This page has been archived and commenting is disabled.

Mark Fisher Slams Bernanke: "QE Is Going To End Bad...This Is Going To Be The Bubble Of All Bubbles"

Tyler Durden's picture




 

Today's must watch clip comes from Mark Fisher. Key highlights: "QE2 can't end right. Worthless paper after endless paper.... What's good for the equity markets is not necessarily good for the economy. The equity markets are not going to create jobs. If you have a paper bag full of money are you going to go out and hire workers and take risk with healthcare and all these other regulatory restrictions? No, you are going to go ahead and buy high yield, you will buy equities, you will buy risk assets. The fallacy in the whole thing is that you are not going to go ahead and create jobs just by pushing up the market by 20%, 15%. In fact, to some degree by pushing up commodity price to levels that are going to be obscene, which is what is going to happen, you are hurting everybody in mainstream America... If you have all this money coming into the system, and this money stays in the equity and commodity markets, when at some point you take this money out of the system, where is this money going to come out of? Parabolic moves have Parabolic corrections. This is going to end bad. It is not a matter of if, just a matter of when. This is going to be the ultimate bubble, this is going to make 2000 look like a cakewalk. This is going to be the bubble of all bubbles."

Fisher is absolutely correct. The argument is pretty simple - if the Fed was right, it would just print a quadrillion $ right now, openly buy every single security, monetize every single bond ever, and presto: full unemployment, no slack, and a perfectly functioning economy. In other words, Utopia, through the magic of central planning.

When did this fail last time it was attempted? And how many years have we been saying this is precisely the key fallacy in the Fed's thought process. But this is so obvious, the Chairman will obviously never grasp it.

This video has to go viral.

 

And some more thoughts on commodities:

 

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 11/09/2010 - 14:37 | 712534 John McCloy
John McCloy's picture

It already is the bubble of all bubbles. Unless he begins to raise rates ASAP and not just a token amount it is all over. We cannot have  nationalized stock market but that is exactly what we have.

Tue, 11/09/2010 - 14:40 | 712555 NoBull1994
NoBull1994's picture

I can only imagine what would happen if Bernanke changed course right now and killed QE and started raising rates.  Stock markets would have to close for a week before reopening down 30%....  

Tue, 11/09/2010 - 14:49 | 712621 John McCloy
John McCloy's picture

I suppose we know why we extended the 10% rule in short selling recently. What they have attempted to do since March of 2009 is the worst idea in the history of terrible ideas. I agree with you about the 30%. Another round of instant wealth evaporation that will surpass the 2008 vaporization but I imagine the TBTFs would get a heads up about a change in course and would we see a massive leg down as they liquidate their equities since they are insiders.

 

Tue, 11/09/2010 - 15:04 | 712735 GoldSilverDoc
GoldSilverDoc's picture

OK, I thought the fat guy was smart until he started on the "gold has no end use, so it won't be a part of the monetary solution"  nonsense... the same baloney that every ignorant nitwit has tried to foist off on the world since the "new paradigm" of no real money.

So now, I have to wonder about everything he said....

Tue, 11/09/2010 - 15:34 | 712904 LowProfile
LowProfile's picture

Watch it again.  He's just puzzled on what the new currency will be other than the dollar.

Answer:  No new currency.  Dollar and all other mis-valued fiat are revalued against gold (gold to five digits), paper games surrounding gold and markets are ended, gold is allowed to trade freely.

Freegold.

He just hasn't figured it out yet.

Tue, 11/09/2010 - 15:40 | 712930 Janice
Janice's picture

The hosts said he was an oil guy.  He is an oil expert, so I would expect him to try & figure out a way to make fiat money oily.  But what do turbans want if they have all the oil in the world? Gold! You can't eat oil.

Tue, 11/09/2010 - 17:50 | 713687 wake the roach
wake the roach's picture

You can't eat oil.

 

Actually, the net energy gains produced from oil feeds the majority of the world... So I would argue that we in fact can and do, eat oil and I bet those "turbans" would like arable land more than gold...  

Also, all money, whether paper or commidity is "oily". The real value all money represents is a claim on an economys energy consumption at any point in time. Net energy gains produced from natural resources that are then embodied into the production of goods and services of exchange value to which profit (credit) is added. All gold and paper bugs need to wake up to this. Money is energy. Golds historical monetary trust was always due to the energy it embodied. To replace an ounce of gold required access to an enormous surplus of energy just as it does today. Scarcity has nothing to do with it, scarcity is just another way of saying that gold requires enormous ammounts of energy to find and extract. Do we really need to waste the worlds last remaining sources of net energy surplus digging up shiny metals to embody the energy wasted in digging up the metal in the first place? Insanity. Makes me wonder, what energy exchange value will all this gold and silver have 20 years from now when mankind does not have the net energy available to even produce enough food? The world does not need and cannot afford gold money, let alone more excuses  for resource wars. We need 21st century solutions to THE age old problem that has always plagued mankind and always will. We need more energy (money). 

Tue, 11/09/2010 - 20:36 | 714386 dark pools of soros
dark pools of soros's picture

have you tried any gulf shrimp lately???  FDA will let you eat as much of it as you want

Tue, 11/09/2010 - 15:43 | 712949 Bartanist
Bartanist's picture

Tell me what is the logic that you use for gold having value? Is it because gold has always had value and is real money? Why is that? What is inherently more valuable about gold than rocks painted with the number 4 on them?

Everyone agrees that gold has perceived value. Some people are simply blind to the fact that there is no rational reason why. Can I interest you in a tulip?

Tue, 11/09/2010 - 16:22 | 713117 thefatasswilly
thefatasswilly's picture

1) Does not degrade / deteriorate.

2) Effectively static amount available.

3) Pretty.

Same reasons silver / platinum are valuable.

Tue, 11/09/2010 - 16:27 | 713138 Captain Obviousness
Captain Obviousness's picture

Repeat after me: Gold is scarce. That is why it has value, and it is the ONLY reason it has value. Rocks painted with the number 4 are not scarce. Tulip bulbs are not scarce (if there was huge demand for tulip bulbs today, is there any doubt that nurseries would be cranking them out by the millions within a year???).

Oil is scarce, but a large percentage of its value comes from its industrial value as opposed to its scarcity. For that reason it is not an ideal money - the value fluctuates too much based on economic cycles and changes in technology (and its value will crater eventually when economically viable unsubsidized alternative to the internal combustion engine is developed, which is inevitable). The only reason gold has value is that it is scarce, and that is why it is has always been money and always will be, at least when the shit hits the fan.

Tue, 11/09/2010 - 18:06 | 713791 jpintx
jpintx's picture

1) Fisher ain't a dummy,

2)in the gravest extreme, gold has value due to scarcity only so long as you can trade it for needs

3) in the absolute worst case future someone will gladly trade 10 lbs of gold for a brick of 22LR ammo

 

just my $.02

 

Tue, 11/09/2010 - 19:39 | 714178 technovelist
technovelist's picture

in the absolute worst case future someone will gladly trade 10 lbs of gold for a brick of 22LR ammo

That would really be a worst-case future! 22 LR is only good for hunting rabbits and other very small game. Now if you were talking real rifle ammunition, then that might be a different story.

Tue, 11/09/2010 - 20:21 | 714336 FreedomGuy
FreedomGuy's picture

It's not really complicated. It's the old supply and demand, or scarcity and desireability. Clear carbon stones called diamonds are really valuable, too and have served as money in the past, too. You could settle debts with treasure. Gold and silver just seem to have characteristics of maleability, universal availability and universal value.

Works for me.

Tue, 11/09/2010 - 15:39 | 712927 Bartanist
Bartanist's picture

And that is why there is no confidence in the markets, the Fed or the government.

Tue, 11/09/2010 - 16:11 | 713070 ElvisDog
ElvisDog's picture

And a 30% down leg in the stock market is the "end of the world"? If that's the only cost for changing the direction of our society from the abyss, it's a small price to pay. And I would argue it's the perfect time to raise interest rates - right after a midterm election

Tue, 11/09/2010 - 16:51 | 713321 Assetman
Assetman's picture

In a perfect world, that's what might happen.

The reality is (a) moving interest rates higher is a process; and (b) the revalution of the equity markets may be 80 percent lower when all is said and done. 

I think what is implied is that the 30% is just for starters, as there is no guarantee that rates won't still go move higher.  Otherwise, I'd take that trade as well.

Pragmatically, the Fed is going to take a very incremental approach with rates, meaning that the QE stuff will likely be unwound first before those Bozos detach from ZIRP.  The problem is, they've gone so far up the QE road that reducing the balance sheet may be very problematic.

Tue, 11/09/2010 - 19:16 | 714092 Rasna
Rasna's picture

Ahhhhhhhhhhhhhhhhhhhhhhhhhh...

Transparency & Oversight... If it's not too late!

Ron Paul Is About to Totally Revolutionize the House Monetary Policy Panel

http://www.cnbc.com/id/40013227

Tue, 11/09/2010 - 15:07 | 712752 High Plains Drifter
High Plains Drifter's picture

As far as gold and silver are concerned, there would not be that big of a problem, if they had not created paper gold and silver and ETF's where they are leveraged 100 to 1 paper to product.

Tue, 11/09/2010 - 15:39 | 712926 traderjoe
traderjoe's picture

FYI to y'all: APMEX is now out of silver 100 oz bars for immediate delivery. 

Tue, 11/09/2010 - 14:37 | 712536 Bigger Dickus
Bigger Dickus's picture

This fat guy is a bubble himself... (rimshot)

 

 

Tue, 11/09/2010 - 14:39 | 712553 citationneeded
citationneeded's picture

These fat guy jokes are in a bubble... (ironic rimshot) :)

Tue, 11/09/2010 - 14:44 | 712578 Bigger Dickus
Bigger Dickus's picture

Confucius say: it is unwise for hooker to blow Bubbles when Bubbles don't want to pay

Tue, 11/09/2010 - 15:25 | 712851 TraderMark
TraderMark's picture

Here is the downgrade of U.S. debt by Dagong

http://www.fundmymutualfund.com/2010/11/chinas-dagong-downgrades-us-debt...

Basically in short order, the US actions are harmful to creditors as they have reduced ability AND intent to pay back debt (unless inflating away debt is the ability and intent)  They speak the truth.

 

Ironically in Sept the SEC denied them entry into the U.S. market to compete with S&P and Moody's. I wonder why

Wed, 11/10/2010 - 01:10 | 714979 StychoKiller
StychoKiller's picture

Ironically in Sept the SEC denied them entry into the U.S. market to compete with S&P and Moody's. I wonder why

But you know the answer:  TPTB can only put out effective propaganda if and only if THEY control it!

Tue, 11/09/2010 - 14:45 | 712581 WALLST8MY8BALL
WALLST8MY8BALL's picture

Mark's a great guy, hard to work for, but overall a kind hearted man. He has given alot to the business, and charities as well. Dont bet against that man!

Tue, 11/09/2010 - 15:31 | 712863 B9K9
B9K9's picture

Well, he may or may not be a great guy, but anyone who prefaces a series of observations & comments with:

The fallacy in the whole thing

Doesn't have a clue. That is, anyone who gives even one iota worth of legitimacy to the various rationalizations of QE X.0 by deeming them worthy of rebuttal is already lost.

For the entire post-WWII period, the USA has enjoyed the benefits bestowed up it by Satan's marriage between the Fed & the MIC. However, that relationship is now on the rocks, so the situation we're dealing with involves national security issues and outright treason by certain parties.

Great Britain enjoyed reserve status for 200 odd years - dating from N American victory in the French-Indian war(s) until the end of WWII. What did it take to destroy this special status? How about the complete destruction & annihilation of their world-wide empire.

So let us now consider the USA. Are people trying to advance the notion that one man, or group of men, can unilaterally destroy the world's most privileged position in order to save a few financial institutions?

Excuse me while I laugh; I'm sorry, but the MIC is going to have the last word. And how convenient that they even have an oath that justifies their actions beforehand.

Tue, 11/09/2010 - 15:42 | 712944 traderjoe
traderjoe's picture

What do you think is going to happen? I don't disagree with you concerning the MIC. Things certainly seem to be heating up all the way around. Just curious to understand your thinking concerning the likely next steps. 

Tue, 11/09/2010 - 15:27 | 712866 Smu the Wonderhorse
Smu the Wonderhorse's picture

He leaves a great deal to be desired in terms of cogent presentation.  And why keep harping on currency pegs as if allowing other currencies to rise against the dollar would be some kind of magic fix?  He sounds like Tim Geithner.

Tue, 11/09/2010 - 15:50 | 712984 Client 9
Client 9's picture

It's all about the currency pegs.  America is suffering because America can't compete with China on goods.  The more expensive Chinese goods are the more competitive US goods are. The more competitive US goods are the more US goods are bought, the more manufacturing jobs are created.  The peg is a major (not only) factor is the destruction of the US manufacturing base.  Let it float to its true value and then let's see if people still want to buy Chinese drywall.

Tue, 11/09/2010 - 14:45 | 712584 erik
erik's picture

so why did gold/silver just take a serious nose-dive on the daily charts?  anyone know?

Tue, 11/09/2010 - 14:46 | 712591 Cdad
Cdad's picture

Sell programs coming through now...selling everything.  Indiscriminate.

Tue, 11/09/2010 - 14:49 | 712624 erik
erik's picture

seriously.  this is not stable right now.  it has a similar feeling to the flash crash day.  it all pretty much started calmly that day if i remember.  the market was down but not down so much that you would be worried, then the bottom fell out.

Tue, 11/09/2010 - 14:57 | 712676 johnnynaps
johnnynaps's picture

It was time to crush the small traders with a little manipulation.

Tue, 11/09/2010 - 15:30 | 712879 badnews...buyspus
badnews...buyspus's picture

Sure looks like the selling began just after the ZeroHedge post on the missile launch. The smart $ knows that if we piss off China more, we are over (reread The Art of War).

Ben is reading his text books again, Timmy is at recess and Obama is Indonesia renewing his passport. No one left to buy the dips.

Tue, 11/09/2010 - 14:45 | 712589 Potemkin Nation
Potemkin Nation's picture

The helicopters are flying. Hallelujah, Hallelujah!

Tue, 11/09/2010 - 14:46 | 712593 RobotTrader
RobotTrader's picture

Just cracked big....

Tue, 11/09/2010 - 14:47 | 712606 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Robo, you before anyone else should know by now what this means for equities.

by Mr Lennon Hendrix
on Tue, 11/09/2010 - 13:29
#712485

 

Flash crash coming....

Tue, 11/09/2010 - 14:52 | 712641 John McCloy
John McCloy's picture

This whole selloff in the markets is being done to keep the metals at bay. It must be frightening the pants off them

Tue, 11/09/2010 - 15:14 | 712786 Max Hunter
Max Hunter's picture

Zackly.. it's gonna work about as well as Yen intervention..

Tue, 11/09/2010 - 14:52 | 712645 erik
erik's picture

why did you say "flash crash coming" in that post?  did you see something?

Tue, 11/09/2010 - 15:17 | 712788 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I thought it would move equities (Rus2k primarily) down a couple percent instead of the marginal sell off that happened.  I also figured to get a nice move out of the VIX.  I figure there was massive manipulation in 1) PMs (selling) 2) equities (buying) and the dollar (buying).  I think this move says a few things.  First, the game is only close to over, and the EE has been given permission by the BRIC nations to live to see another day. 

Scenario number two, which is the opposite of the first.  This move may also have been panic induced.  Maybe the G-20 has decided to cut the dollar as the reserve.  This would make sense then so that dollars could have one last opportunity to be used.  Cutting down gold would be the first thing one would do so to buy at a lower price.

It is probably something in between these two.

Tue, 11/09/2010 - 15:24 | 712843 High Plains Drifter
High Plains Drifter's picture

Robo just does that because he likes to fuck with the metal heads....

Tue, 11/09/2010 - 16:22 | 713116 Ripped Chunk
Ripped Chunk's picture

And it works every time

Tue, 11/09/2010 - 20:51 | 714434 Buck Johnson
Buck Johnson's picture

Couldn't have said it better myself, this is a sign.  Also you see the way Faber was trying to get him to talk about the situation in more of an abstract way than a definite way.  The pundits know that they are supposed to say and think happy thoughts in regard to the markets now.

Tue, 11/09/2010 - 14:55 | 712659 Internet Tough Guy
Internet Tough Guy's picture

Down .1%. You are kind of an idiot.

Tue, 11/09/2010 - 14:56 | 712669 trav7777
trav7777's picture

yea; monster drop...did the world just end or something?

Tue, 11/09/2010 - 15:04 | 712730 tmosley
tmosley's picture

How will we ever survive this terrible crash all the way down to levels last seen...12 hours ago...

You should cut yourself every time you post a chart for gold going down.  Destitute shithead.

Tue, 11/09/2010 - 16:38 | 713221 akak
akak's picture

+ 10X as many junks as tmosley's comment might receive from ignorant shitheads.

Tue, 11/09/2010 - 15:09 | 712761 moofph
moofph's picture

...what a coincidence this "roll-over" occurred after catherine keating's tap dance for the cnbc talking air-heads as they were firing off some spitwads at her...one question for keatings pie chart...what was that big slice of "other" in the big-bad-JP-pie-in-the-sky chart?

Tue, 11/09/2010 - 15:34 | 712906 FreedomGuy
FreedomGuy's picture

You knew this had to happen with a quick runup yesterday and today. Seems to me the top 5% of the market value is traders moving in and out. Even though I love PM's and have a large part of my portfolio in them, I get worried when it starts to look like panic buying or even selling. I wouldn't mind them leveling for awhile and getting some more buying opportunities.

Having said that, I think it shows how fragile things are. If you read the other ZH posts here you can see so many potential triggers for panics that it wouldn't take much for meltdowns in many different areas.

Tue, 11/09/2010 - 16:29 | 713159 the rookie cynic
the rookie cynic's picture

Buying the dip.

Tue, 11/09/2010 - 14:48 | 712615 Bigger Dickus
Bigger Dickus's picture

Please sweet Moses, make gold drop 10% and scare the living daylights out of the silly gold bugs so I can buy more.

Tue, 11/09/2010 - 14:48 | 712618 IrishSamurai
IrishSamurai's picture

"if the Fed was right, it would just print a quadrillion $ right now, openly buy every single security, monetize every single bond ever, and presto: full unemployment, no slack, and a perfectly functioning economy. In other words, Utopia, through the magic of central planning."

So, Tyler you've read my doctoral thesis "How to Create a 'True' Capitalist Economy" ... good to see you finally get it.

- P. Krugman

Tue, 11/09/2010 - 15:00 | 712713 umop episdn
umop episdn's picture

And the Fed Res would own the world, and US taxpayers would be on the hook for it. Brilliant plan, if you are a psychopath.

 

Tue, 11/09/2010 - 16:23 | 713121 Ripped Chunk
Ripped Chunk's picture

Correct on all points

Tue, 11/09/2010 - 14:50 | 712627 LongSoupLine
LongSoupLine's picture

I like the exchange with "Mr. I'm bald-ponytail-exfootball" in the end, where he bumbled for some kind of comeback...and failed.  You can see he wanted to say something to Mark, but knew he would look like a fool if he tried.

Tue, 11/09/2010 - 14:50 | 712630 Chemba
Chemba's picture

If there were a stock underlying Ben Bernanke, NYSE: BB, now would be the time to "buy"

Tue, 11/09/2010 - 14:50 | 712632 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Bernanke currently trying to fight the tape. 

"The Harder They Come" Jimmy Cliff:

http://www.youtube.com/watch?v=xGE4dnrPPZQ

Tue, 11/09/2010 - 14:52 | 712637 Bigger Dickus
Bigger Dickus's picture

Confucius says: We don't need no water let the motherfucker burn

Tue, 11/09/2010 - 14:55 | 712666 Hondo
Hondo's picture

I tend to agree with Mark.  Bernanke as sure as he takes a breath is killing the elderly by forcing commodities prices higher.  The only demand for commodities is the same type as drove oil above $140 bbl in 2008....speculation.  This speculation is based on the continued devaluation of the $$.  But, rates have started to rise even in the face of POMO operations....is QE2 not really going to happen or is the belief it will likely blow-up.

Tue, 11/09/2010 - 15:07 | 712754 trav7777
trav7777's picture

The Fed will have to start buying the entire auction.  If rates creep upward, we have a recipe for cascading default and short the phonebook time

Tue, 11/09/2010 - 14:56 | 712671 DollarDive
DollarDive's picture

The Kaufmann Group put out a study today on the systemic risks of ETF's.  It's along the lines of Tyler's prior work that highlighted the huge short interest in ETF's.  Essentially, the piece concludes that there will be a massive short squeeze in many of the stocks, followed by a panic that witnesses many players go down as they are unable to buy in the stocks that have exploded higher.  This will result in investors panicking and pulling assets out of the ETF's.  It's a well written and powerful piece.....Enjoy.

 

http://www.kauffman.org/uploadedFiles/etf_study_11-8-10.pdf

 

Tue, 11/09/2010 - 14:59 | 712692 moofph
moofph's picture

...strange how these paper trailed charts are rolling over but my physical silver is shining brighter...lol...run in fear paper tigers...scatter back into your holes of insanity!

Tue, 11/09/2010 - 15:00 | 712708 deadparrot
deadparrot's picture

If you understand the basic truth that QE is being done for the benefit of a select few big banks, it makes total sense. No one with an ounce of common sense or capacity for simple logic could possibly conclude that QE is beneficial for the economy or even broader market.

I love how idiots back in the day used to praise Greenspan. The fact that he used big words and spoke in abstacts fooled everyone into believing he was a genius. I took so much flak for pointing out the obvious - Al uses his vocabulary to confuse, and hide his lies. Only truly intelligent people can take a complex concept and explain it in plain language.

Tue, 11/09/2010 - 15:00 | 712709 max2205
max2205's picture

Hey leave Ben alone, he is just trying to kill the people in soc sec by starving them and making sure they get no interest and have to live off what little money they have....hey more soc sec for us, right?

Tue, 11/09/2010 - 15:01 | 712718 johny2
johny2's picture

scary....it feels like watching a horror movie, and you know something terrible is coming...

Tue, 11/09/2010 - 15:04 | 712731 johny2
johny2's picture

than comes Ben with a bunch of freshly minted dollars and everything is ok again.

Tue, 11/09/2010 - 15:02 | 712724 tony bonn
tony bonn's picture

i can't believe that anyone in the fed is uttering truth.....i feel a conspiracy coming on....

Tue, 11/09/2010 - 16:24 | 713128 Ripped Chunk
Ripped Chunk's picture

Coming on ?????

Tue, 11/09/2010 - 15:05 | 712743 flrzero
flrzero's picture

Fisher stutters and splutters a lot and then suddenly half way through he gets excited and becomes more articulate.

Tue, 11/09/2010 - 15:10 | 712767 RobotTrader
RobotTrader's picture

Wow, this thing is falling out of bed.

First items sold at the first whiff of a credit crisis or financial "accident" are gold stocks.

No exceptions.

Tue, 11/09/2010 - 16:10 | 713066 Shrimp Head
Shrimp Head's picture

Yeah, pay no attention to the 30% run up in five days.  Nice chart.

Tue, 11/09/2010 - 15:12 | 712772 Bill Lumbergh
Bill Lumbergh's picture

"Everything I've heard is that the QE will result in positive outcomes"...who exactly is filling your head with these notions?

Tue, 11/09/2010 - 15:51 | 712990 Spartan
Spartan's picture

Krugman

Tue, 11/09/2010 - 16:26 | 713133 Ripped Chunk
Ripped Chunk's picture

Sponge Bob & Matthew

 

 

Tue, 11/09/2010 - 15:13 | 712782 RobotTrader
RobotTrader's picture

As usual, tech stocks with p/e ratios over 100 are unfazed and immune to arguments such as:

"QE2 or no QE2?"

"Inflation or deflation?"

"Strong dollar or not?"

"Are banks lending or not?"

 

Tue, 11/09/2010 - 15:20 | 712824 Mongo
Mongo's picture

"Financial incest of QE1, QE2..." now there is an expression...

Tue, 11/09/2010 - 15:24 | 712841 swissinv
swissinv's picture

Here is my take: there won't be bubble of all bubbles, why? So far it was possible to print money by keeping inflation expectation low due to manipulation of the gold and silver price (a benchmark for inflation). But as you can see the US overexaggerated with QE2 (which was very visible and well followed by the market) and the "latest" uncoverings of illegal practice of the gold/silver cartel (litigations against JPM, HSBC due to gold price suppression as explained by whistleblower Andrew Maquire). Now the United States has two choices: Either they continue to allow the gold price supression and become officially a banana republic where no law enforcement exists or to bail out the gold cartel including JPM which lead to QE3 to QEn. Similarly, there are two choices for the morgage crisis: either the US give up the property rights and allow foreclosers without legal valid deed or bailing out Bank of America, Fannie and Freddie (QE3 to QEn). As you can see, America has to give up fundemental rights on which any economy builds or increase inflation or inflation expectations. Since money can be easily printed on FEDs discretion and greedy lawyers can fight forever, what is the most probable outcome?

Tue, 11/09/2010 - 15:26 | 712853 swissinv
swissinv's picture

-> will end up in hyperinflation with run costs, wars and unemplyoment

Wed, 11/10/2010 - 00:08 | 714894 Green Leader
Green Leader's picture

A few months ago I had a dream where gasoline was $500 USD a gallon.

Tue, 11/09/2010 - 15:25 | 712844 goldmiddelfinger
goldmiddelfinger's picture

20 minutes he gets to speak common sense. If it weren't for CNBC cheerleading gold's run it might not necessary

Tue, 11/09/2010 - 15:25 | 712847 josefhiggins
josefhiggins's picture

The small, speculative trader will have a hard time trading the next bubble (I personally believe we're currently in the mist of a market bubble - no ones telling us). Market manipulation will be swift & ramped. 

Love how Bernanke, Fed, Gov think a positive Wallstreet/Financial Market will uplift the economy out of the trash its been placed in. I agree with Mark, give me a bag full money and I'm not using that new found money to take on new employees/freelance/contractors, my plan would be to invest in myself and/or my own finances.

Tue, 11/09/2010 - 15:36 | 712910 Bartanist
Bartanist's picture

I don't think they think that Wall Street will lift the economy. I think they think that it will fail.

Keep in mind that they have done many things to prevent a recovery from happening and to prevent money from gtting to the people.

Tue, 11/09/2010 - 15:28 | 712864 Fraud-Esq
Fraud-Esq's picture

Tell me when the PENNY STOCKS at Ragingbull and Stockhouse start taking off. Especially the fraudulent promotions. That's a leading indicator of liquidity splashing down. I bet PM's are absorbing it now. The Greenspan penny bull runs of 90's and 00's were insane. Remember those?

Tue, 11/09/2010 - 15:37 | 712920 Al Huxley
Al Huxley's picture

Yes, I remember them very well, and know exactly what you're talking about.  Thats one of my sell signals (stockhouse chatter, coffee room stock recommendations, etc...), and we're nowhere near it yet.

Tue, 11/09/2010 - 15:54 | 713002 goldmiddelfinger
goldmiddelfinger's picture

If constant, teeth chattering euphoria on CNBC and the public spuming about gold run isn't anecdotal enough for you then your own shoeshine guy is front running your trades.

Tue, 11/09/2010 - 15:55 | 713008 Fraud-Esq
Fraud-Esq's picture

No kidding. When normally sane men over the age of 55 started telling me about the latest, greatest penny stock (which they all assumed HAD to be legitimate because of the SEC and all) I sold out of the market! 

Tue, 11/09/2010 - 15:57 | 713015 goldmiddelfinger
goldmiddelfinger's picture

I sold AGQ this morning at 142 (in at 62). You're acting like an old man not seeing your own signal set

Tue, 11/09/2010 - 16:28 | 713155 Ripped Chunk
Ripped Chunk's picture

Penny stocks = total suckers game.

Better off playing the pick 5 at the convenience store.

Tue, 11/09/2010 - 15:28 | 712867 Bigger Dickus
Bigger Dickus's picture

Gold just shat the bed.

Tue, 11/09/2010 - 15:58 | 713004 goldmiddelfinger
goldmiddelfinger's picture

see my post #713002, above yours

Tue, 11/09/2010 - 15:31 | 712868 the rookie cynic
the rookie cynic's picture

They tried to save the economy with a technology bubble. Pop.

They tried to save the economy with a credit/housing bubble. Pop.

They're trying to save the economy with a money bubble.  Just a matter of time 'til that blows too. POP!

How about we rebuild a real economy, dick heads?

Don't waste those trillions on paper shit.

If you're going to spend it, invest it instead on 1000 new nuclear power plants, 1000 new hospitals, a transcontinental mag-lev train network, basic science research and development, energy efficient housing, and a real education for all Americans.

We are currently paying the price for 40 years monetary and fiscal stupidity. Bernanke and Obama would rather bail out the banks than build a future for our kids.

Want real jobs, real wealth, and real human thriving? Get a fucking real economy.

Tue, 11/09/2010 - 17:09 | 713433 Assetman
Assetman's picture

No can do, Rookie.  That makes way too much sense and doesn't benefit the banksters lobby enough.

Love,

Ben

Tue, 11/09/2010 - 15:31 | 712883 Bartanist
Bartanist's picture

When trying to teach someone how to run a business or a project, a campaign or whatever, we are taught always to stress "begin with the end in mind". I forget if that is a "Covey" phrase or who's but it helps.

A thinking person when evaluating the actions of others, be they competitors or just some random person such as Bernanke, would then logically evaluate his actions based on the most likely outcomes and then trace back his motivation from there.

Assumptions:

- we have a globalist in the Whitehouse who has no problem using executive orders and treaties to subvert the US constitution

- the US has been waging global expansionist wars and subverting governments since WWII

- the real power in the (at least western) world appears to be the money power, not the political power

- our financial systems and economies have the substance of a torn cellophane wall, yet we insist that they remain intact without reinforcement or more substantial reconstruction

- people in authority are doing all sorts of seemingly nonsensical things that counteract all common logic, ethics and decency

- we are routinely told lies and we have only clues of the real truth through observation

- The past government and through the continuation of the current government EXACT copies of Hitler's laws and propaganda have been implemented in the US.

It scares the hell out of me that a country with as much military as the US has been userped and is so seemingly unstable.

What the heck is the end goal? Is it ALL about globalism and a global government? Are there two or more powers behind the scenes playing the world as a large chess board? There must be sense to the nonsensical if only the goal and motivations were apparent.

 

Tue, 11/09/2010 - 16:13 | 713080 the rookie cynic
the rookie cynic's picture

The end goal is power. Those in power will do anything to get more and to retain it. Those waiting in the wings will cooperate on some issues while competing in others. There is no end goal other than getting as much and holding it as long as possible.

Tue, 11/09/2010 - 15:31 | 712887 proLiberty
proLiberty's picture

if the Fed was right, it would just print a quadrillion $ right now, openly buy every single security, monetize every single bond ever, and presto: full unemployment, no slack, and a perfectly functioning economy. In other words, Utopia, through the magic of central planning.

 

In their heart of hearts Keynesians know that when they propose to bring about Utopia by forcing the cost of money to zero, cannot work.   Otherwise they would not be so reluctant to go full bore and run the presses until they ran out of paper and had to recycle bills by adding zeroes like they did in Germany in 1923.

Keynes' theory springs from humanity's quest to achieve a Utopia apart from God. Ralph Raico is professor of history emeritus at Buffalo State College. In his 2008 article, Was Keynes a Liberal?, he wrote:

 

Throughout Keynes’s career, however, clear indications appear of his longing for

a much more radical social order—in his words, a “New Jerusalem” (O’Donnell

1989, 294, 378 n. 27). He confessed that he had played in his mind “with the

possibilities of greater social changes than come within the present philosophies” even

of thinkers such as Sidney Webb. “The republic of my imagination lies on the extreme

left of celestial space,” he mused (1972, 309). Numerous statements strewn over

decades shed light on this somewhat obscure avowal. Taken together, they confirm

Joseph Salerno’s (1992) argument that Keynes was a millennialist—a thinker who

viewed social evolution as pursuing a preordained course to what he conceived to be

a happy ending: a utopia (O’Donnell 1989, 288–94).1

 

1Ralph Raico, Was Keynes a Liberal? The Independent Review, v. 13, n. 2, Fall 2008, ISSN 1086–1653, Copyright © 2008, pp. 165–188. link to PDF: http://www.independent.org/pdf/tir/tir_13_02_1_raico.pdf

 

 

Tue, 11/09/2010 - 16:07 | 713051 dehdhed
dehdhed's picture

sounds like the zeitgeist movement's venus project for resource based economy

free ebook

http://www.thezeitgeistmovement.com/A-DesigningtheFutureE-BOOK-small.pdf

Tue, 11/09/2010 - 16:37 | 713220 Ripped Chunk
Ripped Chunk's picture

"confirms Joseph Salerno’s (1992) argument that Keynes was a millennialist—a thinker who

viewed social evolution as pursuing a preordained course to what he conceived to be

a happy ending: a utopia"

Which is exactly the reason why the bankers cherry picked his assumptions and made it gospel amongst (almost) all acedemia.

"I see now when it is too late what we are up against"

(William S. Burroughs - The Ticket That Exploded, 1962 p.5)

 

Tue, 11/09/2010 - 15:43 | 712950 Client 9
Client 9's picture

Funny.  I thought the exact opposite.  Gold is a bigger bubble than treasuries.

Tue, 11/09/2010 - 15:50 | 712972 dehdhed
dehdhed's picture

my take:

he said this was going to end badly, but he didn't say it was going to end today.   in fact he said it will do nothing but drive asset prices higher.   it won't create jobs ... what's a job?  i don't want to buy any of those anyway, you can't eat a job can ya? ... sorry that was sick humor.

Tue, 11/09/2010 - 15:50 | 712988 Fraud-Esq
Fraud-Esq's picture

Hydro carbon money? He better watch out, he's stepping on the toes of the US military and the petro-dollar, which is almost what he was explaining.  

 

 

 

 

Tue, 11/09/2010 - 15:56 | 713009 partimer1
partimer1's picture

If the money goes into gold and gold fund, the money is just sitting there. It is not helping economy. while oil is at $87, and gas is at $3 plus, money gets sucked out of the other things to pay for oil and gas.  Big Ben said to help economy, all he did is sucking out money out of economy.  Last time the oil was at this level, it didn't take much anything else for the whole economy to crash. it's getting dangerously close to another cliff.  

Tue, 11/09/2010 - 18:49 | 713975 Nels
Nels's picture

If the money goes into gold and gold fund, the money is just sitting there.

That makes absolutely no sense.  The 'money', as in greenbacks or federal reserve notes, has gone into the gold dealers pocket.  What the gold dealer does with it can't be known, but I doubt very much that the money just sits there.

If you buy gold, your wealth might be just sitting there in that pile of gold, but the money  you spent for that gold is definitely not just sitting there.  Maybe you don't get to spend that money for gas for your SUV, but the gold dealer does get to spend that money.  The money doesn't get sucked out of the economy unless the gold dealer stuffs the greenbacks into his safety deposit box.

Ok, I've repeated myself three times here.  The money spent on gold doesn't disappear.  Don't make me say it again.

 

Tue, 11/09/2010 - 15:56 | 713012 Johnk
Johnk's picture

Is Dennis Gartman still alive?

"I've been on record saying I don't think we'll see $4.00 copper again in my lifetime and my health is still okay."

DG, June 2007

http://www.reuters.com/article/idUSN1231240820070613?pageNumber=2

 

Tue, 11/09/2010 - 15:58 | 713021 chancee
chancee's picture

Gary Shalom Kaminsky is without a doubt the biggest bulltard of the Fast Money 'gang.'  He's so obsessed with Goldman Sachs it hurts.  Look at the look of total confusion on his face as Fisher tries to explain QE2 actually isn't good.  Kaminsky - 'But everyone I've talked to has said QE2 is a good thing.'

A total, unabashed moron, second only to Joe Terranova.

Tue, 11/09/2010 - 16:03 | 713038 RobotTrader
RobotTrader's picture

Today, it appears that there is an acute shortage of Fossil watches and an oversupply of gold and silver.

When is Eric King going to interview the CEO of this company?

Tue, 11/09/2010 - 16:31 | 713179 the rookie cynic
the rookie cynic's picture

Consumer watches are a great foundation for an economy. Where do I buy? <sarcasm off>

Tue, 11/09/2010 - 16:40 | 713239 Ripped Chunk
Ripped Chunk's picture

What no junk on this chart!?!?

Guess their mama's were calling them to come in and "wash up"

Tue, 11/09/2010 - 16:05 | 713045 rapier
rapier's picture

He says corporations want to bring money back from offshore.  This is silly.  There is no offshore for corporations. There is no such thing as an American corporation.  Corporations trancend nations and states. 

If the US offers the best tax incentives and subsidies to create jobs then there will be a net increase in jobs, temporarily.  Still, India and China have no universal pensions or health care and hundreds of millions on the edge of starvation.  That cannot be competed with. 

Fisher's hopes for policy are just as hare brained as everyone elses.  It isn't about nations or individual citizens anymore.  It's the global empire of capital.

Tue, 11/09/2010 - 16:37 | 713216 moofph
moofph's picture

...perhaps he was referring to the cayman islands with gilligan and crew on their "three hour tour"?

Tue, 11/09/2010 - 16:26 | 713127 Captain Obviousness
Captain Obviousness's picture

.

Tue, 11/09/2010 - 16:32 | 713182 aerojet
aerojet's picture

I keep trying to tell you gold and silver freaks, you are about to get owned in a big way.

Tue, 11/09/2010 - 16:40 | 713238 moofph
moofph's picture

...you must be referring to the central banks, yes? or the etfs?

Tue, 11/09/2010 - 17:48 | 713670 Djirk
Djirk's picture

"Dean said its Fresh Dairy Direct-Morningstar unit saw operating income, or sales minus operating costs and expenses, fall 33 percent in the quarter. The price of class II butterfat, used in creamer and ice cream products, rose 70 percent."

Here it comes....thanks uncle ben!

http://www.bloomberg.com/news/2010-11-09/dean-foods-profit-falls-short-o...

Tue, 11/09/2010 - 21:26 | 714542 hambone
hambone's picture

I believe the point is - THERE IS NO EXIT STRATEGY WITHOUT COLLAPSE OF PRICES>>>THUS THERE IS NO EXIT STRATEGY.

Wed, 11/10/2010 - 08:09 | 715795 Freewheelin Franklin
Freewheelin Franklin's picture

I'm glad my mechanic doesn't fix my car the way the government fixes the economy.

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