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Bernanke Testimony Before Joint Economic Committee Live Webcast: More Operation Twist Hints
Headlines from the Bernanke speech:
- BERNANKE SAYS FED READY TO ACT, REFRAINS FROM DETAILING STEPS
- BERNANKE: `FISCAL CLIFF' IN 2013 POSES A `SIGNIFICANT THREAT'
- BERNANKE SAYS U.S. BUDGET TREND `IS CLEARLY UNSUSTAINABLE'
- BERNANKE: EUROPE CRISIS IMPAIRING EXPORTS, CONSUMER CONFIDENCE
- BERNANKE SAYS EUROPE CRISIS POSES `SIGNIFICANT RISKS' TO U.S.
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:
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Hey if any of you ASSHOLE congresspeople are reading this thread I just want to tell all of you GET A FUCKING REAL JOB YOU USELESS MAGGOT MOTHERFUCKERS!!!
Cummings! OMG, another complete asshat! If I could cut my IQ down to 1/4 of actual I would still be brighter than this dickhead!
Cummings is a friggen moron. Every time I hear him speak I want to shoot my screen.
Oh, that's just raysiss! ;-)
Summary for those who couldn't be bothered to read the statement:
Dear lawmakers, the Federal deficit has averaged 9% of GDP for the past three years. Fiscal policy must be placed on a sustainable path that eventually results in a stable or declining ratio of federal debt to GDP. If not, rapidly rising levels of debt will provoke a fiscal crisis that could have severe consequences for the economy.
But a severe tightening of fiscal policy at the beginning of next year that is built into current law--the so-called fiscal cliff--would, if allowed to occur, pose a significant threat to the recovery, so....
I don't have any useful advice for you, and you might as well just keep burdening our children with ever increasing amounts of debt and hope that things somehow magically get better.
Have a nice day!
The stock market should shit it's self and jump up a 1000 points based off these "hints".
50 year debt, anyone?
Principle reduction? Oh, fuck the taxpayer some more and let douchebags squat in houses they cannot afford. Yeah, what a shock coming from a complete socialist dickhead like Cummings!
The big difference between Q2 and Q1 is that treasuries aren't looking to sell off sharply, as they were last March. What we wound up with was a huge rally in the treasuries and a stock market decline. QE is buying bonds out of the market, so they don't need to buy bonds until the sell off happens. So the next sell-off in treasuries, if its not bound to occur in a couple of weeks, depending on how the futures market shapes up prior to expiry, then you have until next September before having to make a major decision.
Operation Twist is meant to mitigate against negative nominal rates, but this won't prevent against dollar declines or ongoing sovereign debt accumulation.
Ppl are still saying that the bond bubble will burst, but you can be certain that interest rates are bound to remain low indefinitely. The big change will be that stocks will sell off sharply on any additional rise in treasuries.
The Bank Of England just announced the same thing as Bernanke, so everything on hold until September. Accompanied by a sharp sell-off in gold prices.
Everything is OK because we are ... turning Japanese...
all we need now is a nuclear meltdown.
So.....
Gold gets fucking hammered down $30 in 5 mins.
Fuck you USA and your PPT with your Exchange Stabilization Fund.
That ESF should be renamed to the COF *(Criminal Organization Fund).
Ps...
Fuck YOU little weasel Timmy G.
So.....
Gold gets fucking hammered down $30 in 5 mins.
Fuck you USA and your PPT with your Exchange Stabilization Fund.
That ESF should be renamed to the COF *(Criminal Organization Fund).
Ps...
Fuck YOU little weasel Timmy G.
It was the PPT that jerked gold higher this past week.
You really think investors left the treasury trade to pile into paper gold based on "rumors"?
The PPT is frontrunning all trades. Nobody else can win unless you take your hard earned money and convert it into something tangible and exit their system for good.
I shorted JPM at the top today. Why? Because I HATE Jamie Dimon and anything I can do to fuck that prick and the Fed over I'll do. I also have physical silver. I hope Jamie gets hit by a fucking bus.
Like the anger.
Uncertainty Shocks Strike Again
http://www.cnhedge.com/thread-7149-1-1.html
Bernake keeps looking down, he has a stock ticker tape running on his iPad. Job well done, need room for QE3...
OMG! Not Amy "Dumbtwit" Klobuchar! OMG this is a non-stop retardathon!!!
Can't...take...much...more... of.....t....th......thi.....this......&%$# &!@^@#%#%^@&@%^7%*$&$%$!!!!
This man should be in Alcatraz, not Eccles!
Does anyone notice besides the quivers and shivers, he looks tired and half there, and soggy eyed more than usual. I dont mean to exaggerate but he looks like he aged 5 years since the last newscast.
Also did he wear the blatantly iridescent green tie last time? If I was trying to convince the world that I dont print skyscrapers of fiat, I would not wear a shiny green tie for all to see.
Just saying.
wow just count the lies from the chairsatan ! Housing appears to be recovering? Where bennyfraudbucks? In your neighborhood? This is pathetic to watch.
No Ben is RIGHT!! The govt has recently classified refrigerator boxes as "single family homes" so real estate is booming now!!
Not exactly, the government says fuck you they want that cardboard box too
http://www.nypost.com/p/news/local/thieves_inflicting_paper_cut_on_bcV1e7boSnew8PS3vfClXP
wow I wonder when dogshit becomes a valuable commodity
Come on Ben you weasel motherfucker turn the markets red I'm short the bank that's attached to your asshole.
Hey any congress butthole reading this thread, YOU SUCK. Eat shit and die.
Ben: "A trillion there, a trillion here [snicker]"
did he say that ad verbatim? that would be the youtube killer clip of the year
Ha! Ha! HA!!! trillion here, trillion there!
Yeah, hilarious!
Magical.
DeMint: "You say you need us to spend more"
Ben: "Bla bla bla"
Joe Biden: "We have to spend more so we don't go bankrupt"
Why can't someone just stand up, climb over the desk shouting: Mr Chairman, you fucked up this whole fucking economy you worthless piece of shit! The people of my state hate you and your worthless criminal banks and thay have asked me to start beating your bearded face in? Why can't someone do this act of patriotism?
So let me get this right. We are heading off a fiscal cliff. We are going to have to raise the debt ceiling and print more money. The economy is still stalled.
AND... Precious metals are cratering?
I woke up in an alternate universe...
When JPM goes down so does silver and gold. When the market goes down so does silver and gold so the only place tou can play it safe is in the fraudulent fiat dollar and not metals.
Fiscal cliff is only a problem for the government. Guess what happens when government can't get funding. They shut it down.
Sanders vs Bernanke circle-jerking!
Where is all the QE? You bunch of QE whores! Where is all the tripe about "THEY GOT TO PRINT" or "THEY HAVE NO CHOICE BUT TO PRINT"?
Guess they don't "got to" do they? Told you the QE jig is up. Bernankster is not going to throw more debt after bad debt. Not unless there is a clear advantage. Right now they have the whole world enslaved to their debt machine, they own all the asset with any real value, they have the mush-minds of the masses under control. Just WHY IN THE HELL would they need to or HAVE to print more money? For you and me? So we can see some economic growth? So we can have jobs? You bunch of QE dumbasses just don't get the fact that Ben and the bank doesn't give a proverbial rat's ass about you, me, the economy, jobs, etc. Wake up, STUPID!
The Bernack almost never actually says he's going to ease. He will ease because that's was he does. Give it some time. nyquil762
Give is some time? What the hell are you talking about? Because things are bad? Because they might get worse? Because what, what, what? You are like a guy watching your house burn with a fireman in the front yard holding a water hose. You stand there watching, waiting and telling everyone, "Any minute now he is going to turn on that hose and put out my house fire." Well answer this dumbass. WHAT THE HELL IS HE WAITING FOR?
When you can tell me what Bernankster is waiting for, then I will give you some credibility. Until then all I hear from you is bbbbbaaaaaahhhhhhh.
So the Chinaman Banker Chairsatan texted from the bar last night 9pm Beijing (9am NY) that he was lowering interest rates for the Chinese debt slaves .. He probably heard in advance from the Chairsatan that the Fed ain't doing squat this time.
TOTAL AND UTTER DESPERATION.
virgil checking in.. risk off!
"BERNANKE SAYS FED READY TO ACT"
Acting (not to be confused with taking action) is his real skill.
And now we have the hints towards more war.
Que.. Don Ameche in trading places.... turn those machines back on!
Do you sleep well at night? What the fuck? You want to spoon him?
Wow, Sen. Maloney mentioned the price of gold going up! Wow! I'm shocked she even knows what gold is.
Agggghhh!!! It's the wicked witch of...
Oh, it's just Baloney Maloney! KMA!
Rep. Maloney, what a lovely one. Precious metals says "listen to this woman". And she mentioned gold...
Gold is down Maloney...maybe your handlers should do a better job briefing you.
Do the words "beat the shit out of that assfuck" mean anything here?
Carolyn Maloney. Words cannot express how worthless this POS is. How the hell does this utter and complete moron get elected?
How the hell does this utter and complete moron get elected?
By offering freebies to the feckless.
it's the sympathy vote. Her husband got blown away on the LIRR and now she's a congress critter ripping everyone off. Sounds reasonable.
Rep. Maloney, please get off your knees, wipe your mouth and excuse yourself from this meeting.
Jabba is still worried about Lehman Bros
another raid, sigh...
silver totally reversed, gold is yet to give back all of its gain since the breakout, but probably soon.
this is freaking insane.
the PMs are having a much more prolonged correction than that in 08.
another chance for china to load up gold on the cheap!
Its comedy gold, isn't it? The end result is inevitable yet they continue to give rival economies more and more buying opportunities.
Au and Ag jumped on the bad job report, because there was an assumption that QE was coming soon. Now it is clear that it is not coming soon, and it is also becoming clear that Bernanke isn't yet planning to bail out Europe. Thus, what the assumption giveth, reality took away. People who loaded up for the trade dumped it when their assumptions were proven incorrect. Just because it falls doesn't mean it's a "raid". Anyway, isn't that just the fiat price?
OT
Whalen drops ZH on BBerg
http://media.bloomberg.com/bb/avfile/Economics/On_Economy/vjD8zD8IG5b8.mp3
Time to jump in my boat and head on down to the 'barbarous relics emporium' and do a little buying. I sure hope it doesn't capsize on the way home like it always does.
Lots or sleeping trouble in DC. Mr. Burgess the Entire Financial sys. are the next Lehman bros.. sleep well.
Hinchey! Wipe your chin off!
"Why isn't Bernank in an orange jumpsuit with arm and leg shackles?"
Dead is better.
What the Fuck is Hinchey smoking???
"Something is happening here and you don't know what it is, do you Mr B?"
Hinchy you are a liar and an idiot.
Maurice Hinchey is an IDIOT....Obama loving fool.....his remarks are off the charts stupid.
The voters of Binghamton are fools for electing this asshole. I damn near can't listen to his asshole rantings
SP and Dow still green. China easing gap still unclosed. BS continues.
Some people call me Maurice!
This guy looks like a character on the Andy Griffin show, but he has touble with his big words. But, more, can't, fail, of...
Are they going to let Ron Paul ask the chairsatan a few questions? I sure hope so.
bernanke is like the doctor who tells his fucking obese patient with a heart problem, that he is fine, no changes are needed in his lifestyle. Just keep on keepin on.
Meanwhile bernanke and his staff of nurses are secretly wondering if the fat fuck will even be able to make it out to his car without dying.
Bernanke Speaks... one video comes to mind. Jonny Lang. Lie to me.
http://www.youtube.com/watch?v=3tigVYfHVmQ
NY Lib politicians like Hinchey have made the state a dump.
How come Bernak can lie to congress but baseball players cant?
He pays them more.
If I could give you +100 I would!
The Fed will not announce any easing until after the election. Wall St is supporting Romney. Wall St is the Feds pupet master. Wall St gave Bernak an order he can't refuse. NO EASING until November.
Bond market now selling off. Someone with lots of Treasuries doesn't believe Bernanke, you shouldn't either.
blah blah blah
Aargh! Ben said that keeping low interest rates for an extended period could have an effect on insurance companies and (financial companies I think he said). Nothing about savers! Aargh.
mr market tries to bribe (or cajol) him into giving them a bit more EZ money. if only we had some more EZ money we could last long enough for a real recovery to happen. otherwise you'll end up buying our worthless paper in exchange for your bonds, at some point in the future. (kinda like cosigning for your kid on a car, to keep him from driving yours) this is where the congressional GOP breaks ranks with their candidate (much as they did with Bush). but remember what happened then, the rubber stamp Congress, the Iraq war, (off balance sheet, tell me your fiscal conservatives again?) and Bernanke seems to have thrown in with Obama, but the office is pro-encumbent always and this point bears watching. will Bernanke risk deflating assets (and risk torching the mortgage market to bring down gasoline prices ahead of the election) , knowing that if it gets away from him his balance sheet (mBS) is ruined? and knowing there is almost no ZIRP left that will leviate assets once he destroys them.
after the election we should get an inflationary surprise from the Fed if this turns out the way it looks
Bernanke sees Dead Economies. And Sweden deregulates for a year.
http://confoundedinterest.wordpress.com/2012/06/07/bernanke-sees-dead-ec...
Video easily translates this testimony. http://www.youtube.com/watch?v=v2AlY17pLxo
I would add, this sound bite sums up our entire govt.
http://www.youtube.com/watch?v=vn_PSJsl0LQ
Daniel Estulin, the author of the book "club Bilderberg" says it has been decided in the bilderberg meeting to sacrifice spain . http://www.danielestulin.com/2012/06/05/bilderberg-reportinforme-2012-pa...
what do you guys think of that?
Bernanke is a fucking assclown who practices moronomics!