One wonders if the futures market this morning is counting on more Bernanke heroin.  Oh hell, we know it is.  His remarks are about to be released from his "speech" today.  Of course Ben's flapping gums cause the market to price in QE2 for the 4,203rd time by going higher.

The dollar?  Well, you can see what the dollar thinks of this:

But Charles Hugh Smith adds to the problem that I've outlined - and QE-anything isn't going to fix a damn thing because the problem is a rot in the middle of the banks' balance sheets, which can only be fixed by forcing them to eat it - and that will bankrupt them:

Either there is due process of law or you have a kleptocracy/"banana republic" oligarchy. At present, that is the decision we face as a nation. If the banking Elites and their partners in the Central State (Fed and Treasury) are allowed to "win" and gut the property laws of the states, then the U.S.A. will be revealed as a kleptocracy/"banana republic" oligarchy.

If state laws are upheld, then the "too big to fail" banks are insolvent and they will fail. Then the question of kleptocracy arises once again: will the banks be allowed to fail as per Classic Capitalism, that is, their owners and managers will have to absorb the losses of that bankruptcy/failure, or will the Central State use its powers to collect taxes and cover the private losses of the Bank/Financial Power Elites? Privatizing profits and socializing losses has been the entire game plan since the global house of cards collapsed in 2008.

It's decision time, citizens. Either the banks/Central State "win" and we are a kleptocracy/ "banana republic," or they lose and the U.S. mortgage/ banking sector implodes and is either formally socialized (i.e. owned lock, stock and barrel by the Central State) or rebuilt from scratch without big banks, Federal guarantees and the Fed's incestuous interventions. ("We create the credit that enables the mortgage, you issue the mortgage, and then we buy the mortgage.")

There is no "fix" or half-measure that can patch this over now.

Yep.

The bottom line now is that Bernanke thinks he can continue to paper over this crap with yet more "QE" and other monetary games.  He's wrong.  All he's done, along with Greenspan, is enable not just bad behavior but outright lawlessness, while at the same time savers, senior citizens and those on fixed incomes are seeing their mandatory spending soar, destroying their savings.  Instead of using his regulatory power to put a stop to it, he feeds the bankster criminals that in their drug-induced mania have trashed our nation with yet another shot of heroin laced with meth, empowering yet another wilding binge of destruction.

Every time Bernanke speaks he talks about "more credit."  But we're here because instead of capital formation we have shifted to relying on "more credit."  Credit, however, is debt.  Those policies great for the debt merchant, including of course The Fed, but highly-destructive to the capitalist who is trying to provide a good or service into the economy.  He is slowly asset-stripped by the banksters through his reliance on these mechanisms, where he should be relying on asset accumulation - that is, capital formation. 

By destroying capital formation Bernanke both destroys those on fixed incomes and savers through intentional devaluation of their asset base and wrecks the structures that are necessary for productive investment and economic stability, say much less growth. 

In a very real sense, Bernanke is throwing Granny and Grandpa down the stairs - on purpose.  He is literally threatening those at the lower end of the economic strata, along with all who are retired, with starvation and death, and in a just nation where the rule of law controlled instead of being abused by the kleptocrats he would be facing charges of Seditious Conspiracy, as his policies will inevitably lead to the destruction of our republic.

We're at a crossroads folks.  Either the rule of law is restored and the games stopped, with the removal from positions of power of those who have enabled the scams and frauds and the fraudsters themselves put out of business and jailed, or the spiral will tighten and the pressure build as capital flight and destruction of final demand continue until we get this: