Wtf did the protestant have to say?

[Neuro]

Bernanke I mean...

[osoab]

2:15 EST

About 15 more minutes before the announcement

[Neuro]

2:15 EST

About 15 more minutes before the announcement

Ah... I thought he was speaking at 1!

[MAGNES]

Bernanke I mean...

Rabbi "Gentiles only exist to serve jews" (http://gold-silver.us/forum/showthread.php?54337-Rabbi-quot-Gentiles-only-exist-to-serve-jews-quot)

Divide and Conquer, Onward Christian Soldiers.


Gold is ticking down, LOL .

I am looking for a small entry for October drop but it ain't working out.

BREAKING NEWS

" Palestinians withdraw Statehood bid at UN. " Local news announcement just now.

[Awoke]

It is 2:15 EST right now.

Keep us updated please.

[madfranks]

OPERATION TWIST IS OFFICIAL: FED TO SELL $400 BILLION OF SHORT-TERM DEBT, BUY $400 BILLION OF LONG-TERM DEBT

http://www.businessinsider.com/federal-reserve-announcement-fomc-operation-twist-2011-9

The announcement is out: This is operation twist.
The Fed is selling $400 BILLION of short-term debt, and buying $400 billion of logn-term debt.
The full announcement is here (http://www.federalreserve.gov/newsevents/press/monetary/20110921a.htm).

[madfranks]

I guess the idea is to push long term interest rates down at the expense of short term rates, but what good does this do? And just who is buying to $400b of short term debt the fed is selling?

[Awoke]

I don't get it.

What's the difference?

[madfranks]

I don't get it.

What's the difference?

According to the official report straight from the fed:


This program should put downward pressure on longer-term interest rates and help make broader financial conditions more accommodative

In other words, nothing really.

[undgrd]

http://www.zerohedge.com/news/operation-twist-here-fed-buy-400-bilion-usts-6-30-year-maturity-roll-maturities-mbs

# FED TO BUY TREASURIES WITH 6-YEAR TO 30-YEAR REMAINING MATURITY
# FED LEAVES FEDERAL FUNDS RATE TARGET AT ZERO TO 0.25 PERCENT
# FED SAYS PROGRAM PUTS `DOWNWARD PRESSURE' ON LONG-TERM RATES
# FED TO SELL TREASURIES WITH 3-YEAR OR LESS REMAINING MATURITY
# PLOSSER, FISHER, KOCHERLAKOTA DISSENT FROM FOMC DECISION
# FED REPEATS `EXCEPTIONALLY LOW' RATES THROUGH AT LEAST MID-2013
# FED TO BUY $400B OF LONG-TERM DEBT, SELL $400B SHORT-TERM DEBT
# FED EXTENDS AVERAGE MATURITIES OF SECURITIES HOLDINGS
# FED TO REINVEST MATURING HOUSING ASSETS IN HOUSING DEBT
# FED SAYS INFLATION `APPEARS TO HAVE MODERATED'
# FED SEES `CONTINUING WEAKNESS' IN LABOR MARKET
# FED PURCHASES TO BE DISTRIBUTED ACROSS FIVE SECTORS
# FED SAYS 32% OF DEBT PURCHASES MATURE FROM 6- TO 8-YEARS
# FED SAYS 32% OF DEBT PURCHASES MATURE FROM 8- TO 10-YEARS
# FED SAYS 4% OF DEBT PURCHASES MATURE FROM 10- TO 20-YEARS

[Twisted Titan]

I guess the idea is to push long term interest rates down at the expense of short term rates, but what good does this do? And just who is buying to $400b of short term debt the fed is selling?


Filthy rich.trillionares in the caymans

[Neuro]

I guess the idea is to push long term interest rates down at the expense of short term rates, but what good does this do? And just who is buying to $400b of short term debt the fed is selling?

I think they expect the European and Japanese central banks to do that, with the dollars they created from thin air, and swapped for Euro's, Pound's and Yen's created out of equally thin air, just as these countries expect them to buy their bonds to support their crashing economies. The benefit of this arrangement is that it is slightly harder for someone not following their shenanigans to figure out that they have debased the currencies involved to finance the galloping deficits, and you can certainly count on the non-investigating journalists of ziomedia NOT to report on it.

The central bank swap a few days earlier was QE 2.5! Does anyone know how much they printed (figuratively speaking) and swapped?

[Large Sarge]

The central bank swap a few days earlier was QE 2.5! Does anyone know how much they printed (figuratively speaking) and swapped?

I heard it was like $1.3 trillion or so in the last week ( 1 trillion euros = roughly 1.3 trillion dollars)

[Neuro]

I heard it was like $1.3 trillion or so in the last week ( 1 trillion euros = roughly 1.3 trillion dollars)

So that is about twice as much as QE2 ($600B), which was bigger than QE1.5 ($500B), which was bigger than QE1 ($300B). Of course I am not counting the printing to cover the commercial papers default, but I don't have those figures in my head... One thing is clear though...

Monetization is accelerating!

[madfranks]

I think they expect the European and Japanese central banks to do that, with the dollars they created from thin air, and swapped for Euro's, Pound's and Yen's created out of equally thin air, just as these countries expect them to buy their bonds to support their crashing economies. The benefit of this arrangement is that it is slightly harder for someone not following their shenanigans to figure out that they have debased the currencies involved to finance the galloping deficits, and you can certainly count on the non-investigating journalists of ziomedia NOT to report on it.

That was my thought too, so the net of it is an additional $400 bn out of thin air to buy long term treasury debt. $400 bn is lower than I thought it would be, I thought for sure it would be closer to a trillion.

The markets aren't really reacting strongly one way or the other. The dow is only down around 60 and metals are mixed.

[Neuro]

That was my thought too, so the net of it is an additional $400 bn out of thin air to buy long term treasury debt. $400 bn is lower than I thought it would be, I thought for sure it would be closer to a trillion.

The markets aren't really reacting strongly one way or the other. The dow is only down around 60 and metals are mixed.
If Large sarge's number is correct, the European/Japan central banks have about 1.3 Trillion dollars to pump into treasuries or other securities, maybe more. And the fed has the equivalent to buy Euro, Yen, GBP and swissy paper...

[Large Sarge]

By the way, i just have to say, I love the title of this thread "Ben the Protestant" has spoken

LOL

OMG

Alex Jones could do a side show carnival act, if his radio program failed...

"bernanke is a protestant"

[midnight rambler]

Anyone up for a game of three card monte?

[Neuro]

Anyone up for a game of three card monte?

Thats exactly what it is!

[Libertytree]

The markets didn't like it...Dow down 240.

[MNeagle]

-284

[Neuro]

The markets didn't like it...Dow down 240.

Thats the thing too, they allready pumped in 2.6 Trillion dollars worth of liquidity through the currency swap last week. If they by not openly monetizing, can keep the markets down initially, that means that those banks gets a part of that liquidity can buy up assets on the cheap. I think we will see silver down to about 35-36, probably within days, Dow to the low 10k's, and then those on the inside will start buying... And then it will accelerate as the money trickles in to the market... Rapid gains in the spring until the money runs dry. Wouldn't be surprised if we see gold at $2500, silver at $100 and DOW at 15.000 in May or so...

[vacuum]

Doesn't converting short term debt into long term debt put pressure on the dollar? Its pushing the debt repayment out farther, delaying payment responsibilities, using larger amounts of credit (credibility), and accepting a higher interest rate.

[gunDriller]

-284

The Stock Markets Pout
Operation Twist and Shout
Fed to the Rescue !

[Buddha]

The protestant speaks
Markets fall as autumn leaves
Cold winter approaches

[Horn]

Dollar Black, Euro Red.

https://onlinecourses.science.psu.edu/stat414/sites/onlinecourses.science.psu.edu.stat414/files/lesson05/roulette.jpg

[ximmy]

You blew up our bunkers... no soup for you!

[Neuro]

I think we will see silver down to about 35-36, probably within days, Dow to the low 10k's, and then those on the inside will start buying... And then it will accelerate as the money trickles in to the market... Rapid gains in the spring until the money runs dry. Wouldn't be surprised if we see gold at $2500, silver at $100 and DOW at 15.000 in May or so...
Getting close to pulling the trigger Silver trading at the high 37's, and G/S ratio up above 46...

Thanks Ben, you Protestant you!

[BillBoard]

Sale of Short Term Debt

------------------------------------------
Fed's short term debt -----to market----> |x| <--$---Cash from Market to Fed.
"Liquidity crunch in private sector."

Investors seeking safety, Short term interest rate drop.
-------------------------------------------------

Fed's Cash to Market -------> |x| <---Market's long term Treasuries

Investors seeking capital gains, Fed adding liquidity to market. Long term interest rate increase.

---------------------------------------------------------

Looks like a charade to me, get ready for a fleecing.

[Horn]

Getting close to pulling the trigger Silver trading at the high 37's, and G/S ratio up above 46...

Thanks Ben, you Protestant you!

We get back to 18 Euros, I'm game.

[gunDriller]

Quoth the Protestant
Can not do Nothin, SORRY !
- Banker Bernanke.

[madfranks]

Thats the thing too, they allready pumped in 2.6 Trillion dollars worth of liquidity through the currency swap last week. If they by not openly monetizing, can keep the markets down initially, that means that those banks gets a part of that liquidity can buy up assets on the cheap. I think we will see silver down to about 35-36, probably within days, Dow to the low 10k's, and then those on the inside will start buying... And then it will accelerate as the money trickles in to the market... Rapid gains in the spring until the money runs dry. Wouldn't be surprised if we see gold at $2500, silver at $100 and DOW at 15.000 in May or so...

Amazing prediction, you seem to have nailed it right on the head!

[BillBoard]

I told you a fleecing was in order, but just you wait, their is a lot more pain on the way!