QE To Infinity

432
Thu, Sep 13, 2012 - 1:23pm

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

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  432 Comments

twippers
Sep 13, 2012 - 1:24pm

first to infinity?

how great is this day???

onealpha
Sep 13, 2012 - 1:24pm

Let it Ride!!!

I am long and strong all PM.

50Jim
Sep 13, 2012 - 1:24pm

if it stops now

then I would win w/my prediction 1769

silver at 34.70


Sep 13, 2012 - 1:26pm

And if you have profited from

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

AC_Doctor
Sep 13, 2012 - 1:28pm

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
Sep 13, 2012 - 1:28pm

Thanks Turd

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

ivars
Sep 13, 2012 - 1:29pm

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.

¤
Sep 13, 2012 - 1:30pm

$1800 & $35

If it wasn't for that engineered headfake we'd have surpassed those levels already. We're approaching them quickly. :-)

tyberious
Sep 13, 2012 - 1:30pm

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!


Sep 13, 2012 - 1:32pm

from ZH

https://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.

Dr G
Sep 13, 2012 - 1:32pm

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.

Swineflogger
Sep 13, 2012 - 1:32pm

Sep 13, 2012 - 1:33pm

Again, please let me stress

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

tpbeta
Sep 13, 2012 - 1:33pm

And if you sold your $26 silver at $27

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

Swineflogger
Sep 13, 2012 - 1:34pm
¤
Sep 13, 2012 - 1:35pm

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.

So It Goes
Sep 13, 2012 - 1:38pm

Blast off

TO DA MOON.

Nothing more to say.

Keep stacking and prepping.

Feed the Turd.

¤
Sep 13, 2012 - 1:38pm

Thank you, DPH.

Appreciated.


Sep 13, 2012 - 1:39pm

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. 

jaw777
Sep 13, 2012 - 1:39pm

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!

Dr G
Sep 13, 2012 - 1:39pm

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...

S Roche
Sep 13, 2012 - 1:42pm

QE To Infinity...

$1764 is THE Golden Angel.

agauinvest
Sep 13, 2012 - 1:43pm

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
Sep 13, 2012 - 1:44pm

Sooo.. anyone agrees that

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

Eric Original
Sep 13, 2012 - 1:44pm

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.

bigfoot patterson tiagopsc
Air Garcia
Sep 13, 2012 - 1:47pm

someboy took the headfake...

and sold me a march34 @ 23.5 

and a march35 @ 19.5

DOH!surprise

Dr G Horst
Sep 13, 2012 - 1:48pm

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.

croc987
Sep 13, 2012 - 1:49pm

Blastoff with TF

See y'all at $150.00

BillAuAg
Sep 13, 2012 - 1:49pm

Watching the Chart

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

Angrycitizin
Sep 13, 2012 - 1:51pm

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?

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

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

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