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The Global Liquidity Bailout Arrives: World Central Banks Announce Global Dollar Shortfall Funding Resolution

Tyler Durden's picture


Remember that dollar liquidity crunch Zero Hedge has been covering for the past month? Here is the denouement, in the form of the first global liquidity bailout of the world for 2011, on the 3 year anniversary of the Lehman collapse.

ECB Announcement:

15 September 2011 - ECB announces additional US dollar liquidity-providing operations over year-end

The Governing Council of the European Central Bank (ECB) has decided, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three US dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year. These operations will be conducted in addition to the ongoing weekly seven-day operations announced on 10 May 2010. The schedule for these additional operations is as follows:

Tender date Settlement date Maturity date
12 October 2011 13 October 2011 5 January 2012
9 November 2011 10 November 2011 2 February 2012
7 December 2011 8 December 2011 1 March 2012

These will all take the form of repurchase operations against eligible collateral and will be carried out as fixed rate tender procedures with full allotment. Further information on tender procedures can be found on the ECB’s website.

Information on related announcements by other central banks is available on the following websites:

Bank of England:

Bank of Japan:

Swiss National Bank:


SNB Announcement:

The Swiss National Bank (SNB) has decided, in coordination with the Bank of England, the Bank of Japan, the European Central Bank and the Federal Reserve, to offer US dollar liquidity with a term of 84 days to cover the end of the year. These tenders will be conducted in addition to the 7-day operations. The first 84-day US-dollar liquidity operation will be carried out on 12 October 2011. Further information about the US dollar operation and the technical requirements are posted on the SNB website (

BOE Announcement:

In coordination with the European Central Bank, the Swiss National Bank, the Bank of Japan, and the Federal Reserve, the Bank of England is today announcing that it will conduct three US dollar tenders, each at a term of approximately three months covering the end of the year. These tenders will be in addition to the ongoing weekly 7-day tenders of dollar funding announced on 10 May 2010.

As before, these operations will be at fixed interest rates with counterparties able to borrow any amount against eligible collateral. The first tender will be held on Wednesday 12 October. Further details can be found in the Market Notice at

US dollar repo operations are subject to the terms of the Sterling Monetary Framework Documentation as supplemented and amended by the Supplementary Terms, which can be found on the Bank of England website at The US dollar term repo operations use the Narrow and Wider OMO Collateral pools, details of which can be found at

BOJ Announcement:

The European Central Bank, the Bank of England, and the Swiss National Bank have today announced the introduction of three-month U.S. dollar funds-supplying operations covering the year end.

The Bank of Japan has so far continued to conduct weekly one-week U.S. dollar funds-supplying operations and monthly three-month U.S. dollar funds-supplying operations. In coordination with those central banks and the Federal Reserve, the Bank of Japan announces here an additional schedule for a three-month U.S. dollar funds-supplying operation covering the year end.

Further schedule will be notified as decided.

1. Operational time table

2. Auction schedule (An auction on October 18, 2011 is added)


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Thu, 09/15/2011 - 09:07 | 1672750 LRC Fan
LRC Fan's picture

Wtf is going on?

Thu, 09/15/2011 - 09:08 | 1672759 EscapeKey
EscapeKey's picture

Full economic spectrum manipulation.

Expect crackdowns on "financial freedom" in the name of "preventing economic terrorism".

Thu, 09/15/2011 - 09:10 | 1672776 IBelieveInMagic
IBelieveInMagic's picture

Man the swap lines pumps -- this is a Category 5 hurricane!

Thu, 09/15/2011 - 09:19 | 1672789 hedgeless_horseman
hedgeless_horseman's picture

It's raining everywhere in the world but Texas.


PS:  09-14 16:48: US Senator Reid says will do a China currency bill quickly

...because those chi.coms are such currency manipulators.  We definitely need to bomb them.

Thu, 09/15/2011 - 09:25 | 1672874 thetruth
thetruth's picture

everyone should take a look at this right now

Thu, 09/15/2011 - 09:37 | 1672955 john39
john39's picture

fulford is a source of misdirection... none of the government stooges are going turn on their masters.  they will lick boots to the bitter end.

Thu, 09/15/2011 - 09:57 | 1673077 thetruth
thetruth's picture

maybe he is a source of misdirection.  i'd be happy to read any documentation you have on that, if it's available

Thu, 09/15/2011 - 13:46 | 1674041 Stockmonger
Stockmonger's picture

He wrote of the "311 nuclear tsunami attack" on Japan.  Got tinfoil hat?

Wed, 11/30/2011 - 11:18 | 1930069 pebblewriter
pebblewriter's picture

I was hoping aliens were somehow involved...

Thu, 09/15/2011 - 09:30 | 1672913 Oh regional Indian
Oh regional Indian's picture

Holy M Oly! This has to be the biggest can kick attempted yet.

So, no dollar shortages means no dollar ramp? That means Japan is saved? Eur/USD steadied? SNB decision makes perfect sense in this scenario?

How do we take the controllers to task? Who takes them to task? 

And Au/Ag? Watch, Au is doing the slide while Ag is holding a little better. Whut is up? 

Crazy. Really not worth "trading" this market, how can you account for such intervention? 

Go on, take your money and run!


Tipping Points

Thu, 09/15/2011 - 09:46 | 1673006 sushi
sushi's picture

And the markets jump up!

This is like having every fire truck in the county arrive at the door of your apartment building and the clown on TV is saying this is good news.

Thu, 09/15/2011 - 19:27 | 1675405 Bwahaha WAGFDSMB
Bwahaha WAGFDSMB's picture

But, when the building is on fire, fire trucks showing up IS good news.

Thu, 09/15/2011 - 09:42 | 1672987 baseball13
baseball13's picture


Thu, 09/15/2011 - 09:44 | 1672997 Chuck Walla
Chuck Walla's picture

Really now, who's going to arrest George Soros?

Thu, 09/15/2011 - 09:08 | 1672761 anynonmous
anynonmous's picture


Thu, 09/15/2011 - 09:12 | 1672787 Scottj88
Scottj88's picture

A Den of Vipers and Thieves they all are.... welcome to history repeating itself once again.

Gentleman, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country.

When you won, you divided the profits amongst you, and when you lost, you charged it to the bank.

You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin!

You are a den of vipers and thieves.

Andrew Jackson, (7th US President, when forcing the closure of the Second Bank of the US in 1836 by revoking its charter)

Thu, 09/15/2011 - 09:16 | 1672816 EscapeKey
EscapeKey's picture

Yeah, I like the 2nd bank of the US history; I always compare Bernanke to Biddle when discussing Keynesians, but obviously, it's "totally different this time". They also usually refuse to discuss the origins of the 3rd bank of the US.

Anyway, just off Marketwatch;

"9:10a Moody's Italian downgrade seen as likely"


Predictably, the market doesn't take notice.

Thu, 09/15/2011 - 09:23 | 1672865 Scottj88
Scottj88's picture

When you say the market doesn't take notice, do you mean the algorithms have not yet been turned on?

Thu, 09/15/2011 - 11:53 | 1673601 I did it by Occident
I did it by Occident's picture

9:10 to Yuma?

Reminds me of that movie 3:10 to Yuma.  Good movie, but it's looking like things will end like in the movie.  Most people die and the bad guy gets away. 


Thu, 09/15/2011 - 09:49 | 1673028 baseball13
baseball13's picture


Thu, 09/15/2011 - 09:10 | 1672770 oobrien
oobrien's picture

Good citizen of Metropolis!

Here's my opinion.

Fuck. Shit. Fuck. Shit.

Now you can take that advice to the bank!

Thu, 09/15/2011 - 09:22 | 1672847 LeBalance
LeBalance's picture

Endless printing and don't say a !!!!!!! word about it!

It's OK and that's the Law!

Thu, 09/15/2011 - 09:38 | 1672969 trav7777
trav7777's picture

dollar flood...

Thu, 09/15/2011 - 11:55 | 1673607 I did it by Occident
I did it by Occident's picture

Why are Ag and Au down 3%?  Something's not clicking. 


Thu, 09/15/2011 - 09:49 | 1673019 mantrid
mantrid's picture

Just as described by Jefferies and ZH:



The bottom line is that it looks like a Lehman like event is about to be unleashed on Europe WITHOUT an effective TARP like structure fully in place. Now maybe, just maybe, they can do what the US did and build one on the fly - wiping out a few institutions and then using an expanded EFSF/Eurobond structure to prevent systemic collapse. But politically that is increasingly feeling like a long shot. Rather it looks like we will get 17 TARPs - one for each country.

Ah, 4 already running, 13 more to go...

Thu, 09/15/2011 - 09:07 | 1672751 Cassandra Syndrome
Cassandra Syndrome's picture

They never learn. Hyperinflation is a certainty.

Thu, 09/15/2011 - 09:22 | 1672855 LeBalance
LeBalance's picture

Always was.

Thu, 09/15/2011 - 09:07 | 1672752 LookingWithAmazement
LookingWithAmazement's picture

The banks get dollars - crisis over.

Thu, 09/15/2011 - 09:23 | 1672862 Bicycle Repairman
Bicycle Repairman's picture

Another kick of the can.  The underlying problems remain.

Thu, 09/15/2011 - 20:45 | 1675685 udecker
udecker's picture

It works each time they've done it, so why stop now?

Thu, 09/15/2011 - 09:40 | 1672977 maxmad
maxmad's picture

oops!  Looks like the manipulated BS rally is almost over already!  We finish lower on the day!

Thu, 09/15/2011 - 09:46 | 1673005 LookingWithAmazement
LookingWithAmazement's picture

PMs you mean.

Thu, 09/15/2011 - 09:07 | 1672753 EscapeKey
EscapeKey's picture

May one ask what constitutes "eligeble material"? Shares in Lehman Bros at 2007 peak price?

Thu, 09/15/2011 - 09:33 | 1672935 Hansel
Hansel's picture

Papers... business papers... also there were some Creedence tapes...

Thu, 09/15/2011 - 20:12 | 1675563 WmMcK
WmMcK's picture

Big wheel keeps on turning ...

Thu, 09/15/2011 - 09:08 | 1672754 unky
unky's picture

is that the reason for the EUR/USD spike?

Thu, 09/15/2011 - 09:10 | 1672774 EscapeKey
EscapeKey's picture

That was probably due to the Greek crisis being solved once and for all a few days ago (for the 3rd time).

Thu, 09/15/2011 - 09:08 | 1672756 GoldmanBaggins
GoldmanBaggins's picture

One step closer to the solution.

Thu, 09/15/2011 - 09:08 | 1672758 SeverinSlade
SeverinSlade's picture

I wish I could get a bail out whenever I had a liquidity problem. 


Thu, 09/15/2011 - 09:09 | 1672762 semperfi
semperfi's picture

The bailouts will continue until morale improves - or the shooting starts - whichever comes first.

Thu, 09/15/2011 - 09:09 | 1672764 Sophist Economicus
Sophist Economicus's picture

I've got some bad receivables I'd like to monetize.  Can I get in line too?

Thu, 09/15/2011 - 09:10 | 1672768 LookingWithAmazement
LookingWithAmazement's picture

PMs down - crisis over. Told you so.

Thu, 09/15/2011 - 09:11 | 1672782 HelluvaEngineer
HelluvaEngineer's picture

Right.  Cause infinite money printing is bearish for metals.

Thu, 09/15/2011 - 09:12 | 1672797 LookingWithAmazement
LookingWithAmazement's picture

Who says it goes to the PMs? Apparently not.

Thu, 09/15/2011 - 09:15 | 1672810 Ricky Bobby
Ricky Bobby's picture

Only real savings go to PM's. Play money goes down the UBS affirmative action rabbit hole.

Thu, 09/15/2011 - 09:38 | 1672970 falak pema
falak pema's picture

Kweku Adoboli is now destined to be as famous as Didier Drogba the footballer. Or Jerome Kerviel his fellow scammer.

Some rabbit holes are lined in tungsten gold. During the spell in prison he can write his memoirs.

Thu, 09/15/2011 - 09:26 | 1672882 Bicycle Repairman
Bicycle Repairman's picture

Not today.  How long will this 'stick save' last?

Thu, 09/15/2011 - 09:24 | 1672872 Bicycle Repairman
Bicycle Repairman's picture

Until the next crisis.

Thu, 09/15/2011 - 09:09 | 1672769 anynonmous
anynonmous's picture

ironic timing

Thu, 09/15/2011 - 09:10 | 1672771 Rich V
Rich V's picture

Gold dropping like a stone????????

Thu, 09/15/2011 - 09:12 | 1672794 Sophist Economicus
Sophist Economicus's picture

Meh.   Normal zig zag pattern so far.   Wake me if we go below 1450

Thu, 09/15/2011 - 09:15 | 1672807 anynonmous
anynonmous's picture

you recall post Lehman dropped like a rock

counter intuitive due to liquidity squeeze

Thu, 09/15/2011 - 09:21 | 1672846 Rich V
Rich V's picture

I thought this was providing liquidity?

Thu, 09/15/2011 - 09:26 | 1672885 Sophist Economicus
Sophist Economicus's picture

This isn't 2008...

Thu, 09/15/2011 - 09:23 | 1672860 reload
reload's picture

stocks and oil pumping, paper metal IOU`S being written like confetti.

Thu, 09/15/2011 - 09:10 | 1672773 NEOSERF
NEOSERF's picture

Sorry what happened, I was busy burying my gold in the backyard..

Thu, 09/15/2011 - 09:16 | 1672819 Ricky Bobby
Ricky Bobby's picture


Thu, 09/15/2011 - 09:11 | 1672775 Johnny Lawrence
Johnny Lawrence's picture

So is the ECB version of buying bonds from the banks and the banks can do whatever they want with the cash?

Thu, 09/15/2011 - 09:10 | 1672778 machineh
machineh's picture

Bingo -- there's the liquidity pump that the markets have been registering, as insiders bought hand over fist.

Look on their works, ye mighty, and despair!

Thu, 09/15/2011 - 09:11 | 1672781 SmoothCoolSmoke
SmoothCoolSmoke's picture

Bread $10 a loaf....coming to a Kroger near you soon.

Thu, 09/15/2011 - 09:34 | 1672908 Sophist Economicus
Sophist Economicus's picture

...Which will put Orlik, Dunhill and Esoterica way above $100 for 50 grams   ;)

Thu, 09/15/2011 - 09:11 | 1672783 DavidC
DavidC's picture

I don't normally swear, but are these people off their fucking heads?


Thu, 09/15/2011 - 09:11 | 1672785 Gandalf6900
Gandalf6900's picture

AND SO IT TRULY BEGINS...the trifecta!!!

Thu, 09/15/2011 - 09:12 | 1672786 LookingWithAmazement
LookingWithAmazement's picture

A 2 in 1: both Eurobanks saved and QE3 commited. Bernanke is LOL. Crisis over. Merry Christmas.

Thu, 09/15/2011 - 09:14 | 1672806 falak pema
falak pema's picture

what do you put in your xmas pudding? 

Thu, 09/15/2011 - 09:18 | 1672829 LookingWithAmazement
LookingWithAmazement's picture


Thu, 09/15/2011 - 09:31 | 1672867 falak pema
falak pema's picture

its funny this perception of reality : boring vs exciting. Its like ginger n spice, turns some on; not others.

Ever heard of good money chasing bad money; pouring precious water down a burst pipe, letting you wife buy on the mall with five credit cards? I could go on... But I like roast turkey just like the next guy.

Thu, 09/15/2011 - 09:51 | 1673037 LookingWithAmazement
LookingWithAmazement's picture

Be honest: we were promised a major collapse because of the recent dollarfundingcrisis in the eurozone. And now Bennie Beard prints the bucks free! French banking stocks are spiking big time! The doomers better seek another job. Believe me, we're never to get rid of this system, the banksters rule. But merry Christmas, I think further than today. Boring world we live in.

Thu, 09/15/2011 - 10:30 | 1673210 taraxias
taraxias's picture

Finally!!! How many posts of yours do I have to scroll through to read "Boring world we live in"..........PMSL

Tell me, does your wife know you pimp yourself for a living?

Thu, 09/15/2011 - 10:47 | 1673299 LookingWithAmazement
LookingWithAmazement's picture

A pimp serves a useful task. But, the funding war is over, euro saved. Merry you-know. Boring world we live in.

Thu, 09/15/2011 - 12:37 | 1673759 Fiat2Zero
Fiat2Zero's picture

This is emergency short term lending at low rates, coordinated globally. It signals big trouble.

On the Titanic, a fire breaks out due to a large explosion below deck. Captain and crew put out the fire and the cold, bored (boring), passengers give a courtesy clap and believe all is well. No one thinks to ask about the explosion or the steadily increasing tilt of the deck.

The show continues, you will have your tragedy served European style, in 9 courses. Bon Apetit!

Thu, 09/15/2011 - 09:27 | 1672894 Bicycle Repairman
Bicycle Repairman's picture

and a happy new year?

Thu, 09/15/2011 - 10:57 | 1673361 LookingWithAmazement
LookingWithAmazement's picture

Sure. With the euro, like it or not. I wish gold as money, but alas, it's not in. Happy 2012.

Thu, 09/15/2011 - 09:12 | 1672791 falak pema
falak pema's picture

A broken market run by criminal private sector Oligarchs, a central banking cartel and its dictatorship, Politicians that run round in agitated circles like clock work orange and people that drown by numbers. George Orwell should be a proud son of Nostradamus in his resting place.

Thu, 09/15/2011 - 09:13 | 1672792 youngandhealthy
youngandhealthy's picture

If US Money Market Funds cant make it....the CBs can.

F..k US MM funds and their over paid fat lazy cats.

Thu, 09/15/2011 - 09:12 | 1672795 buzzsaw99
buzzsaw99's picture

Three months, just long enough to get their 2011 bonuses.

Thu, 09/15/2011 - 09:12 | 1672796 TheEmperor
TheEmperor's picture

Jedi Master Qui-gon Jin: We can pay you with Republic credits

Junk trader Waapo: Republic credits are no good here...I need money

JM QgJ: <waving his hand, using the force to sway Waapo>

JtW: What, you think your some kind of Jedi?!  Mind tricks dont work on me, only money!

Thu, 09/15/2011 - 09:12 | 1672799 EventHorizon
EventHorizon's picture

QE for all! Could not be more bullish for gold.

Thu, 09/15/2011 - 09:13 | 1672800 D.O.D.
D.O.D.'s picture

Hmmm, sounds like a Greek default, and everything else will be bought... Greece = Lehman... One must fall...

Thu, 09/15/2011 - 09:13 | 1672801 Apocalicious
Apocalicious's picture

I'm having trouble paying my bills. Can I get some dollar liquidity provisions against some crappy collateral I can post? I have comic books? Baseball cards? I'd like to buy a new mansion, please...

Thu, 09/15/2011 - 09:15 | 1672813 youngandhealthy
youngandhealthy's picture

U messin up liquidity and solvency ol chap

Thu, 09/15/2011 - 09:17 | 1672824 buzzsaw99
buzzsaw99's picture

you have baseball cards? lulz

Thu, 09/15/2011 - 09:52 | 1673046 MolotovCockhead
MolotovCockhead's picture're very civil! You use comic books and baseball cards, the Banksters use used condoms after screwing all the peasants!!

Thu, 09/15/2011 - 09:14 | 1672803 SofaPapa
SofaPapa's picture

That they are even attempting this, given the half-life these interventions have...  We are rapidly approaching the endgame.

Thu, 09/15/2011 - 09:22 | 1672850 kito
kito's picture

my friend gold disagrees

Thu, 09/15/2011 - 09:29 | 1672912 Bicycle Repairman
Bicycle Repairman's picture

So gold is finished?  Your suggestion is what, exactly?

Thu, 09/15/2011 - 09:37 | 1672959 kito
kito's picture

that the endgame is not near. 

Thu, 09/15/2011 - 09:46 | 1673008 Bicycle Repairman
Bicycle Repairman's picture

So another year or two?

Thu, 09/15/2011 - 09:14 | 1672804 docj
docj's picture

They have precisely one tool at their disposal and they're going to use it until it breaks.

Thu, 09/15/2011 - 09:37 | 1672842 Praetor
Praetor's picture

Well everyone says that Marc Faber is a terminator from the future to warn humanity....Bernanke will print and print and print.

Thu, 09/15/2011 - 09:14 | 1672808 dax
dax's picture

there is so mush short in T1 uni especially on frenchies run people run!!!

Thu, 09/15/2011 - 09:15 | 1672815 scratch_and_sniff
scratch_and_sniff's picture

It had to be done...

Thu, 09/15/2011 - 09:16 | 1672818 Fips_OnTheSpot
Fips_OnTheSpot's picture


Thu, 09/15/2011 - 09:17 | 1672821 Migrated Bird
Migrated Bird's picture

Can someone please explain what this means in layman's terms?

Thu, 09/15/2011 - 09:19 | 1672838 buzzsaw99
buzzsaw99's picture

if you are in the usa it means bend over and spread 'em.

Thu, 09/15/2011 - 09:22 | 1672853 Migrated Bird
Migrated Bird's picture

fair enough.. when was the last time people were told to bend over?

Thu, 09/15/2011 - 09:29 | 1672909 SheepDog-One
SheepDog-One's picture

Yesterday? And every day before that?

Thu, 09/15/2011 - 09:33 | 1672932 buzzsaw99
buzzsaw99's picture

You correctly phrased your answers in the form of a question. Now, on to Double Jeopardy.

Thu, 09/15/2011 - 12:04 | 1673654 Amish Hacker
Amish Hacker's picture

I'll take "Money For Nothing and Chicks For Free" for $500, please, Alex.

Thu, 09/15/2011 - 09:36 | 1672954 Village Smithy
Village Smithy's picture

I'll take a shot at that. It means that central banks will be printing money and loaning it to needy banks who will pledge collateral of dubious value. In the short term all the holes get plugged. In the long term the price of everything will be going up, except your wages. Stagflation.

Thu, 09/15/2011 - 09:49 | 1673025 Migrated Bird
Migrated Bird's picture


if I understanding is correct

European banks had trouble getting access to USD funds as no one would trust them. So all the cnetral banks decided that they would print the needed money and give it to them in exchange for Greek bonds and pieces of worthless papers. Am I right?

The contrarian view to hyperinflation that I have read is that the money never makes it to circulation since it is going to sit with the banks and so that would not cause any inflation. Is the correct?

Thu, 09/15/2011 - 10:49 | 1673318 FISD
FISD's picture

Or they'll pledge their available gold which the Central Banks will gladly accept when they default.


(note) unlimited amount against pooled collateral.


Throw in all your gold and silver and we'll give you a nice little loan!

Thu, 09/15/2011 - 12:48 | 1673790 Fiat2Zero
Fiat2Zero's picture

No one will lend European banks money short term because they don't trust them (banks don't trust banks). To stem this disaster, they have a coordinated global effort to provide liquidity using the wink wink approach (you give me you're collateral and I'll pretend it's worth what you say it is). Repos are supposed to be over collateralized but something tells me the collateral is "mark to unicorn."

Surreptitious swap line borrowing at the Fed was causing markets to worry, so they've expanded the program radically and announced all is well, business as usual, nothing to see here.

Markets will be fooled by the big, public action.

They are putting as many ad hoc things out there to buffer Greece's imminent default (when Tim Geitner says "no chance" it means in 3 weeks).

It is akin to the crew of the Titanic tossing anything not nailed down into the ocean, in the hopes that the flotsam may provide floatations once we're in the surf.

Thu, 09/15/2011 - 09:42 | 1672822 reader2010
reader2010's picture

The Banking Cartel is in full-speed mode to further increase levels of agony for everyone else unless its demand for full control can be granted. 

Thu, 09/15/2011 - 09:17 | 1672826 JailBank
JailBank's picture

With gold on the way down, is it time to stock up?

Thu, 09/15/2011 - 09:18 | 1672833 bullet
bullet's picture

kind of explains YESTERDAYS 50 handle straight up move in the s&p.


Thu, 09/15/2011 - 09:19 | 1672836 pamriallc
pamriallc's picture

the system doesn't collapse when all of the participants on the planet (in charge of that system) have agreed to save it.

Thu, 09/15/2011 - 09:31 | 1672924 Bicycle Repairman
Bicycle Repairman's picture

So all of the underwater mortgages have now floated to the surface and sovereign budgets are now all in balance?  Sweet.

Thu, 09/15/2011 - 09:52 | 1673045 NeoCapitalist
NeoCapitalist's picture

Tell me how this saves the system.. the way I see it this solves nothing, just makes prices higher, destroys wealth and savings, and brings higher and higher inflation.  This just delays the collapse and makes it more painful.  However when hyperinflaion comes, no one can stop that, and it's coming.

Thu, 09/15/2011 - 09:21 | 1672840 Sean7k
Sean7k's picture

Fortress Central Banking has risen from the ocean. You may cast your waves of credit, your lack of liquidity, ships filled with the screams of the poor.  We will absorb them with paper, cancel them with key strokes  and the cries will be quieted and cancelled out. We are the beast of the apocalypse, the four horsemen work at our behest, all shall bow before us in our might.


Hey guys! Did someone remember to bring the gold?

Thu, 09/15/2011 - 09:20 | 1672841 kito
kito's picture

is this a pseudo qe?

Thu, 09/15/2011 - 09:21 | 1672843 long dong silver
long dong silver's picture

futures are up ...BUY BUY BUY...more liquidity, bitchez


Thu, 09/15/2011 - 09:22 | 1672851 Mae Kadoodie
Mae Kadoodie's picture

Fade the Bazooka.

Thu, 09/15/2011 - 09:22 | 1672852 tocointhephrase
tocointhephrase's picture

Just another short term fix i.e high on paper!

Thu, 09/15/2011 - 09:24 | 1672854 scatterbrains
scatterbrains's picture

I wouldn't be surprised if our masters take the market down to new lows by a small amount just to throw everyone off the trail before we rocket up into xmas/new year

Thu, 09/15/2011 - 09:22 | 1672857 scratch_and_sniff
scratch_and_sniff's picture

Price that in motherfuckers!!!

Thu, 09/15/2011 - 09:22 | 1672859 Dr. Richard Head
Dr. Richard Head's picture

If I shit in a box would that be considered elligble collateral? 

Thu, 09/15/2011 - 09:30 | 1672917 Silverhog
Silverhog's picture

I think banks will only accept shit in a Dixie Cup now.

Thu, 09/15/2011 - 09:23 | 1672861 americanspirit
americanspirit's picture

Circular firing squad assembled and ready sir.

Very good - on my count. One, Two...

Thu, 09/15/2011 - 09:24 | 1672871 anynonmous
Thu, 09/15/2011 - 09:25 | 1672878 tocointhephrase
tocointhephrase's picture

this puts the Z into Quantitative EaZing (Bitchez)

Thu, 09/15/2011 - 09:25 | 1672879 Josephine29
Josephine29's picture

For those unsure of what these things are here is a guide for you.


Thu, 09/15/2011 - 09:52 | 1673048 gmrpeabody
gmrpeabody's picture

Much grass!

Thu, 09/15/2011 - 09:25 | 1672880 NetDamage
NetDamage's picture

One Central Bank to rule them all?

Thu, 09/15/2011 - 09:47 | 1673014 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Yes!  One worldwide central bank is the end game.  One worldwide police state then worldwide eugenics.  These are loving people!

Thu, 09/15/2011 - 09:25 | 1672881 Johnny Lawrence
Johnny Lawrence's picture

So mechanically how does this work?  Digital money creation which is then lent to the banks?  Is their additional government debt created?

Thu, 09/15/2011 - 09:30 | 1672901 PaperBear
PaperBear's picture

European, USA, England, Japan, Swiss ? – oh dear, oh dear.

You will look back on todays affordable prices for the things like food and energy with fondness because they are all going to go up in the months and years to come and when everyone cannot afford to eat or travel or keep warm in the winter then these guys will say ‘we can make things better, you just have to give us more power.’

Thu, 09/15/2011 - 09:32 | 1672927 SheepDog-One
SheepDog-One's picture

Thats right, well as long as the richest top .001% are made wealthier, well frankly...fuck the rest of you!

Thu, 09/15/2011 - 09:29 | 1672907 lizzy36
lizzy36's picture

Remember the last time their was a rogue trader in euroland issue. Bernanke cut rate 75bp. QE3 the euro edition this time.


Thu, 09/15/2011 - 09:29 | 1672911 Gandalf6900
Gandalf6900's picture

this is so disappointing, and to say I knew it makes me even more disappointed

Thu, 09/15/2011 - 09:31 | 1672919 SheepDog-One
SheepDog-One's picture

I felt with Geithner flying off to Europe something really stupid was about to happen.

Thu, 09/15/2011 - 11:44 | 1673039 rufusbird
rufusbird's picture

Stealt stupidity! I was looking to see if someone made the connection!  Funny no one has commented in the media. Don't hold your breath for an in depth analysis on the nightly business report. Now we know why the euro turned a few days ago...

Thu, 09/15/2011 - 09:34 | 1672943 John Law Lives
John Law Lives's picture

Wow!  Major global economies are not producing enough good jobs in concert with ORGANIC economic growth, so central banks simply create more currency and put it into circulation.  What a concept.  I wonder when the great R-E-S-E-T button will get pressed and the whole thing starts over.

Thu, 09/15/2011 - 09:36 | 1672951 no life
no life's picture

Central planning and such as..

Thu, 09/15/2011 - 09:45 | 1673000 SheepDog-One
SheepDog-One's picture

They have no maps, the U.S. Americans.

Thu, 09/15/2011 - 09:50 | 1673029 NeoCapitalist
NeoCapitalist's picture

Bernanke is no American.. hes a Zionist Central banker.. dont try and pin this on all of America.. we have nothing to do with this...

Thu, 09/15/2011 - 09:37 | 1672958 Iriestx
Iriestx's picture

So the entire first world is going to go absolutely fucking apeshit with the printing, at the same time.  That's a brilliant idea.

Thu, 09/15/2011 - 09:37 | 1672960 Sig Sauer
Sig Sauer's picture

i can only imagine what passes as "elligible collateral" nowadays. 

Thu, 09/15/2011 - 09:47 | 1673013 NeoCapitalist
NeoCapitalist's picture

Well we now know why the market has been rallying and found this temporary bottom when we all know the market belongs MUCH MUCH lower... this market is so damn rigged that it boggles my mind.  Equally if not more mind boggling is the fact that the US Fed is now, once again, bailing out the entire fucking world, destroying the middle class and the value of the dollar, to satisfy their wishes of a NWO.  The thing that I am just unable to comprehend with this, is how 1% of the population seems to understand the game that these bankers are playing and what it actually means.. can someone help me out with this?  How is it possible that the vast majority of people have no damn clue their wealth and savings are being stolen by devaluation and that an epic world depression is coming?


Thu, 09/15/2011 - 09:56 | 1673069 Enkidu78
Enkidu78's picture

People just don't seem to care about anything anymore.  Governments have done well in the West to dumb everyone down.  Got to be the Fluoride in the water or something.....

Thu, 09/15/2011 - 09:51 | 1673042 baseball13
baseball13's picture

History repeats itself:

- bread & circuses

- financial armegeddon

- government controls (martial law)

- revolution!

> see you on the other side...

Thu, 09/15/2011 - 09:52 | 1673044 Chicago bear
Chicago bear's picture

Perhaps we need more rogue traders. Perhaps he was believing the market reflected reality and did not get the memo for the handlers.

Treason in the US if you ask me. Who approved this joint action with US tender?

Thu, 09/15/2011 - 09:55 | 1673065 Dreadker
Dreadker's picture

He didn't lose anything... because that 2 billion is backed by nothing...

Thu, 09/15/2011 - 09:54 | 1673056 Dreadker
Dreadker's picture

Well... when my future kids (if i'm ever sadistic enough to bring some into this fucked up world) ask what happened i'm just going to print out zerohedges blog and say 'go read that'...




I'm glad i have wine at home... I'm going to enjoy a celebratory bottle on the edge of the cliff that is global hyperinflation... this is the end of the beginning of the end...

Thu, 09/15/2011 - 09:54 | 1673058 Pangasius
Pangasius's picture

Are we at QE-infinity yet?


Thu, 09/15/2011 - 09:56 | 1673067 JW n FL
JW n FL's picture

Uploaded by on Sep 15, 2011

This week Max Keiser and co-host, Stacy Herbert, discuss a tweet describing them as the Eldridge and Kathleen Cleaver of the financial war. With that in mind, they look at the modern equivalents to the carpet bombing, Agent Orange and Saigon prostitutes of the Vietnam war and observe that Christine Lagarde has 'loved Arab Spring nations a long time.' In the second half of the show Max talks to Zeus Yiamouyiannis of about the debt jubilee and Crash JP Morgan, Buy Silver.

Thu, 09/15/2011 - 09:56 | 1673068 bankruptcylawyer
bankruptcylawyer's picture

holy shit....wait a second. if you were going to take the dollar and devalue it 2 to 1. 


wouldn't it be a great , grreat idea to buy europes' assets ...even the SHIT ones, RIGHT BEFORE you devalue?

i mean in 1 year....we'll have their crap securities and they'll have 50 cents on the amount paid. ---but we paid them as if they were getting fair value.


of course, you could just say we'll accomplish this by a year from now with qe4 qe5 qex.....there isn't a need for an overnight devaluation as they do it in 'less' developed countries with financial problems. 


i'm just saying this swap looks like groundwork for qe4 by april or next summer....before the election.


Thu, 09/15/2011 - 10:02 | 1673096 FederalReserveB...
FederalReserveBankofTerror's picture

Perfect!!! According To Master Plan! All Life Boats Have Been Secured To The Titanic Captain and the Central Banking Rescue Ships Have All Tied Off A Line!

Contagion!!! Bitchez!!!

When we move to ponzi acceptance (capitulation) the massive correction occurs!!!

May God Help You! 


Thu, 09/15/2011 - 10:24 | 1673181 Awakened Sheeple
Awakened Sheeple's picture

So who bails out BAC? Oh wait I'm seeing a pattern here..

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