On The Fed's "Stunning" Finding Of Gold As An Inflation Predictor And The Subsequent Cover Up [Laughter]

Tyler Durden's picture

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sat, 01/15/2011 - 19:58 | 879186 traderjoe
traderjoe's picture

Thanks for posting that. I am in the process of removing my consent from the Ponzi, and will read further that site as time allows...

Sun, 01/16/2011 - 00:04 | 879441 Thomas
Thomas's picture

Read the original article: I am in the process of wiping the vomit off of my lap.


Sun, 01/16/2011 - 09:57 | 879802 simonsito
simonsito's picture

i am feeling just like that...

Sat, 01/15/2011 - 23:21 | 879396 trav7777
trav7777's picture

bunch of tinfoil garbage...seriously.

There are elements of truth, but power flows from guns.

Britain was on the verge of being destroyed by Germany-how powerful were these titles and contracts?

The government has no title to your ass that can be enforced anywhere.

Sun, 01/16/2011 - 00:45 | 879478 ronin12
ronin12's picture

Agree -

Also at the end of the day, it's not the "law" that matters but how the law is enforced that matters.

Sat, 01/15/2011 - 14:48 | 878854 midtowng
midtowng's picture

Yes, it is very hard to understand.

The Fed prints mountains of money and makes real interest rates negative, and for some unknown reason, gold goes up.

It's so hard to figure out. After all, its not like you can eat it.

Sat, 01/15/2011 - 15:02 | 878861 benb
benb's picture

100% correct. You cannot eat gold. Also, silver is an irritant to the digestive tract.

Sat, 01/15/2011 - 15:12 | 878869 TheGreatPonzi
TheGreatPonzi's picture

Actually, you can eat gold. A French princess, Diane de Poitiers, drank gold nuggets all her life, believing it was the secret to longevity.

It is not a toxin for the body, however it has no effect and is not digested. It just tends to accumulate in certain parts of the body.

Sat, 01/15/2011 - 15:29 | 878886 benb
benb's picture

I stand corrected. Personally I cannot afford to eat gold like the princess. I haven’t the stomach for it…but on topic TD has brought up the point that the ‘experts’ and ‘officials’ act in the capacity of carnies to herd and throw the public off track.

Sat, 01/15/2011 - 16:35 | 878977 LowProfile
LowProfile's picture

Where is she buried, again?

Sat, 01/15/2011 - 18:11 | 879075 Sudden Debt
Sudden Debt's picture

You check out her background and I'll bring out my metal detector and shovels :)

And as gold doesn't digest, I won't even mind to check out her toilet :)

Sat, 01/15/2011 - 18:14 | 879082 Beam Me Up Scotty
Beam Me Up Scotty's picture

Are you in search of the Golden Turd?

Sat, 01/15/2011 - 20:32 | 879216 Rahm
Rahm's picture


Sat, 01/15/2011 - 23:40 | 879416 Jreb
Jreb's picture

More importantly - where did she go to the can???

Sat, 01/15/2011 - 17:05 | 879012 asdasmos
asdasmos's picture

So, can you eat money, CDs, stocks, bonds..... etc?


Are they not all some sort of a medium of exchange?


This argument lacks any substantive point.


Also, what does the US air force give pilots in case of a crash and they need to barter?



Sat, 01/15/2011 - 17:06 | 879015 Jasper M
Jasper M's picture

Panty hose and chocolate bars, if I remember correctly.

Sat, 01/15/2011 - 17:48 | 879055 blindman
blindman's picture



i don't fully understand it.

Sat, 01/15/2011 - 18:46 | 879095 magis00
magis00's picture



concept of grouping

related ideas



has escaped the author.

Sat, 01/15/2011 - 22:44 | 879349 Caged Monkey
Caged Monkey's picture

Goldschlager, bitchez!

Sat, 01/15/2011 - 16:01 | 878927 Savonarola
Savonarola's picture

Why would you want to eat money, let alone a precious metal ?

Sat, 01/15/2011 - 16:58 | 879008 unwashedmass
unwashedmass's picture


it is time to buy gold, buy silver, get out of the city, and get beneath a desk, put your head between your knees ...

and start praying.

this is not going to last much longer, and when it goes, its not going to be good.

not good at all. it may be peachy keen in Bennie, Lloyd and Jamie's world, but....for the rest of the population who need food and gas on a daily basis.....

at a reasonable price.....

its going to be horrific. its already really rough for people where i live -- we're starting to see the dead seniors turn up in cold houses and the house fires from people desperately trying to heat up their kitchens with gas stoves......



Sun, 01/16/2011 - 17:13 | 880344 IQ 145
IQ 145's picture

 "some unknown reason,"--don't you hate it when that happens. And that darn inflation went up too. Well, it's probably just a co-incidence.

Sat, 01/15/2011 - 15:04 | 878863 EB
EB's picture

How about this graph from the Feb '05 presentation materials:

Looks like a nationwide housing down turn was not only contemplatable, but contemplated.

Sat, 01/15/2011 - 15:32 | 878891 put_peter
put_peter's picture

This is hilarious... really.

Sat, 01/15/2011 - 15:07 | 878866 Silversinner
Silversinner's picture

They sure know about gold,but pretend they

don't.Would be funny if it was not for all

the victims caused by their policy.

They got blood on their hands and

we all know it.You will run bankers,

but you can not hide.

Sat, 01/15/2011 - 15:15 | 878875 gwar5
gwar5's picture

The CBs covet the gold, they always have.

They're goal is to make us ignore it.

We need to get our gold away from the FRBNY. Now.

Sun, 01/16/2011 - 00:47 | 879482 ronin12
ronin12's picture

Buy it. Ounce by ounce.

Sat, 01/15/2011 - 15:16 | 878876 The Rock
The Rock's picture

Golden [Laughing] Cow Bitchez!

Sat, 01/15/2011 - 15:21 | 878880 onlooker
onlooker's picture

Where can I find charts showing the ration of gold/silver to the dollar, oil, Dow and other units of measure?

Sat, 01/15/2011 - 15:25 | 878882 Gully Foyle
Gully Foyle's picture


And since oil and food are traded on international commodity markets, and they have gotten hold of all the money America is worth, and then some, they can play these markets as much as they want, whether it’s wheat or natural gas or gold. People like to claim that gold will rise as the US dollar becomes worth less, but they forget that it’s zombie money that has been buying gold, and that has thus lifted gold prices. Once daylight comes and the zombies are gone, there's only one way left to go for gold prices too.

Sat, 01/15/2011 - 16:27 | 878962 Davilis
Davilis's picture

They can stay zombied longer than you can stay solvent.  :-)

Sat, 01/15/2011 - 22:01 | 879301 JW n FL
JW n FL's picture

Yes Sir!

Sat, 01/15/2011 - 23:10 | 879376 trav7777
trav7777's picture

Ilargi and Stoneleigh are WRONG.  TAE has been pounding this same crap for years now.  WRONG.

I know this may be hard for people to accept, but they are using incorrect monetarist definitions.

Monetarism is FLAWED and a bogus doctrine.  When you approach everything through the bullshit of "velocity" and "quantity" in terms of THEORIES of money and these THEORIES themselves are fucked up, then it is no surprise that you cannot predict outcomes properly.

I have explained repeatedly why these deflationists are wrong and precisely how they are wrong.  Blaming fucking "speculators" for all price rises sets EVERYTHING as a MONETARY phenomenon which is ABSOLUTELY WRONG.

I don't care how "authoritatively" TAE's authors phrase it; their predictions have failed and will continue to fail.  They do not realize that they are subsuming their predictions within the framework of MONETARISM, which is a FAILED and erroneous doctrine.  And it isn't as if MONETARISM is the ONLY theory of money or value, it's one of FOUR or more schools of economics!  I am APPALLED by authors who ASSUME that Monetarism is somehow like freaking Relativity - even THAT was "proven" emperically; Monetarism has NOT BEEN.  Yet, idiot deflationists latch onto it like starving pigs on a teet.

The idiocy of maintaining that PRICES will fall and FRNs will be worth more when the ENTIRE FRN SYSTEM is structurally bankrupt - I absolutely MARVEL that otherwise seemingly intelligent people can not step back from Friedman's dead nuts and see the paradox in their basic claims.

Look.  The creditmoney system works in ONE DIRECTION.  If deflation occurs, the MATH makes implosion to 0 inevitable and that means that the FRN becomes useless, bankrupt, gone...the entire financial system built around FRNs collapses.  They will be worthless; that is hyperinflation as we know it.

TAE thinks the world revolves around fucking US HOME PRICES?  That is HORSESHIT.  The housing bubble was MERELY the tip of a vastly gigantic credit bubble iceberg.  Swaps and related derivatives dwarf outstanding mortgage credit by several orders of magnitude.

Mon, 01/17/2011 - 03:23 | 881068 cityguyusa
cityguyusa's picture

Gold stays neutral only the $ devalues.  The dollar is only worth what people believe it's worth or what you are buy with it today, tomorrow it may be worthless.

Sat, 01/15/2011 - 15:27 | 878884 LeBalance
LeBalance's picture

Such derisive laughter in a publicly recorded (and now publicly available) document does not speak to well of the survival instincts of certain individuals.

Sat, 01/15/2011 - 15:30 | 878888 DavosSherman
DavosSherman's picture

This is scarey shit. The Morg now runs the White House with Bill Daley.

Sat, 01/15/2011 - 15:44 | 878905 benb
benb's picture

Why be Frightened? We’re just in the Twilight Zone. (Daley has nothing to do with the Chicago Mob, The Syndicate.)


Sun, 01/16/2011 - 01:09 | 879513 trav7777
trav7777's picture

it's a real hoot, ain't it?  You could not GET more establishment insider than Daley and here he is the chief of staff.

JPM must've felt left out of the revolving door in the NeObama administration between GS and the Capital

Sat, 01/15/2011 - 15:31 | 878890 duncecap rack
duncecap rack's picture

Fall 2010 meeting:

Chairman Bernanke: Lets talk about exit strategies [laughter]

Sat, 01/15/2011 - 19:11 | 879138 Don Birnam
Don Birnam's picture


Sat, 01/15/2011 - 15:39 | 878896 MarketTruth
MarketTruth's picture

"In the absence of a gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good and thereafter decline to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as claims on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to be able to protect themselves.

This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."

The above was said by Alan Greenspan, 'Gold and Economic Freedom' in 1966.

Sat, 01/15/2011 - 17:11 | 879018 asdasmos
asdasmos's picture

......and then he turned to the establishment.


Volcker was hated for what he did, but I guess it is easier to keep feeding the monster.



Sat, 01/15/2011 - 15:49 | 878912 Fish Gone Bad
Fish Gone Bad's picture

Our central bankers may not be the smartest people in the room, but they are also not complete idiots.  How people perceive money (and its equivalents) has a great deal with how much money they have and how they acquired it. 

Sun, 01/16/2011 - 13:55 | 880100 Mark Beck
Mark Beck's picture

From Fisher;

"to provide the bridge financing until the new Congress gets to work restructuring the tax and regulatory incentives",

this is one of the first public acknowledgments that the reason for QE is to finance the government. Also, if you control the churn you can control the bid, which is a way to manipulate rates (price). However, by the time QE2 is complete, there is no way for the FED to backout. Especially if its is trying to agressively sell Treasuries into the market.

Fisher seems to imply that the FED has limits to monetization of debt which may threaten the FED's existance through congressional action.

But, exactly how will this play out?

How can congress abolish the FED when the FED is the only mechanism to inflate away the debt congress creates? For any soft political landing the FED must exist to debase the currency, and fill the role of congressional whipping boy as the USD is put to rest. Without the FED congress will shoulder all of the blame. This is inconsistant with their finger pointing ways.

It is interesting to note that the statement was made after extension of the Bush tax cuts and the expansion of regulatory control for new oversight (just more government overhead).

What restructuring of tax? To improve the business climate?

A further reduction of tax would help business, but how would this help fiscally?

The remainder of the quote;

"American businesses need to confidently expand their payrolls and capital expenditures here at home."

Fisher seems to imply that to foster growth you need an effective foundation for investment, sound money, and the rule of corporate law. That's correct, unfortunately the FED exists to undermine all of these.

Bottom line; Fisher is everything we have come to expect from the FED. However, Fisher need not defend the FED against congress. The FED's role is obvious going forward.

The FED is the only USD debasement option open to congress to fund government until crisis.

Mark Beck

Sat, 01/15/2011 - 15:58 | 878916 johnnyBoy
johnnyBoy's picture

Read "The Creature From Jekyll Island: A Second Look at the Federal Reserve"  My neck hurts from reading it.  With each page, I was shaking my head in disbelief that we allowed this institution into existence.  More incredibly, why do we allow it to continue to this day?

Sun, 01/16/2011 - 02:27 | 879619 Dantzler
Dantzler's picture

Plus a mole of your favorite element, jB

I'm more than 1/2 way through now and should have read this long ago.

Every American should read this book!


Sun, 01/16/2011 - 10:52 | 879856 The Talmud Kid
The Talmud Kid's picture

"The Secrets of The Federal Reserve" by Eustace Mullins.

Sat, 01/15/2011 - 15:52 | 878918 monopoly
monopoly's picture

The fed is so incompetent and useless in this society. They are destroying the moral fabric of this country. Just today, in the NYT business section, "Evergreen solar" who opened a factory in Mass. with 41 million  of state money in 2008 is now closing that factory, moving the business to China and laying off 800 workers.

And our plumber and heating company just advised effective March 1st, all products including copper, steel, plastic, fittings, glue, all going up 15 to 20%. But they cannot raise there rates as housing is now officially in a depression.

And the market moves higher.

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