I can't believe what I just heard. Bernanke just said, all other commodities are going down, food, oil. But Gold is doing it's own thing!!! He does not understand it. He looked puzzled!
God help us all!
I have a 10% hedge in SKF. The only thing certain is that we have a mountain of debt and.. well you know the rest( the Fed is between a rock and a hard place)... The inflation theme is the easy route... but the tea parties have another avenue.. thus SKF
"I see inflation, imo to help get us out of this mess!"
More like you'd like to see, perhaps. Which the first sentence in my post was:
"First dip of Depression gaining steam. They better get a stimulus through, or it will happen."
What will it be?
The clock is again ticking..
Generally speaking, Central Bankers are paid to lie. We know this because former Federal Reserve Vice Chairman, Alan Blinder, “slipped” back in the 1990’s when, on national television, he uttered the words,
"The last duty of a central banker is to tell the public the truth."
Ask him if the Fed understands that many good people who have done nothing wrong have been on the receiving end of countless Federal Reserve attacks, er, actions that always tend to favor bankers or borrowers, the bad ones who do nothing right, and that this has happened so many times that the good people of America have lost confidence in the Fed (and US govt for that matter) on financial matters forever. Once confidence is lost it is very difficult if not impossible to get it back. Does the Fed understand this and if they do, what is the Feds plan to restore confidence?
I will be at a private dinner tonight with BoB McTeer, former head of the Dallas Fed. I'm writing down a list of questions to ask him and rehearsing asking them in a non-aggressive manner (he's actually a very nice guy even if he does have the regretable character flaw of reflexively defending Alan Greenjeans).
1) Will Capitalism work without all the major players being subject to the same rules...i.e. failure, or are we developing a gussied up form of crony capitilism which is doomed to fail itself?
2) Will Capitalism work when the Markets are not allowed to clear by our Politburo...uhhh...I mean our Fed which repeatedly reaches for the same tonic every time a problem in the economy arises? Lower interest rates and the ole "Greenjeans Put" which effectively punishes savers and investors and rewards the imprudent?
3) Does this economy have a healthy feel and smell to you? Shouldn't we be experiencing a V shaped recovery given the dramatic nature of the decline based on historical precedent instead of the anemic economic recovery we have had so far just as we are evidently getting ready to raise taxes and withdraw stimulus?
4) Besides bubbles and debt haven't the Feds' policies grown truly grotesque sized industries, primarily the financial and real estate industries, which have diverted not just capital but also people into unproductive enterprises? Doesn't that process now need to be reversed which means years of pain...once we actually start?
5) Do you not find, or don't you acknowledge it as the case, that John Williams' Shadowstats study of current monetary policy, and its tightness is alarming? Williams shows that M3, which is calculated by the Fed presumably but no longer released, has fallen at a 5.9% rate recently which is in line with what happened with Roosevelt in the 30's during the Great Depression. Given the higher dollar, the European debt crisis, our continued high unemployment isn't that a rather alarming statistic...if you accept that it's approximately correct? Isn't this a rather unfortunate time for the Fed to inadvertently tighten monetary policy?
I'm open to suggestions...for questions that is.
Y'See Ben-al-a, it's like this, when you free gold and silver from their role as currency, all you're left with is full faith and credit, and our faith, and our credit, SUCK!
4 silver dimes in 1971 bought a gallon of gas, and guess what! if they're made of silver THEY STILL DO! Four junk dimes are worth about four bucks TODAY, so, what does that tell you about the price of specie? It tells you Jefferson, Madison, the Adams bros (without Curley or Shemp) not only told you that the banks would own everything if they controlled the cost of real money, but the stability of gold and silver for 100 years would go into the toilet for the next 100.
Our dollar is worth ten cents since 1971, but silver has "stayed the same" which means, it's worth a dollar for every ten cents held.
And folks who are seeing all the commodities tumble and all the euros turn to eurine, are scurrying back to the one and only original safe, haven, GOLD and silver.
Sweetie you inflate the currency at 3.6% a year and try to fool people into believing that is "growth", and you can equate that with athlete's foot, that's growth of the same kind of fungus--you halve the buying power by half in 20 years, and in 20 more, half it again!
You may have advanced degrees in economics, you ought to take some eigth grade statistics courses and learn something about the power of compound interest.
Till then turn in your diploma, and see somebody about hair transplants.
Actually silver has not stayed the same. Four Roosevelt dimes have a melt value of $5.26, ie will buy ~1.75 gallons of gas in many parts of the country.
Check out the silver coin melt value calculator.
Do I need to post the You Tube where Bernanke said the Subprime Crisis was contained and they so no future problems.
Bernanke is leading Americans to the slaughterhouse.. folks..
ernanke's remarks poo pooing the subprime crisis should disqualify him from influencing ANYONE on ANYTHING. This is a market with great bull "faith" being pummeled by the bear realities when realities rear their bearish head.
I think that is why we seem to go up 3/4 the day, and have a hangover before closing time. By 2 O clock we're sleeping off the drunken rally, and we wake up around 230 and get a look at what is lying next to us.
I notice that anytime Obama or Bernanke speaks the market does things to reflect what they are saying.
Basically to give them some sort of power or influence among the sheeples.
Then when the leave the markets correct and the market goes back to the true story not the falsehoods given by Obama and Bernanke.
Since Bernanke is up speaking today the price of Gold must come down so the Fed is probably scheduled to short metals during his speach.
Notice how the DOW is going up during Bernanke's speech? It is a Dow/Stock market selling opportunity while Bernanke is speaking this morning..