Guest Post: Bernanke Employs a Modified 'Pump and Dump'

Tyler Durden's picture

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caerus's picture

Don't lie to me shit head...I will short the shit out of you when the time is right...

Fox Moulder's picture

The time will be right when the Fed runs out of money.



Wait, what?

Quintus's picture

No, the time will be right when people begin to laugh at the idea of exchanging valuable goods and services for the Fed's pretty paper oblongs and binary digits created out of nothing and backed by nothing.

Bicycle Repairman's picture

Forget about shorting the shit out of anything.  When the SHTF, the financial markets will be closed.  Permanently.  You may think markets are sacrosanct.  Markets may be sacrosanct.  But in the lofty world of think tanks and foundations, they have a better idea.  What's the idea?  It isn't in the constitution.

caerus's picture

the time will be right when the neckline is broken at ES 1260 confirming the reversal and yes I will short it please excuse the earlier whiskey addled posts...I tend to get over excited

Thomas's picture

Indeed, but I seem to be sitting in the minority by believing that Bernanke, because of his capacity to answer literally, was correct: Gold is not money and they are not printing money. To clarify, gold is not broadly accepted for goods and services, it really has to be sold (as an asset if you will) before it can be used in the market place. When he says he is not printing money, he is simply relying on the fact that the amount of actual physical currency in circulation is stable. If those who opposed him face-to-face had half a brain, they would ask the questions so as to not offer these relatively trivial escape routes. Ron Paul ought to know better; his rhetoric is getting the best of him.

LawsofPhysics's picture

Funny thing about that.  I just gave some silver coins to a plumber to sign off on some sewer lines I recently ran.  He also helped with some of the plumbing.  Pretty sure he would have taken some of my gold coins if the value of the services were more and I agreed to that payment. He also took pictures and sent them to the county and city inspector.  Gold and silver still remain a safer store of value until we figure out what the next "fiat du jour" is going to be and as long as people who are capable of added real fucking value to your life will take it for services rendered, don't fucking kid yourself about Mr. Paul's rhetoric.  Just like the post crash U.S.S.R. there will be many bribes to be paid shortly.  Either way, compensation for those who add REAL value to your life is about to find it's way back to these folks, pronto.

sellstop's picture

did he give you a receipt?

If he did, what did it say?



Dan Alter's picture

We have not known what thing all life forms use to measure value with.

Discovering what that thing is and how we use it is the oldest moral and economic question of all. I discovered what it was in 1985. Since we all use the same "thing" the same way all the time to measure how anything affects our personal welfare, that implies we can know the right way to issue money and credit which we most obviously are not doing now.

The title of the article is "The Objective Measure Of The General Welfare".

This discovery of what we use and how we use it to measure personal value necessarily led to deducing an even bigger danger that the oncoming catastrophic financial collapse we feel coming. You can not run money and credit honestly without consciously and publicly agreeing we are all own time cost minimizers. You each up to now have unconsciously tried to spend as little of your time alive as possible to get what you need or want. Unconscious gets you dead.

Re-Discovery's picture

Don't piss on my head and tell me it's raining!


(Not sure this comment applies in any way  to this post, but I've wanted to write it for some time.)

cosmictrainwreck's picture

LOL. Kudos.... and yes, it could be applicable here, as most anywhere - could say it has veritible universal application

JW n FL's picture

Good Ideas

our Piss Umbrellas need to discourage The Government from pissing on "We the People without a Billion Dollar Lobby" heads as well.

wsmith's picture

This obviously presents us all with another great buying opportunity.

Well, since I don't have a dollar to my name, I can't afford to enjoy the stock market.

Instead, I'll just stay home and masturbate while dreaming of the lovely Becky Quick.


caerus's picture

She is cute isn't she... Fuck in buffet!

wsmith's picture

Listen, you dirty motherfuckers.

I've spent far too many nights having hot sweaty dreams about Becky Quick and Erin Burnett.

At this moment, I've got my prick in my hand while thinking about the sexy Asian chick who hosts Fast Money.

This, of course, begs a fundamental economic question:

Which CNBC girl would you most like to vandalize with your proletarian farm tool?


TheForgottenMan's picture

You sick bastards, CNBC?

I think Jenna Lee from Fox (who just got married)

TSA agent quits:


wsmith's picture

Just answer the fucking question, Mr. Fancy Pants!



Or the hot Chinese Fast Money chick.

Jeeez!  You motherfuckers are complicated.

Your psychiatrists need psychiatrists.

So long for now.

And God bless all you rotten cocksuckers.

Fish Gone Bad's picture

I can't believe you left off the Godzilla queen herself, Maria Bartaromo.  At one time, before the invention of the make-up gun by Homer Simpson, I thought Playboy courted her.

I don't watch CNBC, or any TV for that matter.  Put me down for whichever one is the LEAST whiny one who does not get orange pulp stuck in her front teeth.


TheForgottenMan's picture

Ok, we will put you down for Rachel Maddow.

The Shootist's picture

yeah, Fox has the foxes... I kinda like that Megan Kelly.

slewie the pi-rat's picture

heluva 2nd & 3rd post, ws_ith.  might as well go for it!  is this the universe's response to what barney frank suffered at the hands of zHeroes?

jack stephan's picture

I find it ironic that the henchman president studied constitutional law and is doing everything to ruin it.  The master money printer has knowledge of the Great Depression in and out, but sending us farther down towards a Greater Depression intentionally.

The US got sold queer giraffes.


caerus's picture

errr... Are we still talking about Becky here? Nvm we're screwed see you after the crash

Big Ben's picture

With all the US budget problems, it is funny that no one has suggested selling the US gov's gold. I would love to get my hands on some of it (if there actually still is any). But I think that no matter how much economists and central bankers may denounce gold as a "barbarous relic", they deep-down realize that it is actually very valuable. So they will even sell off the strategic petroleum reserve, but they just won't let go of the gold.

Libertarian777's picture

Actually Ron Paul has suggested this multiple times.

Sell the gold back to that people. Not to pay off the debt, since it won't come close, but to call Bernake's bluff about the traditional barbarous relic being of not much value.

UP4Liberty's picture

Gold isn't the barbarous relic to which Keynes referred - he was talking about the gold standard.


But then again, according to Ben, when asked if Gold is money, he replied, "No."

TuesdayBen's picture

Was Ben also asked if Au is a store of wealth?

snowball777's picture

Does your argument not also apply equally well to say....a water tank?


LawsofPhysics's picture

Potable or non-potable water?

NervousRex's picture

For just a minute there I thought he was going to blurt out "Ya canna eat it now, can ya?

Just a fantasy.


Caviar Emptor's picture

There's a reason why nobody has suggested selling US gold reserves. As the article mentions, that reason is faith. Because, after all the BS has been said and done, the country with the biggest gold reserves commands the highest rung in the global economic food chain. That country's currency is considered "Gold Standard" and "reserve currency". That was the position of Pound Sterling in the early 20th century when the British economy was pre-eminent and larger than that of the US, and the Pound was reserve currency. The British used their gold reserve, the largest,  to pay for their vast empire (which was unprofitable in many locations) and for wars in Europe. And when the US began accumulating the largest reserve of gold, the dollar became reserve currency. 

Gold and power have always gone hand and hand. Everyone in power knows it, but tries to keep it quiet. So when the US could no longer pay for it's debts through trade and was running an ever larger trade deficit, the gold window was urgently slammed shut in 1971 because the gold reserve was being drawn down. And we've been trying to hold our reserve status with IOUs ever since. 

Never forget that currency is simply an IOU. For what? For gold. That was the original intent. IOUs can be traded for other things like food as long as there is gold supplying value. Otherwise it's just swapping food for paper. If the US ever sold off the gold reserve, the dollar would lose reserve status immediately and would play second fiddle to the next dominant currency. 

oldman's picture

Hey Cav,

In spite of what I posted below----I really hope that you are correct. I like your thought better.

thanks            om

Dr. Eldon Tyrell's picture

I'd like to dedicate this song to Barry, Boner, and Bernanke...

"Were in the basement, learning to print.....All of it's hot!

10-20-30 Trillion ready to be spent...

Were stackin' em against the wall...those gangster presidents..."

LMAO's picture

"There's a reason why nobody has suggested selling US gold reserves. As the article mentions, that reason is faith"


That dear Sir is the reason why "extend and pretend" policy still works and this is at the heart of the issue why there is never going to be a decent Gold reserve audit.


"Because, after all the BS has been said and done, the country with the biggest gold reserves commands the highest rung in the global economic food chain"


In which lies the real twist of faith; it's not about having the biggest gold reserves, it's all about pretending to have the biggest gold reserves. It's not about you proving you have all this gold, it's all about counterpart interest having to prove you don't have it.



Bicycle Repairman's picture

"Because, after all the BS has been said and done, the country with the biggest gold reserves commands the highest rung in the global economic food chain"

The US has attempted to change this rule i.e. the country with the biggest military commands the highest rung in the global economic food chain.  Yet oddly even with all this military action the US sinks deeper into the economic morass.

As for US gold, even if it is in Fort Knox, it is probably encumbered in any number of ways.

equity_momo's picture

Most gold - most powerful military. The 2 have generally gone hand in hand.

The Brits built their Empire through naval power remember. They put France and Spain in their place when needed. But Prussia became a risk by the 19th century and when Bismarck put good relations with Russia and Austria at the heart of his foreign policy ,  the British saw the writing on the wall. Cue an Alliance with the US to undermine the eastern powers and create World War 1 through diplomatic chicanery.

Have no doubt who was behind WW1.  As have no doubt who will behind WW3 (some say WW3 started on 9/11 or when the US invaded Iraq)

Crumbling Empires under threat start more and more and bigger and bigger wars.

Caviar Emptor's picture

Well said. That 'back to the wall' feeling is growing. It started in the 1970s. Hence the need for more and more military. Gold is needed to pay for it all, or in or case, the belief in our gold reserves. We survived off the gold standard for this long because China needed access to our markets, and Europe/Japan were still completing their post-war build out and also wanted access. But the dynamic has changed. 

Marco's picture

OPEC could start demanding gold for oil and empty government coffers in a couple of months unless it triggered an invasion, but then again ... an invasion would prove it's still not gold which puts you on the top rung, but your military and willingness to use it.

Bicycle Repairman's picture

"OPEC could start demanding...."


oldman's picture

There is no gold.

Otherwise. we could just back the treasuries we need to sell externally at some outrageous rate of exchange for the foreign buyers----we the people don't require gold backed anything or we would have said something before.

iI dreamt that the gold went to bush1----just a dream five or six years ago


Manthong's picture

Selling of any gold that may be left, emptying the SPR and selling of a trillion or so of federal property would go a long way towards "fundamentally transforming the United States".

Can you say "Hope and Change" in Mandarin?

KTV Escort's picture

One of the best articles I've ever read, period.

static's picture

Agree ,  a well articulated epistle.

Raymond Reason's picture

Excellent.  And is Ben really so dumb?   ....or is he like many habitual liars, eventually losing the ability to perceive truth.