• Gold Money
    05/26/2016 - 14:27
    Here’s a question that might have you pondering: Is gold a commodity? More importantly, are we doing a disservice to the gold industry by calling gold a commodity? These may sound like silly...

Guest Post: The Fed Wants You To Beg For QE3

Tyler Durden's picture

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 09/27/2011 - 07:22 | 1714191 mikmid
mikmid's picture

I ain't begging but know it's coming because the banks will beg.

Tue, 09/27/2011 - 07:28 | 1714211 bentaxle
bentaxle's picture

Not even if he puts tits on it fer yuh!?

Tue, 09/27/2011 - 08:04 | 1714213 GetZeeGold
GetZeeGold's picture


Wasn't that what the twist was setting up....and smashing the commodities?

"Metals then, of course, make an
astonishing comeback despite all odds, and these men disappear again
into their respective hovels."

Gold's back........and you're gonna be in trouble.



Tue, 09/27/2011 - 08:10 | 1714319 SheepDog-One
SheepDog-One's picture

Beg for QE3 due to WHAT DOW red??

Tue, 09/27/2011 - 08:16 | 1714338 GetZeeGold
GetZeeGold's picture


.....and thus our point is made sheep.


Tue, 09/27/2011 - 07:23 | 1714193 drwillia
Tue, 09/27/2011 - 07:24 | 1714196 Debtless
Debtless's picture

Fuck the Fed. And fuck those who suckle its teet for a living.

Tue, 09/27/2011 - 11:51 | 1715057 Andy_Jackson_Jihad
Andy_Jackson_Jihad's picture

You must contstruct additional ovens   /starcraft voice

Tue, 09/27/2011 - 07:25 | 1714200 turicum
turicum's picture

I thought QE3 is ok with most of ZH readers???

Tue, 09/27/2011 - 08:03 | 1714299 Freewheelin Franklin
Freewheelin Franklin's picture

Well, if it helps bring a quicker end to this "Ponzi" system, it's OK by me.

Tue, 09/27/2011 - 10:38 | 1714814 BigJim
BigJim's picture

We (mostly) hate QE, because it represents the ability of our elites to magically pick our pockets from afar..

However, as we've hedged against it, when it doesn't happen, our hedges drop in purchasing power. And if those hedges are subject to expiration (options, for instance) then the loss of purchasing power is permanent.

Hence the repeated calls to make your hedges in physical, not paper.

Tue, 09/27/2011 - 07:28 | 1714210 Mr_Wonderful
Mr_Wonderful's picture

The Gigantic October Stock Market Heist

is being set up.

There are now over 2 million October open put options against the S&P 500. Looks like this will among History´s  greatest transfers of wealth.

Tue, 09/27/2011 - 07:47 | 1714259 GetZeeGold
GetZeeGold's picture


2 million.................and 1 MFer's



Tue, 09/27/2011 - 08:11 | 1714324 SheepDog-One
SheepDog-One's picture

The Bernank put...its the FED short the market.

Tue, 09/27/2011 - 08:17 | 1714342 GetZeeGold
GetZeeGold's picture


Could be the BIS actually.



Tue, 09/27/2011 - 07:31 | 1714216 jjsilver
jjsilver's picture

How about we abolish them, then arrest them and put them on trial for their crimes, which I believe will happen eventually.

Tue, 09/27/2011 - 08:05 | 1714306 buzzsaw99
buzzsaw99's picture

your comment has been logged for further evaluation by the geek squad.

Tue, 09/27/2011 - 11:38 | 1715024 DaveyJones
DaveyJones's picture

in order to arrest them, we must first legitimize the arm which does the arresting. The bankers run this government and most others. Our founders warned us.   

Tue, 09/27/2011 - 07:32 | 1714217 bigwavedave
bigwavedave's picture

"Obviously, QE1 and QE2 accomplished nothing. The bailouts and TARP accomplished nothing. The ongoing U.S. bailouts of the EU at the American people’s expense continue to accomplish nothing."


Crap Alert: These 'programs' gave the status quo TIME to plan how they were to protect their money and spend yours.


"Though most Americans now understand the basics of bailouts and quantitative easing, including many of the risks"


Crap Alert: I did not read past this point. And nor should you.

Tue, 09/27/2011 - 08:13 | 1714327 SheepDog-One
SheepDog-One's picture

I agree, this article is pretty much nonsense. Talk about how we'll BEG for QE3 due to so much pain in the DOW, I see it up +200 in premarket....I keep asking 'wheres the drop'?

Tue, 09/27/2011 - 08:37 | 1714409 WonderDawg
WonderDawg's picture

So many contradictions in this article, wish I had time to break it down just for kicks.

Tue, 09/27/2011 - 07:32 | 1714218 Mitch Comestein
Mitch Comestein's picture

Please bitchez....I want some more.  (Oliver Twist...the Bankster)

Tue, 09/27/2011 - 07:42 | 1714244 GetZeeGold
GetZeeGold's picture


Never before has a boy wanted more.


Tue, 09/27/2011 - 07:32 | 1714219 Soul Train
Soul Train's picture

yes, exactly right/

this is why any equity market rally is just dust in the wind.

fact is the Fed needs a major selloff to justify it politically.

so if you are long equities, you are now warned.



Tue, 09/27/2011 - 07:49 | 1714265 duo
duo's picture

How many bear traps will they spring before they let the market free-fall?  Looks like another short squeeze this morning.

Tue, 09/27/2011 - 08:16 | 1714335 SheepDog-One
SheepDog-One's picture

So when will the sell-off be? Certainly 'not today', as usual. 

I've been hearing we're getting a big market plunge before FOMC 1, then Jackson Hole, then FOMC2, never does the DOW drop more than 200 without it being immediately recovered!

Carrot and Stick, while everyone waits for this big market plunge theres the DOW +200 in pre-market...I'm not falling for this scam.

Tue, 09/27/2011 - 08:41 | 1714424 WonderDawg
WonderDawg's picture

Well, you could say the sell off started at DOW 12,800ish.

Tue, 09/27/2011 - 08:55 | 1714463 SheepDog-One
SheepDog-One's picture

Yep, since DOW 12,800 or so there has been no panic at all in the public. So I dont know how this article figures the NEXT time the market drops then we'll have the required chaos and begging and pleading for QE3. In fact, the public is now totaly conditioned to expect market drops to be immediately recovered next trading session. I dont see them 'setting up fear and panic event' at all myself.

Tue, 09/27/2011 - 09:12 | 1714534 WonderDawg
WonderDawg's picture

I think the panic is coming, but hope doesn't die easily. There is still some hope in the markets, but it's fluctuating with doubt. When doubt takes over, it will fluctuate with fear, and we'll start seeing more persistent sell-offs with less enthusiastic rallies. Panic follows after all hope has been extinguished.

Tue, 09/27/2011 - 07:39 | 1714222 SWRichmond
SWRichmond's picture

I've been saying this for almost a year.

Always remember: if you adopt the most cynical viewpoint, everything makes perfect sense.

Tue, 09/27/2011 - 08:08 | 1714314 Snidley Whipsnae
Snidley Whipsnae's picture

I believe a read of 'The Prince' will go a long way toward explaining Wall St... and your comment about "adopting the most cynical viewpoint"...

"Machiavellianism is also a term that some social and personality psychologists use to describe a person's tendency to deceive and manipulate other people for their personal gain. In the 1960s, Richard Christie and Florence L. Geis developed a test for measuring a person's level of Machiavellianism. This eventually became the MACH-IV test, a twenty-statement personality survey that is now the standard self-assessment tool of Machiavellianism. People scoring above 60 out of 100 on the MACH-IV are considered high Machs; that is, they endorsed statements such as, "Never tell anyone the real reason you did something unless it is useful to do so," (No. 1) but not ones like, "Most people are basically good and kind" (No. 4). People scoring below 60 out of 100 on the MACH-IV are considered low Machs; they tend to believe, "There is no excuse for lying to someone else," (No. 7) and, "Most people who get ahead in the world lead clean, moral lives" (No. 11). Christie, Geis, and Geis's graduate assistant David Berger went on to perform a series of studies that provided experimental verification for the notion of Machiavellianism."

...above from WIKI...

Tue, 09/27/2011 - 07:35 | 1714223 PulauHantu29
PulauHantu29's picture

It's obvious the Fed must print more ...deflation is very destructive and a little inflation is better...so i read....

Tue, 09/27/2011 - 08:11 | 1714323 Snidley Whipsnae
Snidley Whipsnae's picture

"deflation is very destructive"

Yes... destructive for some, constructive for some...but very destructive for fractional reserve banking.

Tue, 09/27/2011 - 08:18 | 1714347 SheepDog-One
SheepDog-One's picture

I keep hearing about the 'big market drop' but a market drop never comes. Yes I know 'theyll make me BEG for a QE3...'Please sir, just a bit more porridge'....OK wheres the market drop? DOW futures up +200. 

Tue, 09/27/2011 - 07:40 | 1714235 Lotionboy
Lotionboy's picture

I am begging for QE....Please Benny...Make It Happen :)...My gold will thank you 

Tue, 09/27/2011 - 07:44 | 1714241 gmak
gmak's picture
  1. Prices move before wages. Therefore deflation is beneficial to the working class - in spite of appearances. Inflation is bad for them. The reverse is true for those who have all the wealth.
  2. I don't get the contention in the article that the fed has tried to keep DXY in the green. It seems to me that they have been trying to debase the USD in a race to the bottom (currency wars) in order to prime economic growth on the backs of others. In doing so, they punish savers and reward debtors. Bernanke: Go back to school and study the law of unintended consequences, you charlatan.
  3. QE 3, and all other quasi-printing may push up the price of gold - but not it's value. Ultimately, it will buy the same quantity of things as before. It is a fools' game to think that owning gold will generate wealth. It will only protect purchasing power over the long run. A crisis may push the value up along with the price - but in a crisis, who will sell gold to hold fiat? No one. That's why the increase in value is tentative and temporary: because it would mean a shift from gold to some other asset during a crisis.
Tue, 09/27/2011 - 07:53 | 1714277 Bobbyrib
Bobbyrib's picture

While I did give you a green arrow, I don't agree with all of part 3. People holding gold will trade it for food, water, and shelter when they need it. Why would you perpetually hold an item, because it has value? Eventually gold bugs will spend their gold, but the key is to wait for as long as possible to spend your gold (unless it becomes a bubble).

Tue, 09/27/2011 - 08:18 | 1714336 gmak
gmak's picture

The implication of point 3 is what you are saying "..the key is to wait for as long as possibl to spend your gold...". The underlying assumption in that statement, from your point of view, appears to be that the purchasing power of gold will continue to go up. I am suggesting that it is a rainbow, that when gold is at its maximum purchasing power, fear will also be at its maximum and people will continue to hold the gold. Only when fear abates, and the purchasing power of gold declines, will they feel comfortable "selling" iit. 

I do not believe the people holding gold will be able to trade it for food, water and shelter. As many have said: "If conditions reach such that there is only gold for exchange, then you will probably need lead instead". At the present time, gold is not generally considered money. It requires an exchange for paper money which can then be re-exchanged for goods, services, or assets. For gold to become money, it would require the breakdown of the GLOBAL currency system in place, with no substitute. My opinion is that, in that case, lawlessness would rule, and lead would triumph over gold for securing food, water, and shelter.


Tue, 09/27/2011 - 08:50 | 1714453 GetZeeGold
GetZeeGold's picture


Yeah.....got the food and water before I got the gold.

It's called planning.


Gold...you can't eat it...good...I wasn't planning on it.



Tue, 09/27/2011 - 10:22 | 1714777 Smiddywesson
Smiddywesson's picture

QE 3, and all other quasi-printing may push up the price of gold - but not it's value. Ultimately, it will buy the same quantity of things as before. It is a fools' game to think that owning gold will generate wealth. It will only protect purchasing power over the long run.

Academic nonsense.  Yes, over the long run, gold fluctuates in value less than any other thing because it is our measuring stick for value, but it's all still supply and demand.  The availability of gold, the number of people on the Earth who want it, the fear factor, and the availability of goods, fluctuates with time so how could gold maintain a specific value over time?  I will concede that when we widen out our frame of referrence to centuries things average out, and your statement that gold appears to not change in referrence to what it can buy becomes generally true, but it is still a generalization.   More importantly, it is irrelevant.  I don't care about the cost of eggs during biblical times.  When we shorten the frame of referrence to time periods that are relevant to human beings, such as years, or even decades, gold fluctuates in value a great deal, and all of that fluctuation is not due to currency debasement.  The argument that gold doesn't fluctuate in value, that everything else fluctuates in value is a poor argument against gold speculation because gold is measured in what it can buy.  Except to an academic, it's irrelevant which side of the trade is moving in value and which is stationary, you win or lose value based upon which side of the trade you are positioned.       

So in the classroom, yes, gold maintains it value and is unsuitable to generate wealth, but in the real world, it's all about timing, just like everything else.  A blanket statement that gold doesn't generate wealth is irrelevant.  Without something else, like proper timing, gold doesn't generate wealth, but we could say that about everything, right?  Taleb warns about this when he discusses taking an academic argument  into the real world of Extremistan. 

Tue, 09/27/2011 - 07:42 | 1714243 GCT
GCT's picture

Roflmao go ask a person what QE is and they will look at you and shrug.  My take is they are planning to scare the hell out of the sheeple and come riding in on their horse with more QE to save them and the sheeple will bow and praise them.  All apart of the psy-ops from the bankers and MSM.  They are just waiting for everyone to get their quarterly 401k print out with all those losses.

Tue, 09/27/2011 - 07:58 | 1714249 anynonmous
anynonmous's picture

ON bloomberg radio - El Erian as bullish (realitve to his nomral caution) as I have ever heard him


(and appears to be openly shilling for Obama with statements like "the polliticians are starting to get it" ; Obama in his speech made a good start in setting a vision for America" )


Watch for El Erian to land in Washington


(now that the Bloomberg paywall has been removed this interview will be posted later today)

Tue, 09/27/2011 - 07:47 | 1714255 Mr_Wonderful
Mr_Wonderful's picture

The market is being primed for a big October sell-off, there´s no doubt about it.

Maybe it´ll be Friday the 7th (flashback to 10/7/2008?) but that would probably be too obvious. In any case something very big is very likely to happen in the first two weeks of October prompting a market crash. Could be a major terrorist attack in the U.S. or Europe. We shall see.

Tue, 09/27/2011 - 07:56 | 1714283 Abitdodgie
Abitdodgie's picture

My guess is October 16th or November 9th

Tue, 09/27/2011 - 07:46 | 1714257 GeneMarchbanks
GeneMarchbanks's picture

This is gettin' kinky...

Tue, 09/27/2011 - 07:48 | 1714264 GetZeeGold
GetZeeGold's picture


Kinky is good..........


Tue, 09/27/2011 - 07:51 | 1714266 I am a Man I am...
I am a Man I am Forty's picture

the fed is worried they are going to get stuck with the bill

Tue, 09/27/2011 - 07:53 | 1714274 GetZeeGold
GetZeeGold's picture


Dude......it's a blank check.......fully signed.

How many zeros do you want appended?


Tue, 09/27/2011 - 08:21 | 1714358 SheepDog-One
SheepDog-One's picture

Its not 2009 anymore, as Ive been saying for months on here against headwinds I do not believe QE3 is coming at all, there will be no sizeable market drop to 'panic everyone' because theyve 'cried wolf' already too many times and people are immune to it all since markets have been rescued WITHOUT QE3 so many times. 

We've soon the DOW drop -400, only to be recovered within 2 trading sessions. No QE3 ever, sorry.

Tue, 09/27/2011 - 07:54 | 1714268 doomz78
doomz78's picture

must be annoying to central bankers how gold and silver are just not dying.  Gold 1670 as i write this.. silver is above 33 again.  I say bring QE3 on.  let's shower each other with cheap money.  0% interest rates...weeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee.  To all my banker friends and the Dow Jones I shower you with  red Monopoly bucks................ And I wonder where this super european protective tarp will come from?  oh Ben?? Ben.  Where are you our saviour?  Ben?  I can't see you. 

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