The Golden Truth: The Truth vs. Ben Bernanke - How Do You Know Bernanke Is Lying?

Tuesday, April 20, 2010

The Truth vs. Ben Bernanke - How Do You Know Bernanke Is Lying?

A: His lips are moving. Here's a direct quote from a speech Bernanke gave to the National Economists Club in 2002, when he was jockeying to become Greenspan's successor:

“U.S. Dollars have value only to the extent that they are strictly limited in supply. But the U.S. Government has a technology, called a printing press or, today, its electronic equivalent, that allows it to produce as many U.S. Dollars as it wishes at essentially no cost.”

The golden truth is that hyperinflation is a response to deflation and a Government's attempt to prevent deflation. That is exactly what Banana Ben Bernanke is doing now. Gold has gone up in dollar terms 452% since its 2001 bottom at $250 - 16%/yr on average every year - without the benefit of any perceived price inflation. Imagine the move gold will make when Bernanke's monetary policies begin to translate into price inflation - imagine the move the mining stocks will make...

Bernanke's entire monetary foundation is based on the devaluation of the U.S. dollar. That's why gold has done what it's done over the last 9 years...Got Gold?

4 comments:

JeffTuesday, 20 April, 2010
for sweet jebus! when in good god are the junior miners going to go?!?!?! most of them r still stuck at the 08 collapse level!!!
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Dave in DenverTuesday, 20 April, 2010
LOL. Soon I hope. It's absurd. They are reeeaaallly cheap - most of them.
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anliuTuesday, 20 April, 2010
Dave, the stock market is making alot of people look like absolute fools... I won't be surprised we get monster highs when hyperinflation hits. Nice to see you haven't been shouting top on u'r blog everytime a correction happens. ;)
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Dave in DenverTuesday, 20 April, 2010
I stopped speculating on the direction of the stock market a long time ago. Occassionally I buy AMZN or GS or AAPL puts.

In fact in Nov 2005, when the Fed revealed that it would stop reporting M3, I predicted that the Fed was going to reflate the stock bubble to try and offset the wealth effect of the housing collapse. I said we could see the Dow hit 20,000 eventually and that gold would outperform the Dow by at least 2:1 and mining stocks 5:1.

In Weimar Germany, the stock market went to incredible levels even though the population was going broke...
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.