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As The Shadow Banking System Imploded In Q2, Bernanke's Choice Has Been Made For Him

Tyler Durden's picture





 

With the FOMC meeting currently in full swing, speculation is rampant what will be announced tomorrow at 2:15 pm, with the market exhibiting its now traditional schizophrenic mood swings of either pricing in QE 6.66, or, alternatively, the apocalypse, with furious speed. And while many are convinced that at least the "Twist" is already guaranteed, as is an IOER cut, per Goldman's "predictions" and possibly something bigger, as per David Rosenberg who thinks that an effective announcement would have to truly shock the market to the upside, the truth is that the Chairman's hands are very much tied. Because, all rhetoric and political posturing aside, at the very bottom it is and has always been a money problem. Specifically, one of "credit money." Which brings us to the topic of this post. When the Fed released its quarterly Z.1 statement last week, the headlines predictably, as they always do, focused primarily on the fluctuations in household net worth (which is nothing but a proxy for the stock market now that housing is a constant drag to net worth) and to a lesser extent, household credit. Yet the one item that is always ignored, is what is by and far the most important data in the Z.1, and what the Fed apparatchiks spend days poring over, namely the update on the liabilities held in the all important shadow banking system. And with the data confirming that the shadow banking system declined by $278 billion in Q2, the most since Q2 2010, it is pretty clear that Bernanke's choice has already been made for him. Because with D.C. in total fiscal stimulus hiatus, in order to offset the continuing collapse in credit at the financial level, the Fed will have no choice but to proceed with not only curve flattening (to the detriment of America's TBTF banks whose stock prices certainly reflect what a complete Twist-induced flattening of the 2s10s implies) but offsetting the ongoing implosion in the all too critical, yet increasingly smaller, shadow banking system. And without credit growth, at either the commercial bank, the shadow bank or the sovereign level, one can kiss GDP growth, and hence employment, and Obama's second term goodbye.

As the two charts below demonstrate, the economy's ongoing inability to create any growth in the shadow banking system, primarily as a result of the complete shut down of the securitization machine, has been and continues to be, the biggest threat to the Fed. Specifically, after hitting an all time high of $20.9 trillion in March of 2008, this all too critical source of "credit money" has collapsed by a whopping 25%: since the peak $5.5 trillion of credit, and not just any credit, but shadow, and thus non-regulated credit, has evaporated! And as Q2 demonstrated, after almost bottoming in Q1 following a decline of just $57 billion, or the smallest Q/Q decline since Q2 2008, the drop has picked up again, with a one year high $278 billion plunge in Q2.

Among the liability components of the Shadow Banking system's credit money abstractions, we look at:

  • Money Market Mutual Funds: at $2.6 trillion, a decline of $41.6 billion Q/Q
  • GSE and Agency Paper: at $6.5 trillion, a decline of $73.8 billion Q/Q
  • ABS Issuers At $2.2 trillion, a decline of $80.4 billion Q/Q
  • Repos at $1.2 trillion, a decline of $49 billion Q/Q
  • Open Market Paper at $1.1 trillion, a decline of $50 billion Q/Q
  • and these declines were offset by a tiny increase of $17 billion to $726 billion at Funding Corporations

Altogether, added across this amounts to a massive $278 billion in the second quarter, and explains why GDP, when the manipulation from the Census Bureau is eliminated would have probably declined. What is worse is that should this decline continue without an offset, there will be no economic growth guaranteed.

So where can said offset come from? Well, just as there is a shadow banking system, so there is a traditional commercial bank system with listed liabilities. To be sure, for the duration of collapse in the shadow banking system, this has been the only offset, although granted one that is not nearly doing a good enough job. Specifically, total liabilities of Commercial Banks in Q2 were $13.4 trillion, an increase of $238 billion in the quarter. Alas, this is nowhere near enough to offset the decline in Shadow Banking, having grown by "only" $2.6 trillion since Q2 2008, even as shadow liabilities declined by double this amount. Yet there was a brief saving grace came in Q1 when the spike in Traditional liabilities more than offset the drop in Shadow, as the cumulative total rose by $337 billion, the most since 2008. Too bad, however, that adding across these two categories (second chart below), we once again witnessed a decline in Q2, amounting to $40.1 billion. This explains not only why QE2 could only do so much, but why GDP growth has rolled over and is now almost certainly negative.

What is most important to keep in mind, is that Traditional Commercial Bank assets only grow courtesy of QE. And with Shadow banking continuing to implode, Commercial Banks have to pick up the slack or else... Which in turn means Bernanke has to keep pumping reserves. Whether banks use these to lend out, or to buy shares of Netflix is irrelevant: remember - America, and the entire developed world, is a credit driven system. Take away credit growth and it is game over.

Which explains why tomorrow's decision is a formality: Bernanke has no choice but to continue offsetting the relentless contraction in shadow liabilities, which as of Q2 collapsed at an annualized rate of over $1 trillion. Incidentally this, +$1, is the very minimum that Bernanke will have to bring into reserve circulation to offset the relentless deleveraging of the once biggest contributor to American growth, which ironically is now the biggest adverse factor.

That reversion to the mean sure can be a bitch.

 


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Tue, 09/20/2011 - 14:34 | Link to Comment SheepDog-One
SheepDog-One's picture

'The Chairsatans hands are tied'...OK when can we start beating him with the phone books?

Tue, 09/20/2011 - 15:37 | Link to Comment Cliff Claven Cheers
Cliff Claven Cheers's picture

This illustrates the shrinking money supply and Ben has to keep printing to offset that, hence the 2% inflation goal.  So when do we get the Hyperinflation with so much debt destruction i.e. write offs?

Tue, 09/20/2011 - 16:03 | Link to Comment nope-1004
nope-1004's picture

Are you still convinced of no QE3 SheepD1?

Greenspan showed up this morning "to get a haricut", LOL.   Wonder why Greenspan is needed?  Is Bernanke stuck?  Stupid?  Unsure?  Lacking in confidence / aptitude / fortitude / all the above?

Or... could it be that they need assistance on "how to".

LOL.  QE forever.

 

Tue, 09/20/2011 - 16:14 | Link to Comment Troll Magnet
Troll Magnet's picture

Hmm..My money supply keeps dwindling, too, but my stacks keep rising.

Tue, 09/20/2011 - 18:05 | Link to Comment kito
kito's picture

well if your stacks keep rising, and i assume they arent stacks of checkbooks, then id say your money is in fact growing. 

Tue, 09/20/2011 - 16:14 | Link to Comment SheepDog-One
SheepDog-One's picture

Yea I say Bernank disappoints. 

Tue, 09/20/2011 - 17:13 | Link to Comment max2205
max2205's picture

Fuck the consumer/saver and the consumer/saver fucks you back. Plus those that choose to retire thereby starving the beast of tax revenue.

Starve the beast....

Tue, 09/20/2011 - 17:20 | Link to Comment equity_momo
equity_momo's picture

I like your spirit but ultimately MOST consumer/savers are able to retire for the simple fact of the beast existing. We've all done far better due to the system than we would like to admit but "Lord of the flies" moment is arriving and those that feel they've paid in too much will revolt bringing with it the collapse. So the question is , are you ready? Can you exist without big brother ? ZH has more than its fair share who probably can.

Tue, 09/20/2011 - 17:47 | Link to Comment decon
decon's picture

I agree with you SD1, but I also don't disagree with Tyler's case, it's just that the political mood/climate won't support it right now.  It'll come eventually and probably not that far off because it's the least painful response for the Fed's handlers.  It wouldn't surprise me if Ben gets sacked and his replacement makes the moves.  Either way I'm locked and loaded.

Tue, 09/20/2011 - 18:07 | Link to Comment Hephasteus
Hephasteus's picture

"Or... could it be that they need assistance on "how to"."

 

Bernanke can do it. Power to the Ponzi. Keep Big Pharma Dope Alive!!

Tue, 09/20/2011 - 17:58 | Link to Comment UBIGDummy
UBIGDummy's picture

Since I am a dummy too.

Can some of you translate this for me. 

QE3 Op twist or whatever its called to be announced tommorow, UP arrow

The peeps who think its not happening DOWN ARROW

have a nice day;)

Tue, 12/06/2011 - 20:20 | Link to Comment WhiteNight123129
WhiteNight123129's picture

We won´t get hyperinflation unless Bernanke decides that the checks should stop clearing.

Tue, 09/20/2011 - 15:42 | Link to Comment trav7777
trav7777's picture

the author doesn't ever examine or ask WHY that credit picked this particular time to peak or how or why credit would come into existence.

The future is one of contraction...aggregate economic activity is CONTRACTING because the energy supply underpinning all activity is contracting.  Why in hell would credit grow?  This is not a monetary problem; the monetary effects are a symptom.

Tue, 09/20/2011 - 15:47 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Energy supply is contracting because given a choice between liquidating any inherently valuable asset by selling it and converting it to fiatski of any denomination with a painful future (thanks to The Bernanks & Trichets - and PBOCs of the world), or keeping it in the ground (where it's as safe as can be and actually has a real extraction cost), the choice is an easy one.

The Bernank broke global markets.

The Pain Train Express cometh.

Tue, 09/20/2011 - 16:27 | Link to Comment trav7777
trav7777's picture

nonsense...C&C peaked prior to the onset of the credit crisis which began due to the supply/demand imbalance on world oil markets.

Energy supply is contracting because that's what energy supply DOES once a well/field/nation/earth peaks

Tue, 09/20/2011 - 16:49 | Link to Comment M.B. Drapier
M.B. Drapier's picture

Without getting too far into the energy question ... do you accept that after total US, and world, (public + private) debt ripped up much faster than GDP for several years, a sharp reversal and return to more normal debt-to-wealth levels was inevitable at some point, for some reason, no matter what happened to energy?

Tue, 09/20/2011 - 16:58 | Link to Comment equity_momo
equity_momo's picture

The reason debt to GDP levels spiked was purely because of the energy conundrum we face. We print to grow but REAL growth is due to cheap energy production. We are running out of cheap energy production and ow watch the consequences unfold. A contracting economy

Tue, 09/20/2011 - 17:14 | Link to Comment equity_momo
equity_momo's picture

And whomever doesn't like that fact is going to go through life as a misguided, ignorant and ultimately poor individual. So buckle up.

Tue, 09/20/2011 - 17:54 | Link to Comment mkkby
mkkby's picture

Trav, you may be right.  But to be so emphatic implies confusing correlation with causation. 

MAYBE we had peak oil in 05.  Maybe we just had peak debt, or peak loose credit criteria.  Combined with very high oil prices.  There's really no way to prove peak productio was hit, because you can't separate out the effect of demand destruction from recession and the price of the commodity itself.

Tue, 09/20/2011 - 18:35 | Link to Comment equity_momo
equity_momo's picture

Empirically , population , oil production and credit have all had near identical parabolas. The necessity for each to grow exponentially relies on the other two to also grow exponentially. It's really that simple.And that's without the soil/agri issue to feed us all. But those first 3 are linked like triplets with superglue.
Oil production has stopped growing exponentially. Watch credit and then population plateau and ultimately decline next.

Tue, 09/20/2011 - 16:26 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

No, demand for energy contracts in a deflationary environment.

Tue, 09/20/2011 - 16:27 | Link to Comment trav7777
trav7777's picture

JFC...contracting energy supply IS a deflationary environment!

Tue, 09/20/2011 - 17:28 | Link to Comment Mashuri
Mashuri's picture

Priced in a stable currency, like gold, crude is really cheap. Your argument doesn't hold up: Click to see chart

Tue, 09/20/2011 - 16:01 | Link to Comment mick_richfield
mick_richfield's picture

when can we start beating him with the phone books?

 

With the what?

Tue, 09/20/2011 - 16:17 | Link to Comment LongBallsShortBrains
LongBallsShortBrains's picture

'The Chairsatans hands are tied'...OK when can we start beating him with the phone books?

I was thinking golf clubs!

Tue, 09/20/2011 - 16:36 | Link to Comment AustriAnnie
AustriAnnie's picture

Can we beat him with .999 pure gold bars instead?  Phone books are just paper.  Bernanke likes paper.

Tue, 09/20/2011 - 17:45 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

In a fractional reserve system, growth of debt is the only way to grow.  This has been true since the concept was invented.  Real growth is impossible in a credit contraction, hence, the only way to "hide the bleeding" is nominal growth (achieved through currency devaluation).  This is why physical gold is so strongly advocated here, because it's the only investment that is guaranteed not to lose real value relative to real growth.

I know this information is obvious and basically a reiteration of this post, but I think the concept still gets lost if you're not focused and paying attention (and/or are relatively new to this).  

Tue, 09/20/2011 - 19:39 | Link to Comment Blank Reg
Blank Reg's picture

OOO! We could feed Benny to Komodo dragons! Could we? Please?

Tue, 09/20/2011 - 20:51 | Link to Comment Bringin It
Tue, 09/20/2011 - 14:36 | Link to Comment Ancona
Ancona's picture

Bring it on Berspanky, I need my silver to be at 150.

Tue, 09/20/2011 - 14:41 | Link to Comment SheepDog-One
SheepDog-One's picture

Just more speculation based upon charts...one thing about the article is right that is Bernank's hands are tied, but not like the article describes...the dollar, oil, PM's, bonds, public disaproval against 'bailouts' in an election year, all those are whats really tying Bernanks hands. Its not 2009 with plenty of wiggle room anymore.

Tue, 09/20/2011 - 14:45 | Link to Comment JW n FL
JW n FL's picture

 

 

Funding Job Creation (more hand outs to Wall Street) is the most important thing to be talked about in Heavy Rotation on Cable News! "We the Sheepish Consumers) need to let the good news wash over us 4 times an hour.. it makes us feel good, no matter what the realities are!

Tue, 09/20/2011 - 14:52 | Link to Comment SheepDog-One
SheepDog-One's picture

Got to FUND job creation in the USSA! Where even their lowball attempt at how much EACH 'job created' shows it will cost around $350K per job! Whatever the jobs are, we dont know! Walkin around in a circle?

WOW I cant wait for my Gooberment created job that pays me 350K per year! Hooray!

Tue, 09/20/2011 - 15:02 | Link to Comment JW n FL
JW n FL's picture

 

It is just a way to hand more Trillion to Wall Street.. in a way the "We the Sheepish Consumers" will approve of!

Washington DC is giving MORE Trillions to Wall Street to Creat Jobs!!

Becuase the $30 +++ Trillion Dollars sitting on Wall Street is not enough to create jobs.

Becuase the Lobby.. Oops! I mean Job Creators need the Money for Jobs which is God's Work!

and MORE!! Tax Breaks!

and MORE!! Tax Credits!

and MORE!! Tax credits Monetized with Tax Dollars!

and MORE!! Subsidies!

and of course! anyone NOT on Wall Street needs to tighten their belt! Austerity is needed by you worker bees.

No need to get buzzing mad! cause this Hand Out to Wall Street is for Job Creation!!

Be a Good, God Loving American and respect the amount of God's Work going on in Wall Street Offices!

Tue, 09/20/2011 - 15:27 | Link to Comment malikai
Tue, 09/20/2011 - 15:42 | Link to Comment Cliff Claven Cheers
Cliff Claven Cheers's picture

At 350k per job, it would be better to cut out the middle man and just give transfer payments.

Tue, 09/20/2011 - 16:13 | Link to Comment Chaffinch
Chaffinch's picture

Better still at $35k per job - 10 times as many 'jobs'

Oh but - doh! At only $35k there wouldn't be enough for all those middle men!

Tue, 09/20/2011 - 16:19 | Link to Comment Cliff Claven Cheers
Cliff Claven Cheers's picture

Right on.

Tue, 09/20/2011 - 18:01 | Link to Comment depression
depression's picture

$50,000 for the worker

$300,000 for the "job creators"

In Obama terms Labor Union is synonymous with Job Creator

Tue, 09/20/2011 - 18:04 | Link to Comment mkkby
mkkby's picture

You're all looking at it wrong.  $350k is the net present value of maybe $17k per year.  Not a bad deal.  Let's stop all this red/blue fighting nonsense.  That's all it is.

Tue, 09/20/2011 - 18:02 | Link to Comment JW n FL
JW n FL's picture

 

 

malikai

Meanwhile: http://www.youtube.com/watch?v=o64Fz-KW1Dk
I understand that many of you are in fact jealous of the EBT types of people.. its ok, it is what you are capable of grasping.. but know this.. you are talking about 1% of a Problem that is 100% wide.. so by you spending all you time rolling around in this trash. so? who made this video? whos the money behind it? who wrote the song? and you give it air time why? becuase it is as imprtant as the 99% of the other welfare money spent on Wall Street? Job Creators are doing God's Work! now pay attention to the bottom feeder BullShit! Fuck you go playin the kiddie pool over at huffington post with your fellow kiddie pool friends! http://www.youtube.com/watch?v=f-4DcPPYXpw&feature=related
Tue, 09/20/2011 - 18:14 | Link to Comment malikai
malikai's picture

Dude calm down. That video is hilarious. And the comments are as well. Don't be upset that glorification of pillage is occurring. Friedman described it perfectly in the 70s. We're just seeing the logical conclusion and if we can't laugh at our own folly, well, then we're all fucked.

Tue, 09/20/2011 - 18:18 | Link to Comment JW n FL
JW n FL's picture

 

 

its not you Bro.. Sorry for the War Path!

People give that kind of shit more air play than the fact that Wall Street is spending 10 times more money of "We the People" than the U.S. Military!

and that dirves me insane..

my bad,,

I beg your forgiveness!

Tue, 09/20/2011 - 15:27 | Link to Comment Scottj88
Scottj88's picture

Full Article: http://thehardrightedge.com/currency/

Thomas Jefferson's warning the coming generations of the hidden dangers that faced America: (Source Here)

I believe that banking institutions are more dangerous to our liberties than standing armies.  If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.  The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.

--  Thomas Jefferson  (Attributed)

How the Federal Reserved Robbed the American Public, Per Jefferson's Warning: (Inflation Statistics Here)

Central Bank Established:

December 23rd, 1913.  While many congressman were at home with their families for the holidays.

First by inflation:

January 1914-September 1929, Government Reported Inflation: +74%

Then by deflation:

October 1929-December 1939, Government Reported Inflation: -19.08%

Then by new policy:

1933: US Government makes US Dollar no longer redeemable for gold bullion by American citizens, effectively removing the population off of the gold standard.

Then by Inflation again:

January 1940-August 1971, Government Reported Inflation: +193.53%

Then by more new policy: (Federal Reserve note adopts full issuing power of nation's currency)

August 1971: The Bretton Woods Agreement; Termination of the gold standard and the creation of the dollar as the world reserve currency, backed only by the trust that the Federal Government would be able to repay its accumulated debt (Wikipedia Source Here)

The chief features of the Bretton Woods system were an obligation for each country to adopt a monetary policy that maintained the exchange rate by tying its currency to the U.S. dollar and the ability of the IMF to bridge temporary imbalances of payments.

On August 15, 1971, the United States unilaterally terminated convertibility of the dollar to gold. As a result, "[t]he Bretton Woods system officially ended and the dollar became fully 'fiat currency,' backed by nothing but the promise of the federal government."[1] This action, referred to as the Nixon shock, created the situation in which the United States dollar became the sole backing of currencies and a reserve currency for the member states.

And since, much more inflation:

September 1971-July 2011 Government Reported Inflation: +453.73%

And the grand finale, unfolding in front of our very eyes:

Corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.

Tue, 09/20/2011 - 15:48 | Link to Comment IH10
IH10's picture

I tried to verify that quote from Jefferson long ago and according to snopes.com there is no proof Jefferson said it...regardless, whoever said it the message is spot on.  If Jefferson didn't say it, whoever did deserves some credit.  These pshycopaths are trying to shove us all into the cattle chute for slaughter...if it's us or them and they have all the power right now then we all know what the outcome is going to be.

Tue, 09/20/2011 - 16:13 | Link to Comment Scottj88
Scottj88's picture

Snopes.com is not what I would call a credible source.

But I get your point.

Tue, 09/20/2011 - 17:16 | Link to Comment Bob Paulson
Bob Paulson's picture

Same with pretty much every quote that was in 'The Money Masters'.

Tue, 09/20/2011 - 21:08 | Link to Comment madbomber
madbomber's picture

 

im waiting for the collateral fire max damage guy to ream my untrained american psyche into a vague, dark, hopeless world.

and rather efficiently.    whats the medicine this week, sir?

 

 

 

 

 

 

 

 

 

 

Wed, 09/21/2011 - 10:38 | Link to Comment Sathington Willougby
Sathington Willougby's picture

IH10 need to contact offline, please advise.

Tue, 09/20/2011 - 15:54 | Link to Comment chunga
chunga's picture

Thomas Jefferson neglects to take into consideration the "little" things they do that too often go unnoticed. Like this heart-warming story.

Must See Video | Paralyzed Oregon Man, Living on $22,000 a Month and Able to Pay, Fights Bank of America Foreclosure

"Galanida, 41, stopped payment in 2009, insisting a discrepancy arose in his loan after Bank of America took it over from troubled Countrywide Home Loans. Bank representatives told him to continue withholding payments while they investigated, his mother said."

"But then, without offering Galanida a workaround plan, the bank foreclosed on his home, sold it to another lender and tried to evict him. Galanida's pleas for help from federal authorities and Oregon Attorney General John Kroger haven't resolved matters."

Tue, 09/20/2011 - 18:18 | Link to Comment Dingleberry
Dingleberry's picture

One would learn more reading this page than with getting an MBA.  Sad...but true.

Tue, 09/20/2011 - 15:51 | Link to Comment nantucket
nantucket's picture

i have always wondered how that stat is mentioned,...so is it $350k to create a job for 1 year, or is it $350k to create a job for 10, 15, 20 years?

 

if it's the 1 year thing then they ought to just hand out money and it'll cost less, but if it's for a long multi-year period, then there is a time period at which it may....I reiterate MAY,...make more sense to "create" the job than just hand the money out.

i know gubmint doesn't create jobs, but since it's the language used, i figured i would humor myself by using it.

 

Tue, 09/20/2011 - 16:05 | Link to Comment unky
unky's picture

Dont agree. Hand out $50k to the worker for the first year. Then invest the remaining $300k in Gold and Silver (50%/50%) then after one year you maybe have about $400k. Pay out $50k to the worker for doing nothing and continue this scheme.

Tue, 09/20/2011 - 16:17 | Link to Comment Smiddywesson
Smiddywesson's picture

It's $350k to create one job for long enough to get the check.  Then they fire the employee.  There is no shadowy government agency to track this stuff.

Tue, 09/20/2011 - 17:05 | Link to Comment SilverDosed
SilverDosed's picture

spot on

Tue, 09/20/2011 - 16:41 | Link to Comment ElvisDog
ElvisDog's picture

I cant wait for my Gooberment created job that pays me 350K per year! Hooray!

That's not the way it works. Every job on the Federal level anyway (the only govt level I have firsthand experience with) comes with "overhead", which is typically up to or more than 100% of the salary level. The overhead goes to pay building maintenance fees, IT support fees, legal support fees, management fees, etc., etc. So for every worker bee earning his 80-100K, or whatever, there are probably half a dozen other people who are getting a piece of the total cost of that job.

Tue, 09/20/2011 - 21:27 | Link to Comment madbomber
madbomber's picture

are you saying you're a federal agent?

:)

cool.    i dont understand the anti-govt-anti-fed, mixed with full-on-federal agents-community-brotherly-love vibe, but im open minded.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tue, 09/20/2011 - 16:50 | Link to Comment Things that go bump
Things that go bump's picture

Silly SheepDog.  They aren't going to pay you 350K a year for your job.  They are going to pay you maybe $30,000 and the rest of that money is what stimulates someone to actually hire you.  The whole purpose of the program is to put money into any pocket that isn't yours.  Now go and lie down by your dish.

Tue, 09/20/2011 - 18:01 | Link to Comment mkkby
mkkby's picture

350k is the net present value of maybe 17k per year.  Looking at it that way it's not such a bad deal.

Tue, 09/20/2011 - 14:49 | Link to Comment Cleanclog
Cleanclog's picture

SD-O, another interesting angle in a development that caught my attention.  Iran may accept barter for oil from India -  dependent on good that are desireable to Iran and a minimum quality.  Sure is one way around trading in US$ or other fiat currencies.  Start of a trend?  I think yes.

Barter and gold.  Here we come as fiats circle the drain together.

Tue, 09/20/2011 - 14:54 | Link to Comment SheepDog-One
SheepDog-One's picture

And theyre rattling the sabres of war next on Iran too....the great Messiah who said the day he takes office he will end all wars, while in reality he meant to start WW3.

Tue, 09/20/2011 - 15:13 | Link to Comment Silver Dreamer
Silver Dreamer's picture

I guess it depends on his definition of ending all wars.  The next World War will indeed end all wars for a very long time.

Tue, 09/20/2011 - 15:29 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

WW1

"The war to end all wars."

President Woodrow Wilson when he adressed congress in 1917.

Tue, 09/20/2011 - 15:36 | Link to Comment malikai
malikai's picture

I know not with what weapons World War III will be fought, but World War IV will be fought with sticks and stones.

A. Einstein

Tue, 09/20/2011 - 16:21 | Link to Comment Toma Haja
Toma Haja's picture

The answer to that is obvious now.  WWIII is being fought by the central banks.

Who's your ally?

Tue, 09/20/2011 - 17:05 | Link to Comment malikai
malikai's picture

I am aligned with the trees.

Tue, 09/20/2011 - 22:06 | Link to Comment knukles
knukles's picture

Ally is a bank created amongst the amalgam of taxpayer funded transfer payments from John Q. Public to the NWO neo-Keynesian monied Campaign Contributors....
Specifically to bail out that Whatstheir fuckingname Hedge Fund that bought GMAC who just so happened to be well connected to DC's extortionists, thighe takers and dipsensers of political gifts. 

Whose your Ally?

It was your money, but no more, that's fucking who.

And not a single one of these motherfucking criminals has even yet been investigated let alone charged or sent to prison.
Great fucking country, this.

Tue, 09/20/2011 - 15:38 | Link to Comment NotApplicable
NotApplicable's picture

Since it has never really ended, technically he is still right.

Tue, 09/20/2011 - 14:56 | Link to Comment JW n FL
JW n FL's picture

 

 

Cleanclog

Iran may accept barter for oil from India

India settles in U.S. Dollars ALL Oil purchases as of now and going back..

 

http://www.youtube.com/watch?v=Nai3fIZ27eo

 

India pays 1.4 Billion US$ debt to Iran

 

 

 http://edition.presstv.ir/detail/192131.html

 

 Iran exports 2.5 million barrels of oil every day. Countries like China, Russia and Japan depend on this steady flow of oil, but paying after delivery is becoming increasingly difficult.


India currently owes Iran between five and nine billion dollars for oil received at least two years ago, but since then it's been unable to pay for it. Countries buying oil from Iran used to pay for it via European banks. That route was closed down in December 2010, so the transfer was then done through the Asian Barter Union/ Asian Clearing Union. So what is the problem? Well there's no legal reason. It's all about intimidation. The US has made it very clear that any country that's aid's trade with Iran will get the cold shoulder from Washington. Iran's economy is dependent on oil and the US and its allies, recognizing this, have clamped down on this industry. In this edition we'll be looking at the pressure Iran's oil industry faces and where this pressure is coming from.

Tue, 09/20/2011 - 15:03 | Link to Comment Cleanclog
Cleanclog's picture

All true and good info JW in FL.

But it may also set in motion unintended consequences for USA with our Iran "aid" embargo (almost always does).  One of those may be an unleashing of barter as a remembered mechanism for trade that could grow and supplant reserve currency led global trade.  Such events could occur, and faster than anyone would expect if the ongoing devaluation of fiat currencies accelerates. 

Tue, 09/20/2011 - 15:09 | Link to Comment JW n FL
JW n FL's picture

 

 

Over Land Pipe Line from Iran to China for Heavy / Sour Crude.

China has a Renminbi for Gold settlement window, up and working right now.

India is grabing Gold and not likely to trade with it. IMHO.

'Iran-Pakistan pipeline complete by 2013'

http://www.presstv.ir/detail/189430.html

 

Oops!

http://www.presstv.ir/detail/193594.html

Explosion hits Iran-Turkey gas pipeline

Israel is supporting the PPK / PKK Openly! LOL!!

Tue, 09/20/2011 - 21:12 | Link to Comment Bringin It
Bringin It's picture

Re. China has a Renminbi for Gold settlement window, up and working right now.

I think it's 2 days away.

http://www.panasiagoldexchange.com/List.asp?L-1554337002.Html

Tue, 09/20/2011 - 15:51 | Link to Comment Mactheknife
Mactheknife's picture

Sheep....did you forget?  The Bernank and the Fed are owned and operated by its member BANKS. Not member citizens.

Tue, 09/20/2011 - 19:29 | Link to Comment JW n FL
JW n FL's picture

 

 

You mean the secret share holders of the Federal Reserve Bank?

those off-off-shore irravocable trusts?

NOOOOOOOOOOOOOOOOOOOOO!

That is doing God's Work!

Be a Patriot!

Tue, 09/20/2011 - 20:33 | Link to Comment Bringin It
Bringin It's picture

Agreed about less wiggle room, hence we're having a crisis.  However, up til now, all BB's moves have been to save banks, even at the expense of doing away with things like credible markets.

Maybe the banks have been fully looted and can be tossed aside now?  Some bankers will talk /break ranks if they're thrown under the bus, won't they?

There could be a delay / head-fake, like QE Lite, but he has to print.  It's the syndicate move.

Tue, 09/20/2011 - 17:45 | Link to Comment mkkby
mkkby's picture

Doesn't this support the thesis that PMs have nothing to do with money supply?  I'm sure few here will agree, but if this article is true the hyperinflationists are wrong.  We have had deflation even with central bank printing.  Therefore PMs are just a trading vehicle, not some ultra stable value store that fiat can be measured against.

Let the fight club begin ;)

Tue, 09/20/2011 - 22:03 | Link to Comment Diogenes
Diogenes's picture

That's more or less the way I see it. I'm happy I bought gold but I expect to be even happier when I sell it. I do  not expect the present trend to continue forever, they never do.

Tue, 09/20/2011 - 14:37 | Link to Comment JW n FL
JW n FL's picture

 

 

God's Work for the Job Creators is Never Done!

More Hand-Outs Please! with a Side of Secret Loans!

Smothered in S.E.C. Shredded Investigative Documents!

Please?

Tue, 09/20/2011 - 14:39 | Link to Comment JW n FL
JW n FL's picture

 

 

And for Desert can I have some Austerity?

or..

Monetized Tax Credits?

with Subsidies on Top!!

Thanks!

Tue, 09/20/2011 - 14:38 | Link to Comment SheepDog-One
SheepDog-One's picture

So then what is the CONCLUSION of this article, QE3 will be $1 trillion dollars? Seems to fall far short of the mean prediction of $3.5. I still see no way Bernank doesnt dissapoint, expectations of the sun and moon delivered to Wall St still comes down to chump change basically....'offset what was lost in Q2'?

Ok, then what?

Tue, 09/20/2011 - 14:43 | Link to Comment Biggvs
Biggvs's picture

Exactly... This article is a bit of a tease. WTF is "Bernanke's choice that has been made for him"? I could only surmise that the conclusion is 1T or more in additional QE, with the Fed decision to proceed coming, uh, sometime or other.

Tue, 09/20/2011 - 14:44 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

OT2 tomorrow. The headline is brilliant, don't be knockin' it.

Tue, 09/20/2011 - 14:46 | Link to Comment SheepDog-One
SheepDog-One's picture

$1 trillion dollars....we're so broken now that such a STAGGERING sum of money is seen as merely banker chump change for 1 quarter, a little 'tide me over for a month or 2'...absolutely pathetic broken nation.

Tue, 09/20/2011 - 22:08 | Link to Comment knukles
knukles's picture

A mere odd lot to God's man Sachs.

Wed, 09/21/2011 - 04:11 | Link to Comment boredbutdeadly
boredbutdeadly's picture

Sheepdog-One ???

Zat U nutnfancy?

 

Tue, 09/20/2011 - 14:48 | Link to Comment treemagnet
treemagnet's picture

Yeah, what he said.

Tue, 09/20/2011 - 14:50 | Link to Comment Irish66
Irish66's picture

can't fight the treasury

Tue, 09/20/2011 - 15:33 | Link to Comment chet
chet's picture

Yeah, it's going to be hard to meet ever-climbing expectations.  There is no political support for the size of package the Fed would have to announce to really "surprise" the market.

Tue, 09/20/2011 - 14:40 | Link to Comment Corn1945
Corn1945's picture

So what does gold do when Bernanke announces he will print $1 trillion?

Tue, 09/20/2011 - 14:43 | Link to Comment SheepDog-One
SheepDog-One's picture

What do oil and all other commodities do when Bernank says 'The banks lost some money in Q2, therefore I need to print more debt on the backs of the american people to 'offset' those terrible losses for the billionaire banksters'? 

I highly doubt the words 'Im printing $1 trillion dollars' fall from Bernank's quivering lips tomorrow.

Tue, 09/20/2011 - 14:48 | Link to Comment SteveNYC
SteveNYC's picture

I agree. Gas is already between $3.55 - $4.25 in all parts of the country. A cool $1Trn will rocket this ship from $4++ to $5++ in no time, crushing the "consumer" (fuck, I hate that word) and business in general.

Bernanke will muddle and obfuscate his way through the announcement, tease and tantalize with his central banker tongue. Ultimately, he will deliver close to nothing.

Tue, 09/20/2011 - 15:46 | Link to Comment trav7777
trav7777's picture

aggregate money ISN'T expanding...it's right there to look at in the charts!

Oil is being driven by scarcity factors now.  The extra pumped in money simply moves forward the pace at which we smack into the overhead supply curve, which is inexorably declining

Tue, 09/20/2011 - 17:26 | Link to Comment Bob Paulson
Bob Paulson's picture

Oil scarcity?

Some people will believe anything.

Tue, 09/20/2011 - 16:20 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

In a true credit collapse one tril is nothing!

Tue, 09/20/2011 - 14:50 | Link to Comment JW n FL
JW n FL's picture

 

 

I wonder how much was lost?

as a percentage of how much was paid in Bonuses?

I bet its close?

anyone for the over under?

Tue, 09/20/2011 - 20:41 | Link to Comment Bringin It
Bringin It's picture

Ah, The Bonus Cabal.  Never underestimate the power and signifigance of the bonuses on the way this plays out.  Huge bonuses.  What won't they do for one more taste? 

Tue, 09/20/2011 - 14:46 | Link to Comment baseball13
baseball13's picture

Like Alice...."to the Moon!"....

Tue, 09/20/2011 - 14:40 | Link to Comment rambler6421
rambler6421's picture

Just keep on printing........so I can be rich.  Gold and silver bitchez!

Tue, 09/20/2011 - 14:50 | Link to Comment Nate H
Nate H's picture

what will you do with that wealth, out of curiousity?...

Tue, 09/20/2011 - 14:55 | Link to Comment fuu
fuu's picture

Well for a base of operations you cannot beat a saloon.

Tue, 09/20/2011 - 14:59 | Link to Comment Waffen
Waffen's picture

Hookers and Booze.  Just don't piss off the local William Money.

Tue, 09/20/2011 - 15:10 | Link to Comment TheSilverJournal
TheSilverJournal's picture

The wealth..the goods of the world will still be there when fiat goes.

Tue, 09/20/2011 - 14:40 | Link to Comment Spirit Of Truth
Spirit Of Truth's picture

Excellent analysis.

Tue, 09/20/2011 - 14:42 | Link to Comment reader2010
reader2010's picture

So execuse for my tiny pea-sized brain and let me ask this. Does this all mean a global-scaled war(s) are desperately needed from now on? If I understand history correctly, the WWII was fought to preserve the Anglo-Saxon banking cartel's blood-sucking business model. And WWIII will be fought for resources instead?

Tue, 09/20/2011 - 15:16 | Link to Comment Spitzer
Spitzer's picture

Nah thats wrong. Bankers can make more during peace time. The "easy money" Bretton Woods 2 system is coming to its mathematical end. Euro freegold takes over from here.

Tue, 09/20/2011 - 16:17 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

I beg to differ.  The banks lend to all sides in a war at interest.  Not bad business for the military industrial complex as well.  Two heads of the hydra.

Tue, 09/20/2011 - 18:40 | Link to Comment mkkby
mkkby's picture

Nah thats wrong.  There will never be another gold standard.  Bankers and politicians won't give up their easy financing for wars and vote buying.  The next system will be an electronic standard that can be phoneyed up.

Tue, 09/20/2011 - 14:42 | Link to Comment TheAkashicRecord
TheAkashicRecord's picture

Pushing on a string, this chart is very important.

M1 Money Multiplier (MULT)

http://research.stlouisfed.org/fred2/series/MULT

Tue, 09/20/2011 - 14:50 | Link to Comment JW n FL
JW n FL's picture

 

 

Note that because FRED uses levels and rounded data as published by the source, calculations of percentage changes and/or growth rates in some series may not be identical to those in the original releases. The following formulas are used:

Change
x(t) - x(t-1)

Change from Year Ago
x(t) - x(t-n_obs_per_yr)

Percent Change
((x(t)/x(t-1)) - 1) * 100

Percent Change from Year Ago
((x(t)/x(t-n_obs_per_yr)) - 1) * 100

Compounded Annual Rate of Change
(((x(t)/x(t-1)) ** (n_obs_per_yr)) - 1) * 100

Continuously Compounded Rate of Change
(ln(x(t)) - ln(x(t-1))) * 100

Continuously Compounded Annual Rate of Change
((ln(x(t)) - ln(x(t-1))) * 100) * n_obs_per_yr

Natural Log
ln(x(t))

Notes:

'x(t)' is the value of series x at time period t.

'n_obs_per_yr' is the number of observations per year. The number of observations per year differs by frequency:

Daily, 260 (no values on weekends)
Annual, 1
Monthly, 12
Quarterly, 4
Bi-Weekly, 26
Weekly,52

'ln' represents the natural logarithm.

'**' represents to the power of.

http://research.stlouisfed.org/fred2/help-faq/#graph_formulas

Tue, 09/20/2011 - 15:20 | Link to Comment Stax Edwards
Stax Edwards's picture

Also, it is key to rember how missing values are created:

 

Higher frequency data may not be available for an entire lower frequency period. For example, a monthly data series may end in February. With only 2 of the 12 months of the year available, the converted annual value will be missing for the last year.

 

First and last observations for a converted lower frequency are missing if the number of higher frequency periods per lower frequency period is less than a minimum threshold. The minimum threshold depends on which frequencies are being converted. Below is a table of the thresholds.

Minimum number of higher frequency periods per lower frequency period for first and last observations:

 

4 for Daily to Weekly 8 for Daily to Bi-Weekly 17 for Daily to Monthly 52 for Daily to Quarterly 208 for Daily to Annual 2 for Weekly to Bi-Weekly 3 for Weekly to Monthly 10 for Weekly to Quarterly 39 for Weekly to Annual 2 for Bi-Weekly to Monthly 7 for Bi-Weekly to Quarterly 26 for Bi-Weekly to Annual 3 for Monthly to Quarterly 12 for Monthly to Annual 4 for Quarterly to Annual

 

Daily and weekly series can have missing values due to holidays. Accordingly, the thresholds for converting daily or weekly data series to a lower frequency have been reduced. Otherwise, one missing value in a daily or weekly data series would cause the corresponding lower frequency period to also be missing.

The thresholds for converting monthly and quarterly data series to a lower frequency reflect that all higher frequency periods must be available. If any monthly or quarterly value is missing, the corresponding lower frequency period will also be missing.

The minimum thresholds above only apply to first and last observations. Observations in the middle of the data series are not set to missing if the number of higher frequency periods per lower frequency period is less than a minimum.

Oh, and don't forget:It is possible for higher frequency periods to overlap lower frequency periods. For example, a week can start in one month and end in the next month. In these cases, FRED frequency aggregation only includes the higher frequency value in one of the lower frequency periods but not the other. The value is assigned to the lower frequency period containing the daily date for the higher frequency period. For example, a weekly ending Friday period with date 2010-09-03 is included in the aggregated value for September not August.

 

 

Haha, JEW in FL

U are a nut!

Tue, 09/20/2011 - 15:26 | Link to Comment JW n FL
JW n FL's picture

 

 

I try really hard to get people thinking and standing for something.. instead of sitting and doing nothing.

So I may be a little heavy on the hot sauce most of the time.. but I want people to feel again.. really feel one way or another.

Thinking is great.. but thinking doesnt get people up and motivated!

Feeling does!

so forgive my limited choice of engagement for the masses here.

I promise it is only for the betterment of us all that I cause suffering!

but like a bowel movement.. once people get up and shit out the nasty stuff they feel so much better!

Tue, 09/20/2011 - 18:55 | Link to Comment Sunshine n Lollipops
Sunshine n Lollipops's picture

Fuck, JayDub, I'm tryin' to eat here!

Tue, 09/20/2011 - 15:07 | Link to Comment jimmyjames
jimmyjames's picture

TheAkashicRecord

Pushing on a string, this chart is very important.

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

Yes it is and so are these-which is why your M1-Mult will continue to sag-

http://research.stlouisfed.org/fred2/series/CMDEBT?cid=32256

http://research.stlouisfed.org/fred2/series/TCMDO

**********

Compared to this paltry amount of real cash-

http://research.stlouisfed.org/fred2/series/BASE

 

 

 

Tue, 09/20/2011 - 14:42 | Link to Comment props2009
props2009's picture

The fact that there is no fear has to be feared

The fact that there is no fear is to be feared http://capital3x.com/?p=1644
Tue, 09/20/2011 - 14:43 | Link to Comment Dick Darlington
Dick Darlington's picture

Nuff said, doesn't matter if we talk abt Europe or US.

Tue, 09/20/2011 - 14:46 | Link to Comment Sequitur
Sequitur's picture

This is good -- so long as Bernake doesn't intervene. We need deleveraging. BAC firing 30,000 people? Good, way too many are employed moving money around, making journal entries, doing nothing, earning nothing, skimming pennies. Way too much credit and shadow.

SHUT IT DOWN!

Tue, 09/20/2011 - 14:51 | Link to Comment Ricky Bobby
Ricky Bobby's picture

"liquidate labor, liquidate stocks, liquidate farmers, liquidate real estate" There was a time when we got our depressions out of the way in couple of years.

Tue, 09/20/2011 - 15:57 | Link to Comment trav7777
trav7777's picture

this time how about liquidate management and executives and liquidate politicans?

Tue, 09/20/2011 - 16:25 | Link to Comment malikai
malikai's picture

Don't forget the lobbyists and parasitic entities they represent.

Tue, 09/20/2011 - 15:57 | Link to Comment trav7777
trav7777's picture

YES...management bonuses MUST be preserved at all costs.

Because those guys are doing important work, GOD'S work.  If the entire company has to be laid off to preserve bonuses, then this is what should happen.  We must end the war against capital like upper management who are doing GOD'S WORK.  Because they create jobs by firing people.

Tue, 09/20/2011 - 14:43 | Link to Comment fdisk
fdisk's picture

Tomorrow FED will blame on EUROPE, on Congress for

"lock of leadership" and NO Twist, No QE, cause they will save

as much bullets as they can.. Why they have to prop up markets

anyways, while they are flying?.. Big KABOOM tomorrow after

Bernank will confirm everything I said above with usual vibration

in the voice.. Markets drop 300-350 and GOLD will hit low 1700

in the fly. Nothing to twist here, f*cking treasuries and bonds

interest rates already at all time low, without any twist..

Tue, 09/20/2011 - 14:47 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

May I suggest several trillion gallons of this?

Our friend Zippo

Use the good stuff so it doesn't leave an aftertaste when burning the FRN's in your pipe.

Tue, 09/20/2011 - 14:58 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Dr.Cog,

Now that is a party starter or an incredibly stupid idea. Either you're a genius or a complete kook. Presently it stands undecided...

Tue, 09/20/2011 - 15:05 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Why not both? I try to stay diversified.

Tue, 09/20/2011 - 15:19 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Diversified likewise. Just recently, I got me some Aussie Kangaroos, didn't have any of those:)

Tue, 09/20/2011 - 15:38 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Wonderful choice. Beats Wall Street, who are still staining with their Underoos.

http://en.wikipedia.org/wiki/Underoos

Tue, 09/20/2011 - 16:04 | Link to Comment malikai
malikai's picture

Have no fear fellas, the unicorns will return. They may just be bringing trillions of barrels of Zippo fluid this time.

Tue, 09/20/2011 - 17:47 | Link to Comment SmoothCoolSmoke
SmoothCoolSmoke's picture

Im a pipe man.  A match is the best for the first light.....  lighter on the the re-lights.

Tue, 09/20/2011 - 18:04 | Link to Comment Prometheus418
Prometheus418's picture

You're gonna need a bigger bucket.

http://www.amazon.com/Nelson-VM-Naptha-Gallon-Drum/dp/B0045FEK9S/ref=sr_1_9?ie=UTF8&qid=1316556064&sr=8-9

(Lighter fluid is just Naptha in an expensive little can.)

 

Tue, 09/20/2011 - 14:46 | Link to Comment likesfood
likesfood's picture

Anyone have info or a critque of this California AB 750? - http://www.youtube.com/watch?v=XLDjl6GEXIY

"A bill to form a blue-ribbon commission to study the feasibility of a state-owned bank for California has suddenly and unexpectedly cleared both houses of the California legislature and now awaits Governor Jerry Brown's signature.Californians need to contact the Governor and urge him to sign this, the first successful public banking initiative in nearly 100 years "

Money Masters "Bill Still" makes a case for it.

Tue, 09/20/2011 - 14:53 | Link to Comment Waffen
Waffen's picture

Its an excellent idea.  It has worked incredibly well for North Dakota(assuming this bill is similar)

Tue, 09/20/2011 - 15:03 | Link to Comment Sequitur
Sequitur's picture

I support it. North Dakota has its own public bank. http://www.banknd.nd.gov/

That bank is thriving, and it is public. As is North Dakota, with good jobs in energy, some of it financed by the bank.

I really do hope California gets a public bank, because anything is better than the BAC / C / JPM /GS bullshit we have now. And also because it sends a big "fuck you" to Wall Street and their defenders (Chuck Schumer and Chris Dodd, this means you).

I really hope this bank passes, and it steals a good bit of market share from these fucking bankers and their "technology." Oh yes, these investment banker charlatans call their grossly fraudulent securitizations "technology." This is the bullshit these fucking IBers pimp to clients and reap their bonuses from.

Move money around in a circular fashion, earn a "structuring" fee, then draw more fees each step of the way in the circular transaction, sell this steaming pile of shit as "technology," and get bonused at the end. Total and utter bullshit. Bring on the California public bank.

Tue, 09/20/2011 - 15:54 | Link to Comment GCT
GCT's picture

It is currently sitting on moonbeams desk for signing and we do not think he will sign it. I think he has 25 days to sign it left. 

Tue, 09/20/2011 - 17:08 | Link to Comment ffart
ffart's picture

What difference does it make, California is flat out broke. Are they so depraved that they want to double down on how broke they are? I'd trust my money with a state owned central bank about as much as any other group of rapists.

Tue, 09/20/2011 - 14:48 | Link to Comment baseball13
baseball13's picture

If Bernanke wanted to do something really big, not even contemplated by the markets, he should announce his RESIGNATION!...

Tue, 09/20/2011 - 14:52 | Link to Comment Cleanclog
Cleanclog's picture

Just think of how "scared" TPTB and MSM would be!

Tue, 09/20/2011 - 14:48 | Link to Comment sodbuster
sodbuster's picture

The problem is, Tyler, I don't think the Bankster Bernank is as sharp as you, so that idiot is bound to do anything!!

Tue, 09/20/2011 - 14:48 | Link to Comment g speed
g speed's picture

taking care of stupid banks will be in second place to the three way gun fight between the USA,EU and China-- Ben and the Fed have bigger fish to fry-- like surviving? IMHO policy will follow that lead.

Tue, 09/20/2011 - 15:42 | Link to Comment Smiddywesson
Smiddywesson's picture

I don't think the Fed sent all that money to EU banks only to have a cat fight with them.  This is the Fed and ECB vs the Chinese and anybody who won't play along with the Western banksters.  Quite the showdown.

Tue, 09/20/2011 - 15:49 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Please don't mention "three way gun fights any more"!  I still haven't gotten over the last one, but at least I made out better than Colonel Mortimer (The Bad).

 

Tuco (The Ugly)

Tue, 09/20/2011 - 14:50 | Link to Comment NotApplicable
NotApplicable's picture

ZIRP4EVA

Tue, 09/20/2011 - 14:51 | Link to Comment treemagnet
treemagnet's picture

Tyler - little help please.....

Tue, 09/20/2011 - 14:50 | Link to Comment Raymond Reason
Raymond Reason's picture

"The choice is made for him"....welcome to the "choice is made for us" club, Bernank. 

Tue, 09/20/2011 - 15:47 | Link to Comment NotApplicable
NotApplicable's picture

Chaired by Maggie Thatcher's TINA.

http://en.wikipedia.org/wiki/There_Is_No_Alternative

Tue, 09/20/2011 - 14:52 | Link to Comment Waffen
Waffen's picture

I can not possibly tell you how incredibly relieved I will be if Bernanke announces a QE3. 1 trillion, 2 trillion, 3 trillion, the more the better.

I have been waiting for this moment since the Silver May day crash.

 

 

We all know this will end in Hyperinflation, lets just get it on for godsake.  I really really hope that whomever penned this is correct.

Tue, 09/20/2011 - 14:58 | Link to Comment SheepDog-One
SheepDog-One's picture

I admit, I would also laugh if $3 trillion' comes out of Bernank's quivering lip tomorrow....hey go ahead send all commodities to the moon!

Tue, 09/20/2011 - 15:53 | Link to Comment Smiddywesson
Smiddywesson's picture

I said he wouldn't do it, but the circumstances have changed a bit since then.  I thought he would delay as much as possible, but if Reggie thinks his hands are tied because of an impending collapse, then they are pretty much tied.  He has been spot on in the banking dept throughout this crisis.

 

Tue, 09/20/2011 - 15:57 | Link to Comment Waffen
Waffen's picture

So is Reggie Middleton making this call?

Tue, 09/20/2011 - 16:30 | Link to Comment Smiddywesson
Smiddywesson's picture

He's calling a bank run in Europe and a cascading collapse.  He's been very accurate and the banks are his forte.  This could force the Bernank to do something.  I'm betting it's good for gold, but yes, it's a bet.

On the other hand, if the Bernank was going to do something that would be welcome by the banks, then why did they go to all the bother to ramp the markets on unicorn farts all last week and today?  That smells of building a cushion for price declines. 

Either way, it's going to be an interesting day.

Tue, 09/20/2011 - 19:21 | Link to Comment Smiddywesson
Smiddywesson's picture

There's only one caffein turbo charged banking genius on this site that regularly posts articles, and he also uses lots of links and bold face, and the exact same type of charts, so yes, I would say he wrote this article.  I'm just a fan, I don't know, but that's the allure of ZH.  (He was also all over this site yesterday, he doesn't sleep).

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