The Golden Truth: "My Investing Model is ABCD: Anything Bernanke Cannot Destroy"

Thursday, May 10, 2012

"My Investing Model is ABCD: Anything Bernanke Cannot Destroy"

We are in the last innings of a very bad ball game. We are coping with the crash of a 30-year–long debt super-cycle and the aftermath of an unsustainable bubble - David Stockman, interview linked below

This interview by The Gold Report (http://www.theaureport.com/) is an excellent follow-up to my blog post from yesterday. In this, Stockman does a superb job explaining how the Fed manipulates the cost of money and the cost of debt and how Wall Street takes advantage of this through the use of insiders, like former Goldman Sachs partner Bill Dudley, who runs the NY Fed:

The Fed is destroying the capital market by pegging and manipulating the price of money and debt capital. Interest rates signal nothing anymore because they are zero. The yield curve signals nothing anymore because it is totally manipulated by the Fed...there is also just plain crony capitalism that is not that different in character and it's what Wall Street does every day. Bill Dudley, who runs the New York Fed, was formerly chief economist for Goldman Sachs and he pretends to solicit an opinion about financial conditions from the current Goldman economist, who then pretends to opine as to what the economy and Fed might do next for the benefit of Goldman's traders, and possibly its clients.

This is a must-read interview - every word. Stockman succinctly and clearly lays out what happened and why in 2008 and explains why the next wave that will hit our capital markets will be the final blow: LINK

The only conclusion that anyone can draw from this - at least anyone willing to open their eyes to the truth and accept reality for what it is - is that the financial, fiat-currency driven disaster that is going to hit this country necessitates the conversion of as much of your paper wealth into gold as possible.

4 comments:

Dave in AZThursday, 10 May, 2012
With the G:S ratio so far to one side, my truck is backing up to the silver dock.
ReplyDelete
Replies
AnonymousThursday, 10 May, 2012
What ?...and No Silver !?
Don't leave us out in the cold for Pete's sake !
ReplyDelete
Replies
AnonymousThursday, 10 May, 2012
Dave here he sums it up like this:

"This is the question: Will the central banks be able to do that now, given that they have already expanded their balance sheets? The Fed balance sheet was $900 billion (B) when Lehman crashed in September 2008. It took 93 years to build it to that level from when the Fed opened for business in November 1914. Bernanke then added another $900B in seven weeks and then he took it to $2.4 trillion in an orgy of money printing during the initial 13 weeks after Lehman. Today it is nearly $3 trillion. Can it triple again? I do not think so."

I think they will print until we hit 10 percent inflation. Then the Fed that is in place to protect banks will hit the brakes on printing. Then what will Congress do? Will they ditch the Federal Reserve. Who knows? In the mean time the only thing we can do is wait for a bank holiday, national default and massive inflation. Till then buy gold.
ReplyDelete
Replies
AnonymousThursday, 10 May, 2012
where do markets turn when things go to shit? US treasuries. The end game in the treasury market, if it ever comes, is years, if not decades away. The charade will keep on going. I assure you.
ReplyDelete
Replies

Add comment

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.