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Is The Fed TRYING To Force A Surge In Commodity Prices And Input Costs? Diapason Explains Why Hyperinflation Is Blackhawk Ben's End Goal

Tyler Durden's picture


A Fed paper released in September, which we luckily missed as otherwise it would have led to the collective death through uncontrollable foaming in the mouth of the entire Zero Hedge staff, was "Oil Shocks and the Zero Bound on Nominal Interest Rates", in which author Martin Bodenstein (an econ Ph.D.) argues that oil price shocks (i.e., surges in the price of oil such as the one we are about to experience courtesy of a fresh trillion in liquidity about to be unleashed by the Fed) are... wait for it... beneficial to GDP and stimulative to the interest-rate sensitive parts of the economy. To wit: "In fact, if the increase in oil prices is gradual, the persistent rise in inflation can cause a GDP expansion.". Yes you read that right. The Fed is stealthily floating the idea that a surge in oil prices will be for the greater good. In essence, the Fed is telegraphing that while it acknowledges that oil is about to jump to over $100, it won't be as bad as those with a functioning brain dare to claim. And, as we show below, it will actually be a very good thing! While we would probably get a massive lethal subdural hemorrhage if told to argue a view so blatantly and stupefyingly demented, insane and, simply said, wrong, as that espoused by Bodenstein, we are glad that Sean Corrigan of Diapason has gone the extra mile to not only expose the Fed charlatans for their voodoo gimmickry in this narrow topic, and brings up an even more critical idea, which is that the Fed "actually welcomes the current surge in the prices of many of the staples of everyday life; that it actually exults in the drain being exerted on family budgets; that it revels in the squeeze on profit margins being suffered by already-struggling small businesses, because it imagines this will serve to lower the reckoning of the ethereal construct of a generalized, future real interest rate and that this alone will serve to shower riches upon all who are presently suffering, in comparison for the present woes."

That nobody has reached this conclusion before is explainable - it is something only the brain of an illogical, demented, perverted genocidal madman's brain can come up with. Which is why we are now convinced the Fed is hoping for not only mild inflation, but an outright surge in prices. And since the Fed is confident that it can stop hyperinflation (as did that other idiot Rudy von Havenstein), the only logical outcome is that real, prevailing hyperinflation is what is imminent as this is precisely what the intermediate goal of Fed policy ultimately is!

From Sean Corrigan's Material Evidence October 28 note.

In a self-immolating exercise in reductio ad absurdum, this superficial reasoning has led the Fed right up against the so-called 'zero-bound" in nominal rates (one which a dedicated inflationist could, in any case, make a great deal less constraining if $1 trillion in excess bank reserves did not accrued positive interest). Ergo, the only way the Doves feel they can deliver more "stimulus" via lower real rates is (a) to force down yields at longer and longer maturities - and rational capital allocation and return on invested income, go hang! - or (b) to push up either the rate of price appreciation itself, or, at the least, expectations thereof. Nominal rates down and/or prices up = real rates down -> spending up is the alpha and omega of their plan.

This last has even been taken to the ludicrous extremes that an FRB discussion paper last month, entitled 'Oil shocks and the Zero Bound, purports to argue that while higher oil prices normally lower output by pushing up inflation, once under conditions of ZIRP, the higher oil price raises inflation expectations, reduces the prospective real interest rate, and therefore stimulates the interest-rate sensitive parts of the economy!!!!

Oh, Brave New World! Here we are supposed to concur in the notion that a man whose job is at risk because his employer can no longer afford the dearer diesel he needs to run the factory, and whose commute to that work has suddenly become that much more expensive, too, will be inspired both by this heightened anxiety for his livelihood, as well as by his shrunken disposable cash flow, to take out a loan - which he would otherwise never have countenanced contracting - in order to buy a newly-built house at his lower real yield!!!!

Additionally, in this Bread from Stones scenario, we are supposed to imagine that an erstwhile despairing entrepreneur gets out of bed one morning and cries, "Hallelujah! The cost of coffee is up, cotton prices are surging, copper wire has just become exorbitant - I better go start a business before it's too late!"

Well, yes, perhaps in those particular industries assuming he has the aptitude, the means, and the ability to persuade someone to finance his eureka moment - but in any other line of business? Really?!?

Here we must force ourselves to pass over the objection that oil-driven inflation and lowered output are not necessarily such unfailingly automatic bed-fellows (see the late Boom) with only the brief observation that this confluence generally originates from either the second-order effects of a prolonged, frictional price disco-ordination, or from CB action to rein in a generalized price rise which only its own, previously over-accommodative policy could ever have allowed to occur in the first place (Hint: with an unchanged supply of money, more spent on one item implies less spent on another).

Instead, we return our focus to this Laputan piece of pseudo-scientific mumbo-jumbo for what it reveals about the muddle-headedness which informs both the ineffable Bernanke Fed and its far too numerous counterparts elsewhere.

In confounding cause with effect, in sacrificing the micro to the macro, in falling victim to any number of category errors and logical non sequiturs; in pursuing, with unthinking mathematical rigour, a set of utterly unreasonable premises to the point of an untenable - indeed, a highly damaging-conclusion, we have a prime example of everything that is wrong in mainstream economics and a glaring illumination of why the state interference which this typically seeks to justify has proven so counter-productive to this-or, indeed, to any other recovery of the past 80 years.

Perniciously, Mssrs Bodenstein, Guerrieri, and Gust even argue that the increasing material scarcity of an oil "shock" can be even more effective at dissolving the 'zero-bound'-and so-err-lessening the general material scarcity being suffered in the slump- if the price rise progresses at such a steady pace that people expect it to continue for some fairly protracted period and if the monetary authority now makes it unequivocally clear that it will not respond to this rise in its habitual manner.

In other words, this strongly insinuates that the Bernanke Fed actually welcomes the current surge in the prices of many of the staples of everyday life; that it actually exults in the drain being exerted on family budgets; that it revels in the squeeze on profit margins being suffered by already-struggling small businesses, because it imagines this will serve to lower the reckoning of the ethereal construct of a generalized, future real real interest rate and that this alone will serve to shower riches upon all who are presently suffering, in comparison for the present woes.

Pushing this line of argument up to the hilt, it also leads to the idea that the Fed-having already stretched credulity by consulting the less than disinterested counsel of the primary dealers regarding the size of its next assault on the free market-should also start buying baskets of commodities! Truly, that way madness lies-the madness of Wallace and Warren and Roosevelt's depression-prolonging circus of restrictionist and inflationist cranks.

Never mind that it is not the general, but the specific estimation that his own, uniquely-determined, residual entrepreneurial income (i.e., the one left to him after deducting the costs of, e.g., his now pricier commodity inputs, Mr Bernanke) will exceed his tangible, pecuniary interest costs (not his airy-fairy, abstract, modelled ones) which incentivises the business leader to act, but even under Blackhawk Ben's own, Neo-Keynesian framework, there is something of a paradox at work here.

This lies in the fact that, however implicit it may be in the obscurantism of the Beelzebub of Bloomsbury's magnum opus, in an economy locked into partial idleness (and a rather more widespread wastefulness) by the vicissitudes of a market-hindering institutional and political setting, the lubricative effect of a monetary debasement only comes about when that inflation is unanticipated.

Put another way, it is only when people who have been withholding previously saleable supplies of goods and labor from a now inconducive marketplace are tricked into releasing them at unchanged nominal-but lower real-prices that a purposeful dose of inflation can hope to offer any palliative effect. Conversely, if they do recognize what is afoot; if they do not succumb to so-called 'money illusion', then they will simply seek to reprice their services to offset the change and so no discernible impact on output or employment will result.

Yet here we have Bernanke and his breathless battalions of banknote bundlers about to embark upon the perilously disruptive process of engaging in a gross manipulation of asset values, interest rate settings, and currency parities by telling people explicitly that prices will both rise and rise more rapidly and for longer, and all with the Fed's unreserved blessing and encouragement!

In other less poetic words, hyperinflation is coming, and Bernanke is welcoming it with open arms.


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Sat, 10/30/2010 - 18:31 | 688304 russki standart
russki standart's picture

End the FED, Bitchez!

Sat, 10/30/2010 - 18:41 | 688315 UGrev
UGrev's picture

whoever junked you needs an asskickin' and a brain exam. 

End the Fed ∞+1

Sat, 10/30/2010 - 22:26 | 688569 UGrev
UGrev's picture

Whomever junked me needs a freaking history lesson on how many central banks were abolished already and why. We don't need a central bank. Never have. 

Sat, 10/30/2010 - 23:18 | 688607 Careless Whisper
Careless Whisper's picture

i think mister rothschild and mister j p morgan would disagree with you. a central bank is needed to further the big banks control of world-wide finance. most people have no idea how much power the big banks have --- just take a look at a case where goldman is referred to as the "victim" and the hot tub time machine federal prosecutors think it's 1980s east germany, and want a secret trial to protect the "victim's" trade secrets --- an admitted high frequency trading program that can "manipulate markets in unfair ways".


Sat, 10/30/2010 - 23:22 | 688611 UGrev
UGrev's picture

Of course THEY would disagree but THEY can collectively kiss my ass. I don't give a rats nuts what they think. ;)

Sun, 10/31/2010 - 20:42 | 689600 rocker
rocker's picture

You are right. End the FED as we know it.  If they are not fully transparent they are prone and will betray the nation, in order to benefit the elite and Central Bankers of choice. The FED and Treasury manipulate the bankers, the media, congress, the senate and yes even the president. Regardless of party.  The Fed is the enemy of the people. And only a very few understand that. If we only knew how much and many they really give to those bankers of choice. Just look at what they did for Goldman Sachs and JP Morgan. It is so obvious that the FED is nothing more than a ponzi scam .  If you save money in a bank at what ever interest rate, you should not loose purchasing power. That alone is proof that the FED is the Enemy of the American People. They steal your savings right in front of your eyes using the term, our dual mandate is.............

Sun, 10/31/2010 - 22:09 | 689790 macholatte
macholatte's picture


IMHO Grayson is a Progressive Party lapdog and that makes him dangerous. However, if Ron Paul or Bill Black had a firm grip on Grayson's leash, then you might have a seriously nasty junk yard dog biting at the Fed's crotch and that could be a good thing for everyone.


In a closed society where everybody's guilty, the only crime is getting caught. In a world of thieves, the only final sin is stupidity.
Hunter S. Thompson

Sun, 10/31/2010 - 23:29 | 689894 doolittlegeorge
doolittlegeorge's picture

I miss that guy.  Never had words ever make me laugh harder or louder.  People really wondered and even blurted out "what are you reading"?  Imagine that...someone who wonders "what you're reading"??!!!!!!

Mon, 11/01/2010 - 07:45 | 690103 Diggintunnels
Diggintunnels's picture

The absolute unchecked power of the FED should scare every American.  Think about the market over the last year, a little bit of inside knowledge from the souce could make untolds amounts of money with no risk.  This kind of power via information is toxic and no one person should have this kind of power.

Sat, 10/30/2010 - 18:59 | 688348 financeguru500
financeguru500's picture

I don't know who junked you but i disagree with junking. I will say this though,

If we end the Fed, who will be there to take their place? As the collective people are ignorant about most things and unable to make good decisions(just look at how the tea party got bastardized by Palin and the Republicans, it was never a republican movement), the people with the loudest voices (most money) will take place of the Fed with their institutions.

If I were a betting man, I would place my money on the Fed being ended purposely by TBTB (the bankers that be, aka Rothschilds and IMF) only to be replaced by another form of banking. I'm guessing the IMF is being established to be the world monetary creator to take the place of all currencies. With the IMF's move to sell gold lately, i would be careful to buy too much gold as that is an indication of things to come (maybe owning gold becomes illegal, maybe the new form of world currency causes gold to be extremely devaulated while other things keep their value).

Sat, 10/30/2010 - 19:08 | 688354 Charley
Charley's picture

Giving bankers control of a nation's money and making it responsible for management of the economy is like handing a pedophile a bottle of Viagra, a fifth of scotch, and a classroom full of preschoolers.

On the other hand, if you take it from the Fed, control of the nation's money reverts to congress, who already proved they were incapable of acting responsibly when they delegated that power to the Fed.

Sat, 10/30/2010 - 19:12 | 688360 financeguru500
financeguru500's picture

Exactly! And as you have recently seen, all these mainstream people who were responsible for the problems are coming out and pointing fingers, who are they pointing at and why?

They will be a part of the new system that gets created and which will be led by the IMF.

Sat, 10/30/2010 - 19:29 | 688374 Bugman82
Bugman82's picture


Look at where the blame is going.  Freaking rediculous.

Sat, 10/30/2010 - 20:27 | 688439 Boba Fiat
Boba Fiat's picture

LOL, I don't even see "The Fed" as an option. 


Why aren't Paulson and Bernanke and Geithner and Obama getting a send off like Mussolini?  What kind of a people have we become?

Sat, 10/30/2010 - 23:18 | 688609 goldfish1
goldfish1's picture

Why aren't Paulson and Bernanke and Geithner and Obama getting a send off like Mussolini?  What kind of a people have we become?

What she said.

Sun, 10/31/2010 - 22:36 | 689826 TaggartGalt
TaggartGalt's picture

What kind of a people have we become?

Well, here is a clip from a movie that explains it so well.  So funny, and true, makes me want to cry!

Sun, 10/31/2010 - 17:45 | 689408 Turd Ferguson
Turd Ferguson's picture

"Why aren't Paulson and Bernanke and Geithner and Obama getting a send off like Mussolini?  What kind of a people have we become?"

Mussolini's errors/crimes were plain and obvious to all Italians.

Our rulers have, so far, avoided the same fate because so few Americans understand how and why they are responsible. The addle-minded, prozac-gulping masses will continue to allow this travesty until the damage is complete and the republic is destroyed.

Sun, 10/31/2010 - 18:15 | 689432 hedgeless_horseman
hedgeless_horseman's picture

I understand how and why they are responsible, but I have not taken any offensive action, only defensive. I am not a prozac user, however, addle-mindedness is a side effect of good whiskey, which I do gulp on occasion.  I am sure I have a share of the responsibility for this travesty.  I pray that in some way practicing disintermediation helps me to atone for my fiscal and political sins.  Amen, and slainte!

Sun, 10/31/2010 - 20:46 | 689611 FEDbuster
FEDbuster's picture

Everyone with a mortgage, credit cards, car loan, etc... should stop paying on them now!

Starve the beast.

Sun, 10/31/2010 - 04:53 | 688749 A Man without Q...
A Man without Qualities's picture

The main reason why US society is doomed is that the majority is just too fucking stupid and ignorant.  Too few have the ability to comprehend the complex issues or even use available information to form an opinion - they have their views and then seek the information that supports it. I imagine those men who created the Declaration of Independence must be looking down on the nation they gave birth to and weeping.


"Already long ago, from when we sold our vote to no man, the People have abdicated our duties; for the People who once upon a time handed out military command, high civil office, legions — everything, now restrains itself and anxiously hopes for just two things: bread and circuses"

Sun, 10/31/2010 - 15:19 | 689239 unununium
unununium's picture

The issues are not complex.  The lies are.

Give the people a little more credit.  It's our only hope, anyway.

Sun, 10/31/2010 - 17:50 | 689413 High Plains Drifter
High Plains Drifter's picture

Yes sweet thang, (Denniger) was bumping his know-it-all gums on MSNBC this afternoon. Ha ha ha, this guy is too much.  Pika has been on there a long time on his knees and kissing Denniger's ring. Its those wascally democrats.........You try and tell them anything and you piss off el gran douchebag himself (Karl) and pretty soon you are out on the door step looking in.

Sun, 10/31/2010 - 19:47 | 689514 trav7777
trav7777's picture

lol...too true.

If they keep Douchinger coming back it'll be because he is the bitch and gives them what they want.  Some kinda political blame bullshit.

Sat, 10/30/2010 - 19:49 | 688390 mynhair
mynhair's picture

So control reverts to CONgress, what is the problem?

Elect idiots and the $ dives.  Elect some with brains above the level of a cat, and the $ soars.

Lesson would be: don't vote for idiots.

Sat, 10/30/2010 - 23:50 | 688629 ZakuKommander
ZakuKommander's picture

I do not believe that anyone with brains above the level of a cat is running.

Sun, 10/31/2010 - 09:59 | 688828 Oh regional Indian
Oh regional Indian's picture

I believe  electronic voting machines make the entire vote-scam meaningless.

Careful manipulation of public perception make all races close (or close enough). From there, a little software manipulation is all it takes. In fact, early voters are seeing problems already.

2000, 2004, 2008.... enough time for the perps to wipe away their paw prints from the crime scene.

Remember Michael Connelly?


Sun, 10/31/2010 - 23:44 | 689912 Urban Roman
Mon, 11/01/2010 - 09:36 | 690258 Oh regional Indian
Oh regional Indian's picture

Correct Urban.



Mon, 11/01/2010 - 08:23 | 690140 Shakey
Shakey's picture


Mon, 11/01/2010 - 10:17 | 690386 Dismal Scientist
Dismal Scientist's picture

No need to insult cats.

Sat, 10/30/2010 - 20:00 | 688402 fiftybagger
fiftybagger's picture

Ever think that maybe the framers thought your thoughts 200 years before you ever lived, and for that reason enshrined bimetallism?

Sat, 10/30/2010 - 23:08 | 688597 hungrydweller
hungrydweller's picture

Ladies and Gentlemen - we have a winner!

Sun, 10/31/2010 - 23:20 | 689874 Temporalist
Temporalist's picture

Congress didn't really delegate the power to the Fed a handful of bankers and their lapdogs did in a secret coup to "save" the global financial system but a war actually kept that system going.

“The few who understand the system, will either be so interested from it’s profits or so dependent on it’s favors, that there will be no opposition from that class.”
-Rothschild Brothers of London, 1863

"The financial system has been turned over to the Federal Reserve Board. That Board administers the finance system by authority of a purely profiteering group. The system is Private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money"
-Charles A. Lindbergh Sr., 1923

"A great industrial nation is controlled by it's system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world--no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men."
-President Woodrow Wilson

"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and it's issuance."
-James Madison

"I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power (of money) should be taken away from the banks and restored to the people to whom it properly belongs."
-Thomas Jefferson

“The money powers prey upon the nation in times of peace and conspire against it in times of adversity. It is more despotic than a monarchy, more insolent than autocracy, and more selfish than bureaucracy. It denounces as public enemies all who question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe.”
-Abraham Lincoln

Mon, 11/01/2010 - 07:45 | 690102 Vorpal1
Vorpal1's picture

So even powerful individuals cannot stop the evolution of institutions to ever larger ones. Just like the cosmos, complete with a black hole at the center.

Sat, 10/30/2010 - 19:12 | 688361 nuinut
nuinut's picture

What makes you think the IMF gold was anything more than countries buying back pledges made to the IMF?

No physical gold changed hands, which is why they wouldn't sell to Sprott.

Multiple entry book keeping. IMF never necessarily had any gold. Just another tool to quiet the golden canary.

Hyperinflation brings the gold revaluation.

Think about it. Who currently holds the bulk of the world's gold? TPTB.

Sat, 10/30/2010 - 19:16 | 688363 financeguru500
financeguru500's picture

Hmm, good point. I do feel like gold is the only true thing that holds value compared to fiat currencies. I just have a nagging feeling that in the creation of a new world currency, something will be done to negate all value of gold. If gold were allowed to continue to rise it would destroy everyones trust of fiat currency, though that may be needed to end the current fiat currencies for the rise of the new currency. Too many questions of possibilities.

Sat, 10/30/2010 - 20:07 | 688413 fiftybagger
fiftybagger's picture

"something will be done to negate all value of gold"


There's only one thing that can do that, and it can't happen while I'm still here......


15 And he had power to give life unto the image of the beast, that the image of the beast should both speak, and cause that as many as would not worship the image of the beast should be killed. 16 And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads: 17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name. 18 Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.


Revelation 13
King James Version
Sat, 10/30/2010 - 20:39 | 688450 Boba Fiat
Boba Fiat's picture

Ronald Wilson Reagan?!!  6 letters in each name!!  (That's what I was told in 1980).


Actually, many scholars think that six hundred sixty-six was a numerical code referring to Nero.  The text was written to Christians living under Roman rule.  Roman soldiers would screen John's letters sent from Patmos, so he had to include certain puzzles that only Hebrew-Christians would recognize. 


Besides, rather than watch something slowly coming toward you, why not run out and destroy it if you know it's coming?  Who says we have to sit back and lazily watch a one-world currency evolve under a single dictator?  Hell, I'll buy your property for gold and ammo, right now.  I'll give you food and heirloom seeds for silver.  Who's game?  Sic semper tyrannis.

Sat, 10/30/2010 - 22:33 | 688576 fiftybagger
fiftybagger's picture

"why not run out and destroy it if you know it's coming?"


Because it is ordained with a higher purpose.  You couldn't destroy it if you wanted to.   And even after it is destroyed, IT COMES BACK:


3 And I saw one of his heads as it were wounded to death; and his deadly wound was healed: and all the world wondered after the beast. 4 And they worshipped the dragon which gave power unto the beast: and they worshipped the beast, saying, Who is like unto the beast? who is able to make war with him? 5 And there was given unto him a mouth speaking great things and blasphemies; and power was given unto him to continue forty and two months. 6 And he opened his mouth in blasphemy against God, to blaspheme his name, and his tabernacle, and them that dwell in heaven.


Revelation 13
King James Version


"Live by the sword, die by the sword"  Ever heard that?  Here's where it comes from:

52 Then said Jesus unto him, Put up again thy sword into his place: for all they that take the sword shall perish with the sword. 53 Thinkest thou that I cannot now pray to my Father, and he shall presently give me more than twelve legions of angels? 54 But how then shall the scriptures be fulfilled, that thus it must be?


Matthew 26
King James Version


9 And the third angel followed them, saying with a loud voice, If any man worship the beast and his image, and receive his mark in his forehead, or in his hand, 10 The same shall drink of the wine of the wrath of God, which is poured out without mixture into the cup of his indignation; and he shall be tormented with fire and brimstone in the presence of the holy angels, and in the presence of the Lamb: 11 And the smoke of their torment ascendeth up for ever and ever: and they have no rest day nor night, who worship the beast and his image, and whosoever receiveth the mark of his name. 12 Here is the patience of the saints: here are they that keep the commandments of God, and the faith of Jesus.

13 And I heard a voice from heaven saying unto me, Write, Blessed are the dead which die in the Lord from henceforth: Yea, saith the Spirit, that they may rest from their labours; and their works do follow them.


Revelation 14
King James Version


Sun, 10/31/2010 - 00:00 | 688636 ZakuKommander
ZakuKommander's picture


3 An I sawz teh munster hurtz in teh hed: An laterz teh monstar hed he getz bettar: An evry pepls goes layk: OMFG! in wunder.4 An evry1 goes wrship teh munster an Evry1 goes wrship teh dragn bcuz he r haveing teh powurz. Any1 stolez hiz cheezburgerz? No wai!

5 An teh monstar sai bad of Ceiling Cat and he also sed teh monstar wuz clevar. He can has powurz 4 yeerz an yeerz.6 An teh monstar openez mout: An then he sed he h8z Ceiling Cat! OMG.


Revelation 13

Lolcat Bible version


52 Happy Cat sez, Bad kitteh. If u use claws u die by claws.53 Funny irony. If I could ask, Ceiling Cat sez I can has army. LoL54 But can’t cuz no spose 2?


Matthew 26

Lolcat Bible version


9 A thurd angell! Sez "Peepz whoo worshipz teh Monstar, getz hiz mark in 4hed or on handz, u big trubble now."10 "Ceiling cat pores sulfurz on u an makez tormentz, haha."11 Ur tormentz, they smellz funny, and is no chzbrgurs wit ur tormentz, and no u can't has napz 4evr eithur.12 Ceiling Cat's peeepz needz paytienz 2 put ups wit teh stink from ur tormentz n be tru 2 Son of Ceiling Cat.

13 A voice sez "Writez this: Iz good bein ded, the ded can haz rests an chzburgur."


Revelation 14

Lolcat Bible version



Sun, 10/31/2010 - 02:42 | 688728 Bananamerican
Bananamerican's picture

I M praynz for yer dam nad sol


Sun, 10/31/2010 - 10:25 | 688843 Oh regional Indian
Oh regional Indian's picture

Zaku, is that original work?

Absolutely brilliant. 


Sun, 10/31/2010 - 23:27 | 689886 Temporalist
Temporalist's picture

"Iz good bein ded, the ded can haz rests an chzburgur."

And that is all anyone that follows those ancient magically written books really wants is to foreverafter have chzburgr.

Great mashup.

Sun, 10/31/2010 - 12:34 | 688948 slobbermut
slobbermut's picture

Excellent again.  His Word will not return void...keep up the warning, some few will heed and you have discharged your duty.

Sun, 10/31/2010 - 08:48 | 688806 george@georgedu...'s picture

simply said "unless you are in the eye of the do not realize that you need a raincoat"...and then again once you are already in the eye...and "if" this is your firstr major will not realize that there is a "back side" of the storm.

a large part of the population is not in your game and is busy raising a family or paying bills....they do not or may not see  because the have put their trust in "man" and that is their failure or mistake.

God Bless the "little" people.

Sun, 10/31/2010 - 09:48 | 688823 janchup
janchup's picture

Trust in man or in the soothing stories told? 

Sat, 10/30/2010 - 21:34 | 688510 Bob
Bob's picture

Not that golden calves were ever kosher with Christ, iirc. 

Sat, 10/30/2010 - 21:58 | 688533 Blah Blah Blah
Blah Blah Blah's picture

Couldn't agree more!  The consolidation of power into one man's hands, supported by the apostate church and led by the evil one himself.  Can not happen until I am out of here also! 

Sun, 10/31/2010 - 12:37 | 688950 slobbermut
slobbermut's picture

Amen brother.

Sat, 10/30/2010 - 23:53 | 688632 ZakuKommander
ZakuKommander's picture

15 An Teh othar monstar maed evry1 watch teh film or he casted majik missil at tehm.16 An He maeded evry1 by it on vidio an dvd an teh speshun editiun. An maeded evry1 has markz on teh hed17 An U has a markz!! Or no moar cheezburgerz!

18 Wisdom, I has it. Teh clevar ppl can do dis sum - wat iz 6 hundrad addad 3 tiemz twentey addad six. Taht is teh numbar of teh monstar!


Revelation 13

Lolcat Bible version

Sun, 10/31/2010 - 02:44 | 688730 Bananamerican
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Sun, 10/31/2010 - 04:00 | 688744 Troy Ounce
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THE MESSIAH....WE FOUND THE NEW MESSIAH...(Monty Python, Life Of Brian)

Sun, 10/31/2010 - 09:00 | 688810 Vagabond
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You people don't believe the economic fairytales that TPTB are pedaling.  Why are you so steadfast in believing the fairy tales written in books 2000 years ago?  It blows my mind.

Sun, 10/31/2010 - 13:31 | 689043 slobbermut
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This stuff is not 'fairytales' my firend.  I urge you sincerely to pick up a book on apologetics...."Evidence that Demands a Verdict", is one that just pops into mind.  Everything, all the prophetic indications, are unfolding just as Christian Scripture has indicated...all setting the stage and verifying that we are approaching or in the last days - Turkey's shift towards and identification with anti-Jewish Islamic fundamentalism, is about the last piece of the 'puzzle' I was looking for; Turkey is among those listed as one's who sweep down upon Israel - but hitherto they were relatively pro-Israel. 

Yeshua (Jesus) claimed exclusivity..."I am the Way, the Truth, and the Life - No one cometh to the Father except through Me"; "For there is no other name under Heaven, given to men, by which you can be saved."

Scripture indicates the teaching of the cross is perceived as 'foolishness' to those who are perishing.  Scripture also indicates that apparently the vast majority of mankind will reject God's offer of salvation..."they perish by the hardening of their hearts, and that by choice." 

We are exhorted to "Enter through the narrow gate. For wide is the gate and broad is the road that leads to destruction, and many enter through it."

Remember, the Apostle Paul actually hated Christians, even hunted them down and had them killed - then he had an encounter with the Lord Yeshua himself, and went on to become the greatest of the Apostles.

If this stuff was all fairytales...why would all 12 apostles go on to suffer gruesome martyrdom willingly?  Think about that for just a moment.  These guys had seen the Messiah crucified...they were down and out for the count, in deep depression no doubt - then all of a sudden they do a 180 and turn into courageous dynamic witnesses, witnesses even unto tortuous death!  If Yeshua the Christ hadn't risen from the dead, if they hadn't seen Him with their own eyes and been absolutely certain - how and why would they have been willing to die gruesome deaths when all they had to do was renounce their faith and testimony?  Who willingly chooses to die a gruesome death for a lie?

You my friend, and so many many others, are like a man walking into a mine field....but the only weapons he is aware of are rocks and arrows and spears - a few who are aware try and warn him that he is amidst mines which will surely eventually kill him, but he thinks they are just nuts because the very idea of 'mines' is utter foolishness to him.  They try and reason with him, try and show him the 'evidence', the manuals which prove the existence of mines and what will eventually happen to him if continues on his way, but he won't listen.  Those aware continue to plead with him to just stop and examine their evidence...but he scoffs as he considers them simply crazy or the stupidest off all persons he can think of.  He taunts them to just prove the existence of these so-called mines...the few tell him they are unseen, in the ground but deadly just the same.   You are that man friend.  I urge you to stop and just examine the evidence before you continue on your way ever deeper into that mine field - eventually your time is up and it is too late.

If one doesn't wish to read much...pick up a short read, "More than a Carpenter" by Josh McDowell - it will at least get you thinking and realizing that maybe, just maybe, Christian Scripture and the teachings of Yeshua shouldn't be dismissed without more thorough investigation.

Sun, 10/31/2010 - 19:36 | 689501 merehuman
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you gotta be able to spell and make sense. A mistake now and then is one thing, but all out gibberish and blind belief have no business on this site. I definitely junked you because you are so deserving of it.

Sun, 10/31/2010 - 12:30 | 688943 slobbermut
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Excellent and appropriate my friend.

Sat, 10/30/2010 - 21:34 | 688507 nuinut
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Gold needs fiat, just as fiat needs gold.

We don't want or need to be rid of either.

I know this seems counterintuitive, but that is only because of what you think you know blocking the view. Don't sweat it, you're in good company, but that doesn't negate my argument any.

Sat, 10/30/2010 - 22:31 | 688573 UGrev
UGrev's picture

looking through the annals of history is all I need to call your assertion flawed. Your problem is that you think we need the fiat system to price gold/silver. We don't.  

Sat, 10/30/2010 - 23:42 | 688619 nuinut
nuinut's picture

LOL. Try putting it the other way around.

We need gold to value fiat. 

Sun, 10/31/2010 - 06:24 | 688768 juliawong
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agree, i, for one, don't want to carry silver coins around just to buy stuff. paper money, or electronic units (valued in gold) is a practical way of commerce.

Sun, 10/31/2010 - 12:04 | 688911 UGrev
UGrev's picture

that wasn't your point. do you even know what your assertion was?

Sat, 10/30/2010 - 23:19 | 688596 dehdhed
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right on.  in essence, as long as one can exchange fiat for gold, fiat is backed by gold.

that's not exactly the point you were making, but sometimes i read how we need to go back to a gold standard.  we're already on a gold standard ... it's just not fixed

Sat, 10/30/2010 - 23:24 | 688614 UGrev
UGrev's picture

if it's not fixed, then it's not a standard and gold is just a commodity that you can purchase. I can buy a TV with my USD, does that make my USD backed by my TV? 

Sun, 10/31/2010 - 01:49 | 688625 nuinut
Sun, 10/31/2010 - 02:37 | 688727 dehdhed
dehdhed's picture

i guess i meant fiat is backed by gold .. gold standard was bad usage, thanks

or like nuinut link above, thanks for the link

Sat, 10/30/2010 - 21:41 | 688474 Bob
Bob's picture

Golden ephemera.  Thanks for tying those golden and barbaric threads, nuinut.

Sat, 10/30/2010 - 21:45 | 688520 nuinut
nuinut's picture

No worries. I presume you are referring to this?

I will have quite a bit more to post soon that I imagine you will find considerably more revelatory.

IMHO, it will be an excellent time to purchase physical gold anytime until you can no longer get it. We cannot know when that cutoff will occur, however, until afterwards.

$900/1350/1650/3000 will all be regarded as the splitting of hairs once gold is revalued.

You either have it, or you don't. In retrospect, this will be all that matters.


Sat, 10/30/2010 - 21:52 | 688525 Bob
Bob's picture

There is a very strong argument for it.  Until there isn't.  Looks like a wild ride, in any case. 

Great link, btw.  Thanks.

Sat, 10/30/2010 - 22:47 | 688588's picture

Think about it. Who currently holds the bulk of the world's gold? TPTB.

Here's some data from the World Gold Council that would appear to show that most gold is in private hands in the form of jewelry and some bullion:


World gold holdings (2008) (Source: World Gold Council[18]) Holding Percentage Jewelry 52% Central banks 18% Investment (bars, coins) 16% Industrial 12% Unaccounted 2%

Sat, 10/30/2010 - 23:52 | 688631 nuinut
nuinut's picture

They hold more than enough to maintain their relative position in the hierarchy of the wealthy, post revaluation.

Sun, 10/31/2010 - 00:29 | 688661's picture

More speculation. Not that there's anything wrong with that. But speculation should proceed from facts and the fact is that this statement is false:

Think about it. Who currently holds the bulk of the world's gold? TPTB.

I would speculate that if revaluation comes hand in hand with freer markets, TPTB will have less control not more.

Sun, 10/31/2010 - 01:44 | 688706 nuinut
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I would speculate that if revaluation comes hand in hand with freer markets, TPTB will have less control not more.

I would not dispute this.

They will still have, relatively speaking, a similar position in the wealth hierarchy though ie. they will still be wealthy.

In this day and age, it may not be possible to exceed, or even maintain, the concentration of power they currently enjoy.

And if anyone is aware of this, it would be them. Time for a last feed at the trough, much as we are witnessing?

Sun, 10/31/2010 - 03:03 | 688737's picture

...clutching forks and knives to eat the bacon.

Sun, 10/31/2010 - 12:11 | 688915 Bob
Bob's picture

What happens, though, if an extended period--say a couple years--of increasingly severe biflation intervenes, with eventually crippling levels of unemployment paired with crushing costs of staples?  At that point, I can assume that the system will crash, but in the meantime how many "weak hands" will have been shaken out?  I would expect that people will let go of that jewelry to prevent homelessness and starvation. 

Then, of course, there's the possibility of governments seizing gold, as they have before.  And, I know, they won't get yours, but I would expect them to get enough of it to ensure that it doesn't compete with their fiat systems. 

Sun, 10/31/2010 - 13:16 | 689016's picture

Have a little faith, baby. Your killing me with those negative waves.

Sun, 10/31/2010 - 15:21 | 689231 nuinut
nuinut's picture

Yes, weak hands will be tested. Cash4Gold has already found many of them. And everyone may have to tough out an extended period of serious austerity. It would be wise to be prepared for this eventuality too. This is where one would want to use silver and/or barter of staple goods to get by and to "defend" (ie. not be forced to use) one's gold. Gold reveals it's worth after this time.

The seizing of the public's gold is the exact opposite of what any govt will do, as it will be contrary to their interests. Diametrically opposed in fact. They want as much gold as possible within their jurisdiction, but it makes no difference who actually owns it. It is better to not have it concentrated in too few hands; this works against gold.

These may be helpful in explaining:

Confiscation Anatomy – Part 2

Confiscation Anatomy - Part 1

Sun, 10/31/2010 - 17:44 | 689411 Bob
Bob's picture

Love your site, man.  It is this "working against gold" that I expect would motivate government to seize or othewise prevent its use as currency--to eliminate competition for fiat, whether the fiat is entirely new or only "improved." 

Sun, 10/31/2010 - 19:13 | 689487's picture

"The best laid schemes o' mice an' men / Gang aft agley."

Each may do as he wills yet reality must at times intrude. Economies can not function without sound currency.

Sun, 10/31/2010 - 17:51 | 689416 High Plains Drifter
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Take out them pistols, butt first and move like molasses in the wintertime.

Sun, 10/31/2010 - 11:39 | 688897 steve from virginia
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First - I wish everyone would sit down and actually read the goddamned paper, that include TD @ ZH.

What is actually sez is the GDP number is effected by changes in oil prices in a zero- bound or ZIRP environment. This is true as far as it goes; the change in price effects interest sensitive sectors in certain ways while the effects of price changes are felt differently in the non- interest sectors. This is non- controvercial.

Second - the Fed misstates deflation as inflation, expressing this as a simple rise in price. Since this was the conclusion of the FOMC starting in 2003 the likelihood is the Fed is constrained to justify its previous error by repeating it over and over.

Third - as a quasi- government agency the Fed is prohibited from using the term 'Peak Oil' for fear of stampeding the stock market.

The conclusion of the paper is no conclusion but the charts derived from the (overly complex) formulae speak for themselves. Output declines with price increases even if these increases take place over time. I tend to disagree with reduced real interest rates in a deflationary context as currency values increase which is manifest as very high real rates.

If peak oil had been part of the discussion the outcome of increased REAL input prices is diminished output leading to diminished discretionary income and lower prices in a compounding spiral. As oil production shrinks either absolutely or relative to industrial output there can be no inflation as the primary wealth generating function in the world's developed economies is machine- driven worker productivity alongside debt- derived final demand.

Right now worker productivity is being stranded by higher real energy prices while debts are unserviceable - either by the declining productivity or by amount of debt requiring service.

Even as oil prices decline, worker income and business profits (not buoyed by finance trickery) decline even faster. Oil next year might be very cheap by today's standards but with massive unemployment there will be fewer who can afford it at any price.


Sun, 10/31/2010 - 20:00 | 689518 G-R-U-N-T
G-R-U-N-T's picture

Please...Not this "Peak Oil Fraud" crap again. After ClimateFraud/ForclosureFraud/HFTFraud/ComexFraud etc...etc...etc....Coming soon WaterFraud....All this will be culminating into one big bad ass stand off with Fraudzilla, brought to you by the 21st century Fraud-O-Rama.

It it's not one Fraud it's another.....Ugh!!!

Happy Halloween...


Sun, 10/31/2010 - 23:35 | 689900 Rusty Shorts
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Grunt, you have to separate the "wheat from the chaff" so to speak.

Mon, 11/01/2010 - 01:06 | 689958 G-R-U-N-T
G-R-U-N-T's picture

Rusty ol' chap...I am a skeptic and was born and raised to believe only about 15% of what the world has to say. Separating the "wheat from the chaff" is God's business, my business is to do the footwork to find the truth. "Peak Oil" is unproven.




Mon, 11/08/2010 - 06:05 | 707717 nuinut
nuinut's picture

Grunt, you have to separate the "wheat from the chaff" so to speak


That's what he's doing. Look closer at his avatar.

Sun, 10/31/2010 - 19:45 | 689509 merehuman
merehuman's picture

no reason for oil to be cheap next year. China is growing the car industry, germany is running full strenght and many nations have not quit using oil. If our economy made such a big difference in the price of oil, then it should be below 50.00 already.

The oil producers want 100.00 oil. I think they can get it.

Sun, 10/31/2010 - 09:34 | 688819 breezer1
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canadian real estate blogger garth turner has called all austrians ( gold investors) 'nuts'.

guess he never read ZH.

Mon, 11/01/2010 - 01:13 | 689901 Temporalist
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The first person I always run to for investing advice is a real estater blogger...

Sat, 10/30/2010 - 19:36 | 688381 frankTHE COIN
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The fed came into existence in 1913 because in 1907 we had "The Bank Panic of 1907" and JP Morgan had to gather all the bankers and save the system. But its intended role was to be the buyer of last resort. In the 1930s Keynes wrote the General Theory of Employment,Interest and Money, magnum opus which then turned the Fed into inducing and curtailing recessions.

Bottom line, the Fed can be abolished.

Sun, 10/31/2010 - 09:31 | 688817 New_Meat
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and Hank Paulson brought all of the 2008 banksters into a room and did his JPMorgan redux.  No one leaves until all of you accept this extra cash.  And the cancer spreads.

- Ned

Sat, 10/30/2010 - 19:49 | 688389 Segestan
Segestan's picture

Exactly... the Fed is in part because of the Wild Cat bankers of the late 1880's, every bankster was printing their own brand of cash. agree with you're view on the tea party being hi-jacked. Who the hell is Palin anyway? some Alaskan state hack? She comes out of nowhere for McCain and now pretends to be the answer. It's all about control without the sheeple understanding who the players are.

Sat, 10/30/2010 - 20:12 | 688421 fiftybagger
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"Who the hell is Palin anyway?"


Satan's right hand(as opposed to his left).  Don't get it?  Study more before they shutter it...

Sat, 10/30/2010 - 21:06 | 688475 Segestan
Segestan's picture

Isn't this really just a cover for a Zionist tool?

Sat, 10/30/2010 - 20:22 | 688430 66Sexy
66Sexy's picture

Im willing to give anarchy a go, mate. would certainly give me a purpose beyond this incredibly mundane existence as an arm chair critic of the government and the federal reserve bank.

oh.. and FUCK the IMF. they have no influence after their gold is gone. i've had enough of these goddamned globalists trying to tell me my business.

Sat, 10/30/2010 - 22:15 | 688556 RockyRacoon
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The IMF holds pledges of gold from member countries, for what that is worth.

If they had actual gold held someplace, they would be a force to be reckoned with.

Sat, 10/30/2010 - 21:17 | 688444 66Sexy
66Sexy's picture

you forget, and falsely assume, that the anglo/english dictatorship will still be around and will still have the force to do that... without gold behind it, it CANT. a new currency for international trade will need teeth; and if its not a military, it better be commodities.

look around. they are surrounded... the american people are waking up, and china is working on its own behaf (their interests are opposite america/england). england just dropped their military down, they are downsizing. the US will be too, if they cant hyperinflate like they want.

russia is waiting patiently; with lots of domestic resources. 

 these countries hold the future, and they have domestic gold reserves, and benefit from a rising price directly. they will win the support of the international community (and the people), by having their own gold backed currency.

there will be smiling faces and handshakes at the UN but nothing will get done. russia, china, south america.. hell EVERYONE will clown the US/english but at the end of the day, it will always end as it always has ended.... uneventful.

do you think china/russia would pick american / english controlled SDR's over their own currency? i dont, no matter how bad the corruption is. 

the hallmark of a true patriotic american today is to turn against the banker controlled government; side intellectually with china and russia, and sympathize with iran as a general anti war sentiment. This is because most americans support the idea of a constitutional government; which we dont have now, we have corporate-fascism...dictated top-bottom to us through our weak and cowardly politicians.

but the tide is shifting. i dont think they are going to pull it off. the mainstream media is cracking. alternative media is rising.

once a man/entity makes enemies on both sides, and is clearly visible, he ends up dead. these financial elites are now clearly visible... they cannot even breath without us seeing them and their tactics and maneuvers.

they are the ones lock up in their houses. they are the ones fleeing the country.

to quote tyler "we cook your meals, we take your phone calls... we guard you while you sleep... do not FUCK with us.."

we tell them what currency will be used, and when we will use it. we tell them what it must be backed by.

they dont tell us.

Sat, 10/30/2010 - 22:58 | 688594's picture

the hallmark of a true patriotic american today is to turn against the banker controlled government; side intellectually with china and russia, and sympathize with iran as a general anti war sentiment.

A bit over the top. Ain't nothin' good gonna come from kissin up to the Ruskies. And Imadinnerjacket is every bit as nuts as his American and Israeli counterparts.

The state is the state is the state. Only the individual is sovereign.

Sun, 10/31/2010 - 05:53 | 688762 66Sexy
66Sexy's picture

well said. agree wholeheartedly.

Of course, i wouldnt trust any foreign power. but my point is, they are all equal now, as you say.

but consider this: the Chinese government went on record to its people to buy gold and silver earlier this year when gold was at around 1,050. our government whould never do that; they tell us to go out and buy a house; probably the WORST investment idea on the planet right now.

Sun, 10/31/2010 - 10:40 | 688851 tmosley
tmosley's picture

Exactly.  Iran is a socialist state which favors Islam, where Israel is a socialist state that favors Judaism.  They would in fact have the exact same capacity and levels of economic development were it not for 60+ years of foreign aid to Israel in the form of cash, weapons sales, and technology transfer.

Russia is a nation that tried to adopt the capitalist model, but was probably doomed from the start to follow the path of crony capitalism.  China might have a chance, as they have significant momentum in the right direction, though they still make big errors quite often.

Sat, 10/30/2010 - 23:01 | 688595 Green Leader
Green Leader's picture

"...a new currency for international trade will need teeth; and if its not a military, it better be commodities."

Whenever hyperinflation ocurred in the second half of the 20th century (Argentina, Chile , Zimbabwe), the Dollar became the de facto currency. Now, if the Dollar hyperinflates (by design), wouldn't its substitute be by design, too?

I think once the Dollar hyperinflates, the Iraqi Dinar will become the de facto global reserve currency.


Sat, 10/30/2010 - 23:41 | 688622 dehdhed
dehdhed's picture

i'm not a history buff but i'm pretty sure a reserve currency needs to be backed by a superior military force and not just a large reserve of oil and sand

Sat, 10/30/2010 - 23:52 | 688630 knukles
knukles's picture

Historically, the reserve or strongest, most recognized, most fungible currencies (fiat, PM or other basis) have been those associated with the strongest of the military powers.  Just is, what it always has been through time.

Sun, 10/31/2010 - 02:01 | 688714 merehuman
merehuman's picture

all wrong. A true reserve currency requires trust. Lack of it is killing the dollar. Without confidence and trust we sink further until  law is reestablished

Sun, 10/31/2010 - 14:25 | 689145 11b40
11b40's picture

U.S. to world - you WILL trust our currency, or else.

Reality - no other power is even close to America's military supremacy.

Other reality - our economy is 14 times bigger than China, and Europe may have become the United States of the Euro, but the cultural differences and economic imbalances of those conjoined states is dramatic.  Their cohesion under stress has yet to be seriously tested.

And one more reality - the 3rd world is no where close to lift off and self-sufficiency.  The American teat has fed them, and continues to feed them.  Cut off that nourishment, and things start spinning out of control rapidly, starting with total revolution in China.

I have no idea where all this shit ends, and it feels like we are in a bad place right now.  For sure, this time next week, we wil have lot more scat to stir and examine under our microscopes, but a new world order with the good old USA riding the back seat won't be hapen' anytime soon.

Independent Contractor

Sun, 10/31/2010 - 22:03 | 689776 66Sexy
66Sexy's picture

"Other reality - our economy is 14 times bigger than China"


really? what IS our economy?


would that be the "70% consumerism" part, the "housing" part, or the "wall street and derivatives" part? or perhaps the trading of technology to china or arms sales to saudi arabia....

our economy is bullshit.

Sun, 10/31/2010 - 23:42 | 689909 Temporalist
Temporalist's picture

The largest arms dealer for the past 30 years too...

Mon, 11/01/2010 - 04:39 | 690043 AnAnonymous
AnAnonymous's picture

There is no other reality. Only the continuation of the reality mentioned first.

If the US has to cut its food based extraction of wealth scheme, it will hurt much more the US than other countries.

Sat, 10/30/2010 - 23:59 | 688635 goldsaver
goldsaver's picture

The Iraqi Dinar.... what makes you say that?

Sun, 10/31/2010 - 10:16 | 688838 Green Leader
Green Leader's picture

I say that because it's Biblical and the way events are developing around us make me believe so. To me, all this Amero, Bankor, BRIC basket and SDR talk has been a smokescreen. The central banks of the world hold  about 90% of the Iraqi Dinars that have been sold. I believe this to be in preparation for the Dollar hyperinflation and that once that happens the Iraqi Dinar will become standard currency for oil transactions.

Sun, 10/31/2010 - 14:24 | 689144 Milestones
Milestones's picture

Interesting post re: Iraq $$, in light of the fact that the USA has just built it's largest embassy in the world in of course Iraq. Strange coincidence, no??    MIlestones

Sun, 10/31/2010 - 17:21 | 689394 Green Leader
Green Leader's picture

Here's another strange coincidence: US builds 5th largest embassy in Haiti, the country suffers mysterious earthquake just by its capital and recently a cholera outbreak out of 'nowhere', after decades of no such reports. At this time we have a military made hurricane headed for Port au Prince. Strange coincidence indeed.

Mon, 11/01/2010 - 00:29 | 689939 Cathartes Aura
Cathartes Aura's picture
Haiti rich in unexplored hydrocarbons (with potential oil reserves larger than those of Venezuela) , gold, copper, uranium 238 and 235 and strategic metals (iridium)

and, of course, amrka has known of this for almost a century. . . and Haiti is kept impoverished, in chaos, as the looting continues. . .

Sun, 10/31/2010 - 09:55 | 688826 Oh regional Indian
Oh regional Indian's picture

11 junks to your well written post tell me that Goldtrolls are alive and well here.

I've never junked anyone in my 7 months here. 

To go into the coming time with any super-fixed notion is just plain not healthy.

Neither you nor I know what the next play is. I think gold bugs, silver bugs and all other manner of bugs should bend and stretch a little. Freegold is no certainty. 

Gold smells like a trap to me too.

Plus, the sun is acting up you know. 



Sun, 10/31/2010 - 10:16 | 688840 Bendromeda Strain
Bendromeda Strain's picture

Oh really? An Indian of all people would discount the utility of hard vs ethereal wealth? Poor student of history, with no excuse in the Internet age.

Sun, 10/31/2010 - 11:22 | 688882 Oh regional Indian
Oh regional Indian's picture

You need to get your blinders and prejudices off and your manners on Bendromida.

Your knee jerk response shows that neither did you read my comment correctly, you promptly went on to make half-assed assumptions about me.

Uncouth, presumptuous and arrogant sounding. You must be a janitor at Goldman Sucks.


Mon, 11/01/2010 - 00:35 | 689943 nuinut
nuinut's picture

Janitor? Sounds more like management material. 

Sun, 10/31/2010 - 23:44 | 689911 Temporalist
Temporalist's picture

Gold is a trap for the fiat monster at the end of this book.

Sun, 10/31/2010 - 10:14 | 688837 Bendromeda Strain
Bendromeda Strain's picture

With the IMF's move to sell gold lately, i would be careful to buy too much gold as that is an indication of things to come

You see all those junks? I doubt it is because of your laughable "finance guru" moniker, but it wouldn't be implausible. You need more schoolin' grasshopper, get back up the mountain.

Sun, 10/31/2010 - 12:26 | 688935 Sukumvir
Sukumvir's picture

Hi all,

It is my first post here and would like to thank you all for your insightful comments.

I do think the Fed is being ended but not by the TBTB, who are either playing a game of chicken with monetary actions to bring everyone down with them, or acting in extreme desperation for the aparent loss over the reign they have enjoyed since the days of the Temple of Jerusalem.

Instead, we could looking at a "second faction" making a well calculated move into the turf these bankers have enjoyed since B.C. years.

With more and more rats jumping off the ship - Bill Gross, BoE Governor calling for a 100% reserve requirement - and playing to the tune someone else seems to be imposing, it is hard to believe that the Fractional Reserve Banksters are in a position to call the shots.

The exposure of Fraudclosure, Silver Market Manipulation and other weekly episodes in waiting of this Saga are calculated granades hitting crucial parts of their Temple's virtual architecture.

Since, the first-hand attack on the Temple's two columns nine years ago, the Banksters knew what was coming and never bothering rebuilding; they bought time for themselves by picking and taking their own poison while making out with everything they could take with them.

The last generation of Banksters is probably putting up a fight. I do believe the elders gave up long ago.



Sun, 10/31/2010 - 18:11 | 689430 Green Leader
Green Leader's picture

Interesting post. I agree.

Next we shall see the return of the four toed giants, the Nephillim.

Yahweh Yireh.

Sun, 10/31/2010 - 19:27 | 689495 Jendrzejczyk
Jendrzejczyk's picture

Welcome. Those are some interesting antennae on your foil hat. Keep posting.

Pedantic quibble: "making out with everything..." is a slightly disturbing vision, making off with everything would be less so.

Sat, 10/30/2010 - 19:43 | 688386 dlmaniac
dlmaniac's picture

That's great ...  hold on... let me finish this APMEX order.... credit card... address.... ok, done.

Yeah, bring it.

Sat, 10/30/2010 - 19:52 | 688397 unum mountaineer
unum mountaineer's picture


Sun, 10/31/2010 - 23:20 | 689873 tictawk
tictawk's picture

End the Fed is correct.  Hyperinflation destroys savers and those who did not go into debt.  It bails out the bankers and those in debt i.e. your govt.

what we really need is an honest "medium of exchange".  A hard currency backed by gold or some other limited resource.  And we should get rid of fractional reserve lending.

Tue, 11/23/2010 - 02:15 | 748675 hvl626
hvl626's picture

You believe that Ben’s stealthy leaks via Martin Bodenstein about hyperinflation are his objective ??? Oh, no. His actions may appear to be as crazy as that of a rabid skunk and hyperinflation may be a result, but that is not the objective.

The objective of QE2 is not related to any societal resultant; it is a desperate attempt at self-preservation by the Federal Reserve. Ben’s printing press is in jeopardy.

If the market is left alone, the value of mortgages held by the banks will continue to fall. When the toxic mortgages eventually have to be written to value, the assets of the banks will rapidly de-leverage---and the banks are obviously bankrupt. When the banks fail, the riots start and Congress--to make a show for the public--will have to point fingers at someone (other than themselves) and that will be at the Fed. If the man behind the curtain is exposed to scrutiny or an audit, all hell will break loose. The Fed will be like BCCI on steroids.

The economic scheme imposed by the Federal Reserve in 1913 is mathematically analyzed as a self-destructive Ponzi scheme predestined to inherent national bankruptcy. Any Ponzi scheme, including the Fed, cannot survive downsizing (or deflation), hence the desperate action of QE2.



Sat, 10/30/2010 - 18:32 | 688305 Cheeky Bastard
Cheeky Bastard's picture

told ya

Sat, 10/30/2010 - 18:47 | 688323 merehuman
merehuman's picture

How to kill America  ..

Sat, 10/30/2010 - 18:49 | 688327 New_Meat
New_Meat's picture

good to see ya

Sat, 10/30/2010 - 18:58 | 688342 doomandbloom
doomandbloom's picture

long time, no see?

Sat, 10/30/2010 - 19:26 | 688355 Spalding_Smailes
Spalding_Smailes's picture

I had drinks with a friend last night.  He said in the last 3 weeks or so its like a switch was just turned on, his quotes and orders picked up 50% in all the industry's he been deal with.... All his contacts have been seeing the same thing. Cat is really busy and started giving out overflow work again...

Within the last month his manufacturing company did 1.3 million in sales in 07' he did 2.8 /average...


Sat, 10/30/2010 - 19:51 | 688395 frankTHE COIN
frankTHE COIN's picture

Spalding thanks for the information. I dont know why someone would junk you.

Sat, 10/30/2010 - 20:13 | 688423 Spalding_Smailes
Spalding_Smailes's picture

Me neither. .But hey ....?

Hes upbeat. First time I've seen him like this in 2 years...


I think a few steel companies like u.s. steel , arcelor mittal may see a nice jump in the next 6 months...

Sat, 10/30/2010 - 23:50 | 688628 dehdhed
dehdhed's picture

my son is a machinist and he says they're adding a 3rd shift, doubling the size of the factory and are busier than he's ever seen it and can get all the overtime he wants

Sat, 10/30/2010 - 20:03 | 688406 tip e. canoe
tip e. canoe's picture

spalding, been hearing similar stories in the fashion business.   here's the thing though : the raw materials are going up faster and the producers are getting squeezed in the margins.   which means more often than not, quality is going out the window.

Sat, 10/30/2010 - 20:29 | 688432 Spalding_Smailes
Spalding_Smailes's picture

Hes high end (He charges 10% premium but his work is perfect so they always come back) he manufactures rollers for printing presses he said input cost are down a little  ... Tolerance levels for 50 inch wide printing rollers not easy...

Cat India even gives him work because they cant match his quality.

But hes seen an industry wide uptick. He was outsourcing 8 million a year so he has many contacts ...

Sat, 10/30/2010 - 23:15 | 688604 Sespian
Sespian's picture

Rollers for printing presses you say? thinks your friend contracts with the central banks.

Sat, 10/30/2010 - 20:16 | 688424 SpeakerFTD
SpeakerFTD's picture

So it looks like a massive jump in velocity may be upon us.

Massive reserves + jump in velocity = hyperinflation

Sat, 10/30/2010 - 20:34 | 688446 Spalding_Smailes
Spalding_Smailes's picture

Maybe not so big Q.E -2 ?

Sat, 10/30/2010 - 21:18 | 688488 DosZap
DosZap's picture

No, 100 Billion per increment.....................more if needed, LESS if not needed.

Now, the trick is, keeping this $$$ in the USA,since 85%+ of it has gone into Asia.

And we wonder why it has not helped here?.

Sat, 10/30/2010 - 21:25 | 688495 Spalding_Smailes
Spalding_Smailes's picture

As asset deflation continues the world will be beg'n for dollars servicing dollar denominated debt ...

China is a long way from de-peg'n so dollar will stay king for a long time.


If the renminbi ever becomes a major trading or reserve currency, it is going to take a long time for this to happen and will require a radical transformation of the Chinese economy and the role of the government.  This may seem like a surprising statement.  After all nearly every week we see reports about a new breakthrough for the renminbi, and almost every day someone important somewhere speculates publicly about what the world will be like when (never if) the renminbi displaces the dollar.

But away from all “qualitative” arguments about why this is unlikely, and there are many, I think there is a problem with the arithmetic of reserve currency accumulation.  If the rest of the world is going to use the renminbi as a reserve or trading currency, clearly it needs a mechanism by which to accumulate renminbi.  This is something on which a surprisingly large share of people who talk about the future of reserve currencies don’t seem to focus.

Leave aside the fact that foreigners are prevented from having renminbi accounts and that it will probably be many years, if not decades, before the PBoC is willing to allow full convertibility, with limited government intervention and no control over the setting up and trading of its currency.  The world still needs a way to accumulate renminbi in order for it to be a major trading or reserve currency.

How does the world accumulate sufficient renminbi to acquire reserve status?  There are basically two ways.  First, China can run a current account deficit.  Second, foreign capital inflows into China can be matched by Chinese capital outflows.  The second way does not result in a net foreign accumulation of Chinese assets, but it allows foreigners to hold renminbi bonds and other assets to the same extent that Chinese hold assets abroad (above the current account surplus, of course)

Sun, 10/31/2010 - 00:03 | 688639 GoinFawr
GoinFawr's picture

"As asset deflation continues the world will be beg'n for dollars servicing dollar denominated debt ..." 

All currencies are fungible. Including gold, which comes unencumbered with any counterparty liability, if you demand delivery. As a creditor, which currency would be your preference for receiving payment?

Also, you assume this egregious toxic debt mass is spread evenly across the planet, it isn't. Not for lack of trying, of course, yet despite pernicious attmepts to get everybody in the boat, it hasn't been a successful campaign. So some will hurt far, far more than others should it all come to light, or get marked to market rather than skypie; some, but not all. 


Sun, 10/31/2010 - 00:18 | 688651 Spalding_Smailes
Spalding_Smailes's picture

Reliance Industries said it has raised USD 1.5 billion from its first benchmark sale of bonds denominated in US dollars.

Billionaire Mukesh Ambani-run firm sold USD 1 billion of 10-year notes and USD 500 million of 30-year bonds, the company said in a press statement here.


Greece will issue a global US dollar denominated bond in late April or early May, the head of the country's debt agency (PDMA) said on Wednesday.

Greece, with total borrowing needs of 53.2 billion euros ($71.43 billion) this year, faces a refunding hump in April and May as it rolls over maturing bonds, T-bills and pay coupons coming due.


-- Malaysia may sell 10-year dollar denominated bonds in June, its first overseas debt offering in almost eight years, according to a finance ministry official with knowledge of the plan.


More and more banks are considering dollar bonds to fund their overseas banking expansion plans.

After Bank of India’s $500 million issue of 5.5-year dollar bonds that opened on Thursday, Axis Bank is planning a similar move.
And, in the next financial year, we may see more banks taking this route. Union Bank of India, HDFC Bank, Syndicate Bank and IDBI Bank also has similar plans, said investment banking sources.


Feb. 8 (Bloomberg) -- Banco do Brasil SA, Latin America’s largest lender by assets, is arranging four dollar-denominated bond offerings by Brazilian companies to be sold “soon,” said Allan Simoes Toledo, the bank’s international operations chief.

Each company is seeking to raise at least $250 million through bonds that mature in three years or more, Toledo said in an interview in Sao Paulo.


Facing a shortage of U.S. dollars and a growing need to support their dollar-denominated assets during the financial crisis, international firms increasingly turned to the foreign exchange swap market and other secured funding sources. An analysis of the ensuing strains in the swap market shows that the dollar “basis”—the premium international institutions pay for dollar funding—became persistently large and positive, chiefly as a result of the higher funding costs paid by smaller firms and non-U.S. banks. The widening of the basis underscores the severity and breadth of the crisis as markets designed to facilitate the flow of dollars faltered and institutions worldwide struggled to obtain funds.

Sun, 10/31/2010 - 00:51 | 688680 GoinFawr
GoinFawr's picture

You didn't answer my question.

"More and more" is hardly a quality stat. Banks issuing bonds that are tiny fractions of their respective countries' GDP's, and businessmen (big'uns, granted) that may merely be looking to hedge, or even divest, do not 'evenly spread' make.

"Facing a shortage of U.S. dollars and a growing need to support their dollar-denominated assets during the financial crisis, international firms increasingly turned to the foreign exchange swap market and other secured funding sources."

This isn't 2008...'safehavens' are not necessarily what they once were.



Sun, 10/31/2010 - 01:15 | 688692 Spalding_Smailes
Spalding_Smailes's picture


Everyone uses dollars. Last year the total global debt in dollars over 50 trillion. This is older but shows how everyone funds using dollars, oil, global trade ...

The Emerging Markets' Dollar-Denominated Debt Crisis


Around the world the story is pretty much the same: companies and corporations are being crushed under the burden of their dollar-denominated debt payments. The problem, which is a direct result of a monetary deflation created by the Federal Reserve and compounded by counter-productive monetary policies by governments and insufficient currency hedging by companies in emerging markets, is threatening economic growth around the world and raising the specter of a once unthinkable chain reaction of international debt default.

In Argentina, where the monetary deflation relative to gold has justified a small devaluation of the peso against the U.S. dollar, President Fernando de la Rua's government and particularly Economy Minister Domingo Cavallo, are handcuffed from taking such action due to the inability of Argentina's corporations to pay back their enormous dollar-denominated loans. If the government were to devalue by 50%, as an example, against the U.S. dollar, the dollar-debt burden of Argentina's corporate sector would increase by that much. But it is doubtful that Argentina will be able to hold off such devaluation for much longer as the country is rapidly losing the foreign reserves necessary to maintain its unorthodox currency board. From February to July, Argentina lost 9 billion of its official dollar reserves. As of last week the country was down to $19 billion in cash reserves.

In Brazil where the real has lost over 20% of its value in just this year, corporations and state-owned enterprises are suffering under the weight of their dollar-denominated debts. Among those suffering the worst in Brazil is Globo Cabo, the country's leading cable provider (to over 6 million homes), laden with dollar debt. Globo Cabo's stock has fallen 50% this year. Another major worry in Brazil is Embratel Participacoes SA (EMT), a unit of Worldcom Inc. (WCOM) and Brazil's leading long-distance carrier. Embratel is especially weighed down by the prospects of paying back U.S. debts out of revenue received in the form of a devalued real, especially since BRR1.5 billion of Embratel's BRR2.7 billion in dollar denominated debt isn't hedged against foreign currency fluctuations.

In Egypt, the problems continue to grow as the government devalued its currency, the pound, last week, only 6 months after the Egyptian Central Bank abandoned its nine-year currency peg in favor of a "managed" peg monetary regime. Corporations with the largest market capitalization like Orascom Telecom and MobiNil are suffering as a result of their dollar-denominated debts in the new era of currency devaluations. Orascom Telecom has had to substitute its dollar holdings by making use of a local currency facility and MobiNil, revealed last week that it was working on raising a fresh amount of financial capital in order to repay a $220 million loan. But the devaluation is making the effort more and more expensive. "With regard to the $220 million loan, every one-piastre move (depreciation in pound-dollar rates) will denote a LE2.2 million loss on that loan," MobiNil's chief financial officer, Ossama Deeb, said last week.

In South Africa, the rand's depreciation against the U.S. dollar has reached all-time lows. As of yesterday, approximately 8.26 rand exchanged for 1 U.S. dollar. The depreciation has made it increasingly disadvantageous for South African corporations to take out badly needed loans in U.S. Dollars. Instead, South African corporations are increasingly turning to the issuance of euro-denominated debt for international capital and with mixed results.

In The Philippines, a major vote of no-confidence was issued when Barclays Capital warned against the actions of the government and central bank in light of the weak peso. Barclays warned against plans of the government to issue $200 million in treasury bills in order to support the government. Barclays stated earlier this week, "Dollar (denominated debt) issuance will be extremely large in the second half of 2001 as the government tries to refinance its maturing debt and part of its budget deficit…Overseas investors may prove equally unwilling to finance the budget deficit at existing spread levels especially when multiple billions of dollars worth of debt refinancing has still to take place…"

In Indonesia, the problem is enormous. The near 80% loss in the value of the rupiah against the dollar, since 1997, has literally decimated the balance sheets of Indonesian entrepreneurs, companies and corporations. The country's largest auto maker, PT Astra International, is carrying a debt of $1 billion, and will have to sell assets in order to generate liquidity necessary for a $200 million principal debt payment due in December of next year. The problems in Indonesia, as in Argentina, have been compounded by deleterious policy prescriptions of the IMF.

Unfortunately we look for things to get worse before they get better. With a United States Treasury and Federal Reserve seemingly bent on cuddling a deflated dollar; with the IMF - the international loan shark, dishing out bad advice in emerging markets in exchange for badly needed cash; and with government after government embracing currency devaluations or permitting currency depreciations under floating monetary regimes, these will continue to be the worst of times for many entrepreneurs, companies and state-owned enterprises in many emerging markets.

Now, the question that must be answered is how bad will the ripple effect be, as emerging market after emerging market comes under pressure from the international investing community and speculators who 1) contemplate moving capital to less risky investments and 2) consider shorting battered currencies.


Sun, 10/31/2010 - 08:28 | 688797 Eternal Student
Eternal Student's picture

You forgot to mention that the article is dated August 1, 2001. And the only comment on it there is dated 7/11/2010. The question "that must be answered" already has been, and some time ago.

Sun, 10/31/2010 - 20:56 | 689644 boricuadigm-shift
boricuadigm-shift's picture

They know those dollar will be worth a lot less in the future. 

Sat, 10/30/2010 - 23:55 | 688623 dehdhed
dehdhed's picture

posted this in the wrong spot

Sat, 10/30/2010 - 20:10 | 688420 DavidC
DavidC's picture

Where have you been, I've missed your input?


Sat, 10/30/2010 - 21:11 | 688479 Bob
Bob's picture

Kinda cryptic, that.  But then I have a short memory.  What did you tell me, you Cheeky Bastard?

(btw, have you seen Inglorious BasterdsAmazing.)

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