Fed Folds: Will Do Open-Ended MBS Buying, Extends Operation Twist

The Bernank has acquiesced - and all is well in the world:

• *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

The Bernank Unleashes The Path To New All Time Highs In Precious Metals

There was one thing, ONE THING only that Bernanke could do, to become a gold bug's best friend today, than merely announcing QE 3/4. It was to announce open-ended QE. This means this is the Fed's final shot and there is no way to frontrun the Fed any more by definition. It means the terminal start of currency debasement is now here. It also means that the path to all time nominal (and inflation adjusted) highs in gold, which is now just $160 away, silver, platinum, and all other metals, as well as all other hard assets is now clear. It also means that very soon stocks are about to realize what soaring "input costs" mean for the bottom line.
Thank you Chairsatan: you are truly a gold bug's bestest friend!

Market Response: Gold/Silver/Treasury Yields Spike, Equities Less Sure

 
So far it is Gold and Silver that are being bought, Treasuries sold and steepening (as mortgage spreads collapse further). Stocks spiked, fell back to unchanged, and have new respiked to new highs... Notably, equities are the most knee-jerky whip-sawy - Gold and Silver seems consistent as do Treasury yields...

Goldman's FOMC Script/Playbook

With 20 minutes to go, we thought it timely to see the script (perhaps) for the frivolity to come. It seems like the fate of the known world is predicated on the words of a bearded academic this afternoon and whether you believe he must or must not LSAP us to Dow 20,000 (and Gold $2,000) in the next few weeks - even as the economy and jobs tail-spin - there are many questions, which Goldman provides a platform for understanding, that remain unanswered (and more than likely will remain vague even after he has finished his statement). Their expectations are for a return to QE and an extension of rate guidance into mid-2015 (and everyone gets a pony) but no cut in IOER.

Your CRIMINAL Gov’t: House Votes to Kill Fourth Amendment

by Kurt Nimmo, Infowars:

On Wednesday, the House of Representatives voted to extend amendments added in 2008 to the Foreign Intelligence Surveillance Act. The Foreign Intelligence Surveillance Act’s Amendments Act (FAA) in essence reduces the Fourth Amendment to a nullity.
The unconstitutional extension passed by a vote of 301 to 118. 111 Democrats and seven Republicans voted no.
The amendments allow the government to electronically intercept domestic phone calls, emails and other communications without going to a court and obtaining a search warrant.
The Fourth Amendment states: “The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.”
The government exploited fear over cyber attacks to reauthorize the amendments. “Foreign nations continue to spy on America to plot cyber-attacks and attempt to steal sensitive information from our military and private sector industries,” said Rep. Lamar Smith of Texas who sponsored this bill and an earlier one, the internet censorship bill SOPA.
Read More @ Infowars.com

Israeli Sponsored Film Sparks False Flag Attack and Manufactured Islamic Threat in Libya

by Susanne Posel, Occupy Corporatism:

The US ambassador to Libya, John Christopher Stevens, and three embassy staff employees were killed in a bombing of the Benghazi consulate. Based on alleged outrage concerning a Zionist-sponsored film, Islamic gunmen stormed the embassy and set fire to the consulate.
US officials are asserting that Stevens and three others who died in the embassy bombing were the victims of a planned attack with the use of al-Qaeda, the CIA-controlled terrorist group. Rumors about the bombing being retaliatory against the death of a Libyan member of al-Qaeda are a cover-story.
House Representative Mike Rogers, chairman of the House Intelligence Committee stated that there is evidence that this was a “well-armed, well-coordinated event. It had both indirect and direct fire, and it had military maneuvers that were all part of this very organized attack.”
Read More @ OccupyCorporatism.com

Besides Being Beyond Terrible, Is the Muhammad Movie a Contrived Fraud?

An anti-Muslim film that has been blamed for the attacks on U.S. embassies in Egypt, Libya and Yemen is likely a contrived fraud designed to stir up unrest in the Middle East while shielding the true reasons behind the murder of Ambassador Chris Stevens.
A trailer for the film, entitled The Innocence of Muslims, has been on You Tube for over two months. Despite the alleged film maker’s claim that the movie was funded by rich Jewish donors to the tune of $5 million dollars, it has all the quality of a low budget film school project. The trailer has now been banned in several middle eastern countries, including Egypt and Afghanistan.
Indeed, the full film itself may not even exist, a doubt that has also been shared about the existence of its shadowy director Sam Bacile, who told the Associated Press this week that he was a 56-year-old “Israeli Jew” who lives in California, despite telling actors on set that he is Egyptian, while others have claimed he is an American.

Bacile claims he made the film to illustrate how “Islam is a cancer, period.”

However, numerous authorities have failed in attempting to locate a ‘Sam Bacile’ residing in California. Bacile is likely a pseudonym for the only real person who has been positively connected with the movie – Nakoula Basseley Nakoula, a 55-year-old Coptic Christian living in California who was convicted for federal bank fraud in 2010.

Read More @ Prison Planet

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Foreclosure Stuffing

Back in November 2010, the robosigning scandal hit in which it was made clear that when it comes to keeping track of mortgage titles, nobody really knows what belongs to whom, except maybe for Linda Green. The immediate result of this was a complete collapse in the foreclosure process as banks no longer had leverage to evict those who don't pay their monthly mortgage bills, since the banks couldn't confirm they actually had rights to the underlying mortgage, and the total monthly foreclosure total dropped from a ~330,000 average houses/month to roughly 250,000. Then in February, to much administration fanfare, the banks, and the attorneys general, signed what we dubbed the Robo-settlement: an event which was supposed to be the "resolution" to the robosigning scandal, and which should once again unclog the foreclosure pipeline. This did not happen. Instead, as RealtyTrac has been diligently reporting month after month, the monthly foreclosure total has continued to decline, and in August hit a level of 193,508 total foreclosures. The immediately spin is that this was a 1% improvement from July's 191,925. The reality is that it was a drop of 15.1% from a year earlier. As the chart below shows, ever since the advent of fraudclosure, the average monthly foreclosure total has dropped from a 330K/month average to just 219K. And declining. So why did the robosettlement not undo the robosigning foreclosure crunch? Simple - foreclosure stuffing.

Treasury Issues $13 Billion In 30 Year Paper In Another Unremarkable Auction

The mood from yesterday's boring 10 year auction was carried over into today's earlier 30 year auction (not at the usual 1 PM time due to Bernanke's press conference). Moment ago Tim Geithner auctioned off another $13 billion in 30 year bonds, all of which will be promptly purchased by the Fed (as a reminder, the Fed already monetizes all monthly 10-30 year issuance courtesy of Twsit), at a yield of 2.896%, the highest since May's 3.06%. Unlike yesterday's 10 Year, the Bid To Cover rose modestly to 2.68 from 2.41, in line with the TTM average. The internals were boring as well: Directs: 12.4%, Indirects: 38.7%, Dealers: 48.9%. All quite meaningless, because as noted, all of these bonds will eventually be gobbled up by Simon Potter's open market monetization desk. And with this last auction for the week, US debt is now $16,081 billion in debt (current $16,054 billion plus this week's net new money of $27,918 billion), an increase of $80 billion in the few short days since the Democratic National Convention, when the US broke $16 trillion in debt. And rising.

Freedom Fries Versus Suppression Soda

And so it is written; thou shalt not drink big soda upon the veritable streets of New York City. As the Village Voice reports, the NY Board of Health just passed Bloomberg's soda ban proposal banning sugary drinks in more than 16-ounce cups. Of course, none of this should come as a surprise as repression swings from financial to social - what next? No more 8-year-old chimney-sweeps? No more untested drugs on the market? Free-speech suppression on YouTube? As WSJ notes: During the first three months after the ban takes effect, the city will inspect and inform sellers when they are not in compliance with the law. The city will allow a three-month grace period before it begins issuing notice of violations that are subject to fines. Will there be soda hoarding? 'I Drink 17-ounces-at-a-time' T-Shirts?

Hobby Lobby sues US government over healthcare mandate

Eric De Groot at Eric De Groot - 1 hour ago

Is this forced decision-making under the guise of regulation? Liberty defined by the ability of individuals to have agency or control over their own actions cannot be trumped by regulations regardless of the perceived benefits to the masses of democracy. Headline: Hobby Lobby sues US government over healthcare mandate OKLAHOMA CITY, Sept 12 (Reuters) - Hobby Lobby, an arts and... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 

 

Jobless benefits claims jump, wholesale prices rise

Eric De Groot at Eric De Groot - 1 hour ago

Investors confused by the daily noise need to focus on the cycles. The cycles are important to timing. The stock market rally and global economic recovery which still has time will stall when average weekly intial claims state unemployment (AWIC) turns higher with the cycles. Chart: Average Weekly Initial Claims State Unemployment (AWIC) And YOY... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

545 vs. 300,000,000

from Joe Joseph:

In this broadcast Joe Joseph discusses where the power in the world really lies… The power lies with the PEOPLE. 

Electricity

by Andy Hoffman, MilesFranklin.com:
And the writing never ends, as here I am – flying back to Denver, and writing Wednesday’s RANT. This morning was one of the few times I didn’t have a RANT topic queued up, but when I arrived at the airport, it became quite apparent.
As if flying on 9/11 isn’t creepy enough, I arrived at the (San Diego) airport 90 minutes early, only to find a line at the Frontier Airlines kiosk of roughly 100 people. When I asked the service attendant what was wrong, she said Frontier’s computer system was down for roughly an hour. Yes, one hour was enough to cause mass chaos, for just one flight, on one airline, in one airport (fortunately, the Denver flight was Frontier’s only San Diego departure this morning). Which got me to thinking – what would happen if “ELECTRICITY” went down for ALL airlines – for even a day, let alone a week, or month?
When I write “PROTECT YOURSELF” at the end of each RANT, I am NOT just referring to your net worth; but your family and friends, livelihood, and LIFE. The world has become a very convenient place in recent decades, but the flip side of such luxury is the dependency created where people once practiced self-sufficiency. Electricity ranks quite high on the list of such necessities, and as we saw during Katrina and other natural disasters, a lack of it can be DEADLY.
Read more @ MilesFranklin.com

Esposing The Timline of Lies & Insanity

from crabbydogtrix:

High gold prices mask difficult future for miners-S&P

Although gold prices have nearly tripled over the past four years, gold miners are not able to capitalize on their good fortune, says Standard & Poor’s.
by Dorothy Kosich, MineWeb.com
With the current capacity in the mining pipeline and the hefty position in gold ETFs, Standard & Poor’s warns that gold miners’ profits and free cash flow are at risk “from an abrupt downward correction in the gold price as occurred in the late 1990s following years of production increases and healthy prices.”
In an analysis made public Tuesday, S&P suggested such a correction could “lead to the closure of high-cost mines and reduced investments to stem negative free cash flow, even though gold miners have adequate liquidity to withstand low gold prices over an 18-month period.” Long-term credit facilities, loose financing covenants, multiple projects at different stages, and generally low leverage give miners this financial flexibility.
S&P analysts Elad Jelasko and Karl Nietvelt noted that, although the price of gold has almost tripled over the past four years, “gold miners’ struggles have prevented them from capitalizing on good fortune.”
Read More @ MineWeb.com

China’s Shadow Banking System Collapses Exposing Numerous Ponzi Schemes; Implosion Reaches Critical Mass

by Mike Shedlock, Global Economic Analysis:
A collapse of property schemes, commodity schemes, and other investments schemes in China is well underway. The Ponzi schemes all had one thing in common: they needed an ever-growing pool of suckers to pay the returns promised to investors.
Well, the pool of greater fools finally ran out, and Shadow Bankers Vanished Leaving China Victims Seeing Scams

China’s slowest economic growth in three years and a slumping property market, where many so-called shadow-banking investments are parked, are squeezing millions of Chinese who have invested the money of friends and acquaintances chasing higher yields to honor those payments. The slowdown also is putting pressure on the government to rein in private lending to avoid a spate of defaults that could increase the number of victims and lead to social unrest.
Suicide, Bankruptcy
The shadow bankers are now disappearing, committing suicide or reneging on agreements, leaving thousands of victims in their wake. In the first half of the year, more than 58,000 lawsuits involving disputes over 28.4 billion yuan in private lending were filed in Zhejiang province, where Wenzhou is located, up 27 percent from the same period in 2011 and the most in five years, according to the provincial supreme court. One-fifth of the cases were in Wenzhou, where authorities have set up a special court to handle the surge.
Read More @ GlobalEconomicAnalysis.blogspot.com

Psychoanalyzing the Fed

by Charles Hugh Smith, Of Two Minds:
Few of the many analyses on Federal Reserve policy consider the psychology of diminishing political and financial returns of Fed promises.
Rather than regurgitate the usual economic analysis of the Fed’s policies, let’s hazard a psychoanalysis of the Fed. Given the primacy of psychological factors in human behavior, it is astonishing how little attention is paid to the psychology of the Fed’s statements and policies.
Zero Hedge offered just such a psychological insight (with a deliciously Freudian twist) with this question: Does the Fed need to re-instill some discipline in order to regain its omnipotence? Why (For The Fed) It Is All In The Foreplay
Exactly. Subservience is a slippery slope, and if the Fed “caves in” to market demands for a massive QE campaign, then where is the Fed’s vaunted autonomy? It’s gone. So what happens in a few months when the market is once again in danger of rolling over? Will the Fed cave in again and issue more QE? If it doesn’t, the market reaction will be violently negative, and the Fed will get blamed for the catastrophic decline.
You see the positive feedback loop of Fed subservience: the longer the Fed puts off regaining autonomy, the more disruptive their refusal to obey the market will be.
Read More @ OfTwoMinds.com

A New Parallel Economy Will Shock The Global Monetary System

from Silver Vigilante:
Today, people put their livelihoods into the hands of unrealistic brokers biding their time with wandering thoughts about big commissions and state-run markets with which they are in love. No matter how much history in its many capacities warns them against the traditional, they keep on with it. There’s history, the things people have seen: assassinations, wars, inflation. And then there’s the vector – the movement of history sweeping everything inside it along, and that’s wherein lies the fundamentals of the way things are. No matter how you look at it, history is telling its inhabitants to jump shit and this plane is definitely crashing. Why stay on the boat if once you realize the alternatives you can live freer, more relaxed and happier.
People, having never internalized how to question authority, which itself results in a stinging lack of self confidence, entrust other people with responsibilities only they can practically perform for themselves. Not only do people do this by going through brokers, but even when investing in faroff businesses over which they have no control. Surely, one can do their own due diligence and learn enough about a company to feel appropriately confident, but, at the heart of the circumstance, you’re not doing a thing for yourself except giving someone else your money with faith in hope.
Read More @ Silver Vigilante

What’s Happening in Libya

by Paul Kiel, Pro Publica:
THE ATTACK: ITS ORIGINS AND VICTIMS
U.S. Suspects Libya Attack Was Planned, New York Times
The connection between an anti-Islam film that reportedly sparked this week’s protests in the Mideast and the attack that killed the American ambassador is unclear. Unnamed U.S. officials have told the New York Times and CNN that militants behind the attack may have instigated a protest against the film as a diversion or taken advantage of it as an opportunity.
Stevens ‘was thrilled to watch the Libyan people stand up’, YouTube
In a U.S. embassy video uploaded to YouTube in May, Ambassador Stevens introduced himselfto the Libyan people. He described his childhood in California and how he fell in love with North Africa as a Peace Corps volunteer, and compared the challenges facing Libya to the American Civil War.
Read More @ ProPublica.org

Islamic Scholar Tariq Ramadan on Growing Mideast Protests and “Islam & the Arab Awakening”

from Democracy Now! :

As anti-U.S. protests spread across the Middle East, we’re joined by Tariq Ramadan, Professor of Contemporary Islamic Studies at Oxford University and Visiting Professor at the Faculty of Islamic Studies in Qatar. Ramadan is considered one of the most prominent Muslim intellectuals in Europe and was named by Time Magazine as one of the most important innovators of the 21st century. He was barred from entering the United States for many years by former president, George W. Bush. In 2004, Ramadan had accepted a job to become a tenured professor at the University of Notre Dame, but nine days before he was set to arrive, the Bush administration revoked his visa, invoking a provision of the USA PATRIOT Act. He was not allowed into the United States for another six years. Ramadan is the author of a number of books, including “Radical Reform, Islamic Ethics and Liberation” and most recently, “Islam and the Arab Awakening.”

U.S Foreign Policy = Disaster: Violence sweeps Cairo as clashes erupt outside US embassy

from RussiaToday:

Protesters continue to rally in downtown Cairo Thursday as clashes outside US embassy continued into the early morning. Demonstrators attacked police with stones and Molotov cocktails, injuring several dozen people.

The QE Control Room

by The Doc, Silver Doctors:
Time to place your bets.  QE will continue to infinity, and is in progress as we type.  There are no other viable solutions as there are NO REMAINING TREASURY BUYERS OF SIZE BESIDES THE FED!!
The questions is whether the puppet Bernanke has received directions from his bankster overlords (Dimon & God’s worker to name two) to PUBLICLY announce unlimited QE tomorrow as 99% of the market expects, or whether QE∞ will be announced on an upcoming Sunday night prior to the Asian market open.
Will he, or won’t he?  The Doc would like to know what YOU think and why.
QE Control Room graphic- perhaps the best work to date by the genius WilliamBanzai7
Read More @ Silver Doctors


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