I guess my jaw is just going to drop every day right into November 6th of this year. Yesterday, I stood agog as the U.S. National Media did not merely let slip their masques of “Objectivity” but tore them off completely in defense of their Dear Leader, The Obama. It was like we were back in the days of “Soviet Union,” when Pravda and Tass would not only mouth whatever “truths” the Soviet leadership would set them to, but also pro-actively attack dissidents of the regime in order to discredit them.
When our embassies in Egypt and Libya were attacked “coincidentally” on 9/11, and our Executive Branch Administration decided to respond with an apology instead of condemnation, I guess I wasn’t completely shocked when the MSM house organs (NY Times, Boston Globe, LA Times) buried the story well into their papers to clear room for important Romney/Ryan high school reportage. What was a shock, however, was watching the press go after Mitt Romney for – very appropriately, IMHO – condemning the wrong-headedness not only of the rioting Islamacists, but of the Obama Administration that was feeling their pain. Incredulously, I watched as the biggest media firms in the country went after Romney in a (now confirmed) coordinated attack like he was the guy who murdered our ambassador in Libya instead of being the only Presidential candidate to take time out of his day to remark upon it.
No, what was important to the press was that Romney was condemning the Obama Administration, and everyone knows that the Main Stream Media’s number one job is to advocate for the Democrat President, right?
Meanwhile, on day four of “Jaw Dropper Week,” we hear from yet another uncompensated (well, sorta) member of the Committee Re-elect the President Again (CREEPA) — Mr. Ben Bernanke. Not two weeks after Mitt Romney all but said that Fed Chair Bernanke was likely selling pencils come this January, the Bearded Bandit decided to show just how far he’d go to keep his job.
In a scene that seemed cut from the classic Mike Judge movie, Idiocracy, Mr. Chairman has decided to cut loose with your sovereign currency in such a way that soon we will be purchasing extra-wide checks to accomodate the extra zeroes we’ll have to write. And he’s not doing it in any kind of secretive “QE4″ way, either. No, he’s just going to purchase — with fake money! — US mortgage bonds, at $85 billion a month til the end of the year, and then $40 bn a month, apparently until morale improves!
It’s fucking mind-boggling, if you’ll excuse my French. Just stutteringly mad.
We are spitting in the face of people who hold our dollars world wide. We are saying, “See this? This hundred dollar bill? I wipe my arse with it! Have some!”
“Oh, yeah… and vote Barry so I can keep my job, eh? Thanks much.”
Anyone got a line on a wheel barrow factory I can invest in?
As might be expected, gold (+2.11) and silver (+4.33) are screaming. More analysis of the traditionals tonight, but the ETFs are your best bet at the moment (GDX, GDXJ, SIL, GLD, SLV, even AGQ and NUGT). Go nuts, mind as well.
90 Responses to Enter, Weimar
Ben’s printing money. I like money!
Hey, I like money too.
When the US debt was $100 billion a few years ago, people were freaking out then, too. And all the way since then, the same reaction. Doomsday has been coming 10,000 times already, but for some reason has never arrived.
I don’t believe people give enough thought to the fact that there are 162 privately owned central banks worldwide, one in nearly every country. These banks coordinate their activities via the Bank of International Settlements (private corporation), which means all 162 banks act as a single entity.
There will be no collapse because the markets are too tightly controlled.
took the words “right” out of my mouth!
Had a dem pulled the trigger w/o aiming first the Senator would be all over the guy …
Go eat your grapenuts!
Incompetence must be routed.
And your behaviour with Bush (and I mean “you” as the Left en totale) brooks you no complaints with Romney’s comments.
Idiocracy has nothing on the MSM. You must admit it looks like the easy way to pay off the national debt form a short term political standpoint. Mmmmmm, brawndo the thirst mutilator.
Brawndo has electrolytes!
Of course it’s an easy way to pay down the debt! It’s the ONLY way.
The question is, how long will the rest of the world stand for getting shit kicked in their faces?
Don’t worry, scrote. There are plenty of ‘tarded countries out there with really kick-ass economies. My first country was ‘tarded. [With a little help from heavy commodity exposure] They run surpluses now, eh?
This would be a good move for the sake of rescuing the real estate market if not for the fact that they will likely buy the mortgages from banks and only buy the ones they were desperate to sell anyways. The mortagages will just exchange hands. If they had bought up FannieMae mortgages reducing government ownership (well… kind of, depending on how you classify the fed), and having more of a direct effect on the economy and demand by banks for mortgages by reducing the supply and thus decreasing the cost to get a mortgage to be more in line with the actual interest rates, rather than the banks having historically record margins while the savings rate proportional to the borrowing rates is currently out of whack. That would restore more of a free market approach…. But instead, the fed will probably just buy those from the banks, and the banks will only selectively sell the garbage mortgages that they were waiting to sell anyways….
I doubt hyperinflation is in the cards for as long as the US is the CORE economy and the financial centre of the world. I do not expect that title to last forever, but I don’t automatically assume hyperinflation will occur and the reserve currency status will be removed. I do think that gold long term will remain in a bull market, buthyperinflation is a bit far fetched….. for now! There are too many deflationary element and destruction of past capital and debt to be paid that is happening, too little movement of capital, and too high of pricces and low of unemployment. As long as US maintains reserve currency status and core economy of the world, hyperinflation isn’t in the cards… BUT… gold will go up because of the debt and govenrments. The government will do anything and everything (not just in US but globally) to get their hands on capital. The economies will move underground potentially, and gold will become an alternative medium of exchange and way to store wealth to prevent governmnet from taking wealth through taxes. The crisis that will hit is one of soverign debt defaults around the world and that will be super bullish for gold. I suspect something more like the 1929 or 70s bull market and it will eventually peak. All those claiming hyperinflation will wish they would have sold… But at what price? Probably much higher from here.
just my 2 cents and if you wanted a penny for my thoughts, much like I would say to Obama, you can keep the “change”
good sir, i must disagree whole heartily. gold is gonna back everyones currency in due time. america is always last to want to change.but change they will have to make whether they really want to or not. russia,china,iran,syria.are all doing business of oil in gold. as well as turkey, and the other two faced allies’. disc: long metals,until the unemployment rate drops to 3%……….
And who has the most gold? That’s right, the United States Government.
Certainly its citizens hold a lot, though.
The downfall to the gold standard is the fixed exchange rate. It’s inherently dangerous to trade deficit nations. Technically, the gold standard went extinct when Switzerland was the last to abandon the practice in 2000. It just doesn’t work for anybody anymore.
A currency is just a ruler you can pretend is an object.
The fixed exchange rate didn’t cause the gold standard to fail, a plethora of bad choices being made in the real world did.
And a fluctuating exchange rate isn’t going to save us from malfeasance.
What does an exchange rate do in today’s realities? Not everybody can boost their exports at the same time? We basically have fixed exchange rates anyway – they last for a few months, then the next central banker tries to run with the ball. None of them ever wins.
sat in the tall grass with agq,exk. just came home. frickin WOW ! oh yea.100 dollar tomatoe,it’s coming.along with 7 dollar gas.
$7 dollar gas. yep.
so if Ben is debasing the dollar and its pretty clear and outright, why would anyone own US assets if dollar is going to shit? Further, the first time we crossed this levels (to the upside) on SP it was Jan 07 and DXY hit a high of 86 and crude was 62. Fast forward DXY 79 Crude 98.
it’s a race to debase. i dont think we are winning.
The only US assets to own are those that will outpace inflation. Equities, for the most part.
And gold and silver.
Wasn’t DXY around 81 or 82 in 1992? In twenty years we’ve come so far…
Remember that DXY is a relative index. It’s measured against other major currencies, so naturally, all fiat currencies inflate over time.
The metric you want to look at is the dollar vs. gold in 1992.
You could get about 1/350th an ounce of gold for a dollar in 1992.
As of close tonight, that ratio is down to 1/1,770.
You were saying?
Unbelievable what people will do with power. Nobody in government can look past the next election. They are destroying this country.
We might have half a chance at correcting this course if media would do its job. Central planning, big government liberals are in complete control of the narrative. There seems to be no honest reporting from the so-called mainstream. There is no investigative reporting. Just narratives to ensure the liberal dance continues.
This country is screwed. We live in your basic security/police state. Academia brainwashes the youth in liberal bias. Education is crap. 50% enjoy all the benefits of citizenship and pay nothing for the privilege.
Socialism, big government, tyranny, Marxism, liberalism, totalitarianism, central planning, Fascism…whatever you want to call it, is overtaking freedom and capitalism in this country. Too many takers and not enough makers to overcome this slide.
The collapse should be awesome.
Well, looks like i have a good shot of getting out of VGPMX at breakeven here in the next couple of weeks. Shocking that that fucker is still 10% below where i bought it given what has transpired in the interim.
Look at this laughable comp chart to GDX:
Anyway, on political matters, obviously Obama is going to win in a landslide. There is a global conspiracy to make it happen. I’ve been saying that ever since it became obvious Europe was going to print and Germany was going to let it happen.
My theory is very shortly after Obama is reelected a couple of things will happen, number one is that Greece will be kicked out of the Euro and number two is that Iran is attacked. The next six months has already been scripted.
Iran may get attacked, and it may be before the election, too.
Can’t imagine the Powers that Be wanting to keep that Beclowned mofo in office, but maybe he makes good puppet.
BTW — before you buy a PM mutual fund, CHECK TO SEE WHAT’S IN IT.
You see the nutty illiquid stocks in that sucker?
I did check but made a bad decision based on its prior history of tracking GDX pretty decently and it being the only easy option at my disposal. Huge mistake.
I mean, its a case-study in what can go wrong….look at how it just unhinged from tracking GDX all of a sudden. SHeesh.
My thesis was correct though and if i had been able to buy GDX instead I would be sitting pretty.
Could shoulda wudda….
When do we get the SPR release Senator?
with 0zer0, he’ll just mention it. but it wont happen.i know this cocksucker as if he lived next door.
He needs a pretext. Prolly when Israel starts in on Iran.
I disagree with your opinion of dear Ben, but loved this post.
Yes, Ben is just an altruist.
I actually hope I’m right though, because if I’m not, he’s scared of something… REALLY scared.
You don’t do blatant shit like this unless you’re trying to head something off.
See the press conference. The bags under his eyes were HUGE
Ben see’s that the government could raise taxes to 100% on everyone and still not be able to fund the debt bomb that is coming at today’s revenue rates. He knows there is zero alternative for dealing with the oncoming tidal wave of debt on the government entitlement horizon other than growth via easy money and inflating the debt away. I am now certain the world will be a far worse place to live for my kids and grandkids.
He’s been up late watching breaking bad and he fears that Heisenberg is going to take his whole drug field rally down?
People have been screaming hyperinflation for years now, and they have been consistently wrong. Everyone who knows about about history knows that the situation in Weimar was vastly different.
Reading all this I wonder what’s your take on Europe? We have been dishing out the bitter medicine of austerity for years now with abysmal results – the deficits are larger, growth is tepid or nonexistent, unemployment is rising and the next full on banking crisis is close. All the while the ECB could only muster up a rate cut and now finally some commitment to lower rates.
Bernanke is in a tough spot. Congress is unable or unwilling to do anything and now embroiled in the whole election thing. Meanwhile his toolbox has been proven ineffective. Last straw is buying mortgages in the hope that lower mortgage rates will translate directly to households.
Europe is still a sick man because the trick is not “austerity” but cutting back the gummint infection and allowing private enterprise its head. Privatizing, de-bureaucratizing, de-regulating… freeing.
Europe will remain moribund until the give up on the Euro. However, such a strong bureaucratic cabal has grown up around the whole Union idea, it may be the last thing that happens… post-revolution.
So now you are also predicting a revolution, and you also think that revolution is not going to be socialist in it’s nature?
A revolution in Europe? Socialist in nature?
FYI — Europe is already socialist, that’s its problem.
I guess by your definition every country that’s not under Repuclican rule is socialist
No, my definition is any country that has the trappings of an underwater welfare state can largely be defined as socialist.
I don’t know which Euro country you are from, but if the highest marginal tax rate is over 50%, then yeah, that’s a socialist country, for the most part.
Let’s be honest.
And yes, we’re well on our way.
I mean seriously Nils, do you really think the European welfare state, which had created its own demographic vicious circle due to shrinking birthrates, is in any way sustainable?
I ask only because you seem somewhat reasonable. Is it just cognitive dissonance?
Private enterprise won’t take up the call to arms even in a deregulated, etc, etc environment … Our own Corps are pleading with the pols for another tax free holiday to get their $ out of there …. C’mon!
And if they bring it home we’ll get the same from them as we did from the banks … bonuses, buybacks and special dividends as an added treat.
Yes, it’s no doubt private enterprise’s fault the economy is in a mire.
It has absolutely NOTHING to do with:
– 25% Government slice of GDP vs. historical 16-18% levels
– a trillion dollar failed stimulus funnelled to cronies,
– a massive government health-care takeover and tax increase on employers,
– institutiion of class warfare/ remonstrating job providers from the bully pulpit ,
– bringing on trillions of new costs to small business in the form new regulatory red tape
– Massive increase in fuel costs despite brown energy innovations and discovery
– ALREADY IN PLACE inflationary Fed easing leading to economic stagnation.
Face it, the evidence weighs heavily against government intervention and overreach into the economy, AS IT HAS THROUGHOUT WORLD HISTORY.
There is ZERO, NONE, NADA examples of big government working for any economy, anywhere ANY TIME in history.
When will you leftist fantasists ever get it? Stop banging your head against the wall, and I promise, the PAIN WILL STOP!
Doesn’t matter that domestic corps refuse to pay taxes for their own security and services at home … as they flee abroad their vacancies are/will be replaced by foreign corps looking to produce locally to be near their customer base, on free & secure soil with a sound secure energy base … that’s the future of this great nation and if US corps don’t get on board they’ll be replaced by their foreign competitors soon enough.
Whom do you think pays corporate taxes, innumerate?
All CREEPA members will be disappointed.
Huggie’s stock picking prowess seesm to be in line with his political predictions.
You sure do cry a fucking lot.
Especially for a grown man who calls himself a “Republican”.
You’ll be crying when you’re swinging from a K-Street lampost, Economy-thief.
He’s saving your ass from your own party’s resolve for self destruction through an austerity only policy w/o increasing revenues or defense spending cuts.
You have already proven yourself economically illiterate, so there’s no need to compound.
All Bernanke is doing is kicking the can one more time down the road, only this time with an atomic boot.
And so endeth the Empire.
He’s a one legged stool waiting for Congress to apply the other two legs fiscally which they refuse to do through compromise and that will be their undoing. The American people have figured out The Boners scheme and he’s toast soon enough as well. It takes monetary & fiscal policy and Ben’s doing all the heavy lifting while your boy Boner pulls his pud! What a traitor in the name of “job creators.” Hypocrite!
Stop making excuses for your commie bosses. The Senate has block EVERY BILL the reps have sent to them. Don’t talk to me about obstructionism. You have no legs to stand on.
In 56 cases of hyperinflation, it has happened in a democracy twice.
So, the people that had a MBS will now have cash. Great. They can go buy their MBS back, or another financial asset. Unless they lend that cash out, no money is created.
I’m thrilled with my 3.6% chances.
The money is “created” because the Fed “creates” the money to purchase the assets in the first place. Because they do not need to worry about where there money comes from (Ben’s basement) they care not whether the MBS is shit or not. More bailout moral hazard nonsense.
And what happens when the MBS tranches start falling to shit? More funny money purging?
No harm, no foul in bailout America?
Or is the “No free lunch” axiom finally been proven untrue?
Where can I sign up to get some of this no-risk capital? I always bet black with the houses money. Heads I win, tails, fuck you
Glad you posted today Jake.
Great opinions, never the less!
Thanks for stopping by, Wood!
PS — I put in for some RBY and SVM tonight.
And some MORE NAK!
NAK to $20
Looks like… I’ve been building a position.
Jake check GROW. It may be time to run with their gold mutual funds.
Like that phat yield too!
Gold miners are running.Even
the legged dogs are hunting like AUQ.Its got some room to move up.
LOL. Yes, AUQ has broken back UP into it’s DOWN channel!
Why not stick with the clearly good stuff? This reminds me of my brother and his mad obsessison with GSS.
Movin’ on up!
Don’t look now but we might have some positive MA crosses over here!
Still long my modest shares sir. Best to us..
AUQ three legged dog be barking
And look at BAA too… the shite floats to the top quickest….
(Except for GSS! )
GSS is gonna get some surprise sex any day(week/month/year) now.
Two dollah roll!
All in long. I believe the technical term is Full Retard.
…..and then some. Been Full Retard for a month now. This is the scary part when one is up so much. Might go moderately retarded soon.
Bought two oil dogs today..PBT and NS ruff ruff
NS worth noting
Jake, been a long time reader and generally agree with your long term hyper-inflation thesis.
What do you think, now that QE3 is a reality, happens to the refiners? Gas will go up but so will their raw materials.
I have no model for the refiners, save that I think they have a supply and demand advantage in the US, at least.
Jake, thought you’d appreciate this video: Government Explained.
An inquisitive alien visits the planet to check on our progress as a species, and gets into a conversation with the first person he meets.
Weimar, really? You’re gonna come at me with one data point? Please, you need to up your game, son.
Lol- skinny white geek fail.
Hyperinflation is coming fast. Best trade is Novagold $NG
I like $NG but gonna stick with
my three legged dog $AUQ.13% upside b4 hitting 200d.
Hi Jake, I sold AG at 22 and thought buy back low later,,,,,but,,,,. Still go or wait? Thanks !
Do not sell your PM’s right now. There is a TON of momentum behind them.
Wrong time to try to time stuff.
Jake – still holding my flagship SLW in the IRA from early this year. Now I’m looking to heavily press my bet with a high beta PM trade since I am confident that the floor is in till 2014. Which of these do you think could deliver the most bang for my buck by this upcoming New Years from their current price – NAK, TC, or EXK?
I like EXK the best out of those… though I feel like I’m on a fantasy football blog site…
Hah. Thanks sir.
Jake, the place i live, Quebec is going FULL RETARD SOCIALIST at the moment.
there’s a slow revolt of the tax payers happening in the press. small businesses are going apeshit. IMHO, too slow, too little, too late. all welfare states, even in NOA experience this: all sovereign liabilities are growing way faster then assets. no printing will solve this. period.
its a simple math.