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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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.


battle axe's picture

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

Sathington Willougby's picture

Monetary masturbation.  Could this be the last load?

GetZeeGold's picture



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


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


Yeah.....that's better.


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.

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.

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. 

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.

lunaticfringe's picture

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

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.

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.



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?

Chief KnocAHoma's picture

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

Al Gorerhythm's picture

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

metaforge's picture

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

GetZeeGold's picture



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


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.

StychoKiller's picture

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

hawks5999's picture

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

francis_sawyer's picture

Dual mandates of the Fed (re-defined):


A) Print

B) Print at mega-fucking hyperwarp speed

r00t61's picture

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

StychoKiller's picture

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

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.


Al Gorerhythm's picture

Does this serving tray have brakes?

Jake88's picture

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

Id fight Gandhi's picture

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

urbanelf's picture

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

Chief KnocAHoma's picture

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

spankthebernank's picture

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

stocktivity's picture

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

Crisismode's picture

Japan's been doing it for twenty+ years.


Benny's just getting started.


dbomb12's picture

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

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? 

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.

digitlman's picture

Fuck you Bernanke.

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.

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?

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.


GetZeeGold's picture



I go to MSNBC.


That would explain the bitchy comment.


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


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?

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.


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.

GetZeeGold's picture



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


valley chick's picture

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

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.

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!!!!!   

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.