The Bailout Gravy Train is Over

Phoenix Capital Research's picture

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Lucius Cornelius Sulla's picture

Why there will not be hyperinflation (yet):

In order for the government to survive, it must protect its ability to borrow at low, low rates.  Too much printing will jeopardize its ability to do so.  Therefore, deflation will happen and start on the periphery.  MBS held by banks and hedge funds was first.  Next will probably be munis then GSE paper.  The last bastion will be T-bills.  When they go, hyperinflation is likely.  However, this may take a lot longer than most people on this board are willing to admit.

66Sexy's picture

No revolution or pressure from the american people yet; yet an coordinated effort to target the fed politically. Sounds like opposition control. 

This is all just part of the plan.

You wont be safe in dollars either if the fed sees possible dissolution; it could be their excuse to move from the dollar into a new currency.

Gold and silver, no matter what the price does. Assets priced in dollars are abstracted values because if you can imagine it, the dollar doesnt exist anymore as value determinate.  

Zola's picture

Graham - the ultimate contrarian indicator ?

anony's picture

Borrow every cent you can, put up every asset you own, if any, and all the cash you have access to, including anything hidden in Zambia, Swisherland, and Caymans.

I'll do the same.

The bet is that not one single Jewish banker will be indicted or prosecuted for any of the crimes they have committed and are committing still.  Those crooks will instead get more billions in bonuses and those who are in a position to do something about it will be bought off.


NuYawkFrankie's picture

As I've noted in a previuos reply to one of your missives, you say:

1) The system itself is collapsing

2) Benanke will be around ANOTHER 18 months!

Something doesnt seem to add-up here - what am I missing?



whirlybird rules's picture

"Twist" was political appeasement. Given B's options, it was a good move!  I said then and reiterate now, the m.o. is to make them beg for QE3.   Unfortunately more QE will do nothing to help the middle class.

Motley Fool's picture

Haha. You ain't seen nothing yet. People will be screaming for more printing soon.

SheepDog-One's picture

I dont know, markets seem to refuse to close red hardly any day, and if they did close red its recovered by next opening pop.

I keep hearing about the big pain coming and people will beg, but when?

New_Meat's picture

"And when push comes to shove in the courtroom, they’re going to pin their crimes (the ones committed during the 2008 collapse) on Bernanke with a “the Fed pressured me into doing it,” defense."

... er ..., that would have been Big Hank, not Big Ben.  But why let facts interfere?

- Ned

The Swedish Chef's picture

The gravy train over? EFSF begs to differ...


Tyler, why do you let this guy run his adds here? If he´s paying for it you should have a disclaimer for credibility´s sake.

richard in norway's picture

i cant read your comment cs your avater takes all my attention, really WTF its not appropite in a publiic place


but if you have a link to the vid id be grateful

yabs's picture

not so fast the germans just voted in an expansion of the bailout fund and Bernanke is alreadsy creating wispers of more QE
I admire your work but you are a little too cock sure about your predictions
youcannot say we will go to new lows and it will crash
we cannot be sure if it will be meltup crash or a defaltionary crash
its too unsure

Reptil's picture

Of course Bernanke as a political figure is compromised, but he's just one man, and expendable. IMHO do not underestimate the forces behind the FED. They're not done yet, will make a play in this round.

MiningJunkie's picture

Fuck I'm sick of this clown just SCREAMING about FINANCIAL COLLAPSE for how many months now since I joined ZH? I have been hearing the same pitch since the gas lines in the 70's. They were used to get subscribers back then with the same shit I am reading today. Remember the robot in "Lost in Space"?

"Danger! Danger! Warning! Warning! Dr. Smith is jerking off in the closet!"

I'm not buying your financial scaremongering rag!

Everyman's picture

How can you type with your head buried so far up your rectal orifice?

jomama's picture

exactly four times worse than 2008, huh?


Dingleberry's picture

The Fed did what was maybe technically legal b/c we were is a supposed "emergency" situation, and "normal" rules were suspended. The Fed has never put $3 trillion on its balance sheets, (note: the stuff is supposed to be as safe as treasuries-but we know it's MBS dogshit), swapped foreign CBs the amount it has recently, opened discount windows to investment banks overnite (Goldman is a "bank holding company"?), ZIRP, and on and on and on....I believe that the Fed dramatically overstepped its legal bounds, but Congress went along b/c otherwise they would have to find a way to print or backstop the dogshit banks in trouble.  Shit, the Congress even suspended mark to market accounting, and then passed cash for clunkers and housing tax credits bribes.  Bernanke belongs in jail for fraud and perjury, as we are now on the hook for the shit he allowed on the Feds balance sheet. (Yes Virginia, that's eventual taxpayer losses).  And he blatantly misled Congress during his testimony.  But he won't go to the slammer.  Congress doesn't seem to care. Only presidential candidates seem to.  But I would just like to see him gone. Period.

Bicycle Repairman's picture

Forget about the prosecution of any of these guys.  The laws won't be applied and we are on "double secret probation" anyway.

aerial view's picture

Big Picture:

The clowns that run our country have been talking about fiscal discipline since the debt first hit 1 trillion and now it's over 16 trillion. Please people, don't you know a con man when you see one? Uncle Sam talks tough but keeps borrowing in order to increase spending resulting in a higher cost of living for everyone (except the elites).

Pitchman's picture

END THE FED or It will take us all down with it.

The Founding Fathers fought the revolution to free us from this model of DEBT SLAVERY ECONOMICS!  Their clear intent, as set forth in the Constitution was; the nations currency is to be issued by the government with no interest attached?  The governments issuance of currency is the very definition of sovereignty.   To do otherwise is to relinquish our rights as a free people.  Is it any wonder we find ourselves where we are today?

"One only needs to look into the foundation of the Federal Reserve to see what these men plotted to do.  Without our current debt based money system, collectivism and World Wars would not be possible.  This is the root of power and we must hack at it." - Chris Duane



BlackStar's picture

The "political deadlock" is fake and it's going to be used a selling point for why democracy, capitalism, and the free market doesn't work and why we should just shift the wealth from imperialist U.S., Europe, and the other "democratic" debt slave countries to the socialist/communist emerging economies.

snakehead's picture

OUR FREE REPORTS!  To convince you pay for our REAL reports!  That's our plan to survive the end of the world.  You can even pay in fiat currency!


TyIer Durden's picture

Awww.... you're salty because your jealous.... stop being a hater.

long_and_short's picture

They cant let the Euro fail.  This end of the world shit is getting tiresome.  They will sacrifice future generations to maintain the status quo

Everyman's picture

Until you see real revolution, and that is entirely possible.  Look at the rioting in Greece.  Don't t you think the German Citizens will Riot if they are required to pay for that shit?  You people with the rose colored shades calling this market and economy "healed" are freaking morons.

Reese Bobby's picture


Hedgetard55's picture

Bernanke will wind up hiding in the NTYC sewer system after being found guilty of crimes aganst humanity.

Troublehoff's picture

They will print


They have no choice

Bastiat's picture

Could be Bernanke (and his bosses) are holding QE^oo  hostage in a play for immunity from prosecution.

TyIer Durden's picture


SwingForce's picture

Buy Stocks Bitchez: The world is coming to an end, but not before QE4 comes.

virgilcaine's picture

Vix is  ready to launch..'trade the fear, fear has a price and can be measured. Based on this its June 2008  all over again.

The4thStooge's picture

"The end is near, we're all doomed."

And he wraps it all up with "Good Investing!"

Andy_Jackson_Jihad's picture

Why would anyone expect a full court press by the law and media establishment against a Jew?

 When was the last time you saw a movie with Stalin or any other communist as a vilian but Hitler as the most evil villian imaginable?  Why did Bernie Madoff get so much media attention when the amount he swindled was so low relatively (hint: look at who he swindled).

There's a better probability of getting a fair trial and media coverage in Iran or from Pravda in the 50s.

Andy_Jackson_Jihad's picture

I'm a bad little goyim.  I was when I took out the 2nd incarnation of the vampire squid and I am now too.   More folks are waking up to the fact that you're still using the same old playbook now as you were then.  Geesh, can't you guys come up with something more original?  Your overlords really didn't think this internet thing through, did they?  Trying to counter hundreds of millions of independent pairs of eyeballs with a few troll-shills?

Andy Lewis's picture

Actually yer just a piece of shit.

solgundy's picture

Obama will flee the US within 24 months

masterinchancery's picture

Switzerland gets a new citizen.

Bicycle Repairman's picture

Then he will return from his vacation fully refreshed.

captain_menace's picture

And just in time to roll out a new jobs bill.  Yippee!

Cycle's picture

I agree we are seeing a secular change in the overall markets driven by the evolving and self-revealing "Minsky Moment"

The ongoing denouement also serves to validate what a few months ago would have been termed a pessimistic prediction.


Seasmoke's picture

i think his final downfall will be written as when people realized/learned that the bailout money went to FOREIGN banks......those who are still fraudclosing, robosigning, forging assignments, etc against the american homeowners/taxpayers.......

66Sexy's picture

I have lost faith in the american people, and the american legal system. corrupted top bottom. Hell, the bankers even own China and Russia. They won. Game over. The rest is just actors on the stage; pretending. reality is prepare for digital implants at birth and a cashless, non annonymous soceity.

You have to wonder why a CEO of Facebook would of held a high level executive position at the US Treasury? Do the math.

Bicycle Repairman's picture

"i think his final downfall will be written as when people realized/learned that the bailout money went to FOREIGN banks."

We already know this.  Are you outraged?  So what.  He did as he was told by TPTB.  He'll leave when he's ready.  And when he does it will be to collect a big pension and speakers fees.