Jesse and Zero Hedge capture the jist of Bernanke’s limp dick attempt to revive the spirits of the Wall Street whores. He is now buying $85 billion of debt per month. That just so happens to equal $1 trillion per year, or the annual U.S. budget deficit, giver or take a few hundred billion. I found it hysterical that Marketwatch had bold headlines yesterday that Bernanke is finally fighting for the unemployed. Give me a fucking break. Can some Wall Street whore explain to me how Bennie buying up $45 billion of toxic mortgage debt from his Wall Street masters is going to help Joe Blow get his job back at the Twinkie factory? Bennie has been applying the same medicine for four years in ever larger doses and the result is that 10 million Americans have left the work force, there are 4 million less people employed, food stamp participants have gone up by 20 million, real wages have declined for 22 straight months, gasoline prices in 2012 were the highest in history, $400 billion of interest on savings has been stolen from senior citizens and handed to Wall Street, and the economy has never left recession.
Ben Bernanke’s sole purpose is to do what the owners tell him to do. He doesn’t give a fuck about you if you are unemployed or underemployed. He gives a fuck about the people at cocktail parties in Washington DC and Manhattan. I’m still waiting for the press conference when he pulls a Bud Dwyer.
Considering that both measures are tacitly rigged and phony, that pretty much means that Benny will print until the exhaustion and collapse of the dollar, or until it suits their interests not to do it.
The only surprise in Benjy’s press conference was that he grew up in rural South Carolina and goes back for visits. I didn’t see that one coming.
The money shot today was when the male spokesmodel on Bloomberg said ‘and gold is up only five dollars after that Fed announcement.’ All that capping just to try and make the impression that QE until hell freezes over isn’t inflationary? I hope it was worth it.
Stocks pulled back from the necklines on their inverse head and shoulders, and gold and silver rallied back, but the pop higher was pale in context because of the pounding the metals had taken for the past week. There were no big drops, but lots of cheap shots and quick hits.
So what next. It’s all fiscal cliff now, all the time, until the end of the year. Or the real Mayan calendar end date, which is not 12-12-12 like so many think. It is 21 December 2012, which is also the last date by which legislation can be submitted to the US Congress for consideration this year. So if you are planning on the end the world, its time to RSVP.
I really cannot say what these fiscal cliff jokers are going to do, but I do know that Obama has the whip hand, even if it was ten years in the making, and after the previous twenty times that the Republicans used and abused his good will gestures in negotiating against himself, he is likely to let it ride.
The cliff is phony anyway, although I am sure it will be used as a looting opportunity on Wall Street.
Once the cliff passes, 70% of the deficit evaporates. Horrors! And they have plenty of time to tweak it in the new Congress so the effects are very unlikely to be lasting.
I am almost positive the US is heading into a recession next year anyway, the policy decisions are so cockeyed against the median wage earner and consumer. They might try and hide it by throwing money at it, and there lies stagflation, even if they hide the inflationary part.
El Cliffo Fiscal gives the Republicans political cover, because now the tax cuts expire and they cannot be blamed for raising taxes. So Grover and his bully boys cannot be madder than usual that they are not warlords in Somalia rather than citizens in a Republic. And then the Republicans can cut a deal and lower taxes somewhat and look like heroes.
I don’t have a lot of confidence (lot = greater than zero) in Obama and the Dems making a decent deal for the American people. The Republicans are whores for the monied interests and are as bad or worse. I think it was Gore Vidal who said that the Dems and GOP are just two different wings of the Big Money Party, and that sounds about right.
So let’s see what happens.
Spot The Odd One Out
Submitted by Tyler Durden on 12/12/2012 16:06 -0500
A funny thing happened today. For the first time, the equity and bond market closed red (and VIX green) on a Federal Reserve QE-announcement day. Gold outperformed stocks and Treasuries underperformed everything…
The S&P 500 futures contract has never closed red on the day of a QE announcement before…
VIX closed higher for the first time ever on a QE announcement day…
10Y Treasury Yields rose for the first ime ever on a QE announcement day…