• BullionStar
    05/30/2016 - 21:24
    The US Gold Market is best known as the home of gold futures trading on the COMEX in New York. The COMEX has a literal monopoly on gold futures trading volumes worldwide, but very little physical...

Putting The Fed To Shame, Presenting The Galaxy's Biggest Bubble

Tyler Durden's picture




 
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Tue, 11/16/2010 - 17:46 | 732449 Mongo
Mongo's picture

Once you pop... you can't stop

Tue, 11/16/2010 - 17:49 | 732463 chopper read
chopper read's picture

so let it be written, so let it be done.  http://www.zerohedge.com/forum/how-do-we-arrive-eve-our-collapse

Tue, 11/16/2010 - 18:29 | 732569 anony
anony's picture

Gotta get an editor, dude.

Tue, 11/16/2010 - 21:11 | 732951 ATG
ATG's picture

Brilliant analysis here

Art indeed imitates nature, and the gamma ray bubbles on either side of the Milky Way appear to mediate solar flares and coronal mass ejections that mediate magnetic fields, life and the markets

Gold has indeed closed below 1340, next target 965 and then look out below

As gold leads most other assets, the popping of the bubble casino economy may appear imminent

QE II = Titanic II

http://www.jubileeprosperity.com/

Wed, 11/17/2010 - 01:10 | 733334 merehuman
merehuman's picture

.bullshit, gold is going higher. Gold has millions of reasons for going up. But only the real gold, not the paper.And if it did drop, none of us who have any will give it up for paper.

So...up your bucket!

Wed, 11/17/2010 - 07:21 | 733515 Thomas
Thomas's picture

I don't think commodities hit bubble territory either. They did, however, get ahead of themselves. As to gold, I assume a bubble probably needs mania affiliated with it, and gold has certainly not reached mania stage. I still can't name a single person that I see on a daily basis who buys gold. Not a one. I don't either only because I am about 55% precious metals now. (Gold bug since 1999.)

Tue, 11/16/2010 - 18:11 | 732522 Gone Full Retard
Gone Full Retard's picture

No dudes it's Projects Blue Beams?

http://rationalwiki.org/wiki/Project_Blue_Beam

See "Step Two"

Tue, 11/16/2010 - 18:16 | 732533 Triggernometry
Triggernometry's picture

That $3.16485x10^54 to fill that bubble.

Piece of cake. Though even if $1T were printed every second since the beginning of the Universe, we still wouldn't have put a dent($4.09968x10^29 assuming 13bn years and ingnoring extra days in leap years).

Silver, bitchez!!

Tue, 11/16/2010 - 19:24 | 732730 Shameful
Shameful's picture

That's just it printing is not the problem.  With the right gear Ben could pop out $1.189731495357231765085759326628007 × 10^4932 dollars, no problem.  That might even be high enough to sate his devaluation thirst...maybe...probably have to move up from $100s though running into a cotton problem...

Tue, 11/16/2010 - 19:40 | 732769 aint no fortuna...
aint no fortunate son's picture

is that like 50,000 Miles Beneath my Brain?

http://www.youtube.com/watch?v=ugZU4ITYkuw

Tue, 11/16/2010 - 17:48 | 732459 Shameful
Shameful's picture

Dammit!  I can almost see Zimbabwe Ben rolling up his sleeves "Ok Universe!  You want to throw down the gauntlet?  Your on!"

Tue, 11/16/2010 - 18:01 | 732497 Sudden Debt
Sudden Debt's picture

Somebody better warn the WWF and Greenpeace because when Benny B. figures out where he'll has to get his pulp from to print it all there won't be a three left when he's done.

Tue, 11/16/2010 - 22:35 | 733090 metastar
metastar's picture

Yes, matter in the universe must be finite. Dollars in the money supply can be infinite. But then again, even infinity has a cardinal value to which I am sure the FED is looking to inflate.

For more fun FED math facts see:

http://en.wikipedia.org/wiki/Surreal_number

http://en.wikipedia.org/wiki/Hyperreal_number

 

Tue, 11/16/2010 - 17:52 | 732471 Fraud-Esq
Fraud-Esq's picture

Is there more inflationary pressure now than in 2006 or just in different segments? Fractured economy. 

If you have $300,000 cash, you rent, and you want to buy a new home in 2011, keeping $300,000 in CASH might yield you10-15% (without risk) toward that asset you're targeting. That's a good yield! I have to exclude PM and all other investments from this simple equation only to keep it clean. So, from that point of view, deflation in housing is your friend.   

The inflation/deflation or biflation scenarios point each investor into a different direction depending on what you want/need. 

 

Tue, 11/16/2010 - 17:53 | 732474 traderjoe
traderjoe's picture

"Now if one studies history one finds out that the Federal Reserve was formed to prevent speculative panics, to maintain the value of the dollar, to preserve the purchasing power of the consumer, and to responsibly manage the nations money supply. Has an organization ever  strayed as far from accomplishing its goals as the Fed?"

- Uh, really? No actually the Fed was formed to create panics, debase the value of the dollar, steal the purchasing power/wealth of the consumer, and responsibly manage and ride shotgun for the affairs of its owners - the private banks. 

Amazing that anyone with a modicum of intelligence, skepticism, and willingness to be open to the Truth, still believes the Fed is attempting to act for the benefit of the general public. 

Tue, 11/16/2010 - 20:09 | 732852 Patrick Bateman
Patrick Bateman's picture

Absolutely. 2012? Fuck that, Dec. 23rd 2013, 100 year anniversary for the destruction of the dollar. What new fiat currency will we print now? Just another that will fail, eventually. Gold, silver............... Bitchez.

Tue, 11/16/2010 - 17:53 | 732475 RobotTrader
RobotTrader's picture

Clearly, the "Commodity Wildebeests" who were banking on a myriad number of phony theories:

"QE to Infinity"

"Peak Oil"

"We Are Running Out of Food!"


They are all getting margined called right now....

Tue, 11/16/2010 - 18:03 | 732508 Takingbets
Takingbets's picture

Hey robo, can you explain why the futures markets always open lower than the market closes? (see link below)

Thanks for any light shed upon this dilemma of mine. :-)

http://www.bloomberg.com/markets/stocks/futures/

 

Tue, 11/16/2010 - 18:06 | 732515 Burnbright
Burnbright's picture

1% moves in a day is noise and should be rather common by now. I find your antics to be comical because of how clueless you truly are. Expect greater volatility in the future before things break down.

Tue, 11/16/2010 - 18:33 | 732580 Gone Full Retard
Gone Full Retard's picture

"margins calls right nows"

There I fixed it 4 U?

Tue, 11/16/2010 - 18:51 | 732637 DarkMath
DarkMath's picture

"QE to Infinity"

So you don't believe there will be another QE? Oh my Robot, you are naive. Let's put it this way, if there isn't another QE (to bail out the states and support the Bond market) then you might as well start hunting wildabeasts for food because it will get ugly here. Without another QE the stock market will promplty sink to about Dow 2,000. Your nemisis Robert Prechter will be proven correct and you don't want that to happen.

So which is it: QE to Infinity or getting on your knees before Robert Prechter? You can't have it both ways Robot.

Tue, 11/16/2010 - 19:19 | 732718 VK
VK's picture

WTF Robo?

In the short term, finance trumps energy and ecology simply because the later are slower moving systems. In the longer run, we have a fucking energy crisis. Every single oil field in the world increases production, reaches a peak and then declines. EVERY SINGLE ONE and we have more than a CENTURY of data. The planet is a finite sphere. You can only squeeze so much orange out of an orange juice, same with oil. Just because you're ignorant about geophysics and the laws of thermodynamics doesn't mean they're wrong just because you don't happen to agree with math, physics and logic. World oil production has peaked and will decline, taking down industrial civilization with it.

Tue, 11/16/2010 - 20:14 | 732864 Patrick Bateman
Patrick Bateman's picture

Agreed. Sounds to me like someone who thinks "peak oil" means running out of oil. That's not even what peak oil is about. When you have corporations looking for a profit, who in the fuck do you think is going to drill a well of heavy crude to not make any money? NOBODY. The oil is there, the profit is not, hence peak oil.

Tue, 11/16/2010 - 19:48 | 732787 Quantum Nucleonics
Quantum Nucleonics's picture

Unseen in this photo are the 20 foot 2000 pound Nile crocodiles snatching and dismembering the occassional, unlucky wildebeest.

Tue, 11/16/2010 - 17:59 | 732488 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

To infinity and beyond ?

Tue, 11/16/2010 - 20:45 | 732494 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Dupe, sorry

Tue, 11/16/2010 - 18:02 | 732498 Double down
Double down's picture

Nice picture, pretty crapy "analysis".  If you cannot contribute anything new do not create noise.

Tue, 11/16/2010 - 18:02 | 732500 Chartist
Chartist's picture

Well, there's 1.3 billion chinese and 1.3 billion indians and they all want what we want:  color TV with 300 channels, a house with two cars in the garage.

Tue, 11/16/2010 - 20:38 | 732905 Xedus129
Xedus129's picture

2 cars?  That's so 1990's.

Tue, 11/16/2010 - 18:06 | 732511 whisperin
whisperin's picture

Okay, so your sayin God was an economist?

 

EDIT: Uh, with a Phd. of course!

Tue, 11/16/2010 - 18:08 | 732518 tony bonn
tony bonn's picture

"First the speculative bubble inflates, then the bubble bursts, and then a financial panic ensues." and then the taxpayer is fucked into bailing out the miscreants.

Tue, 11/16/2010 - 18:09 | 732520 txapela
txapela's picture

"Gold - a decisive spot close below 1340.0 in our book targets to 965.0 minimum. And watch out below if 965.0 fails to hold."

 

what does that mean: "And watch out below if 965.0 fails to hold."?

 

Are they expecting Gold to go down, and nto up?

Tue, 11/16/2010 - 18:35 | 732586 Citxmech
Citxmech's picture

Yeah - I noticed that part and almost called bullshit - but I s'pose if the Dollar and the Euro crossed we could see some real turmoil in the commodities markets - or if the Dow/S&P crashed, but that would just be another, perhaps last, buying point before the Fed quickly announced QEIII and flushed the FRN down the crapper for good. 

Personally, I'd be amazed if Au fell below $1200/oz for any length of time, no matter what happens. 

Just not seeing it with the POO either - especially not going into winter.

Tue, 11/16/2010 - 19:15 | 732704 unky
unky's picture

Lets just assume all Euro denominated assets are wiped out because of a default in the Euro-Area. Wouldnt that mean, that there is less paper currency in circulation and gold priced in dollars indeed would go down?

Tue, 11/16/2010 - 20:40 | 732907 Xedus129
Xedus129's picture

Price in FRN's is irrelevant IMO.  If the price drops that low I expect physical supply to vanish..  Especially with silver.

Thu, 11/18/2010 - 03:56 | 733258 Sespian
Sespian's picture

Agreed.  Long term, it's about value not price.  The majority of silver mined is a by-product of mining other industrial metals, as industry demand in general goes down, so does the supply of silver.  Scarcity is maintained.

Tue, 11/16/2010 - 18:10 | 732521 Bastiat
Bastiat's picture

"It does seem rather safe to suppose that scientists will have these gigantic bubbles completely figured out well before economists realize that their own ill-conceived financial policies"

Maybe not -- it seems astromers are caught in their own dsyfunctional paradigms.  That's why they are daily "surprised" at what they observe, just like economists.  They are surprised because their expectations are determined by their inadequate models.   Just as with economics, the institution of astronomy defends its credibility with blind zeal--there are a lot of careers and lots of grant money at stake.  If you are at all a science buff check this out sometime:  http://www.amazon.com/Electric-Sky-Donald-Scott/dp/0977285111/ref=pd_sim_b_2

A taste:  No black hole as ever been observed nor can one be by definition.  What are observed are highly energetic events.  Black holes are a theotical construct posited to make a "gravity only" model explain these enormous energy concentrations.  Fact:  electro-magnetism is 10^38 times more powerful than gravity.  But of course, EVERYONE knows about black holes, right?

Great stuff, if you have an interest.

 

 

Tue, 11/16/2010 - 18:26 | 732558 anony
anony's picture

Sports guy chest bump~~~ )(

Tue, 11/16/2010 - 20:55 | 732933 Implicit simplicit
Implicit simplicit's picture

Interesting. It shut me off after 3 chapters.

At least the debate about dark matter, electric plasma and black holes doesn't affect the economy like the science- not, of economics.

Wed, 11/17/2010 - 02:23 | 733390 StychoKiller
StychoKiller's picture

Astronomers, like most Scientists, learn from wrong theories and move on -- Economists, not so much!

Wed, 11/17/2010 - 10:13 | 733791 Bastiat
Bastiat's picture

Science should work that way but when careers become invested in wrong theories they become orthodoxy and changes are more revolutionary than evolutionary. The more fundamental the wrong theory, the more resistance.   Astronomy is all about grant money.  "Deviant" ideas are not tolerated or discussed--Phd dissertations are "advised" in an orthodox direction--and that's where they go if the candidate wants to be employed.

Tue, 11/16/2010 - 18:11 | 732525 Fraud-Esq
Fraud-Esq's picture

"Wolf argues that central banks “can surely lean against the wind” even if they cannot eliminate bubbles. I know of no instance in which such a policy has been successful. For reasons I have outlined elsewhere, (American Economic Association presentation, January 2004) I doubt that it is possible. If it turns out it is feasible, I would become a strong supporter of “leaning against the wind.” - Lying Greenspan 

Tue, 11/16/2010 - 18:13 | 732528 sbenard
sbenard's picture

Once we realize that the REAL mission of the Fed isn't the one that it shouldd be, as stated by Mr. Zimmerman, and that its REAL mission is to socialize the gross errors of the TBTF banks, then we must admit that the Fed has been immensely successful! It has been all too successful. And that's why we're all going to crash and burn!

Tue, 11/16/2010 - 18:13 | 732529 Fraud-Esq
Fraud-Esq's picture

"Aside from far greater efforts to ferret out fraud (a long time concern of mine).." - A. Greenspan

Tue, 11/16/2010 - 18:22 | 732536 Fraud-Esq
Fraud-Esq's picture

"Many blame Alan Greenspan for initiating the bubble economy. There is an excellent book that details this case. It is “Greenspan’s Bubbles” by William A. Fleckstein. If one digs a bit deeper one finds that the very structure of the Federal Reserve is a co-conspirator in all this. There is an excellent book that delves into this aspect."

  • You don't need a book, it's an obvious conflict of interest. 
  • Of course the Fed was a co-conspirator, Greenspan couldn't have done it without the Fed. He'd be a jazz musician perhaps. But, he could have also NOT DONE IT with it. Can't miss that logic. That would assume FULL independence from the banking industry, of which there is little to none. So, it's unlikely because it's corrupt.
  • People talk about "independence" today, but ONLY in regards to the Fed's relationship with the government. That makes me belly laugh. Short of eliminating the FED, government interference may be our only chance. Remember Jackson.  

Tue, 11/16/2010 - 21:51 | 732567 plocequ1
plocequ1's picture

Bones McCoy: Dammit Jim!! This defies logic. Mr Spock, What do you make of this Galactic bubble?

Mr Spock: Astounding Bones. This is even more illogical than that flying NBC Volkswagon Bus we saw back in the SNL days

Tue, 11/16/2010 - 18:38 | 732597 Quinvarius
Quinvarius's picture

and another sucker bets the dollar is not a bubble but gold is

Tue, 11/16/2010 - 21:17 | 732964 ATG
ATG's picture

Time will always tell

Tue, 11/16/2010 - 18:39 | 732598 Quinvarius
Quinvarius's picture

and another sucker bets the dollar is not a bubble but gold is

Tue, 11/16/2010 - 21:17 | 732965 ATG
ATG's picture

Tell will always time

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