No hints from the Fed about QE3 is the latest ‘bad’ news coming out of  Bernanke’s testimony to Congress this week.  Gold sells off.

But Mike Krieger, a regularly featured contributor to zerohedge.com, stated he senses the Fed‘s preparatory language to markets before formally announcing policy changes is now null and void.

“I have no idea why anyone is making a big deal about The Bernank’s testimony to Congress today,” Krieger began his article.  “There was no way he was going to come out with anything meaningful. . . In fact, I am 100% certain that The Bernank merely wants to toe the line as carefully as possible and at the same time get some nice propaganda out there to the sheeple.”

Krieger goes on to state he expects “a massive wave of liquidity” from the Fed, but doesn’t expect the U.S. central bank to pull the trigger at the conclusion of the next meeting scheduled later this month, though many analysts believe making a formal announcement during the summer months before the fall election will camouflage enough the Fed’s role in aiding incumbent parties with easy money as a way to boost asset prices and mood of the electorate going into November.

In short, Krieger believes Washington no longer cares about its once-clandestine strong-arm tactics becoming exposed to the world; the Washington ‘elite’ “don’t care” anymore, according to him.

“Maybe in times past [Washington 'elites' cared], when the power structure was a bit more reserved and less blatant about their corruption and manipulations,” Krieger continued.  “They don’t hide that stuff anymore.  The “elites” in America today are simply gangsters.  We have already been officially christened as a Banana Republic.”

No banker has been prosecuted for malfeasance since the crisis began approximately four years ago, lending much credence to Krieger’s seemingly outrageous but arguably correct summation.

So, with that pretension with the American people and the larger global community out of the way, market manipulation through every means possible, including an obvious connection between the Fed and election year politics dispensed with (and consistent with more troubling trends in America, such as the blatant suspension of the Constitution and blatant disregard for law and order among those in power), the Fed can do what it wants and when it wants to do it.

In this case, a last minute surprise QE announcement from the Fed to shock markets back into stock market rally mode must drive as much capital out of banks and mattresses as possible to condition the investor public that money must be ‘put to work’ and that shorting the market will be punished.  And there is some evidence of the ploy working, according to the Wall street Journal.

“As late as the early 1980s, Fed officials had always believed that the less that the public knew about what the Fed was trying to do, the better,” Greg Robb of the WSJ wrote in an article of Apr. 4, 2011. “Surprise announcements were considered the most effective tool of monetary policy.”

Krieger writes, “ . . . if the market heads into the Fed meeting at current levels it runs the risk of being disappointed.  If this is combined with continued economic weakness then the real set up happens between the June meeting and the August one.  It is in that interim period that the market could throw another one of its hissy fits and beg for more liquidity.” [emphasis added by zerohedge.com or Mike Krieger]

Marc Faber of the Gloom Boom Doom Report agreed.

“I think the market will have difficulties to move up strongly unless we have a massive QE3,” Faber told Bloomberg’s Betty Lui, May 14.  “If it moves and makes a high above 1,422, the second half of the year could witness a crash, like in 1987.”

Though gold dropped approximately $40, Thursday, the fall in price may have given accumulators of the yellow metal better prices on the way to record highs.  The markets await the Fed to finally pull the trigger on more easing.  The emergency meeting of the G-7 may have been the meeting in which other central bankers will jump on board with the Fed in a shock-and-awe global easing spectacle—which has been a prediction made by several gold market analysts and as far back as the couple of years from the onset of the crisis.

• Need fast service and cheap rates from a broker? Buy stock online at my favorite brokerage
• See today’s top stock picks and market analysis
• Want more? Check out the message board buzz for these stocks
• See what newsletters are recommending these stock picks
• Get breaking news alerts on these stocks: http://thestockmarketwatch.com/
• This newsletter has been helping traders make a killing on these stocks. Click here for a 25% discount offer.

About BeaconEquity.com

BeaconEquity.com is committed to producing the highest-quality insight and analysis of small-cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stock market today, which have traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

Beacon Equity Group Disclaimer

This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.