Wednesday, February 27, 2013

This Is A Must Read And It's Why You Must Own Gold/Silver

Ben Bernanke has spent the last two days testifying to Congress - under oath - the economy is improving and that his money printing scheme has saved the system without risking inflation.  He really emphasizes the avoidance of deflation.

But what's so wrong with deflation?  If prices of goods and services decline, enabling the consumer to buy more of those goods and services, isn't that a good thing?  The real deflation to which Helicopter Ben refers is the deflation of all of the assets that have been financed by the banking system, potentially rendering the banking system insolvent.   But this would be a good thing too in the long run.

With that said, please take the time to read this commentary below which compares our current systemic with that of late 18th century France.  The parallels are startling:
The French were in the same boat in the 18th century. During the time of Louis XV, no one could imagine how French society could possibly function if they cut the welfare system or defense budget. So they kept spending… kept going into debt… and kept debasing the currency.
Here's the LINK

Back to Bernanke:  either he's complete liar or a complete idiot.  I doubt he's the latter.  No inflation? Anyone out there not paying more for energy, gasoline, health insurance, etc than just 6 months ago? Improving economy?  Government-reported GDP for Q4, 2013 was negative.    Housing is better?  There are 133 million housing units in the U.S., 75 million owner occupied and 40 million renter occupied.  That means there's 18 million vacant homes.  4.3 million are considered vacation homes and 3.9 million are available for rent.  That means 9.8 million homes are vacant (data is from the Census Bureau).  Is that a healthy housing market?  Every month more people move onto Social Security disability and food stamps.  Over 100 million people in this country receive Government entitlement payments.  Healthy economy?  Sure Ben...


  1. As you probably know, deflation would pop the credit/debt bubble. All the paper holding millionaires and billionaires would see their wealth vaporize instantly. Can't have that, right?

    BTW, if I had to guess, I'd bet we're being lied to.

  2. Firearm industry doing well. :)

  3. The problem is that the policymakers have everything under control, a booming stock market, low interest rates, QE programs that have no negative implications (yet).

    Yes, there is some inflation, but not enough to force investors into gold or silver. Stocks are providing the inflation protection for investors, so why buy gold or silver?

    If there is a problem, we just print more money, but so does the ECB, JOP, BOE, so it tends to all equal out. Papering over the problems is working, and the end result is at worse stagflation, stagflation is not the end of the world.

    Since 2008, we have had stagflation, what would change that? Not much.

    For years we have been hearing, we are going to inflate our way out of the debt, how was that worked? It hasn't at all, we have low growth and moderate inflation, it has become a slow and pain lost in standard of living, but again everything has been contained.

    I hate to say it, but gold and silver need something "special" to hit new highs, we already know about money printing around the globe, it's no big deal for now.

    1. gold and silver have not needed super high inflation for the past twelve years to go up six and seven times respectively. negative real interest rates will do it just fine. but hey you're forgetting that even if all the currencies go down at about the same rate it doesn't equal out because this will just mean currencies will all go down against things like oil and food. gasoline has quadrupled in the past twelve years and right now 20 percent of americans spend 55% of their income on food and energy alone according to dr stephen leeb. this means all it would take is for food and energy prices to double again for one in five americans to have no discretionary spending.this would lead to higher unemployment, higher deficits, more money printing and then the massive inflation.therefor it shouldn't matter to anyone whether gold and silver go up or down until then.if it goes down it's juts a sale. if it goes up this year and the next you shouldn't bet on it going down in three of four years.

  4. Dave and all readers of this blog, if you really want to know how bad it is, please take five minutes of your time to read this.

    1. That is a frightening article. Who is Jim Willie?

  5. gold is money ... more so now that it's free to trade in real-time.

  6. From Bernanke's statement ("US Dollars have value only to the extent that they are strictly limited in supply"), it is only logical to realize that he fully understands that by making the dollar more plentiful he is thereby reducing its value. Therefore that must be his purpose and intention. Just by itself alone, his statement provides conclusive proof that his actions are not the result of ignorance or stupidity, but that the destructive results of his efforts are knowing and deliberate.

  7. Relaaaaax, dude!

    Armstrong has waved his magic wand & postponed everything for exactly 1 year.
    The social unrest & riots? Now 2014, not 2013 summer.

    With no explanation as to why all of a sudden after decades of exactitude, he's changed it, meaning how is it that everything else he's blabbed is also not off by at least as much.

    Just keep believing everything you see & hear, like the Carpenter movie 'They Live'.
    For instance, now as I type this moment I look to the right sidebar & see kitco box for Feb 27 says hi/lo's are:
    1663.90 & 1591.30;
    31.68 & 28.77
    Why don't you believe that, too?

  8. 1. "Government-reported GDP for Q4, 2013 was negative. ". Dave, should correct this typo.
    2. I don't the 18th century France was a good example. You should have read "When Money Dies" by Adam Fergusson. That is a much better example.

  9. For three decades, the globalization of finance appeared to be an unstoppable trend: as the world economy became more tightly integrated, new technology and access to new markets propelled cross-border capital flows to unprecedented heights. But the financial crisis brought that era of rapid growth to a halt.

    More than four and a half years after the financial crisis began, we find that recovery has barely started, despite a rebound in some major equity indexes. Growth in financial assets has stalled, while cross-border capital flows remain more than 60 percent below their 2007 peak. Some of the shifts under way represent a healthy correction of the excesses of the bubble years—but continued retrenchment could damage long-term economic growth.

  10. "...after a so-called “surprising” and largely ignored drop in US GDP in the 4th quarter of 2012, who could still think that GDP growth in the first quarter of 2013 will be positive (except by making up the numbers)? The fall is all the more inevitable as a few days of economic activity were lost in the North-East because of Nemo (the blizzard) and that there was a severe flu epidemic this year. They will be the excuses offered when it’s necessary to justify a fall in GDP in an economy officially supposed to be picking up. Nevertheless an announcement at the end of April of a US relapse into recession (two consecutive quarters of a fall in GDP) will make its own modest impression on the world economy."

  11. Fed admits that stock market gains are tied to central bank manipulation

  12. It's always the same bullshit with the run up about how many will stand for physical delivery. On the COMEX no one wants delivery - Harvey should get that in his head. This bullshit suspence is Harvey and many others create shows everyone up as incompetent and has convinced me that what you read in the alternative media about precious metals is mostly written by people who haven't a clue. 12million oz of silver big deal there are 160mill in COMEX now. Mostly the retail investors have been dubed into silver - there aren't any bigger fish who are going that route.

    And another thing Andrew Maquire isn't a whistleblower he never was one of the boys. And his case is dying with the CFTC's inability to bring something to the foreground in silver and he hasn't pressed the issue anymore either because he knows it's all bullshit. Why doesn't he start talking more about it.