Time to place your bets. QE will continue to infinity, and is in progress as we type. There are no other viable solutions as there are NO REMAINING TREASURY BUYERS OF SIZE BESIDES THE FED!!
The questions is whether the puppet Bernanke has received directions from his bankster overlords (Dimon & God’s worker to name two) to PUBLICLY announce unlimited QE tomorrow as 99% of the market expects, or whether QE∞ will be announced on an upcoming Sunday night prior to the Asian market open.
Will he, or won’t he? The Doc would like to know what YOU think and why.
QE Control Room graphic- perhaps the best work to date by the genius WilliamBanzai7
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_silv.gif)
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I think the Bernank will be give an ambiguous speech tomorrow, not unlike the one he made at Jackson Hole. Either way we will have QE to Infinity for the reason you posited above, there simply isn’t enough buyers of US debt. Last year Big Brother bought 60% of its own bonds, I wonder what that number will be this year. And what is the magic number when the institutional investors begin fleeing US bonds en masse (PIMCO seems to have already begun)?
Nothing but double talk, term invention, and crisis creation to justify new actions by the FED to a deaf and blind public.
Remember that once the US is downgraded from triple A by all of the big 3…there are literally thousands of pension funds and other similar funds that will be forced to dump treasuries as they are required to hold AAA rated paper.
Doc, there’s industry talk about changing those rules. AA will be the new AAA. Eventually, A will be the new AA.
$850 billion dribbled in over 6 months, with first distribution after the election.
I expect Bernanke will do some jawboning about being at the ready to do what ever it takes. But, no definstive full blown QE. His only prudent option is to reduce the interest rates on excess reserves. I don’t expect he’ll go to negative rates like parts of Europe, but he may reduce the interest member banks receive on their excess reserves to zero.
It is said that there is nothing that the fed can do but to QE to infinity but dont forget the last, biggest and most powerful tool left in the fed’s little tool box and that is to DEVALUE the dollar, we will all wake up one morning and fiat currency will be worth 60-70% less, so perhaps the bernank will wait until the dow has started to plummet before introducing the next round of QE but dont forget about the biggest tool still left in the box…devaluation.
Soros has the in which is why he bought $130,000,000 in gold and dumped his stocks. Bernana will call #3 today because that is the next step in the continuation of dollar devaluation. I don’t believe Bernana is doing QEEEEEEs to save the economy at all, they know there’s no saving it any time soon, the power pushers are pushing the Q’s to devalue the dollar. That is the only way to reduce the debt and kill off the middle class is to reduce the value of the dollar. That was the plan from the start, not to bolster or fix the economy. It’s all smoke and mirrors to make the American public think he/they are trying to make “repairs” while in fact it is meant to do the exact opposite. Call me a tin foil hat wearing fool but that’s my story and I’m stickin’ widit!
@Bigrsoul – yes, dollar devaluation- described by Bernanke as gold revaluation is most assuredly coming, as the last tool in Bernanke’s toolbox. This is really the only possible surprise the Fed has left, but the chances of that occurring 2 months prior to a Presidential election are nill. It will come, but only after QE to infinity has been fully applied and fully failed.
Gold revaluation is the final tool, to be sure, and that step might even come as part of an overall rollout of a new international monetary system. But it’s not the last surprise the Fed has left. The second to last surprise will be moving rates for reserves held at the Fed — first to zero, and then to outright charge interest on bank reserves, sending the velocity of money into hyper-drive. Another possible tool still in Uncle Ben’s bag of tricks would involve direct purchases of all sorts of assets.
Wouldn’t a gold revaluation be in the best interests of the FED after they have bought more gold? Surely the FED is not going to put all its eggs in paper currency.
Just LQQKing at that smug SOB pisses me off.
My take is no QE announcement Thursday.
The election is less than two months away.
I am certainly not an economist, just my gut.
And for those who believe the elite telegraph their intentions..notice the DOW’s close today….13333.35.
If silver is the FED’s most despised enemy, why not create a scenario that would put silver in the worst kind of light before the public? They have already taught the public there are some firms that are TOO BIG TO FAIL! The best ideas that deceive are those that can convince the public that good is evil and evil is good. JPM is good for the country, silver is the country’s problem. If I wanted my worthless currency to survive, I would create a false history lesson on how silver has been behind every economic failure, including being the cause for the Hunt brother’s bankruptcy.
I have also been noticing the $33.33 level for silver several times as being somewhat significant, blends together with that DOW number. I also subscribe to the elite signaling techniques. It is a well documented fact that numbers and symbols are used to send messages below the radar. Their favorite symbolic numbers are 13 and 33.
OMG! I just went to check silver price after writing the above reply and the price was $33.13………..scary huh?
Where did that 2 cents come from?
I think he will disappoint tomorrow. Silver and gold will go down, but the stock market will go up anyway.
The stack market will go up too.
Expect the unexpected and you will avoid being surprised. Have we done that here?
I tend to think there will be no QE3 announcement tomorrow either. As a result G&S will go down, but so will the market.
I’m pretty sure the gold/silver markets went up long before we knew what QE was ( circa 2001-2007) and my gut tells me it will find its way through the fog all on its little lonesome without the mutterings of Benny et al. I smell an upset… With that said, I’m pretty sure I just heard Jay Leno utter that the social security admin was purchasing rounds of hollow point bullets and basically made no joke but to ask what was up with that… I thought such things were taboo while bread and circuses ensue… Anyone else catch it???
What we do know for certain is that the Fed needs to act as the buyer of last resort given insufficient market demand for Treasuries — and MBS too. Furthermore, they have to act within months or everything croaks (with the transmission mechanism proving to be rapidly rising long-term interest rates should “real world” buying be required in the absence of QE, god forbid). Therefore, at some point this year, they MUST launch a new pool of funds to buy the bonds, for certain, and probably MBS too. With that as background, it really doesn’t make sense to bluff one more time. This is it folks. The end game is now visible. Uncle Ben knows he has to act now. So, I think we’re going to see one of the following:
Conservative case: In the very least it’s going to be made VERY clear that QE of some sort is coming at some point this year. Regardless of the type of program they announce, we can also assume there will be no specific time deadline attached. It could be announced along the lines of the following: “We’re evaluating economic conditions and stand ready to launch a program of at least $500 billion worth of bond purchases over time and as conditions deem necessary.” By stating a dollar value the market will be made to understand the program is real, even though they haven’t launched it just yet. A lame effort to not appear political will thus be attempted, because the Fed will give the appearance that they can wait until the conclusion of the US election cycle.
Aggressive case: They launch a QE bond buying program immediately, with no specific time deadline attached. A figure of $500 billion or more will be noted as a baseline, but not a cap.
It will be noteworthy that there will be no change to interest rates paid for reserves held with the Fed. However, following the main announcement the media will be fed trial balloons about changing the rate in the future, and we will likely see Federal Reserve board members talking about this in public. That step will be taken when Uncle Ben and company are willing and ready to deal with turning on the velocity of money into hyper-drive. For now, the more pressing problem is what to do with all the bonds that no one wants to buy and the ongoing need for debt finance. Six months from now, when we start seeing serious talk about charging banks money for reserves held at the Fed, look out…. The hounds of hell will be upon us and the system will not have much longer to go before it will be time to roll-out a new currency and/or new international trade settlement system. A few years ago the powers that be were thinking they could extend and pretend until 2018 and roll things out. I’m thinking 2015 is the new timeframe.
I think QE 3 will be announced on an upcoming Sunday night prior to the Asian market open.
The QE Control Room will wait for a market crash before announcing QE 3…that way it won’t seem too political…and Ben might keep his job.
I think there was a pretty obvious manipulative smackdown today, which has to enter into the equation. I say yes, he qe’s, if not now, when? They have two months, and it shouldn’t clearly fail that soon, the Bernank has to try to boost employment, or he may lose his job. the dollar index went down with the metals today? that’s more than fishy! that’s market manipulation for sure.
He will not. this would kill JPM…
JPM may be the FED’s NEW sacrificial lamb in their strategy of creating a new crisis so they can appear to come to the public’s rescue.
NO QE-3, A surprise new “Twist” will be announced. However it will not be called QE or Twist.
QE is now a black word, the FED wants to avoid this phrase due to it causing market volatility.
I have 50K on standby, as Silver will hit 29 according to my calculation, and I will snipe a nice fat brick of Phyzz.
(~: Keep stackin, and stack on the lows.
I don’t Know if the fed and little Ben need to announce QE3 to start more printing. The Fed has been very reluctant about another round of printing openly. I think they are worried about the consequences. So they will print but not announce it to the public.
Some believe that uncle Ben will announce $300 billion takeover of MBS and $300 billion liquidity …
No QE. The traders will sell and JPM will cover.
QE or not QE
oh baby
can’t you see
We’re gonna make the dollar drop.
You’re making history
And it feels so good to me
ooh darlin’
please don’t ever stop.
(With apologies to Mel Brooks)
Many think he won’t announce until after the election. Obama is already set up to be reelected by the powers that be and they all know whatever happens won’t effect that. Ben knows his job is secure. Massive money printing is already happening and will continue until the dollar crashes. Once the public finds out what is really going on it will be too late and, as usual, will feel powerless then go back to sticking their heads in the sand.
If they have selected Romney for our next President, some kind of QE3 will become public before the election. If Obama is their man, QE3 will come after the election. Personally, I believe Romney is their best choice because for the next 4 years the FED will be able hide behind the story: “Its Obama’s fault!” As we can all see, the old excuse: “Its Bush’s fault” has lost momentum. The FED must have a new whipping child to blame all their failed policies on–OBAMA!! Then in 2016 the country will be ready for Hilliary after they demonized Romney.
It is the liberals that claim ‘Bush’s fault. If it goes to Romney then the conservatives will be claiming ‘Obama’s fault’. Obama is already trained and the election at this point is just a dog and pony show for the public. If Romney is elected then the public will expect to see improvement in the economy, something THEY do not want to happen, so I see no way Romney will be the one. The only thing that makes any sense about Romney being elected is to set up the Republican party to be demonized for Hillery to be elected. I think THEY have bigger plans for her since the country will be in a different paradigm by the time Obama get done with it and then they can crown Hillery as Queen of the US.
Liberals–conservatives; You’re buying into the divisive plan of the elites. Create two opposing camps and cause a dispute between them. While the actual cause goes undetected. The fact is the Democrat/Republican ideology is nothing more than the two sides of the same coin. For 180 years neither party has ever solved anything. Why is that? They were never created to solve problems. They were created to cause problems to take the public’s attention away from the real cancer that has and continues to plague this country—THE FED! And if you think Obama has a chance in this election, you’ve been drinking way too much kool-aid crissy.
So you have inside information that Romney will win and anyone that thinks different than you is on Kool Aid? You are the one buying into the lib-con thing. It won’t be long to see who is right, but we will all still lose no matter who wins.
If they do it today or next month, either way there’s a shit storm coming.
Keep stacking brothers and sisters…
No QE announcement today. As others have pointed out, Bernanke’s comments will be ambiguous ala Greenspan. Some points to back up my assertion:
1) Romney has publicly criticized the FED, and Bernanke’s #1 priority is to keep his own job.
2) Announcing QE3 = money-printing in the mind of the public, and this will hurt the President’s chances of re-election.
But what the hell do I know? I would not bet one worn-out Silver dime on today’s outcome.
I don’t understand why Ben needs to announce QE3 at all, if it has already started. Can someone explain that to me please? I imagine that he can’t do things with huge effects without saying something about it, because he would then be in OVERT breach of his (meaningless) contract with the US. Am I right, or is there more to it?
If I am right, then I say QE3 or some other arcane acronym for QE will be announced today! Because … they need to do something to avert an immediate collapse, BUT another round of QE will push things off the cliff, IMO, due to dollar dumping around the world.
I do think they telegraph things in advance and 13 and 33 sound like a smoke signal to me.
After going back and forth about whether the Fed will or wont QE. I had the following thoughts.
On one hand they could announce QE3. Equities, Bonds and Commodities will go up as a result in the short term. They wont have a major drop in the markets right before the election because QE3 is partially priced into the markets already. Further word smithing on Bernankes part could cost Obama the election. And if Bernanke wants another term as Fed chairman his job as well.
If investors were to pull out of the markets due to QE3 not being announced this could send companies like HSBC and Morgan Stanley tanking.
On the other hand they wont announce QE3. Because an announcement of QE would most definately send Silver through the moon. And this move alone would damage JP Morgans short position possibily causing another Lehman moment.
So my decision is today September 13 2012 the Fed wont announce QE3. This could be very benifically to the world elite that pull the strings from behid the scenes. Here is my reasoning:
1) this wil compromise Morgan Stanley. Causing a Lehmans moment. Morgan Stanley will be picked up by JP Morgan. Further monopolizing JPM.
2) This Stock market crisis will cause a problem when the Dow (drops 2-3k) and S&P (drops 2-300). This will give the fed an excuse to do QE unlimited. The media is almost always wrong and cheerleading that QE will be announced today. One weak jobs report is not enough politically to justify QE unlimited.
3) A crash will install Romney as the new president. Obama has to much baggage. I believe if Obama wins, impeachment will be on many many minds.
4) An announcement of QE3 would send Silver uncontrollably higher. This could compromise JP Morgan.
5) A markets crash in the USA could help Europe and their bond market. Americans will lose more jobs, prices will soar. This is the climate the USA needs to get Americans even angrier at the gas pump. So when trouble begins to brew in Iran more Americans will be in favor of war.
6) the job market is damned even with QE3 why would they compromise the Feds crediability more?
7) other Fed members might want Bernanke fired so they could further their careers. By not voting for QE they know the markets will tank in October or late September helping Romney win. There is a reason Romney said he would fire Bernanke before the election.
8) a QE announcement could trigger another US downgrade. Complicating a debt ceiling debate in the new year.
So in closing no QE. Dow drops to 10k, S&P drops to 1000, Silver drops back to $26.10 maybe more, Obama loses unless a false flag occurs, Romney elected, JPM picks up Morgan Stanley, with Romney war with Iran is guaranteed and the Fed has an excuse for unlimited QE or whatever they call it.
I am sure their is plenty of reasons for the Fed to announce QE today but I am going with no QE until the new year.
Hold on to your hats ladies and gents its about to get fugly! But what do I know im no expert just an avod reader?
If this happens sure Silver and Gold will tank short term but it will always look like a poor investment until the dollar dies and it shoots to the upside overnight to unprecedented levels. Im not worried about it and neither should you. Remember buy low and sell high.
I’m going to say Uncle B will not announce anything of significant today. More of the same. He will wait until begged by all to do something. He knows JPM’s position and Romney’s and won’t want to be so aggressive in the spotlight. He will continue doing things behind the scenes. When it is time it will be out of nowhere on a Sunday. He isn’t going to hand it over to us that easily. He will drag this game out as long as he can. Just let the soap opera continue as is.