Taper is on, cutting $15 billion in Sept.

[Large Sarge]

http://www.zerohedge.com/news/2013-08-22/primary-dealers-have-spoken-taper-begins-september-15-billion-trim-qe-ends-june-2014

[chad]

so, they ramp it up to 115 billion a month in september, then?

[Ares]

http://www.zerohedge.com/news/2013-08-22/primary-dealers-have-spoken-taper-begins-september-15-billion-trim-qe-ends-june-2014

LMAO good luck.

You think 2.9% yield on the 10 year Treasury is high now. Just wait until they taper...

Entire system is a fucking joke. There's no way the FED can taper or unwind it's balance sheet. They're (we're) fucked.

[mick silver]

so if this is true then it time to pick up more food and store

[Large Sarge]

There is a historic relationship between gold, and interest rates, LBMA, COMEX, Federal Reserve, and numerous banks (And I think the 500 to 1 GSR on sales at the mint is a default on gold),

They might not have a choice folks, the gold is all gone.

[madfranks]

LMAO good luck.

You think 2.9% yield on the 10 year Treasury is high now. Just wait until they taper...

Entire system is a fucking joke. There's no way the FED can taper or unwind it's balance sheet. They're (we're) fucked.

This. There is absolutely no way the Fed can stop the easy money spigot. The choices are simple, either keep the easy money flowing and kick the can down the road some more, or stop the easy money and enjoy the train wreck. If they start tapering off the QE, and interest rates start spiking, they'll turn the spigot back on very quick.

[Large Sarge]

This. There is absolutely no way the Fed can stop the easy money spigot. The choices are simple, either keep the easy money flowing and kick the can down the road some more, or stop the easy money and enjoy the train wreck. If they start tapering off the QE, and interest rates start spiking, they'll turn the spigot back on very quick.

think about Lindsey Williams, he said they will detonate the derivatives (through interest rates) before Jan 2014

and these people, the top, owners of the federal reserve, the only way they can make money at this point, is for everyone else to lose, zero-sum game, you think they want to buy more bonds from a bankrupt govt?

Lindsey said they would detonate it all before Jan, hold onto your gold and silver, and get a pencil and paper

[Ares]

This. There is absolutely no way the Fed can stop the easy money spigot. The choices are simple, either keep the easy money flowing and kick the can down the road some more, or stop the easy money and enjoy the train wreck. If they start tapering off the QE, and interest rates start spiking, they'll turn the spigot back on very quick.

Look what happened last time they even said that they were THINKING about tapering. Interest rates started spiking, Uncle Ben goes out and whores himself and says no, no, no, we'll keep QE going for the foreseeable future.

Rock <<Fed>> Hard Place

Fed has no more wiggle room.

[Large Sarge]

Look what happened last time they even said that they were THINKING about tapering. Interest rates started spiking, Uncle Ben goes out and whores himself and says no, no, no, we'll keep QE going for the foreseeable future.

Rock <<Fed>> Hard Place

Fed has no more wiggle room.

that was a test detonation...

they saw how the market reacted to his news....

they are going to implode it all like 9/11

[mamboni]

http://www.zerohedge.com/news/2013-08-22/primary-dealers-have-spoken-taper-begins-september-15-billion-trim-qe-ends-june-2014

This is just an opinion poll of the primary dealers, not the FED. So now that POMO has failed, the FED is uisng the primary dealers to spread POOPOMO (Positive Opinions On Permanent Open Market Operations). So let's do a thought experiment:

1. the treasury creditors expect POMO to taper
2. interest rates can only go higher
3. therefore, bond principles can only go lower
4. therefore holders of bonds will sell now to minimize future losses.

When hundreds of billions of dollars in Tresuries flood the market, who will buy them?

1. The public? No, it's largely tapped out and unemployed
2. Soveriegns - no, they're selling
3. State governments - no, they're mostly broke and running deficits - they ned to sell bonds.
4. Hedge funds - no, they will front run the FED
5. Private pension funds - hmmm, maybe they'll buy, if the US government puts a gun to their heads, as in mandated diversification into US bonds.

This might be the plan, to raid the 401k, 403b and Keoghs. Otherwise, the FED will have to be buyer of last result or see a bond default and market collapse.

[chad]

This is just an opinion poll of the primary dealers, not the FED. So now that POMO has failed, the FED is uisng the primary dealers to spread POOPOMO (Positive Opinions On Permanent Open Market Operations). So let's do a thought experiment:

1. the treasury creditors expect POMO to taper
2. interest rates can only go higher
3. therefore, bond principles can only go lower
4. therefore holders of bonds will sell now to minimize future losses.

When hundreds of billions of dollars in Tresuries flood the market, who will buy them?

1. The public? No, it's largely tapped out and unemployed
2. Soveriegns - no, they're selling
3. State governments - no, they're mostly broke and running deficits - they ned to sell bonds.
4. Hedge funds - no, they will front run the FED
5. Private pension funds - hmmm, maybe they'll buy, if the US government puts a gun to their heads, as in mandated diversification into US bonds.

This might be the plan, to raid the 401k, 403b and Keoghs. Otherwise, the FED will have to be buyer of last result or see a bond default and market collapse.

herr doktor is correct. get ready for retirement bonds!

[Large Sarge]

look at big picture events

1. mad scramble for physical gold (at an unprecedented level, by govts, wealthy individuals, etc)
2. unloading of dollars (china has bought costa rica, half of Africa, and much more, all with dollars)
3. DHS has shitloads of ammo, tanks, and troops waiting patiently for the greenlight
4. India is experiencing a currency crisis, so is Argentina, and Greece, Syria and Egypt are in chaos/civil war
5. Obama catastrophe meeting with heads of banks Bernanke, comptroller of the currency, etc (this week)
6. Gold in backwardation for 34 days, and getting deeper weekly, (unprecedented)
etc
etc

The events speak of a much larger crisis to come, these are last minute attempts to get something now, before your money is worthless.

they are going to detonate it, time is against them, as to many people are waking up, and all the gold is long gone,

silver will be in backwardation soon, joining gold

the game is over folks, this is the last 10 minutes of the 4th quarter, as people scramble for the last few crumbs....

[Large Sarge]

NYSE is now broken

http://www.zerohedge.com/news/2013-08-22/and-now-nyse-breaks-nasdaq-has-declared-self-help-against-nyse-arca

[Sparky]

Yes, you are all showing good insight in this thread. This is clearly a situation of the noose getting tighter.

However, that does not mean we are on the verge of collapse. I think we are on the verge of the next major system test, as we were in 2008. I think there are still plenty of extreme measures that can be implemented to allow this house of cards to survive another cycle, which means at least a few more years. Mamboni provided the most likely rescue that has a big enough paper magnitude to perpetuate this lie for one or two more cycles, i.e. raiding retirement funds. The government simply has to say that they can "borrow" from your retirement account at any time, with a promise to pay it back with interest after you have reached retirement age.

This is what financial companies do with people's stock holdings, and most people don't even know it. When you "hold" shares, your brokerage is allowed to loan them out at their discretion so that they can be used to cover shorts. Your shares are being moved around all the time, and then returned to you when you go to redeem them. Surely the powerful U.S. government will find a way to do this with your retirement accounts. To me, this is really the final and largest bullet in their arsenal, and could well delay financial collapse for a full generation, depending on what they are allowed to get away with.

[Large Sarge]

Yes, you are all showing good insight in this thread. This is clearly a situation of the noose getting tighter.

However, that does not mean we are on the verge of collapse. I think we are on the verge of the next major system test, as we were in 2008. I think there are still plenty of extreme measures that can be implemented to allow this house of cards to survive another cycle, which means at least a few more years. Mamboni provided the most likely rescue that has a big enough paper magnitude to perpetuate this lie for one or two more cycles, i.e. raiding retirement funds. The government simply has to say that they can "borrow" from your retirement account at any time, with a promise to pay it back with interest after you have reached retirement age.

This is what financial companies do with people's stock holdings, and most people don't even know it. When you "hold" shares, your brokerage is allowed to loan them out at their discretion so that they can be used to cover shorts. Your shares are being moved around all the time, and then returned to you when you go to redeem them. Surely the powerful U.S. government will find a way to do this with your retirement accounts. To me, this is really the final and largest bullet in their arsenal, and could well delay financial collapse for a full generation, depending on what they are allowed to get away with.

interest rate derivatives are $441 trillion dollars,

what was lehman/AIG/Bear stearns in 2008? like $2 trillion or so, and it nearly broke the whole system, they had shotgun zombie marriages, printed money like mad men (silver went from $8.70 to $49 in like 18 months or so, frightening)

this will dwarf that episode, like comparing someone farting in a bathtub to a tsunami

no comparison

[Sparky]

interest rate derivatives are $441 trillion dollars,

what was lehman/AIG/Bear stearns in 2008? like $2 trillion or so, and it nearly broke the whole system, they had shotgun zombie marriages, printed money like mad men (silver went from $8.70 to $49 in like 18 months or so, frightening)

this will dwarf that episode, like comparing someone farting in a bathtub to a tsunami

no comparison

Remember Sarge, not all $441 trillion would be losses in a meltdown. And $2T for the Lehman failure covered a $15T economy. There's $20T in retirement money which could probably cover more than $100T in bad bets.

Not saying there's no risk of a blowout failure. But I'm saying they are masters at exploiting resources to extend this game as long as possible, and this probably represents their last ace. If things break the right way, they could extend for another cycle or two. Of course, that should not stop anyone for preparing for a possible near term blowout.

[Serpo]

http://ts4.mm.bing.net/th?id=H.5017334653978731&pid=15.1&H=120&W=160

when is a pig not a pig ,when its a tapir
(http://upload.wikimedia.org/wikipedia/commons/5/57/Malayan_Tapir_walking.JPG)

[madfranks]

I tend to agree with sparky. I don't think this is the end, retirement accounts will be taken first, and they will provide enough leverage to keep the boat afloat for a while longer.

[Large Sarge]

WW3 appears to be starting, so I again say we are in the final minutes of the 4th quarter.....

[Neuro]

WW3 appears to be starting, so I again say we are in the final minutes of the 4th quarter.....
Yes WWIII will change the equation re the financial situation, debts to the enemy will be declared null and void, debts to Federal Reserve is pretty much a zero sum game, since the interest paid minus the cost of the federal reserve is returned to US treasury. Loans from allies needs to be paid, but they probably loaned a somewhat equal amount from the Federal Reserve, and that will go to US Treasury after Feds cut...

[osoab]

This is just an opinion poll of the primary dealers, not the FED. So now that POMO has failed, the FED is uisng the primary dealers to spread POOPOMO (Positive Opinions On Permanent Open Market Operations). So let's do a thought experiment:

1. the treasury creditors expect POMO to taper
2. interest rates can only go higher
3. therefore, bond principles can only go lower
4. therefore holders of bonds will sell now to minimize future losses.

When hundreds of billions of dollars in Tresuries flood the market, who will buy them?

1. The public? No, it's largely tapped out and unemployed
2. Soveriegns - no, they're selling
3. State governments - no, they're mostly broke and running deficits - they ned to sell bonds.
4. Hedge funds - no, they will front run the FED
5. Private pension funds - hmmm, maybe they'll buy, if the US government puts a gun to their heads, as in mandated diversification into US bonds.

This might be the plan, to raid the 401k, 403b and Keoghs. Otherwise, the FED will have to be buyer of last result or see a bond default and market collapse.


herr doktor is correct. get ready for retirement bonds!


chad has got it the final solution.



I Will Gladly Pay You 100 Years From Now, For a Hamburger Today (http://finance.townhall.com/columnists/mikeshedlock/2012/03/15/i_will_gladly_pay_you_100_years_from_now_for_a_ham burger_today/page/full)

Retirement Plans Forced to Buy Treasury Bonds (http://www.searchamelia.com/retirement-plan-may-be-forced-to-buy-treasury-bonds)

[ximmy]

I tend to agree with sparky. I don't think this is the end, retirement accounts will be taken first, and they will provide enough leverage to keep the boat afloat for a while longer.

more than that, after they raid every private fund (for the public good), The american peasants must suffer austerity measures, like the greeks do, for the sake of our betters...
You can bet your ass it's coming!

latest news feeds...

Student's death touches nerve in austerity-hit Greece

(Reuters) - A 19-year old Greek student who died after an argument with a bus ticket inspector has come to symbolize the plight of a population ground down by worsening poverty and unemployment.... The incident quickly touched a nerve in Greece (http://www.reuters.com/places/greece), where the government is using increasingly tough methods to collect revenue under pressure from its international lenders to fix its finances.

Obama praises Greek austerity but urges growth (http://www.euronews.com/2013/08/09/obama-praises-greek-austerity-but-urges-growth/)

US President Obama has praised the Greek government’s strict austerity measures and structural reforms and said the country must now start creating growth. At a meeting with Greek Prime Minister Samaras in Washington on Thursday, Obama said: “I think Prime Minister Samaras is committed to taking the tough actions that are required but also understands and wants to make sure that the Greek people see a light at the end of the tunnel.”
Samaras agreed, saying: “Of course we are going to do what has to be done as far as structural changes are concerned but our emphasis has to on growth and on the creation of new jobs, especially for the youth.”

[Cebu_4_2]

Zero is just a puppet. Who the fuck is putting out these words? The Queen? The Vatican? Seriously.