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Egon von Greyerz: "A Hyperinflationary Deluge Is Imminent", And Why, Therefore, Bernanke's Motto Is "Après Nous Le Déluge"

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From Egon von Greyerz of Matterhorn Asset Management

Apres Nous, Le Deluge

Happy days are here again! Stock markets
are strong, company profits are up, bankers are making record profits
and bonuses, unemployment is declining, and inflation is non-existent.
Obama and Bernanke are the dream team making the US into the Superpower
it once was.

Yes, it is amazing
the castles in the air that can be built with paper money and deceitful
manipulation of all economic data.  And Madame Bernanke de Pompadour
will do anything to keep King Louis XV Obama happy, including flooding
markets with unlimited amounts of printed money. They both know that, in
their holy alliance, they are committing a cardinal sin. But clinging
to power is more important than the good of the country.  An economic
and social disaster is imminent for the US and a major part of the world
and Bernanke de Pompadour and Louis XV Obama are praying that it won’t
happen during their reign: “Après nous le déluge”. (Warm thanks to my
good friend the artist Leo Lein).

Moral and financial decadence

A deluge of an unprecedented magnitude
is both inevitable and imminent. The consequences of the economic and
political mismanagement will have a devastating impact on the world for a
very long time. And the consequences will touch most corners of the
world in so many different areas; economic, financial, social, political
and geopolitical. The adjustment that the world will undergo in the
next decade or longer, will be of such colossal magnitude that life will
be very different for coming generations compared to the current
social, financial and moral decadence. But history always gives us
lessons and the one that is coming will be necessary and eventually good
for the world. But the transition and adjustment will be extremely
traumatic for most of us.

We have reached a degree of decadence
that in many aspects equals what happened in the Roman Empire before its
fall.  The family is no longer the kernel of society. More than 50% of
children in the Western world grow up in a one parent home, either being
born by a single mother or with divorced parents. Children are neither
taught ethical or moral values nor discipline. Many children consider
attending school as optional and education standards are declining
precipitously.  Most families do not have a meal around the dinner table
even once a week. Sex and violence are common place on television and
in real life. Both press and television create totally false values and
ideals. Everyone must be young and beautiful often enhanced by surgical
or digital means. Old people have little value and their wisdom is not
benefitting the younger generations.

The Golden Calf or materialism is the
ultimate value that is worshipped and no means are eschewed to attain
material goals. Since most of the prosperity that has been achieved in
the last 40 years is based on printed money and debt, it is totally
false and unsustainable. A major part of the Western world has improved
their living standard, by exchanging services and swapping houses at
ever rising prices financed by printed paper and credit. The perceived
wealth that is created out of this is illusory and ephemeral. We have created a world economy which is based on debt and thin air.

The Gini coefficient of income and wealth
is now reaching extremes in many countries. This measures the
inequality between the rich and the poor. In the US the Gini coefficient
is now at the same level as in the 1920s before the depression. In
countries like the US, the rich are getting richer whilst 45 million
people live below the poverty line, 43 million receive food stamps and
over 700,000 are homeless. With a real unemployment rate of 22% and
urban youth unemployment much higher, the US will soon experience social

But it is not only the US that will
experience financial misery, famine and social unrest. This will also
hit most European countries and in particular the UK, southern Europe,
Eastern Europe and the Baltic States as well as African countries, the
Middle East, Asia, yes in fact the whole world.

Are boom and busts inevitable?

Well if you listened to the former
British Labour Prime Minster Gordon Brown, he proudly declared that he
had abolished booms and busts and thus economic cycles. But he was
expeditiously thrown out at the next bust which of course had nothing to
do with him since he blamed the US sub-prime market for his ill-fated

Cycles or ebbs and flows are a natural
part of both economic life and nature. And right at the point when
something could be done to limit the damage, most nations seem to have
the uncanny knack of selecting the political individuals who will put
fuel on the fire and make the situation catastrophically worse.

Greenspan was one such individual.
During his 19 years as Chairman of the Fed, he could have limited the
economic and social damage that the US would suffer. Instead he took
every single measure possible to ensure that there would be a
catastrophe with uncontrollable consequences. But we shouldn’t just
blame the incompetence of Greenspan. It was sickening to watch every
sycophantic congressman and senator licking Greenspan’s boots and
praising his wisdom. Because Greenspan’s money printing and incompetent
interest rate management created one of the biggest financial bubbles in
world economic history. But the politicians loved this. It made the
stock market boom, and house prices surge. Thus the politicians were all
loved by their voters who did not understand the dire consequences that
were looming. And Bernanke de Pompadour is continuing the same
disastrous policies of creating money out of thin air. When will they
ever learn that creating money out of thin air and running astronomical
deficits that never will be repaid with normal money leads to the road
of total ruin? When will they ever learn? The very sad
answer is that they won’t and therefore they are leading the world into a
hyperinflationary depression that will have uncontrollable and
cataclysmic consequences for current and future generations.

Empty stomachs are rioting

We have for years warned about
hyperinflation leading to famine, misery and social unrest. Well, this
is exactly what is happening in many parts of the world. The protests
and overthrowing of regimes in Tunisia, Egypt and Libya are primarily
due to a major part of the peoples of these nations having no job, no
money and little food. It is their empty stomachs that are rioting. In
addition they are protesting against the leaders of these countries
stealing from the people.

It is virtually certain that these riots
will spread to many countries in the Middle East, Africa and the
developing world. This will lead to new regimes and new political orders
that could either be far left or far right politically or religious
extremists. But the new regimes will not be in a position to change the
root of the problem which is famine and poverty.  In Egypt for example
there has been a quiet military coup. It is unlikely that a democratic
regime will take over from the military. So the people will protest
again and again. And this will be the same in most countries. Eventually
the people will take the law into their own hands since no regime will
be able to give them the food that they need.


The hyperinflationary deluge is imminent

Although food and fuel inflation is
rampant worldwide already, we are only seeing the very beginning.
Massive oil price rises are likely to continue as a result of the
geopolitical situation as well as peak-oil. The Middle East is a time
bomb waiting to go off. Israel is in an extremely precarious position
and the involvement or non-involvement of the US in this conflict would
both have dire consequences for Israel and peace in the world. Food
prices will continue to rise dramatically. Major parts of the world are
living below the poverty line today and this will increase

The lethal concoction of rising food and
fuel prices is already affecting the Western world. The Continuous
Commodity Index – CCI, (60% food, 17% energy and 23% metals) has almost
doubled since the low in early 2009 and has gone up 42% in the last 12
months. The almost vertical rise of the CCI is one of the best
indicators of hyperinflation being imminent. A catastrophe of
astronomical proportions is looming. This will hit the world at a time
when there is no capacity whatsoever to take any real measures that
could alleviate the problems.

(Click image to enlarge)

countries are already running major deficits which will increase
dramatically in the next few years. The banking system is bankrupt and
is only holding together due to false valuations of toxic debt and
derivatives. This is done with the blessing of governments since
virtually no major bank could face an honest valuation of its assets.
Unemployment and especially youth unemployment is currently a problem
worldwide and it will get much worse. In 2010, the US government spent
60% more than its revenues. In order to balance the budget individual
and corporate income taxes would have to double.

Never before in history has the world run out of real money as well as (affordable) food and fuel simultaneously. But his is exactly what is happening now and it will get substantially worse in the next few months and years.

Financial misery, famine and high
unemployment combined with governments that will not be in a position to
give real help are a recipe for disaster that will lead to social
unrest and revolutions not only in developing countries but also in the
West. Hungry people are desperate people and desperate people do
desperate deeds. We could see already in 2011 food shortages, and riots
both in Europe and in the US.

Hyperinflation Watch

The following are INDISPUTALBLE FACTS:

  • The US dollar is down 82% against gold since 1999
  • The US dollar is down 49% against the Swiss Francs since 2001
  • The Dow Jones is down 81% against gold since 1999
  • The Continuous Commodity Index is up 100% since 2009

The above facts are clear evidence of an
economy that has been totally mismanaged. But more importantly most of
these trends are now starting to accelerate – a clear sign that
hyperinflation is just around the corner.

years of negative net worth and negative cash flow, the US is bankrupt
today. The Federal deficit is forecast to increase by at least another $
5 trillion in the next 5-7 years.  Add to this the State deficits, the
Municipal and City deficits that are rising at a galloping rate and we
have a country that is going to haemorrhage to death in the next few
years. One wonders when the totally ineffective and clueless rating
agencies are going to fathom this. Not that it will matter if they once
do.  One also wonders what Mme Bernanke de Pompadour and his court are
thinking. “She” and her courtiers should have above average intelligence
and could not possibly avoid seeing the facts that we all see today (of
course, some of us have seen it coming for over a decade). But “she”
has to please her master King Louis XV Obama and her devotion to the
king goes above all reasonable common sense, or rationale. So the two of
them will continue to crank up the printing press and drown their
people and the world in worthless paper.

Stock Market

To believe that the current money
printing liquidity boom is real and sustainable would be a very serious
and expensive mistake. The temporary and illusionary pickup that we are
now seeing in the economy and stock market is the normal initial phase
of a hyperinflationary economy. It must not be mistaken for a real
improvement in the economy.

The normal pattern at the beginning of a
hyperinflationary period is that stock markets surge. This is the
result of the increased liquidity and a flight to more inflation proof
assets. This was the case in for example the Weimar Republic and
Zimbabwe.  Just look at the chart below of the Zimbabwe stock exchange
that went from 1,420 in January 2005 to 5.4 trillion in June 2008, a 3
billion per cent increase.  That was of course in Zimbabwe dollars. In
US dollars the stock exchange went sideways with major volatility.  So
in hyperinflationary terms stock markets could continue to rise
initially thus making them a better investment than cash. However,
measured against real money, the Dow has gone down 82% against gold
since 1999 and 86% against silver since 2001 (see chart above). We are
currently seeing a dead cat bounce but we expect the Dow to decline a
further 90%, at least, against gold in the next few years. So even if
stock market investments will initially give the illusion of protecting
investors, it will be a very poor hedge against the ravages of
hyperinflation in real terms.


Bond market

In January 2009, we warned investors
that long term interest rates were bottoming. Since then the 30 year
bond yield is up from 2.6% to 4.6% an 80% rise. But more importantly the
30 year is currently in the process of breaking a 17 year downtrend
line which dates back to 1994. This confirms that rates will now start a
major and rapid rise which is likely to reach the mid-teens or higher.
Governments will attempt to keep short rates low due to weak economies
but eventually the rising long rates will put strong upward pressure on
the short rates.  So the flight to government bonds that we have seen in
the last few years will soon reverse into a massive rush for the exit.
This will coincide with rapidly increasing financing requirements by the
US, UK, EU and many other governments. The poisonous concoction of
rising rates and rising financing needs will create a vicious circle of
collapsing bond markets and unsustainably high financing cost. This will
continue to drive interest rates even higher which will further
increase deficits and necessitate even faster running printing presses.
Add to that a collapsing currency and the hyperinflationary picture is
complete. It is our very strong view that investors should exit bond
markets entirely if they want to avoid a total destruction of their

Currency Market

As we have explained for many years, hyperinflation is created by the
government destroying the currency as a result of money printing to
finance deficits. This leads to the cost push inflation that we are now
experiencing. Add to that, shortages in commodities worldwide, thus
creating the perfect hyperinflationary scenario. The Dollar, the Pound,
the Euro and many other currencies will continue to decline. They can’t
all decline against each other at the same time so the market will take
turns in attacking one currency at a time. But all currencies will
continue to decline against gold. We believe that the dollar will soon
start a very rapid fall against gold and against many currencies.
Investors should exit the Dollar and also the Pound and the Euro. There
is no currency better than gold or silver but for any small amounts of
cash we prefer the Swiss Franc, the Norwegian Krone, the Singapore
dollar and the Canadian dollar.

Wealth Protection

A hyperinflationary depression will
destroy the value of money as well as most assets that were financed by
the credit bubble (property, stock market).  Wealth protection is now
critical and urgent. We see no better way of protecting assets against
total destruction than physical gold and silver stored outside the
banking system. Thereafter, precious metals, energy and food stocks are
our preference.  But it must be remembered that any asset including
stocks that is held through a bank is dependent on a sound and surviving
banking system.

The real move in precious metals is
still to come as we have outlined in many articles. Less than 1% of
investors own gold. Before this economic cycle is over we are likely to
see a mania in physical precious metals that will drive prices
exponentially higher. And luckily for investors, this is a mania which
is unlikely to end in a collapse since gold most probably will be part
of a future reserve currency.

Finally we are again quoting von Mises who clearly understood that “le déluge” is inevitable:

“There is no means of avoiding a
final collapse of a boom brought about by credit expansion. The
alternative is only whether the crisis should come sooner as a result of
a voluntary abandonment of further credit expansion or later as a final
and total catastrophe of the currency system involved.”
– Ludwig von Mises


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Sun, 03/06/2011 - 16:31 | 1024100 Spitzer
Spitzer's picture

I have lots of confetti that I will gladly trade for your old jewelry.

Sun, 03/06/2011 - 15:57 | 1024009 Popo
Popo's picture

Hyperinflation with soaring oil and unemployment? Sigh. No. Come on let's not throw around the word so casually.

Rampant, even crippling Price inflation yes. Hyperinflation no.

Sun, 03/06/2011 - 16:01 | 1024015 Implicit simplicit
Implicit simplicit's picture

Although I understand the logic of the article, and enjoyed it, I still think the gov/fed/banks symbionts will crash the market first. They will do this to drive investors back to bonds (short term at least), and the dollar. In reality, no one knows for sure how it will play out. In fact, it will probably be something no one was calling for, or some weird combination of inflation/deflation/hyperinflation that main variable will be time.

Sun, 03/06/2011 - 16:02 | 1024024 cossack55
cossack55's picture





Sun, 03/06/2011 - 16:58 | 1024174 Implicit simplicit
Implicit simplicit's picture

I'm always amazed at the religiously dogamtic views and passion that the inflation/deflation debate brings about. I like authors on both sides of the debate (Gonzala, Mish, etc.) Since when has anything been totally black and white? What will catch the most people off guard is usually what happens.

Sun, 03/06/2011 - 17:09 | 1024206 snowball777
snowball777's picture


Sun, 03/06/2011 - 16:04 | 1024030 bob_dabolina
bob_dabolina's picture

Well isn't that an interesting thought.

Have you noticed that days on which the stock market is down that the dollar and bonds have gone down as well but silver/gold gave gone up?


Sun, 03/06/2011 - 16:36 | 1024113 Implicit simplicit
Implicit simplicit's picture

Going down is one thing, crashing is another. margin calls etc... would be settled in dollars, and they would become scarce in a short period of time during a crash. people would be rushing to get into short term instruments just like last time. Eventually, the dollar would start being dumped again, but first there would be panic and margin calls to settle.

Sun, 03/06/2011 - 16:35 | 1024107 Spitzer
Spitzer's picture

Freegold would make all deflationists wrong and allot of inflationists would be cought off because they say to sell gold at $5000 an oz.

Sun, 03/06/2011 - 18:32 | 1024390 IQ 145
IQ 145's picture

 I just hate it when I get cought off; I have no idea what you're talking about.

Sun, 03/06/2011 - 18:49 | 1024423 Spitzer
Spitzer's picture

For example, silver will not perform anywhere near the same way as gold yet silver is an inflationists wet dream right now.



Mon, 03/07/2011 - 00:23 | 1025256 Sedaeng
Sedaeng's picture

"caught off guard" maybe?

Sun, 03/06/2011 - 15:59 | 1024016 Waterfallsparkles
Waterfallsparkles's picture

Maybe it is time for people to go back to the way things used to be.  There would be three generations living in one home.  Dad went to work, Mom planted the garden, canned food for the winter, made the clothes, cut the hair, cooked from scratch.  Grandmother took care of the children, did light chores and made soup and cookies.

I mean really just cooking from scratch can save a lot of money.  Buy potatoes peal them and either boil or fry them.  Peel carrots, slice them and cook them or put them into soups or with meatloaf or a roast.  How about dried beens they are reasonable.  Just hydrate them and cook.

I remember when we had a 15 inch black and white tv and about 2 hours in the evening everyone would watch the same show together.  That was after we all had dinner together.

Is it really that hard to wash dishes by hand?  Is it really that hard to dry clothes on a clothes line?

Women did not work but made up for it by making all of the familys clothes, curtains, quilts, cooking from scratch, tending a garden, canning food.  They also did not have to pay for day care, another car, business clothes, computers, phones, gas to go to work.

We had telephone party lines, that were cheep, so sometimes you would pick up the phone and the other person that shared your line would be talking and you would have to wait to make a call.  We did not have internet, computers, faxes, copy machines, answering machines, dvr recorders, big screen tv's.  Not that these are not great but they all cost money and many have monthly charges that go with them.

When something would break we would fix it.  We never threw anything away as it could be a parts slave for something we just bought.  Example, the element burnt out in your toaster you would buy a new element, the tv had bulbs that would be replaced when it did not work.  Most Men could fix their own cars (none of this electronic stuff), they could fix the washing machine, dryer or the toaster, etc. 

Although, Big Wally Wall Mart did away with most of this with prices so cheep that it would cost more to fix a product than buy a new one.

We had a small grocery store on every corner it seemed, which we would frequent, we had street vendors comming up and down the alley with horse drawn carts calling Watermellon, Cantelope that we could buy fresh vegtables from.  Still can hear their calls in my memory Caatlope, Waaatmlon.

Yes, we have come a long way, but maybe to our detriment.  Just maybe it is time to go back to the good old days.

Sun, 03/06/2011 - 16:05 | 1024037 cossack55
cossack55's picture

I've fond memories of my father and I pulling tubes from the back of the set about once a month and going to the local hardware store and testing them on the tube tester.  Seems a little unreal today.

Sun, 03/06/2011 - 17:16 | 1024227 snowball777
snowball777's picture

Same here, only it was amplifiers instead of TVs...I still love to watch em glow.

Sun, 03/06/2011 - 16:14 | 1024057 Snidley Whipsnae
Snidley Whipsnae's picture

In the 'good ol days' the majority of Americans still lived on farms. Those farmers grew cash crops like corn, cotton, soy beans, sugar cane, etc, but in addition they had large gardens to produce enough veggies to can for the months when the snow flew. The farmers also had smoke houses for hams, bacon, and sometimes fish. They had chickens for eggs and chicken soups, fried chicken, roast chicken, etc. Most ran a few head of beef and had some pigs.

The farmers knew how to build a hen house and how to repair a roof. They knew how to mend fence and how to repair harness...and a zillion other tasks that very few know how to do today.

Most of the knowledge and skills that would allow a modern office worker to move onto a farm and make it prosper have been lost...and, the ability to work as hard as farmers past has definitely been lost in America. The work is back breaking and nearly endless.

So, tell me again about everyone getting forty acres and a team of mules...and how many would know what to do next...

Sun, 03/06/2011 - 17:05 | 1024194 cossack55
cossack55's picture

I'll take the 40 acres, you may keep the mule.

Sun, 03/06/2011 - 17:38 | 1024272 Snidley Whipsnae
Snidley Whipsnae's picture

Good luck turning over a quarter or half acre garden with a shovel and hoe. You will wish you had the mule way before you get to turning fields for cash crops.

All labor on a farm, as elsewhere, is divided. The mule(s) was included in the division of labor.

If fuel for running tractors becomes out of reach of small farmers what is the replacement for the tractor?

My grandmother and grandfather owned and successfully operated a small farm (180 acres) from 1918 till their deaths circa 1984. They never owned a tractor, but owned several teams of mules.

I helped them on that farm before school, after school and on weekends and throughout the summers. Until you try it, and gain some real experience, don't assume you know anything about it.

One way to start is to learn how to bake bread, bisquits, and other pastries from scratch...then making soups, stews, fried chicken, chicken and dumplings, etc. After that, move on to canning, butchering and rendering, sausage making, smoking/curing meats, rendering lard, milking and churning, etc... this was all women's work and is back breaking. The men's work is even more strenuous.

Sun, 03/06/2011 - 17:47 | 1024299 Hulk
Hulk's picture

Snidley, I was raised on a subsistence farm, even had a horse drawn plow. The back breaking work thing is a myth, at least once the farm is established. I think you would be very surprised at the amount of leisure time we actually had...The skills were almost lost, but due to the current economic environment, are coming back strong...

Sun, 03/06/2011 - 19:22 | 1024487 Snidley Whipsnae
Snidley Whipsnae's picture

lol... how many pounds/bales of cotton have you picked?

...and how many bales of cotton have you picked when you are age 60 and over?

I don't know what cash crops you raised on a 'subsistence farm' that allowed for lots of lesiure time...but would certainly like to. Please tell me more.

Sun, 03/06/2011 - 20:16 | 1024633 Hulk
Hulk's picture

No cotton, no hay, no cows. No cash crops. Lots of trade and barter. Just grew the food that we ate, chickens, hogs and deer that we hunted.Canned in late summer/fall. About 8 acres. Wood cooking and heat. In the spring, we took the horse around and plowed the neighbors fields for cash. Mowed lawns in the summer.Cut and hauled wood for folks. Only thing that has changed is we now use a tractor and mower. We currently pasture farm roughly 100 acres. Establishing that farm was definitely hard work, which I enjoyed greatly.(at 48 yoa)

Sun, 03/06/2011 - 23:04 | 1025087 Snidley Whipsnae
Snidley Whipsnae's picture

Without a cash crop it's a lot easier. A couple of summers I worked on my uncles dairy farm. He had a lot of Holsteins and it was a modern commercial operation...all stainless and concrete. We made and put by a lot of hay.

There is a lot of difference between 48 and 60... which you will find out in time.

I believe what you have described is what we would call a hobby farm or a gentleman's farm. Not the same thing as a cash crop operation.

If you would like to read about real farming try 'And Now We Go In Search Of Honorable Men'... it's a very stark look at share cropping in the South during the depression. I have read nothing to compare with the accuracy described in the book. The two individuals that wrote the book lived with several share croppers while writing and they pulled no punches. It was so honest and stark that for many years it went unpublished. I am here to tell you what is in that book is the truth. I lived through the last stages of it...up to the end of WW2 when the mechanical cotton picker went into mass production and the share croppers became redundent.

Most do not know it but the largest American migration in history took place just after WW2 when millions of share croppers (both black and white) moved to the northern cities to take industrial jobs. It made the dust bowl migration look tiny by comparison.


Mon, 03/07/2011 - 01:28 | 1025372 Hulk
Hulk's picture

Absolutely. No cows is key too. The appalachian culture I was raised in becomes more fascinating the older I get. Quite a few of my family that left for city living have now come back, including me, although I still have one foot in the big city. But soon...

Mon, 03/07/2011 - 07:24 | 1025549 Snidley Whipsnae
Snidley Whipsnae's picture

Hulk, thanks for the discussion. It's always interesting to hear from others that had experience on farms in their youth, especially prior to farming becoming 'big ag'.

Honestly, the dairy operation was the 'busiest' farm I ever worked on. There is so much cleaning to do with the inspectors in and out constantly and running milking operations twice a day...and the cows do not take weekends off.

After morning milking and cleaning we would get onto the haying and putting by...all day till evening milking and cleaning. Up around 4am, to bed prior to dark after an enormous supper. It seemed no sooner did my head hit the pillow and Uncle Irvine was waking me.  My work was gratis as was the custom in those days but the home cooked meals and plenty of good food was also the norm. Almost everything we ate was grown right there on the farm or was bartered from a neighboring farm. Irvine had huge quantities of milk/butter to trade with and had his own big garden.

Irvine had two daughters that were as lazy as the Holstines...and fat to boot. They were good cooks though.

I framed houses with my dad some summers. Framing and cabinet shop work was a walk in the park compared to the dairy operation.

Good luck to you and yours.

Mon, 03/07/2011 - 01:42 | 1025390 WaterWings
WaterWings's picture

Very interested in reading that book - couldn't find it on Amazon or otherwise...any other info?

Mon, 03/07/2011 - 07:38 | 1025545 Snidley Whipsnae
Snidley Whipsnae's picture

Removed because of incorrect book title. See post below...












Mon, 03/07/2011 - 07:36 | 1025555 Snidley Whipsnae
Snidley Whipsnae's picture

My bad! I had the title wrong as pointed out by Saxxon below. The correct title is 'Let Us Now Praise Famous Men' by Agee and there are several copies for sale here...

Mon, 03/07/2011 - 14:57 | 1026952 WaterWings
WaterWings's picture

Merci! Loved reading your exchange with Hulk. Soon...I will have all the goats and chickens I will ever need. :-)

Sun, 03/06/2011 - 21:25 | 1024794 serotonindumptruck
serotonindumptruck's picture

You've probably heard of the Foxfire series of books. Written and published in the late 1960's and early 1970's, they are the source of a wealth of practical, back-to-basics information. Everything from churning butter to fabricating an oxen yoke from a massive block of wood. I love the interviews with some of the older country folk, who were born and raised during the late 19th century.

These books are available just about everywhere for very low cost.

Sun, 03/06/2011 - 21:47 | 1024853 Hulk
Hulk's picture

Yes, have the entire set. They were researched not too far from where I was raised and the pictures in those books sure do bring back the memories...

Sun, 03/06/2011 - 16:15 | 1024060 Waterfallsparkles
Waterfallsparkles's picture

The Government gave women credit and encouraged them to get jobs.  This in itself created an industry and jobs.  The industry of fast food, I remember the first TV dinner.  Just look at the industry that has developed in pre prepaired food for the working woman.  The family then had to start to buy clothes instead of making them themselves.  Just look at the clothing industry today.  Child care.  How many billions is spent on childcare today.  2 working parents, two cars, twice the amount of gasoline used.  Billions in the Car and Oil industry.

With all of this the main benifactor is the Governmet as now they have two incomes to tax instead of one.  Plus, they have all of the taxes on the industries that have grown from women working as mentioned above.

Sun, 03/06/2011 - 18:23 | 1024377 r101958
r101958's picture

Waterfall......most of your thoughts are spot on.

Sun, 03/06/2011 - 17:01 | 1024180 Tric
Tric's picture

That sounds nice and all, and maybe some of those are damn good ideas, but the amount of time we can free up for ourselves by NOT doing that shit is a huge benefit to one's standard of living. 


We can still enjoy all of those things, we just can't finance it with debt is all.  We just have to pay higher prices and work for lower wages before we can afford those things.  It's not the end of the world, we're not going to forget how to create a washing machine just because a fiat currency implodes. 

Sun, 03/06/2011 - 20:54 | 1024733 Waterfallsparkles
Waterfallsparkles's picture

Hi Tric,

The problem is that the time you free up for youself is probably working more or longer hours.  What that means is more money for the Government.  So, you spend your time working and paying the Government more taxes and then with after tax money you buy all of the prepaired food and pay others to fix things for you.

More than likely a wash but I think in the end you probably end up with the losing side of the deal and the Government makes out on the other side.

Hmmm, they get more taxes from you for working more and then get taxes from the manufacturers of the food and the repairman or woman.

So, who wins?  The Government.  Plus, you may have enjoyed tinkering with that washing machine.

Sun, 03/06/2011 - 20:55 | 1024734 Waterfallsparkles
Waterfallsparkles's picture

Hi Tric,

The problem is that the time you free up for youself is probably working more or longer hours.  What that means is more money for the Government.  So, you spend your time working and paying the Government more taxes and then with after tax money you buy all of the prepaired food and pay others to fix things for you.

More than likely a wash but I think in the end you probably end up with the losing side of the deal and the Government makes out on the other side.

Hmmm, they get more taxes from you for working more and then get taxes from the manufacturers of the food and the repairman or woman.

So, who wins?  The Government.  Plus, you may have enjoyed tinkering with that washing machine.

Sun, 03/06/2011 - 17:50 | 1024304 GreenSideUp
GreenSideUp's picture

+1.  I agree with you, and I think there is a move towards that "back to the future" type of living.  I sure do know a lot of people who are moving in with family or friends, and who are doing a lot of things to become more self-sufficient.   


Sun, 03/06/2011 - 18:22 | 1024368 New_Meat
New_Meat's picture


here's some practical info for your nostalgia:

and hangin' 'round the kitchen?

(a sample, but this is one of the old U.S. Gov't expenditures that should be maintained.  I prob' just killed it).  wtf?

"Women did not work ..."

OK, now you gotta' get some lye-based soap and wash out your mouth! ;-)  We've had great discussions about this, since it is 'easier' to 'work' in one venue or another.

In the 'good old days' they had <shameful> 'relief' for the incompetents who could not work.  This time around, well ...

But the 'do-gooders' have removed the shame, to load up the system.  Isn't that right Frances Fox?

- Ned

[ed. is one of Mrs._Meat's faves]

Sun, 03/06/2011 - 19:24 | 1024484 Waterfallsparkles
Waterfallsparkles's picture

Thank you for your post and links.  I have and collect old cook books.  They tell you how to do everything from scratch.  The best part is that when you cook from scratch it tastes so much better than anything you could buy today.  Plus, no preservatives and all of the other junk they put into the food products they sell you commercially.

People will just rave over homemade cake or cookies because in todays time they have never tasted anything so good.

Sun, 03/06/2011 - 18:35 | 1024392 Miss Expectations
Miss Expectations's picture


Thanks for the reminders. 

Perhaps you'll enjoy this:

Depression Cooking...Pasta and Peas


Sun, 03/06/2011 - 19:38 | 1024512 Waterfallsparkles
Waterfallsparkles's picture

Yes, I have watched this youtube channel.  I also love to cook for myself her poor mans meal great for a Sunday morning.  The only thing I do differently is I rinse the potatoes in cold water to get rid of the starch before cooking them.

Also, had an affluent Italian friend and went to their house and they served a salad with Dandelion greens in it.  I thought it strange but they tasted great.  Does make you wonder as Americans are always trying to rid their lawns of Dandelions.  Now, I let them grow and enjoy them.


Sun, 03/06/2011 - 22:10 | 1024912 Hulk
Hulk's picture

Dandelion greens highly nutritious . Chickens eat all of mine...

Sun, 03/06/2011 - 19:47 | 1024514 Waterfallsparkles
Waterfallsparkles's picture

Yes, I have watched this youtube channel.  I also love to cook for myself her poor mans meal great for a Sunday morning.  The only thing I do differently is I cut the potatoes is thin slices then I rinse the potatoes in cold water to get rid of the starch before cooking them.

Also, had an affluent Italian friend and went to their house and they served a salad with Dandelion greens in it.  I thought it strange but they tasted great.  Does make you wonder as Americans are always trying to rid their lawns of Dandelions.  Now, I let them grow and enjoy them.


Sun, 03/06/2011 - 21:07 | 1024754 Miss Expectations
Miss Expectations's picture

This time I noticed Clara's two wedding bands on her right hand.  When I was in Italy, I asked a friend why so many older women were wearing 2 wedding bands on their right hand and she told me that they were widows.  When their husband's died, they would re size the rings and wear them together, but now on the right hand. 

Sun, 03/06/2011 - 23:49 | 1025189 Miss anthrope
Miss anthrope's picture


simplicity.... I long for those days to come again. 

Sun, 03/06/2011 - 16:15 | 1024061 Brother Revegen...
Brother Revegend Magoun's picture

Tyler, this news says that China stops using U.S. Dollar in its international trade by 2011. Link to PBC page:


What do you think?

Sun, 03/06/2011 - 17:25 | 1024250 Cognitive Dissonance
Cognitive Dissonance's picture


Your delivery of content takes place at such a blistering pace that anyone who isn't checking ZH four or five times a day is so far behind the curve ball they might as well not come up to bat. I see people complain that you haven't covered a subject that was in fact covered weeks or months ago and has since been updated weekly.

Keep up the good work Tyler. Everyone else, make ZH your default browser page. It really does help.

Sun, 03/06/2011 - 19:31 | 1024502 WaterWings
WaterWings's picture

I did this at work for some of the hotseat computers and it got people squaking!

Sun, 03/06/2011 - 19:52 | 1024546 Yits and the Yimrum
Yits and the Yimrum's picture

What do you mean by squaking?

were they bitching about ZH, or bitching about the squid matrix?

just curious about the details?

bitchez bitching, a good thing I would quess


Mon, 03/07/2011 - 01:45 | 1025396 WaterWings
WaterWings's picture

More positive. Some eyerolls. They can't knock after they see it for themselves.

Sun, 03/06/2011 - 20:07 | 1024587 Dulcinea
Dulcinea's picture


Sun, 03/06/2011 - 21:16 | 1024777 TheDriver
Sun, 03/06/2011 - 18:50 | 1024422 IQ 145
IQ 145's picture

 I thought the official declaration that it was approved, and good, for the citizens to own gold and silver was one of the cleverist moves in real-politik that occured during my lifetime. The Central government is blameless; "don't you like individual freedom?"; merely the people decide if they want to own gold and silver; we, the Central government, have no position in the matter. It's a direct, and extremely effective attack on the dollar and on all that Benny and Inkjets represent; but how can you object to individulal freedom? You can't. The silence on this subject has been deafening; and it's working; chugging away, destroying the credibility of the currency of their hated capitalist foe, (make no mistake about this).

Mon, 03/07/2011 - 03:39 | 1025489 Brother Revegen...
Brother Revegend Magoun's picture

Yes, thank you, Tyler. Of course I had googled through ZH before asking you, but seems that google robots are not very fast)

Sun, 03/06/2011 - 17:08 | 1024161 Spalding_Smailes
Spalding_Smailes's picture

Impossible. They have no free flowing system so " all foreigners " can hold yuan accounts. 

Also food for thought...

How to sell USG bonds

There are broadly four ways it could arrange such an exchange.  First, it could swap US Treasury bonds for other US assets.  How would this work?  Let us say that the PBoC decides to sell USG bonds and buy Manhattan real estate or IBM stock.  Obviously the seller of that real estate or stock will now have a bunch of money that he needs to invest.  Directly or indirectly (by buying another USD asset and so passing the problem onto someone else) the money becomes part of the pool of US savings that are available to fund the USG market.

In other words this swap would have little net impact on the US market except perhaps to cause a slight increase in Treasury yields and an equivalent, and welcome, contraction in US risk premia.  What if instead of leaving his money in US assets the seller uses the money to buy foreign assets?  That will have the same effect as the second way the PBoC can swap out of USG bonds.

In the second way the PBoC could reduce its USG holdings, the PBoC could swap USG bonds for assets denominated in euros or yen.  Of course any major exchange would immediately cause the dollar to drop sharply, giving the US economy an export-related boost as European or Japanese exports collapse and imports surge.  There might be a short-term rise in US interest rates in this case, but this would be tempered because the expansionary effect of a surge in US exports would reduce the need for the US Treasury to borrow – remember it is borrowing in order to create domestic employment, and the less the employment it creates leaks abroad through the trade deficit, the less it needs to borrow.

Aside from the fact that a large swap of this sort would ensure that the PBoC sells dollar assets at artificially low prices and buys euro or yen assets at artificially high prices, there is a larger political problem with this kind of transaction.  Europe and Japan would not be happy if PBoC purchases were truly significant and both countries would almost certainly retaliate strongly against Chinese trade.

They might also increase their purchases of USG bonds in order to reduce the currency impact of the PBoC’s purchases, which has the effect of recycling PBoC purchases into USG purchases anyway.  Remember if Europe or Japan do not intermediate PBoC-related inflows back into the US, this is the same as saying that the US trade deficit migrates to a very unwilling Europe or Japan.

In fact recent reports that the PBoC has increased its purchase of yen is already causing worry about its exercising the nuclear option, although that is a mistaken reading.  First, the numbers are small, and second, they are more likely to be shifting out of euros than out of dollars.  Here is what the Financial Times said in anarticle last week:

China bought a record amount of Japanese government bonds in May, in an apparent move to shift more of its massive foreign exchange reserves into Japanese debt.  Chinese net purchases of Japanese government bonds soared to Y735.2bn ($8.3bn) in May, far outpacing the Y541bn in JGBs bought from January to April, according to Japanese finance ministry figures.

The increase in JGB purchases comes as China appears to be diversifying more of its $2,400bn in foreign exchange reserves away from US Treasuries and, more recently, euro-denominated assets, because of sovereign debt problems in Europe.

Notice I have ignored the possibility that the PBoC buys assets other than in euros or yen, but aside from the fact that no other market is nearly deep enough to absorb significant purchases by the PBoC, the net result is no different.  •••••••   ( The destination country would be forced either to recycle the inflows back into the US (counteracting the effect of PBoC selling of USG bonds) or it would have to absorb the US trade deficit – something no other country is capable of doing. ) ••••••••

The third way the PBoC could swap out of its USG bonds is to exchange them for hard commodities.  Because of the positive correlation between Chinese growth and commodity prices, stockpiling commodities is a bad balance sheet decision for China.

Why?  Because by locking in relatively “cheap” commodities if Chinese growth subsequently surges, or relatively “expensive” commodities if Chinese growth subsequently stalls, it will only exacerbate volatility in China’s already incredibly volatile economy.  Remember that most analysts believe that quarterly growth, if correctly accounted, plunged from the low double digits in the last quarter of 2007 to zero or even negative in the last quarter of 2008, for example, before surging to low double digits again the last quarter of 2009.  This is already an very volatile economy.

This exacerbation of volatility is made worse by the widespread suspicion that China has already stockpiled huge amounts of commodities, but the main point is that even if the PBoC were to do this, it does not change anything material.  It simply reassigns the problem to commodity exporters, with almost the same net results, because if Brazil, say, sells more iron ore to China, Brazilians now have more dollars, which they must either spend on US imports – thus boosting US employment – or invest in US assets.  In this case Brazil simply intermediates the former PBoC purchases of USG bonds.


Sun, 03/06/2011 - 17:17 | 1024230 toto
toto's picture

Imagine china nationalizing everything inside its borders and giving away american bonds for repayment.

Sun, 03/06/2011 - 17:39 | 1024265 Spalding_Smailes
Spalding_Smailes's picture

Now they could sell assets • open borders • securitize local government debt's ect .... But we are talking a 20 year transformation at best. After the construction bubble burst ( 70% of GDP ) look for many, many unemployed construction workers, also a monkey hammer for consumption.  

Everyone thought Japan was the next big thing • reserve currency • a few years ago ... 

China's consumer consumption rate has been dropping over the last 10 years, also. And with no social safety net, most of those people are saving not buying. No big screens, no laptops, luxury items, not a pair of shoes for every dress ...

USA per capita $ 47,123

China per capita $ 7,400

Sun, 03/06/2011 - 18:53 | 1024426 IQ 145
IQ 145's picture

 "widespread suspicion"; no. this is a fact. not a suspicion.

Sun, 03/06/2011 - 16:18 | 1024073 MorningStar
MorningStar's picture

Good Lord!!  "An economic and social disaster is imminent for the US..." that about says it all for all of us.  Where is the outrage?


Time to read a new book out that's a thriller where Americans finally take a stand against a corrupt government that defends it's powers over what is best for the country, as mentioned.  It's a must read now!!


Need to understand the articles comment, "...that will lead to social unrest and revolutions not only in developing countries but also in the West".  Just read the book & find out that history is now showing us our true destiny in life.  It's going to be a long, hot summer with unemployment, inflation & gasoline up & the dollar down. 


Great article.  We've all been warned.


Sun, 03/06/2011 - 16:40 | 1024131 SparkyvonBellagio
SparkyvonBellagio's picture

That's why they put fluoride in the water.

Sun, 03/06/2011 - 22:27 | 1024971 Unlawful Justice
Unlawful Justice's picture

I did a little experiment and got an unexpected surprise.  I stopped drinking tap water and stopped using tooth paste.  I got depressed after about a week.  I have readjusted and feel different.  I am more comfortable with being sad is the only way I can put it.   I now only drink rain water and brush my teeth with baking powder.  I didn't know that fluoride was used in anti-depressants until I googled it.

Are there any anti-depressants that don't contain fluoride ... Yes, there is one SSRI antidepressant with no fluoride and that is Zoloft or sertraline. ... Is there any anti depressant tablets that are less than 10mg? ... › ... › Medication and Drugs › Antidepressants't_contain_fluoride

Sun, 03/06/2011 - 23:52 | 1025202 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

I shoot up tap water intravenously.

Sun, 03/06/2011 - 17:47 | 1024301 Snidley Whipsnae
Snidley Whipsnae's picture

What percentage of Americans backed the revolution against England?

...and those Americans didn't have the distraction of Oprah, the NFL and main stream meadia bobble heads! Not to mention extended unemployment, food stamps, SS, Medicare, etc...

Let me know when the hunger riots start in America...

Sun, 03/06/2011 - 19:07 | 1024450 New_Meat
New_Meat's picture


"What percentage of Americans backed the revolution against England?"

Generous estimates are like 1/3, 1/3, 1/3 as in support, anti, don't really care.

Support might have been less, and certainly changed as a function of time/circumstances.  But at the right time , with the right leadership, they were able to make decisive events at: Bemis Heights, (the good Ahnold in the Mohawk valley), Saratoga.  90 day contracts and all.

But, y'know, the old fellaz got the job done.

And the new fellaz are anticipating equal victory, 'cuz they are cueuing up as you say:

"the hunger riots start in America..."

don'tcha know.  What is ur opinion on corn4gas vs. corn4food.  Tortilla prices eagerly await your answer.

- Ned


Sun, 03/06/2011 - 19:32 | 1024500 Snidley Whipsnae
Snidley Whipsnae's picture

"don'tcha know.  What is ur opinion on corn4gas vs. corn4food.  Tortilla prices eagerly await your answer."

If you mean turning corn into gas... It takes more energy to convert the corn to gas than is rendered from the product.

My opinion on corn for food? Corn is food, I eat it.

Tortillas? I love good Tex/Mex.

Sun, 03/06/2011 - 16:18 | 1024076 Dr. Porkchop
Dr. Porkchop's picture

I'm holding physical silver, but I'm going to be moving to gold in higher percentages. I have no grand theory, just been doing lots of reading, and I think it will end up being the supreme wealth preserve. Depending on what happens in silver, I'll probably sell some when prices really start moving.

I'm in Canada, but I'm not placing my hopes in the chance that the CDN $ will fare ok on its own.

In the end, as long as I've got some food and my guitar, I can be happy.

Sun, 03/06/2011 - 18:57 | 1024429 IQ 145
IQ 145's picture

 This is a foolish plan. Silver will continue to outperform gold for a long time; you are only losing your profits in purchasing power by converting to gold; this accomplishes nothing.

Sun, 03/06/2011 - 16:20 | 1024078 RobotTrader
RobotTrader's picture

Richard Russell now predicting $6,000 gold.$6,000_as_Media_Ridicules.html

If that happens, the Dow is going to 25,000 at least...

Sun, 03/06/2011 - 16:33 | 1024101 Spalding_Smailes
Spalding_Smailes's picture

Did he have a clown suit on when pen'd that prose, but hey, look how big the housing bubble got.

Sun, 03/06/2011 - 16:41 | 1024134 tmosley
tmosley's picture

No, but you sure do.

How does I devalued currency?

Sun, 03/06/2011 - 16:45 | 1024144 Bay of Pigs
Bay of Pigs's picture

Pretty obvious you have no idea who Richard Russell is. Doesn't surprise me at all, as your comment shows your ignorance.

And speaking of are those silver shorts working out for you?

Sun, 03/06/2011 - 16:43 | 1024142 Snidley Whipsnae
Snidley Whipsnae's picture

To assume that the rise of the price of gold in fiat currencies is a bull market is to assume that the rise of gold is a cyclical event...or, to use Russell's words... 'a bull market in gold'... Even Russell does not get it. He does not know that he is watching a secular event... This event is out of Russell's experience so he cannot believe that gold will sustain it's momentum against fiats. Like most other 'gold bugs' he expects a 'peak in gold price and a blow off top'. It is not going to happen.

I do not believe that we are watching a cyclical event. At this stage of printing unlimited amounts of fiat, why would gold decline vs fiats? Of course, there will be ups and downs as in all asset classes but tell me why gold would permanently drop against fiats that are being printed in unlimited supply?

I am a long time holder of PMs and what I see happening is indeed out of my experience. Unless central banks take steps to strengthen their currencies there will be no permanent decline in gold. Russell is on the wrong page.

Sun, 03/06/2011 - 18:17 | 1024359 Long-John-Silver
Long-John-Silver's picture

Thank you for stating the obvious so eloquently. Anyone still comparing Gold and Silver with Fiat currency simply do not get it. They assume a complete collapse of Fiat Currency is impossible. In reality every Fiat Currency has collapsed under it's own weight. There is really no reason now to buy Gold or Silver when it dips. It's more important to trade any amount of Fiat for Physical while it's possible to still do so. At some point the people with physical metal will not trade it for any amount of Fiat Currency.

Sun, 03/06/2011 - 19:07 | 1024451 Bay of Pigs
Bay of Pigs's picture

Richard Russell owns a shitpot of physical gold. Cut him some slack. 

Sun, 03/06/2011 - 19:40 | 1024521 Snidley Whipsnae
Snidley Whipsnae's picture

"Richard Russell owns a shitpot of physical gold. Cut him some slack."

I have a great deal of respect for Rich Russell but that does not mean that I have to agree with all his views nor get on board with all of his calls.

Neither Russell nor I have ever seen a secular market in gold. Therefore, a one way move in gold is not an easy concept for one used to seeing cyclical markets in all asset classes.

I began my study of PMs and began to purchase them in 1968 so I am not exactly a newcomer to this subject...but I am far from understanding it all and make no claim to.

Thank god that I am not an economist. If I were I would probably believe that Ben actually knows what he is about.

Sun, 03/06/2011 - 23:04 | 1025084 Bay of Pigs
Bay of Pigs's picture


No offense meant to you at all. I completely agree with what you said. I just thought I'd point out the guy knows what he's doing as far as having a good stash of the metal for himself and his family. Best wishes to you and good luck.

Sun, 03/06/2011 - 23:10 | 1025103 Snidley Whipsnae
Snidley Whipsnae's picture

No offense taken and good luck to you and your's.

Sun, 03/06/2011 - 23:52 | 1025200 Saxxon
Saxxon's picture

Snidley, thanks for the book reference but the title should be, 'Let Us Now Praise Famous Men' by James Agee w/ photographs by Walker Evans.

Mon, 03/07/2011 - 07:40 | 1025552 Snidley Whipsnae
Snidley Whipsnae's picture

Thanks Saxxon. I loaned my copy to a son in law and so I don't have it here at the house...I took a stab at the title and was obviously off by a wide margin. :)

I have edited my posts above to include the correct title of the book and posted a link to several copies for sale on Looks like I paid much more for my copy than those available now... I'm buying at the top again.

Sun, 03/06/2011 - 19:51 | 1024548 equity_momo
equity_momo's picture

Nope , about 6k , at least...

Sun, 03/06/2011 - 16:23 | 1024083 Dr. Porkchop
Dr. Porkchop's picture

Why do they always leave the green military piece of the pie out of the entitlement programs? If you could go in there and separate the necessary from the pork, I'm sure you'd find that more than half of it is corporate welfare for the defense industry.

Sun, 03/06/2011 - 21:09 | 1024761 akak
akak's picture

And why does almost everyone automatically call it "defense spending", when virtually NOTHING that the US military is engaged in can in any meaningful way be called "defense"?

At least prior to World War II, they were more honest and called it the "Department of War".  If we could update its name to more accurately reflect its function today, I would vote for "Department of Foreign Aggression, Military Occupation and US Corporate Subsidization".

Mon, 03/07/2011 - 16:02 | 1027185 New_Meat
New_Meat's picture

we like "defense" games to be away-games. - Ned

Sun, 03/06/2011 - 16:28 | 1024091 cjbosk
cjbosk's picture

"Hyperinflation is imminent."  Wow, that's some conviction.  Let's recap some realities here:

*Housing is in crapper and getting worse

*Fed printing money out of desperation that above factor gets worse

*Unemployment awful, and getting worse (even if you think the jobs numbers Friday meant anything)

*Wages are NOT inflating, they can't, and hence they won't

*Easy money a-la the fed providing bank and broker dealer prop desks with huge liquidity to create speculation ramp in commodities, all of them!

*Secular shift in consumption and leverage, refreshlingly heading right direction.  The great deleverage is occuring, hence no pick up in growth domestically


Everyone now, say it with me....deflation...Deflation is what the fed is terrified of at this point, not inflation, and hyperinflation is a completely different game all together. Ever since I've been coming to this site, all I've really seen posted are topics on hyperinflation.  Rarely do you ever see anything on deflation.


If the the economoy rolls over due to higher energy prices (which are politically induced, perhaps more domestic than geo as our current administration is wreckless on energy policy) at the consumer level, watch what happens to commodities then.  It will be very interesting to see if people are going to remain all bulled up on the space when it's all hot money right now!


Sun, 03/06/2011 - 16:34 | 1024111 Spalding_Smailes
Spalding_Smailes's picture

Gonzo Lira' is putting cheese on someone's burger as we speak.

Sun, 03/06/2011 - 16:43 | 1024139 tmosley
tmosley's picture

As opposed to delivering patio furniture?

Sun, 03/06/2011 - 18:29 | 1024384 Guy Fawkes Mulder
Guy Fawkes Mulder's picture


That's a very good point.

The economy makes a lot of sense when you think of it as centered around the Fed printing money and then giving it to the banks and global elitists. There is always the threat of dollar panics and cascading bankruptcies hanging over the head of the global economy, every step of the way to "hyperinflation".

But as long as they can keep the rest of the people poor, unemployed, and underpaid, inflation in the price of the various necessities of consumer life will be suppressed, relative to the inflation in prices the global elitists pay for what they need.

The wheels of the machine break down when people start dying in mass numbers due to mass poverty.

"Hyperinflation" like we think of in terms of black and white photographs of housewives holding wheelbarrows of currency may never come for the American consumer. Dollar panics may surely come first. #yuan #rmb #SDR #oil

Sun, 03/06/2011 - 19:40 | 1024516 Yits and the Yimrum
Yits and the Yimrum's picture

Spalding; you must be Blythe's shoe shine boy.


how are the gold shorts working for you?

everything is good, right?

load up on JPM, right?


I see now your resorting to obscure comments as the one above now that your macro-economic fantasies have been blown to pieces




Sun, 03/06/2011 - 20:14 | 1024563 Spalding_Smailes
Spalding_Smailes's picture

No gold shorts just a song I posted. I just buy stocks.Ya, look at JPM stock price back when the silver short post started (JPM downfall Lol') in Dec. $36, now $46. How many gold miners are still in the shit house .... over the last 3 months. Lol

Blast the macro post from afar but you can't refute one point in said post. Lol China reserve currency Lol'

Gold has not done much in since Oct 20th ... But it has dropped big once since my bubble housing quotes started. Silver Wheaton fell 25% like most miners, how many stops got blown out. ???? Run,run ... So many miners still sucking wind. After the mideast shit blows over and QE ends in a few months, its good night Irene.


But , but , but Turd ( who called a bounce off band support at 1,320, Pffff ... that was hard ) he told me QE could not stop, never. QE 3,4,5,6,7 ect ....Send him a rag for the egg whites in his mustache when QE ends in a few months, he will need it  .... And the fact that most gold bugs can't buy gold at 1,300-1,400 they got monkey hammered out of those gold stocks during the 13% fall or whatever it was ... 

Who cares my stock calls have run circles around gold • silver stocks ... US Steel, RIMM, MPEL, ARMH, NVDA, ZEUS, XOM Ect • Lol'

Sun, 03/06/2011 - 21:17 | 1024780 akak
akak's picture

Your every post is reflective of the typical blinkered, short-term, venal, superficial, amoral, spineless, deferent-to-power mentality of the typical contemporary American.  You deserve to rot in Hell, and you will.  I just hope they will let you in with all your paper profits.

Sun, 03/06/2011 - 21:57 | 1024878 hardcleareye
hardcleareye's picture

Ummm, guess you didn't like what he said. It would be nice if you could articulate your point(s) instead of responding in such a sophomoric manner....

Sun, 03/06/2011 - 22:30 | 1024987 akak
akak's picture

I and many others have already done so in numerous other threads ad nauseum

Frankly, this trollish naysayer and mindless babbler who steadfastly refuses to meaningfully debate or engage in honest discussion no longer deserves my respect, and will receive none.

Sun, 03/06/2011 - 23:21 | 1025122 Spalding_Smailes
Spalding_Smailes's picture

He's a troll.


I support Uncle Ben with facts. He does not like this, he is from the one world globe elite wing nut crowd.


Or he's a plain old socialist or communist who's always calling for Americas downfall.


Follow both of us for the next 2 months, see who provides insight and info for all ZHers.

Sun, 03/06/2011 - 23:22 | 1025127 akak
akak's picture

I support Uncle Ben with facts.

Enough said.

Thanks for slipping the noose of noncredibility over your own neck.

Sun, 03/06/2011 - 23:25 | 1025138 Spalding_Smailes
Spalding_Smailes's picture

See more ... Jiberish. Thankyou for making my point... !!!

Mon, 03/07/2011 - 00:21 | 1025248 cosmictrainwreck
cosmictrainwreck's picture

LMAO for real, now.....we got that twerp SpazSmmmmailes calling akak a "troll". that's rich

Mon, 03/07/2011 - 02:23 | 1025433 Bay of Pigs
Bay of Pigs's picture

TD really ought to ban Spaldings sorry ass. It takes a lot away from the PM threads. He doesn't know shit from Arbuckles coffee.

Mon, 03/07/2011 - 02:31 | 1025437 akak
akak's picture

Yeah, that Spalding is a sharp one --- he really nailed me there!

I am so ashamed now, exposed to all the world for the pathetic troll that I am.

Just one question, Spalding: For whom am I supposedly trolling?

Sun, 03/06/2011 - 18:56 | 1024431 Spitzer
Spitzer's picture

Deflation is what the fed is concerned about is why there is inflation.

So if Europe defaults first, will you buy Euro's because there will be more deflation in Europe ?

The Euro actually fell in value when they where on the cusp of default but hey, go long Euro's the next time you hear some headline about Ireland or Greece

Sun, 03/06/2011 - 16:33 | 1024102 lamont cranston
lamont cranston's picture

The best comment I've seen on hoarding gold & silver stated the following:

"I've been hoarding large numeric quantities of lead in varied weights. I'll just drop by your place and trade small quantities of my lead (if you don't like my "exchange rate") for your gold & silver when I need it."

Sun, 03/06/2011 - 16:47 | 1024149 dalkrin
dalkrin's picture

Lead and Kevlar are indispensable in the biblical wasteland approaching.

Sun, 03/06/2011 - 22:38 | 1025001 serotonindumptruck
serotonindumptruck's picture

Kevlar is easily defeated by a typical, high-powered rifle round (.30 cal and above). If you are going to invest in body armor, go with ceramic or steel plate. Yeah, you would have to contend with the additional weight, but perhaps that would be a good price to pay for a second chance.

Mon, 03/07/2011 - 00:57 | 1025314 Sedaeng
Sedaeng's picture

I own the spartan II vest system.  With Kevlar lining and plates it is rated at LVL IV protection.  I almost sold it in the last few months since Im not doing any more work in the Middle East.

Still, I contemplate selling to throw towards more physical silver.

Sun, 03/06/2011 - 17:04 | 1024188 DoChenRollingBearing
DoChenRollingBearing's picture

Other than myself, only three other guys I know own gold and silver.  And all four of us are armed to the teeth.

I read some months ago (RockyR maybe?) that almost all owners of precious metals also own lead and lead delivery systems.  If TSHTF and I get such "drop bys" coming over here, they will not leave with any gold or silver, at least until I run out of ammo.

Sun, 03/06/2011 - 17:31 | 1024264 snowball777
snowball777's picture

So you're never going to leave the house ever? Not even to trade for food? Don't think you'll get a rep as being "that guy that always tries to trade silver coins for grub"? Or robbed while doing so?

Your "zombie escape plan" needs some analysis.

Sun, 03/06/2011 - 19:33 | 1024503 Calmyourself
Calmyourself's picture

No, no I will leave but a week before I will unplug THE GREAT BIG 10'X10' FLASHING NEON SIGN "GOLD HOLDER, PLEASE ROB ME"

That ought to do it in your oh so simple world, right.. 

Because I am an unknown in my community and when it comes to actually trading gold or silver for necessities you think maybe security might be a bit tighter than now??

Sun, 03/06/2011 - 20:02 | 1024578 snowball777
snowball777's picture

I own Au, Ag, Pd, and Pt, but I have to laugh at what passes for 'planning' in the head of the average gold bug...the idea that you'll be robbed in the first place, that you'll be able to stop concerted intruders with rifles and pistols if you did, and that you'll be part of ThunderDome when TSHTF would be quaint if it wasn't so damn retarded top to bottom.

You should've just said that you'll order take out with your maples. LOL.

Mon, 03/07/2011 - 00:06 | 1025226 Calmyourself
Calmyourself's picture

Your conflation of others posts does nothing to support your own ideas.  The average "gold bug" lives in a large city where most of the population lives.  Your previous point stated we would all be robbed. I have never described any sort of SHTF situation in a romantic or adventurous way.  I have seen 3rd world shitholes mainly caused by liberal attitudes morphing to totalitarianism and do not find them attractive. However, now your saying

"the idea that you'll be robbed in the first place, that you'll be able to stop concerted intruders with rifles and pistols if you did, and that you'll be part of ThunderDome when TSHTF would be quaint if it wasn't so damn retarded top to bottom." 

Not to be rude but WTH is it?  We will be robbed or we are smart like only you are apparently and we will not be robbed.. Am I the only confused one here? 

Mon, 03/07/2011 - 02:17 | 1025427 snowball777
snowball777's picture

I think you're paranoid and not likely to be robbed at all, but that rifles and pistols wouldn't help you do anything but pacify an insecure ego in the unlikely event that you were.


Sun, 03/06/2011 - 22:30 | 1024994 RockyRacoon
RockyRacoon's picture

It takes a certain type of person at this stage of the game to accumulate PMs.  That same type has a propensity to protect same.   Hence, the lead and food stores.

Sun, 03/06/2011 - 22:55 | 1025063 serotonindumptruck
serotonindumptruck's picture

Very true. Most individuals who have adequately prepared realize that the luxury of travel will be severely curtailed. Survivors will band together for mutual protection and benefit. The success of these "collectives" will of course be contingent upon geographic proximity of the individual families' residences and the types of defences employed. Movement outside of these zones will be discouraged and will only be undertaken with great caution.

The concept that people will continue to enjoy freedom of movement or travel is false. This will likely not be an option in many areas.


Sun, 03/06/2011 - 16:35 | 1024110 gaillard111
gaillard111's picture

Hello all. Even if I agree almost completely on what Egon says, don't forget he is a big gold and silver metal seller.

Cheers from Switzerland

Sun, 03/06/2011 - 17:42 | 1024287 FoieGras
FoieGras's picture

Talking his book just like the mutual fund bastards on CNBC are talking their stock book. Same old.

Sun, 03/06/2011 - 19:04 | 1024440 IQ 145
IQ 145's picture

 Misusing the term "hyperinflation"; which has become "internet speak" for plain old inflation, certainly doesn't help his creditability.

Sun, 03/06/2011 - 16:37 | 1024114 gnomon
gnomon's picture

Any guesses on CD/MMA rates a year from now?

And will there be a period of time in which CD rates SOMEWHAT keep up with inflation before we reach the Endgame?

If a guy played it close to the vest with his purchases during the Volker Era of skyrocketing interest rates, one actually came out ahead of inflation.

(I really think the Endgame will occur sooner and catastrophically, but I am trying to be an optimist with these questions).


Sun, 03/06/2011 - 16:37 | 1024116 zaknick
zaknick's picture

Know your country and its masters:


The plot to kill JFK originates from the very same forces that were working together on the Bay of Pigs and the plots to assassinate Fidel Castro: All these forces had their own reasons to recapture Cuba and to hate Kennedy, whom they also blamed for the failure of the Bay of Pigs.

These groups were 1) The CIA with the approval of some of the highest government officials (like Johnson, Hoover, Ford and Nixon) 2) The anti Castro Cuban exiles 3) Mafiabosses Sam Giancana , Carlos Marcello and Santos Trafficante and 4) wealthy industrialists and Texan oilmen like H.L. Hunt, Syd Richardson and Clint Murchison. George H.W. Bush has documented connections to all four groups.

Sam Giancana states in his biography that he knew Lyndon Johnson and Richard Nixon personally (to read the page click here), as well as the aforementioned oil millionaires and George Demohrenshildt (to read the page click here), , and that they planned the JFK assassination together. James Files, the confessed grassy knoll assassin who fired the fatal shot into JFK's head, did not only work for Sam Giancana, but was recruited in the CIA to train Cuban exiles for the Bay of Pigs, by none other than David Atlee Phillips. He claims that one of his later senior supervisors in covert operations was George H.W. Bush. Lyndon Johnson told his mistress Madeline Brown: "It was the CIA and the Oilboys". Bush was both ! In addition he was up to his neck in the Bay of Pigs and the anti Castro movement. What is the chance he could not have known about the plot?

David Atlee Phillips was also the CIA supervisor for Lee Harvey Oswald, a heroic man that was unwittingly chosen to take the blame as the patsy, while led to believe he was to penetrate the group of assassins in order to sabotage the plot and prevent JFK's assassination.

On November 22, 1963 a criminal power elite seized control through a coup d'etat and a subsequent cover up of the truth that lasts until today. This is because they strengthened their position ever since. The key to unlocking the truth lies in one of their most powerful assets: the mainstream media. That is why you were not aware of most of the above !

It is clear that Bush protected the cover-up, as well as individuals and CIA elements that were involved in the JFK assassination. Although the above may not be conclusive evidence for Bush's involvement or knowledge about JFK's murder, all together a bigger and more criminal picture than many of us dare to imagine, emerges, with a direct connection to the political situation of today.

"And so, my fellow Americans, ask not what your country can do for you; ask what you can do for your country."

"A nation which has forgotten the quality of courage which in the past has been brought to public life is not as likely to insist upon or regard that quality in its chosen leaders today - and in fact we have forgotten."

"Do not pray for easy lives. Pray to be stronger men."

"A man does what he must-in spite of personal consequences, in spite of obstacles and dangers and pressures-and that is the basis of all human morality."

"A man may die, nations may rise and fall, but an idea lives on. "

John F. Kennedy

Sun, 03/06/2011 - 16:54 | 1024169 Snidley Whipsnae
Snidley Whipsnae's picture

"Jim Garrison: Who killed the President?

David Ferrie: Why don't you fucking stop it? Shit! This is too big for you, you know that? Who did the President? Fuck! It's a mystery. It's a mystery wrapped in a riddle inside an enigma! The shooters don't even know! Don't you get it?"

"Jim Garrison: I never realized Kennedy was so dangerous to the establishment. Is that why?

X: Well that's the real question, isn't it? Why? The how and the who is just scenery for the public. Oswald, Ruby, Cuba, the Mafia. Keeps 'em guessing like some kind of parlor game, prevents 'em from asking the most important question, why? Why was Kennedy killed? Who benefited? Who has the power to cover it up? Who?

Sun, 03/06/2011 - 17:22 | 1024245 Yen Cross
Yen Cross's picture

Beat it! By the way is that (MONT BLANC) ?

Sun, 03/06/2011 - 17:39 | 1024276 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

Who killed the President?

This may very well answer that:

(duration = one hour and a half)

Sun, 03/06/2011 - 20:10 | 1024602 Snidley Whipsnae
Snidley Whipsnae's picture

Thanks for the link. I went there and watched the majority of the clips.

I believe that I learned more from Garrisons book and Mailers book on Oswald (Oswald's Tale: An America Mystery)...but I did not agree with Mailer's conclusions re Oswald. Oswald was definitely a patsy and was set up by a cast of many, many people. Mailer's book, since he had access to the Kremlin Files on Oswald, was very interesting.

I believe that some US Agency, or various agencies, keep a group of potential patsys on the string at all times...and, this is more than a hunch on my part.

I read a lot of books about the assination, most back in the 60s - 80s and have probably forgotten most of what I read so many years ago...but I never bought the lone gunman theory.

Do you know how much adrenaline gets flushed into your system when you view your first deer through a rifle scope? It is not uncommon for even a good young shooter to completely miss his first attempt at a deer. Oswald had never shot a deer. Can you imagine the adrenaline in Oswald's system if he had viewed JFK through the scope of a loaded rifle? No way he pulls off that shot. It took an experienced sniper, an experienced killer, probably several of them, to kill JFK.  

Since the Mafia is known for 2 shots in the back of the head with a pistol/revolver and not known to have experienced snipers on call I believe that the shooters were trained by some military and had combat experience and confirmed prior kills. No one was going to trust this job to a novice kid like Oswald.

If the snipers missed there would have been a gutting of  Johnson, the CIA, DEA, Secret Service, some high ranking military officers, etc. Do you believe that those that wanted JFKs death would risk their careers and maybe their lives on Oswald pulling this off? I think not.

Oswalds presence in the book depository was needed for two things. One: the snipers pulled off the killing and Oswald took the fall. Two: the snipers missed and Oswald took the fall. End of story except we still don't know who ordered the shooting... Follow the money...Follow the handoff of power.

Sun, 03/06/2011 - 22:36 | 1025011 Yen Cross
Yen Cross's picture

Do you proof read your worthless diatribe? It's too easy teasing you.

Sun, 03/06/2011 - 23:16 | 1025114 Snidley Whipsnae
Snidley Whipsnae's picture

Someone has to post material interesting enough to engage other readers... You certainly do not.

BTW, I left you a neg.

Sun, 03/06/2011 - 16:38 | 1024125 monopoly
monopoly's picture

Man, this is an active board for Sunday. It is important to remember that while most of us get it, we are just a tiny minority of the masses and they continue to watch Brian, Kaite and Diane for there "news". Your really think MSM is going to tell the truth or even what might occur. And with the education of the masses declining more each year they just look for soundbites to tide them over till their next Twinkie dessert shows up.

And yes, oil can correct, so can gold, silver, commodos, etc. But that for me is buy more on any dip. How can so many know so little about so much that is going on.

And, right, Middles East will blow over, just a few more days, after all, just because they have been killing each other for over 3,000 years, this is just a little family feud.

Drives me bonkers when I think of how the people or sheeples of this country have been brain washed.

Sun, 03/06/2011 - 16:39 | 1024127 Rusty Shorts
Sun, 03/06/2011 - 17:17 | 1024222 cossack55
cossack55's picture

Damn, RS. You, my good man (?), are a Utube Guru. I loved your earlier post regarding confiscation.  Knew it was happening, first time I "viewed" it. Thanks.

Sun, 03/06/2011 - 19:52 | 1024284 Rusty Shorts
Rusty Shorts's picture


Sun, 03/06/2011 - 18:07 | 1024341 snowball777
snowball777's picture

The check with the WF stamp on the back was made out to...CASH - Clue!

My guess: "Ann" has a coke problem and daddy's not smart enough to figure out his little girl is putting his dinero up her nose.

Sun, 03/06/2011 - 17:15 | 1024218 whatz that smell
whatz that smell's picture

buckle up, btchz... turbulence ahead.

Sun, 03/06/2011 - 17:19 | 1024235 Yen Cross
Yen Cross's picture

I can describe that portrait, with one word! (ELOQUENT)

Sun, 03/06/2011 - 17:20 | 1024242 PulauHantu29
PulauHantu29's picture

Yes, I remember Gordon Brown, another Shill of Big Banks. Here is an older ZH article on Mr. Brown:

"Did Gordon Brown Sell UK's Gold To Keep AIG And Rothschild Solvent; More Disclosures On How The NY Fed Manipulates Gold Prices"



Sun, 03/06/2011 - 17:32 | 1024266 JR
JR's picture

The Egyptian people carrying signs and no weapons were not “rioting”: it is an insult to humanity to call Egypt’s freedom protest a riot.

The Middle East “time bomb” depends on what Israel does – as it always has.  Israel was transplanted into the Arab world; an aggressive Israel has created the tensions that have existed all these years.  If there’s going to be a “time bomb,” it will be Israel that lights it.  The last thing Egypt wants is a war with Israel...  It’s Israel that always wants conflict – although I’ve noticed that it’s always the U.S. Military that does the fighting.

The ME is a time bomb only in that Murbarak sold out his people and the rest of the ME leaders to the US and Israel.

Egypt appears to be on track, IMO, for representative government. It was not a military coup; the people did it all and there’s no escaping it. The military did not organize these people to get out in the streets by the hundreds of thousands; the full story is there for all to see in the YouTube video, Egypt Burning. To call this a riot is unconscionable.

The Middle East is not a time bomb: it is the diffusion of the time bomb.  Israel is going to undergo a major change in her strategic importance whether the U.S. gets involved or not.  Whatever we do, it’s never going to be the same again for Israel and for U.S. interests - the corporations and the bankers and others who have done business based on the support of Israel against the interest of the Arab street.   

Possible representative governments for many nations in the ME could mean peace, providing that the US uses this opportunity to take a harder line against Israel, especially on settlements, and makes her fit in with her neighbors rather than as a catalyst for war.

And by the way, Madame de Pompadour was Louis XV’s mistress. The King’s mistress is Obama; Louis is Bernanke. The article seems to have gotten their roles reversed. Obama was owned by the Rothschild wing of the human race before he even climbed on the state with other members of that wing…senators McCain and Clinton.

Sun, 03/06/2011 - 17:54 | 1024315 Snidley Whipsnae
Snidley Whipsnae's picture

"Egypt appears to be on track, IMO, for representative government."

Yeah, we have representative government here in the US. How well is that working for us?

Sun, 03/06/2011 - 17:59 | 1024331 Yen Cross
Yen Cross's picture

Must be a TYPO! The Frenchness is taming your free will?

Sun, 03/06/2011 - 20:10 | 1024606 snowball777
snowball777's picture

As well as one might expect with a small fraction of the eligible voters exercising that right.

Sun, 03/06/2011 - 17:40 | 1024279 hognutz
hognutz's picture

Can't wait until Saudia Arabia's day of rage, oil will be statospheric................

Sun, 03/06/2011 - 17:41 | 1024282 FoieGras
FoieGras's picture

Hilarious article. The author uses all the old hyperboles with the occasional "imminent" thrown in.

All this is nothing new and has been known for years. No need to repeat the same record every other month. The amount of new analysis or facts in this article is zero.

Sun, 03/06/2011 - 18:21 | 1024367 Misean
Misean's picture

Except for that CCI chart and the analysis of that, yep, nothing new. But I suppose between your deranged chuckling and choking on all of the hyperboles you imagined, you neglected to actually cite any. Shame that, but it's easier to troll that way, I suppose.

Sun, 03/06/2011 - 21:16 | 1024774 DonutBoy
DonutBoy's picture

+1. Exactly.  Wasted my time reading every word.  Not one fact or intelligent analysis of facts added.  Lame.


Sun, 03/06/2011 - 21:26 | 1024797 jomama
jomama's picture

it's not going to be an epiphany for reg ZH readers, but the article lays out its case with simplicity, and the masses need easily digestible material.

Sun, 03/06/2011 - 22:35 | 1025006 RockyRacoon
RockyRacoon's picture

Das rite.   Gotta break in the newbies gradually.   Don't want any of them hanging themselves with their power ties off the balconies of their condos.   Easy does it.

Sun, 03/06/2011 - 17:55 | 1024319 buzzsaw99
buzzsaw99's picture

This confirms that rates will now start a major and rapid rise which is likely to reach the mid-teens or higher...

I'll take the other side of that bet.

Sun, 03/06/2011 - 23:19 | 1025119 Snidley Whipsnae
Snidley Whipsnae's picture

+1... Likewise.

Sun, 03/06/2011 - 18:14 | 1024355 Yen Cross
Yen Cross's picture

Ok! On an REAL note. The DXY is up in the interbank trade. I also need to correct the Sydney fixing comment I made. Tokyo would be the correct marker.(Appologies) Wellington,Sydney, Tokyo. Best wishes.

Sun, 03/06/2011 - 18:35 | 1024393 Yen Cross
Yen Cross's picture

Good question! Your guess is as good as mine. Zero! I suspect the Royal Relief package will be a little too late. I am open to comments on the topic. You have a good mind.

Sun, 03/06/2011 - 18:22 | 1024376 Caviar Emptor
Caviar Emptor's picture

Yes the DELUG-ional Bernank has spun "A Tale of Two Economies": One real and the other one paper. 

The paper economy is doing just fine. All that was needed was to "Paper-Over" the old "bad" paper with some fresh crisp shiny new paper, and everything is right as rain!

Meanwhile in the old economy, or, as we call it, home, things ain't so rosy. In fact after 3 years it's looking almost identical to Japan (sans the exports). We just sink and sink and sink into the deflationary muck. We keep waitin for some of that Trickle Down to dribble down the legs of those Wall Street Titans, holding the world on their shoulders mind you, but we ain't done got trickled yet!

Bernank's own version of Louis the XVth's statement should have been: Apres moi le RE-FLUGE. 

Sun, 03/06/2011 - 18:40 | 1024405 Scorpio69er
Scorpio69er's picture

I'm grimly amused by this notion of "protecting wealth with gold and silver", if indeed a massive worldwide economic collapse occurs. You're looking at riots, civil wars, WWIII, and perhaps even nuclear exchanges. This type of scenario means a total collapse of society and the rule of law. You'll be lucky to survive (or, rather, unlucky to survive). You can't eat gold or silver, nor can anyone from whom you might think you can purchase food or other vital, scarce supplies. Another metal -- LEAD -- will rule the day, and he who has the most will simply take whatever he needs.

Do NOT follow this link or you will be banned from the site!