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Axel Merk: Why Is Anyone Still Waiting to Sell the Dollar?

Tyler Durden's picture


From Chris Martenson

"The Fed can buy billions, even a trillion or so, but if and when the market is moving against the policymakers then there is no stopping. The Fed cannot stem that tide. There is only so much that they can manage and so it is something that they have to watch very carefully. At the same time, they are not terribly concerned. If the bond market is falling, you do not know whether it is because of more economic growth or because of more inflation, and you really only know after the fact.

So for now people think “We have economic growth kicking in”, until the next economic numbers are not as great as expected and so it is a bit like a boiling frog syndrome. You print in all this money, you think everything is great and you have some warning signs but you think “Things are moving along” and by the time that you really see the damage you have created, it is quite late to undo this damage and it is going to be very, very expensive and painful."

So remarks Axel Merk, currency specialist and founder of the Merk Mutual Funds, who is perplexed by those waiting for additional warning signs to sell the dollar. In his view, we have all the evidence we need. He and Chris discuss the inner workings of the Fed and the course it is determinedly charting - and the looming dangers ahead for the US dollar.

Click here to listen to Chris' interview with Axel Merk (runtime 40m:55s):

Read the Transcript of the Podcast
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In this podcast, Axel explains:

  • Why Ben Bernanke is hell-bent on debasing the US dollar to spur economic growth
  • How the politics of the Fed work, where the power lies and which arguments and actions are likely to carry the day
  • Why inflation expectations actually matter more than actualy inflation, and why the Fed will not rest until it is satisfied the market expectations for inflation are higher
  • That the US is on its way to a fiscal trainwreck - a reality our political leadership continues to lack to backbone to address honestly
  • The Fed's powers are prodigious, but not as great as the market. If and when the market moves against policymakers, nothing will stop it. The growing risk is we quickly tip into the inflation the Fed wants, which then quickly leads to runaway prices
  • His outlook for gold and why he thinks this "ultimate currency" can go much higher from current levels
  • How the US is caught in a Catch-22: our loose monetary policy continues to encourages credit consumption that makes us increasingly vulnerable; but we're so indebted already that if the Fed tightens rates, the economy could easily fall into a full-blown depression
  • How currencies mutal funds can responsibily reduce their risk exposure to the US dollar while offering investment gains

Axel Merk is president, chief investment officer and founder of Merk Investments. Axel is a noted expert on world currencies and manages several mutual funds that manage currency risks for investors. For years he has been an outspoken critic of US monetary policy, warning investors that the current course risks seriously devaluating the dollar. The past few years have proven his warnings to be accurate. He is also the author of Sustainable Wealth, a very readable guide to understanding our macro economic environment, the risks today’s investors face, and how they can mange their finances to achieve financial stability .


Our series of podcast interviews with notable minds includes:


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Sat, 04/23/2011 - 12:24 | 1199159 topcallingtroll
topcallingtroll's picture

Ted Butler is likely a mild sociopath.

He looks like a morally crusading messiah now, but he is not stupid.

When hysteria is the highest and he is screaming the loudest about a dollar collapse this guy has the balls to sell into the teeth of the hurricane.

He also knows on the other end of the trade will be a frightened rube who will take a big loss. But dont listen to me. Watch what he does if he is man enough to be honest. We all hope to sell to a.bigger fool. I am no better than him, just less competent in my timing.

Dont come around fight club, Ted, unless you are ready to fight. I know you read this.

Sat, 04/23/2011 - 12:26 | 1199166 Tyler Durden
Tyler Durden's picture

There was an error in the original title. This is a podcast with Axel Merk, not Ted Butler.

Sat, 04/23/2011 - 12:37 | 1199192 topcallingtroll
topcallingtroll's picture

Sorry ted.

I will fight you later.
I have followed you for a long time, before most of these guys had pubes. But lets have no illusions of what we are, shall we?

People who are not in touch with all aspects of their personality are not whole people. Own and acknowledge your sociopathic component. You would not have had the courage to walk alone without it.

I think it reasonable to delete this series of posts since they do not apply to the current topic. Or leave it up. I dont care.

Sat, 04/23/2011 - 13:05 | 1199250 falak pema
falak pema's picture

You should read Professor Kotlikoff's paper on level of real USD debt...estimated at USD 200T+. Not the official 14 T level. Thread on this article is on Open thread above page#4.

Now here ...

Sat, 04/23/2011 - 13:12 | 1199283 topcallingtroll
topcallingtroll's picture

Those are future contingent liabilities assumed if present trends continue. They will vanish with a.change in the law. Those are not like bonds which are real current liabilities.

Sat, 04/23/2011 - 14:53 | 1199462 Popo
Popo's picture

Bonds too, are just pieces of paper.

Sat, 04/23/2011 - 16:54 | 1199676 topcallingtroll
topcallingtroll's picture

but they have a tiny bit more legality in terms of obligations as compared to adding up all the value of politicians' future promises

Sat, 04/23/2011 - 19:23 | 1199952 Real Estate Geek
Real Estate Geek's picture


Sun, 04/24/2011 - 12:26 | 1201001 msamour
msamour's picture

Any piece of paper that says I owe you on it bears no value what so ever if there is not the ability to collect on the said debt. You cannot get blood from a stone. When the person owing the debt states that he will not pay the debt back because he cannot, no amounts of threatening/retribution/killing the guy's family or destroy the country of the entity owing the debt will bring about resolution and actually have the debt being paid. People who bought bonds gambled, and they lost. That is the real story there. Smart people would have stopped buying bonds a long time ago.

Sun, 04/24/2011 - 12:43 | 1201055 redpill
redpill's picture

Tell that to Greek bondholders.

Sat, 04/23/2011 - 12:38 | 1199193 Popo
Popo's picture

Heh...  so much for the preceding rant then... 

Sat, 04/23/2011 - 12:44 | 1199217 topcallingtroll
topcallingtroll's picture

He he.

Maybe i will get another chance later. It is embarrassing to swing at imaginary targets.

Sun, 04/24/2011 - 10:25 | 1200707 RockyRacoon
RockyRacoon's picture

It's embarrassing only if there is a large audience and has an added spice of having been a smug, strutting peacock in the past.   This is generally speaking, of course.

Sat, 04/23/2011 - 19:06 | 1199882 DosZap
DosZap's picture


Sat, 04/23/2011 - 19:52 | 1200000 bigelkhorn
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The dollar looks horrible here. Those FFT guys have been crushing the market latetly. I am a VIP member and love their technical analysis, but they just uploaded a FREE video of what they think is going to happen in the next few weeks to the S&P 500. Its well worth a watch!


Sat, 04/23/2011 - 12:32 | 1199171 Rogerwilco
Rogerwilco's picture

The coming rally in the DX and treasuries will find a lot of folks wondering what hit them.

The reset event will set the stage for bank nationalizations, more QE, and Obama's reelection effort.

Sat, 04/23/2011 - 15:02 | 1199481 unky
unky's picture

I seriously think this can happen in the short term. Lets say when QE2 ends in june, they might let the dollar rally and sacrifice another PIGG country or two (restructuring greece, more problems in spain or whatever). but after that QE has to continue i think.

Sat, 04/23/2011 - 16:33 | 1199642 Edmund Dantes
Edmund Dantes's picture

spot on. gold will hit $1,650 in May, then fall to $1300 this summer, which will be the last buying opportunity before we head over $2,000. 90% of PM investors will get washed out on the head fake. QE-3 starts in August.

Sun, 04/24/2011 - 16:46 | 1201589 natureoftheexpe...
natureoftheexperiment's picture

Go on.. 

Sat, 04/23/2011 - 21:21 | 1200138 Confuchius
Confuchius's picture

We have checked with osama soetoro's supporters in Jakarta and he definitely will not be "running" for any public post other than volcano inspector or tsunami clean up leader...

Sat, 04/23/2011 - 12:30 | 1199173 AldoHux_IV
AldoHux_IV's picture

Axel Merk is a douche who's shameless promotion of his mutual funds and pro-euro doctrine is attempting to ride the wave of dollar destruction sentiment while truly not grasping how fucking twisted Bernanke's logic really is-- 'a student of the Great Depression' my ass. The guy doesn't know shit about economics and neither does Merk-- fucking bandwagoning self-promoter.

Sat, 04/23/2011 - 12:43 | 1199212 topcallingtroll
topcallingtroll's picture

I slightly disagree, but not enough to slug it out with you. Everyone has to promote and has a viewpoint, but i believe he has been honest about his calls and he does eat his own cooking. I cant expect more from a trader/investor.

Sat, 04/23/2011 - 15:44 | 1199547 THE DORK OF CORK
THE DORK OF CORK's picture

I agree - Merk is a typical German Euro conservative - he deliberately fails to see the problem is the shadow bank sector, not entitlements which he wishes to cut which will crash demand into the Regolith.

Of course when you realise that the Euros construction was designed to crush sovereignty using private debt has a sledgehammer his views make sense.

The central banks goal since the wage inflation of the seventies which hurt their clients is to create a global wage deflation environment which until recently was fueled by private debt creation.

Now that this credit engine is dying the Central banks do not know how to engineer a effecient solution to protect their clients equity funds whose value is dependent on wage austerity.

To me the solution lies in the destruction of credit completly by global wage inflation.

Sat, 04/23/2011 - 20:51 | 1200107 IQ 145
IQ 145's picture

 Excellent. I knew there was a reason why I liked your posts; the reason is, you can think.

Sun, 04/24/2011 - 08:20 | 1200528 falak pema
falak pema's picture

unlike you : Fukushima meltdown impossible!

Sat, 04/23/2011 - 21:23 | 1200143 Confuchius
Confuchius's picture

And what kind of promoter are you?

Sat, 04/23/2011 - 12:32 | 1199177 Fancy Bear
Fancy Bear's picture

Gold is the ultimate currency bitchez

Sat, 04/23/2011 - 12:43 | 1199207 Popo
Popo's picture

As invested as I am in gold, that statement belies an ignorance of history.

Gold has its moments.  It will soar like you've never seen it.  But it will be squashed again -- mark my words.  

If gold were the ultimate currency, it would not have been so easily demolished for 30 years by a currency which goldbugs dismiss.

The dollar is indeed, fucked.   But there will be other "ultimate currencies" which supplant gold.  All of them will rise and fall -- over the course of decades.  The RMB will likely be the world's next reserve -- if it's not some unnatural hybrid currency like SDR's or IMF-bucks.  

Hold your gold.  But don't walk around like a wet eared newb thinking that it's a good hold forever.   It can and will be smashed again.  The only question worth asking is:  By whom?



Sat, 04/23/2011 - 12:50 | 1199226 topcallingtroll
topcallingtroll's picture

A metacurrency like the sdr is the best solution. The controversy is only about the components.

A gold standard is a sign of societal failure, not success.

Sat, 04/23/2011 - 15:11 | 1199496 terryg999
terryg999's picture

I am pulling for the World Mark. 

Sat, 04/23/2011 - 15:30 | 1199525 Calmyourself
Calmyourself's picture

Metacurrency backed by what? The full faith and resources of the U.N.? The SDR is an illusion and a great way to start WWIII but not a currency.

Sat, 04/23/2011 - 16:51 | 1199672 topcallingtroll
topcallingtroll's picture

it is comprised of national currencies at various percentages, but only currencies that have true price discovery, meaning a free float.


It is less flexible than gold, but still a better store of value than an individual sovereign currency.  Think of it as buying a bond fund, versus buying an individual bond.

Sat, 04/23/2011 - 23:26 | 1200276 blunderdog
blunderdog's picture

SDRs?  Metacurrency? 

Um yeah ok.

But as cool as the whole new world odor/one-world gummit thing could be, there's still some of us looking to smash the state, ya know.  See ya on the other side.

Sun, 04/24/2011 - 11:50 | 1200897 RockyRacoon
RockyRacoon's picture

And you were doing so well with your red-faced apology above.

Now you go and make silly statements like these.

How can I come to admire your intellect when you go off the deep end?

Sat, 04/23/2011 - 17:17 | 1199710 Flakmeister
Flakmeister's picture

An honest currency that is practical, would be based on Energy.

Sat, 04/23/2011 - 17:51 | 1199777 topcallingtroll
topcallingtroll's picture

too inflexible.  You will allow the money supply to shrink if energy resources shrink?  That would cause a depression.  At least gold grows about two percent a year.

Sat, 04/23/2011 - 21:26 | 1200149 Confuchius
Confuchius's picture

Gold does not "grow"

It also does not shrink.

Which is why it is money and has always been, for thousands of years.

Sun, 04/24/2011 - 11:51 | 1200903 RockyRacoon
RockyRacoon's picture

The supply does actually increase, which I believe was his point.

Sat, 04/23/2011 - 23:45 | 1200288 Milestones
Milestones's picture

But it is not depletable also?       Milestones

Sun, 04/24/2011 - 11:52 | 1200908 RockyRacoon
RockyRacoon's picture

The amount used to plate relay contacts tends to decrease as the cost increases.

Sat, 04/23/2011 - 16:03 | 1199583 FreedomGuy
FreedomGuy's picture

A gold standard is an acknowledgement of the failure of men in power, not necessarily society. Is is the acknowledgement that fiat currencies return to their intrinisic value of zero. Long before that it is an acknowledgement of the manipulation of that currency and therefore the manipulations of government.

Sat, 04/23/2011 - 16:52 | 1199669 topcallingtroll
topcallingtroll's picture

agreed.  it is the failure of the controllers of the currency, not the society at large.

Sat, 04/23/2011 - 19:10 | 1199926 Justaman
Justaman's picture

If that is the case, why does the experiment keep failing?  Any paper currency accepted by a society eventually becomes manipulated and just a managed tool by the government at large.  We all know every paper currency has failed so why keep it as a means to an end.   An end of an empire that is.  The hope that it will work next time IS in fact a failure of society because it eventually speaks about the society and culture it so represented. Good luck with paper and any manipulated, I mean, managed currency. 

Sat, 04/23/2011 - 20:51 | 1200100 FreedomGuy
FreedomGuy's picture

It fails because of the fallibility of men. It is actually the same reasoning behind our multiple branches of government. Men are fallible. So don't give any one of them too much power and divide the power among many (branches). All of this was to dilute power and minimize the evil side of men. It worked well for awhile but has no pretty much broken down.

My hope is that people/society will reason their way to the next step which is to fully limit the power of government to something approaching zero. Libertarianism is the next advance in civilization, not the collective. However, I fear it may take a few centuries to get there.

Sun, 04/24/2011 - 11:54 | 1200913 RockyRacoon
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Ding, ding.  You win the Kewpie doll.

Sat, 04/23/2011 - 21:03 | 1200120 Bicycle Repairman
Bicycle Repairman's picture

Mankind cannot and will not ever reach the gold standard.  Only a fool would expect it.

Sun, 04/24/2011 - 12:10 | 1200924 RockyRacoon
RockyRacoon's picture

I tend to think that gold standards (there have been many) are a condition of economies that are reverted to, rather than deliberately established.   They work for a period of time during which the centralization of power degrades the practical nature of the standard itself.   Over the longer term greed and avarice further dismantle a perfectly usable system when markets are truly free.  Market interventions by government, usually in the cycle of financing war(s), eliminate free markets and thereby the store of value aspect of gold.

The way to survive is to keep one's head above the noise and confusion and observe the natural course of these events.   Swinging in and out of the prevailing financial forces at predetermined times is the way to preserve purchasing power of the currency, whether it be fiat or precious metals.   Of course, other forms of physical assets can be utilized according to the expertise of the investor/saver.   It has been shown that art, philately, precious stones, base metals, and many other areas can be utilized; but a knowledge of the field(s) and their markets is a must.   Precious metals is easy because not much knowledge other than how to procure or dispose of one's holdings is needed.   It's sort of one of those no-brainer methods to preserve capital.  

There are several drawbacks to this:  PMs are volatile since semi-literate financiers get involved in the buy/sell side.   Goverments tend to bend the "value" curve in order to preserve their fiat dominance.   Others can be added to the downside list, but it is easy to see that the downside is an offshoot of the lack of free markets.

Sun, 04/24/2011 - 08:48 | 1200569 Sathington Willougby
Sathington Willougby's picture

If by success you mean the ultimate cradle of filth and corruption, then keep your silly fiat.


Society fails one individual at a time and to think it can be preserved by government oversight is ludicrous.

Sat, 04/23/2011 - 13:14 | 1199281 Caviar Emptor
Caviar Emptor's picture

Your words all pre-suppose an orderly, rational world where people are ready to just hand over power and wealth in the name of peace and harmony. Good luck with that. Until that day comes, gold is it. 

Sat, 04/23/2011 - 14:42 | 1199448 Rogerwilco
Rogerwilco's picture

No, they will use the power at the end of a gun barrel to make the necessary adjustments. You will either comply or fight. This is the "end game" when the rule of law no longer applies. And you prescient PM owners, you get to choose sides too. Just know that whatever side you throw in with, they will likely confiscate your stash to finance the fight.

Sat, 04/23/2011 - 14:55 | 1199466 Popo
Popo's picture

I seriously doubt we'll see confiscation.  It's frankly too messy.

I have *zero* doubt we'll see extremely high taxes on metals transactions.  This is effectively the same as confiscation, without the messiness. 

Sat, 04/23/2011 - 16:04 | 1199586 FreedomGuy
FreedomGuy's picture

Go to bartering and trading then.

Sat, 04/23/2011 - 18:56 | 1199896 DosZap
DosZap's picture

Then they will have a mass exodus of short ship if you will.

Sat, 04/23/2011 - 18:55 | 1199894 DosZap
DosZap's picture

Gotta know you have it, before they can abscond with it.

Sat, 04/23/2011 - 21:30 | 1200152 Confuchius
Confuchius's picture

Never forget:


Political Power groes out of the barrel of a gun.

Chairman Mao.

Sat, 04/23/2011 - 15:37 | 1199536 Calmyourself
Calmyourself's picture

"If gold were the ultimate currency, it would not have been so easily demolished for 30 years by a currency which goldbugs dismiss.'

If common sense were common, phrenology, Lysenkoism and many other historical mistakes would never have been made. Yes, there is hysteria and madness in crowds that fact does not denigrate Golds history, just Mans.

Sat, 04/23/2011 - 15:43 | 1199554 Life of Illusion
Life of Illusion's picture


Consumer debt will be paid down. Feds not going to discount MBS they have, they will enforce collections of payments. inflate assets prices and collect the debt.

Inflate, debt slaves pay down debt, cool it off short term, debase gradually, it’s a process.

The debt processing plant (politically correct) takes dollar carry trade, sets up production in non-dollar denominated assets.

So, USA debt slaves pay down your debts, get less entitlements and expect higher fees and taxes.

Next up? The HollywoodFED show when Ben plays star in the economic sitcom coming to MSM near you.  Should create quite the volatility as Ben works his well rehearse scrip’s.

PS: “The City’s” doing what?


Sat, 04/23/2011 - 20:57 | 1200113 IQ 145
IQ 145's picture

 Not by whom. By What. What, indeed; in 2500 years of excellent documentation; what has succeeded? The one time event of US Federal Bonds paying so much, it was irrational to remain in PM's. This was only possible once. It has transpired. It will not occur again.

Sat, 04/23/2011 - 12:33 | 1199178 Spalding_Smailes
Spalding_Smailes's picture

Why ? Because China & the E.U. are dog shit options long term ......

Sat, 04/23/2011 - 12:48 | 1199214 Popo
Popo's picture

Yes, but "long term" could easily extend beyond our lifetimes.

It was extremely apparent to anyone with a clue that the dollar was doomed back in the 1970's.

How many people lost on that trade by dying before being made right?


Sat, 04/23/2011 - 13:38 | 1199339 Caviar Emptor
Caviar Emptor's picture

Actually, except for 4 years between 1982 and 1986 the dollar has been in decline since the 1971 Nixon shock when the gold window was slammed shut. Even during those years it only reached a peak about 12% above the 1971 level. 

Sat, 04/23/2011 - 20:59 | 1200119 IQ 145
IQ 145's picture

 Most people alive and investing today are not aware of it; but it was a thesis that had support from very educated people, that the dollar was doomed, at that time. that, in essence, the dollar game was over. This proved to be false, and US Bonds were the enormous investment for the next generation. This was a once in a lifetime phenomenon; it will not be repeated.

Sat, 04/23/2011 - 21:33 | 1200155 Confuchius
Confuchius's picture

China has been here for 4,600 years.

What would you cal long term, round eye?

Sun, 04/24/2011 - 12:13 | 1200977 RockyRacoon
RockyRacoon's picture

Well, yes.  It has been in the same geographic location for some time, to be sure.  But it has had quite a few political/social iterations.   The U. S. has not had the chance to be the evolutionary equivalent of China.  Neither nascent country would recognize the present state of their societies.

Sat, 04/23/2011 - 12:38 | 1199195 slaughterer
slaughterer's picture

We are actually buying as many dollars as we can at these bargain prices.  We are fading guys like Axel Merk--for the next few months.  We are not alone.

Sat, 04/23/2011 - 15:01 | 1199473 Popo
Popo's picture

You certainly aren't.    I know of a handful of funds that are long dollar in a big way right now.  

Long term, it's probably a bad play for obvious reasons.  But short term it's probably very smart.   

Sat, 04/23/2011 - 21:04 | 1200121 IQ 145
IQ 145's picture

 I gave up trying to be "the smartest person in the room" a long time ago. Risk/reward ratio. Similar to Strength/weight ratio in aircraft design, it's not "simple"; but it returns very good long term results.

Sat, 04/23/2011 - 12:44 | 1199204 Spalding_Smailes
Spalding_Smailes's picture

O.T. -


Has anyone seen Bruce Krasting™ , I still searching for the massive tsunami of inflation that he spoke about 4 months ago that was going to crash the U.S.A..... ? Just like Gonzo Lira™ talking about the weather now on his blog , what happened to this hyperinflation thingy , the epic credit crash ( Lehman / AIG Circa September 08 ) and subsequent printing by Benny and the inkjets has been " Priced In " .... Lol

Sat, 04/23/2011 - 12:49 | 1199219 Popo
Popo's picture

^^ Agree with this.  Selling "Imminence" is the cheap trick of the financial blogger.   Karl Denninger was preaching imminent doom almost a decade ago.  But we're still here.  

Yes, we're well and truly fucked.  But thinking you're on the cusp of change at any given time is often a suicidal trade.

As on the ball as Tyler is, he pulls the same trick all the time.  Extend and pretend is a far more effective game than most here realize.


Sat, 04/23/2011 - 12:56 | 1199237 Spalding_Smailes
Spalding_Smailes's picture

The Dollar could stay the reserve currency for another 10 / 20 / 50 years , the fiat game is not changing and China, India, Brazil, the E.U. like the way the global money game is played. 

Sat, 04/23/2011 - 21:06 | 1200124 IQ 145
IQ 145's picture

 I agree, particularly out to ten years. And that is why I find it so stressful to read the constant comments by people who believe the dollar is going to crash, next week; and so on. Stop bitching about the Comex, and get a clue; the Comext exists to give you lots and lots of free money; yes, FRNs, the things you're going to be spending at Christmas time. But a silver contract with $45000 in your account, and just wait and be pleased; that's the simplest instruction I've ever been able to anounce vis a vis commodity trading in thirty years.

Sat, 04/23/2011 - 12:54 | 1199238 topcallingtroll
topcallingtroll's picture

In a long enough timeline all fiat approaches zero, but we may never live to see it.

Personally i dont want to be shooting no zombies and eating ratburgers.

Sat, 04/23/2011 - 13:08 | 1199258 Spalding_Smailes
Spalding_Smailes's picture

I can't stay long , work .... Lol


Have a great Easter ...

I wonder if T. " David Koresh " Mosley thawed out the beef jerky for all the Seventh-Day Adventist Pepperoni Doomer Sect  that's coming by the bunker .... ?

Sat, 04/23/2011 - 13:38 | 1199338 tmosley
tmosley's picture

You want to start again, delivery boy?

Sat, 04/23/2011 - 14:10 | 1199386 Spalding_Smailes
Spalding_Smailes's picture

Sure, the last two weeks I invoiced over $3,000 in deliveries , oh boyyyy ( running CAT work for chrome plating is real Eazy E ).... And the printing work just keeps coming in Lol'


It's funny, you spoke about Kinko's and how everyone can go there for said printing needs. Price out a 27ft. x 6FT. four color banner from Stinko's, you will be paying 7 dollars a sq. ft. My cost, 90 cents a sq. ft., and I get it printed in Michigan Lol' I save my customers 40%, I make a killing, the American Way ....

All the doom is laughable ...

And to think, I'm my own boss and make my own hours, a win • win ..... Lol

Sat, 04/23/2011 - 14:18 | 1199415 Ricky Bobby
Ricky Bobby's picture

and don't forget the 7.00 per sockpuppett hour the SEIU is paying you.

Sat, 04/23/2011 - 17:33 | 1199735 DeadFred
DeadFred's picture

I thought they paid prevailing wage?

Sat, 04/23/2011 - 21:51 | 1200184 tmosley
tmosley's picture

Funny how you claim to be making all this money, but you still don't have the $50K you supposedly needed to start your little "hedge fund".  What's the hold up?

Oh yeah, you're a driver, and all drivers lie about how much money they make.  ALWAYS.  100%.

I have had friends who were drivers, and family, and not a one would tell you when they were losing money.

You should have had $50K months ago at the rate you have supposedly been raking it in, and all those successful "trades" should have only amplified that.  Yet here you are, still making deliveries to corrupt politicians and making "I'm with stupid" t-shirts bragging about how great you will be one day.

What a loser.  Can't even beat silver.

Sat, 04/23/2011 - 14:19 | 1199414 Ricky Bobby
Ricky Bobby's picture

He shows up on a holiday weekend so he doesn't have to get crushed by the relentless rise of silver.  

Sat, 04/23/2011 - 13:19 | 1199300 Idiot Savant
Idiot Savant's picture

Selling "Imminence" is the cheap trick of the financial blogger.

As on the ball as Tyler is, he pulls the same trick all the time.

Tyler is on the ball enough to know what sells - doom, right around the corner. He knows we'll extend and pretend longer than most expect, but this is, after all, all about profit and subscribers.

Sat, 04/23/2011 - 13:33 | 1199334 topcallingtroll
topcallingtroll's picture

Dude, i think tyler is smart enough to make more money than selling ad space to monex.

This is a labor of love.

Sat, 04/23/2011 - 15:01 | 1199478 Popo
Popo's picture

You're cute.

Sat, 04/23/2011 - 16:48 | 1199666 topcallingtroll
topcallingtroll's picture


Sat, 04/23/2011 - 21:16 | 1200132 IQ 145
IQ 145's picture

 In all the time I dealt with customers reps. in the Commodities markets I have had to remind myself constantly, if they actually knew anything, they would not be available to answer the phone. Tyler is definitely not smart enough to make money other than selling ad space; that's why he's doing it. Logic; it's a wonderful thing, if you're willing to use it; if you believe in Gurus, then you've lost it already.

Sat, 04/23/2011 - 14:25 | 1199421 Ricky Bobby
Ricky Bobby's picture

I would say most ZH's don't believe doom is right around the corner. But hey if you would have told me 10 years ago that a 6 old little girl would be scanned and then groped in the name of state security well... maybe not around the corner but I think I see a trend.

Sat, 04/23/2011 - 14:59 | 1199465 JR
JR's picture

As well as shocking patdowns at the airport terminal, our society now moves to beatdowns at McDonald’s.  Taken off by Google’s PC YouTube and popped back on by other sites - ultimately linked from the Drudge Report - this is one of the more frightening videos I’ve seen and because of the racial content, it’s not likely to show up on Huffington. Watch while men stand idly by in an environment of Ronald McDonald laughter, and a male screams for the female perpetrators to run because the police are coming... while the victim lies unattended and goes into convulsions…

Shock video: Another McDonald’s Beatdown :

"Violence in another McDonald's almost kills customer"

"Here is another fine example of the trend of violence in fast food restaurants. Two females beating the hell out of a patron, while several employees stand by and watch...

"The two females exit, then re-enter the store to continue the beating…"

What does this tell you about Google... and YouTube?

Sat, 04/23/2011 - 15:36 | 1199533 JR
JR's picture

P.S.  I see after the Drudge accusation that the video is back on YouTube but you’ve got to “flag” that you are “18 or older by signing in or signing up.”  What a joke: extreme violence is okay for the kiddies on YouTube but a black on white crime may be too much.

Here's how the scene it's described on YouTube:

"Two black women attack white women at a McDonald's restaurant in Baltimore while everyone except an old lady stands to the side and watches..."

Sat, 04/23/2011 - 23:49 | 1200292 blunderdog
blunderdog's picture

Well it sure is a good thing someone's helping those poor fuckers pay for their cellphones, or this important story might never have made it to the digital-screen.

Sat, 04/23/2011 - 15:15 | 1199488 Popo
Popo's picture

> "I would say most ZH's don't believe doom is right around the corner."

Gotta disagree with you on that one.   I think most ZH'ers think collapse is imminent.  And to a large extent, they think collapse is "right around the corner" because Tyler spins his blog that way.  The threat of imminent doom brings pageviews like little else.  Most readers here have little understanding of debt markets, and how debt markets influence the Fed.   Most ZH'ers *do* have a good understanding of inflation, but little understanding of the counterweights which force interest rates up when inflationary expectations rise.

While few would argue against obvious rising inflation -- I think few ZH'ers can imagine 15-20% interest rates.   When I ask gold bugs "why" interest rates have been that high in the past, they tend to dislike their own answers.    Yes, the long term trend for the dollar is down.  But betting on imminent collapse is an extraordinarily high-risk play.  And I think that's exactly the side of the trade that many ZH'ers are on.


Sat, 04/23/2011 - 16:13 | 1199597 Ricky Bobby
Ricky Bobby's picture

Owning gold is not betting on imminent collapse.

Sat, 04/23/2011 - 16:20 | 1199614 FreedomGuy
FreedomGuy's picture

I don't think most rational people here are betting on imminent collapse, including me. What I (and others?)think is that a sudden collapse is possible, imminent or future. Many articles here have convinced me of how rapidly things could unwind. Short of that a gradual collapse is not only possible but probable. Last, a gradual long term devaluation is all but certain based on history and future obligations. These levels of belief all have the same solution: Own metals. You may get your money back quickly, gradually or over the longer term, but it's a pretty good bet. To that you add the insurance value against a financial disaster the same way you buy auto or home insurance. You don't believe in an imminent car accident or home disaster but you insure against it. Furthermore, if you live in a hurricane zone you know the probability of a disaster is high over time...could be sooner, could be later, but likely.

I cannot speak for others but I would guess many are like me. Short term traders will have a differently more gambler oriented approach.

Sat, 04/23/2011 - 19:01 | 1199908 Dan Alter
Dan Alter's picture

"The threat of imminent doom brings page views like little else."

I beg to differ, we only talk about the threat of maybe dooms, but a real easily verified in public doom threat is too much for everyone.  Here is an imminent threat that can easily verified, yet not a question or comment from any stranger in over a million hits over five years. I agreed from the beginning to answer anyone's questions about it. (What is the secret way to post links?)

Thus by public measurement, the present Human race dives into denial when faced with a real verifiable total threat, even though there is a possible way to prevent it.


Sun, 04/24/2011 - 03:14 | 1200405 Creed
Creed's picture

And to a large extent, they think collapse is "right around the corner" because Tyler spins his blog that way.



BULLSHIT wake up and smell the coffee.


Fall 2008- 3 hours til economic meltdown at the rate funds were leaving the system.


People think collapse is right around the corner because it almost happened in recent memory.


Sat, 04/23/2011 - 15:58 | 1199574 Calmyourself
Calmyourself's picture

Said before, this will last much longer and be more painful than most imagine. It will not just poof, collapse, too many are bought into the system and will do anything to extend it, including many here. However, a valid perspective is the image of that little girl being assaulted for security theater and the training and acculturation of the sheep. The security state rising up about us is developing for a reason, giving clues perhaps to the PTB time horizon. Internet is next..

Sat, 04/23/2011 - 19:19 | 1199939 DosZap
DosZap's picture

I would say most ZH's don't believe doom is right around the corner


Hell no, it's here now, and it just keeps growing like a cancer.

You never know it's there till it hurts, then it's too late.

Stop and think of the things 10yrs ago you could say, and do, without worrying about jail, fines, or being labeled permanently by the system, and put on a list.

A crapload.

Sat, 04/23/2011 - 15:25 | 1199520 Canucklehead
Canucklehead's picture

Page views is all any advertiser is interested in.  Open up the content and let everyone speak their mind and you will get page views.  Unfettered expressions of ignorance by graphics designers are greatly admired and they tend to spill into subsequent articles.

Sat, 04/23/2011 - 12:57 | 1199245 topcallingtroll
topcallingtroll's picture

Nice to see you back spalding.

You missed the huge flame war as the troll was the only one holding the fort, that the end of qe2 was likely not a big deal in terms of abrupt yield changes.

Sat, 04/23/2011 - 13:09 | 1199268 Spalding_Smailes
Spalding_Smailes's picture

Some playa' will always buy the dip ..... It's hard battling said doomers, it's like the starry-eyed housing flippers, the day will come when Silver crashes 50% in one day then they will all say they sold last week ...... Lol

Sat, 04/23/2011 - 13:16 | 1199292 topcallingtroll
topcallingtroll's picture

Yeah i agree

But i am afraid it will be 150 to 75 if things get really hysterical.

Sat, 04/23/2011 - 13:26 | 1199314 Spalding_Smailes
Spalding_Smailes's picture

I think its going to happen the second Uncle Ben tells the market " No more QE needed " & gives an outlook on the rates uptick ..... 

How much of the toxic waste has been taken off the banks books ? And if the floor has been set Uncle Ben can do what he wants with rates. The primary banks and uncle ben are the only guys that really know whats up with the shadow banking liabilities and if the worst is over ... It's up , up and away with rates and oil and the commodity complex will crash washing away said cost • push inflation expectations, a win / win

Sat, 04/23/2011 - 14:43 | 1199446 WineSorbet
WineSorbet's picture

It's nice to see you two circle jerk again.

Sat, 04/23/2011 - 16:33 | 1199641 Al Gorerhythm
Al Gorerhythm's picture

It's a real love in. Two fools met.

Sat, 04/23/2011 - 21:53 | 1200187 tmosley
tmosley's picture

And both were parted from their money.  Down the rabbit hole it when, and neither had any idea how or why.  They thought it would be smart to keep doing the same thing over and over, continuously getting the same result, thinking that one day they'd be rich.

Sat, 04/23/2011 - 13:02 | 1199246 plocequ1
plocequ1's picture

The End game is here. Go to church Easter Sunday and receive communion. Drink the Blood of Christ and eat his Flesh.

Sat, 04/23/2011 - 13:06 | 1199261 topcallingtroll
topcallingtroll's picture

The only thing you need now is a cardboard sandwich sign and a busy street corner!

Hey ploc.

Sat, 04/23/2011 - 13:45 | 1199349 Problem Is
Problem Is's picture

"The End game is here. Go to church Easter Sunday and receive communion. Drink the Blood of Christ and eat his Flesh."

Have a wafer from pedophile hands, sip some wine out of a silver challis 100 others have drank out of and...

Give the Pope, who worships GOLD, a bunch of your Bernank-e-Bucks...

You are <SAVED>
Move along, nothing else to see here at St. Bene-dick's...

Sat, 04/23/2011 - 14:05 | 1199391 topcallingtroll
topcallingtroll's picture

I still love you ploc!

Sat, 04/23/2011 - 15:22 | 1199517 Popo
Popo's picture

Fucking cannibal

Sat, 04/23/2011 - 19:49 | 1199996 Hulk
Hulk's picture

May 21st is the end of the world. I'm booking profits on the 6th and taking a two week, "pre-rapture", vacation...

Sat, 04/23/2011 - 13:03 | 1199254 r101958
r101958's picture

Avid deflationistas rearing your head again? Think the path of least resistance. Deflation is not that path and good luck with your bet that the pols will take it.

Sat, 04/23/2011 - 13:08 | 1199270 topcallingtroll
topcallingtroll's picture

I think we have a deflationary counter trend and a change in inflationary sentiment for the intermediate term. Who really knows the long term?

Sat, 04/23/2011 - 13:24 | 1199306 trav7777
trav7777's picture

I know long term but I can't tell you in terms of dollars.

The US game will only come to an end when there is a mass repudiation of the FRN.  No sooner, no later.

That's how it always happens.  Nobody can really predict the moment such a thing dawns to collective Point of Recognition.

The Roman Empire collapsed over a far longer period than it took to read about the collapse.  This error of assuming the few minutes it takes to read the Wiki on Roman Empire Collapse is equal to the time it took for it to actually happen is a common one.

Sat, 04/23/2011 - 21:38 | 1200168 Confuchius
Confuchius's picture

They said you were gone to inspect the Fukushima reactors.

I guess the little robot toys beat you to it.

Sat, 04/23/2011 - 13:07 | 1199271 Silver Bug
Silver Bug's picture

The US is caught in a catch 22, they can't tighten rates, they can't stop QE. QE to infinity is assured.

Sat, 04/23/2011 - 13:36 | 1199299 Spalding_Smailes
Spalding_Smailes's picture

They can tighten and QE is ovaaa' ..... Manufacturing is booming in Chicago aaaand, GE, Ford, Apple, Yum Brands, Starbux, Google, Coke, Microsoft, ect ..... Are all hitting overdrive now ..... The Fortune 500 I.E. the backbone of our 13 trillion dollar economy are expanding their global sales ....

Sat, 04/23/2011 - 19:34 | 1199972 DosZap
DosZap's picture

Spalding, that's the problem, OVERSEAS.

We're still losing 400K jobs here at  a whack, and 59% of the population is receiving some sort of government handout funds.

We are spending in a ratio of  8-1 more than tax receipts, and the short term debt is 14+t, and the interest alone is 800b a year.(lest we forget the 160T in unfunded liabilities, and approx 160 T in derivatives).

There will be a QE 3, just by another name, and just like TARP, it will be done, must be done,or we perish.

We cannot lower rates, we cannot raise rates,we cannot cut off Welfare, or UE,SS,MC, or MA.

(Unless they want a war).

In short, the Fed is screwed and so are we.

Congress will never know it is happening, nor will 98% of Americans.

White  House to the Fed, to the Bankstas, and that's it.

Just like the man said, until the people, or countries, or a combo decide that the dollar is worthless,this outhouse economy goes on....then it ends.

When, no one knows, but end it will and soon.

Sat, 04/23/2011 - 21:30 | 1200151 IQ 145
IQ 145's picture

 An entertainment brought to you by a person who has all their capital in money market funds; and simple cannot afford to believe that Tinkerbell cannot fly.

Sat, 04/23/2011 - 21:57 | 1200189 tmosley
tmosley's picture

Funny how you think the direct targets of POMO would somehow remain unaffected by the end of QE, while indirect targets will go down hard.

But then, the shoeshine boy is always wrong, isn't he?

Sat, 04/23/2011 - 13:18 | 1199287 falak pema
falak pema's picture

Nope, no deflation.  The world is stuck with a 100 T USD deficit crunch generated by US led shenanigans, bought into by EU/Jap/EM banks. So they'll COLLECTIVELY print paper until they can get the world economy out of the USD clutches. That could take time...maybe ten years. The USD will slide down...Main street will take a blood bath in USA, but the world monetary system will stay operable and we will avoid 1929...WHY? 'Cos there is no currency to replace it. Humble pie for USA as the economy slides down to 50% of actual nominal value (WS = 6000 over many years, stagflation doldrums; in other words but via USD deflation). But USA does not go Argentina or Weimar...That's the Oligarchy's game plan.

They will stick to it. Will Main Street USA/EU buy it? Time will tell.

It's up to the next generation. Not this one of boomers+ post boomers now in power.

Sat, 04/23/2011 - 13:24 | 1199312 topcallingtroll
topcallingtroll's picture

There is a big difference between real obligations such as a current bond payment and theoretical future promises.

We owe 14 trillion in bonds.

We have estimated our future promises to total 200 trillion.

A vague promise is not a legal obligation.

There is no chance that people will receive those future projected benefits and it is merely a matter of time when those promises of future benefits are broken.

Gota go. C u later.

Sat, 04/23/2011 - 13:35 | 1199332 Spalding_Smailes
Spalding_Smailes's picture

The big boys always have a plan , idea, solution .....


........... " One of Shiller’s ideas is that the federal government should issue a new kind of security that would pay quarterly dividends based on the nation’s gross domestic product (GDP). More specifically, each security would entitle its owner to one-trillionth of America’s gross domestic product (GDP). These “Trills” would be perpetual, like common stock in a private company, and would be backed by the government’s full faith and credit.

I will leave to others to argue the pros and cons of Trills. What caught my attention was Shiller’s estimate of how much they would be worth. With GDP around $14 trillion, each Trill would pay about $14 in annual dividends this year. That dividend would then increase (or, of course, decrease) as the economy grows (or contracts) in the future. " ............................

Sat, 04/23/2011 - 21:32 | 1200154 IQ 145
IQ 145's picture

 And the "not so big boys"; always have an illusion. It can't happen here. it won't happen here. A miracle will happen. Two miracles will happen. The dollar, and your personal wealth are going in the t oilet; get used t o it.

Sat, 04/23/2011 - 13:38 | 1199345 falak pema
falak pema's picture

ever heard of financial momentum...its like in heads downhill...going back up with dead weight on your back is a bitch, unless you've INVENTED new spark plugs every body else (the market) is already wagering you are at the Bottom of the hill.

Vague promise did you say?? Ask Mexico/Brazil in the 70's. Ask Argentina in 2002.

The day the market can see a solution to USD reserve currency...all bets are off on playing phony money printing pat-ball with the FED!

Sat, 04/23/2011 - 13:29 | 1199318 r101958
r101958's picture

Well said falak. I will add that it will also lead to something closer to wage parity over time and that just might bring some jobs back. A lot of inflation to go before that happens though.

Sat, 04/23/2011 - 13:33 | 1199325 Re-Discovery
Re-Discovery's picture

I am amazed.  Saw yesterday where you (et. al?) took a well-deserved day off.  My 'Silver' party . . . I mean Good Friday observance . . . . went  late last night and I wake up to numerous new, pertinent timely posts.  You (guys?) are like Edmund Burke, Thomas Paine, Sam Adams, Ben Franklin and Paul Revere all rolled into one for the coming new era.

I can't read and think through info faster than you post.  I might need to slow my drinking (which could be another positive to visiting this site.)  Thanks (and yes, I need to kick in and subscribe/comntribute.)

Sat, 04/23/2011 - 13:35 | 1199329 JR
JR's picture

Will the financial dictators that strangled the British Empire crush America as well?

The British financed World War I by taking out the biggest loan in banking history. Banker financing of WWII – primarily at the Fed via printed inflation -  left most of Europe destroyed , i.e., England, France, Germany Italy, Japan.

In the aftermath of WWII, British soldiers returned to an empire where the sun never set to a destroyed world power and a socialist labor government – the consequences of economic central planning by the international bankers whose control of war has shifted to control of the peace.

Is America soon to desist as the world’s sole superpower?

V.C. Vickers resigned his appointment after ten years as a governor of the Bank of England in 1919 to fight the monetary system that was destroying England. In 1926 he wrote, I “felt it my duty to explain to the (Rothschild-controlled) Governor of the Bank of England, Mr. Montagu Norman, that ‘henceforth I was going to fight him…and the Bank of England policy until I died.”  

In 1939 just before his death he wrote in Economic Tribulation to “the bankers of this country…who manage the machinery of money and credit”:

 “The free vote of the people no longer insures democratic government except in name, and the widespread influence of money, of finance, and of ‘big business,’ and, above all, of international finance with its impartial patriotism, not only dominates governmental policy, both national and international, and affects the lives and livelihood of the people, but has very nearly succeeded in converting our boasted democracy into what is virtually a financial dictatorship…

“Do the people of this country want such a procedure to continue?

“We are prepared to admit that without honest and skilled leadership, democratic rule is akin to mob law; but are we prepared to entrust the future of democracy to sectional influences governed and controlled by those few who still govern and control our capital, our money, and capital’s international finance?”

Of the six appeals he made to the bankers, here is number 6:

“That the true wealth of the nation does not consist in the hoarded gold of the Bank of England, nor in the book-entries standing to the credit of merchant bankers.  The wealth of the nation lies in its capacity to produce goods and its capacity to consume goods, and its capacity to exchange its surplus goods for necessary importations from other countries.  If the City of London, with its banks, its gold, banknotes, and its money, were suddenly to sink into the bowels of the earth and be no more, the country would go on, and, with incredible rapidity, would recover from the shock and build a new and perhaps a better City.  But if the country vanished, the City of London would be dead for ever.  In the last resort, production and consumption could continue without money; but money would be useless dross without production and consumption

Sat, 04/23/2011 - 13:38 | 1199336 Josh Randall
Josh Randall's picture

Well you can't throw stones at too many of these doom and gloom Bloggers because they may be thinking that fundamentals still apply. When you have the printing press of the Bernanke, inept Leadership fiscally and politically, and a dumbed down neutered public, then things can be prolonged or papered over.

We haven't seen a long hot summer of $6-7 gas in the US yet, it should snowball from there. I'm a Doomer but am calling my breakdown moment for summer 2012

Sat, 04/23/2011 - 13:54 | 1199366 Re-Discovery
Re-Discovery's picture

Sick of the term "Doomers" (even though many self describe.)  The Catholic church (read modern day central bank in this analogy) encouraged a "Flat Earth" understanding of the world in the face of over-whelming evidence to the contrary to maintain dominance and control.  They burned/ruined people at the stake 'heretics' who did not conform (whither poor Galileo.)

Were those who ushered in the age of discovery 'Doomers'?  Or were they visionaries?  We need new diction to explain what is going on.  QE is really CD = currency devaluation or MP = Money Printing.  Doomer should be replaced by New Money Prophets or something better (suggestions welcome.)

As this unfolds, you watch and see, the diction will change.




Sat, 04/23/2011 - 14:54 | 1199464 Rogerwilco
Rogerwilco's picture

Your cartoon depiction of history is misguided at best. Did you know that Galileo was given an award by the Jesuits for his scientific efforts? He got into trouble with the church hierarchy because the Medicis, his patrons, refused to donate more money to the Vatican.

The Catholic church has been around long enough that no matter what people say about it, it's probably true. To say it's 100% evil or that it had no positive influences is just wrong.

Sat, 04/23/2011 - 16:13 | 1199598 Re-Discovery
Re-Discovery's picture

Sensitive much?

Who said it was 100% evil?  I just stated obvious that it was THE power of medeival Europe that did not want its status quo changed.  I don't need to recount all of the history of that period (to most of the intelligent ZH'ers) for the analogy to hold up with today's 'money masters'.  Galileo's trial and the reasons for it are a history I would encourage you to read.

Personally, I believe the Catholic church is a much better agent of change for good now than it was then, and, as such, I am supportive.

Back then, not so much.  (My personal favorites were the Medici Popes -- the sole recommending factor of one to ascension was his experince as a tax collector for the Medici -- who routinely kept harems, fathered illegitimate children, and waged wars of conquest.)


Sat, 04/23/2011 - 16:18 | 1199610 Re-Discovery
Re-Discovery's picture

aaannndd . . . As you appear to be a fan of the Jesuits, I would also encoyrage you to read a history of their travails AGAINST the far more numerous remainder of the Catholic Church.  It is largely through their struggles -- which included many Jesuits excommunicated and worse -- that the church was able to reform itself from within.

Sun, 04/24/2011 - 03:38 | 1200415 Creed
Creed's picture

The Catholic church has been around long enough that no matter what people say about it, it's probably true. To say it's 100% evil or that it had no positive influences is just wrong.


Surely you mean the Roman Catholic Church? Because there's no such thing as a catholic, or universal church.


The RCC is the embodiment of religious evil masquerading as good in this world.

Read a little missive called the Babylon Mystery Religion.

The RCC is steeped in murder & pederasty from its founding.

Although I know there are "decent" people wrapped up in that church it's pretty obvious none of them give a shit about what the Bible says; the cognitive dissonance drives away anyone with a real hunger for God leaving only religious people in its pews.

Religion is made by man, welcome to the Roman Catholic Church.

Mon, 04/25/2011 - 02:52 | 1202502 Oh regional Indian
Oh regional Indian's picture

Well said Creed.

Doubters can read this for some enlightenment.

Quite the zinger, I'll tell you that.


Sat, 04/23/2011 - 16:35 | 1199647 Josh Randall
Josh Randall's picture

New diction/paradigm suits me fine - as long as eloquent language doesn't paper over logic and market fundamentals like a Bernanke Kinkos copy machine spree

Sat, 04/23/2011 - 19:04 | 1199912 Re-Discovery
Re-Discovery's picture

That would be the whole point.  Plain wording meant to clarify rather than obscure.

Sun, 04/24/2011 - 18:38 | 1201762 RockyRacoon
RockyRacoon's picture

I can go with "DOOM".  No problem.  Look up the daffynition.

It will be a judgement, an end, and it won't be pretty.

I am convinced the prophets of doom have to be taken seriously.

Maurice Strong

Sun, 04/24/2011 - 23:37 | 1202246 Re-Discovery
Re-Discovery's picture

OK.  I am a bit more optimistic about the ultimate outcome, but OK, I see your point.

Sat, 04/23/2011 - 13:36 | 1199340 buzlightening
buzlightening's picture

Dollar a flame; burning to ashes.  Only smoke filled rooms left in the suffocating bottom floor of fiat paper pulp fiction crashing to zero.  If it burns it's not real money.  Only safe haven left;  real money gold/silver in your hands.  100% possession among the bankster fraudsters will be the law among these lawless rat basturds.  You know it now and protect yourself, or know it later when the truth is self evident; you burning up in the paper fiat ponzi shit house of perpetual lies. 

Sat, 04/23/2011 - 13:42 | 1199354 Wayne Jett
Wayne Jett's picture

Attempting to fathom the "moves" of the Fed is a mental exercise which runs you in ever smaller and tighter circles, with no real benefit except to prove again and again the seeming irrationality of what the Fed does. The Fed is not Ben Bernanke's personal play-pen. It is the tool of the mega-oligarchs, who communicate their instructions. BB and/or FRBNY carries out the instructions and BB does whatever public rationalization he thinks will best serve his interests in remaining in office. Indications are that the end-game of the mega-oligarchs is at hand so far as continuation of the U. S. republic is concerned.

Sat, 04/23/2011 - 14:25 | 1199422 bothsidesnow
bothsidesnow's picture

Great analysis of possible Fed monetary policy.

Hussman is a smart guy. The Fed cannot and will not allow massive inflation to occur remember they have a dual mandate inflation and employment. Eurozone unemployment and inflation rate is higher than US so why is the Euro rising - makes no sense and it will turn here soon. Inflation in Eurozone is higher because Trichet raised rates without reducing the monetray base so inflation has to occur in the Eurozone. 

Yes some of the QE 2 money went into a rise in speculative assets it had to. But some of the money is sitting their as cash reserves. Why did the Fed expand the list of institutions elegible for reverse repos? So they can spread the pain around when it comes time to contract the monetary base. The Fed and the goverment bailed the banks out now it's time for the banks to bail out the Fed and the government. The market knows what is going to happen that's why you see bank stocks underperforming.

Also look at this silver post.

Markets are chaotic not deterministic and the patterns repeat at different scales. Read Chaos Theory it's how the world works.

You will see $50 or more on Ag soon so whoever the big bag holder from 1980 can get out.

Then you will see a decline similar to 2006. 

I know, I know you all bought Ag at $5. Great continue to hold but for all the late comers be careful at this level the big bet on July $25 silver will come true. Hedge funds have enough capital to manipulate the markets.

Junk me now libretarian haters!


Sat, 04/23/2011 - 20:14 | 1200045 GOSPLAN HERO
GOSPLAN HERO's picture

Silver, decline? 

This is not 1980, comrade.


Sat, 04/23/2011 - 13:51 | 1199361 Caviar Emptor
Caviar Emptor's picture

Seems like many are back on board the Titanic, thinking that even an ice burg can't sink this massive, unsinkable ship. But hubris had much to do with the Titanic and is part of the picture now with the dollar. Wish I could be as optimistic as yu guys in the power of the Fed, the printing press, Wall Street and the rest. But they're on the run and have been pretty much non-stop since 2007. They thought sub-prime was a blip. They never expected the economy we now have. And for 40 years they never really planned at all, basing their policies on a pipe dream that "Deficits don't matter" (Cheney's own words as recently as 2002). Recklessness in things that matter usually gets repaid. The imbalances out there are just too big. And already many countries have voted quietly with their feet. Now that it's taken hold, look for the trend to continue. Only PMs can protect you

Sat, 04/23/2011 - 13:57 | 1199371 buzlightening
buzlightening's picture

Hi! My name is bentrod burnokio.  My solution to the strong dollar policy is wait until it's burning to the ground;  pour more gas on it. My lunatic solution!!    Hmmmmmmm? Gas prices going up! Will need key stroke some more debt based currency dollars to purchase more gas.  We need pour this whole lunatic solution of more debt based currency over the whole strong burning dollar policy.  Burning the nations reserve currency entirely to zero, and hardly any in ameriCON'd will notice.  

Sat, 04/23/2011 - 13:57 | 1199372 Jack Sheet
Jack Sheet's picture

Sorry don't have the time to listen to interviews lasting longer than 10 mins. Hope it was good.

Sat, 04/23/2011 - 14:48 | 1199451 riley martini
riley martini's picture

 The (Fascist of Omaha) Warren Buffet has been over in India and China telling all their Citizen not to invest in ang US Dollar denomated assets . The same week Buffet cashed out his kick back fraud from Goldman Sachs . Fascist tratiors like Buffet defraud the American citizen to point of a currency colaspe and stab them in the back over seas.

Sun, 04/24/2011 - 18:44 | 1201778 RockyRacoon
RockyRacoon's picture

You got sources on that?  I missed it.

I mean really, you can't just toss out red meat like that without some links.

Sat, 04/23/2011 - 14:53 | 1199461 Atomizer
Atomizer's picture

Kicking the can down the road, green shoots, stimulus programs, new greener taxpayer sponsored incentive's, building high speed railroads & bridges to no where.

The teleprompter dialog ensues; Let me be clear, our continued efforts in fleecing the US peasants will continue for the future development of our country and third world developing nations.... and the beat goes on..

An old video covering the scenario for the party bag coming home to roost. Sam I am.. LOL.

Another US Government terrorist alert, this end of the world crisis will hit the TV airwaves in 3,2,1.. Wash, rinse and repeat exercise. Think about the debt ceiling flea circus debate aka world financial crisis about too unfold.

Sat, 04/23/2011 - 15:10 | 1199487 speculator
speculator's picture

Buy the dollar. Nobody else is. This is probably a great time to be long dollars vs. EUR, CAD, AUD, and even CHF. Traders have been overwhelmingly bearish on dollars for months now. This is typically the set-up for a hard dollar rally and sell-off in stocks and commodities. When something seems like the obvious, no-brainer play to most people, the better move is usually the opposite, no matter how strong the fundamentals seem for going with the flow. Lots on this here:

Sat, 04/23/2011 - 15:42 | 1199539 Atomizer
Atomizer's picture

Sure, go long on the dollar. In the end, it will be bought pennies on the dollar thru the IMF. Can you clarify your facts?

Sat, 04/23/2011 - 15:56 | 1199576 bob_dabolina
bob_dabolina's picture

I think he is talking about a short-term trade, not a long-term investment.

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