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Guest Post: Why QE3 Won't Help "Average Joe"

Tyler Durden's picture




 

Submitted by Lance Robert of Street Talk Advisors

Why QE3 Won't Help "Average Joe"

qe-stocks-yields-011212Are the markets already front running a potential announcement of a third round of Quantitative Easing (QE 3)?   Maybe so.  We had expected QE3 at the end of last summer as the economy weakened substantially from the impact of the Japanese earthquake/debt ceiling debate/Eurozone crisis trifecta.  However, with political pressures running high due to the raging battle in Congress raising the debt ceiling there was little support from the public for further intervention.  Furthermore, with inflation, as measured by CPI, already outside of the Fed's comfort zone, the Fed opted to institute "Operation Twist" (O.T.) instead. 

With the Euro-Crisis on the broiler, another debt ceiling debate approaching, the U.S. economy struggling along as Europe slips into a recession and corporate earnings being revised down there are plenty of reasons for stocks to decline in price.  Yet, they have continued to inch up.  With short interest on stocks having plunged in recent weeks it certainly sounds like the markets are betting on something happening and soon.

qe-30yr-mortgagerates-011212Let's remember that the goal of both the QE programs and Operation Twist was to suppress interest rates on the longer end of the yield curve in a bet, which has failed to this point, to revive housing.  Those programs did, however, drive a speculative frenzy as money flooded into the financial markets.  As you can see by the chart above the actual implementation of QE1 and QE2 actually kept mortgage rates elevated as money flowed from bonds, suppressing prices and increasing yields, into stocks.   When QE was not in effect and there was no support for the stock market money flowed back into bonds suppressing yields.  The only effective program so far has been the most recent aberration of manipulation which has been dubbed "Operation Twist"

However, even after more than $2 Trillion of infusions into the system housing is still in the doldrums as it is plagued by problems other than just trying to get interest rates low enough to entice people to buy a home.  The housing market is still flooded with excess inventory and prices that are still higher than long term norms.  The massive shadow inventory of homes that are in delinquent status have yet to be dealt with and the plethora of lawsuits against the major banks for foreclosure fraud and misrepresentation have clogged the progress of dealing with the problems.  Furthermore, high unemployment, excess consumer debt and leverage and tighter lending standards are suppressing individuals ability to qualify for either refinancing or purchases of a home even if interest rates were at zero. 

case-shiller-20city-index-011212The importance of the housing market is not lost on the Fed and Ben Bernanke.  Bernanke recently underscored the importance of residential real estate, which represents 15% of the economy, in a study he sent to Congress last week, that said ending the slump is necessary for a broader recovery.  It now appears that the Fed is considering expanding their efforts to try and stimulate the moribund housing market as the study showed that Americans who might refinance and buy properties are getting shut out by stricter lending standards or avoiding transactions as values tumble amid mounting foreclosures.

Here are the stats.  Since the Fed started buying $1.25 trillion of mortgage bonds in January 2009, the value of U.S. housing has fallen 4.1 percent, and is down 32 percent from its 2006 peak, according to the S&P/Case-Shiller index.  Unfortunately, the massive backlog of delinquent properties that need to move through the foreclosure process is likely to suppress prices further.

cpi-fed-trapped-011212For "Average Joe" This Is A Losing Game

Currently, it appears as if the market is "front running" a third round of QE coming by March with the current estimate being roughly between another $300 to $750 billion in purchases.   While the markets will likely get some boost from the program it is unlikely to spur any real resurgence in activity in the housing market.  While this might be welcome news for jittery investors clamoring for Fed intervention to help boost market confidence another round of quantitative easing wouldn't be a panacea for the ailing U.S. economy. 

For starters, the global economic landscape is drastically different than it was when the Fed launched its second round of QE2.  Since then, a series of temporary shocks—a catastrophic earthquake in Japan, debt-ceiling drama in Washington, and the sovereign debt crises in the Euro-zone, coupled with more fundamental economic maladies—have rocked the global financial system to its core. Furthermore, the challenges policymakers face differ tremendously as well. Back in 2010, deflation was the crisis of the moment, with markets fearing an unavoidable downward spiral of lower prices, weak demand, and massive lay-offs.

The Fed now faces a much more important problem as it relates to the consumer and ultimately the economy - inflation.  Commodity based inflation has risen markedly during the last two infusions of QE.  With oil prices already in excess of $100 a barrel and food prices on the rise as well the risks to this game are heavily weighted against "Average Joe".  Additional increases in inflationary pressures from a QE program would likely push the economy back into recessionary territory.  In turn this would further impact consumer's incomes, which have been fairly stagnant over the last two years, as they find difficulty making ends meet by combating higher prices.

For an administration that has built itself upon the idea of creating "equality" for all Americans, while pointing the finger at Wall Street and blaming them for their increases in wealth, these programs continue to fuel that divide.   QE programs are great for Wall Street - however, for "Average Joe" it is a drain on their standard of living.

What I Think I Know

While I am not sure that the Fed has the political clearance to fire off another round of QE at this point, given the rise in inflationary pressures and recent ephemeral upticks in the economy, Bill Gross of Pimco apparently does.  According to my friend Tyler Durden at Zero Hedge:  "in December the fund [Pimco] doubled down on its QE3 all in bet, by 'borrowing' even more cash, or a record $78 billion, using the proceeds to buy even more MBS, as well as Treasuries, which hit a combined 31% of the TRF's holdings.  In other words, between MBS and USTs, Pimco holds a whopping 79% of total, mostly in very long duration exposure. In fact, this combination of long duration and pre-QE exposure has not been seen at PIMCO since late 2008, early 2009, meaning that as many banks have been suggesting, Gross is convinced that the Fed will announce if not outright QE3 this January, then at least intimate it is coming."

It appears that the markets are starting to come to the same conclusion given the recent "buy signal" that was issued last week.  While I am not "comfortable" with much of the underlying economic conditions the markets are clearly moving back into a positive trend - at least for now.  However, I wouldn't be "betting the farm" that QE3 will be a decisive win for the economy.

 

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Thu, 01/12/2012 - 22:27 | 2060432 km4
km4's picture

Jimi Hendrix - Hey Joe - YouTube http://bit.ly/z19ovs

Thu, 01/12/2012 - 22:48 | 2060464 LouisDega
LouisDega's picture

A classic act. Thank you

Thu, 01/12/2012 - 23:03 | 2060517 johnu1978
johnu1978's picture

Here's a good video of the depression in Northwestern Montana:

http://www.youtube.com/watch?v=tcSIZg4wlgo

 

Enjoy,
John

Fri, 01/13/2012 - 00:06 | 2060618 The Monkey
The Monkey's picture

Thanks for a super post Zero Hedge. Bottom-line the Fed has been sticking it to the man for decades. The argument now: "we must fight deflation". You let runaway asset inflation occur w/o including it in CPI for years (oh, I guess that's because RATES WERE DROPPING). Now that college tuition, gas and food went through the roof in 2011, IT'S THE PERFECT TIME TO HIT THE GAS.

FUCK YOU BERNANKE.

Fri, 01/13/2012 - 00:52 | 2060691 The Big Ching-aso
The Big Ching-aso's picture

 

 

At some point, say QE27, Joe Average won't have two pennies to rub together.  The poor OTOH are really gonna be fucked.

 

Fri, 01/13/2012 - 01:49 | 2060777 fourchan
fourchan's picture

in 1915 america kicked the tar baby that is the fed. now in 2012 we are tared and in the briar patch where

america the pragmatic will die along with dream of freedom and individual rights. the feds owners have won.

checkmate.

Mon, 01/16/2012 - 00:40 | 2067925 merizobeach
merizobeach's picture

QE was never intended to benefit the common citizen.  And now, even the name itself won't bring the desired effect, having been so vilified (here) and overdiscussed everywhere.  It'll still happen, as it hasn't really much stopped happening all along, but when the next head of hydra is raised, it again won't be called QE3.  Perhaps as Rickards has suggested, we will be treated to "Nominal GDP targeting".

Thu, 01/12/2012 - 23:52 | 2060589 BLOTTO
BLOTTO's picture

REALITY IS THEIR ILLUSION 

THEIR FICTION IS THE REALITY              

Thats why it wont work

 

hint: Harry Potter, occult, paganism, spells, numbers, gold, silver, owls, sacred geometry, *secrets*, killing, lies, revenge, death, symbols, astrology...

and all neatly laid out for you to see...see?

 

Thu, 01/12/2012 - 22:29 | 2060437 Ned Zeppelin
Ned Zeppelin's picture

Why QE3 Won't Help "Average Joe"

My guess, just off the cuff, is that it is not intended to do so. So why would you think it would? 

Thu, 01/12/2012 - 22:45 | 2060460 Bicycle Repairman
Bicycle Repairman's picture

Making "average Joe" pay for all of the financial damage is the point of everything the FED does.

Thu, 01/12/2012 - 22:52 | 2060495 nope-1004
nope-1004's picture

When did QE end?  Benocide has been debauching our currency ever since he became ChairAsshole.  WTF?  It's like there is some kind of statement y'all need to buy PM's?

The fucker has been stuffing banks both home and abroad weekly.  QE is on in full force, just it hasn't been "announced" and the fuckers hammer PM's to keep you numb.

This ship is going to snap soon, and it ain't gonna be from a QE announcement, it's going to be a "Oh, and BTW, we're 100% insolvent" announcement.

 

Thu, 01/12/2012 - 23:10 | 2060530 Gohn Galt
Gohn Galt's picture

Chairsatan swore to everything he is doing to get the Chair, especially never to deflate and keep inflation presses running.

Average Joe, I don't know how to help someone without commiting a felony.  The bureaucracy at the volunteer homeless shelters is unconscionable.  Harder for youths to be involved, insurance requirements and permits increased.

Oddly enough I hear there a lot of accounts out there that can be easily grazed for a nibbler. 

Be aware.

 

Fri, 01/13/2012 - 00:08 | 2060622 The Monkey
The Monkey's picture

Bernanke: "Tell Grandma to invest in high beta stocks and junk bonds."

Fri, 01/13/2012 - 00:44 | 2060684 Freddie
Freddie's picture

I think the saddest part is reading posts tonight and no one is posting Ron Paul 2012.  The evil f***ing media and TV want O versus Romney. 

I guess hoping for a miracle that the public might wake up is too much to ask for.

Ron Paul 2012

Fri, 01/13/2012 - 01:10 | 2060720 wandstrasse
wandstrasse's picture

..Benocide ... ChairAsshole.

I agree, he is, but I am also a bit tired of all this Bernanke-bashing. He is just one more puppet of the compound-growth-debt-fiat-Ponzi system which was installed a while ago by a small group of reverse Robin Hoods. Within the ranks of executive Ponzi puppets there is personnel much more disgusting than Bernanke.

Thu, 01/12/2012 - 22:59 | 2060511 DormRoom
DormRoom's picture

The best investment bet for the future: poverty.

The big banks are long worldwide poverty.  Goldman Sachs underwrites the call.

 

https://twitter.com/#!/gselevator

 

Thu, 01/12/2012 - 22:45 | 2060484 shinola
shinola's picture

I think you nailed it, Zed.

Thu, 01/12/2012 - 22:47 | 2060485 molecool
molecool's picture

Seriously - why even bother writing this article? QE1 didn't help Joe Sixpack and neither did QE2 - quite on the contrary. So even knowing nothing about the nature/structure of QE3 - the odds hint strongly at another blowjob for Wall Street, and another anal cleansing for Main Street.

Thu, 01/12/2012 - 23:04 | 2060518 centerline
centerline's picture

Beat me to it.  Ha ha.  But, at least there are stainless steel rats to prey upon the shenanigans that are to come.

Fri, 01/13/2012 - 01:13 | 2060726 Oh regional Indian
Oh regional Indian's picture

Stainless Steel Rats? That is a first CL, where from? 

The drone of the How and Why of it is now like white noise though. Joe Average, Joe Sixpack, QE, Banksters, Chairsatan, EU, panic, CDS, MBS, EndTheFed, manipulation........ on and on and on....

What is being done about it? Perhaps everyone is preparing in-wardly? That is why the only collective expressions out of here are for Beer and Gun gatherings?

Tylers, how about some action? Some satisfaction? The ZHfaction? Do-ers?

Call the collective into action? A ZH Changeling Fund? A ZH Micro-entrpreneurship fund? 

Anyone?

ori

Caveat emptor: /truth/

Fri, 01/13/2012 - 02:00 | 2060787 Maos Dog
Maos Dog's picture

Thanks centerline for that blast from the past! Time to dig out my copy of "Stainless steel rat is born"

Thu, 01/12/2012 - 23:01 | 2060514 centerline
centerline's picture

LOL. Unless of course the kindest thing that can be done is prolong the clusterfuck that is to come as a result. Which of course is a bit of a catch-22 in that every moment spent resisting the inevitable only makes the "correction" worse.

In just reading the title, I have already seen enough. My apologies to the author. I mean no disrespect towards your hard work. I promise to read it later!

Fri, 01/13/2012 - 00:37 | 2060671 SwingForce
SwingForce's picture

READ JEKYLL ISLAND gawdammit, if not: http://www.youtube.com/watch?v=KgUw6t3b6oE

Fri, 01/13/2012 - 01:53 | 2060779 fourchan
fourchan's picture

the creature has won, its game over for america.

Thu, 01/12/2012 - 22:29 | 2060438 JamesBond
JamesBond's picture

QE3 - Not this year.

Thu, 01/12/2012 - 23:32 | 2060559 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

QE has continued through various names such as POMO ops and OT2.  It's like that TARP and STIMULUS had names that weren't QE; they are all the same, just in diferent forms; each operating to float the dollar, the Tresurie, and the Fed.  This so the US/Europe oilgarchy keeps their foot in the door so when oil peaks they have established their New World Order.

Fri, 01/13/2012 - 00:15 | 2060633 The Monkey
The Monkey's picture

Don't fool yourself. Consider the recent jawboning about the housing market, even though they know damn well QE will increase nominal rates. The Fed is getting ready to monetize Agengy RMBS in order to weaken the dollar under the guise that they are looking out for the common man.

The real agenda is to reduce real long-term rates paid by financial institutions & corporations that have are over-leveraged. A plan to bail out the sick and stupid at the expense of the prudent. Brilliant.

Fri, 01/13/2012 - 00:18 | 2060638 JPM Hater001
JPM Hater001's picture

All those minus's-  Thats what we call "reality check" here on ZH.  In more mundane terms...you are not ready for ZH if you still think that way.

Thu, 01/12/2012 - 22:31 | 2060441 roy10
roy10's picture

There will be no QE3 unless the economy tanks in a serious manner. The political pressure on the Fed is way too big right now. If we didn't have QE3 during the summer soft-patch, we're sure not to have it now.

Thu, 01/12/2012 - 22:36 | 2060457 lolmao500
lolmao500's picture

The economy IS tanking.

Thu, 01/12/2012 - 22:43 | 2060480 nmewn
nmewn's picture

I don't care too much for money, money can't buy me love.

lol..."monetary policy".

http://www.youtube.com/watch?v=SMwZsFKIXa8

Fri, 01/13/2012 - 00:20 | 2060641 The Monkey
The Monkey's picture

There will be a QE3 long before you see any serious impact to the economy. They are concerned about long-term financing costs for their banks (go look at the secondary market for financials).

But, of more concern, if you are not satisfied with how things "feel" (which requires keeping their banking buddies happy), they will be relegated to ashes.

QE for the status quo.

Thu, 01/12/2012 - 23:01 | 2060515 Long-John-Silver
Long-John-Silver's picture

The economy is like a ghost. It has died but refuses to believe it and move on.

Fri, 01/13/2012 - 00:28 | 2060652 JPM Hater001
JPM Hater001's picture

Economy...Fed..Obama...Meh...this might be the smartes analogy I have seen in a long time.

Fri, 01/13/2012 - 21:42 | 2063849 kwality
kwality's picture

Or like Poltergeists sliding chairs across the radiant heat floors and cooking steak on the granite countertops.  And wouldn't you know it, Zelda Rubenstein kicked the bucket years ago.  Who's gonna help get these fuckers to the other side?

Thu, 01/12/2012 - 23:20 | 2060543 Sam Clemons
Sam Clemons's picture

But most ignoramuses in the Fed, congress and media don't know that it is unless the stock market is tanking.

Fri, 01/13/2012 - 00:34 | 2060667 Harbanger
Fri, 01/13/2012 - 01:32 | 2060753 Teamtc321
Teamtc321's picture

Fed Provided $16 Trillion To Foreign Banks, Financial Houses


26votes

The U.S. Federal Reserve gave out $16.1 trillion in emergency loans to U.S. and foreign financial institutions between Dec. 1, 2007 and July 21, 2010, according to figures produced by the government’s first-ever audit of the central bank. Last year, the gross domestic product of the entire U.S. economy was $14.5 trillion. Of the $16.1 trillion loaned out, $3.08 trillion went to financial institutions in the U.K., Germany, Switzerland, France and Belgium, the Government Accountability Office’s (GAO) analysis shows.

http://www.dailypaul.com/171487/fed-gives-16-trillion-to-foreign-banks

Thu, 01/12/2012 - 22:33 | 2060446 JW n FL
JW n FL's picture

 

 

QE to Infnity and Beyond will help the average Joe.. Mr. Main Street!!

Think of all the Happy Bankers and the Trickle Down Effects!!

 

Wall Street investors will receive significant new protections under a plan adopted by federal regulators on Wednesday, an overhaul that comes in the wake of the collapse of MF Global.

When MF Global filed for bankruptcy last year, some $1.2 billion in customer money vanished from the brokerage firm. The firm’s futures customers, farmers and hedge funds alike, are still without nearly a third of their money.

But the new rules would not prevent a brokerage firm from repeating MF Global’s mistake of misusing customer money, nor would they apply to any futures industry clients like those of MF Global.

Instead, the changes affect only customers who trade swaps, complex derivative contracts that allow companies to hedge exposure to interest rates and other financial products. These investors are usually Wall Street banks, hedge funds and large companies.

The Commodity Futures Trading Commission voted 4 to 1 on Wednesday to adopt the overhaul.

http://dealbook.nytimes.com/2012/01/11/regulator-adopts-new-customer-protection-rules/?src=dlbksb

 

See! they get it!! SWAP Protection helps with the Trickle Down Effect!

Wake Up People!

Trickle Down is as Good as it gets until you start voting with Bullets!

There is no need to bitch about it! just start boot licking, you may / can have crumbs!

 

Fri, 01/13/2012 - 00:07 | 2060562 SillySalesmanQu...
SillySalesmanQuestion's picture

JW

Thank You Sir for the post and the informative links! Terrence Duffy is nothing more than a paid off shill and two-bit whore for Jon Corzine and Jamie Dimon. The C.F.T.C and the CME have made it clear that there will be NO protection for average joe and small investors. Only the T.B.T.F, and the "big boys" will be looked after...the rest of us, go piss off and wait to see if anything "trickles down".

 

I'm all for voting with bullets for these no good, mutha-frickin, slimy, lying, cheating scoundrels... Good day and good aim... buy gold and lead bitchez...I'm off.

Fri, 01/13/2012 - 00:56 | 2060702 bonderøven-farm ass
bonderøven-farm ass's picture

Trickle-down, bitchezzzz...........!

"It is hard to free fools from the chains they revere...."  ~ Voltaire

 http://www.youtube.com/watch?feature=player_embedded&v=UNftrsCMiQs#!

Sat, 01/14/2012 - 14:42 | 2064745 JW n FL
JW n FL's picture

 

 

bonderøven-farm ass

Trickle-down, bitchezzzz...........!

"It is hard to free fools from the chains they revere...." ~ Voltaire

http://www.youtube.com/watch?feature=player_embedded&v=UNftrsCMiQs#!

 

That was Fucking Beautiful! Thank YOU!! from the bottom of my Heart!

Let us Hope, Pray and even WORK! towards educating enough to start a Domino effect! We can Free a person.. who can free a person.. who then can free a person.. we just have to free enough to make sure that enough chains come off!

Loving the chains.. is eaier than Loving the Truth.

That sad fact may slow us down some... http://www.youtube.com/watch?v=Z7BuQFUhsRM

 

 

Thu, 01/12/2012 - 22:33 | 2060447 Sutton
Sutton's picture

ben I might be long but for the fact Corzine stole my money-and DeusheDimonBlankfein- from MF Global

 

People BAIL  Run -Go to the mattress

If its not witin 20 feet its GONE

WAKE UP

 

 

Sat, 01/14/2012 - 14:58 | 2064774 JW n FL
JW n FL's picture

 

 

 

are you saying that if segregated accounts are not sacrosanct.. that C.D. (Certificates of Deposits) are as well.. questionable?

imagine everyone with a C.D. at Bank of America really having to read the fine print.. when it goes belly up.

and they will say... we didnt know! it never happened before!!

a fool and his money are soon parted!

the bad news.. the good people, the smart people.. who work and save and who have even planned for problems going forward.. will be targets because of their success in planning!

either thru Taxation! or physical robbery to support the system!

the Local Police are an armed gang who knows where ALL the goodies are! thru the help of your insurance company! I understand that this thought may be getting out near the edge of probability.. but the World has not been as close to that edge .. as it is now with Europe spinning out of control, due to ego's!

The root of all evil.. mixed with HUGE Ego's!! equals!! a Real Potential Risk to Global Stability.. because of printed pieces of paper (fiat).

 

Definition of 'Certificate Of Deposit - CD'

A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate and can be issued in any denomination. CDs are generally issued by commercial banks and are insured by the FDIC. The term of a CD generally ranges from one month to five years.

Read more: http://www.investopedia.com/terms/c/certificateofdeposit.asp#ixzz1jScKUyyl

Thu, 01/12/2012 - 22:34 | 2060448 meatball
meatball's picture

QE so far has boosted the stock market and that's about it. And who benefits the most from that? Not the Average Joe, who barely makes ends meet and has very little in the market.

It won't surprise me if the government gets the banks to cut people's mortgage payments or helps them in some other way next.

I guess they should have just said, go all in, borrow as much as possible, and buy everything you can back in March 2009.

Fri, 01/13/2012 - 00:29 | 2060653 The Monkey
The Monkey's picture

No. QE helps the financial institutions. When credit spreads crack wider, the tried and true method to get them to relax is to print money. Financial institutions (the Fed's banks), that are heavily levered, are very sensitive to changes in real rates.

The Fed siphons money from Joe Sixpack to give to their banks. That is the bottom-line and the true intention of QE.

Fri, 01/13/2012 - 00:39 | 2060675 HarryM
HarryM's picture

As in writing down the monthly mortgage payments to the level of the estimated rental income of the property?

 

The taxpayors, er, I mean the Fed picks up the slack?

Thu, 01/12/2012 - 22:35 | 2060450 LouisDega
LouisDega's picture

del

Thu, 01/12/2012 - 22:34 | 2060451 lolmao500
lolmao500's picture

The average joe should find a job and shut the hell up.

- Bernanke

Thu, 01/12/2012 - 22:35 | 2060453 SheepleLOVEched...
SheepleLOVEcheddarbaybiscuits's picture

QE3 will cripple the economy just like 08. The price of oil will be driven to similar levels before the crisis due to USD debasement. This is a bit ironic, however because they will claim that QE3 is used for "bolstering the economy" when all it will do in fact is give money to PDs just like the other easing events. In the meantime, real wages will continue to disintigrate, corporate profits will soar, and here's the kicker: employment will decline due to higher markup of goods and services that will cut into compressing profit margins. So we know that if employment declines, the housing market will follow(continuation of collapse in new home building). People will be forced to spend rather than save, as has been the case for quite some time now. With respect to firms? one word: MALINVESTMENT.  Boy, they really messed this thing up....I'm only 26 with a bachelors degree in economics and I figured it out, so that tells me that these PhDs know exactly what they are doing.....

Fri, 01/13/2012 - 01:30 | 2060663 JPM Hater001
JPM Hater001's picture

"I'm only 26 with a bachelors degree in economics and I figured it out,"

Leaving open the possibility you were taught Austrian Economics (general theory of reality points otherwise) you are the first in a new generation with the far more useful and pragmatic degree... in ZeroHedge.

Thu, 01/12/2012 - 22:35 | 2060455 alien-IQ
alien-IQ's picture

When James Cameron was making the movie Terminator 2 (aka "T-2") he, as usual, made the crews life a living hell (he is quite demanding and unforgiving). So, the crew had t-shirts made which they often wore on the set. The t-shirts simple stated: "T-3...not with me".

Perhaps it's time for the "QE 3...not with me" t-shirts to hit the market?

Thu, 01/12/2012 - 22:36 | 2060456 vote_libertaria...
vote_libertarian_party's picture

"...there was little support from the public for further intervention.."

 

Since when does the Fed give a crap about what the public wants?

Thu, 01/12/2012 - 22:39 | 2060468 Bicycle Repairman
Bicycle Repairman's picture

There is little support from the rest of the world for a reserve currency constantly devalued by QE.  That is the real point.  The author seems to think it's all about the US.

Thu, 01/12/2012 - 22:38 | 2060465 dick cheneys ghost
dick cheneys ghost's picture

"Let's remember that the goal of both the QE programs and Operation Twist was to suppress interest rates on the longer end of the yield curve in a bet, which has failed to this point, to revive housing." 

 

Were we not taught by ZH and others that QE was about bailing out the banks?

rickards says the the fed (QE) is all about protecting banks and bass says dont "get a false sense of security" if stocks go up.........

 

Who the fuck is going to buy a house? your parents who just retired? your kid who just graduated college and cant find a job? your relatives/friends who just just went thru bankruptcy?.......housing is dead for a long long time......JMO

Thu, 01/12/2012 - 22:41 | 2060470 Uber Vandal
Uber Vandal's picture

An old friend of mine that I had not heard from for quite a while dropped me a line, apologizing for not contacting me sooner due to what is all going on in his life.

After he told me his situation, this is verbatim, my reply to him:

 

In my opinion, in the near future, it is not going to matter at all if you have a job or not.

Because, sooner or later, most likely sooner, the pay you get from your job is not even going to remotely cover any of your bills no matter how hard you work, or cuts you make.

When that day comes, remember that it is all part of their plan, it is not because you were “lazy, or lived  beyond your means, or were entitled”, as you may often hear in the media, which is controlled by guess who?

Thu, 01/12/2012 - 22:42 | 2060477 Bicycle Repairman
Bicycle Repairman's picture

Indeed.  Wages are going to be turned to dust.

Thu, 01/12/2012 - 22:53 | 2060498 Gromit
Gromit's picture

Actually no. Workers have pricing power. Savers, on the other hand, do not.

Thu, 01/12/2012 - 23:03 | 2060516 Gromit
Gromit's picture

Think about it. In inflationary times good workers (and well connected and effectively unionized workers) are in demand and can price their labor in advance of increasing prices.

Business prospers also. It's really a  cash flow thing, if you can raise your prices faster than they are increased to you inflation is very nice.

It is savers, who have no pricing power, who get erased.

Thu, 01/12/2012 - 23:36 | 2060565 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

We are talking about the destabolization of the world's reserve currencie.  This is not some mere inflationary event.  This is hyperinflation of the whole Fiat Ponzi.

Fri, 01/13/2012 - 00:04 | 2060612 Alpha Monkey
Alpha Monkey's picture

How are workers supposed to be able to stop working and force their companies to split the pie more evenly if they don't have savings to live on in the meantime?  Saving is at least as important as being a well connected or unionized worker.  With debt on the other hand, you face the risk of losing everything you don't actually own when you try to stand up for yourself or others.  So, I don't think it's savers who get erased... Especialy those who save in the appropriate monetary unit.

Fri, 01/13/2012 - 00:27 | 2060650 xela2200
xela2200's picture

How are the workers supposed force their companies to split the pie more evenly?

ah.. They are not. If their skills are underpaid by the market, they can find another place to work or ask for a raise. Maybe, they can put their capital at risk and open their own business.

I find this union mentality as bs. If the owner does well, he needs to share it with us.

When I am hired for a job, I expect to get paid what was agreed for the job described. If my work has value, then the person who hired me benefits from it. Good for him.

Fri, 01/13/2012 - 01:03 | 2060709 TruthInSunshine
TruthInSunshine's picture

Inflation will come; actually it's here, running at about 7% in the U.S. based on a far metric metric than the highly flawed one relied upon by The Federal Reserve.

What I should say is that hyperinflation will come, but we're going to see stong, episodic bouts of deflation first, which will produce systemic shock, and usher in more global support for NWO policy makers to implement something akin to a global currency, whether it be SDR or something similar. Individuals won't necessarily be using whatever they come up with, but the currency they do use will be far more affected in a more direct way than now by such a mechanism.

Even though inflation is running high on things people need to consume on a daily basis right now (groceries, gas, medications), there's still some deflation on real transactional costs on motor vehicles, houses, other real estate and things that credit is required to purchase (for the most part).

Bernanke is still perceived as some sort of maestro by the financial media for his purported "threading of the needle & staving off another Great Depression," when the reality is that the economy in most developed economies is as weak or weaker, fundamentally, than it was in 2008-2009 (back then, liquidity and credit were the issues, out of a generalized fear), and the economies in many formerly fast growing emerging nations have slowed significantly (China is a prime case), the consumer and small businesses continue to delever on major expense goods and services (out of necessity or choice) to offset falling real incomes/wages/revenues and higher inflation on inflexible goods, and credit markets and liquidity for banks is literally dependent on taxpayer backed transfers provided by Bernanke on a nightly basis, while publicly traded corporations are in a race to borrow as much money as they can by floating bonds, thus taking advantage of the extremely low interest rates that Bernanke's incredible suppression of short, intermediate and long term interest rates has afforded them (as treasuries are competitors to corporate bonds, as so long as corporate bonds having investment grade ratings yield even incrementally higher amounts than treasuries, there is a market for them).

The end result of corporate bond issuances of U.S. corporations over the last 3 years is that U.S. publicly traded corporations now are sitting on just under 13 trillion dollars of debt, which they gladly took on given how low the borrowing costs were.

The ugly surprise will occur during the next liquidity crisis, which will more likely than not be preceded by a significant drop in consumption, meaning that it won't matter how low these corporations financed their issuances of debt at, because many of them won't be generating enough net revenue to service the repayment on the underlying bonds.

Even Bernanke can't keep this juggling act going indefinitely, and he is well aware of this.

There's a major, systemic financial/economic crisis about every 6 to 10 years. With the economy never really recovering from the 2008 meltdown, the geopolitical backdrop we now have, and broken markets brought about by almost unprecedented central bank interventionism (only matched by what was undertaken during WWII), it's likely the next systemic financial/economic crisis has already been brewing for a while, and we won't know how it manifests itself specifically until it occurs.

Capital preservation should be the goal of any rational economic actor at this point, unless they're nursing on the teat of the state (e.g. Primary Dealers, too-big-to-fail banks, etc.).

Some say bonds are in a major bubble right now, while others say equities are massively rich, when in truth, The Bernank and the perceived effectiveness and competence of central bankers are the biggest bubbles going.

 

 

 

 

 

Fri, 01/13/2012 - 04:52 | 2060884 Uber Vandal
Uber Vandal's picture

This article about the "Austerity" in Greece almost reads like what I said to my friend, unfortunately.

A true Greek Tragedy. (Note: Ignore the sensationalistic images, just read the article)

http://www.dailymail.co.uk/news/article-2085163/Children-dumped-streets-...

 

 

Fri, 01/13/2012 - 10:29 | 2061233 BLOTTO
BLOTTO's picture

By them...Luciferians...the Illuminated ones...Sun Worshippers... Blue bloods... Royal Houses Of Europe

Thu, 01/12/2012 - 22:40 | 2060473 Bicycle Repairman
Bicycle Repairman's picture

Everything the FED does is about protecting the TBTF banks.  And that is all.

Thu, 01/12/2012 - 22:42 | 2060475 yogibear
yogibear's picture

Any loss of treasury buying or stock market confidence and Bernanke will resort to printing.  Bernanke's printing/monetization will not cease until there is a big improvement in the economy or the world flees from US dollars 

Thu, 01/12/2012 - 22:42 | 2060476 AC_Doctor
AC_Doctor's picture

Won't help the average Joe unless he is sitting on US Silver Eagle monster boxes...

Thu, 01/12/2012 - 22:46 | 2060486 JW n FL
JW n FL's picture

 

 

and!! might I add.. monster boxes stacked 3 high make GREAT! Foot Stools! for the Office!

I am going to sell a How to make Foot Stools and other interesting things out of Monster Boxes soon!

$19.95 and You Too! Can have monster box furniture.. because it doenst fit in the safe(s) any more!!

 

Thu, 01/12/2012 - 22:50 | 2060494 JW n FL
JW n FL's picture

 

 

January 12, 2012, 9:28 amMergers & Acquisitions

London Metal Exchange to Review Takeover Bids in February By MARK SCOTT Chris Ratcliffe/Bloomberg NewsThe floor of the London Metal Exchange in 2010.

LONDON — The London Metal Exchange, the world’s largest metal futures market, plans to review initial takeover offers at a board meeting on Feb. 23.

The firm’s chief executive, Martin Abbott, declined to comment on how many bidders there might be for the 135-year-old company, which allows market participants to trade industrial metals like copper and nickel. A person briefed on the matter, however, said there were at least 10 interested parties.

Financial data on the company was sent to potential bidders earlier this year.

http://dealbook.nytimes.com/2012/01/12/london-metal-exchange-to-review-takeover-bids-in-february/

 

Look how stable the Paper Markets are! they cant wait to Sell.. I mean Buy! LULZ!!

Thu, 01/12/2012 - 22:55 | 2060504 JW n FL
JW n FL's picture

 

 

Dont worry!!

No Funny Business is happening with the deal!!

JPMorgan Chase is the exchange’s largest shareholder, after acquiring a 4.7 stake for $38.9 million from the bankrupt brokerage MF Global in November, and it now owns 10.9 percent of the London firm.

As you can see.. JP Morgan is representing the interests of the Average Joe!

Praise Be!! More Trickle Down is on the way!

Thu, 01/12/2012 - 23:10 | 2060529 centerline
centerline's picture

Funny.  I still, to this day, can't believe anyone actually bought the trickle down theory.  That was absolutely the funniest bitch slap ever delivered to the middle class.

Thu, 01/12/2012 - 23:22 | 2060548 JW n FL
JW n FL's picture

 

 

Hey! Hey!!

the Top 1% of 1% Love You!!

so much so that they are right now.. working late doing God's Work! trying to figure out how to help you some more!

Joe and the rest of us should be Thankful! of such hard working People!

The Job Creators are doing God's Work EVERYDAY! to help us Average Joe's!

see below!

Capital gains are the key ingredient of income disparity in the US-- and the force behind the winner takes all mantra of our economic system. If you want even out earning power in the U.S, you have to raise the 15% capital gains tax.

Income and wealth disparities become even more absurd if we look at the top 0.1% of the nation's earners-- rather than the more common 1%. The top 0.1%-- about 315,000 individuals out of 315 million-- are making about half of all capital gains on the sale of shares or property after 1 year; and these capital gains make up 60% of the income made by the Forbes 400.

It's crystal clear that the Bush tax reduction on capital gains and dividend income in 2003 was the cutting edge policy that has created the immense increase in net worth of corporate executives, Wall St. professionals and other entrepreneurs.

http://news.yahoo.com/top-0-1-nation-earn-half-capital-gains-172647859.html

The Team Red / Blue Spin never ends! and the Rich keep on keepin on baby!! 

Thu, 01/12/2012 - 22:47 | 2060489 Bicycle Repairman
Bicycle Repairman's picture

In the bigger picture, does the average Joe matter anymore?

Thu, 01/12/2012 - 22:54 | 2060503 Gromit
Gromit's picture

Did he ever?

 

Thu, 01/12/2012 - 23:24 | 2060553 JW n FL
JW n FL's picture

 

 

without the Average Joe who would there be to steal from?

who would bare the brunt of the lifting Tax Percentage wise?

If Joe isnt in a 30% Tax Bracket then you know who would be!

See Joe is Important!

Trickle Down is on the way!

Thu, 01/12/2012 - 22:51 | 2060496 Caviar Emptor
Caviar Emptor's picture

Behold the beautiful disconnect between the real economy (of which Average Joe is a citizen) and the paper economy (populated by the few who make their living directly off the Ponzi). 

The net result of all Fed action including QE since the crisis has been to bloat the paper economy even more than when the bubble burst (shadow banking has expanded past the prior record level, treasury debt levels, money in circulation all higher). But the real economy is scraping the bottom with nearly no bounce and now the threat of another leg down. There will be a wave of corporate bankruptcies this year. There will be further downsizing of the workforce. There will be more offshoring of jobs. Austerity measures will get implemented. And there will be more global political instability

Fri, 01/13/2012 - 00:10 | 2060611 TrulyBelieving
TrulyBelieving's picture

Such is the price of greed. It's loathsome to watch these policy makers turn what is supposed to be a free market into a manipulated, contrived system set to enrich themselves by stealing from those that actually earned. In the big picture we are witnessing a great power play designed to take all. When things happen that make no sense or seems contrary just keep in mind these folks know exactly what they are doing and why they are doing it. 

Thu, 01/12/2012 - 22:53 | 2060499 Shizzmoney
Shizzmoney's picture

They get QE and all I get is this stinkin T-Shirt that says, "I just got $600!"

Thu, 01/12/2012 - 22:58 | 2060508 walcott
walcott's picture

 

Food Lion cuts 133 stores in US. All Florida and Georgia stores will be closed in 3 months. 

Control the food supply.

http://www.firstcoastnews.com/rss/article/235709/3/Food-Lion-Closing-Sev...

Thu, 01/12/2012 - 23:50 | 2060592 Caviar Emptor
Caviar Emptor's picture

Razor thin margins cut them

Thu, 01/12/2012 - 22:58 | 2060509 Peter Pan
Peter Pan's picture

They need to wake up to the fact that every new job will potentially either create demand for one more home or will at least ensure that one more house does not come onto the market.

Or isn't the economy about people any more?

Fri, 01/13/2012 - 01:03 | 2060711 Whoa Dammit
Whoa Dammit's picture

The economy is about algos. 

Thu, 01/12/2012 - 23:05 | 2060520 onarga74
onarga74's picture

What's up with gold AND silver tonight FX?  Both look ugly which is fine with me

Thu, 01/12/2012 - 23:38 | 2060569 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Londontown wants it, because they need it.  Shit's about to get desperate.

Thu, 01/12/2012 - 23:44 | 2060579 jimmyjames
jimmyjames's picture

What's up with gold AND silver tonight FX?  Both look ugly which is fine with me

*************

It looks to me like gold is forming a bull flag-

Fri, 01/13/2012 - 01:48 | 2060773 StockProdigy
StockProdigy's picture

Focus is back on stock for now at least. Metals will maintain in the near term, no huge uptrend.

Thu, 01/12/2012 - 23:06 | 2060522 yogibear
yogibear's picture

Food Lion cuts 133 stores in US. 

 

It means it's rally time!

Thu, 01/12/2012 - 23:08 | 2060523 slewie the pi-rat
slewie the pi-rat's picture

 

Dear politicians and banksters,

  •  
      • You've done enough already!
      • We've decided we no longer want you to "fix things and improve the economy thru centralPlanning."
      • Just leave "housing" alone for the next 3-400 years, ok?

Seriously,
    ~~slewie the pi-rat

Thu, 01/12/2012 - 23:10 | 2060528 Johnny Yuma
Johnny Yuma's picture

No QE3. The Fed just hinted it with their beige book. 

Thu, 01/12/2012 - 23:40 | 2060570 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Today I read an article on the obsolete media that said their was a fight between doves and hawks concerning QE X.  My question:  What hawks?

Fri, 01/13/2012 - 00:12 | 2060626 slewie the pi-rat
slewie the pi-rat's picture

well, so far, at least in public, benzelbub is a dove on interest-rate QE [chubby checker/twist] but reluctant to blow-up-the-balance-sheet QE printing since last summer which makes him a little hawkish, especially to the squid, as tyler shows w/ frequent posts

and some seem to think the recent "low-volume melt-ups" of equities is anticipatory of the dovish balance-sheet LSAP asset-purchase type QE [III]

the chairsatan seems to have been keeping his foot offa that pedal since last summer, but...we shall see...

Fri, 01/13/2012 - 00:33 | 2060662 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

This is rhetoric.  Ben's policie is to inflate the dollar supply so to weaken the currencie.  Ben has written textbooks about it, and he has implemented it his whole tenure. 

How can we measure this policie?  The DXY does not show the whole picture, as it relates to other bankrupt fiat currencie.  What about inflation of oil?  Well that is not the best measurement because of supply/demand constraints on price.  The dollat:oil has an almost 1:1 relationship, but it can change equilibrium movement. 

Is gold the best to note this problem?  Not exactly, because gold can be a hedge against the rest of the turmoil in the world as well.  Silver?  Silver hasn't peaked production, so it is the whim of industrial demand still.

So there is no exact way to measure dollar debasement, but if we look at the whole picture, we know that the dollar is losing massive value.  And this is and has been Mr Shalom's main goal.

Fri, 01/13/2012 - 02:37 | 2060714 slewie the pi-rat
slewie the pi-rat's picture

the speed, degree, and type of debasement is open to dove/hawk debate

there have been a lot of dovish calls to do more in the way of easing, since the economy, jobs, and housing, have not "responded" as well as was "hoped for" so far

since the marginal return on debt-based public spending is now resulting in negative marginal GDP returns the "decider" at the FED may not be quite so dovish there as in years past, especially if the chairsatan can see other positive policy options becides LSAP QE

you asked a Q about "hawks" which i tried to honestly answer:  the FED seems to be dovish on "twist" and hawkish on LSAP for about the last 6 months, imo~~trying to deploy its assets to keep interest rates at historic lows w/out total funding [printing/monetization] of out-of-control deficit spending

may not last till the end of the month, but that's the picture i see, today...

as the FED deals with various credit needs, it seems that some expansionary credit may be more "debasing"  than other loans and guarantees

  • some of those student loans come to mind as being less than stellar
  • there may also be some commercial space here and there which is still overvalued loan-wise
  • you know, vacancies are very expensive in real estate
  • and tenants who are getting reduced rents aren't exactly the cat's meow, either
  • now, we get data that rents are firming and apartments are being built
  • 5-6 years ago we had the president and leaders of congress telling us, non-stop, how the "american dream" was now available to anyone who could steam a mirror, and i don't recall the "rental" theme

i'm not sure how much more "management and centralPlanning" we can stand!  i don't care what bird wants what!

Fri, 01/13/2012 - 01:29 | 2060603 slewie the pi-rat
slewie the pi-rat's picture

L0L!!!  stop by again next week and put up another dozen words about what something is "hinting" about "the future of QE"...

...or not...

what QE, mr johnny-on-the-yuma "rebel"?   LSAP-Ts?  LSAP-MBS? 

if "twist" is QE and they're going to do it for another year, at least, then "No QE" divined from the beige book might just be ignorance trying to sound intelligent, here...

or,  just too busy to write a sentence that makes sense this week?

Fri, 01/13/2012 - 21:00 | 2063765 Johnny Yuma
Johnny Yuma's picture

OP Twist can be construed as a QE program however any further LSAP programs with the term "QE" is politicaly unacceptable going forward. 

BTW, enough with the want to be witty jargon. You make yourself look like a desparate fool... 

Thu, 01/12/2012 - 23:15 | 2060534 blindman
blindman's picture

recapitalization. what does it signify?
beats me but you better find cover.

Thu, 01/12/2012 - 23:21 | 2060536 ucsbcanuck
ucsbcanuck's picture

Interesting article about correlation or lack thereof between Baltic Dry and S&P

http://www.thewallstreetshuffle.com/is-the-global-recovery-real-or-artif...

Correction: Ignore the title - the charts show BDI vs DJIA.  

 

Thu, 01/12/2012 - 23:21 | 2060544 Atomizer
Atomizer's picture

 

 

It's pretty simple in the context of US GDP/National Debt. Math cannot lie..

The Perfect Bernank QE3 Prog Supporters

The Obama tells us, I need another 1.2 Trillion. As if we forgot the first time around in late 2011..

Don't stop feeding me - Image

Thu, 01/12/2012 - 23:36 | 2060564 blindman
blindman's picture

as the financial world does not exist neither does
the "average jim". work it out

Thu, 01/12/2012 - 23:43 | 2060573 YesWeKahn
YesWeKahn's picture

Look, Bernanke was never concerned about Average Joe. He only wanted to pump the market. From his own words: "My idiotic monetary policy boosts the fraud market, thus allows fraud companies to access to more capitals, makes some criminals rich, therefore helps the phu cking economy"

Thu, 01/12/2012 - 23:46 | 2060582 Reese Bobby
Reese Bobby's picture

Ground breaking stuff Lance.  I look forward to your analysis that it tends to be colder in Alaska during the winter as compared to the summer.

Thu, 01/12/2012 - 23:47 | 2060584 Antifaschistische
Antifaschistische's picture


"Why QE3 Won't Help "Average Joe"

How about....for the same reason QE1 and QE2 didn't help the average Joe!!

QE's a counterfeiting.  Counterfeiting helps counterfeiters and the 'first spenders' of the counterfeit cash.  "Average Joe" only pays with higher pricing.

Thu, 01/12/2012 - 23:55 | 2060588 Reese Bobby
Reese Bobby's picture

If anybody hasn't seen this it is funny in a sad kind of way:

http://totalfratmove.com/769302

"My garbage disposal eats better than 98% of the world."

"Living my life is like playing Call of Duty on Easy. I just go around and fuck shit up"

"From my experience, most people really should have lower self-esteem."

I have another:

"And again I say unto you, It is easier for a camel to go through the eye of a needle, than for a rich man to enter into the kingdom of God."

Fri, 01/13/2012 - 00:06 | 2060617 akak
akak's picture

Sociopaths don't give a fuck about the kingdom of God.

Fri, 01/13/2012 - 01:29 | 2060749 Vic Vinegar
Vic Vinegar's picture

Tnx.  Some of these were legitimately funny.  And

"Black Friday is the Special Olympics of capitalism."

is one we can all agree on

Thu, 01/12/2012 - 23:49 | 2060590 non_anon
non_anon's picture

just give me my six pack

Thu, 01/12/2012 - 23:57 | 2060599 THECOMINGDEPRESSION
THECOMINGDEPRESSION's picture

Quite funny that Turd kicked off some shmuck on his site. I agreed with him and his remarks though

Fri, 01/13/2012 - 02:06 | 2060792 Teamtc321
Teamtc321's picture

Every thread, every post? Get over it. 

Thu, 01/12/2012 - 23:57 | 2060602 GeorgeHayduke
GeorgeHayduke's picture

Stating the obvious much on this one? Like we need someone to write this much about something anyone paying any attention whatsoever already knows.

ALL fiscal policy is about moving wealth upward to the fascists. Both political parties have played along for decades.

Fri, 01/13/2012 - 00:03 | 2060610 Reese Bobby
Reese Bobby's picture

Agreed.  But at least it wasn't a Phoenix Capital infomercial.  Still I think the real Tyler may be moving on given the quality of ZH lately:

“I swear-by my life and my love of it-that I will never live for the sake of another man, nor ask another man to live for mine."

Fri, 01/13/2012 - 00:05 | 2060615 Reese Bobby
Reese Bobby's picture

I gave myself a thumbs down just to get things going, you mindless minions.

Fri, 01/13/2012 - 00:15 | 2060630 akak
akak's picture

Still I think the real Tyler may be moving on given the quality of ZH lately

Gotta present basic info from time to time for all the newbies who are not yet on board.

Fri, 01/13/2012 - 00:31 | 2060660 Reese Bobby
Reese Bobby's picture

I have always loved the repetition of message and the growth that results; I just thought this post was a backward-step, no-cares kind of post.  And lately I just perceive a difference here at ZH: Like "The Man" is stepping out.  I hope I am wrong because I owe a great debt to ZH and the "old-timers" here.  Maybe THE Tyler is just on a well-deserved vacation.  Peace.

Fri, 01/13/2012 - 00:07 | 2060621 Caviar Emptor
Caviar Emptor's picture


Bank of America Corp. has told U.S. regulators that it is willing to retreat from some parts of the country if its financial problems deepen, according to people familiar with the situation.

Executives at the Charlotte, N.C., financial giant put the potential move on a list of emergency scenarios 

Fri, 01/13/2012 - 01:07 | 2060716 ucsbcanuck
ucsbcanuck's picture

(sarc on)

(in RobotTrader voice)

What are you talking about? Up 30% in 2 weeks! Financial problems? BAC got no stinking financial problems!

(sarc off)

Fri, 01/13/2012 - 01:17 | 2060731 Whoa Dammit
Whoa Dammit's picture

Got the popcorn out, waiting for BAC to become Bank of Alabama.

Fri, 01/13/2012 - 00:15 | 2060631 Jam Akin
Jam Akin's picture

China slows ‘midst financial repression. 

What will head off the global depression?

Si se puede sez Obamney Oh, yes we can:

Bomb Bomb Bomb Bomb Bomb Iran!

Fri, 01/13/2012 - 00:18 | 2060636 akak
akak's picture

Si se puede sez Obamney Oh, yes we can

I never understood why they would have translated "Yes we can!" into "Si se puede" ("Yes it can be") instead of the more literal and direct "Si podemos".


Fri, 01/13/2012 - 00:19 | 2060640 Jam Akin
Jam Akin's picture

It sounds better when chanted in protest marches perhaps.

Fri, 01/13/2012 - 00:16 | 2060634 Bansters-in-my-...
Bansters-in-my- feces's picture

What the fuck just happened to gold ,for NO reason...????

Fri, 01/13/2012 - 00:19 | 2060639 akak
akak's picture

For no GOOD reason, or for no HONEST reason, you mean.

Fri, 01/13/2012 - 00:39 | 2060674 Reese Bobby
Reese Bobby's picture

I hope gold plummets and here is why: I want to own 4X what I do now.

Do the math:  If you plan on leaving any money to your kids PM might dodge a 50% tax.  If you think/know the CB wants to satomp on the dollar, do the math.

The math = Gold can plummet and it is still a win-win.  And I doubt it will.  Peace.

Fri, 01/13/2012 - 00:22 | 2060645 Jam Akin
Jam Akin's picture

It'll come back, it'll come back.  God's friend Bernank will bring it back.

Fri, 01/13/2012 - 02:13 | 2060801 Teamtc321
Teamtc321's picture

1647.90?

Fri, 01/13/2012 - 00:20 | 2060642 famousamos
famousamos's picture

Quick off topic question... about a year or so ago Tyler posted a video of some gentleman ripping Warren Buffett about his alledged philantropy, and he said something like "I gave a lot more than warren - a lot sooner", and something about Warren not giving a dime away, and now he gives it all away at once to the gates foundation and that's something worth looking into. I cannot find that video and can't remember the guys name... all i can find are wonderful things about sweet old grandpa buffett. little hep? little hep now?

 

Fri, 01/13/2012 - 00:49 | 2060689 Atomizer
Atomizer's picture

Grandpa was been caught in the new society crossfire of Change & Hope. These parasites are shitting large scale bricks.

 

A national debt, if it is not excessive, will be to us a national blessing.

-Alexander Hamilton

 

Fri, 01/13/2012 - 00:40 | 2060676 props2009
props2009's picture

http://fnn24.com/?p=37110 

 

Latest FX news as trading continues

 

Twitter @ https://twitter.com/#!/fnn24

Fri, 01/13/2012 - 00:57 | 2060696 tim73
tim73's picture

"Helping" Average Joe is preventing any meaningful change in America. Those almost 50 million Americans on food stamps do not revolt because they still got their tummies full of white bread+1000-industrial-grade-toxic-mix-of-ingredients-shit, feel-good "food". People not able to run even 50 yards without stopping are not going go to streets and start rioting. The elite will keep that food stamp program running by any means necessary.

Fri, 01/13/2012 - 00:57 | 2060703 San Diego Gold Bug
San Diego Gold Bug's picture

QE 3 is already happening for those who are paying attention.  Joe six pack and all on fixed income will get screwed by the events that will transpire over the next several years.  I say years, because problems this big take much longer to play out and unfold than most people think.  A lot of readers think that gold and silver will go to the moon this year or the next but reality says that those numbers, and they will come, are still several years away.  Sit tight and be right and buy more metals when you can afford a purchase.  Remember, the daily stuff is just noise, keep your eye on the big picture if you want to come out on the right side of what will be a historical global collapse.

Rack em, pack em and stack em!

Fri, 01/13/2012 - 00:59 | 2060704 chump666
chump666's picture

Um...anyone watching the Shanghai it's like crashing.  That and two crazy rumors out of Asia, some rogue trade and the US declaring trade war on Chinese refineries re: Iran

Fri, 01/13/2012 - 01:08 | 2060718 San Diego Gold Bug
San Diego Gold Bug's picture

Won't happen unless we are looking for WW3.

 

Fri, 01/13/2012 - 02:11 | 2060797 chump666
chump666's picture

http://www.reuters.com/article/2012/01/12/us-iran-usa-sanctions-idUSTRE8...

and their FX reserves are being drained as China hordes USDs. 

Not looking good.

 

Fri, 01/13/2012 - 01:10 | 2060723 ucsbcanuck
ucsbcanuck's picture

http://www.bloomberg.com/apps/quote?ticker=SHCOMP:IND 

2281 to 2234 - over 2% in 2 hours.

Fri, 01/13/2012 - 01:40 | 2060764 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

US equitie at a high and China at a low.  Dollar and Yuan both high.  USTs high.  Oil high.  Gold high.  So the only low is Chinese equitie....is this because China is the lame?  Or do they have an angle?  I have no answer, just joining the convo.

Fri, 01/13/2012 - 02:13 | 2060802 chump666
chump666's picture

check this AUD bid and their bonds tank!

The market is making no sense at all.  I think the machines are running the show and making a confused meal of eveything.

Totally out of sync market.

Fri, 01/13/2012 - 02:27 | 2060813 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Gold/USD is the play of the night folks!

Fri, 01/13/2012 - 02:15 | 2060805 chump666
chump666's picture

SINGAPORE, Jan 13 (IFR) - USD/SGD steady around 1.2875-1.2880 in thin midday dealings but risks short squeeze back to 1.2900 later as Shanghai stock markets sank deeper into the red to -1.77% last. Rumours circulating around the markets re the sell-off in China markets linked to a trading scandal, but no further details heard so far. Some others said the selling could be linked to news that the US has imposed sanction of China's state-run Zhuhai Zhenrong Corp, said to be Iran's supplier of refined petroleum products.

Fri, 01/13/2012 - 07:22 | 2060938 bombimbom
bombimbom's picture

something that will help average joe

http://www.youtube.com/watch?v=mxeKeuh_2Bw

NASA indirectly confirms the validity of Andrea Rossi's e-cat (LENR).

Andrea Rossi replies this way (http://rossilivecat.com/)

Dear Hanz Jager:
The fact that NASA is trying to copy my work honours me. But their theory is wrong. We will beat them, as well as all the other Competitors with our E-Cats: the E-Cats will have a too low price to allow NASA or anybody else to compete with us. They are Goliath, very big and strong, we are David…
Warm Regards,
A.R.

It would be interesting to see ZH cover the economic/financial repercussions of the coming energy revolution

Fri, 01/13/2012 - 08:16 | 2060963 alfred b.
alfred b.'s picture

 

   QE is not meant for Main Street and Joe Sixpack.  Fed wiill initiate QE3 to transfer wealth to the big money banks and give the finger to Main St. and Joe 6pack!   As posted before in this stream, the trickle-down effect will probably occur around QE27.

Buy Physical gold and silver!!!

Fri, 01/13/2012 - 08:19 | 2060965 Everybodys All ...
Everybodys All American's picture

When will someone have enough balls to go punch Berrnanke in the face? Then stand over him and say get the fuck up and get the hell out of here? This crazy asshole is ruining any chance this country will ever have of getting off of this morphine infested drip from the Fed.

Do you know what would actually make things work again for our economy? Busting all of these big banks into small community banks and telling the investment banks we no longer need your services at all. But no Bernanke has to double down on what has been fraud and utter failure.

Fri, 01/13/2012 - 08:26 | 2060971 overmedicatedun...
overmedicatedundersexed's picture

the fed has it's own police force. they think they need it. WHY?

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