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Guest Post: Your Pick, Ben, But One Goes Off The Cliff
Submitted by Charles Hugh Smith from Of Two Minds
Your Pick, Ben, But One Goes Off the Cliff
It's one or the other, Ben: you either push the real economy over the edge or you push stocks and the risk trade off the cliff.
Now that you've pushed the dollar down, Ben, it's your pick on what to push off the cliff: your beloved risk trade or the real economy. Here's a chart of the U.S. dollar and crude oil. Notice they're on a see-saw: when the dollar tanks, oil skyrockets. When the dollar recovers a bit, oil declines.
Ben Bernanke and the Fed are replaying their 2008 game plan: drive the dollar down to goose the risk trade in stocks. But a funny thing happened on the way to blowing another equity bubble: oil bubbled up, too, and that killed the real economy.
For the past three years, Ben has been trying to resuscitate the real economy via "the wealth effect": if your portfolio of stocks is rising, then you'll feel richer and your "animal spirits" of borrowing and spending will be aroused. The only proven way to goose stocks is to crush the dollar so overseas corporate earnings will be boosted by the currency depreciation (when transferred back into dollars, even flat profits look like they're rising), and U.S. exports will be cheaper to our trading partners.
Flooding the U.S. market with liquidity and keeping interest rates at zero had another consequence, one adamantly denied by the Ministry of Truth: it sparked a carry trade in which cheap dollars could be borrowed for next to nothing and exported around the world to seek higher returns.
Unsurprisingly, much of this free money flowed into commodities, which retained their value as the Fed pushed the dollar down. Also unsurprisingly, oil exporters raised the price of their oil in dollars as the dollar tanked.
Ben and his motley crew at the Fed reckoned that the financialized U.S. economy would respond positively to the lower dollar and the goosing of the risk trade in stocks. But the guys and gals seem to have forgotten that the real economy is dependent on oil. All the folks at the cocktail parties attended by Yellen et al. may be gushing over their hefty stock gains, but in the kitchen and carpark the workers are grousing about the rising prices of food and gasoline.
Now the cost of oil--the lifeblood of the real economy--is close to the point that it will push the real economy into recession. This sets up a difficult choice for Ben: if he pushes the dollar down to new lows, then oil leaps up and pushes the real economy off the cliff.
Alternatively, Ben renounces QE3 and "surprises" the markets with a rate increase, thus rescuing the dollar from freefall and pushing oil down. But that will send his precious risk trade and equity Bull off the cliff.
The politicos won't like either choice, but sacrificing the real economy will cost them their seat. All the fatcats who've raked in tens of billions from the risk trade Bull will be demanding that Ben "save" the financialized economy, but the politicos will see their political obituaries being written. Yes, the fatcats will shower them with millions in campaign contributions, but even those millions won't change the fact that Americans reliably vote their pocketbooks.
If rising oil pushes the real economy over the cliff, voters will not be re-electing incumbents in 2012.
Welcome to reality, Ben. Your "let's pretend the recovery is real" game is nearing an end. If you push the dollar down any more, then oil will go up and tip the real economy into a recession that QE3 will only make worse as you send the dollar into freefall. If the dollar rises, then your beloved "wealth effect" dies a horrible death on the rocks below.
Take your pick, but choose wisely.
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Imagine the jolt to GDP if all the incumbents are voted out. Wall Street being forced to buy 435 new Reps and 30-odd Senators ought to be worth at least 1.5 percentage points of growth! Toss in a new President and we're up 2%.
They already own them. Do you suppose a candidate can get nominated without influence, or run without money? They are all known to be "sound" or they get no support to begin with.
See a movie from the 30s called "The Great McGinty". Akim Tamiroff " I own the City Hall Party, I own the Reform Party, I own all the parties! Do you suppose I want to go out of business every time there is an election?"
The real purpose of the Fed:
They now control all branches of Government including the Supreme Court.
If the Fed raises rates they can force our government into Foreclosure.
This is known as austerity...maybe then our brilliant elected individuals will come to realize how replaceable they are...and start answering to those who elect them instead of bribe them.....?
I say Ben has really learned to skydive of the cliffs a lot better... Because as high, as steep, and as dangerous as he plays it. Hopefully, He has wonderful B.A.S.E. jumper potential, because he has always made a lousy Fed. Chairman...
Problem is, everyones calling BS on Bens cliff diving ability. He hasnt actually performed one yet, but we've heard for a couple years just how great he is at it. Come on Ben, lets see the Triple Lindy.
AS Tyler has shown here before insiders are selling and retail traders are the buyers. The FED doesn't care if the retail traders go bust when the market crashes.
'Are you expecting me to buy, Mr Bernanke?"
No Mr Retail peon public, I expect you to DIE!
Here is something all of you can do to put an end to the insanity!
Click on the links below to see the bills and tell your representatives to audit the Fed and reinstate Glass Steagall.
http://www.govtrack.us/congress/bill.xpd?bill=h112-459
http://www.govtrack.us/congress/bill.xpd?bill=h112-1489
Be sure to click on the links above "Tell Congress How To Vote"
Let's assume the wipe-out happens in some way shape or form. Last time "we" were not prepared. This time we MUST be prepared! So the wipe-out ensues and there is a request for EMERGENCY ACTION by the FED as all congressional leaders and members of the executive branch are corralled in a room and are told how the next phase is anarchy and chaos. At that point there must be a succession plan that involves stripping the Fed of its authority and the seizing of its assets because of its role in the destabilization of the US economy. All treasuries held by the Fed will be declared null and void and the US Treasury will Print US Dollars on presses seized from the Federal Reserve Bank, that is if they have not been set to blow up by Sadam Muammar Bernank.
A National Sales Tax is implemented and Federal Income Tax is eliminated. US debt is 100% retired and we begin to invest debt free $ into education and infrastructure.
All nationally elected officials are limited to no longer than 8 years in office. Problem Solved. Next!
I do it.
Coming up with plan for what to do if it happen again is a good idea. We the people need to be prepared so it not highjacked by wallstreet like last time.
"All treasuries held by the Fed will be declared null and void and the US Treasury will Print US Dollars on presses seized from the Federal Reserve Bank"
Not sure about this plan. Who declares? Is legal? vet with lawyer friends. Then send facebook link again. Also better if more coherent message and not as much inflammatory.
I would have to say "problem solved...NOT" to what is a very simplistic view of our current fiscal state. Declaring all Treasuries Null and Void would indeed turn the dollar into crispy toast and pretty much throw the entire known world into a bit of chaos. Just exactly how are we going to pay that half a million person military? How long would it take to get a "new" US Dollar up and running and out to the 300 million peons across 3,000 miles of continental US Terroritory? Start up a new currency, sure that can be accomplished in record time with what goverment exactly? The same as we currently have?
IMO, we are on a train to fiscal hell (the no bridge over the canyon) with no one willing to pull the brake cable because they are all afraid that the cable doesn't connect to the brakes, but don't want confirmation of it. Comments such as the one out of Greece (160% Debt to GDP is not a problem, yeah, right) are heard here and we are approaching that 100% level.
I was hoping that a 5-5-5 program might, might just be enough to turn things around, but I have abandoned that as too little, too late and not enough years to impliment (We will have a crisis in less than 5 years).
I don't know what the next government will be like, but I think we could see a regional division of the country if there is a big failure of the dollar. Texas could go back to being a Republic and take a couple states with it and that would start the ball rolling (Yeah, it's out there, but when you talk to some Texans, it's not that far out there)
I don't want to lose the security we currently enjoy, but the fiscal disaster that is looming is beyound my ability to seriously comprehend. Must be what the folks in Japan thought when they looked to sea and saw waves taller than trees rising before them. PM's for now, seem to be the high places that we need to be running for.
http://www.youtube.com/watch?v=Ubw5N8iVDHI
Don't know about y'all, but the alleged direct correlation on that chart isn't all the visible to me. I see huge spikes in oil where there's not much going on in the dollar. For example mid March to mid February 2011, or late Nov 2010 to mid Jan 2011.
The charts aren't going to say much to you about oil as long as you exclude geology. There is evolving an almost desperate preference on ZH to exclude geology, but in the end, geology won't care what you think.
Make no mistake this is as much about president Obama as it is about Bernanke. You can't blame or praise one without the other. Stop giving this president a pass.
My question. If not for 2000 points on the Dow what would this president have accomplished?
The prez is a puppet like all the other non-assassinated ones - why bother with him when the real money masters can be identified and belittled. You aren't so naive to believe the President runs things are you ? LOL - if so, welcome to ZH - hope you learn something kid
+911
Real convenient excuse for the Messiah. Wisdom has no age limits old man.
No, don't agree. President had choice to say no, not do it, not bail out banks, but too hard when he get most money from Goldman Sachs to say no. But he still had option to say no. If he strong, he say no. He not money literate enough and not realize what happening at the time. Can you believe he first say stock market not important. Then he got set straight fast!
What do you mean real money masters? Do you belittle Monsanto, Lockheed Martin, IBM, big corporations plowing billions into elections. Those are our masters.
Or are you naive who think one man is the boogie man, or one group planning take over of world. Like it possible, LOL
???? - you say the Prez has the power to say no in one breath, and then say Monsanto et al are the true money masters in the other. Learn about Soetero the stuffed suit, he can't say "no", he is a puppet. The masters are the Banksters - the companies you mentioned are nothing without capital and cover fire by the Wall Street and City of London types - so no they aren't the head of the syndicate
I agree, my point not clear. A strong President can say no to money contributors. A weak President give in to the money. One way to solve it is to take power of elections away from corporate monsters including banks who buy elections. Big corporations like Monsanto, Lockheed, Bank America etc lobby politicians for things that are against we the people interests.
1. Improved his golf game.
2. Improved his sex life with his lover, Reggie Love.
3. Got a Jew elected mayor-for-life of Shitcago, formerly reserved for Irish Catholics.
4. Gone to war without a vote or even a peep from congress or the MSM, like every good dictator should. No Gulf of Tonkin necessary for this guy.
5. Managed to get the fashion magazines to declare a gigantic ass, horse teeth and a wig on a Wookie fashionable and beautiful.
6. First time the Emperor's New Clothes was performed in public in real time.
There is more, but I have to go to the bathroom.
Moe Howard! Hurry back.
Welcome to the mother of all Catch-22's....
Any life that exists in the global economy is due to cheap money, the cheap money is in turn pushing up the prices of real commodities, but unlike in the past, the producers of these commodities can not increase supply because the ceiling has been hit. Neo-classical economic theory is being turned on its head. There are no "cheaper" substitutes waiting in the wings.
Another way of expressing it is that you cannot throw money at the problem to fix it; the economic definition of peak oil is that increases in capital investment do not result in increased supply. The Bernank is desperately hoping that the massive pumping of cheap money will result in increased supply. It won't because it can't.... Thermodynamics and Geology are not beholden to fiat....
The only question is how far this latest crack-up can go. We are now entering the 3-leg of this shit-show and trading it will be a challenge.
It's been chosen long ago. The wealth effect is a short term measure to allow one last pillage for the mighty. Once they've feasted on the last scraps they will toss the bones aside and move to the next kill.
Oh, and it's not Ben's choice.
Here it is ....
Mistakes must be corrected one step at a time.....and with the correct tools....
The FIRST tool is the TAX TOOL....which has to be corrected....The US can not have cake and eat it too....For if it eats its cake....it dissappears.....
The tax is an add back cost that has to be dramatically lowered....in order to make final products more salable to the world in general....
ie The tax should not exceed 10%....this would include Fed and State....This has to be in consumption form...both individual-corporate taxes must be eliminated....
.................
The SECOND tool is proper production structure...
At the moment the US has a FASCIST government structure that does not allow for corrections in its industrial sectors ....in that the industrial centers have become both oligopolistic-monopolistic....and therefore control the overall game....to the extent that iimpunity is granted to the industrial side without regard to the democracy....the demo elections are nothing but a farce.....just temporay mental food for the cattle that will soon be slaughtered....
ie TBTF must be prosecuted....The FED must be eliminated and replaced by real unalterable money....The industrial side has to become community based....enhancing the local community....not stealing from it....by giving the community wealth away to foreign communities by legal-monetary design....
...................
Make no mistake....
Both the TAX and Industrial items must be rectified....or else just look for continual economic demise.....
And this is just to start....
I'll just keep my eye out for the continual economic demise, as that other stuff... it ain't happenin'. Everything is broken (or will be) for a reason.
Power over the lives of others.
Economic freedom (and all other types) is unwanted competiton to their rule that must be destroyed, else we won't need them.
Not only will they not fix things, they will take out anyone else who tries.
Why are there still dingbats like you who waste time pontificating about what "should happen"? Stay with ZH a little while and learn something, young man. Neither party, nor their masters, gives a shit about what's "right".
throwing the bernank off a cliff would not harm him. a stake through the heart or sunlight. wear garlic.
Silver bullet.
Ultraviolet spotlights.
The idiots (who, unfortunately comprise 95+% of my family and friends) who are "getting rich" off their 401k, aren't factoring in two very important things.
1. In real terms, they are getting smoked by silver and gold, and are barely breaking even, per Tyler's post earlier this week. I think they were something like -.18% while silver was obviously trouncing the market.
2. What happens when "everyone" tries to cash out their "gains?" Obviously the big boys will have a good sense of when this is coming, and will frontrun it and drop the market like a stone, ramping up the panic to get out while the gettin is good. For those who don't cash out, and follow the "long term approach" they will simply fall further and further behind as gold and silver continue to smash the Dow and S&P.
Wouldn't it be funny if Ben announces "no QE3 coming folks" and then the market tanks like 40% in a week and all the money flies into PMs and oil, causing silver to hit $250+ and oil to spike up to $200+? Could you imagine gas at $7, no available physical silver, and the wealth effect disappearing in a week? Because pretty much everyone knows QE or some version of monetization HAS to come eventually, or else we will be in a depression for 10+ years.
Well, the DOW is a religion in this country. If it weren't these schemes would not work. That needs to change first:
Mighty DOW - ex VRWC
http://www.youtube.com/watch?v=4KOcg1IWjI8
Ben will not be forced to make this choice.
"My fellow Americans, I am pleased to tell you I just signed legislation which outlaws [insert scapegoat here] forever. The bombing will begin in five minutes."
h/t President Al Z. Reaganheimer
Best to hope insert here never turns out to be gold. Confiscation is the ultimate risk.
the printing may pause for a while, but when the economic slow down occurs and the population feels the pain , the fed (all central banks) will always resort back to money printing, it's the easy way out "in their minds".
How many trillions in unredeemed wealth did they destroy when they pumped up and then deflated the housing market?
How many trillions in unredeemed wealth are they going to destroy when they deflate the stock market?
They will suck the blood out of it so fast your head will spin. Then when good companies are valued at peanuts they will buy them outright with the money they have sucked out of the taxpayer.
Got a problem with it? Call 1-800-THE-ROTHSCHILDS
It's like a giant set of bellows that allows them to displace/consume wealth with every pump.
According to this article, Bernanke is correct in his approach. I almost kicked in my screen when I read it. Then I figured it was satire. But, it's not.
http://www.marketwatch.com/story/questions-and-answers-for-bernanke-2011-04-22
We seem to be looking for a Black Swan. I think history will someday show that Ben B. IS the Black Swan of our time.
+100
Concurred. In my first-hand experience, "The FED" is a typical D.C. swamp of frightened mediocrities addicted to prestige, as a substitute for actual autonomy and influence. They crush internal warnings and dissent, only the go-along-get-along crowd is allowed to have any "responsibility" (in the same way that a valet is "responsible" for your car, senior Fed staffers are "responsible" for implementing the money-center banks' demands to the letter). "Ben" isn't evil, he's just an incompetent lackey, doing what he's told, because he believes his own Keynesian B.S. That is the essence. Hard men, with ulterior motives, make the decisions, which are implemented by "Ben". Isn't insanity defined as doing the same thing repeatedly, and expecting a different result? Well, that's stupidity too, and for his Princeton/Harvard bona fides, Ben is a pretty dull customer. Remember this, you need a smiling face up front to hide the sharks behind the partition. "Ben" on a personal level is a kindly professor, who really thinks he's saving America. He's that dull.
I been in DC too. I think it's right, except they have million meetings and reach consensus for best way to go. The top tier make decisions, he part of top tier. Not like you talk. There is not big master saying it our plan, do our bidding.
It's concesnsus as best way to go.But when all the consensus think same way then it like you say crush internal warnings.
He's not really top tier, not strategically. He makes tactical decisions (like how to design QE) to further the strategic imperatives of the TBTF NEW YORK banks. I know of which I speak.... ultimately, why do you think an obscure guy from Augusta, Georgia (Ben) is allowed to ascend to that position? Skippy Geithner seem like a real heavyweight to you? They're errand boys, doing the bidding of file clerks, Col. Kurtz.
Okay imperatives of TBTF NY banks are his imperatives. His ascension to that position come from comprehensive studies of great depression. Great selling point at hearings and for media. And he have sweet face.
Has anyone made a FOIA request for Ben's phone records? Hopefully his masters don't block caller ID.
There isn't one person in NYFRB who can even use a bloomberg terminal. What a joke.
Hey, watch it buddy. We black swans can bite hard enough to leave a mark.
In my world,and most of my friends, the recession never ended.
Yes, the middle-class world, where money comes from wages and the bills aren't paid by "the accountant". I hear you loud and clear. Once diesel/heating oil/gas hits $7 (back of envelope calc, for $200/bbl. crude), things will get very rough in the real America.
I hear you...the recovery, if any, has been so tiny most Americans haven't even felt it. our country is going down the shitter.
www.forecastfortomorrow.com
Its a FALSE CHOICE. The economy will go off a cliff EITHER way, one through a deflationary depression of government and private default on ALL credit INCLUDING bank deposits OR we default through inflation. There is no choice, the decision was made decades ago to borrow more than could ever be repaid.
Charles, you forgot to mention one very important thing if QE3 is renounced: then house prices will go down a lot further. With a lot of second round effects on banks and the economy.
+1
This article is brilliant in its simplicity, BTW. Big picture. HELL-O, it ain't 1951 anymore, we're a net importer of oil, have been for many years now, and a net importer of many, many categories of primary, intermediate, and final goods. You sh*t in your hand, don't expect to get a handshake....
by BenB
on Fri, 04/22/2011 - 12:39
#14314796837035
There is no Problem.
A. I got Obama on board to go after the speculators to cap commodities
B. If Plan A fails, we institute price controls and make it illegal to raise prices
Problem Solved. You people are all just a bunch of doofuses and you know absolutely nothing about economics. Leave me alone. I know what I am doing, and you don't!
Ever stop to consider that maybe TPTB don't plan on having elections at some point? I find it idiotic that people assume the democratic process will remain unchanged when society is falling apart all around us.
No value in that. They own the media and the education system. The illusion of popular control helps keep the masses quiet.
"I find it idiotic"
Your arrogance is laughable. There hasn't been democracy in America for a very long time. Get educated, and be humble until then.
Couldn't disagree more, with the Patriot Act and bailouts Bush set Obama up for the kill shot.
The Plan has been working like a charm folks (that is if you're one of the rich): QE1,2 to bailout and buy all bad investments from banks, very low interest rates to lend unlimited money to the banks and increasing stock market, increasing exports and corporate profits abroad: ALL accomplished by LOWERING the dollar. And everything would be perfect if the TBTFs weren't speculating so much (a little is ok according to Uncle Ben) into oil and other commodities. He would like the fantasy world of a lower dollar and lower oil and commodity prices. Of course, don't believe the false cries from OJama and Washington, they know exactly what they are doing as the elites profit immensely (imagine if someone bought all your bad debt and you could borrow unlimited amounts of money at virtually no interest and put it into commodities) while you and I are slowly getting creamed. Yes, the master plan is proceeding on schedule.
I agree with you. While people continue to dissect politics and policies in placing blame, the master plan is indeed proceeding on schedule. The name of the game is to disguise the rape and pillage so that it is impossible for the average person to understand what is really happening to him/her. One day we will all be living in tent cities while wondering how we got there.
To me, it is a horrible burden to be "aware" and to know there's not a damned thing we can do about it.
very well stated...if only we could enlighten the remaining 99.999% of the population.
Extend and pretend - this very well might continue on the current path, give or take, for YEARS...
Its possible that japan, china, and europe will jump off the cliff and leave the dollar up there all by its lonesome.
There is no choice. Bernake would be removed from office and hung if he tried to pull a Volcker.
I'm glad Bernake's doing what he's doing--gives us all time to prepare. Outcome would have been the same anyway--Congress can't stop spending.
globalization will bring peace
.
BITCHEZ
Ben could care less about the real economy and real people. We know which one he will choose.
http://silverliberationarmy.blogspot.com/
I love this clip.
http://www.youtube.com/watch?v=OEfYY3cANqE
Anyone remember this little clip, pre-GFC????
"Never, never gonna collpase!"
"No, not worried; I work for the New York Stock Exchange"
LOL!!!
http://www.youtube.com/watch?v=4n3g5lUgkWk&feature=related
shouldn't we be calling it the Bernank swan dive?
The trade on the dying dollar is easy...stay long commodities, in particular silver, gold, and oil.
What is the obvious trade on the other proposed endpoint - strengthening dollar and risk-off? Cash is trash and so are bonds. Keep holding silver?
Is silver the either-or best option
the economy came off the cliff a couple of years ago. we have not hit the ground yet. it is gonna hurt
I do not think that Bernanke ever played Chess. When you play chess you have to think about 10 moves ahead. You also have to calculate if you move a piece in a certain way what your opponent will do to counter your move. You have to determine how your move will affect their decision and what you will do in a counter action, all while you are trying to win the game.
Ben seems to have blinders on were he just moves his pieces without consideration of the consequences of his actions. It is like he moves his Queen to check the King but the pawn takes his Queen and he does not even get a piece in return.
Are People like Ben so focused on one thing that they ignore all of the others. Accountants appear to have great skills with numbers but do they have any common sense? Is there any debth to their thinking or do they just look at the numbers and nothing else.
So, Bernanke is so proud that the Russel 2000 is up so much but for some reason does not see the hardship he is causing on not only average Americans but the entire World.
I do not think that Bernanke ever played Chess. When you play chess you have to think about 10 moves ahead. You also have to calculate if you move a piece in a certain way what your opponent will do to counter your move. You have to determine how your move will affect their decision and what you will do in a counter action, all while you are trying to win the game.
Ben seems to have blinders on were he just moves his pieces without consideration of the consequences of his actions. It is like he moves his Queen to check the King but the pawn takes his Queen and he does not even get a piece in return.
Are People like Ben so focused on one thing that they ignore all of the others. Accountants appear to have great skills with numbers but do they have any common sense? Is there any debth to their thinking or do they just look at the numbers and nothing else.
So, Bernanke is so proud that the Russel 2000 is up so much but for some reason does not see the hardship he is causing on not only average Americans but the entire World.
Neither government nor Fed want 401k's, for the net effect of bailing out the CDS insurors and allowing mark-to-make-believe accounting was to allow them to be silently looted by fund managers.
Fund managers get their fees regardless of outcome and they are totally in bed with the banksters.
401k's are not transparent at all.
'401k' will go down in history just like 'ponzi' and for the same reason.
People will learn to never again entrust their money to third party 'managers' who are enablers of looters.
I don't want in any way to downplay the relationship between a weak dollar and inflated commodities (esp. oil) but I think another element in the price run-up is the current high price of recovery and demand being very close to, if not outstripping, supply. This allows producers to charge prices that let them cover thier costs, unlike Nat Gas, where supply is so big that all the frackers are taking a loss {on thier investor's credit card, I guess}. It could go part of the way to explaining why the percentage increase in the price of oil is 4.5 times what the percentage loss in the value of the dollar is.
There is definitely a scarcity premium at play, likely responsible for a push to about $60, compared to the glory years of the Saudi oil glut in the '80s. The remaining $50 reflects the profound debasement of the dollar.
Marginal cost of a new barrel of GOM oil is 85-95$...quit deluding yourself about what is really going on... Peak oil is when no amount of funny money can increase supply, deal with it.
Peak oil is indeed a reality, but the U.S. inflation of the money supply is making things worse, especially since oil sales are denominated in dollars. If the U.S. had managed its money supply responsibly, the run-up in price would be less severe as of now, allowing for less wrenching adjustment to the increasing scarcity of easily-produced and/or high quality oil. Might as well wish for a pink unicorn, I know..... FYI there is plenty of crap (heavy, sulfuric) oil out there, but it's in our "amigo" Chavez's Venezuela....
so true...there is no form of clean oil, and no solution for the shortages we'll be facing in the next decade and after. The worst part is that nobody's going to be able to save money for when disaster strikes...
www.forecastfortomorrow.com
I think there's a third option worth keeping in the back of our minds. They continue with QE, but in stealth mode. Find a new way to circle the bonds back to the fed -- perhaps through foreign central banks or the fed's own off-shore accounts. That way they trick investors into dumping their dollar shorts and commodities longs. They continue to prop up the banks and dow, and make it look more like a "real" recovery.
That keeps the ponzi going through at least the election. And with a little luck tricks the Arabs into giving us oil for fiat, and the Chinese labor for fiat.
Interesting article in the WSJ about how the automakers are lobbying against cheap oil because no one will buy the high priced hybrid vehicles. Question is, are they the spec's B.O. is talking about? Conspiracy and collusion meThinks.
Who can afford a hybrid with a "good" management job at Mickey D's?
Horse, buggy, bicycle, walk - Bitchezzz!
Automakers are lobbying against cheap oil because they don't want to reinvent cars to run on the shit that Canada wants to pump through our land. Tar oil sands are garbage and the dirtiest form of energy, i'll support the auto companies' demanding high quality gas instead of the Canadians who are simply making way too much $ from our consumers.
www.forecastfortomorrow.com
You gotta wonder how long until the following news release:
Spokesmen for the Federal Reserve today announced that due to health problems, Ben Bernanke has resigned. According to sources at the Federal Reserve, Bernanke's resignation letter says Bernanke is grateful he was able to complete his measures and leave the US economy in the best shape since sliced bread was invented.
Oh, wait. Every economic prediction Bernanke has ever made has been totally wrong. Hmmm. So I guess it is unrealistic to imagine he would grow a conscience and crawl under a rock in shame.
Oh well. Never mind.
" Every economic prediction Bernanke has ever made has been totally wrong."
Wow! What a great contrarian indicator! Whatever "Bubbles" Bernanke says, we do the opposite! :)
That's an excellent bet, though timing is still an issue.
Wow! This one nails it!
Chairsatan is not his brother's keeper. Labor lays fallen in the field based on the false claim of dominion, which defines the Federal Reserve Bank system that has killed labor. The mark of Cane and the Bernank is death, the strong delusion of a suicidal fool. Chairsatan offers no tribute for his own freedom or his life, his offer is an eternal mark of debt that cannot ever be overcome by his terminal offer. Anyone dumb enough to accept his Federal Reserve Debt note is dually marked. There is a way to brake the Great Seal that Chairsatan has entombed the world with. Stand fast, do no harm and end the Fed. We can't buy sell or trade Chairsatans false claim and ever overcome the fact that labor is fallen. There is only one thing left to do, rise up in agreement with the sustaining offer. There is no choice, if you do not accept the call to rise you will remain sealed and entombed by Chairsatan's contempt. Labor cannot help you, labor is silent and dead.
Get naked again and be free. http://www.youtube.com/watch?v=qKSe9PE002o
Benny's gonna print. Oil's a big problem for the Obama-Ben-Timmah complex because it threatens votes. But take the dollar spigot away and real estate prices will collapse as interest rates spike. That will cause at least as much pain as oil prices, and would be far harder for the complex to 'splain away.
Look at how they're behaving now - looking to pin gasoline prices on speculators and cartels. That tells me they are willing to take their chances with obfuscation around petrol than they are with crashing the housing market.
Either way the scheme is coming to a close.
Ben will do whatever keeps the system going the longest.
His employers have given him his marching orders, - allow them to steal as much a possible for as long as possible without jeopardizing the operation. Ben has a lot of start/stop on a dime moves left in him or they will be left to the one who succeeds him.
Yes....we are approaching the next reset....faster than I had thought we would.
shocking to see just how far the dollar has dropped. what an interesting relationship, we see graphically how closely intermarried our economy is with crude oil.
www.forecastfortomorrow.com
the democratic process itself won't be changed, but neither will the fact that most of America doesn't have the aptitude to be a contributing part of that democracy.
www.forecastfortomorrow.com