Krieger On Printing And Propaganda

Tyler Durden's picture

From Mike Krieger of KAM LP

Desolate and without purpose
Radiating from so many septic sources
Forming the fabric of a wayward people
Disappearing as the vestiges of our past

Scratched like tartan into virgin soil
A substrate for progress and disarray
A spreading network of broken dreams
Searching for a thoroughfare to take us away

Just a little tale from the streets of America
Sparkled promises paved with pathos and hysteria
Trenchant, weary native sons
Step back, step back
And see the damage done
Shoot straight to the horizon
The streets of America

- Bad Religion, “Streets of America”

A nation that is afraid to let its people judge truth and falsehood in an open market is a nation that is afraid of its people.

- John F. Kennedy


Printing and Propaganda

As I have been saying for the past several years, the misguided Keynesian witch doctor central planners unfortunately in charge of our economic fate are attempting a grand experiment on us based on completely insane and nonsensical theories that have no chance at success.  These clowns claim to have all sorts of “tools” but in reality they have nothing.  When faced with a complete credit collapse of proportions never seen before in recorded history there were and are only two “tools.”  It’s the two P’s:  Printing and Propaganda.

While I have written about both of these “tools” before I am going to focus on the propaganda part today since it is the most applicable to the current state of the financial markets.  We all know by now that the centrals planners believe the tail wags the dog.  So the economy doesn’t lead to higher stock prices but higher stock prices will lead to a better economy.  Insane?  Absolutely.  Is it their religion?  100%.  The other important thing for investors to be aware of now when they are comparing the current state of affairs to what many lived through in the 1970’s is that the central planners have learned some lessons.  What we must always remember about central planners is that they will never renege on their core philosophy which is that an elite academic and political class in their wisdom are better stewards than free humans interacting in a marketplace.  That said, most people do not share their worldview for obvious reasons (who wants their lives micromanaged) so the trick of the central planners is to micromanage your life while you think you are in charge.  As Goethe said “None are more hopelessly enslaved than those who falsely believe they are free.”  He didn’t just make up this clever quote, it is a tried a true method of the most successful control systems throughout history.      

So even the brainwashed masses out there understand that price controls were tried in the 1970’s and failed.  We also know why.  Therefore, the last thing the current group of central planners will want to do is announce price controls.  That doesn’t mean they don’t attempt them anyway.  They have been rigging stocks in the United States consistently for the past two years and most people get this and accept it as a part of the current state of disunion we are in.  However, as I wrote last week we have now entered Phase 2.  This was represented by the raid on commodities. 

A tried and true strategy that TPTB have used in precious metals for years has been to create such tremendous volatility in gold and silver and especially the shares that most investors stay away since they can’t stomach it.  This strategy is now seemingly being employed to a much wider spectrum of commodities, hence my warning on trading futures last week.  The entire game was perfectly summarized by a quote in the most recent 13D report where it was stated:  “Unfortunately, this battle between finding a safe haven and the authorities’ desire to render it ‘unsafe’ is only in its earliest stages.  Our manta since 2007 – governments can and will do anything to survive.”

The Bernank Bluff    

So part of the propaganda “tool” used by the central planners is the manipulation of financial markets, which seems to increased in emphasis in recent weeks.  The other consists of outright lies and disinformation.  Put yourself in The Bernank’s shoes for a moment.  This guy loves printing more than Hewlett Packard.  He is despondent beyond belief that the markets and an increasing amount of financial commentators have criticized his precious QE insanity.  Meanwhile, the economic data is starting to roll over and housing looks set to launch into another spiral lower.  So what is a Bernank to do?  Bluff the heck out of the markets.  He knows that the only way he can have cover for his printing party is to smash commodities because the rise in commodities is the biggest point of contention amongst the masses.  Unfortunately, most people don’t delve deep enough into how the system works to have the serious moral and philosophical issues with the central planning system as I and many others do.  The Bernank knows this.  Bread and circus is a tried and true method.  Problems emerge when the bread runs out.  So the period we are in right now is huge for the Bernank and his merry band of mental patients.  They don’t have to make any decision on more printing until June when the current fiasco ends.  It is during this window when they think they can have their cake and eat it too.  They can print like mad yet at the same time claim they are about to stop and maybe even tighten.  Yeah, and the Easter Bunny is sitting next to me trading LinkedIn shares.

In any event, this is The Bernank Bluff and he is milking it for all it is worth while at the same time orchestrating raids on commodity futures.  This is just a massive psychological game against the investors class to keep them from the assets that will actually provide protection.  Well Bernank you’ve got a month left.  Make the most of it because after that you need to act.  I can’t wait to see you try to tighten as the economy rolls over. 

The Slut Walk

While millions around the world from the Middle East to Europe rush into the street to protest the rape and pillaging of their respective economies by the banksters and their political puppets guess what the good citizens of Boston, the heart and soul of the first American Revolution, are protesting.  For the “right to be dirty.”  I kid you not.  The article is right here  Now let me make one thing crystal clear.  I am not trying to be the moral police.  I could care less how people treat themselves or behave as long as it doesn’t harm me.  The point I am trying to make is that as the biggest theft in American history has just occurred and continues to occur, this is what they are protesting about in Boston.  You know what the elites on Wall Street and Washington think when they see this?  They smile from ear to ear.  What a bunch of sheep.  We just stole trillions and they are protesting for the right to be slutty.  Look, I think I am a pretty decent observer of cultural trends.  Rest assured ladies, sluttiness is in a secular bull market.  It is encouraged by the elites.  What they fear is not degeneracy but rather self-respect and logic.  They want you to behave like animals so they can justify treating you like animals.  Has anyone read Aldus Huxley’s books?  This is worth reading   You go girl!
Peace and wisdom,

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TruthInSunshine's picture


Sorry for the OT.

LNKD at $104, will lose another 10% per hour (if it's lucky, if not, much more), and retrace to $80 or lower by close, with a bunch of people stuck for as much as a $122 buy in.

Epic fail.

See you at > $35 as soon as full on shorting is allowed, RoboFader.

IntraDay Chart. Λ

TruthInSunshine's picture

This is probably the one article written wherein I should have not gone OT, since I agree with it wholeheartedly.

Great article, Mike.

I disagree about The Bernank's options, however. He has no real (and certainly no good) options and a trapped rat, in reality, drowning in his own effluent.

Nacho.Libre's picture

I had an opportunity to go to a luncheon today where Fed Pres Fisher of Dallas gave a talk.  It was to a group of the area's bankers, influential people, county judge, mayors, school district supers, university pres., etc.

So, this is what he said.  The economy is getting better, he voted against QE2, there will be no QE3, the Fed is NOT monetizing the debt, China is still buying treasuries, immigration is good (they have a study on the Dallas Fed website), and they provide their educational series "building wealth" for free.  It is such a great resource, they will provide it to teachers and college professors for free to share with their students.  In addition, he "strongly strongly urged" the heads of the local universities to make taking a class in "building wealth" a prerequisite for entry into college. 

So, there you have it.  The propoganda continues.  And the whole crowd bought it.  All the bank CEO's, community leaders, educational leaders, etc.  That's why we won't be getting out of the mess we are in.  They have a big propoganda machine and it works from the top down, and now they even want to indoctrinate the high school and college kids!  But the jokes on them!  Our kids don't care enough to learn anything and are teachers only want raises and don't care about education, so HA HA! 

Montecarlo's picture

We really are riding the USS Titanic.

Nacho.Libre's picture

I forgot to add, Fisher also stated that the Fed knows there is a ton of liquidity sitting around doing nothing and that it's not getting out.  If I recall correctly, he said they had some $1 trillion plus sitting as reserve deposits for banks and it was earning .25% or less, so they know the banks aren't putting it out there.  He also mentioned that business balance sheets were flush with cash, but he didn't talk about most of it being off shore, the way it's talked about here. 

The community bank president that invited me to the meeting asked me what I thought.  I told him it was interesting to hear the guy lie like that to a room fool (full) of people.  He did a have a nice presentation and seemed sincere enough in saying that they are really trying to do good and help small business and people.  I almost wanted to believe the guy.  Maybe they really do think they are trying to do good.  I dunno, but some of his body language indicated to me that he knew he was lying.

SoNH80's picture

And Fisher is "the hawk"!  The "friend of small business!"  The job of the regional Fed presidents is to keep the Chamber of Commerce rubber-chicken dinner circuit calm and happy.  They deliver their lies in the local accent.... in Boston, they wear a Sox hat and eat chowder, in Dallas, they wear cowboy boots and eat Frito pie; in Cleveland, they talk about bowling (you get the idea).  It was a real stroke of genius by the Jekyll Island boys to regionalize the system... all of America has a Fed regional bank to call "their own".

Federal Reserf's picture

It is actually the USS Bernanktic but as Peter Schiff says, according to their logic, the Titanic voyage was a success because some passengers actually made it to New York.

ghostfaceinvestah's picture

When do (put) options open on this POS?

rumblefish's picture

I's stupid.

How the he'll the make one penny is beyond me.

LawsofPhysics's picture

LMFAO!  Although you may get some interesting responses to this post.

smlbizman's picture

i cant tell if i am looking at  sluts or the running of the bulls... 

Robslob's picture

Countdown to buy hands down! Gold & Silver discounted and on sale must simply ignore the price of paper when making "the" decision to survive and thrive in "their" environment.

Ahmeexnal's picture

You won't be able to buy physical at the theoretical "spot price". What's more, banks are actually buying physical above spot.
Physical price is around 39-40USD/ozt. Still a bargain!

Long-John-Silver's picture

All my local coin and bullion shops are out of silver or refuse to sell silver using current spot price. One dealer admitted to having physical Silver in his safe but is refusing to sell it at current manipulated prices. When I asked when he would start selling it again he told me when it was over $50 again. Quote: I'm not stupid :unquote.

Hacked Economy's picture

I recently searched eBay to find a private seller who is physically located only a few miles from my own home.  We agreed to meet in a public place, and I bought all the BUNC Maple Leafs and SAEs he had with him at the time for $38 apiece cash.  He was able to avoid the eBay fees and keep all the cash himself, and I got physical silver at a good price.  Win-win!

He wants to meet again this weekend to sell more of his stash.  I suppose I got lucky!

Robslob's picture

Good is full of irony.

Irony 1: RoboHo's time selected stock picks moving up on what ever chart he can selectively find but actually going down in terms of real value.

Irony 2: Precious Metals going down in paper price but up in terms of real value.

RobotTrader's picture

Gold is stuck under $1,500

XAU cannot get any traction.  Was looking for a "follow through day" but that thing is totally dead right now.

Ratio Traders are still gangbanging those gold stocks repeatedly.

Meanwhile, Fed-sponsored, and TPTB-supported stocks like the credit card companies are making yet another new high today.

The boys over at KWN must be at their wits end.

Hacked Economy's picture

I think it's funny how RoboTrader gets junked no matter what he/she/it says nowadays.

Sucks to be you, Robo.  :)

Arius's picture

yep...its tired....lying down, going to thing you know it never wakes dead!  time to sell it Short!

akak's picture

Gold is stuck under $1,500

XAU cannot get any traction.  Was looking for a "follow through day" but that thing is totally dead right now.

Ratio Traders are still gangbanging those gold stocks repeatedly.

Meanwhile, Fed-sponsored, and TPTB-supported stocks like the credit card companies are making yet another new high today.

The boys over at KWN must be at their wits end.

No, actually RoboLemming, they are NOT at their wits end at all, because unlike you, they are not autistic, and have more than a one-day mental timeframe, and can therefore foresee the likely results of the ongoing insanity in Washington and Wall Street, while you are like a child who runs in front a speeding truck while crying "Ooh, lookie, something shiny!"

RobotTrader's picture

IBD "Riverboater" Top 50 stocks doing well today.

ORCL, BIDU, ARUN, PCLN all green

luk427's picture

To open a Zero Hedge account this test should be used.

dick cheneys ghost's picture

Anyone read this about IMF and Gold? Would love to hear your thoughts.

Chuck Walla's picture

Everybody knows its hard to out slut the politicians.

honestann's picture

The federal reserve is laughing their asses off as their "paper silver and gold" manipulations scare americans into selling... while asians back up the truck and take every gram/ounce/ton they can get.

The gringo sheople will wake up alright... after gold and silver prices have risen another 20% to 50%.

PS:  To the credit of those gringos holding physical silver and gold, they have not been selling very much.  It was the paper PM holders who lost their nerves.  Hopefully when they re-enter the PM market they will exclusively buy physical.  That is the only way to thwart the predators-that-be.

comrade pravda's picture

We all can fight the propaganda.  Talk to your neighbors, friends, and random people you meet during a day.

Sometimes I talk with people who are truly brainwashed. One guy told me that he believes what the government says because the government says it.  I'm not sure if that means he believes X or not X, as the government will say both.

On happier days, I find that the people I meet are rejecting television and the rest of the so-called mainstream media and its message of fear and hate.

Atch Logan's picture

Thank you for this article, Mike.  But JFK was killed for his beliefs, especially those anti-Federal Reserve. I think that America is lost, and in its victory the rest of its imperial states.

I lived in and owned an apartment in Barcelona for years, and that city was the most free and "living" of any city in the world (including Paris). I miss it, but as a part of Spain I really respect what the Spanish, Egyptians, and, I guess, Greeks are trying to do by taking to the streets.  What else is left?  Pitty the Irish, who had the momentum and opportunity. Who could have made a difference and been the leaders. Shame. Kudoos to Iceland, bless their hearts.

I voted for Obama for President, but not for World King. I understand what he and "them" are doing, but his and their arrogance is beyond reproach.  If anyone disagrees with them on any grounds, they are terrorists. Period. There is no rationale, no semblance to any actions, expect what the USA wants. Where does it end??


john39's picture

where does it end?....   war.

centerline's picture

That last question may not have a nice answer.

thriftymost's picture

I voted for Obama for President.

Thanks a lot, bozo!

Now we know who to blame.



PaddyFields's picture


One of the reasons I left Ireland some years back was because it was beingrun by a small bunch of self-serving cronies .... the media, banks, the government , hugely inflated civil service, the whole shooting gallery.

Any resistence to the demands of the IMF, ECB and the 'elites' was deemedto be reactionary and dangerous. Massively indepted Irish citizens were too afraid/selfish to rock the swill bucket. We as a nation got fed a diet of cheap credit, reality tv and dumbed down education rendering us easy prey to a political class as they first inflated a devastating property bubble and then 'nationalized' the associated private speculative banking debt.

Sad story, but it ain't over yet. Once the real pain kicks in and Irish people start to lose

their 'stuff'..... they'll eventually start to lose 'it'.

Ron Paul 2012

nhsadika's picture

These women are so dazed and confused it is a satire on the modern western world.  The women are somehow trying to act like their behavior should have no influence on anyone, that they (and thus we) are truly individuals and not part of a society which influence each other, so they are banding together in a community to stand for this cause?  Weird.


Franken_Stein's picture


Has it never occured to anyone of you,

why in the last years all of a sudden these social trends of:


1. Wearing tattoos

2. Piercing

3. Putting metal under your skin


somehow seemingly have emerged out of nowhere and become so popular among the youth and part of the "mainstream culture" ?


Can you not possibly see that these social trends maybe are artificially engineered and financed to gradually prepare and accustom people to the idea, that it is perfectly acceptable to needlessly have something implanted inside your body, an idea, that 20 years ago, would have been TOTALLY UNTHINKABLE to anyone ?


I'm telling you, these elite people have absolutely sinister plans and they think in decades and centuries, not years.


john39's picture

it goes far deeper than most realize.  The medical industry for example is set up to drug the population into a zombie like daze, while sucking life savings out of retirees at the same time.  the world is controlled by a power cult, they use banks and currency as a means to end, power... but this is not about money.  That is why no one should be surprised when the government makes no real effort to save the economy.  collapse is the plan.

thriftymost's picture

Collapse is the plan.

In Judeo-Protestant, proto-fascist Amerikkka, seemingly, yes.

Other countries have other ideas.

Ha ha ha.




Dr. Acula's picture

Can you not possibly see that these social trends [tattoos/piercing/implants] maybe are artificially engineered and financed to gradually prepare and accustom people to the idea, that it is perfectly acceptable to needlessly have something implanted inside your body, an idea, that 20 years ago, would have been TOTALLY UNTHINKABLE to anyone ?

I would love to have implants in my body, specifically ones that give me super cyborg strength and supercomputing mental powers. And I would rather have a tiny electronic implant than have to carry around loose pieces of plastic like credit cards and drivers license.

There's nothing inherently evil in this. All of this would happen on its own in a free market even if there weren't a government at all.

But, like with any technology, I'm sure the government will find a way to use it for evil, e.g. theft, kidnappings, and murders. And the development of the technology will also be severely handicapped due to government meddling.


TIMMAYYY's picture

I hope you can afford these chips and these operations...otherwise you will be the new under-under-under-class muther clean my shoes you normal

Dr. Acula's picture

Computer chips are dirt cheap; it's the field of medicine that's hampered by government interventions and endless red tape. It's cheaper to buy a 22nm-technology 3+ GHz quad-core CPU than it is to get someone to look at your hangnail.

And there's nothing wrong with shining shoes. Per Ricardo's law of comparative advantage, even non-cyborgs have a place in the free market. Unless their job is destroyed by minimum wage laws.


Derpin USA's picture

It will absolutely be used for evil. It will be used as a means of control and complete slavery.