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Thursday, March 28, 2024

Bernanke Tells Nation This Sunday: More QE Coming

Courtesy of Tyler Durden

For those wondering why the market leaked higher in the last hour, it is because someone got an advance copy of the transcript (or advance notice) that in this Sunday’s latest attempt at faux transparency on 60 Minutes, the bearded mutant-cum-supreme genocidal overlord says that more QE is coming. From Reuters: “The euro rose to a session peak against the dollar in late afternoon New York trade on Friday after a report on the CBS website that Federal Reserve Chairman Ben Bernanke did not rule out buying more than $600 billion of bonds in further quantitative easing.” It also explains why the euro is back to 1.34, and is right in line with our expectations that the EURUSD is only weak so long as the market realizes that much, much more QE is coming. How much? See the chart below for our ongoing expectation of what the Fed’s balance sheet will look like soon. And yes, the $7 dollar jump in gold late in the day may be multiplied 10-20x on Monday after the world realizes that the US economy is as fucked as always.

Perhaps it is time for Goldman to revise its 48-hour old “alles gut” call?

This is what we projected a few months back. Looks like we may accidentally be spot on as usual.

Of course, if that happens, look for every other bank to go apeshit in tandem:

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