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I don't read that as Rosie being as negative on gold...?
Rosenberg sees a deflationary-driven event precipitating the move in gold lower
In 1980 COMEX increased margins on precious metals that broke the Hunts and enriched Armand Hammer and Director shorts by driving silver down -50% in four days
The Hunts got a billion dollar credit line from Volcker to prevent the destutction of Wall Street Banks
They later declared bankruptcy
FYI, Bernanke can't be impeached. But that doesn't mean he can't go to jail for fraud and gross negligence.
Bernanke will not go to jail for fraud nor gross negligence. You seem to forget my friend that this is Amerika!!
We can always hope.
Yeah, we tried hope... aka Hopey McChange...
Let's try facts and reality...
He could be subpoenaed by a Federal grand jury...
Forced resignation may be the best we can get. What BB said in 2009 (although Chris Martenson pointed out that monetization was taking place in August 2009) most likely is not perjury since lying under oath is usually confined to what happened in the past, not what he claimed he would NEVER do in the future.
He also said he would throw money out of helicopters (as he is doing but only into the airducts of Primary Dealers) to stop deflation. Problem is, he is completely clueless.
Ben would make a very good Wal-Mart greeter. He has a kind smile and is able to say the same thing over and over very well.
Perjury would apply if Bernanke stated that he would never monetize the debt but documents revealed that that is precisley what he planned.
There was a POMO the very same day that Bernanke testified. If it's monetization now, it was monetization then, too.
Ben would make a great Robosigner. He would be signing documents he doesn't understand to benefit big banks just like he is now.
Classic...Analogy of the week.
Bennie IS Rocket Man:"And all this science I don't understand, It's just my job five days a week..."
Ummm... as far as I know, Bernanke, like Greenspin before him, has absolute immunity from the consequences of any of his actions, by being a director of the BIS.
0 is President and UN Security Council, BSB Fed Chair and BIS Director
Our Constitution Article I Section 9 clearly states:
No Title of Nobility shall be granted by the United States: And no Person holding any Office of Profit or Trust under them, shall, without the Consent of the Congress, accept of any present, Emolument, Office, or Title, of any kind whatever, from any King, Prince, or foreign State.
The Chairman of the Fed is appointed by the President for a 14 year term, but can be impeached by the House of Representatives and thereafter tried by the Senate. In the past, there have been several attempts to impeach officers of the Fed. http://en.wikipedia.org/wiki/Impeach..._Reserve_Board The most recent attempt was against Chairman Paul Volcker in 1985 and successive years.
There was an attempt, but that would be challenged on a constitutional basis. The Federal Reserve Act makes no provisions for removal of Bernanke.
Either the Federal Reserve is accountable to Congress as they claim,
or it is neither Federal nor a Reserve, but a foreign power controlling US
Not possible to have it both ways
So when will Comgress do its job?
So when will Congress do its job with a thorough audit and perjury impeachments of deliberate financial frauds decimating Amerika?
looks like Ben might be teaching in the near future? I'm not sure which job he is less qualified for.
By the Peter Principle, the job he is less qualified for is the one he has now.
Fair enough....but look at Rubin.
Just saying. He won't go to jail....so where else would he go?
Gas pump attendant at "South of the Border" in his native South Carolina.
Robert "What Me Worry About Insider Trading at Citi" Rubin:A Classic Example of Crony Oligarchy Capitalism.
Always failing upward from one spectacular fuck up to the next...
He is a fine choice for teaching the course on how being an expert on the Great Depression 1929-WW2 allowed him to produce a Greater Depression...call it IronyEconomics 101..at Princeton of course, home of Woodrow Wilson, the president on whose watch allowed the Jeckyll Island coup d'etat.
Not negative on gold, just questioning whether the FED can successfully reflate. The market has become a paper chase once again in the past 2 months, which is all well and good. But there seems to be an overwhelming complacency on the part of market participants when it comes to believing the FED and the ECB can bail out everyone ad nauseum. No.
There are constraints to monetizing the debt. There are negative feedback loops in the form of higher commodities prices and political reactions. It is not a one-way ticket to ride. The debt burden is unsustainable, and it must be addressed. Further QE only exacerbates the crisis. The only answer is restructuring and it will be done. Infinite USD inflation will not be allowed to happen. The central banks are not driving the bus here. A quick perusal of history demonstrates that when it comes to a showdown between the markets and the central banks, the need for market rebalancing will win out in the end. In the short term, sure the central banks can play balance sheet games, pretend to inflate, and drive assets higher. But there is a point at which the debt will not be rolled over, and haircuts must be taken, whether by the bondholders or the taxpayers. Either way, it is deflationary. Today's riots in the UK will become the norm in the age of austerity. Coming soon to a theater near you.
There are negative feedback loops in the form of higher commodities prices and political reactions.
Nice post, I agree. There are a number of global forces aligned against QEII:
China - not at all happy to see their treasury holdings devalued
Other BRICs - not happy to see someone confront their mercantilist ways
Europe - strong Euro hurts them, outliers are going down.
Oil - $100 oil spells our doom, the economy cannot stand this shock
Commodities - gold is not going to "behave" during this Bennie Helicopter ride
Food - yes, let's make the poor really poor by increasing their living costs substantially
QEII was/is ill-considered and will be a disaster. At the same time the global trade imbalances cannot be maintained, China cannot take every good job in the world. Bennie has taken his shot and the world has said no thanks.
IMHO, we are close to an impasse. We in the US will need to decide if we put our house in order or let the bankers run wild. As many have said, this will not end well.
Not negative on gold, just questioning whether the FED can successfully reflate
The Fed did not reflate in real lasting terms from 1929 to 1959, how could they now?
It took Irving Fisher 4 years to figure out debt deflation after the 1929 plateau of permanent prosperity
Moses, Vedas, Zoraster and the Austrians knew it the thousands of prior years they banned usury
We have ERU about to implode, the Deficit Commission Panel cutting Medicare and Social Security and gold down 40 bucks in a day, with Alex Jones advertising Gold Specials below market price
Who are we to believe, our own eyes and account statements, or mass media voices?
I find it curious that the following events have all transpired over the past several days - as the US needs to sell more 30 year bonds. If you watch corrrelations - 30 year bond futures dump as the dollar is rallying.
I like Rosenberg... But, I'm getting a little tired of comments like "may well have been a watershed event". My headache when I woke up this morning may well have been terminal brain cancer.
Why is he even wasting his breath on what Cramer said yesterday?
Rosenberg and Cramer eat from the same table each day.They both have vested interests in keeping current system alive.They will talk their own book with their last breath.
Any why the love affair with that windbag Cashin on ZH?...that guy is the system,years of pumping on CNBC every morning and now he is worried?...fuck him.
Yea the article is based upon Cramers comments? I see that and turn off.
With President Clinton, we established the precedent that "who cares if he's lying, we like the job he's doing." Is it any surprise that no one (in the mainstream) cares if Bernanke is lying or not?
Bernanke wasn't "lying", per se. He just "forgot" to put the answer in the proper context.
What he meant to say was "as of this microsecond, we are not going to monetize the debt. However, should conditions warrant, we reserve the right to do whatever the fuck we want, and you can't stop us. Neener Neener Neener."
Rosie is dead on fundamentally - but unfortunately - fundamentals are really for buy and holders. He's been bearish on the world as the market's have gone from March 09 lows to current levels. I'm not sure what value he's adding - given that view - I find his anti-wall st. columns entertaining and thought provoking. I view him as a barometer. If he get's bullish....that's a signal.
Rosenberg is an economist, not a trader. And he is spot-on in identifying the fundamental issues which plague this "recovery." The recovery will not begin until the debt burden is addressed. Period. Riots are part of the healing process. Rosenberg is not going to turn bullish anytime soon. There is no reason to. That is a separate question from whether prices go up or down in dollars, euros, or yen.
In this environment, it is vital to know how to play the currency markets or to know how to gamble with ETFs if you want to preserve your debt-money wealth during the race to the bottom. There aren't enough PM's to go around for everyone to buy insurance. These policies are ugly for 98% of the population. Think about who benefits from inflation followed by deflation.
True, what the hell do 'fundamentals' matter when we're dealing with people who change the rules mid play if they dont like what theyre seeing?
Where are all the goldbugs today? Hot knife though butter, $1500/oz, USD toilet paper, etc., etc.
Could it be we're in for a rerun of Q4 2008? Nuthin' says lovin' like DXY in the oven, and Ber-nan-ke does it best!
I dont know where all the gold bugs are. Just like I dont know where all the '36,000 DOW' stock pumper monkeys are either. Seems suddenly everyone is rather quiet.
They are all getting arse raped by the markets.
Hmm looks like the stock bulls and basically everyone else is also getting ass raped too!
Hmm Bennie, give me another!
we're here... just wait a little longer....
Not sure about the rest of them but I'm here... been kind of quiet lately though... to busy counting profits (>100% in 12 mths) on my PM Miners Fund.
Missed the boat did we... life's a bitch (my first bitch on ZH), so they say!
Man, I get this feeling the next several months are going to be kind of nuts
No one is talking much about FUEL prices either, which just rocketed up here to $3.40/diesel...just let that go up another $1 and the country shuts down.
Nevermind the poor crop warning just out this morning too, while everyone is fixated on gold and bullshit stocks and ridiculous bonds.
Oh, some people are talking about it. Inflation + Currency Wars + Euro Debt Problems (again) + US Financial Troubles seems like recipe for trouble.
China is delevering right now while the West continues to pile it on. Which strategy do you think will win?
China in Geithners face daily now, the Gaijin has no chance! Again with a trade surplus, raising rates, deleveraging, thats not what Timmah told them to do!
I see market manipulation. The timing of the ups and down is too convenient.
Up in overnight Asian buying, selling with Western bank suppression here.
This was the pattern confirmed over time previously.
Bennie and the Inkjets will be in
deep trouble soon, wait fo the
FCIC's report and the FED audit, and Bennie will
be applying for running a smalle
casino, Macau or Singapore ?
They also have a private one
going on at the ECB...
any idea how Pimco's bond strangles are working out???
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