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The central planners are probably too entrenched in their own game to realize that when they use terms like "unlimited quantity" in reference to their money - even average 8 year olds around the world will get the message: Anything that can be created in unlimited quantity is obviously worth nothing.
Even oxygen is not available in "unlimited quantities"
In fact estimates of the total number of atoms in the known universe are 10^31.
Since we are now routinely dealing with monetary quantities of a Trillion ( 10^12) - we are getting there!!
That is the lie they want you to believe, humans have no ability to supply "unlimited" anything.
They said Helicopter Ben was coming in to save the day yet credit creation is negative.
"humans have no ability to supply "unlimited" anything" ...except lies and maybe, bad television
Exactly. I wont be selling any of my gold and silver until the full extent of the crisis hits, and then I will be looking for an appropriate exit point. I assume others will do the same. Meaning gold we go from strength to strength whilst the writing is still on the wall.
It is not about the EU or Gold anymore. It is about who will get hit next. Imagine having an R.E. boom now!.
All part of a deflation phased downturn over time. The tops get hit when it's their time to take the hit. They come in different places at different times, one after another. The question becomes who will not get a bail out?
The short answer. Investors
They don't call it buy low, sell high for nothing.
In a deflation market, who gets hit? You say the one with debt. I say the one with no cash flow. Cash is King.
Track your 52 week hi & low. Buy the lows, sell the highs. Watch the cashflows.
Track them first and know what your doing. If I am playing Gold here, I am looking at beat down Gold Stocks on the boarder market pull backs.
I have no F ing disclaimer & I sure as hell am not any Tyler from some movie.
Some movie? If this is your first night on ZH ... oh wait you already started a fight :)
Given a deflation scenario, as the cost of everything is reduced in dollar terms (due to a scarcity of dollars), how do you expect stocks to hit 52 week highs?
Wouldnt 52 week lows be broached to the downside as the value of money increases?
Even without the idea that in deflation people spend less money, so that P/E will be hit (does anybody remember when P/E mattered?), it just doesnt seem to make mathematical sense that equities will make new 52 week highs in a deflationary environment.
Desperate times. Desperate measures. Assembly required.
This is exactly why the FED needs to be audited.
I don't think the laws of our land give these f**ckers the right to do what ever they want and how they want, no matter what. There has to be someone watching this and saying "enough is enough", which is the point we are at now and have been for over 2 yrs.
Gold is still a good play. Thing is can there really be an intervention? How would this work? What gets sold? And would that not be seen if it were large? Gold will cool, but as things stand it is up and away LT. I 've ended my Euro exposure months ago when GB/LB were open to a tax transaction tax. That was it for me and moved the money to an existing gold fund. Well done, made money and euro keeps sliding.
BTW great article of what I read. Thanks.
Eurosystem's (ECB + 16-Eurozone centralbanks) Gold Reserves are down EUR 1 milion for week ended May 7 to Euro 286,698 billion worth of Gold. While that looks almost unchanged I guess it stiil means they sold some as Gold in Euros quotes at historic highs every day!
"Virtually unlimited funds will be provided." Almost right. Switch the adverb "virtually" to the adjective "virtual" and you get closer to the truth. Virtual funds in unlimited amounts will be provided. This is indeed possible since the funding source (computer entries creating "money") is not limited by physical restraint.
The situation is quite simple: the fiat-currency financial/economic system is coming down. Why? Because a simple financial discipline does not exist any more.
The next financial system will rise based of an evaluation of a commodities basket. Remember that farmers stop growing crop without properly compensated. The same is true for every other vital for society existence commodities.
The bottom line: nobody can screw the Mother Nature for a long time!
It's clear now that last Thursday's crash was to shake Oil to protect dollar, at the same time shorted US stock big time and forced Euro zone into panic, then earn a handsome over just a weekend. Somebody must lost big money in just 5 days. Now CNBC takes away Greek protest pictures, I suggest SEC shall watch CNBC more rather then porn.
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