QE To Infinity

Long-rumored and oft-discussed, QE to infinity is finally a reality.

Here are the Bernank Fedlines from ZH:

*FED TO KEEP POLICY STIMULATIVE FOR `CONSIDERABLE TIME'
*FED WILL ADD TO PURCHASES IF LABOR MARKET DOESN'T IMPROVE
*FED DOES NOT SAY WHEN MBS PURCHASE PROGRAM TO END
*FED TO BUY $40B MBS MONTHLY, CONTINUE `OPERATION TWIST'
*FED TO BUY MBS, EXTENDS ZERO-RATE POLICY INTO 2015

Here's the key take-way: This is it. This is open-ended, QE to infinity.

Note the Fedline: FED WILL ADD TO PURCHASES IF WHEN LABOR MARKET DOESN'T IMPROVE

I also saw a headline on CNBS that stated that Operation Twist will end at the end of the year. Of course it will. As noted a few weeks ago, The Fed is nearly out of short-term paper to exchange for long-term paper. The end of Twist will surge new printing from this $40B number to the full $85B number.

Now note this Fedline: FED DOES NOT SAY WHEN MBS PURCHASE PROGRAM TO END

This is QE to infinity. It has begun and it will not end.

The important thing here is patience. Gold and silver will continue surging higher. There will, undoubtedly, be bouts of profit-taking that will last minutes and sometimes hours. Sometimes maybe even days. But these periods will be brief and ALL DIPS MUST BE BOUGHT.

Maintain and build core positions. Add to your stack at every opportunity. The perennial shorts of paper metal are going to be squeezed with ever-increasing intensity even while the "historic" aspects of this rally have still yet to be realized. Cartel banks will be left with no choice but to systematically cover their positions. They will attempt to do this in an orderly fashion but a rush toward physical ownership will likely disrupt their plans.

Gold and silver will both soon trade at new all-time highs. Again, this will not be a straight line up as there will most certainly be dips and pauses along the way. However, everyone reading this must realize that today is the first day of new paradigm.

We haven't even discussed yet the spiraling situation in the MENA or the strikes in South Africa. Maybe we will later today. For now, though, if I were you, I'd head out to my local coin shop or maybe click the HardAssetsAlliance link on the homepage. If you have to ask yourself "do I have enough physical?", you probably don't. Buy some today. Buy some tomorrow. Buy some more next week. The end of The Great Keynesian Experiment is upon us. Prepare accordingly.

TF

435 Comments

twippers's picture

first to infinity?

how great is this day???

onealpha's picture

Let it Ride!!!

I am long and strong all PM.

50Jim's picture

if it stops now

then I would win w/my prediction    1769

silver at 34.70

ivars's picture

Here we go. No pullbacks to

Here we go. No pullbacks to get in. Now, 2 nice days.

Added 1000 Oz XAG at 34,22.

Turd Ferguson's picture

And if you have profited from

MODERATOR

And if you have profited from 26 to 35, I do gladly accept honoraria. wink

AC_Doctor's picture

Binky Ben comments to send AU through $35.00

When Binky Ben speaks (lies and misinformation spews out of his crooked mouth) I hope it sends the algos crazy and AU blows through $35.00!

kn33bar's picture

Thanks Turd

For helping me protect my family and all that will listen from the inflation and other things that are coming.

¤'s picture

$1800 & $35

If it wasn't for that engineered headfake we'd have surpassed those levels already.

We're approaching them quickly. :-)

tyberious's picture

I have

Never been more afraid than today! During the accumulation of all my prep work, I though there was a 90% chance that I would not have to use it. WE have truly walked over to the abyss!

Lord Help Us All!

Dr G's picture

LOL at somebody in the other

LOL at somebody in the other thread calling these moves overprint or something like that.

Just wait until the press conference. That's all I can say.

And I predicted 1810 and 35.25. Let's watch. I think my predictions are too low. Especially since 1764 has been eclipsed. Now we go to the inevitable 1900 before a major breather.

Turd Ferguson's picture

from ZH

MODERATOR

http://www.zerohedge.com/news/bernanke-unleashes-path-new-all-time-highs-precious-metals

And sorry about the intermittent server problems. We have had some very nice spikes to 1000+ users. Seems to be working better now, though.

Swineflogger's picture

Please Watch and Pass Along

Turd Ferguson's picture

Again, please let me stress

MODERATOR

Open-ended QE is a paradigm-shifting, game-changer. Be long and stay long. Buy all dips.

tpbeta's picture

And if you sold your $26 silver at $27

..Welcome to the dumbass club of which I am  president sad

Swineflogger's picture

And once again on the lighter side . . . . TRUE FRIENDS

So It Goes's picture

Blast off

TO DA MOON.

Nothing more to say.

Keep stacking and prepping.

Feed the Turd.

¤'s picture

TF Vindicated

You can choose to look at things in many ways.

What I just saw was the HEH that TF has been talking about.
Whatever he had in mind (and might still happen on top of QE3) is gravy at this point.
Hot, explosive and historic just happened and the lava is still flowing upwards.

Nice call BYH'd one. Part 2 should be a sight to behold.

Dr G's picture

I remember somebody telling

I remember somebody telling me that this would be a hot and explosive period of time, but I can't remember who it was. Hmm.

EDIT: @DPH, I've always read Turd's comments as relating to the way that silver (and gold) contracts will be bought, sold, and physical delivered in the exchanges. I don't think they've related to QE. I think what he is alluding to is still coming...

jaw777's picture

HEH

A while back I bought a October AGQ call based on your HEH summer prediction.  Just hit the donate button.  You da man Turd!

Turd Ferguson's picture

Thank you, DPH.

MODERATOR

Appreciated.

Response to: TF Vindicated
Pining 4 the Fjords's picture

Wherefore art thou Johnny Dow?

I am shocked.  SHOCKED! That Johnny Dow isn't here to admit his "PM's going down" deflationary schtick was incorrect.  Guess I will have to wait until the first 2% pullback to hear the dulcet tones of his voice whispering sweet nothings again.  Pity. 

On another note-  Flush today?  Feeling good about yourself for being smart, on top of this move, and profiting from it?  Then feed the Turd, my friend.  Render unto the Turdster what you should, in thanks for the insight you get from this little place he's created. 

S Roche's picture

QE To Infinity...

$1764 is THE Golden Angel.

agauinvest's picture

MBS?

(1) Why so MBS focused?  How low can/[do they want to] lower mortgage rates?  Wonder if it is more likely that someone with MBS is in trouble and needs bailed out?

(2) Back of napkin rough guesstimating math - I don't think the Fed can actually continue twist, since they should be low on short term treasuries available to sell to buy the long term ones by now. 

Horst's picture

Sooo.. anyone agrees that

Sooo.. anyone agrees that we'll spend quite some time around the 36$ mark again in the near future?

croc987's picture

Blastoff with TF

See y'all at $150.00

Eric Original's picture

Happy Birthday everyone! QE

Happy Birthday everyone!

QE to infinity is reality.  It's like we've all been searching for Bigfoot.  We believed he was out there.  We've searched and searched and then today he just comes marching right into camp, sits down and asks for coffee.

Dr G's picture

Sooo.. anyone agrees that

Sooo.. anyone agrees that we'll spend quite some time around the 36$ mark again in the near future?

No. You do realize that this is QE3...and QE4...and QE5...etc. all in one bundle, right? This is it. There isn't anything else the Fed can do. Their tools are all used up. This "round" of QE will continue until the system implodes.

Air Garcia's picture

someboy took the headfake...

and sold me a march34 @ 23.5 

and a march35 @ 19.5

DOH!surprise

Angrycitizin's picture

Short Squeeze to $100??

An Ed Steer reader saw CME trader Michael Gurka on CNBC this morning, talking about the "stealth move" in silver from 27.xx to 33.xx. The idiot anchor cut him off several times, but Gurka got the $100 figure out first.

Anyone else heard anything like this recently?

http://video.cnbc.com/gallery/?video=3000115337&play=1

Start listening at about 2:45 mark. The beginning is worthless.

BillAuAg's picture

Watching the Chart

This appears to be a very orderly market.  Nothing that looks like a panic.

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