Many months ago, at the annual iBC dinner, Jakegint (CH) said to me “QE2 will prop the market higher.” Then he went on to ramble about how Abraham Lincoln was a “cool as shit” and how President Roosevelt was a “fucky commy bastard.” For over two years, Senator Gint has predicted the end of dollar dominance and has positioned himself to profit from this occurrence, with ridiculous precision, via a slew, mind you, of precious metal treasures.
Because of all of the debt, coupled with sluggish western economies, I assumed our leaders would not go “full Dykstra”, via egregious and brazen depreciation of the dollar and upward manipulation of the stock market. Pardon me for believing debts might cause governments to tighten their belts. Had I known Ben Bernanke was out of his fucking mind nuts, I would have tossed away my “deflation dreams” a long time ago, in favor of something, shall we say “inflationary?”
Everything aside, I think it’s pretty obvious to everyone here now that Senator Gint was and is right. The policy is to wreck the dollar, no matter the negative repercussions. Of course we do not need QE2; but we have it nonetheless. If QE2 doesn’t work, well, we will try QE3. And so and so forth.
In short, it takes a lot for me to change a general thesis, as I am “cement headed” too. However, it’s the right fucking call, you motherfuckers, so deal with it. We must protect against egregious depreciation, whether you like it or not.
Off to bang on some drums, whilst wearing my African jungle mask, and shit.
If you enjoy the content at iBankCoin, please follow us on Twitter
Plz send me an African Jungle Mask..
hence EXK
QE 2 will indeed prop the market higher, it seems. And PM’s certainly have been bullish. However, depreciation of the dollar against what? Against PM’s, OK. But as for values as measured by the currency marke– about half of the currency basket that the dollar index is measured against is Euros. And if the EU has something going for it, someone will sure have to tell me what it is, because I haven’t noticed it.
In short?
ALL COMMODITY BASED CURRENCIES, will grow stronger…(will appear to strengthen against U.S.$)
As shit gets more expensive…anything oil based…anything food based…and basically anything you may want to wear….jungle masks will always remain at a premiuim
Food surely is skyrocketing. And other commodities. But oil is so yesterday. I expect we will find better sources of energy soon. So the half of the U.S. dollar index that is measured against the Euro has no reason to fall and may rise. I do agree that the commodity based currencies may rise. All in all the dollar may go sideways in relation to the basket it is measured against– falling against some currencies & rising against others.
Oil IS “so yesterday” but anyone who thinks “we will find better sources of energy soon” either expects alien intervention, or is energy illiterate.
Or a left wing loon.
“Economic illiterate” is more encompassing.
___________
USD dropping steadily against the Costa Rican Colon.
http://www.ticotimes.net/Business-Real-Estate/Tourism-Industry-Battered-By-Exchange-Rate-High-Colon-Hits-Hotels_Friday-November-05-2010
Great headlines available for critics of Costa Rican monetary policy….
“Colon Cancer!” etc, etc.
__________
What they fail to mention is that the primary cause isn’t the currency. It’s the unemployment and fear amongst the former tourists. And that vacations within the US are more patriotic right now. That’s like saying “my taco stand is failing because of my high prices” during a pandemic.
currency market, I meant to type. Can’t edit any more here.
BTW, Congrats to Senator Gint on his highly successful PM strategy.
Fly!!! I’m having wine and I am pissed and I love you man!!!
You are The Fucked Up!
I must know… Did everyone’s CBS go out at the beginning of the Bernanke segment? Or was it just me?
For a moment I was convinced it was a conspiracy to quiet the bearded clam via Wikileak style espionage. It came back after about three minutes of distortion.
I did hear the Ben Bernank say, deflation is bad and inflation is easy to control. He can raise rates in 15 minutes. Perhaps he is a bit crazy… but I think he’s great.
Excellent. Presumably we may expect an end to cement-headed resistance to higher oil prices then…flip side of that coin. http://stockcharts.com/charts/performance/perf.html?$USD,$WTIC
and the plot thickens.
What does this mean, that le magistrate le fly is buying Jake’s portfolio?
It means that PM’s will have a huge pullback within a few months. But Fly will exit before that and thus be unscathed, because he is not a long term investor.
STFU you bitch-whore.
PM’s could have a correction if people started seeing real signs of an economic recovery. And the government, with its statistics, could easily manufacture such signs. PMs are an inflation trade but they are also a doomsday trade.
Like a 9.8% unemployment rate, giddy the fuck up baby…
No one in their right mind believes government statistics anymore. “Quoth the Raven, Nevermore!”
Hi-Ho $EXK
http://www.youtube.com/watch?v=QCO6smQrjJ8
True enough. As much as I dislike his political rants he has been banking wild amounts of coin since I first visited here a couple of years ago.
You dislike the political rants like you dislike bitter medicine.
Nevertheless, they must be swallowed for you to receive a clean bill of health.
_____________
The politics is inherently tied to his positioning. He is correct on both counts as you will eventually learn.
So Monsieur le Gint finally gets his due
That probably does mean the trade is coming to an end…
Fly! Did you see me on 60 Minutes tonight!
QE2, QE3, QE4, QE5,QE6, QE7, QE8, QE9, QE10!!!
I’m having more wine FLY!!!!
I love you man !!!!
I just tapped in to Business Insider and saw that “silver is going nuts”. Up, up and away. Could it be The Fly has absolutely nailed another one? This cat plunged into the EZK pool on Friday.
Oops, I meant EXK.
You are all making me extremely nervous.
____________
We may eventually have to Tighten Up!!!!
http://www.youtube.com/watch?v=ZM-SvGqwkjE
Lol, I knew it was going to be that song before I hit the link!
Love it!
More over 47+’s infiltrating the site!
Bwah! Bwah! Bwah!
(Red Alert)
________
QE2– a better path to prosperity. Better to print money than to actually work for it. Look at the people protesting over loss of unemployment benefits. They never put that much effort into a job.
That is some mean bullshit you’re spouting. What the fuck do you know to be denigrating 8 million people.
Yes, there are plenty of good folks looking for work who would rather work than collect unemployment benefits. Ther jobs all got outsourced. What are they supposed to do? Move their family to Asia and learn to speak Chinese– I mean Hindi– as I read that in China inflation is so high that workers are no longer coming to take the jobs in the city because they will just starve. They are staying in the countryside now, so that they can at least grow a little food.
Two step solution. Lower the minimum wage to 3.00/hr and stop all unemployment benefits. Al the illegal workers will go home and the jobless rate will increase.
Basically, that is what has to happen. Unreal, but treu. Along with that, everything else has to be debased also. The only thing that grows forever is cancer, until it kills its host of course…….actually that’s a pretty good analogy. I would say the USA is in stage 4 of the progression.
Oh look!
The World Bank and IMF already have solution… but it’s not just for taking care of employment (green jobs), it’s for taking care of just about every single facet of your life.
http://www.green-agenda.com
And oh yeah, don’t forget your religious allegiance to your programming script. This is purely a conspiracy theory and should be ignored, and you should do your best to attack the reputation of the messenger.
There’s a Darkness at the edge of Town!
I love you Fly!!!
http://www.youtube.com/watch?v=wHQsz9tlkZg
The politicans seem to be circling now and QE3, 4, 5 etc might not be as easy as the others. China’s slow down, which can be seen in Canada & Oz economic numbers of late in GDP, retail sales, home sales are slowing quite quickly. Long US$ with the backing of the biggest economy and defence forces ever. US gov debt, who cares with no real gdp inflation
Don’t stay long.
______
That wasn’t me Jake, The real j. It was some unaware impostor, I think 🙂
Weird… he’s captured your “voice.”
I would be a little alarmed if you had gone (long term) dollar bullish.
________
Bernanke is out of his freakin mind. He can’t fine tune this shit. What he does now, will echo into eternity—-or at least won’t be seen for 2 – 3 years down the road.
He wants an “orderly” decline in the dollar. Uh,….yeah right.
Bernanke is only doing what his master, George Soros, tells him to do.
Soros is merely a co-owner of one central bank. He co-owns Cede & Company, which is better known as the DTC (look it up), which is a part of the Federal Reserve.
Soros reports to the owners of the banking firms that own most of the world’s central banks.
Agree Alpha, if he really wanted to fix the economy properly from here, then (I know this is more goverment then fed, but he could advise goverment) Payroll tax holiday for all low/middle class so then can pay more off the debt which is the one of the root causes of the drag on the econ, infrastructuer spending with high speed rail network across the country putting 100, of thousands to work, possible a million of so if they wanted. Anyone that was not working increase their UI and put them to work in new skill areas, instead of paying them to sit around and do nothing.
Banks, get the ones that are screwed, fenced and recapitilized. Instead of this constent back door bailout.
I read an intresting comment that QE2 is really in place to buy more MBS as housing is double dipping, maybe.
Of course that’s what its for!
__________
No. He would default on an unpayable debt and start over based on a commodity currency. Most likely PM based. Which will have to happen eventually anyways. USA is over the tipping point imo and will end up with Zimbabwe style inflation/debt monitization.
Eveything will be All Right Now!
Fly! I’m on my second bottle of wine now!!!
Fly! I love you man!!!
http://www.youtube.com/watch?v=iR2V60yLIaw
Are you ready to fight? To kill,…to take lives?
You are a most miserable and wretched thing, Bernanke.
Look at the DJIA priced in wheat, gold, oil, or copper… all indicate the real peak of the market was back in 2001.
Let me know the next time your local grocery store takes chaffs of wheat or barrels of oil for payment.
Just wait.
Is it possible to get t-shirts made up with African Jungle Masks on them?
Good idea. AFRICAN JUNGLE MASKS tees for everyone.
I’ll take 2 in XL, long sleeve please.
I want one that says… “Tribal Gold” on it.
________________
I’ve been fortunate enough to run across and recognize some talented individuals. A few years ago, I was lucky enough to read this here blog for the 1st time & I never left. (I aspire to be a piker some day – soon) Tonight, The Fly proves once again that he is a man’s man, giving credit when due. That’s one reason Fly is a step ahead of the crowd.
Anyone who’s been here has seen him reverse his whole portfolio from bullish to bearish (or was it the other way around?) in 1 day. Banking big coin doing it. Not many can pull off shit like that.
I’ve been a big fan of the Jake’ for awhile; but I was not initially. Fly recognized Jake’s talent from the start and got him on board.
Kudos to both The Fly for the usual + his foresight and course correction ability and The Jake for getting ahead of the crowd on the pm’s and doing it extraordinarily well!
May iBC live long and prosper.
Grazie.
__________
I remember loving your posts JakeGint before you were tabbed!
no doubt, Jake’s stuck to his guns for a hell of a long time it seems.. i remember watchin him come up through the beanie days.. the wallsttreak days… good times, where’s Catcher now hey Jake… : )
Grazie, but I’m not even sure who Catcher is/was. My memory’s not like it once was.
You mean Dinosaur Trader? I think he’s that nutty frog fellow.
__________________
The Fly finally woke up to reality. Of course Jake has been correct all along. The plan has always been to destroy the USD. They have no fucking choice but to destroy the dollar since we are shoulder deep in debt. Now we devalue our currency so that no one gets their money back.
This is the final end game to the whole thing. It has been in the cards ever since the debacle in 2008, and this has been known by more than just Jakegint. If you have read Zerohedge at all for the last few years you would know reality.
i think the chinese realize that now,to the point that they fired a rocket off the coast of cal if fornia. and still not clear about ,”who done it”.
Of course it is clear. It’s just kept quiet in media. Weird since the media loves nothing more than to make Americans paranoid and fearful.
Speaking of Gold. This shit is fucking hilarious.
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/gono/C4G.jpg
Even if that’s a fake, it’s hilarious.
________
Before we get all heady… let’s keep this in mind… The Freaking Chinese are buying gold…
And all the attendant circus there involved….
_______________
How come there are no emergency dental places open now?
WTF
Is Dr. Fly also a dentist?
I can catch the next plane out if so.
jakegint for (New) tresuries (Era) Usa secretary
no joking
the US is headed for an IMF bailout later on down the roads
That would be akin to self-levitation.
________
No problem. We already R doing that– U.S. buying our own bonds. The states are quite jealous, but, being unable to print money, they can’t do that. But why do we need the IMF when we can just print and bail ourselves out, LOL. Big problem is that self-levitation is a delusion. If/when people stop believing in it, it stops working.
That’s eggsactly how it is.
Fed’s buying back the T-bonds is a monetary operation required to maintain desired interest rate level in the economy. US (and some other lucky countries) are indeed self-levitating in a sense that they can spend financial resources as much as they deem reasonable. Then, after that money lands as reserves on banks’ accounts at the Fed, the latter replaces these reserves with T-bonds via auctions.
The fed has unlimited Bernanke Bux for this purpose. They do not add to the money supply.
Money supply increases when the government spends. Bonds then drain these reserves to keep the target interest rate.
Not so. It is enslavement of the greatest country on earth to a few private shareholders. The IMF is not the US. The US portion of the IMF is owned by private shareholders primarily via the federal reserve.
+++5
CX chart looks pretty good, for the cement heads….
LMLP nice call V.King. whatever happened to that guy?