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Here Comes The Global, US-Funded Liquidity Bail Out

Tyler Durden's picture


As expected, the Fed has just bailed out the world once again:

  • ECB, FED other major central bank to lower the pricing of existing USD liquidity swaps by 50BPS

And as we have been writing every single day, the worldwide dollar crunch is now confirmed:

  • At present, there is no need to offer liquidity in non-domestic currencies other than the U.S. dollar

And finally, a promise to bailout Bank of America when it hits $4.00 again:

  • U.S. financial institutions currently do not face difficulty obtaining liquidity in short-term funding markets.  However, were conditions to deteriorate, the Federal Reserve has a range of tools available to provide an effective liquidity backstop for such institutions and is prepared to use these tools as needed to support financial stability and to promote the extension of credit to U.S. households and businesses.

This means that the global situation is far, far more dire than the talking heads have said. Luckily, when this step fails, which it will, Mars can always come and bail us out.

For release at 8:00 a.m. EDT

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing coordinated actions to enhance their capacity to provide liquidity support to the global financial system. The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity. 

These central banks have agreed to lower the pricing on the existing temporary U.S. dollar liquidity swap arrangements by 50 basis points so that the new rate will be the U.S. dollar overnight index swap (OIS) rate plus 50 basis points.  This pricing will be applied to all operations conducted from December 5, 2011.  The authorization of these swap arrangements has been extended to February 1, 2013.  In addition, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank will continue to offer three-month tenders until further notice.

As a contingency measure, these central banks have also agreed to establish temporary bilateral liquidity swap arrangements so that liquidity can be provided in each jurisdiction in any of their currencies should market conditions so warrant.  At present, there is no need to offer liquidity in non-domestic currencies other than the U.S. dollar, but the central banks judge it prudent to make the necessary arrangements so that liquidity support operations could be put into place quickly should the need arise.  These swap lines are authorized through February 1, 2013. 

Federal Reserve Actions
The Federal Open Market Committee has authorized an extension of the existing temporary U.S. dollar liquidity swap arrangements with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank through February 1, 2013.  The rate on these swap arrangements has been reduced from the U.S. dollar OIS rate plus 100 basis points to the OIS rate plus 50 basis points.  In addition, as a contingency measure, the Federal Open Market Committee has agreed to establish similar temporary swap arrangements with these five central banks to provide liquidity in any of their currencies if necessary.  Further details on the revised arrangements will be available shortly.

U.S. financial institutions currently do not face difficulty obtaining liquidity in short-term funding markets.  However, were conditions to deteriorate, the Federal Reserve has a range of tools available to provide an effective liquidity backstop for such institutions and is prepared to use these tools as needed to support financial stability and to promote the extension of credit to U.S. households and businesses.

Information on Related Actions Being Taken by Other Central Banks
Information on the actions to be taken by other central banks is available on the following websites:

Bank of Canada

Bank of England

Bank of Japan

European Central Bank

Swiss National Bank

Frequently Asked Questions: Foreign Currency Liquidity Swaps


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Wed, 11/30/2011 - 09:03 | 1929288 AngryGerman
AngryGerman's picture

Bail out wednesday bitchez!!

Wed, 11/30/2011 - 09:07 | 1929300 Turd Ferguson
Turd Ferguson's picture

Game on. Nice to see a spike up in the PMs for once.

Wed, 11/30/2011 - 09:16 | 1929342 Chris Jusset
Chris Jusset's picture

"This means that the global situation is far, far more dire than the talking heads have said. Luckily, when this step fails, which it will, Mars can always come and bail us out."

Bring it on!  Mars to the rescue.

Wed, 11/30/2011 - 09:20 | 1929365 Mae Kadoodie
Mae Kadoodie's picture

Uranaus has more strength than Mars.

Wed, 11/30/2011 - 09:36 | 1929432 Chief KnocAHoma
Chief KnocAHoma's picture


You have been calling the end to this Keynsian experiment for a while now, but every time the cliff gets close, they wiggle out.

This has been going on for years now and I fear we will be given the slow morphine drip for decades more.

This can will continue getting kicked. There are many more manuevers the CBanks can take to continue the ponzi. Just think of all the countries in Africa that not integrated into the debt slavery machine.


Wed, 11/30/2011 - 09:43 | 1929486 Chump
Chump's picture

It seems like it will stretch forever because we're right smack dab in the middle of it.  When we look back, we'll wonder at how fast it happened.

Wed, 11/30/2011 - 10:06 | 1929635 Smiddywesson
Smiddywesson's picture

Yes, and we are accelerating towards that point.  $707 trillion derivatives, up $107t in just the last 6 months.  At a +30% rate of annual increase, I'd say we are approaching the edge of the cliff.

Wed, 11/30/2011 - 10:17 | 1929663 LawsofPhysics
LawsofPhysics's picture

Only if you really think those derivative contracts will be honored.  How is that working out for those suckers that bought insurance on Greek Debt again?  The can kicking will end when everyone stops participating and not before.  The end of the current financial system will be completely unforeseen and perhaps never even acknowledged.  Trying to predict any of this is like trying to predict human stupidity.  Either way, do you have physical assets of real value, tradable skills or great employees that do, and like minded neighbors?  You fucking better.

Wed, 11/30/2011 - 10:45 | 1929861 American34
American34's picture

Bingo! You got it buddy! You dang well better be able to depend on those you know and are close too, friends, NEIGHBORES, and immediate employees because these people are your best assets. For all of you in big cities with 10,000 neighbores at your doorstep good luck. The U.S. has almost no sense of community anymore and this will hurt big time. The LawsofPhysics is dead on here. When your not home it is your neighbores who guarantee the safety of your home, not the Police, which number what, 1 out of 5 or ten thousand people.

Wed, 11/30/2011 - 10:57 | 1929935 Oh regional Indian
Oh regional Indian's picture

Spot on. Neighing Bores, never looked at it that way before. What a perspective. Love they neighbour....

But yes, community. It's all about community. But not the way new agers see it.  We are all equal is the biggest lie sold to them. I am NOT equal in any way shape or form to Usain Bolt. Are you?

Annnnnyways, the fire-hose is now officially open it seems. It takes lips of leather to drink from the firehose.



Wed, 11/30/2011 - 11:04 | 1929983 Thomas
Thomas's picture

Hippocratic Oath: Do no goddamned harm. These guys should read it a few times.

Wed, 11/30/2011 - 11:24 | 1930121 TheFourthStooge-ing
TheFourthStooge-ing's picture

Actually, they subscribe to the Hypocritic Oath: ass rape everyone and say it's for their own good.


Thu, 06/07/2012 - 08:12 | 2502882 Element
Element's picture

Mars's Central Bank is our gooderest bestest friend ... and their tentacles are so damn cute ... just makes me want to go out and buy some thingamajigs ... like, ... you know, ... for everybody.

Shit is on me!


Wed, 11/30/2011 - 11:44 | 1930274 el Gallinazo
el Gallinazo's picture

Equality means equal rights under law.  This is still the case.  We Americans now all have the right to be thrown in a hole forever without charge for speaking our minds. Orwell and Kafka teamed up on this one - too absurd for one genius alone.  

Wed, 11/30/2011 - 10:58 | 1929944 Smiddywesson
Smiddywesson's picture

Like most of the debt, the derivatives have no chance of being honored.  My point is derivatives helped get us into this predicament, and they are therefore a good way to take the pulse of the patient.  That pulse rate just started racing.  Not a good sign for continued can kicking.  It ain't over yet, but I'd be surprised if it doesn't reach the climax in 2012.

Either way, do you have physical assets of real value, tradable skills or great employees that do, and like minded neighbors?  You fucking better.

Didn't you say that yesterday?  Do you block and paste?  :-)  

My plan is simple.  I stockpile guns, booze and have resigned myself to canibalism.  It's as valid a plan as any other, the food chain is assured, and nobody can smell carion on your breath if you smell like gin.

Wed, 11/30/2011 - 11:08 | 1930010 viahj
viahj's picture

but it's those cannibal shakes that give ya away

Wed, 11/30/2011 - 12:05 | 1930393 Alex Kintner
Alex Kintner's picture

Obama just solved the post apocolapse food problem. Yes we can -- put horse meat in a can.

Horse slaughter plants are legal again in the United States. Restrictions on horse meat processing for human consumption have been lifted.

Thu, 06/07/2012 - 08:08 | 2502910 Element
Element's picture

Dude, that is way out of line ... get some godamn toothpaste!

Wed, 11/30/2011 - 17:56 | 1932672 mkkby
mkkby's picture

We'll see.  Our grandparents have been saying that exact same thing since 1965.

Wed, 11/30/2011 - 10:11 | 1929667 Leopold B. Scotch
Leopold B. Scotch's picture

...when falling out of a window from a building's 80th floor, it's sheer dipshittery to conclude there never was a problem when passing the 18th floor on the way down based on the simple fact you haven't splattered on the ground yet.

Wed, 11/30/2011 - 10:12 | 1929681 Kina
Kina's picture

They reckon the can dig a hole faster than you can fall.

Wed, 11/30/2011 - 10:21 | 1929758 XitSam
XitSam's picture

+ 9.8 m/S2

Wed, 11/30/2011 - 10:35 | 1929816 Shocker
Shocker's picture

Amazing times, Last thng I heard is recession is over, banks are good. All of a sudden a Banks are downgraded and Fed is pumping more money. When does it end?


Wed, 11/30/2011 - 11:04 | 1929981 Smiddywesson
Smiddywesson's picture

When the central banks THAT MATTER have mostly gold on the asset side of their balance sheet

+ cheap gold is no longer available/

or chaos gets out of hand

= They will pull the plug and announce a new monetary system. 

That's when the defaults happen, and that's when the average Joe gets screwed and take a big haircut.  That's when they ramp the price of gold so their assets balance their liabilities.  That's when anyone without physical gold bails out the banks and loses most of their net worth without writing a check to the IRS.

Wed, 11/30/2011 - 10:16 | 1929707 Chief KnocAHoma
Chief KnocAHoma's picture

Yes but... isn't that somewhat like a book makers balance sheet? Not all of those bets are going in the same direction, so they somewhat offset each other leaving the JUICE for the predator class.

Plus the Fed will save anyone TBTF that has made a stupid bet.

Wed, 11/30/2011 - 10:39 | 1929833 Shocker
Shocker's picture

Keep digitally printing, because there is no way to actually PRINT this much money

Wed, 11/30/2011 - 10:11 | 1929661 Leopold B. Scotch
Leopold B. Scotch's picture


Wed, 11/30/2011 - 09:43 | 1929490 Momauguin Joe
Momauguin Joe's picture

You may be right Chief. The can probably has a few more kicks left in it before it gets kicked over the cliff somewhere. As to Africa and the debt slavery machine, they're working on it (i.e. Bill Gates with his cell phone and lap top racket).

Wed, 11/30/2011 - 09:45 | 1929509 The Limerick King
The Limerick King's picture



The Kleptos can quickly change gears

Their game may keep going for years

Secure family and friends

For their greed never ends

They will rise to the worst of our fears 

Wed, 11/30/2011 - 10:12 | 1929680 Leopold B. Scotch
Leopold B. Scotch's picture

Either way, gold and silver will increasingly call "Bullshit!!" on them as we progress down this path.

Wed, 11/30/2011 - 10:17 | 1929722 Whatta
Whatta's picture

The mantra of the PIIGS and bankers...

Only I Need Know, Once I Net Kleptomania...aka OINK OINK.

Wed, 11/30/2011 - 11:16 | 1930035 scatterbrains
scatterbrains's picture




Yo the Limerick King is the baddest bitch in the land


Somebody please put a mic in his hand


with that bling on his head


let it never be said


that the Limerick king's rhymes are dead.

Wed, 11/30/2011 - 09:47 | 1929516 Robot Traders Mom
Robot Traders Mom's picture

@Chief-You are exactly right.

Nobody knows when the shit will hit the fan. In the meantime, if you have available cash, buy precious metals. This is common sense, not investment advice.

The only people that will get burned are those that trade the metals and end up with the hot potato when the game stops.

Wed, 11/30/2011 - 10:02 | 1929612 High Plains Drifter
High Plains Drifter's picture

hmmm, isn't true though that fiat has a final shelf life?    hundred  years max is what i have heard.........2013?

Wed, 11/30/2011 - 10:08 | 1929649 midtowng
midtowng's picture

Fiat didn't start in 1913. It officially started in 1971. However, it sort of started in 1933.

Wed, 11/30/2011 - 10:30 | 1929800 TheSilverJournal
TheSilverJournal's picture

The USD bubble has been forming for nearly 100 years..ever since the Fed began counterfeiting, or printing notes that were claimed to be backed by gold, when in reality there is not enough gold to back all of the notes. But, in a sense, the Fed stopped counterfeiting in 1971 when Nixon broke the link between the USD and gold. Now the Fed is printing fiat notes, backed by nothing. The USD was somewhat shored up by Paul Volker in the late 1970s and early 1980s by raising rates ahead of inflation. Then the Fed began a relentless campaign of debasing the dollar when rates were kept too low in the 1990's which lead to the .com bubble. Instead of allowing a real recession after the .com bubble popped, Alan Greenspan, the Chairman of the Fed at the time, dropped the Fed funds rate to below 2% in 2002 and ultimately to 1% in 2003.  These ultra low rates brought mortgage rates down which helped drive up the price of real estate, leading to a real estate bubble.   After the bursting of the real estate bubble, Ben Bernanke brought the Fed funds rate to near 0% where they have remained for nearly three years and the USD will soon pay the ultimate price for Bernanke's and Greenspan's mistakes.

Wed, 11/30/2011 - 10:37 | 1929825 TeamDepends
TeamDepends's picture

What you are trying to say is that we have been getting bungholed for quite some time, yes?

Wed, 11/30/2011 - 10:55 | 1929923 Greenspan Shrugged
Greenspan Shrugged's picture

Africa is the most exploited continent in the world.  I think they've got that covered.

Wed, 11/30/2011 - 12:52 | 1930842 Triggernometry
Triggernometry's picture


If one were safely outside the event horizon, and threw something into a black hole, it would appear to fall forever, although the actual plummet is fast and violent(tidal forces tear the object apart before it even gets close). So whether or not the can is actually kicked indefinitely, money interests will try damn hard to make it appear that way.

Wed, 11/30/2011 - 17:58 | 1932686 mkkby
mkkby's picture

Uranus blew out thier credit on cheap Neptune-made laser blasters.  But I hear Alpha Centauri will soon bail them out.

Wed, 11/30/2011 - 09:37 | 1929447 Sudden Debt
Sudden Debt's picture

Typical.... the man have to pay and the woman from Venus are looking the other way....

that pretty much sums up every date I ever had....


Wed, 11/30/2011 - 09:43 | 1929488 chumbawamba
chumbawamba's picture

Indeed, Mars, the God of War, shall send us unto deliverance.  Of course, "Mars" is "Wars" upside down and inside out.

Mene mene tekel upharsin.

I am Chumbawamba.

Wed, 11/30/2011 - 09:44 | 1929497 chumbawamba
chumbawamba's picture

Oh, and look: your icon is a mushroom cloud.  How ironically coincidental.


Wed, 11/30/2011 - 10:24 | 1929719 bonderøven-farm ass
bonderøven-farm ass's picture

Mars, God of War?  Naw.  My local Congressional candidate has a plan, and he's likely to's a short snippet of our exchange........:

Me: " There are two ways out of our current financial crisis......Print or default. What's your stand?"

Dr. D: " Concerning the national debt, I must disagree with the idea that there are only two choices. We certainly cannot keep printing. It is not now and never has been a cure, not even a panacea, for any nation with substantial debt. As an advocate for Austrian-school economics, I believe printing to have the exact opposite effect. Repercussions are inevitable with printing, geometrically in kind. As for default, the argument has merit but only in theory. It would take a worldwide brain trust of like-minded and correct (Austrian-school) economists bolstered by governments willing to do right things. In reality, these things do not exist.

There is a third option. I believe we must have a balanced budget, and I support a return to 2007 spending levels FOR A START. I will vote for any balanced budget plan, including (but not necessarily limited to) Cut, Cap & Balance or the Penny Plan (Connie Mack/Rand Paul proposal). Rather than defaulting or printing, we can cut spending, reduce the size and cost of federal government, raise federal revenue by reforming the tax code (on an interim basis, with lower corporate and personal rates, and elimination of special interest exemptions/loopholes), pay the interest on the debt, and fund the necessities. This will take determination and many more like-minded Congressmen, as well as a President willing to sign the necessary legislation."

Wed, 11/30/2011 - 10:22 | 1929761 Chief KnocAHoma
Chief KnocAHoma's picture


You are one of my favorite posters. I admire your style. Simple, short, concise and always with your classic signature. In fact, I rarely immulate anyone, but I often sign off with,

I am The Chief

Wed, 11/30/2011 - 10:50 | 1929855 CPL
CPL's picture


?u?op ?p?sdn ??? s??? s? ??? ?o po? ??ou s,?? ou



I was hoping the upside down text would work.

 Let's try Zalgo

C?????r???a???????z????????y?????????? ????t?????????????i?????m??????????????e?????????????!!?!?????????????

Wed, 11/30/2011 - 10:07 | 1929636 midtowng
midtowng's picture

A global central bank bailout of the banks is BULLISH! Even more bullish than it was yesterday before the global bailout.

Wed, 11/30/2011 - 09:19 | 1929363 Sudden Debt
Sudden Debt's picture

it's up and down... the only possitive side for me it that the euro is going down the drain...


Wed, 11/30/2011 - 10:00 | 1929604 Zero Govt
Zero Govt's picture

Benny thinks his dick is bigger than the economy... what a twat QE1, QE Lite and QE2 proved he's packing a maggot (3 flops, let's try 4 in a row)

the hyper-deflation going on in the (credit card) economy will smash Bennys futile dick-waving attempts to reflate. The total failure of Bennys reign of ineptness and impotence is assured 


Wed, 11/30/2011 - 10:57 | 1929943 CPL
CPL's picture

6 times


Emergency Funding in 2008



QE Lite

QE 2

Pension readjustment

Now this shit...and that's just the US.  Europe has been a printing mill for three years silently.


If there is anyone in the CIA/FBI/NSA/DHS reading this, you've all been had.  Only your groups have the ability to get close to the source of the problem and remove it.  Since most of you will be eating dog food with a stick in a year, you might as well make your last bits of your careers mean something and fight.  We all understand now that this event has now removed the idea of a soft landing, that is now completely off the table.

So if you are human and have people that you love, you might want to start gathering your project staff together as fast as possible to counter the wackadoos that have now destroyed the last semblance of order in the economic universe on our planet.

Either way now, inflation, will be a rough ride for everyone here all 7 billion of us.  Be careful, be safe and be brave.

Wed, 11/30/2011 - 18:08 | 1932732 mkkby
mkkby's picture

That's right, spooks.  If you're watching these threads (and we know you are), your pensions and your family's savings are as doomed as Bin Laden's frozen corpse.

For God, country, self and family -- lop off the heads of the global elite that are using you, and are about to discard you like a used hanky.

Wed, 11/30/2011 - 09:20 | 1929366 SilverIsKing
SilverIsKing's picture

No doubt that they'll choke off a metals run if they see it getting away from them but this action takes us that much closer to the end of the fiat road. This is why stacking physical is so important, especially when it's on sale like it's been for months now.

Wed, 11/30/2011 - 10:27 | 1929783 dereksatkinson
dereksatkinson's picture

On this past run, physical outperformed.  Now margin requirements have been upped enough on physical that we should now see the shares outperform on this next run. 

Wed, 11/30/2011 - 09:22 | 1929374 beaker
beaker's picture

Look the hell out if this stunt fails....

Wed, 11/30/2011 - 09:28 | 1929398 CPL
CPL's picture

It didn't work that last six times they did it, what makes you think this time will work.


Definition of insanity is repeating the same mistake over and over again.  This has that in spades.  So glad I'm not in anything but farm land and PM's.


Good luck to all

Wed, 11/30/2011 - 09:36 | 1929443 qussl3
qussl3's picture

Last time round the buzz lasted the entire period of pumping.

This time there doesnt seem to be any explicit duration stated.

So my guess is till after elections.

Wed, 11/30/2011 - 10:11 | 1929670 Smiddywesson
Smiddywesson's picture

Yes, or at least until the dollar bottoms and it says to the Euro "tag, your it."  It was so clear when we hit the top of the channel that the dollar would fall and stocks and PMs would rise (again), but do I take the trade?  Nope.  Too busy watching Europe, like the bankruptcy of a continent has anything to do at all with a market that is not a market.  I'm on trading probation for this (again).

Wed, 11/30/2011 - 10:16 | 1929715 The Fonz
The Fonz's picture

Yeah, I'll join you in the time out corner. I should have seen the dollar top, it was plain as day.  I can't believe I didn't realize that the insiders had been informed last weekend of this.  Two 30 pt ES moves in a week, in the middle of the night, shit like that hurts.

Wed, 11/30/2011 - 10:20 | 1929752 qussl3
qussl3's picture

I learned never to be more than quater risk short going into any kind of banner event.

Fucktard pols and CBs have those days marked as bear rape holidays.

Wed, 11/30/2011 - 09:45 | 1929502 Momauguin Joe
Momauguin Joe's picture

"if" ?

Wed, 11/30/2011 - 09:49 | 1929533 Nascent_Variable
Nascent_Variable's picture

Failure is inevitable.  Bailouts don't change the fundamentals.  Bailouts don't make Italy's and Greece's problems disappear.

This is more Keynesian fantasy economics - keep printing and borrowing and papering over the holes until the miracle unicorn boom comes and saves us all.

Wed, 11/30/2011 - 10:07 | 1929642 kralizec
kralizec's picture

Postponing the pain is all they got in their bag, nevermind that when the fit hits the shan, the pain will be so great the numbness will be a blessing for many.  PM rules!

Wed, 11/30/2011 - 09:30 | 1929412 s2man
s2man's picture

Not for me, Turd. I am buying more silver this afternoon.  I enjoy the artificially low prices as I continue to stack.

Wed, 11/30/2011 - 10:10 | 1929659 kralizec
kralizec's picture

I'll go along with that!

Wed, 11/30/2011 - 10:39 | 1929831 I Got Worms
I Got Worms's picture

Yessiree!! Today's payday, and as soon as I can sneak out of the office, I'm headed down to the coin shop to see what I can afford.

It takes all sorts of mental restraint to not get an erection as I hand over green paper, and get beautiful, heavy silver coins in exchange!!

Wed, 11/30/2011 - 09:39 | 1929467 johngaltfla
johngaltfla's picture

An almost 100% duplication of 2008:

11.30 Liquidity Swap Announcement: A Repeat of 2008
Wed, 11/30/2011 - 10:00 | 1929600 qussl3
qussl3's picture

We should get one more flush in the PMs come Jan, if things play to type.

COT reports getting interesting too.

Only thing is we are one year out of sync with elections.


Wed, 11/30/2011 - 10:15 | 1929701 johngaltfla
johngaltfla's picture

I think PMs decline in December then rally like a scalded dog in February. Ireland will collapse by then causing a rush to safety in the dollar and PMs.

Wed, 11/30/2011 - 11:36 | 1930216 sleepingbeauty
sleepingbeauty's picture

Yeah, it seems to me that this bail out kinda shafts Obama. The sheeple will have long forgotten this "save" by the time we get to the polls.

Wed, 11/30/2011 - 11:43 | 1930260 CPL
CPL's picture

What save?


8 dollar a gallon gas?

10 dollar a pound ground beef?

Worthless savings? 


Imagine all those poor fuckers trapped in an IRA, RRSP or whatever the pension savings scheme is.  By the time they get into position to put that money to use it'll be worthless.  A lot of hardworking people are going to get badly hurt by this.

Those without the where with all to save or make arrangements for a savings plan for retirement, the grasshopper lifestyle just got more expensive.  A lot more expensive.

Wed, 11/30/2011 - 10:54 | 1929916 Rumpelstiltskin
Rumpelstiltskin's picture

Nice catch. Thank you.

Wed, 11/30/2011 - 09:42 | 1929479 razorthin
razorthin's picture

We shall commence moving beyond the fulcrum now to oxo

Wed, 11/30/2011 - 11:28 | 1930063 CPL
CPL's picture

it so frustrating isn't it.


The whole time we're sitting here reversing the provided information so we can figure out how TPTB conjure the numbers out of thin air.  Now this.


Again this.

Wed, 11/30/2011 - 09:08 | 1929309 Mad Marv
Mad Marv's picture

A Global Tax on the American Sheeple.

Wed, 11/30/2011 - 09:45 | 1929503 CPL
CPL's picture

A tax on us all actually.  Look at PM's.  All of them.  Food, Oil, metal...


WTI is going to break us.  So go fill the tank now.

Wed, 11/30/2011 - 10:04 | 1929626 -273
-273's picture

Exactly, once again wall street and the banks get bailed out, everyone else gets f%^&£ed as we have to pay higher prices on everything essential.

Wed, 11/30/2011 - 10:33 | 1929813 logically possible
logically possible's picture


This is the least we can do, to help smooth out  this little bump in the road of global financial miss hap. Again.

Wed, 11/30/2011 - 09:09 | 1929315 Harlequin001
Harlequin001's picture

Just like 1920's Germany really, only much, much better, if you're holding gold bullion that is...

Wed, 11/30/2011 - 09:13 | 1929318 slaughterer
slaughterer's picture

Once again, the adults in the world (CBs) save the day as politicians act like children.   6 bazookas loaded and ready.  

Wed, 11/30/2011 - 09:29 | 1929406 BoNeSxxx
BoNeSxxx's picture

Why junk this guy?  Don't hate the player people, hate the game.  He is right (in a sense).

The CBs are ACTING.  In their own collective self interest, to be sure, but they are CALLING PLAYS.

The flacid, chalky cadavours masquerading as politicans are sitting on their arses sucking on the tits of fuckshites NOT to play AT ALL.  They are working in their individual self interest but the currency of their trade is your sovereignty.

I say hang the politicians first.  The you can't really fault the money changers for being, well,... money changers.

Wed, 11/30/2011 - 09:32 | 1929423 Messianic
Messianic's picture

I understand your sentiment, but you're excluding the fact that the guy said the CB's had to "save the day."  They aren't.  They're saving today and damning tomorrow.


Sure, they're acting - they're doing what seems rational to them - but they're not saving anyone but themselves.

Wed, 11/30/2011 - 09:38 | 1929457 qussl3
qussl3's picture

I know i'll get junked no end for this.

But do you propose they willingly sacrifice today and themselves to save tomorrow?

They aint saints, dont expect them to act like one.

Wed, 11/30/2011 - 14:44 | 1931511 Messianic
Messianic's picture

I won't junk you for it, but you're misinterpreting what I said.  I never said I expected them to be utterly altruistic - I just said they think they're saving themselves and many others - they're just saving themselves and those closest to them. They're ruining life for nearly everyone else.

Wed, 11/30/2011 - 10:39 | 1929797 Smiddywesson
Smiddywesson's picture

Great conversation.  I'll play devil's advocate.  Given that central banking and corruption destroyed the system A LONG TIME AGO,  and we are past the point of no return, I would imagine the central bankers view themselves as trying to salvage what they can from a sinking ship.  There are going to be winners and losers in this effort.  They are stacking gold, and foreign currencies will no longer cut it as an asset on their balance sheets.  Trade deficits will henceforth be settled in gold, just like they used to be and just like Greenspan has recently suggested. 

With that said, the people who are stacking gold will be the winners in the new system, because they are going to have to ramp the price of gold to make this work.  That means the winners are the central banks and the people buying in China and India, and the losers will be the populations of the West, where there is an effort to discourage people from buying physical.  This will better balance our standards of living and create a more workable field upon which to rebuild global trade. 

The central bankers don't see this as a betrayal.  They don't have very many options.  We passed the point of options long ago.

Edit:  And yes, they are supervillains.

Wed, 11/30/2011 - 10:55 | 1929925 LawsofPhysics
LawsofPhysics's picture

Perhaps we should all just see if anything really happens here.  I mean, why do anything when simply saying you could something is working so well?

Wed, 11/30/2011 - 09:33 | 1929429 GeneMarchbanks
GeneMarchbanks's picture

Just to 'explain': He got junked because his comment is garbage.


Wed, 11/30/2011 - 09:38 | 1929459 Little John
Little John's picture

Jesus didn't like money changers...just sayin'

Wed, 11/30/2011 - 09:47 | 1929518 razorthin
razorthin's picture

What came first, the enabler or the enabled?  hint:  there were thieves before their were politicians.

Wed, 11/30/2011 - 10:06 | 1929634 JungleJim
JungleJim's picture

Your sovereignty only ends when you are dis-armed, keep a steady watch on who wants to dis-arm you ....

Wed, 11/30/2011 - 09:31 | 1929416 Messianic
Messianic's picture

We should have a parade for the printing press...Oh how we exalt thee, oh mighty money printer.  How great thou art!

Wed, 11/30/2011 - 18:25 | 1932810 mkkby
mkkby's picture

We do.  It's the 2 month long shopping orgy that we go through every year at this time.  The mindless lemmings over the next cliff, and the next...

Wed, 11/30/2011 - 09:31 | 1929419 DogSlime
DogSlime's picture

Indeed - they have saved the day.

Tomorrow is another day, of course, and that will need saving too... and the day after that.... and the day after that.

How many days can the CB's buy us?

Good job you didn't suggest that the CB's have fixed the problem.  They're buying extra days but that just makes the eventual collapse more painful.

Shove your bazooka up your arse.  None of this CB intervention can do more than delay the inevitable.

The system is fucked.


Wed, 11/30/2011 - 10:21 | 1929632 whstlblwr
whstlblwr's picture

Really? Whose day did they save? Man trying to live at current price of gas and food? Or rich wall street licking chops for bailout?

Polling shows most Americans care more about gas and food prices than stock market. This should help Merry Christmas. LOL This is kind of bullshit that helps Ron Paul get elected.

Panicked financial market cause people to seek familiar, so vote for politician they know. But manipulation that cause expenses sky high to help bankers? We vote for shake up.

Wed, 11/30/2011 - 10:55 | 1929922 end da fed
end da fed's picture

oops, i was off by a couple pennies last year... this time we'll never see a gallon of gas under US$3.00 again

Wed, 11/30/2011 - 10:03 | 1929621 agent default
agent default's picture

They are not saving anything.  They are kicking the can by debasing the currency.  In the end the day of reckoning will arrive with more zeroes attached to the bill.

Wed, 11/30/2011 - 09:11 | 1929323 ArkansasAngie
ArkansasAngie's picture

Liquidity problems ... that's a laugh.  Insolvency arseholes.  Come on ... go ahead and make payments with current income. 

Capital shortfall in another word for being underwater. 

Negative net worth is a bitch.

Wed, 11/30/2011 - 10:56 | 1929937 Sunset chaser
Sunset chaser's picture

The only thing that pisses me off about this is that I don't have my own liquidity wand to wave around and let me immediately capitalize on this this latest market-moving blunder!!!

Wed, 11/30/2011 - 09:16 | 1929343 1000pips
1000pips's picture

Euro/USD to $1.40 in a week. I told all of u that the end of the world Never happens. Don't short the Money Printer's.

Wed, 11/30/2011 - 09:50 | 1929538 Hober Mallow
Hober Mallow's picture

These fckn keynesians will not leave someone short the markets in peace.

Just like Michael Corleone says:

"Every time I think I'm out, they pull me back in."

Wed, 11/30/2011 - 09:56 | 1929575 1000pips
1000pips's picture

The Euro is too integrated and must be healthy for GERMANY to sell her products to the other Broke European countries. This is why the Euro was created to begin with. It will hit $1.40 in a week. Merry Xmas.

Wed, 11/30/2011 - 10:59 | 1929951 LawsofPhysics
LawsofPhysics's picture

"It will hit $1.40 in a week",  sure and be right back down a month later.  Range trading baby, why should TPTB actually do anything when simply saying they could do something is working so well?  Boy the bullion is shining brightly now, Merry Christmas indeed.

Wed, 11/30/2011 - 09:55 | 1929571 razorthin
razorthin's picture

Oh how we DO short them.  In GOLD fool!

Wed, 11/30/2011 - 10:19 | 1929744 economics1996
Wed, 11/30/2011 - 10:54 | 1929913 Sunset chaser
Sunset chaser's picture

It's not a bailout, it's an admission of an emergency at the global level.

Banks are broke and broken.

Wed, 11/30/2011 - 11:12 | 1930028 SteveNYC
SteveNYC's picture

The best part: "promote the extension of credit to U.S. households"


If you are in debt, they are never going to let you OUT of debt. Infinite debt servitude, bitchez.

Wed, 11/30/2011 - 11:48 | 1930266 epwpixieq-1
epwpixieq-1's picture

If considered that the next year US has about 4T funding needs, 2.6T bond maturity and 1.6T deficit, it makes sense to flood the markets with $$$ liquidity in order to get it back the next year. How is that about helping the brothers in need, I think more like, helping US for the next year.

Wed, 11/30/2011 - 09:03 | 1929289 FoieGras
FoieGras's picture

Melt up 30 points. Then melt down 60. Rinse and repeat.

Wed, 11/30/2011 - 09:12 | 1929327 beaker
beaker's picture

Could be a move to accommodate the Neo-Euro as Act 2.

Wed, 11/30/2011 - 09:04 | 1929292 Oztralian
Oztralian's picture

Exactly why the irrationality by most commenters on this site is nothing more than odd-lot selling at its finest.

Wed, 11/30/2011 - 09:07 | 1929306 algol_dog
algol_dog's picture

You got that right!

Wed, 11/30/2011 - 10:04 | 1929624 The Deleuzian
The Deleuzian's picture

This will most likely last into the New Year 'Aussie'...You can make $ irrationally as well...

Wed, 11/30/2011 - 10:10 | 1929657 Oztralian
Oztralian's picture

come on now, you've got to do more junking to make that (red) match up with your FAZ cost basis.

Wed, 11/30/2011 - 10:24 | 1929769 The Deleuzian
The Deleuzian's picture

I don't 'red''s a couple greenie's for the thought though...As far as FAZ is concerned...I've never been long or short any bank stocks or ETF's as well...Not my 'expertise' per se....

Wed, 11/30/2011 - 10:12 | 1929676 jcaz
jcaz's picture

LOL- amusing from an Austrailian-  the odd-lot of people on this Earth......

Wed, 11/30/2011 - 09:05 | 1929293 vegas
vegas's picture

Buy ink futures with both hands. Does the word "print" mean anything to you?

Wed, 11/30/2011 - 09:22 | 1929373 GeneMarchbanks
GeneMarchbanks's picture

'This means that the global situation is far, far more dire than the talking heads have said. Luckily, when this step fails, which it will, Mars can always come and bail us out.'

"Print" means little. If there is still anyone out there who is confused about the policy response, this should be a wake-up call. That being said, it only cements what is obvious: a global standstill.

Forget all this. War is next and I don't mean 'currency' either...

Wed, 11/30/2011 - 09:05 | 1929294 knight99
knight99's picture

holy fk

Wed, 11/30/2011 - 09:06 | 1929295 lolmao500
lolmao500's picture


Wed, 11/30/2011 - 09:11 | 1929321 BigJim
BigJim's picture

Stop buying dollars and you might just get a visit from NATO's 'freedom enforcement team'.

Wed, 11/30/2011 - 09:16 | 1929346 Sean7k
Sean7k's picture

LOL. Sounds like a new line of toys or a new saturday morning cartoon. You might have something here Jim.

Wed, 11/30/2011 - 09:28 | 1929400 LawsofPhysics
LawsofPhysics's picture

Great comment,  if you like the response of NATO's freedom enforcement team, just wait until you get a load of the BRIC's "liberation army."

Wed, 11/30/2011 - 10:22 | 1929763 my puppy for prez
my puppy for prez's picture

Ya, ask Muammar how that works!

Wed, 11/30/2011 - 09:37 | 1929449 monkeys.pick.bottoms
monkeys.pick.bottoms's picture

I bought some dollars because I need paper as long as it works. I'm not going to waste real money on something that can be bought with paper. Do you want me to hold on to even more worthless local currency? And yes, I'm not particularly bright:D

Wed, 11/30/2011 - 09:39 | 1929469 Sudden Debt
Sudden Debt's picture

It's like choosing weather to burn your money or just throw it away :)


Wed, 11/30/2011 - 09:08 | 1929296 longonSpam
longonSpam's picture

When this liquidity gets to households y'all let me know..

Wed, 11/30/2011 - 09:25 | 1929387 pupton
pupton's picture

It will, in the form of inflation.

Wed, 11/30/2011 - 09:30 | 1929413 LawsofPhysics
LawsofPhysics's picture

Unless your monthly expenses have been going down, it already has.  Contrary to the Bernanke, energy, water, and food do count unless you can eat i-pads.

Wed, 11/30/2011 - 12:17 | 1930493 Spastica Rex
Spastica Rex's picture

Fat Americans could live on iPads for a long time, if need be.

Wed, 11/30/2011 - 09:39 | 1929468 longonSpam
longonSpam's picture

The BenBernank single mandate at its finest, keep the S&P over 1200. He don't care if a loaf of WonderBread is the same price.

Wed, 11/30/2011 - 09:06 | 1929297 fonzanoon
fonzanoon's picture

Bail out of FAZ and SKF maybe. I am going to. Holding these things is like trying to fight king kong.

Wed, 11/30/2011 - 09:14 | 1929337 SilverIsKing
SilverIsKing's picture

I knew the CBs would come through for me by allowing me to get out of my long EURUSD position at a nice profit. Thanks Ben.

Wed, 11/30/2011 - 09:59 | 1929598 Carlyle Groupie
Carlyle Groupie's picture

FAZ is FADE, or FAZED. Where's Homer now bitchez!

Wed, 11/30/2011 - 10:43 | 1929850 fuu
fuu's picture

Your avatar is a little plain, it needs some color. Perhaps a nice fuzzy pink sweater vest.

Wed, 11/30/2011 - 10:40 | 1929835 bsdetector
bsdetector's picture

There is no way to win. Maybe we should just take our ball and go home. The only way to fight these forces is to stop playing the game.

Wed, 11/30/2011 - 09:07 | 1929299 It is a bargin ...
It is a bargin my friend's picture

Gold just got the memo

Wed, 11/30/2011 - 09:08 | 1929310 EscapeKey
EscapeKey's picture

You must be fucking crazy not to hold physical gold by this stage of the game.

Wed, 11/30/2011 - 09:45 | 1929504 Sudden Debt
Sudden Debt's picture

You do realize you just insulted 99.99998% of the world population right? :)


Wed, 11/30/2011 - 12:18 | 1930502 Spastica Rex
Spastica Rex's picture

Or fucking poor. Wait - that's me!

Wed, 11/30/2011 - 09:07 | 1929301 EscapeKey
EscapeKey's picture

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing coordinated actions

Or, in short form; "The Bank of International Settlements today announce actions..."


Wed, 11/30/2011 - 09:21 | 1929369 hourglass86
hourglass86's picture

So true.. Central Banks are just pawns as well in this global scam. 

Wed, 11/30/2011 - 09:07 | 1929302 scatterbrains
scatterbrains's picture

anybody short into this thin volume end of year is going to get blown out.

Props out to the *AXE man?*  for that call on C,  despite the heat you took from the peanut gallery..I jumped on your coat tails after a glance at the charts.  Also added YINN, COWL and TBT.

I just have to decide if I should hold into Jan 2012 are dump out in a few hours.



Wed, 11/30/2011 - 09:28 | 1929397 pupton
pupton's picture

One of these days TBT is going to make some of us very rich. That day has not come yet, and I have taken a bath so far. When the us debt problem become the focus like Europe is now, TBT will be the thing to own.

Wed, 11/30/2011 - 11:34 | 1930200 Smiddywesson
Smiddywesson's picture

They are going to create another October rally so everybody  makes their year.  Every hedgie who missed October is all in on this one.  I'm suprised Tim and Ben didnt' take out billboards announcing this one.

Wed, 11/30/2011 - 09:07 | 1929303 cossack55
cossack55's picture

Where does the line form for the next-to-free money.  Maybe I will start an Occupywaitingline movement.

Wed, 11/30/2011 - 09:09 | 1929304 GeneMarchbanks
GeneMarchbanks's picture

This won't help short term and I'm skeptical about the longer term as well. Unintended consequences will be epic.

Wed, 11/30/2011 - 09:08 | 1929307 chaartist
chaartist's picture

WTF? being a trader its not easy, I can take this shit but not professionals are fucked right in the ass.

Wed, 11/30/2011 - 09:10 | 1929319 EscapeKey
EscapeKey's picture

Professionals? Investors are merely players at the global financial roulette table, the banks are the house, and the house always wins in the end.

It's a fucking scam.

Wed, 11/30/2011 - 09:21 | 1929370 SilverDOG
SilverDOG's picture

- Above the Law

"Now that, you can take to the bank!"

Wed, 11/30/2011 - 09:36 | 1929442 chaartist
chaartist's picture

I know its a scam :) but what can I do about that. I m in physical 70% of my assets, trading account is only to play this final end game.

Wed, 11/30/2011 - 09:12 | 1929325 Nucking Futs
Nucking Futs's picture

no one ever said it was easy.  this face ripping melt up just handed a lot of people their ass for breakfast.  had sell limit orders on /es at 1225, didn't actually think it'd hit...

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