On Mervyn King's Apology That Central Banks Are Destroying The Middle Class' Standard Of Living

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Tue, 02/01/2011 - 14:05 | 924322 HUGE_Gamma
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umm weekly Obama bucks for beer

Tue, 02/01/2011 - 14:05 | 924323 I think I need ...
I think I need to buy a gun's picture

of course u won't hear it in the US the "Fast money guys" just told me to short gold.


The Dow keeps going up everyday the dollar is weaker. Maybe we can see dow 50000 and the dollar index negative 200.


the system is broken lets get a new one.

Tue, 02/01/2011 - 14:09 | 924340 thepigman
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In the US, Bernanke and the banksters

just lie about it.

Tue, 02/01/2011 - 14:12 | 924355 thepigman
thepigman's picture

Look at our fraud market going straight

up every day.

Tue, 02/01/2011 - 14:14 | 924366 thepigman
thepigman's picture

Obviously, no real people are involved.

Just banksters and hedge funds along

for the ride.

Tue, 02/01/2011 - 14:28 | 924415 redpill
redpill's picture

Up 150 points as the Middle East melts down. Can't make this stuff up.

Tue, 02/01/2011 - 14:38 | 924449 thepigman
thepigman's picture

You'd think they'd be smart enough

to make it a less obvious fraud.

Tue, 02/01/2011 - 14:45 | 924480 redpill
redpill's picture

Bernanke, Bold As Love

Tue, 02/01/2011 - 14:50 | 924506 Bastiat
Bastiat's picture

Yeah and a limp dick attempt at an after hours pullback in metals.  Rumbling on the launch pad.

Tue, 02/01/2011 - 14:58 | 924537 Sudden Debt
Sudden Debt's picture

Looks like you got yourself here a real conversation going he?


Tue, 02/01/2011 - 16:21 | 924902 Dr. Sandi
Dr. Sandi's picture

Crap. I invested the family fortune in fraud because it was doing so well. It had almost more than tripled when we decided to cash in.

Unfortunately, we haven't seen the check yet, and the guy that sold it to us is on Vacation.

Since Thanksgiving.

Tue, 02/01/2011 - 14:49 | 924448 Devout Republican
Devout Republican's picture


Tue, 02/01/2011 - 15:03 | 924475 Devout Republican
Devout Republican's picture

Getting long here on USD/MXN on the retest of the lows.  Between the commodity (food) squeeze and Export Land Model cross, our southern neighbor may look like Egypt in a short time.

G'luck and bye y'all

ETA: Long @ 11.9948

Tue, 02/01/2011 - 16:30 | 924938 ConfusedIdiot
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DR, please elaborate on the Xport Land Model cross. I too am long the dollar on this break below 12.00. My only argument for this was watching the Mexico Bolsa and Mex corporate  uptick directly in consequence of the US stimulus programs buying Mex. This stim effect is over and therefor I am in the dollar over the MXN. Any insight would be appreciated.


Tue, 02/01/2011 - 18:47 | 925505 Devout Republican
Devout Republican's picture

Thank you for asking.  Look at http://www.theoildrum.com/node/7425 also google Chris Martinson's crash course.  There is a vid describing the ELM in detail. 

I feel pretty confident about this trade in particular because if I'm wrong then the USD would be worthless and billions of people around the will be starving and rioting.

I don't think "the powers that be" will let it get to that.  (If they value their heads)

Of course your species has run itself out of cheap energy.  So the inevitable may be happening as I type, in which case its all moot but potatoes, beans and water.

I am not devout nor a republicon.

Tue, 02/01/2011 - 14:31 | 924420 Captain Kink
Captain Kink's picture

it's the 1st of the month! The market must make it's prescribed move!  all is well! (sarc)

Tue, 02/01/2011 - 14:26 | 924339 Mr Lennon Hendrix
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Platinum takes Off

Platinum had been still above $1800 like a spider on prey.  Something may have just tripped the wire, and that something is time.  The other levels were set and the trap sprung.  Platinum will lead out ahead of gold, silver, oil, ahead of the dollar and all fiat for the last lap of the race to the bottom.

Platinum's production plateaued in '09.  That is a long time when demand continues to surge.  It is not used as bullion as much as it is an industrial.  It is hard to mine, it only grows with sister metals, and is more rare than silver.  Platinum, like silver and gold, is indestructible and lasts for basically ever.  It too is the perfect wealth preserver.

How many races until the masses catch on and the average Joe owns precious metal?  Well, the time may have dawned on the silver market.  Demand for silver is higher than ever.  Gold is the popular one when it comes to using it as monie, but platinum may have its time next.

PS, WTI is about to pop one dollar...

Tue, 02/01/2011 - 14:51 | 924512 Flakmeister
Flakmeister's picture

Good Day Mr. Hendrix...

  My favorite factoid about Pt, is that annual world production is approximately a 6 ft cube.

  I agree that Pd and Pt are under appreciated, to this end I have been accumalating a number of PGM miners and explorers. So far, so good.


Tue, 02/01/2011 - 14:56 | 924530 Dr. No
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FYI, Pt is used by the medical device industry since it is one of the few biocomaptible metals.  I do not know the volume of use, but it consumption, not recycled.

Tue, 02/01/2011 - 16:28 | 924933 DosZap
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(I may be off here), but I believe that Platinum is 82x's more rare than Gold.

Tue, 02/01/2011 - 19:31 | 925646 Flakmeister
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  Production ratio is about 82.... Pt is as rare as gold but mineable ores are extremely rare


SWC is the best way to play the PGM complex. A wonderful unique deposit in the good ol' USA


Tue, 02/01/2011 - 16:32 | 924944 trav7777
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all platinum ever is like a 20' cube.

a 6" cube of this shit weighs like 165lbs.  I wear a Noble around my neck as a tribute to this metal. 

Only denser shit out there are iridium and osmium.

Pt rightly should be priced probably 5-10x POG, but the Russians have been selling stockpiles into the market.  I think that Pd being less than gold is a true mispricing.  If you click a few links you see that Pd and Pt have roughly equivalent production stats and given their similar industrial usage profile, I can't find much of a reason for the pricing mismatches.  Either Gold is overpriced or Pt and especially Pd are underpriced.

Tue, 02/01/2011 - 16:29 | 924935 trav7777
trav7777's picture

Pt goes apeshit when Russia works through its stockpiles that it has been selling.

There are like 2 significant sources of Pt in the world, Bushveld and some Russian production at Norilsk.  <6Mtoz annually, a fraction of gold.  Pd has similar production stats, IIRC; dunno why it's so undervalued vis a vis.

Here's a random google link on annual production of PGMs thru 08


Tue, 02/01/2011 - 14:09 | 924344 mule65
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Tue, 02/01/2011 - 14:10 | 924345 whatz that smell
whatz that smell's picture

pinkie-swear, bitchez!

Tue, 02/01/2011 - 14:43 | 924477 PeterSchump
PeterSchump's picture

The best evidence that al-Qaeda is paid for by the banksters is the lack of banksters eliminated on 9/11.  This is but a diversion.

Tue, 02/01/2011 - 14:12 | 924356 redpill
redpill's picture

I don't think people want his sympathy so much as his head on a pike. While Egypt is trying to come out of the middle ages politically, maybe it's time for the West to take a brief vacation back in time.

Tue, 02/01/2011 - 14:32 | 924422 downrodeo
downrodeo's picture

+1 , exactly right. This is probably why he is trying to create the sense of some sort of understanding or solidarity between himself and the masses. He likes his head where it is. "I sympathise completely..." with that.

Tue, 02/01/2011 - 14:41 | 924463 redpill
redpill's picture

And right before the end it will be the worst. As the curtain falls on the current crowd of central bankers, they'll give some last desperate wads of cash to their cronies in hopes they can steal every last penny from the populace as they can before finally being dragged away from the printing machine. Unfortunately for this SOB and fortunately for the UK citizenry, the British printing machine has a lot less ink than those at the Fed and ECB.

Tue, 02/01/2011 - 14:38 | 924452 cossack55
cossack55's picture

Brief vacation, my ass.  The question is:

Should the blade be made of gold/platinum/silver or should the blade be counterweighted by bags of FRNs, thus making it quicker to reset for the next banksta scum?

Tue, 02/01/2011 - 14:13 | 924361 dick cheneys ghost
dick cheneys ghost's picture

the chairman has no clothes.


all eyes on pakistan

Tue, 02/01/2011 - 14:13 | 924362 Jason T
Jason T's picture

OT: 1st of the month.. I just remembered.  That's why stocks are soaring.

Tue, 02/01/2011 - 14:13 | 924365 Commander Cody
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Just keep borrowing til you can't, live large for the moment, and default when it suits you.  That's the new normal.  Isn't it?  The responsible people will pay, and ain't that a bitch, eh Mervyn, bankster scum.

Tue, 02/01/2011 - 14:15 | 924373 Henry Chinaski
Henry Chinaski's picture

mea culpa, bitchez!

Tue, 02/01/2011 - 14:16 | 924375 AccreditedEYE
AccreditedEYE's picture

Gotta applaud the man for speaking the truth.. Take heart Mr. King. What the Keynesian fools have yet to realize is First In / First Out. Hope you can become an example of good behavior in a world full of mediocrity. (and that's being generous)

Tue, 02/01/2011 - 14:20 | 924393 redpill
redpill's picture

It's not admirable to capitulate when you're already beaten. If he had said this 2 1/2 years ago it would have been worthy of applause. Now it's just pleading guilty.

Tue, 02/01/2011 - 14:27 | 924410 AccreditedEYE
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What is admirable is standing against the Bernanke mandate when so many others bow down to it. (I've got news redpill, EVERYBODY is beaten, they just haven't woken up to that fact yet)For once, speaking the truth and trusting that people can take it rather than simply try to spin. That's admirable.

Tue, 02/01/2011 - 14:43 | 924428 redpill
redpill's picture

I think you're missing the point. He's not standing up to the Bernanke mandate, he's been following it. The only difference is he is running out of track, and sees that the end is finally coming for the UK.  He's not "admirably" speaking the truth, he's trying to save his own ass and pretend he is not completely culpable for what will be happening.  In the scheme of things, it's probably better for the Brits that they are forced to face reality sooner than the US and the rest of Europe, since the longer the charade continues the more painful the withdrawal will be. We're not so lucky in the US, we still have some time to go before our financial bender finally comes to a sobering end. For those of us who know it will, it's a sickening thing to watch, like seeing an alcoholic slam cheap vodka out of a plastic jug before being dragged away to rehab.

The closer to the end we get, the grosser it becomes, until it's "just one drink left, make it counnttt!" and we have to pray it doesn't finally kill us.

Tue, 02/01/2011 - 14:43 | 924479 AccreditedEYE
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Red, I'm not condoning the man's/UK's past monetary behavior. Yes, he has been following right along. But at last, finally, someone speaks truth. That's all I'm admiring.

The sooner nations stop playing games and address their issues (either by choice or by force) the sooner we can get the multi-year process of moving forward again. There is a lot of pain ahead and admitting the truth and accepting it for what it is will move us through it all that much faster.

Tue, 02/01/2011 - 14:50 | 924491 redpill
redpill's picture

It's no more admirable than Jeffry Dahmer apologizing that he prefers the taste of human flesh from his jail cell in hopes of getting out of prison early.

Tue, 02/01/2011 - 15:49 | 924768 mirac
mirac's picture

You nailed it...psychopaths never admit guilt.  It is always someone elses mistake.  Any comment of sympathy for the middle class came from a script writer.  Don't imagine he'll take a 25% cut in wages to help out his fellow Brit or cutail his wonderful governemnt pension...nope

Tue, 02/01/2011 - 14:16 | 924377 UglyPatheticPauper
UglyPatheticPauper's picture

Remarkable!!  Looks like someone found their conscience.

Tue, 02/01/2011 - 14:27 | 924408 bunkermeatheadp...
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Just a clip, we didn't see the whole speech. Perhaps it was a prelude to the need that commoners need to just chin up.

Tue, 02/01/2011 - 14:39 | 924453 The Limerick King
The Limerick King's picture

Not all Central Bankers are liars

First lighting then putting out fires

But for those unlike Merv

Klepto lies they still serve

May their gonads meet dull locking pliers. 


Tue, 02/01/2011 - 14:45 | 924485 Sophist Economicus
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Tue, 02/01/2011 - 14:18 | 924385 Wynn
Wynn's picture

In some previous incarnation Mervyn must have worked the rack in the tower of London, calmly telling the victim to grin and bear it, as he tightened the ropes.

Tue, 02/01/2011 - 14:19 | 924388 thepigman
thepigman's picture

Contrast this with the US where the

bankers and the street are hell bent on

stealing anything you have left.

Tue, 02/01/2011 - 14:20 | 924390 Cdad
Cdad's picture

It’s amazing that someone in his position would be so terse, so direct in his appraisal of the situation

Not if you knew an Englishman...one over the age or forty.  It is not surprising at all. 

As for a comparable American...I'm afraid they are all but dead.  They die each day with the WWII generation...leaving us with what we call the Baby Boomers...who are the originators of arbitraging everything around them to death.  Never has the world known as more selfish generation of folk than these.

You can still catch a whiff of old America in some of the gen X crowd, those that grew up humble enough to know that their education system had let them down.  However, even most of that crowd is clueless now and searching for the white Iphone 4.

Just bring on the zombie apocalypse already, please.  Or the fire hoses, please.  Anything but the status quo during the biggest financial crime in the history of the world.  Anything but the 100% sure Ben Bernanke.

Tue, 02/01/2011 - 14:27 | 924409 thepigman
thepigman's picture

The coup de grace is lying

about the economy and sucking them

into this market.

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