 MeelionDollerBogus
MeelionDollerBogus's picture

pfft. I'll believe it when I smell the printer ink.

Stocks aren't rallying, they're attempting to make up prior losses. Boring. BOH-ring

Owe-Bama probably doesn't stand a chance if Ron Paul delegates are not arrested in the process of voting.

Mon, 03/26/2012 - 08:43 | 2290424 Oh regional Indian
Oh regional Indian's picture

This is not soaring. Come on. It's another headline driven rise. Which will have it's own headline driven fall. Such is how it is. 

When 10 dollar moves in Silver become the norm, then we know it's end-game time.



Mon, 03/26/2012 - 08:56 | 2290474 Chief KnocAHoma
Chief KnocAHoma's picture

I think the Bernank has been talking to my wife. When she wants me to do something which she knows I would rather not, she puts on something a little slinky, shaves her legs and hints at how good it is gonna be when night time gets here.

Then like one of Pavlov's stupid mutts, I jump through the hoop eager for my reward.

The problem is there are many nights when I go to the bedroom expecting to find a Victoria's Secret advertisement stretched out on the bed, but there is only a snoring slob in sweat pants and facial cream.

UUGGGHHHH... I wonder if Ben will at least give us a reach around?

Mon, 03/26/2012 - 09:14 | 2290557 Chief KnocAHoma
Chief KnocAHoma's picture

Ok... who has the balls to down vote this? Had to be a woman.

Mon, 03/26/2012 - 09:30 | 2290605 Al Gorerhythm
Al Gorerhythm's picture

You lucky slob. Imagine waking up to Ben? Then you know you have problems.

Mon, 03/26/2012 - 14:50 | 2291938 metaforge
metaforge's picture

Lolz!  Hasn't Ben been giving us a reach around for a few years now already?

Mon, 03/26/2012 - 19:21 | 2292837 fightthepower
fightthepower's picture

Fuck you Bernanke!

Mon, 03/26/2012 - 08:57 | 2290478 GetZeeGold
GetZeeGold's picture



I hear you ORI........I'm just getting a head start is all.


Mon, 03/26/2012 - 10:05 | 2290710 Deo vindice
Deo vindice's picture

@ORI - This is not soaring. Come on. It's another headline driven rise. Which will have it's own headline driven fall. Such is how it is.

Couldn't have said it better myself. When will folks quit linking the price of PM's to headlines of the hour? Prices do not rise and fall because of the news, but because of manipulation. The news is simply their cover. Sharp spikes rarely see corresponding equally sharp dips in the dollar.

As Holmes would say, "The game is afoot". And it has been for a long time.

Mon, 03/26/2012 - 08:43 | 2290421 StychoKiller
StychoKiller's picture

Werdz from The Bernank are like Viagra for Au & Ag -- thanks Bernank!

Mon, 03/26/2012 - 11:35 | 2291155 hawks5999
hawks5999's picture

Then you realize that if you just wait a bit, there's another load available.

Mon, 03/26/2012 - 08:23 | 2290349 francis_sawyer
francis_sawyer's picture

Dual mandates of the Fed (re-defined):


A) Print

B) Print at mega-fucking hyperwarp speed

Mon, 03/26/2012 - 08:23 | 2290353 r00t61
r00t61's picture

I don't think the Fed will stop until they've "gone to plaid."

Mon, 03/26/2012 - 08:44 | 2290428 StychoKiller
StychoKiller's picture

"To boldly print like no man has printed before!"

Mon, 03/26/2012 - 08:50 | 2290449 Oh regional Indian
Oh regional Indian's picture

Stycho, thanks for the Russell link in a previous post, awesome stuff. I've been onto Viktor Schauberger for years, so it felt like another piece of a long worked on puzzle.


Mon, 03/26/2012 - 08:58 | 2290483 Al Gorerhythm
Al Gorerhythm's picture

Does this serving tray have brakes?

Mon, 03/26/2012 - 09:41 | 2290635 Jake88
Jake88's picture

print so all the imbeciles will think they are getting rich.

Mon, 03/26/2012 - 08:30 | 2290378 Id fight Gandhi
Id fight Gandhi's picture

The markets are already top heavy. And do we really need $5 gas going into summer?

Mon, 03/26/2012 - 08:44 | 2290427 urbanelf
urbanelf's picture

$5 gas will break the economy, $6 gas will save it.

Mon, 03/26/2012 - 08:59 | 2290486 Chief KnocAHoma
Chief KnocAHoma's picture

I am not sure I understand this logic, but I desperately want to hear more.

Mon, 03/26/2012 - 09:37 | 2290628 Dumpster Fire
Dumpster Fire's picture

lol @ "desperately"

Mon, 03/26/2012 - 08:35 | 2290396 spankthebernank
spankthebernank's picture

They are intentionally destroying currencies worldwide...the CB's that is.

Mon, 03/26/2012 - 09:10 | 2290536 stocktivity
stocktivity's picture

They keep printing because they can....and they can keep printing a lot longer than suspected.  It's all Bullshit!

Mon, 03/26/2012 - 10:29 | 2290772 Crisismode
Crisismode's picture

Japan's been doing it for twenty+ years.


Benny's just getting started.


Mon, 03/26/2012 - 10:04 | 2290708 dbomb12
dbomb12's picture

I think the old saying goes "4 times a charm" although I could be mistaken

Mon, 03/26/2012 - 10:40 | 2290855 Elmer Fudd
Elmer Fudd's picture

Does QE work? sure it does, props up the data in nominal terms, and it buys the PTB a little more time.  Are you asking if it actually contributes to an economy? 

Mon, 03/26/2012 - 11:33 | 2291144 DosZap
DosZap's picture

Not sure if QE's gonna work, it's been such a spectacular failure the last three - four times. Gosh I just don't know.

Dump it in American consumers mailboxes, and watch the spike in ALL area's,instead of the damned banks that sit on it and collect a quarter basis point for NADA.

How is THAT helping anyone.

Institute a WPA like program with it, hire folks to rebuild infrastuctures, and fix the damn roads.Would employ hundreds of thousands at a decent wage.

Mon, 03/26/2012 - 08:18 | 2290334 digitlman
digitlman's picture

Fuck you Bernanke.

Mon, 03/26/2012 - 08:29 | 2290376 JPM Hater001
JPM Hater001's picture

Are curse words really the best we can do?

I'm for the occasional explative but this is getting stupid...and I dont come to ZH for stupid...I go to MSNBC.

Mon, 03/26/2012 - 08:35 | 2290397 r00t61
r00t61's picture

I wouldn't mind if curse words were really "words of curse," like South Park once explained.  Who wouldn't mind cursing the Bernanke with boils on his face, or festering hemorrhoids?

Mon, 03/26/2012 - 09:02 | 2290501 Chief KnocAHoma
Chief KnocAHoma's picture

I'll be glad to let him have my hemorrhoids. After all he originally gave them to me when he wiped away most of my wealth right about the time my kids were wanting to go to college.


Mon, 03/26/2012 - 08:36 | 2290399 GetZeeGold
GetZeeGold's picture



I go to MSNBC.


That would explain the bitchy comment.


Did you have a constructive comment you were looking to add?


Mon, 03/26/2012 - 08:50 | 2290448 Ahwooga
Ahwooga's picture

Well here's one. Im not sure why all the goldbugs are so keen to see excessive and extra printing merely to bump up the price of their assets priced in the currency they apparently so strongly detest. In actual fact why so many bought physical was to shield themselves from needing to worry about fiat, and calling for and being excited about printing that will inflate, price out and force many already on the edge further and deeper into poverty extends far beyond idiocy that the fed would be proud of, and right into sociopathy.

Why is everyone so fucking pleased about printing? How are you going to buy your food, heating and gasoline? Sell them a krugerrand?

Mon, 03/26/2012 - 08:54 | 2290467 GetZeeGold
GetZeeGold's picture



Not pleased about it......just doing something about it.


News flash sparky......they're gonna do it whether you like it or not.


Mon, 03/26/2012 - 09:00 | 2290495 Ahwooga
Ahwooga's picture

My comment wasnt directed at you getzee, more to the lunatic fringe that sadly make up more and more of the readership of ZH lately, and anyone calling for printing until the press melts or whatever is sadly deluded. Should that be the case and the dollar inflates at anything like a hyper-rate, it doesnt matter how much phys we have, itll be worth less by the time we get home after trading it in for something needed to actually transact than will buy a loaf. If inflation ever really kicks off at an accelerated rate I just dont think enough people are worried enough about the consequences and merely calling for printing and inflation to pump up their asset price is just plain stupid.

Mon, 03/26/2012 - 09:07 | 2290519 GetZeeGold
GetZeeGold's picture



I see what you did there......carry on amigo.


Mon, 03/26/2012 - 09:07 | 2290523 valley chick
valley chick's picture

You really do not believe this can be fixed do you?

Mon, 03/26/2012 - 09:12 | 2290551 Ahwooga
Ahwooga's picture

I believe that it can be fixed, I have ZERO faith in the political will required to actually do it. The only guy that has that will is sadly never going to get the nod from the GOP. Shambolic doesnt even begin to cover it.

Mon, 03/26/2012 - 09:34 | 2290619 Badabing
Badabing's picture


Back in the 1920s they “the Fed” printed up more paper than gold and by 1933 the price had to be revalued. In the following years the price settled down to $42,22 an oz. Than in 1970 paper was printed way beyond the amount of gold held by the US and forced us off the international gold standard and the price of gold popped to $800 and settled down to around $400. The first gold revaluation in 1933 was around 70% at first but the piece of gold settled to above $40 and gold increased in value by 100%. In the 70/80s gold went from around $40 to $400 Is that 1000% I think so. So nothing is new under the sun, and we find ourselves in the over printed position again. the difference now  is that we have a paper buffer in the form of paper contracts between the dollar and gold. But it’s the same old same old. So when I hear that the fed is printing more it means we are closer to a revaluation again. This time the sky’s the limit or the end game and I see a revaluation in the very near future. QE yea!!!!!   

Mon, 03/26/2012 - 09:45 | 2290653 pods
pods's picture

Many of us in the lunatic fringe want the FED to print precisely because we know that increased printing will add more instability to this system.  Instability will cause wild gyrations and hopefully an all out collapse.
Those of us who have undertaken the journey to discover how horrid and devious this sytem is realize the only solution is to destroy it.  

We do not cheer the destruction, but merely call for it.



Mon, 03/26/2012 - 09:05 | 2290514 Al Gorerhythm
Al Gorerhythm's picture

If you think these comments (of ovious derision) are emmited because of us deriving some warped pleasure at seeing this farce about us, then you are sadly mistaken in your perception. We're FUCKING ANGRY!

Mon, 03/26/2012 - 11:30 | 2291128 Deo vindice
Deo vindice's picture

Poor Angry. What did he do?

Mon, 03/26/2012 - 10:41 | 2290862 oldman
oldman's picture


Move along, dude

Nothing to talk about here

Mostly brain dead

Not the 'same old place'

Mutations everywhere

we're adapting as a species

Thanks for the post                       om

Mon, 03/26/2012 - 09:34 | 2290617 samcontrol
samcontrol's picture

look at his green and your red.... says it all.

Mon, 03/26/2012 - 11:27 | 2291115 Deo vindice
Deo vindice's picture

@ JPM Hater001 Are curse words really the best we can do?

Lots of ZH readers love good old George Washington. Here's a quote from him.

"The foolish and wicked practice of profane cursing and swearing is a vice so mean and low that every person of sense and character detests and despises it"

Mon, 03/26/2012 - 12:34 | 2291378 Gazooks
Gazooks's picture

That's George the 'Christian" slave owner, political elitist and administrating butcher of native Americans by the truck load, right?

Tue, 03/27/2012 - 01:36 | 2293517 Deo vindice
Deo vindice's picture

Your revisionism of history is only exceeded by your selectivity of what you choose to believe.

Mon, 03/26/2012 - 08:47 | 2290439 number cruncher
number cruncher's picture

I share the same sentiment. But he has notindicated printing..just accomodative policies...itcould just be zero percent interest rates to 2065, or operation twist again where mid dated notes are now targeted. I am wondering if printing money could actually be an election issue thanks to Ron Paul

Mon, 03/26/2012 - 08:34 | 2290335 Zero_Sum
Zero_Sum's picture

The whole point of this speech was to tip the Fed's hand and bolster expectations. QE3 announcement at the April FOMC meeting = sure thing. Postion yourself accordingly.

Mon, 03/26/2012 - 10:59 | 2290973 Bring the Gold
Bring the Gold's picture

Hmm...a sure thing in the markets...

Mon, 03/26/2012 - 08:20 | 2290336 mushi
mushi's picture

Till infinity! And beyond!

Mon, 03/26/2012 - 08:20 | 2290338 SolidSnake961
SolidSnake961's picture


Mon, 03/26/2012 - 08:20 | 2290339 euphoria
euphoria's picture

HA! Tosser.....

Mon, 03/26/2012 - 08:22 | 2290340 the not so migh...
the not so mighty maximiza's picture

Print you fuckers, print, thats all you can do now.  He is BSing the reason.  He has to buy US debt and keep rates at zero.  Thats the only reason he is printing.

Mon, 03/26/2012 - 08:23 | 2290342 TradingJoe
TradingJoe's picture

They need the sheeple to take aapl off banks equity holdings list :()))
Not suckered in sheeple have to come in or else...:()))
Good for my phyzzzzz :()))

Mon, 03/26/2012 - 08:21 | 2290344 jcaz
jcaz's picture


Mon, 03/26/2012 - 08:21 | 2290345 DavidC
DavidC's picture

He will NOT CTRL P until he HAS to - all he does is keep jawboning and the market goes up. WHEN the market goes down he will be FORCED to, but he won't do it until then.


Mon, 03/26/2012 - 08:24 | 2290357 francis_sawyer
francis_sawyer's picture

He'll CTRL P when somebody is in danger of not getting a bonus... There fixed it...

Mon, 03/26/2012 - 08:32 | 2290387 LawsofPhysics
LawsofPhysics's picture

ZIRP is QE by any other name.  The printing never stopped, it's just that those who are in on this circle jerk keeps decreasing.  Those who are close to the free money tap are doing just fine. 

Mon, 03/26/2012 - 09:13 | 2290552 Vince Clortho
Vince Clortho's picture

Are you referring to the "publicly acknowledged" printing?

Mon, 03/26/2012 - 08:21 | 2290346 bullionbaron
bullionbaron's picture

What a f#cked up market where 3 words from 1 guy can make all the difference!

Mon, 03/26/2012 - 08:30 | 2290373 Quinvarius
Quinvarius's picture

The inevitability of those three words are all you need to focus on.  They were coming at some point.  A lot of things can "probably" happen in the future.  You can make odds on a perfect cube of gold appearing from out of nowhere in quantum physics.  But, the things mathematically most likely to happen, almost always do happen. There will be no perfect cube of gold materializing to pay off banker debts.

Mon, 03/26/2012 - 08:31 | 2290380 t_kAyk
t_kAyk's picture

This isn't a market, it's a three-ring circus

Mon, 03/26/2012 - 08:22 | 2290350 HD
HD's picture

And how exactly does more QE create jobs or growth? We've had four years of almost non-stop money printing and we are about to roll over...

How is it different this time?

Mon, 03/26/2012 - 08:29 | 2290371 Moneyswirth
Moneyswirth's picture

It's always different this time.

Mon, 03/26/2012 - 08:22 | 2290351 Schmuck Raker
Schmuck Raker's picture

"Examination of recent deviations from Okun's law suggests..."

it was really just more of guideline than anything else.

Mon, 03/26/2012 - 08:23 | 2290352 Quinvarius
Quinvarius's picture

Bankers probably didn't like that the day before metals OPEX.

Mon, 03/26/2012 - 08:23 | 2290354 scatterbrains
scatterbrains's picture

 so now with the ECB  passing the ball back to the fed to proceed with the print fest it's a little frightening how quickly Berstanky wants to commence with printing while the energy markets are set to explode higher. You would think they would try to wait a few months and knock things back but I guess their level of panic is so strong that fuck it! Keep printing bitchez

Mon, 03/26/2012 - 08:24 | 2290355 Sutton
Sutton's picture

The fate of the World is tied to Ben's menstrual cycle.

Mon, 03/26/2012 - 08:27 | 2290364 battle axe
battle axe's picture

Ok, now that was funny. Sad and true, but funny. 

Mon, 03/26/2012 - 09:08 | 2290521 Al Gorerhythm
Al Gorerhythm's picture

Ben's remenstrations?

Mon, 03/26/2012 - 08:26 | 2290358 Cdad
Cdad's picture

This guy fits the profile exactly.  Bernanke is a complete psychopath.  Get him out of office, now!

Mon, 03/26/2012 - 08:28 | 2290369 Everybodys All ...
Everybodys All American's picture

it's too late I'm afraid.

Mon, 03/26/2012 - 09:11 | 2290539 Vince Clortho
Vince Clortho's picture

His replacement will be a carbon copy.

Mon, 03/26/2012 - 10:34 | 2290817 Crisismode
Crisismode's picture

Timmah will be da man.

HE will fix things, sho nuff.

Mon, 03/26/2012 - 10:50 | 2290908 Elmer Fudd
Elmer Fudd's picture

Ben is not a psycopath, he is a stooge.  There are plenty of money printing economists on deck.  Some of them may even have ties to the squid.  If you think the next appointee is gonna be better you drink too much.  The "office" needs to be eliminated.

Mon, 03/26/2012 - 08:26 | 2290360 DavidC
DavidC's picture

The Fed is leveraged up over 50 to 1 - if rates rise it's fucked. Bernanke is DESPERATE to keep the stock market up because he knows if it goes (and it will, sooner or later) the fed is toast.


Mon, 03/26/2012 - 08:32 | 2290385 fonzannoon
fonzannoon's picture

David I don't disagree with you I just thought the prevailing thought on here was the fed NEEDS the market to slam down to give them cover to do QE...I guess that is false eh?

Mon, 03/26/2012 - 08:41 | 2290415 DavidC
DavidC's picture

I think you're right and, to me, this is the paradoxical position Bernanke is in. Rates rise, stocks fall, the Fed is toast. Stocks fall in order to provide cover for QE3, rates will rise and the Fed is toast. He's painted himself into a corner.


Mon, 03/26/2012 - 08:53 | 2290462 fonzannoon
fonzannoon's picture

Someone on here said the Fed knows ahead of time that the data to come out is weak so by coming out today saying this he ends up looking smart. Therefore people grant his forecasting ability and intelligence the go ahead to do more QE since he is all knowing....other than that you have to be right.

Mon, 03/26/2012 - 09:03 | 2290508 LawsofPhysics
LawsofPhysics's picture

Yes, essentially the Fed (and to a lesser extent, the U.S. government) can front-run itself.  Look what these talking heads do, ignore what they say.

Mon, 03/26/2012 - 09:04 | 2290502 LawsofPhysics
LawsofPhysics's picture

While I love your assertions.  What you fail to mention is that according to the Federal Reserve Act, the U.S. taxpayer is responsible for the leverage at the Fed.  "The Fed" is a private bank that is actually backstopped by the U.S. "tenant".


So ask yourself, why isn't the Fed subject to a full audit like any other private bank?  Why aren't the U.S. taxpayers demanding this via their representation?  Simple, there is no longer any representation for the U.S. taxpayer.  The empire is naked, For Fed(banks) by the Fed(banks).

In 200 years, America comes full circle (taxation without representation), hedge accordingly.

Mon, 03/26/2012 - 08:27 | 2290362 DeadFred
DeadFred's picture

Buy some SLV weekly futures at the open. This has the makings of an epic day.

Mon, 03/26/2012 - 08:26 | 2290363 the not so migh...
the not so mighty maximiza's picture


I will take a gallon of gas for 17.00

Mon, 03/26/2012 - 08:32 | 2290388 GeneMarchbanks
GeneMarchbanks's picture

17.00 what?

Mon, 03/26/2012 - 08:48 | 2290395 the not so migh...
the not so mighty maximiza's picture

17.00 dollars of freshly printed bills.  We are all going to be rich i tell ya.


Mon, 03/26/2012 - 08:56 | 2290473 DeadFred
DeadFred's picture

Since a gallon of gas costs a dime (silver) historically you are predicting silver at $170 dollars. Sounds about right.

Mon, 03/26/2012 - 08:27 | 2290365 cnhedge
cnhedge's picture

the stock market is supported by both qe and economic data? wrong!

Mon, 03/26/2012 - 08:28 | 2290367 ivars
ivars's picture

Comparison with Armstrong USA default predictions :

Gold is a good investment NOT because of all the fiat nonsense, but because inflation has passed it by and there will be a huge burst of price movement. That will come when the Sovereign Debt Crisis hits the USA and that does not seem likely until 2015.75.

My chart shows that the USA will partially default (crash in debt amount)  when the debt reaches about 21 trillion which should happen in the end of 2015-beginning of 2016, given its superexponential growth.

From my charts, the Gold prices will start to anticipate this default much earlier, seriously already in the end of 2014. After default, Gold shoots up 5500 USD/oz to 11500 USD/oz in 1 year, and then sometime in 2017 the Gold bubble ends. Why I do not know, as chart are in USD as they are today.  Might also a point of  change of regime I have no idea about.

However, the first doubling of gold in value according to my charts from around 2000 USD to 4000 USD in a form of panic buying will happen immediately after 2012 elections and by the middle of 2013,  which may mean that QE3 or some significant fiscal stimulus will be delayed until elections and than IF Obama wins second term , it will be unleashed after this delay, so in bigger scale than anticipated. Or may be whoever wins, since its FED who decides on printing.


Mon, 03/26/2012 - 09:06 | 2290518 LawsofPhysics
LawsofPhysics's picture

Real U.S. debt is closer to 50 trillion already.

Mon, 03/26/2012 - 16:21 | 2292271 MeelionDollerBogus
MeelionDollerBogus's picture

What's the math for your charts? I'm showing the math for my charts to help enhance the credibility of the model so that if I make a mistake others can point it out. That way we're not working only from opinions but connecting data to math & perhaps can all figure it out to ensure we're not just making shit up.

Just curious but what is the basis for your conclusions or projections?

Mon, 03/26/2012 - 08:28 | 2290368 Papasmurf
Papasmurf's picture

Another round of central bank theft from savers.

Mon, 03/26/2012 - 09:07 | 2290522 Vince Clortho
Vince Clortho's picture

It's ongoing.

Mon, 03/26/2012 - 08:29 | 2290370 RazorForex
RazorForex's picture

The moves on the S&P Futures and Gold were setting up yesterday night before the open today. The technicals always give the tip off to which way the market is heading.

Mon, 03/26/2012 - 08:28 | 2290374 Thomas Jefferson
Thomas Jefferson's picture

We are long over due for some hardcore gold porn.

Mon, 03/26/2012 - 08:29 | 2290375 tok1
tok1's picture

Morgan Stanly report saying next week jobs below 200K maybe 150-200.. he knows data will come in weak.. so  he will feel vindicated..  Gov'ts got to stop spending balance the budget before the fed can stop buying or rates will spike higher..

Mon, 03/26/2012 - 08:30 | 2290377 dwdollar
dwdollar's picture

Don't worry. Shalom can control inflation in 1.21 Jigawatts.

Mon, 03/26/2012 - 08:33 | 2290391 Id fight Gandhi
Id fight Gandhi's picture

....we're gonna see some serious shit

Mon, 03/26/2012 - 08:30 | 2290379 gold-is-not-dead
gold-is-not-dead's picture

I'm not dead, I feel fine :)

Mon, 03/26/2012 - 10:44 | 2290878 prole
prole's picture

I forget who but somebody called a top and that shortly there would be no bids for gold (or something to that effect) This was just yesterday here on ZH.

Goodbye gold, you had a good run though..

Mon, 03/26/2012 - 15:53 | 2292155 MeelionDollerBogus
MeelionDollerBogus's picture

About that top-calling...

only I can do that much top-calling!

Mon, 03/26/2012 - 08:31 | 2290381 Everybodys All ...
Everybodys All American's picture

Printing under the disguise of helping the unemployed. Unbelievable gall.

Mon, 03/26/2012 - 08:33 | 2290390 johnnymustardseed
johnnymustardseed's picture

One has to wonder why we arrest conterfeiters???? Could they ever damage a currency more than the FED does??

Mon, 03/26/2012 - 08:34 | 2290394 dwdollar
dwdollar's picture

I don't think they can keep up.

Mon, 03/26/2012 - 09:06 | 2290517 Vince Clortho
Vince Clortho's picture

The difference is when the feds print, they funnel the money straight to the CB members.  If unaffiliated counterfeiters gave the money immediately to the Fed (instead of putting it into public circulation), they would not be considered a threat.  I think.

Mon, 03/26/2012 - 08:36 | 2290393 casey13
casey13's picture

There was and is no doubt about QE to infinity. They are now trapped with no good outcome. Print or die. They will print but they will try to maintain enough confidence to avoid hyperinflation. A very fine line they are walking indeed. 

Mon, 03/26/2012 - 08:36 | 2290402 dcb
dcb's picture

anyone ever notice that he says this shit when the marets should be turning over. the second thins is all it means is the averaage american will just be getting poorere and poorer. he's a fucking sociopth

Mon, 03/26/2012 - 08:50 | 2290450 Waterfallsparkles
Waterfallsparkles's picture

What is amazing is that this interjection of his beliefs comes every time the Market dips ever so slightly.

Mon, 03/26/2012 - 08:37 | 2290404 Seasmoke
Seasmoke's picture

i would respect Bernaanke , if he just said FUCK ALL YOU MORONS

Mon, 03/26/2012 - 08:38 | 2290406 G_T_A_44
G_T_A_44's picture

Inflate or Die!

One day closer to global hyperinflationary depression~

Mon, 03/26/2012 - 08:38 | 2290407 HD
HD's picture

I can't watch anymore.  Do these people honestly believe they can hold the market together without a correction for 13 months strait? Do they really think General Mills reporting an 11% increase in commodity costs is a fluke no one notices at the grocery store?

Every week more outflows even as the market is higher. They have destroyed confidence - no new money will go to work because they know it throwing it down a hole.


Mon, 03/26/2012 - 08:47 | 2290412 ekm
ekm's picture

This is THE OFFICIAL CONFIRMATION that Cocainated Easing has done a lot of harm and it will never happen unless S&P goes down to 900 and oil down to $50.

He is just talking the market up. The senators of both sides will ask for his head on a gold platter if he prints more debt.

Mon, 03/26/2012 - 08:43 | 2290420 I should be working
I should be working's picture

Really, the gold bull market isn't over? But they told me on CNBC that it crossed the 200 dma??

Mon, 03/26/2012 - 08:43 | 2290422 valley chick
valley chick's picture

Is the "market" merely a head fake to the real issue of the petro dollar?  Over and over again the fundamentals say this should have crashed just to have it propped up again.  What do I know...just a newbie.  ;-)

Mon, 03/26/2012 - 08:46 | 2290436 Waterfallsparkles
Waterfallsparkles's picture

Amazing how Hot Air can keep the Market up.

Like a Ballon thrown into the air and to keep it up you blow hot air at it.  At some point you would think you would run out of hot air.

Mon, 03/26/2012 - 08:51 | 2290453 ekm
ekm's picture

Hot air is not keeping the market up.

It's the primary dealers that are stuck with BAC shares and shares from each other. Those holdings are leveraged and as with MF Global any reduction in stock price would result in a margin calls, hence MFGlobalization.

They are getting more and more leveraged hoping that the suckers will arrive to unload those stocks onto. Same as MF Global.

No hope. Another Primary dealer will have a margin call soon and will be MFglobalized. That's what Benny is trying to avoid. They are using him to lure suckers.

Mon, 03/26/2012 - 08:49 | 2290442 kito
kito's picture

Why print when the promise works just as well. How many more times are people going to buy into the lost city of Printlantis??....

Mon, 03/26/2012 - 15:45 | 2292126 MeelionDollerBogus
MeelionDollerBogus's picture

printlantis!! #winning

Mon, 03/26/2012 - 09:07 | 2290461 Sudden Debt
Sudden Debt's picture





Mon, 03/26/2012 - 08:54 | 2290465 rsnoble
rsnoble's picture

"If this hypothesis is wrong"

So in other words the FED doesn't have a fucking clue. Just print $ and hope for the best that doesn't change into something even worse.

I'm also curious if they'll let the market tank first. Everyone says "oh it's too political" or "they need to wait", etc. Why?  Everyone already hates them. Why let let trillions go down the toilet when we can plow more in and get this overpriced garbage even more overpriced.  One thing's for sure......shit is spewing out ever possible pore.

I don't buy into the hypothesis of letting the market tank for more QE. Hell, they can't even handle a -100 drop on the DOW over 2 days. Here we are with futures at a near full recovery.  I'm not saying it won't happen, no one knows but they sure like pretty green lights that's for damn sure.

Mon, 03/26/2012 - 09:08 | 2290530 Sudden Debt
Sudden Debt's picture

There's always plan B you know...

but we're still working on it...

by "we" I mean: me and this other guy you haven't heard of.


Mon, 03/26/2012 - 09:01 | 2290488 Chuck Walla
Chuck Walla's picture

Listening to that criminal's "academic look" at unemployment was gut wrenching. That son of a bitch knows nothing of real life.


Meanwhile, Ron Paul was on Bloomberg explaining why Ben is a criminal.  A stooge for the priveledged.


Mon, 03/26/2012 - 09:00 | 2290493 monopoly
monopoly's picture

"And the decline in housing prices and sub prime loans will be contained and is temporary. Growth in housing will resume".

Mon, 03/26/2012 - 09:00 | 2290494 CEOoftheSOFA
CEOoftheSOFA's picture

The problems are structural.  The government is too big. 

Mon, 03/26/2012 - 09:10 | 2290535 SmoothCoolSmoke
SmoothCoolSmoke's picture

Yes it's structural.  CEO's are greedy SOBs...... too much is not enough. 

Mon, 03/26/2012 - 09:01 | 2290497 Equites
Equites's picture

At the time when a high official at the ECB talks in Tokyo about how the most important factor for the ECB is to REVERSE last year's measures at the earliest possible opportunity, the cross-Atlantic goes even further in this blown-up hot air hot potato bs jawboning up markets - for whom?

If a second term of presidency is for legacy, after a first one is just to be re-elected (wow, on what?) then I'm curious if not anxious what this tandem of Bill & Bama will do...


Mon, 03/26/2012 - 09:07 | 2290524 RagnarDanneskjold
RagnarDanneskjold's picture

Maybe they heard about the Chinese villagers demanding gold and silver, with every resident receiving 100g of each.

Mon, 03/26/2012 - 09:12 | 2290546 Snakeeyes
Snakeeyes's picture

And look at what will happen with HARP 2.0. This is massive market manipulation.

<a href=""><img src="" alt="" title="wbm032612" width="645" height="461" class="aligncenter size-full wp-image-12908" /></a>


Mon, 03/26/2012 - 09:27 | 2290595 VonManstein
VonManstein's picture

forgive the new fish zerohedger that i am but cant we boys just form a slight leveraged syndicate and bid up supply constrained silver? and thus destroying the JPmorgue and afew others..

i got a little phyzzz but i want more so i can abondon shit sinking UK ship and move to sweden to be with my girl..

i think im dreaming arnt i. yes. proabably.

Mon, 03/26/2012 - 09:27 | 2290596 VonManstein
VonManstein's picture

forgive the new fish zerohedger that i am but cant we boys just form a slight leveraged syndicate and bid up supply constrained silver? and thus destroying the JPmorgue and afew others..

i got a little phyzzz but i want more so i can abondon shit sinking UK ship and move to sweden to be with my girl..

i think im dreaming arnt i. yes. proabably.

Mon, 03/26/2012 - 10:34 | 2290799 mick_richfield
mick_richfield's picture

they control the 'market' and the 'regulators'.  regulators investigate wrong-doing -- but never reach conclusion in spite of vast & obvious evidence.

they can ( have, are ) dump huge quantities of false silver (PostIt notes that say "I am silver") on the 'market'.

if even this strategy fails to constrain price, they will ( have ) blown up parts of the market, ruined players betting on price-rise, and stolen their money and metal.

powerful players ( china ) permit this to continue -- so long as they can continue to acquire metal in exchange for 'money'.

they do everything possible to prevent actual metal from being taken from the system.  when actual metal *must* be delivered, they steal it from other sources, such as a large ETF that is thought to be metal-backed.

the game will end when they can no longer deliver metal -- but then there may be no orderly market for some time.   years?   or there could be one established in china.


don't hit the  'save' button twice, even if it seems like nothing happened the first time.


Mon, 03/26/2012 - 09:56 | 2290685 Odin
Odin's picture

So to sum up, if this is a cyclical problem, we will print. If this instead turns out to be a structural problem, then instead of printing, we will print....

...Is that $50 silver I smell just around the corner???

Mon, 07/02/2012 - 10:24 | 2292098 MeelionDollerBogus
MeelionDollerBogus's picture

My estimation is that you may need to wait until 2012 July given the gold price should be $1813 or so for silver to hit $50. My reasoning & math in this image: just for you

1.00339 factor of silver (0.339% increase) for every $1 up in gold

*update now in July*

2012 06 18 277week roc 02 goldpricemodel 2011 Jan to 2012 Dec 28

2012 06 24 scatterplot gold vs silver 10yr 03 | goldpricemodel

still not had a chance to brew up the 52-week model but it will be based on extending this pattern 2012 apr 17 gold ROC trends | 52week ROC gold to 2400/oz

Mon, 03/26/2012 - 09:58 | 2290695 GernB
GernB's picture

Only in a centrally planned economy could you legitimatly see the headline: Markets Soar On News Job Market May Suck.

Mon, 03/26/2012 - 10:10 | 2290721 csmith
csmith's picture

"If this hypothesis is wrong and structural factors are in fact explaining much of the increase in long-term unemployment, then the scope for countercyclical policies to address this problem will be more limited.  Even if that proves to be the case, however, we should not conclude that nothing can be done."



"Even if its obvious we need to use the bone saw (which we're fresh out of at this point!), the HAMMER it is!" 

Thank you Dr. Strangelove.

Mon, 03/26/2012 - 10:21 | 2290748 mick_richfield
mick_richfield's picture

Bernanke is helping us the only way he can, but even the clearest directions are useless if you fail to properly decode them.

Here is my translation of the first few paragraphs:


The job market continues to worsen, and the decline is
accelerating.  We have done what we can to conceal the
truth.  We believe that we may be approaching a tipping
point, at which the decline will accelerate catastrophically.

Structural factors have prevented previous money-creation
from having any stimulative effect.  We intend to greatly
increase the pace of money creation, although we fully
expect this to also result in no improvement.

The economy cannot be saved at this point, but you who have
access to the increasing money supply may be able to save

He who has ears, let him hear.

Mon, 03/26/2012 - 12:48 | 2291442 hungarianboy
hungarianboy's picture

Dont worry tomorrow another $100 plunge. Oh did I say this in the gold bug place?

Don't care. Gold is done telling you guys since $1900

Mon, 03/26/2012 - 14:55 | 2291953 MeelionDollerBogus
MeelionDollerBogus's picture

no, gold is just recharging. You'll see gold over 2000 by August, no question.

just the math, not any kind of opinion.

for gold to be done you need to increase interest rates more than 10% up (1000 basis points) and print NO money by any means whatsoever. If you can do that then gold's DONE.

Mon, 03/26/2012 - 13:17 | 2291565 Bansters-in-my-...
Bansters-in-my- feces's picture

Fuck you Bernanke.....

You lie,your lips moved.

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