Bernanke Testimony Before Joint Economic Committee Live Webcast: More Operation Twist Hints

Tyler Durden's picture

Headlines from the Bernanke speech:


But the kicker, as we explained a few days ago, is the Chairman's hint that more QE would come in the form of additional Twist, not LSAP:

In addition, the Federal Reserve has been conducting a program, announced last September, to lengthen the average maturity of its securities holdings by purchasing $400 billion of longer-term Treasury securities and selling an equal amount of shorter-term Treasury securities. The Committee also continues to reinvest principal received from its holdings of agency debt and agency mortgage-backed securities (MBS) in agency MBS and to roll over its maturing Treasury holdings at auction. These policies have supported the economic recovery by putting downward pressure on longer-term interest rates, including mortgage rates, and by making broader financial conditions more accommodative. The Committee reviews the size and composition of its securities holdings regularly and is prepared to adjust those holdings as appropriate to promote a stronger economic recovery in a context of price stability.

Full testimony here

Finally, judging by the testimony word cloud, this is nothing but a scapegoating session: with Fiscal the most used word, it is clear what is going on: "It is all Congress' fault"

At the rate the market has soared in the past 3 days, one would think Bernanke has already formally announced QE. Instead we have had a rumor, a hint, and a headline. All of this was sufficient to push the DJIA up 500 points. Problem is there has been nothing official from the Fed. Which is why everyone will be looking for the Chairman to leak something at the 10am hearing before the Joint Economic Committee. Otherwise, if nothing comes now, and nothing comes on June 20, we may be looking at another deja vu event from 2011: namely the August 2011 market crash.

From C-Span

Federal Reserve Chairman Ben Bernanke goes before the full Joint Economic Committee for a quarterly hearing to review the economic outlook for the nation.


Committee Chairman Senator Bob Casey (D-PA) is expected to press Mr. Bernanke on possible action by the Federal Reserve to stimulate the economy in light of last week’s unemployment numbers and recent global economic uncertainty.


In an interview with C-SPAN, Joint Economic Committee member Rep. Mick Mulvaney (R-SC) said the GOP will question Chairman Bernanke on the possibility of monetary easing. He also stated his plan to speak with the Fed Chief about the negative implications of inflation.


Bernanke is expected to reiterate his call for Congress and the Administration to work on long-tern legislation to lower the deficit. He told a House panel in February that the economic recovery is "frustratingly slow" which should "prompt Congress to enact policy that will address the crisis."


The Joint Economic Committee, established under the Employment Act of 1946, was created by Congress to review economic conditions and analyze the effectiveness of economic policy.

Live webcast below starting at 10 am

Full Bernanke speech:

Bernanke Speech 6.7

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tom a taxpayer's picture

Committee Chairman: Before your opening statement we would like our Congressional barber to shave off your beard.

Bernanke: May I ask "Why"?

Committee Chairman: Transparency, Mr Bernanke. You have stated many times how you want to make the Federal Reserve more transparent. We're here to help you. Your beard can hide facial tics and twitches that are signs of hesitancy and lack of transparency.

Bernanke: Hmmm…well…I…er...

Committee Chairman: Electric shaver or straight razor, Mr. Bernanke?

King_of_simpletons's picture

Bernanke: Everything is fine. Spend Spend Spend. Plenty of jobs, economy is booming.

Congress: Thank you Mr. Chairman.


Really, a PM raid during Heli Ben's speech? Never seen that before.  /sarc

smlbizman's picture

this guy sounds just like the handicapers at the derby, or the guy telling you which teams will be in the superbowl, or the nba experts....and they all have 1 common feel to them.....and that is they are rarley correct.....

Paul Atreides's picture

We're heading for a fiscal cliff AAAhhhhahHH fire up the ROFLCOPTER!!!!

Psst.... hey...ZHers.... gold and silver will rebound to post raid prices before the end of today ;)

redpill's picture

He's a little mixed up.  We went off the fiscal cliff years ago.  What's coming in 2013 is THE GROUND.




derek_vineyard's picture

Bernanke's in a good mood.  He's blaming the politicos and he's correct.  He's mocking them and looks like he's tired of taking all the heat for political folly........and no longer wants to be the dupe and answer the same kick the can questions over and over and over from the politicians that create the problems.

AldousHuxley's picture

Bernanke did all he can with QEs and Twists and ZIRP......

Bernanke is tired of taking all of the heat from public while saving asses of Congress status quo.

MONETARY accomodation has been more than accomodative

Time for FISCAL policies to change.....Tax billionare money changers and and give it back to workers who will spend on housing, cars, travel, food, etc. to boost economy. Cut military, cut corporate subsidies, etc. Top 0.1% aren't spending their capital gains enough to boost consumption. Most American's savings rate is near ZERO....meaning they spend all they get.....not good for their retirement, but good for economy to get money flowing, create jobs, etc.


Bernanke to Congress: Get off of your high horse you idiots and give more productivity gains to average workers people to spend.

The Monkey's picture

What Bernanke really said to Congress: "We need you to do something on the fiscal stimulus front before we go balls out."

Actual quote: "I'd be much more comfortable if Congress would take some of this burden from us and address those issues," Bernanke said during a question-and-answer session.

Disenchanted's picture






Herr Chairman is unhappy with the current crop of politicos he and his merry band of bankster-gangsters have purchased??



smlbizman's picture

i am certainly impressed with linda sanchez from cali.......fuck me...

Hugh_Jorgan's picture

Benny to advisor: "psst, how do I say that nothing is changing except that we aren't changing anything for a longer period of time?"

Clueless Economist's picture

I am expecting the Chairman to tell the truth today.

Cognitive Dissonance's picture

Ben "The Candy Man" Bernanke will not disappoint the market. He just might not give out the sweets today.

Manthong's picture

He and his ilk have destroyed the fundamentals and consequently the technical aspects of what used to be a somewhat free market and is now just a central bank racket.

The smug little shit controls the world until the unexpected happens and a forces cataclysmic inversion of FV and PV on him.

Schwetty Shorts's picture

He better disperse the candy before the face-eating zombie algos latch on to the remaining drunk+homeless retail investors... FFS Ben, the beard will only slow them down!!

Chupacabra-322's picture

Can someone, anyone group of honest Police/Military arrest this motherfucker along with 534 House members (excluding Ron Paul) plus 99 Senate members (excluding Rand Paul) plus a President/VP and attorney General.

Charge them with Treason, Crimes Against The American People, Crimes Against Humanity.  Have a fair trail, convict, then execute them? 

Can anyone please? 

Hello?  Anyone? 

AldousHuxley's picture

you mean like gabrielle giffords, lincoln, JFK, etc?


Politicians are there as a buffer between the real owners versus pawns. Morgans, Rockefellers, Rothschilds want you to shoot the puppets rather than the man behind the curtain.


Bernanke is controlled by white house. White house is controlled by multinational interests. Multinational interests are owned by wall st. Wall st's largest investors 1000 wealthiest families in the world.

tarsubil's picture

The weather has once again foiled Ben's plans for economic success. Damn you weather!


Let's Twist again, like we did last summer!

QE to infinity and beyond!

bigerny's picture

That depends,are his lips moving or not.

Zero Debt's picture

His mouth seems to move faster than his beard. Definitely a suspicious sign.

SeverinSlade's picture

Committee Chairman: We also need you to shave your crotch.  Those trillions of times you hit CTRL-P must be compensating for something.

Banksters's picture



Contrary to what your instincts or intellect may tell you, bailing out banks is not a form of moral hazard or cronyism.   Nor does it create an uneven playing field.  Banks, dear comrades, are necessary middlemen.   Much like the mosquito, tapeworm, or deer tick,  they are  part of the ecology of business and commerce.

azzhatter's picture

banks are merely utilities. A clearing place for transactions. The fact they have become such a large part of our economy has led to destruction and chaos. Fuck You Bernanke

walküre's picture

Every good host needs a few parasites. We're in a symbiotic relationship with our banking overlords. They get to live the "life" and we get to work for them. We should consider ourselves lucky that our parasites don't suck out every last bit of blood.

Spastica Rex's picture

Haven't yet sucked out every last bit of blood.


Schwetty Shorts's picture

Without banks there could be no Muppets... and everyone loves Muppets!

SeverinSlade's picture

Expecting Bernanke to say the Fed is concerned but must wait and see before taking further action...Translates to: Europe needs to burn before I hit CTRL-P.

slaughterer's picture

CTRL-P pre-announcement day.


Here it is:



Gold to $2000.

fuu's picture

Or a blowtorched freefall of $20...$25.

tmosley's picture

Blowtorches work well against paper with the word "gold" printed on it.  The metal, not so much.

tarsubil's picture

I think you have dysleksia. That should be 2140.

fuu's picture

Ok he said at least through 2014.

tarsubil's picture

Oh wait, my bad. That should be 4102.

beachdude's picture

Civilization technologically decends to 1024.

tarsubil's picture

NSA interference led to a duplication in the matrix.

fuu's picture


walküre's picture

Gold smash down in progress, comrade.

Al Huxley's picture

Pretty great that all it took to fix the US economy was a few words out of an economics professor.  Used to be you'd have to actually invest capital and make something, and then sell it, so much easier these days though.  God bless the FIRE economy.

walküre's picture

They frontran gold to create the illusion "gold knows something".

They're down to the lowest of the lowest tricks.

No more magic, no more POOF.

Game over and they know it. Discussed with a few buddies last night how the system is going to fail and we all (10 of us from different walks of life) all agreed. Everyone knows that the system is in its final stage.


Global Hunter's picture

I've noticed a few family and friends that a year ago found me to be a humourous oddball are actually frightened now by what is going on.  I'd agree people are figuring out that something is not right.

walküre's picture

China's move this morning and even the timing of the announcement reek of TOTAL DESPERATION.

Look at the BDI that's free falling again. And it's only June!

madmax1965's picture

Yup, same here.  Was at a party last weekend and had a conversation about the FED etc., and for the first time I was not looked at with the deer in the headlights look!  Slowly, people are waking up, what that means, who the hell knows!

AlaricBalth's picture

I'm old enough to remember a simpler time when equities were bought and sold based upon ancient metrics such as p/e ratios, PSR's, dividend yields, earnings and other microeconomic factors. Our "bible" was Graham and Dodd's Security Analysis and investment banks actually were in the business of capital formation.
I guess it's time to put myself out to pasture.