TAPER MY FAT A$$

33 comments

Posted on 18th September 2013 by Administrator in Economy |Politics |Social Issues

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I’ve been saying for weeks that Bernanke needed a Syrian War to give him an excuse to not taper. The American people and Vlad Putin put the kabosh on that plan. Soon to retire Ben was left with no choice but to just prove he is a tool for Wall Street and the corporate interests by announcing he has no plans to taper. His goal is to get out of Washington DC in January before the entire thing implodes. He’ll let Yellen or some other idiot take the fall. Ben is a ball-less wonder.

His bosses on Wall Street have begun their ticker tape parade by setting their HFT supercomputers to buy. Only thoughtful people are stepping back to question this surprise move. How bad is the true situation that Bennie can’t even taper by $5 billion per month? The suppression of gold and silver prices by Wall Street and Bennie has been a high priority because rising precious metals prices reveals how bad things are. We now know that Bennie thinks the situation is so dire, he is even willing to let gold and silver go wild. Bennie will inflate and debase until the cows come home.

Gold is up $50 from its lows on the day, or 3.9%

Silver is up 5.8% from its low on the day.

All you plebs who need to fill up your gas tank on a weekly basis will be thrilled to know oil jumped by 2.6% to over $108 a barrel.

Do you think Bennie works for you or Wall Street?

Party on Garth!!!

 

 

FOMC Shocker: No Taper

Tyler Durden's picture

Submitted by Tyler Durden on 09/18/2013 14:01 -0400

It seems the Fed is so scared about something (despite every long-only asset manager telling us day after day that the economy is recovering and the US doesn’t need crisis support… oh and can withstand higher rates) that they have gone against consensus and decided that Tapering now is premature:
  • *FED REFRAINS FROM QE TAPER, KEEPS MONTHLY BUYING AT $85 BLN
  • *FED: RISE IN MORTGAGE RATES, FISCAL POLICY RESTRAIN GROWTH
  • *FED: `TIGHTENING OF FINANCIAL CONDITIONS’ COULD SLOW GROWTH
  • *MOST FED OFFICIALS SEE FIRST INTEREST-RATE RISE IN 2015

Pre-FOMC: S&P Futs 1696, VIX , 10Y 2.865%, MTG Spread 72.5bps, USD 81.00, WTI $107.00, Gold $1310

We await Cramer and Liesman to explain what to do next

Consensus was for a $6bn taper in TSYs and $3bn taper in MBS

33 Comments
  1. Administrator says:

    Federal Reserve Decides Against Even Token Taper – Precious Metals’ Baby Bears Spanked

    I was a little surprised that the Fed did not take the opportunity to do at least a token taper to end the speculation about ‘when.’ The market had clearly priced it in. But the buts in the statement are significant.

    I think their major concerns are that higher interest rates will kill the housing market and consumer demand, which are both in a weak recovery.

    The capping of gold and silver this week was trader games and perception management, nothing more.

    The fundamentals may not always prevail, but they matter in the longer term.

    The Right Shoulders on the gold and silver charts look like they are now in, but we must break the resistance and then the neckline to confirm. Notice that the daily high on the short squeeze stopped right on it at big resistance of 1350.

    The COMEX precious metals trade has hardly turned into an efficient and transparent market in one day. I suspect that physical offtake will force their hand, and probably from without, on a more physically oriented exchange that declares bids without offers at price, and then a market dislocation. It may occur in the forex markets, and that would be significant. The COMEX may lead, but will more likely follow since it is, after all, a fiat exchange.

    Jesse

    18th September 2013 at 2:56 pm

  2. Administrator says:

    Who Leaked The FOMC Statement To Gold Traders?

    Submitted by Tyler Durden on 09/18/2013 14:42 -0400

    Beginning 3 minutes before the release of the FOMC Statement, gold spot and futures prices began to rise notably. We noted this accordingly.

    Bonds did not. Stocks did not. FX did not. Around 4300 contracts changed hands in the Dec Futures – massively more than average volume – before the statement came out and drove prices further up. In those 3 minutes Gold prices jumped $11… so the question is – lucky guess… or which big bullion bank got the nod?

    18th September 2013 at 3:12 pm

  3. Administrator says:

    The Machines Win: Within Milliseconds, The Move Was Over

    Submitted by Tyler Durden on 09/18/2013 14:52 -0400

    We hope everyone is enjpying the spoils of war from reading the FOMC statement and buying appropriately. Of course, as Nanex shows, unless your trigger finger hit that big green button within a millisecond or so, you missed the entire move…

    Via Nanex,

    Market reaction to the FOMC news was instant. Within a thousandth of a second, the move was already over. What any human saw was like reading yesterdays newspaper.

    18th September 2013 at 3:14 pm

  4. harry p. says:

    thank you admin,
    i have been busy all day and just looked at kitco and saw the $50 rise and was wondering what happened.

    so they aren’t tapering, big fucking surprise there.

    what happens when they announce yellen? gold might hit $2k and oil will be $175/barrel

    welcome to the new age

    18th September 2013 at 3:22 pm

  5. Administrator says:

    Silver up 9.3% from its low on the day.

    Gold up $75 from its low on the day – up 5.8%

    Nothing in the MSM headlines about these HUGE moves. They blather about the .90% moves in the stock market.

    18th September 2013 at 3:33 pm

  6. 4WD says:

    When even Larry Summers removed his name from the list of possible Federal Reserve candidates……it can’t be good.

    18th September 2013 at 3:42 pm

  7. dc.sunsets says:

    I must renew my “favorite word” list.

    #1 is ASTONISHING.

    I remain ASTONISHED that this pig of an economy retains the appearance of flight.

    I remain ASTONISHED that the Fed’s open admission that the economy remains too weak to stop “propping it up” is met with celebration.

    I remain ASTONISHED that flat nominal incomes facing debasing dollars in the grocery store are ignored as the Legacy Media party with their owners on the Street of Wall.

    I guess it’s getting to be time to capitulate. I will notify everyone when I do, since I have a 100% perfect history of doing so right before the bottom drops out.

    18th September 2013 at 3:51 pm

  8. Administrator says:

    “The government’s bailout plan destroyed capitalism. In a capitalist system, those who stood to gain–and already made off with large gains—would have to bear the risk. The bailouts represented a corruption of capitalism. Crony capitalism violates the spirit of democracy established by the Founding Fathers of the republic known as the United States. I expressed these sentiments in a letter to the Financial Times on September 29, 2008.”

    – Janet Tavakoli

    18th September 2013 at 4:59 pm

  9. AWD says:

    Insanity reigns at the Fed. The banksters and Wall Street can’t survive without one milligram less of QE heroin. Feels like a catastrophe today, although I don’t know why. It’s seemed for months the Fed was going to quit the bullshit money printing. They don’t call it QE infinity for nothing. Bad, bad shit, feels like another leg down, a long way down, and a quickening in the collapse.

    Bernanke can’t quit because the government cannot stop pissing away $1 trillion they don’t have a year. All this means is more debt, more government spending, more government strangulation of the economy, freedom, and liberty. More socialism, and more misery. It’s sickening.

    18th September 2013 at 5:27 pm

  10. AWD says:

    Fed-works-cc-565×419.jpeg

    18th September 2013 at 6:59 pm

  11. taxSlave says:

    False Fiat Money. Lying Spying Murdering Government. ‘Bots Drones and Fascist Corporatism.

    Time to break out ol’ Johnny Walker.

    We are fucked.

    18th September 2013 at 7:29 pm

  12. 4WD says:

    “The government’s bailout plan destroyed capitalism. In a capitalist system, those who stood to gain–and already made off with large gains—would have to bear the risk..”

    This makes me wonder why so many profitable corporations, IE flush with profits (capital), would need to go into debt. I thought capitalism was about maintaining enough reserves to weather the storm, and not borrowing to maintain the illusion of profit.

    So let us save the whores lest the sinners cast the first stones at themselves.

    18th September 2013 at 7:30 pm

  13. AWD says:

    Marc Faber Warns “The Endgame Is A Total Collapse – But From A Higher Diving Board Now”

    With rumors this evening of the White House calling around for support for Yellen, Marc Faber’s comments today during a Bloomberg TV interview are even more prescient. Fearing that Janet Yellen “would make Bernanke look like a hawk,” Faber explains that he is not entirely surprised by today’s no-taper news since he believes we are now in QE-unlimited and the people at the Fed “never worked a single-day in the business of ordinary people,” adding that “they don’t understand that if you print money, it benefits basically a handful of people.” Following today’s action, Faber is waiting to seeing if there is any follow-through but notes that “Feds have already lost control of the bond market. The question is when will it lose control of the stock market.” The Fed, he warns, has boxed themselves in and “the endgame is a total collapse, but from a higher diving board.”

    On what the endgame is:

    “Well, the endgame is a total collapse, but from a higher diving board. The Fed will continue to print and if the stock market goes down 10%, they will print even more. And they don’t know anything else to do. And quite frankly, they have boxed themselves into a corner where they are now kind of desperate”

    On Janet Yellen:

    “She will make Mr. Bernanke look like a hawk. She, in 2010, said if could vote for negative interest rates, in other words, you would have a deposit with the bank of $100,000 at the beginning of the year and at the end, you would only get $95,000 back, that she would be voting for that. And that basically her view will be to keep interest rates in real terms, in other words, inflation-adjusted. And don’t believe a minute the inflation figures published by the bureau of labor statistics. You live in New York. You should know very well how much costs of living are increasing every day. Now, the consequences of these monetary policies and artificially low interest rates is of course that the government becomes bigger and bigger and you have less and less freedom and you have people like Mr. De Blasio, who comes in and says let’s tax people who have high incomes more. And, of course, immediately, because in a democracy, there are more poor people than rich people, they all applaud and vote for him. That is the consequence.”

    18th September 2013 at 7:43 pm

  14. Administrator says:

    “Each time a man stands up for an ideal, or acts to improve the lot of others, or strikes out against injustice, he sends forth a tiny ripple of hope, and those ripples build a current which can sweep down the mightiest walls of oppression and resistance.”

    Robert F. Kennedy

    18th September 2013 at 7:56 pm

  15. Reverse Engineer says:

    “The government’s bailout plan destroyed capitalism.”- Janet Ravioli

    How can you destroy something which never existed except as a public relations campaign by the Illuminati?

    RE

    18th September 2013 at 7:59 pm

  16. llpoh says:

    You are quoting RFK? Seriously? Fuck me dead.

    18th September 2013 at 8:01 pm

  17. AWD says:

    QE and money printing has worked fabulously; to wipe out the average joe. With real inflation running at 8-10%, median wages dropping every single year, the 90% are getting annihilated.

    But QE allows our fascist socialist government to grow, spend more, control more, and allows the rich to get richer and richer. Every real economic study has shown QE has failed in every respect, except to create unpayable debt and enslave the population. It cost $8 of debt to get $1 in economic growth (GDP). Bubbles didn’t want the world to end on his watch. The people with the hangman’s noose won’t forget him.

    Census on Obama’s 1st Term: Real Median Income Down $2,627; People in Poverty Up 6,667,000; Record 46,496,000 Now Poor

    September 17, 2013 By Terence P. Jeffrey

    (CNSNews.com) – During the four years that marked President Barack Obama’s first term in office, the real median income of American households dropped by $2,627 and the number of people on poverty increased by approximately 6,667,000, according to data released today by the Census Bureau.

    The record total of approximately 46,496,000 people in the United States who are now in poverty, according to the Census Bureau, is more than twice the population of Syria, which, according to the CIA, has 22,457,336 people.

    In 2008, the year Obama was elected, real median household income in the United States was $53,644 according to the Census Bureau. In 2012, the last full year of Obama’s first term, median household income was $51,017. Thus, real median household income dropped $2,627—or 4.89 percent—from 2008 to 2012.

    In fact, real median household income dropped in each and every year of Obama’s first term. In 2008, when he was elected, it was $53,644. In 2009, the year he was inaugurated, it dropped to 53,285. In 2010, his second year in office, it dropped to $51,892. In 2011, his third year in office, it dropped to $51,100. And, in 2012, his fourth year in office, it dropped to $51,017.

    18th September 2013 at 8:08 pm

  18. 4WD says:

    Hello Mike

    18th September 2013 at 8:11 pm

  19. llpoh says:

    “As a Christian I have no duty to allow myself to be cheated, but I have the duty to be a fighter for truth and justice.”

    “How fortunate for governments that the people they administer don’t think.”

    Adolf Hitler

    “I believe in one thing only, the power of human will.”

    “The writer is the engineer of the human soul.”

    Stalin

    “Socialism is a fraud, a comedy, a phantom, a blackmail.”

    “The Liberal State is a mask behind which there is no face; it is a scaffolding behind which there is no building.”

    Mussolini

    Fuck me dead, Admin quotes RFK. Where is my scotch.

    18th September 2013 at 8:12 pm

  20. JIMSKI says:

    Quick question, what number QE are we on?

    If the purchase of mortgage backed securities is QE3 then I think we are already at QE5.

    The fed is now the defacto renumerator for treasury bills. The treasury is NOT redeming T-bills. Last month we printed another 36 BILLION in redemptions. This has been going on for 7 months. This is defacto QE4

    The debt and deficit have not moved in 2 months. Is somebody not getting paid? Did someone cosign a 89 BILLION Dollar loan? QE 5

    FUCKITY FUCK FUCK FUCK I NEED MORE AMMO

    18th September 2013 at 8:15 pm

  21. AWD says:

    crush-socialism-battaile-politics-1352932441.jpg

    trickle-up-poverty.jpg

    tumblr_ltk9ibygLV1r0cerqo1_500.jpg

    18th September 2013 at 8:17 pm

  22. juan says:

    llpoh says:

    “You are quoting RFK? Seriously? Fuck me dead.”

    Micks are thicker than thieves. Besides, didn’t you recently quote some native American fraud from Colorado?

    18th September 2013 at 8:48 pm

  23. 4WD says:

    Huh, so socialsim is trickle up and not down.

    I suppose thats normal in bizarro world.

    18th September 2013 at 8:49 pm

  24. llpoh says:

    I did not quote the fraud, I quoted someone who quoted the fraud. Plus the fraud that was quoted is not exactly as well known as RFK. Plus I intentionally put in a rider that effectively said that I could in no way substantiate the numbers, and it was not my intent to do so, but rather it was meant only as a generic reference to the massive eradication of Native Americans since whitey arrived.

    Juan – you too can kindly put lips to the might redsnake.

    18th September 2013 at 9:06 pm

  25. Axel says:

    watch?v=mII9NZ8MMVM

    Im not sure I can embed this youtube vid, but it is outstanding. It is called The Collapse of the American Dream in Animation, and if the link doesn’t work, then just look it up. Worth your while, and spread the word for others to watch it too.

    18th September 2013 at 9:32 pm

  26. juan says:

    llpoh says:

    “Juan – you too can kindly put lips to the might redsnake.”

    no thanks, i’m homophobic. heh. (you sure are nice lately)

    18th September 2013 at 11:38 pm

  27. Administrator says:

    20130918_working.png

    19th September 2013 at 6:24 am

  28. Administrator says:

    “…the path of tapering is going to be tough because every time the market thinks they are going to taper, yields will likely rise and conditions will tighten” – Deutsche Bank

    19th September 2013 at 8:32 am

  29. Administrator says:

    “They are stumbling into the endgame of this whole misbegotten spree of QE, ZIRP, and massive manipulation of financial markets.

    We are going to basically replace bubbles Ben with calamity Janet.

    She has no clue how to wean wall street from the pathetic addiction to this massive stimulus, easy money that has been going on for the entire century.

    I backed that up because she has spent her whole life as a monetary bureaucrat in the Fed system, and has no clue what honest capital and genuine free markets are about.

    [She] believes the entire system has to be run by a monetary politburo, turning all the dials and short-term interest rates and yield curves and the entire financial system.

    She is part of group-think, part of the Keynesian consensus that 12 people are running a $16 trillion economy.

    They are delusional.”

    David Stockman

    19th September 2013 at 9:18 am

  30. Sensetti says:

    Is the Federal Reserve Bank not destroying itself? How much more can they expand their balance sheet? What’s their end game?

    19th September 2013 at 1:02 pm

  31. Sensetti says:

    The Fed is in the End Game

    The Fed failed to announce a Taper yesterday of any kind.

    It is positively outrageous, but it does inform us of many things.

    First and foremost, the Fed has made it clear that it cannot be hawkish is any way. We had just two months of hinting at tapering QE from the Fed (Bernanke was back talking up how accommodating he’d be by July).

    So for all the talk of taper and shifting to a more hawkish tone, the Fed’s actions speak louder than words: the Fed is totally and completely incapable of being hawkish at this time.

    Secondly, the Fed knows that the US economy is a total disaster. If tapering even $10-15 billion per month from $85 billion month QE programs would damage the economy, then we’re all up you know what creek without a paddle.

    Put it this way… here we are, five years after 2008, and the Fed is stating point blank that the economy would absolutely collapse if it spent any less than $85 billion per month. This admission has proven just how long ago we crossed the Rubicon. We’re already in the End Game. Period.

    Finally, the Fed has proven that it has absolutely no exit strategy. The Fed is going to print money and buy bonds until the entire financial system collapses. Any time stocks fall it will try to rescue the markets. And it is going to do this ad infinitum because it has no clue what else to do.

    In plain terms, the Fed has proven beyond even a hint of a doubt that it is simply flying by the seat of its pants, with no clear game plan or eventual outcome in mind. The Fed is simply going to keep doing what it’s done for five years until something breaks.

    That something will be the entire financial system. We will have a crisis that is substantially worse than 2008. It is coming. In fact it is now coming much sooner than it would have had the Fed announced a taper yesterday.

    In the meantime, inflation is soaring. The Fed continues to lie about CPI and inflation but the reality is that the cost of everything is going up.

    For more information on inflation and how to prepare for it, visit us at:

    http://gainspainscapital.com/the-inflation-secrets-your-broker-wont-tell-you/

    Best

    Phoenix Capital Research

    19th September 2013 at 1:39 pm

  32. Bostonbob says:

    Also from Karl:

    Bernanke ROBS Pension Funds And People

    That’s the correct headline:

    America’s companies, from Apple Inc. (AAPL) to Verizon Communications Inc., are saving about $700 billion in interest payments with the Federal Reserve’s unprecedented stimulus.

    Corporate bond yields over the past four years have fallen to an average of 4.6 percent from 6.14 percent in the five years before Lehman Brothers Holdings Inc.’s demise, a savings equal to $15.4 million annually per every $1 billion borrowed. Businesses took advantage of the Fed’s largesse to lock in record low rates, extend maturities and raise cash by selling $5.16 trillion of bonds, data compiled by Bloomberg show.

    He “saved” nobody anything — he has basically transferred $700 billion from pension funds (that’s you, middle-class America) to these firms and has done so, effectively, at gunpoint.

    The idea that someone “saves” when borrowing is not only wrong it’s an intentional falsehood — a lie. When rates go down the people who do the lending make less in exactly identical amounts to the companies that pay less.

    Since the holders of these long-term debt instruments tend to be pension funds, the person who takes it up the butt as a consequence of these policies is you, the middle-class American consumer.

    Make sure you say “Thanks Ben” for the sexing — after all, since you’re consenting it certainly isn’t rape.

    19th September 2013 at 2:31 pm

  33. juan says:

    The USA goes in and rapes countries and takes its sweet time in withdrawing, now it is doing the same to America proper. We put up a fight but congress, representing themselves, approved the rape. Lady Liberty is starting to look a little bandy-legged like one of AWD’s girlfriends.

    19th September 2013 at 8:10 pm

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