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

Turd Ferguson's picture

LIESman just asked specifically about gold and crude

MODERATOR

and The Bernank said nothing. Answered other parts of the question. Didn't say "gold" or "oil" at all.

Puck T. Smith's picture

@Turd re:everyone reading this must realize that today is....

"However, everyone reading this must realize that today is the first day of new paradigm."

I'm holding you to that. smiley

http://pucksmith.blogspot.com/2012/09/quote-of-day-september-13-2012.html

For what it's worth, I just went out for a smoke break and took a walk around the block.  Where I work in DC I'm one block north of the infamous K Street.  All the suits walking around seem oblivious to the reality of what just happened.  Things are feeling a bit unreal right now.

jaw777's picture

Final Phase

I am as excited as everyone else here regarding the pop in  the metals, however, it is a sad day for our country.  The Unites States is now a banana republic.  This day will mark the final phase of the dollar.  Inflation will increase dramatically from here forward.  Regardless of your prepping, any societal breakdown is sad. 

The worst part is that all of this should have been avoided.  The greedy and power hungry politicians and bankers duped a society that was all too ready to believe the lies.  Our educational system quit teaching the letter and spirit of our constitution making it easy to believe we could have wealth and prosperity without working for it.  America will survive.  Order will be restored if things get out of control.  This country will just never be what it once was during my lifetime.  It is not unlike the passing of a good friend. 

Fritz's picture

smash

and here come the monkeys

Dr G's picture

He just said that one of the

He just said that one of the tools to provide further accommodation is to improve Fed communication with the public? WAT!?

Fed has blown their wad. They have no more tools.

Dyna mo hum's picture

Well well old Turd

A while back some forum members out right asked or demanded that the Turd spill the beans to any "secret" info Turd might be privy to about his HEH prediction . Today the Bernank dumped the beans. The Turd still has his noble creditability and likely more secrets in his cuff. Patience grasshopper!

Island Teal's picture

Coming back to Life

Is today the day we can truly say this?

from the master - enjoy the day !!!

Bugzy's picture

For those who have been around for a while

I posted this song on our last big CHARGE (probably ocer a year ago now) - we took a good kicking on that day.

I have been waiting for the right time to post it again. Today appears to be that day

So with out further ado.

Bugzy

ReachWest's picture

Variety of Tools

Asked whatever tools remain to be used ... Bernanke says they have communication tools to work with - basically to manipulate public perception through the shills like those muppets in the audience asking Ben the questions?

They have NO TOOLS left. This is the "Oh F@#k" moment we are approaching. [Come to think of it, perhaps we passed that point earlier today.]

Eric Original's picture

Rickards

Jim Rickards is live tweeting the Bernank right now.  Great stuff.

https://twitter.com/JamesGRickards

SS1's picture

What time does FOMC headlines gets release?

I thought it was 2:15 EDT? I woke up here in sydney at 4am instead of 2:15am. Looks like I lost $2 trade by 2hours :(.   Oh well, next time I won't sleep and wait for andy's post when he lets people know that fireworks will be happening in a couple of minutes.

Dimeboy's picture

QE Targeting labour market...

"No specific number in mind"

holy cow~!

Dimeboy's picture

QE Targeting labour market...

dup

humbleprofits's picture

You can tell when he is skewing the truth

His voice quivers something fierce.  Fudd-like

ScottJ's picture

Question:"How do these

Question:

"How do these programs help the average person instead of just giving money to banks and hoping for the trickle down effect?"

Answer:

House prices higher, stocks higher ==> Higher 401ks, Higher Confidence = More spending = economy fixed.

...

Oh baby the wealth effect is the solution!

Why didn't I think of that, no wonder this man won Man of the Year in 2009 by Time Magazine.

Terp's picture

Gold Trading Halted Twice....

This just showed up on my news ticker:

09-13 11:32: CME Group: Gold Trading Halted Twice to Prevent Volatility

By Tatyana Shumsky

NEW YORK--Exchange operator CME Group Inc. (CME) said it halted trading in gold futures twice Thursday to prevent excessive price volatility, according to an email from a spokesman.

Stop Logic, a type of circuit breaker that pauses trading for between five and 20 seconds, was triggered at 12:14:47 EDT and at 12:31:20 EDT Thursday.

"Stop Logic offers market participants the opportunity to provide additional liquidity and permits the market to regain its equilibrium," the spokesman said in the email.

Comex gold futures for December delivery, the most active contract, settled up 2.2%, or $38.40, at $1,772.10 a troy ounce.

ReachWest's picture

Setting Up for More?

Looks like Gold and Silver dropping a wee bit - probably being done in anticipation of the rise post Baffle Ben's presser.

Vic's picture

Help me explain this

I am, like many of you, the only one in my "circle" who is even remotely interested in this kind of topic (the economy, inflation, PMs, etc.).

I'm going to need to be able to explain what happened today and what it means going forward. I don't think I can explain it because I don't understand the flow of things into the future. Help me fill it in, if you would be so kind.

1. The economy collapsed in 2008 because of massive drops in the value of mortgage property and resulting mortgage-backed securities and swaps.

2. To bail out the banks, the Fed bought a huge number of these toxic assets at full value. Now the Fed is (theoretically) on-the-hook for the value of these mortgages and derivatives while the banks now have cash.

3. The banks took all this new cash and ______________ ( I don't know).

4. Fast forward to today when this pattern will apparently continue to infinity. The banks get relieved of their less-than-desirable mortgages and derivatives in exchange for cash. With this cash the banks will _________.

5. As a result of ________, we will have massive price spikes in food, PMs, oil/gasoline, and other essentials because ______.

I should know this already, I admit. I just don't understand the mechanics of it. The banks were short on lending capital because of their bad bets in the mortgage markets. Now that they will have all this capital back as a result of this never-ending QE, what is the step-by-step that leads to massive inflation? I can imagine the RESULT, but I don't know the steps of the PROCESS.

Dr Jerome's picture

Beware the gold dragon, Ben!

Just wait till Asia starts trading...

ClinkinKY's picture

Good afternoon everyone...

...anything "exciting" going on today?wink

SE's picture

Bigfoot

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.

This is more realistic.  You must mean this.

Lightning's picture

Dr G and Raoul

Yes indeed this bad for all of us.  However I am pretty happy with performance my rather large batch of SLV call options.  Thank you Turd.  I went in big with physical and SLV options when silver was at 27.50 about a month ago. 

Irene's picture

To whoever keeps asking to chat

Sorry, we're super busy today and I don't know this platform and admit to being a bit stymied by it.  Please email me and I'll reply ASAP.  Apologies, Irene 

ancientmoney's picture

@reefman

Hope you listened to Turd and used the $16,000 to buy physical.

ReachWest's picture

Sheesh

Bernanke talks about the Fed maintaining the trust of the public?? Most in the public don't even know what the Fed is. And, those of us who do have knowledge of the Fed - have ZERO trust. Sheesh.

Puck T. Smith's picture

I just noticed that the GSR

hit 50.96 for few minutes.  I don't have my charts handy being at work, but I seem to remember that when we were in this price range on silver in 2011 the GSR was around 40.  Not sure what that means, but I do think it is notable. 

humbleprofits's picture

And now the new set up

"These efforts may not necessarily cure all of the ills..."

Sounds like they are starting to lay out their "we did all we could" argument.  Maybe a way to shoot one over the bow of Congress. 

Makes me think they are just a wee bit worried.

RaRaRasputin's picture

Yeehaw!

Loving the action today - thank you Benny & the Inkjets :)

Thought I would also share this petition that hit my inbox today should you wish to sign it:

Dear friends,

Details are leaking of a top-secret, global corporate power grab of breathtaking scope -- attacking everything from a free Internet to health and environmental regulations, and we have just 4 days to stop it.

Big business has a new plan to fatten their pockets: a giant global pact, with an international tribunal to enforce it, that is kept top secret for years (even from our lawmakers!) and then brought down like a Death Star on our democracies. Big Tobacco, Big Oil, Big Pharma, Walmart and almost 600 other corporate lobbyists are all in on the draft -- including limits on smoking laws, affordable medicines and free speech on the Net.

The latest round of negotiations ends in just 4 days -- but outcries in each of our countries could shake the confidence of negotiators and scuttle the talks forever. Let's get to a million against the global corporate takeover. Sign below and forward widely. Avaaz will project our petition counter on the walls of the conference so negotiators can see the opposition to their plan exploding in real time:

http://www.avaaz.org/en/stop_the_corporate_death_star/?bOxNlab&v=17848

The deal, called the Trans-Pacific Partnership (TPP), is written to protect investors from government regulation, even if that regulation is passed in the public interest. Leaked versions suggest the TPP would undermine protections for air and water safety and reintroduce measures from the US Internet freedom attack as well as steamrolling efforts to produce generic affordable medicines. Worse still, lawmakers who fail to conform to the TPP’s rules face sanctions in an international tribunal -- a place where corporations can sue us for deals previous governments signed in secret!

Negotiators say this is just a trade agreement, written to facilitate investment and profit for all. But the leaked draft imposes so many limits on citizen protections, it's clear this "trade" agreement is skewed to put corporate profit above people's needs -- that's not surprising since it's been drafted in secret with almost 600 corporate lobbyists.

But there is hope: Australia is bucking against the international tribunal system, and New Zealand is objecting to the takeover of its medicine-pricing protections that keep drugs affordable. Massive public opposition, casting doubt over each country's ability to sell TPP at home, could derail the talks for good

US Senator, Elizabeth Warren in a recent speech said: “Corporations are not people. People have hearts, they have kids, they get jobs, they get sick, they cry, they dance. They live, they love, and they die. And that matters, because we don't run this country for corporations, we run it for people." Let’s reach one million to stop the corporate takeover of our governments.

RaRa

silver foil hat's picture

I guess now we know why rthe DJIA had a .35 tail yesterday

3+5 = 8

8 on its side is ∞

There ya go...

Schwartz9546's picture

Scottsdale

Scottsdale "Down for Maintenance".....hummmmmm

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