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QBAMCO On Precious Metals And The Coming 'Great Reset'

Tyler Durden's picture


Authored by Lee Quaintance and Paul Brodsky of QBAMCO,

Volume Triage

Last Sunday we closed the macroeconomic portion of “Imperial Constraint” with the following:

“So we ask again, are there really unpredictable market shocks or are investors paid not to care? To us, all signs point towards the next currency reset. We think monetary authorities are compulsively destroying the current global monetary system; they simply have no choice if they are to keep it afloat in the short term. We further think they will have no choice but to replace it with a gold exchange standard they oversee (i.e., a gold-standard-light, “Bretton Woods” type reset). Perhaps this explains the current redistribution away from unreserved paper gold to physical gold? We would not be surprised if, in 2014, someone like Larry Summers or Tim Geithner takes control of the Fed and oversees such an operation.”

Two days later the Fed announced Ben Bernanke would not attend the Jackson Hole summit, for the first time in twenty five years. A couple days after that the New York Times (on the first page, no less) ran an in depth profile of Janet Yellen, the heir apparent to run the Fed. Beneath her profile there were three other candidates “being discussed:” Roger Ferguson, Tim Geithner and Larry Summers.

We normally do not spend time handicapping presidential appointments. In this case; however, we think the choice for next Fed Chair may have profound economic implications, and that it would not require expertise in econometric modeling, credit policy management, and maintaining the public perception of economic stability. As we wrote last week, we think the next Fed Chairman will oversee a conversion of the global monetary regime. A thick skin, diplomatic skills, and strong relationships with global banks and monetary policy makers will be the skill set most needed. We think Tim Geithner (with Bill Dudley as an alternative) will take over the Fed when Ben Bernanke steps down next January, and it seems by all indications that the table is already being set.

We attended a small dinner party a few years ago at which an iconic financier (and major Obama supporter) let it slip that he questioned one of Obama’s most senior aides just prior to the 2008 Democratic convention about taking over the economy when it was imploding. The aide waived it off and exclaimed; “oh don’t worry, Bobby has it covered!” Most of the table was relieved that Bob Rubin still had their backs and that banks would keep priority. Such was, and remains, US economic policy.

Neither growth nor austerity nor gloom of night will stay these currencies from their appointed devaluations. Bank balance sheets must be preserved; ergo sufficient inflation must be manufactured. We think the dull but persistent economic malaise amid increasingly aggressive monetary intervention policies will soon engender fear among the not-so-great washed – net savers. This happier band of brothers cannot maintain an edge when the real economy contracts and interest rates are already at zero. Base money is already being manufactured in the form of bank reserves and the total money stock is not growing because there is very little natural economic incentive among the rest of us to consume (much) or take risk. Something and someone new is needed.

Ben Bernanke seems like a brilliant political economist and a decent guy, the top of his field in terms of comportment, academic credentials and specific competence in understanding historical monetary policies during a counter-cyclical (i.e., de-leveraging) period. Perhaps Janet Yellen is too? But such qualities are not what we think will be preferred by the powers that be now that global resource producers are openly questioning US, British, Euro and Japanese monetary policies and reserve holders are realizing their stash is being methodically turned to trash.

Meanwhile, aggregate leverage is growing and real economies are withering. Does anyone believe that Ben or any other monetary authority has been proactive, or that any fiscal authority has enacted legislation that promises to help achieve “escape velocity?” Can’t we all agree that the rationale for economic policy may be boiled down to the counterfactual: “yes, but imagine if they withdrew liquidity or enforced true austerity – it would be worse!”? Is there a serious analyst who still believes economies can grow their ways out of being over-levered without leveraging further?

Whether or not contraction has to come-a-knocking prior to a monetary reset is anyone’s guess, but it would be difficult to imagine monetary system change without a generally-recognized economic tragedy that precedes it. This implies disappointing GDP prints, declining corporate revenues and maybe even a swoon in stock and real estate markets. We have already begun to experience the first two. Now that we read global central banks have begun buying equities, perhaps equity prices may be controlled too (as are the level of interest rates via large scale asset purchases like QE and relative currency exchange rates via timed interventions)? Negative output growth and asset price busts would certainly open the door for our hero to enter.

The role of a central banker in the late stages of de-leveraging seems to be volume triage, as they say in intelligence circles – reacting to an increasing barrage of events as they occur, wherever they may occur. In economics as in policing, the bad guys always get to take the first shot. From the central banker’s perspective, the bad guy in the current regime is the real economy. If it continues to shrink, as we think it must, then TPTB must change the way they do business.

We think the box we drew in Imperial Constraint is the key metric in understanding the forces behind economic growth and market pricing. An inflationary leveraging perpetuates imbalances while deflationary deleveraging threatens the survival of the banking system at large. Hopes for organic credit growth, which would promote the former, are now fleeting. This, in turn, engenders the threat of the latter. Continued ZIRP, increasing asset purchases and a steep decline in the universal efficacy of it all suggests the time to press the reset button is quickly approaching. May to December 2013 may turn out to be the darkness before the dawn; a time we look back upon and choose to forget.

All in all we think the most efficient Fed Chair in advance of a reset would be Paul Krugman. He seems willing to destroy the current global monetary system with swift dispatch, without consultation, declaration (or second drafts). Alas, capitalist economies in liberal democracies require level-headed responses to market forces. There is no place for rogue pro-actionists. Institutions like the Fed are meant to appear as first responders working on behalf of the societies their banks serve.

And so we think that circa 2070, our children will write and read (140-word) biographies about how Timothy Geithner saved the world from economic darkness. Geithner will save the day and bring glory to the Obama presidency by reducing the burden of debt repayment while maintaining the nominal integrity of debt covenants and bank balance sheets. The only way to accomplish this would be by destroying the currencies in which those debts are owed. Net debtors will rejoice and net savers (all 1% of them?) will suffer, finally realizing their unreserved currencies and levered financial assets were never sustainable wealth in the first place.

Our little narrative could certainly turn out to be wrong, but we discuss it here (against all political wisdom) because we cannot find another one that better fits current macro and market pricing trends. If we are wrong about Mr. Geithner, we think it would imply that TPTB (raise your hand if you think the Fed’s shareholders do not choose/approve the Fed Chairman) believe a clear-headed and decent academic political economist can figure out what all past ones could not: how to support asset prices beyond ZIRP and central bank asset purchases. (Ben is gone, long reign Janet!) That is not our projection.

When and if it becomes clear that Tim Geithner will ascend the steps at Eccles, we think it would already be too late to buy physical gold and resources. The only play remaining for financial asset investors looking to get full value after the reset would be shares in precious metal miners and natural resource producers holding reserves in nature’s vault. Properly held bullion and shares in precious metal miners would act as the most efficient store of purchasing power over the course of the devaluation and conversion. (Worst to first? Get ‘em while they’re cold!) Futures, ETFs, unallocated bullion holdings and other fractionally reserved claims on physical reserves easily replaced with cash would not participate.

If our scenario comes to pass, then bank, government and consumer balance sheets would be quite healthy following the reset and would be ready to expand. We would think consumable commodities and shares in their producers would lead equity markets higher and that interest rates would remain low, as further inflation would be mitigated by the discipline of a full or partial peg to precious metals.

We think all should question whether we are 100% wrong. If not, then prudence dictates some allocation to properly held precious metals. (Presently, it is less than 1% of all global pensions.)


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Mon, 04/29/2013 - 18:25 | 3511544 Stackers
Stackers's picture

I've looked into the Reset Button - the science is impossible


Mon, 04/29/2013 - 19:34 | 3511764 Ignatius
Ignatius's picture

The problem I see with this analysis is that they seem to be reading events at face value while ignoring the pistol(s) under the poker table.  High stakes game, no?

Mon, 04/29/2013 - 20:08 | 3511881 THX 1178
THX 1178's picture

The problem I see with this analysis is the part where we remember Timmy for saving the US and contributing to a smooth transition. HA! No roundtable of funtionaries in the wolrd can smooth out whats comin'. Other than that I think this analysis has a lot to offer.

Mon, 04/29/2013 - 20:27 | 3511936 philipat
philipat's picture

Yellen, Dudley, Summers and Geithner? We're truly fucked.

Mon, 04/29/2013 - 20:59 | 3511961 TwoShortPlanks
TwoShortPlanks's picture

"When and if it becomes clear that Tim Geithner will ascend the steps at Eccles, we think it would already be too late to buy physical gold and resources. The only play remaining for financial asset investors looking to get full value after the reset would be shares in precious metal miners and natural resource producers holding reserves in nature’s vault."

I have been sitting on a Semi-Synthetic Gold & Silver Derivative idea for some time now. It allows Miners to ramp-up production today, even thought Gold and Silver prices remain low. I feel it solves many issues involving ongoing costs to mines as the Derivative price links metal prices to future mine production, at each site.

A knock-on benefit is to the miners' share price. It ties-in each mine site with future metal prices and allows mines to extract ore body now, keep high employment, and it boosts bottom lines today, not down the track when metal prices rise again. It also entices Banks to invest in future projects and it keeps mines honest in their production estimates.

Gold Bugs would love it as you own physical, for this reason I believe entities like Sprott would buy big. The reason for this is simple, you own something which is real, not Synthetic. How the Synthetic part works, well that's the key.

I ran the concept past a mate who's an Economics Major who is well aware of all the major issues facing Gold Mines today, and he nearly fell off his chair. He said it needs to get out there, right now.

I just don't know anyone to present it to in the mining or financial world who would immediately understnd the spin-offs, pros', con's and most importantly, how to get it off the ground (how do you get something like SPDR off the ground?).

If I were a miner, I'd be scrambling for this Derivative right now.

Mon, 04/29/2013 - 21:04 | 3512069 Ignatius
Ignatius's picture

TSP, I'm a fan as you've written some brilliant pieces before, but I'm thinking the dominant meme at this time is trust, or better, the lack thereof -- in the hand is gonna count.  JMHO.

Mon, 04/29/2013 - 21:44 | 3512118 TwoShortPlanks
TwoShortPlanks's picture

Hi Ignatius, yes, I get that.

About 18 years ago I got talking to a guy in an elevator. He had what he thought was a great idea for a soft drink and was travelling from country to country looking for capital.

He ran it past me but I scoffed and said I'm not sure it would fly. I asked him how come he's so open about his idea and not guarded at all. He said that sometimes you just have to put it out there and hope people realise that the originator of the idea is the real key to its' future success.

He got off at his floor and went to do some presentation on the concept...I often wondered what became of this guy.

One day, I saw his product hit the shelf and the advertising on TV. It's now one of the leading Guarana based soft drinks.

Sometimes you just gotta get it out there.

If I don't manage to get it out there soon, I'll probably just write it up and present it here on ZeroHedge, and let the chips fall where they may. I reckon in full swing it would have a market cap in the order of $50-$150 Billion, I know SPDR is around $102 Billion.

Oh, unlike Allocated/Unallocated Gold & Silver, you can't get robbed on this one, even though it's physical. And it's way better than BitCoin!

Mon, 04/29/2013 - 23:46 | 3512635 Dr. Richard Head
Dr. Richard Head's picture

No one should EVER yell pressure cooker at a marathon. Derivatives be damned.

Tue, 04/30/2013 - 07:27 | 3513151 Acet
Acet's picture

Let me tell you something I've learned from doing Business Analysis and Technical Analysis within IT and later looking at people's Business Plans in the Tech Startup world:

- The really important bit is not what you do when everything goes perfect, it's what to do when things don't go perfect.

The overwelming majority of business ideas produced by amateurs are all about the ideal situation and rarelly describe or address the potential risks.

I've seen tons of "great ideas" with one small weakness that turned out to be the thing that would made the whole business collapse if things didn't work perfectly (and when do things ever work perfectly in real life?)


In the case of PM derivatives, the weaknesses that need to be addressed are "How do you get enough people on board up front to create critical mass?" and "How do you solve the trust issue when it comes to any kind of paper certificate versus direct, immediat possession of the physical commodity?"



Mon, 04/29/2013 - 20:58 | 3512052 Professorlocknload
Professorlocknload's picture

If we are doing "The problem I see with this," I'll critique the article with Timmy will most likely not be remembered on down the road as the Lone Ranger, but instead as WC Fields for his part in not only not saving the day, but instead advocating throwing a "TARP" over it all.

Every punk at a Ramones Concert knew this thing was bigger than $750 billion.

That meet up with reality, of course, after the Keynesian Monkey Wrench hits the cogs, and a modicum of common sense resurfaces.

Geithner as Fed Chief? Carumba!

Tue, 04/30/2013 - 07:35 | 3513167 thewhitelion
thewhitelion's picture

"In economics as in policing, the bad guys always get to take the first shot."

Tell that to the guy in the boat.

Mon, 04/29/2013 - 20:43 | 3512013 jimmytorpedo
jimmytorpedo's picture

"..Bernanke seems like a brilliant political economist and a decent guy,.."

 I laughed at that part.

Mon, 04/29/2013 - 21:04 | 3512079 Ignatius
Ignatius's picture

...till it hurt.

Mon, 04/29/2013 - 18:29 | 3511546 jekyll island
jekyll island's picture

Next fed chairman should be Ron Paul.

Mon, 04/29/2013 - 18:28 | 3511548 SilverIsKing
SilverIsKing's picture

Ron Jeremy has a better chance.

Mon, 04/29/2013 - 18:35 | 3511575 FieldingMellish
FieldingMellish's picture

Long the Hedgehog...

Mon, 04/29/2013 - 18:51 | 3511616 hapless
hapless's picture

Who the fuck are we kidding?  It's going to be Corzine.

Mon, 04/29/2013 - 19:10 | 3511665 Vagabond
Vagabond's picture

He does have the required skillset.  Expert vaporizer.

Mon, 04/29/2013 - 19:18 | 3511709 Big Corked Boots
Big Corked Boots's picture

"We attended a small dinner party a few years ago at which an iconic financier (and major Obama supporter) let it slip..."

Yup. You have named the destroyer.

Mon, 04/29/2013 - 19:36 | 3511758 espirit
espirit's picture

Miners? Oh, Really?

Come on, too easily nationalized.  If you don't hold it, you don't own it.

Mon, 04/29/2013 - 20:42 | 3512000 FieldingMellish
FieldingMellish's picture

Not if they actually want the gold out of the ground. Productivity of nationalized mines is abysmal.

Mon, 04/29/2013 - 19:18 | 3511704 Cacete de Ouro
Cacete de Ouro's picture

Ron Jeremy acquired the name hedgehog when he arrived at a shoot one day after driving his motorbike through icy weather and the director thought he looked like a hedgehog when he walked in with frozen hair....
Many people assume the name refers to his dexterity....coincidence?

Mon, 04/29/2013 - 20:41 | 3511995 FieldingMellish
FieldingMellish's picture

I thought it was because of his hairy back but I like your story better.

Mon, 04/29/2013 - 22:26 | 3512370 prains
prains's picture

i thought it was because he looked like a hairy round ball, much like a hedgehog

Mon, 04/29/2013 - 18:32 | 3511553 TheSilverJournal
TheSilverJournal's picture

Free banking please. No Fed chairman necessary.

Mon, 04/29/2013 - 19:12 | 3511672 Shell Game
Shell Game's picture

+1  That's exactly what Dr. Paul would say...  ;)

Mon, 04/29/2013 - 21:56 | 3512263 Jack Napier
Jack Napier's picture

What would Gaddafi do?

Mon, 04/29/2013 - 18:29 | 3511552 fonzannoon
fonzannoon's picture

I am just waiting around for the JPM vault report right now. I see Tyler is keeping us in suspense.

Mon, 04/29/2013 - 18:37 | 3511582 WelfareFTW
WelfareFTW's picture

haha, me too. hitting the refresh button every few minutes on the home page :-)

Mon, 04/29/2013 - 19:44 | 3511795 Alpo for Granny
Alpo for Granny's picture

If it's empty I'm thinking the post would certainly be deer worthy.

Mon, 04/29/2013 - 20:13 | 3511889 THX 1178
THX 1178's picture

If it's gone up, I think it's probably a lie. Or its just some odds and ends from 'Eccles' across the street. The jig is up no matter what and we all know it.

Mon, 04/29/2013 - 18:34 | 3511557 McMolotov
McMolotov's picture

I think Ben knows what's coming and wants to be safely away from any major cities. The next Charmin (spelling intentional) will preside over the Great Collapse.

Mon, 04/29/2013 - 18:38 | 3511561 fonzannoon
fonzannoon's picture

who the hell would want that job knowing they are taking the fall?

Here are some other options. The fed outsources the Chairman job to some chinese factory worker and blames everything on him?

They replace Bernanke with a robot...because that is essentially what he is?

Mon, 04/29/2013 - 18:44 | 3511595 McMolotov
McMolotov's picture

I think the job calls for a certain level of ego, so it would have to be someone who believes 100% in his or her ability to use Fed policy to "fix" the economy. I think Bernanke has lost a bit of his Keynesian faith at this point.

Krugman has the ego and his faith is strong, and he really would be the perfect choice, but he's too busy playing with his pussy, I mean cat.

Mon, 04/29/2013 - 19:38 | 3511767 espirit
espirit's picture

Yep.  When the going gets tough, the tough get going.

EndGame near.

Mon, 04/29/2013 - 18:39 | 3511574 TeamDepends
TeamDepends's picture

Will this create a new phrase, "jackson-holed".  i.e.  "Boy, we sure got jackson-holed on that deal."

Mon, 04/29/2013 - 18:32 | 3511562 sitenine
sitenine's picture

May 1

Mon, 04/29/2013 - 18:37 | 3511571 dumpster
dumpster's picture


Mon, 04/29/2013 - 18:43 | 3511599 McMolotov
McMolotov's picture


Mon, 04/29/2013 - 19:16 | 3511695 Pool Shark
Pool Shark's picture


Mon, 04/29/2013 - 20:04 | 3511873 WmMcK
WmMcK's picture

Roast beef, lean.

Mon, 04/29/2013 - 20:16 | 3511903 Fedaykinx
Fedaykinx's picture


Mon, 04/29/2013 - 20:47 | 3512017 jimmytorpedo
jimmytorpedo's picture


Mon, 04/29/2013 - 23:17 | 3512551 THX 1178
THX 1178's picture


Mon, 04/29/2013 - 23:48 | 3512653 FreeNewEnergy
FreeNewEnergy's picture

Mallo Cups

Tue, 04/30/2013 - 00:01 | 3512693 NOTfromSanFrancisco
NOTfromSanFrancisco's picture

... Jock strap cups!... Wait... What game are we playing again?...

Tue, 04/30/2013 - 00:21 | 3512730 prains
prains's picture

we're playing D cups, and they're goooooood

Mon, 04/29/2013 - 18:38 | 3511573 nmewn
nmewn's picture

Dear Prudence.

Mon, 04/29/2013 - 18:38 | 3511576 IridiumRebel
IridiumRebel's picture

Patience folks, patience.

Mon, 04/29/2013 - 18:39 | 3511583 sitenine
sitenine's picture

Patience is so yesterday. There might be another buying opportunity. Maybe. Felling lucky? Well, are you? ;-)

Mon, 04/29/2013 - 18:41 | 3511597 IridiumRebel
IridiumRebel's picture

Oh keep stacking, but this whole thing will be unwound soon enough and it won't be pretty.

Mon, 04/29/2013 - 18:50 | 3511609 Major Major Major
Major Major Major's picture

“I'm a patient man; and when I say I'm a patient man, I mean I'm a patient man.”


-George W. Bush

Mon, 04/29/2013 - 19:00 | 3511640 IridiumRebel
IridiumRebel's picture

"I'm George W. Bush and I approve this message....TACOS RULE."

Mon, 04/29/2013 - 19:39 | 3511775 espirit
espirit's picture

...but not broccoli.  Mama made me eat it, bleahhh!

Mon, 04/29/2013 - 19:18 | 3511706 Jungle Jim
Jungle Jim's picture

I am NOT a patient man. I WAS patient when I was young, long, long ago. As patient as a big python who'd just eaten, hanging from a tree branch waiting to drop on the first thing that came down the trail.

I figured I had plenty of time then. Now, time is short, and so is my patience.

Mon, 04/29/2013 - 19:54 | 3511823 IridiumRebel
IridiumRebel's picture

Nice imagery.

Mon, 04/29/2013 - 19:02 | 3511620 sitenine
sitenine's picture

Yes, there will be much gnashing of teeth. My thinking is that it was a stupid idea to let a ponzi paper scheme set the price of a physical asset in the first place. Those who get it (and I mean in your hand), will be the only ones with anything in the end. The depletion of available physical will have a profound and lasting implication on the non-backed paper when everyone starts asking, "what's this paper worth if there is no silver?" They'll all likely realize at exactly the same moment that their paper is worthless. We are all coming to the realization now that paper can vaporize (think you especially John Corzine and Cypress), but gold cannot. Then we can price metals like the men we are. Fuck this pansy ponzi bullshit! You have it, or you don't. Get it?

Mon, 04/29/2013 - 19:03 | 3511652 IridiumRebel
IridiumRebel's picture

Anything prized since the dawn of civilization should be taken into consideration. That's the problem with our Western world.

Mon, 04/29/2013 - 19:21 | 3511720 Jungle Jim
Jungle Jim's picture

I have it. Or I DID have it. Then, when I'd already sold everything else and there was nothing else left to live on, I was forced to start selling it, at *greatly* reduced prices.

Tue, 04/30/2013 - 01:29 | 3512846 sitenine
sitenine's picture

Thank God you had it. Without it, your family would have starved. That's a touching story that really hits home as to what these barbaric hunks of rock are really good for. Regardless of price, you were able to sell them, and you fed yourself. God bless you Jungle Jim.

Mon, 04/29/2013 - 19:14 | 3511686 Jungle Jim
Jungle Jim's picture

Last year was not soon enough for me.

Tue, 04/30/2013 - 07:31 | 3513162 W T F II
W T F II's picture

I R,

I am in your camp here. This all happens now, with Ben presiding. He knows what he and the others must undertake. That is, collapse 'risk assets', re-price the Euro, let the $ lead out and THEN 'they' re-constitute EVERYTHING in "special drawing rights", with gold having a role and new 'formulas' in place. Like the Swiss did with a 40% gold pledge, until they "undid it" in 2000. There is support in Germany for this as well. Methinks the gold fiasco had EVERYTHING to do with the 'near-term re-calibration' and we wil probably get the finishing touches on by one more collapse or 'jam-down' in GLD.

He will nor attend "Jackson Hole" becuase there will be no such thing. The final J H occured in 2012. He will, however, attend a multi-party "Bretton-Woods"-style 're-set' pow-wow.

A 'risk-off' rip your face off 'dip' must occur first to get everyone's "stoned-out" attention and have the politicos desparate for the "fix" to be offered.

Mon, 04/29/2013 - 18:40 | 3511585 Seasmoke
Seasmoke's picture

I've noticed more and more females being put in these positions. Do they think the cunts will not be hanged ???

Mon, 04/29/2013 - 19:08 | 3511667 Divine Wind
Divine Wind's picture


Interesting you say this.

If we apply a Biblical model, women rulers COULD BE viewed as a sign of judgment, or a curse, from God.

One such example can be found in Isaiah 3:12.

Just sayin...

Mon, 04/29/2013 - 20:14 | 3511892 sschu
sschu's picture

It is clear that God's judgment on America is underway.  At the very least, He has removed our "cloak" of protection.  911 was the start of it.

Of course the book The Harbinger does a pretty good job of showing the parallels between present day US and ancient Israel.

Kick God out of your public institutions and discourse, and this is what you get.

We haven't seen anything yet, unfortunately.  My prediction is 7 years from the financial crash, somewhere in September 2015 is when the next big shoe drops (2001, 2008, 2015 ...).  But what do I know really.    


Mon, 04/29/2013 - 21:27 | 3512159 BoNeSxxx
BoNeSxxx's picture

I would call Yellen a cunt except she lacks both warmth and depth...

Mon, 04/29/2013 - 18:40 | 3511590 Kirk2NCC1701
Kirk2NCC1701's picture

Dream on! Before we this happy day, you will see Bernanke oversee the Grand Fiscal Unveiling at Area 51. Where they'd rather make First Contact public, than give up their fiat Ponzi.

Mon, 04/29/2013 - 18:43 | 3511600 TahoeBilly2012
TahoeBilly2012's picture

Reality is what "they" atempt to make and what the public "accepts" which means, who fucking knows....

Mon, 04/29/2013 - 18:43 | 3511602 Yen Cross
Yen Cross's picture

   Wanna take bets the "RESET" button (part#) says {Made in China} when you replace it.

Mon, 04/29/2013 - 18:46 | 3511604 Meat Hammer
Meat Hammer's picture

I kept pondering why the Cypriot sheeple don't want to leave the Eurozone.  Then it dawned on me...the battered wife analogy.

Yeah, he beats her ass a few times a week, but at least she doesn't have to worry about all of the uncertainties of freedom.  

Yeah, the Cypriots had their money stolen, but at least they don't have to engage in voluntary exchange with a sound currency...that might require extra thought and effort.

Mon, 04/29/2013 - 19:07 | 3511658 Shell Game
Shell Game's picture

Not a bad explanation, Meat.  Kind of like the 'Shawshank Redemption syndrome' of sorts - the Cypriots have been 'institutionalized'.  The chains have gotten too comfortable, and freedom, too dangerous.   This is true of any and all debt slaves.


“It always comes down to just two choices. Get busy living, or get busy dying.” 


Mon, 04/29/2013 - 19:21 | 3511723 Meat Hammer
Meat Hammer's picture

Brooks was here.

Mon, 04/29/2013 - 19:25 | 3511728 Shell Game
Shell Game's picture

So Was Red.

Mon, 04/29/2013 - 19:45 | 3511802 akak
akak's picture

Still one of my very favorite, and one of the most moving, scenes from any movie:

Mon, 04/29/2013 - 18:47 | 3511610 williambanzai7
williambanzai7's picture


Mon, 04/29/2013 - 19:07 | 3511657 IridiumRebel
IridiumRebel's picture

Yo whasup TimDog! Ya out sniffing butts?

Mon, 04/29/2013 - 23:03 | 3512499 1000924014093
1000924014093's picture

The dogs look embarrassed.

Mon, 04/29/2013 - 18:52 | 3511614 BackOffice Slut
BackOffice Slut's picture

The stage and actors are set for WW3. All we need is the "producer" to call action.

Mon, 04/29/2013 - 18:55 | 3511624 buzzsaw99
buzzsaw99's picture

Savers of usd = terrorists. They should just put an expiration date on the clownbux.

Mon, 04/29/2013 - 19:02 | 3511649 Yen Cross
Yen Cross's picture

    Savers of anything tangible buzz. I trade paper for a living. I convert my proceeds to tangibles.

Mon, 04/29/2013 - 19:00 | 3511642 1C3-N1N3
1C3-N1N3's picture


An inflationary leveraging perpetuates imbalances while deflationary deleveraging threatens the survival of the banking system at large.

Just waiting for the day when a good or service costs more paper dollars than exist.

And so we think that circa 2070, our children will write and read (140-word) biographies about how Timothy Geithner saved the world from economic darkness.

I'll be a little over 80 then. In 2070, I will be sure to "think" the entire contents of the ZH site into others' brains and they will see what monsters the early-21st-century TPTB are. Then, after my tissue-enhancement surgery, I'll go run a few 6-minute miles.

Mon, 04/29/2013 - 19:05 | 3511659 BandGap
BandGap's picture

What a pile of steaming crap. The whole premise here is that the situation will be orderly enough that it can be addressed.......end of fucking story.

Mon, 04/29/2013 - 19:07 | 3511664 khakuda
khakuda's picture

I love these guys, but if the reserve currency collapses, I would prefer guns, ammo, a few cows, chickens, a farm and a water well over gold.

Mon, 04/29/2013 - 19:23 | 3511721 Shell Game
Shell Game's picture

First, who says you EITHER own gold OR you own guns/ammo/livestock?  This tired cliche needs to be taken behind the wood shed...   Secondly, unless you are the few who are already farmers, how will folks acquire land and livestock after paper dies?  Who will create and/or buy businesses after paper dies?  Gold will always be a store of value, especially when paper dies. 

Mon, 04/29/2013 - 22:01 | 3512210 khakuda
khakuda's picture

Respectfully, I don't disagree.  Just saying that in the immediate aftermath of the scenario they envision, the other stuff has inherent usable value and is also tradeable.  Having lost power during Sandy for 15 days, what was really important was having food, shelter, water and a way to get warm.  Life gets very primitive after about 3-4 days without power.  Paper money, even real money like gold, could not buy anything because the other stuff was just not available or scarce for weeks or months once the SHTF.  Not knocking gold's role as real money, especially over time, just pointing out that you can only trade it for other usable stuff if that stuff is available.  Plus, in the short run, who knows how gold will perform.  There is a crapload of leverage in the system.  Maybe it skyrockets or maybe in the short run it falls like it did during the Lehman decline.

Like I said, I like these guys a lot and own the things they suggest, but I am trying to diversify well beyond that because how this plays out is not set in stone.  Massive cock ups like this always have twists and aren't exactly like previous ones.

That said, I'd like to be able to afford a life-sized solid gold statue of Janet Yellen right about now.

Mon, 04/29/2013 - 23:06 | 3512506 Shell Game
Shell Game's picture

Point taken - if you can't survive a 'grid out' scenario then PMs won't be of much use.  However, for years now I've heard this old load of crap that "you can't eat gold", usually from folks who feel they can't "afford" gold, so they justify their position by taking untruthful shots at it. 

The worries over the short term moves on gold are irrelevant, gold is not a trading vehicle, it will bridge any gap the coming crisis creates. On the other side, it will literally make the difference between a farmer and an new paradigm entrepenuer. 

Mon, 04/29/2013 - 19:22 | 3511713 alfbell
alfbell's picture



Martin Armstrong has a different view of gold. He has been deep in governments for many years and he knows how bureaucrats think and how policy is created. He is an economic historian as well. His computer software allows him to monitor the multi-dimensional dynamics of the global economy. With this in mind, I wouldn't just shun his opinion. TPTB don't care about the people, they just want to keep their system going. They'll never allow a gold standard because they don't want their borrowing and spending habits to ever be curtailed. Martin Armstrong below...

The dollar rose between 1980 and 1985 on the fears that the USA would default creating a two-tier monetary system with red dollars externally and green dollars internally. The US national debt hit $907.7 billion in 1980, $2.125 trillion by 1986 and $3.2 trillion by 1990. The correlation sold by the gold promoters is you buy gold because the national debt is rising, OK. Between 1980 and 1985 gold fell from $875 to $292 with the debt more than doubling. The dollar soared forcing the British pound to collapse from $2.40 to $1.03 yet the interest rates fell by 50%. One-to-One correlations do not exist. It is multidimensional and never just plain and simple. It takes a computer to calculate all these relationships. It much more complicated than that. Consequently, opinion will get you nowhere close to consistency.

So can gold and the dollar rise together? The answer is YES! It depends entirely upon the dynamics of the mix. Gold declined with higher interest rates at first between 1980 and 1981, then continued its collapse as the dollar then rallied into 1985. But capital was fleeing Europe moving from Eurodollar deposits to domestic dollar deposits during 1980-1985. Gold was collapsing from an overbought position hyped-up on the whole inflation debt nonsense. Yet there was an exploding national debt with DEFLATION! Amazing.

The potential rally in the dollar is simply due this time to the political instability in Europe and Japan. The rising dollar will create the global economic recession, fueling further Draconian laws, higher taxes and further DEFLATION caused by an economic implosion that the gold promoters cannot see because they do not want to see. The further GDP declines globally, then less tax revenue garnered making governments more aggressive in search of money resulting in attacking the citizenry. Go too far, we end up with the Mad Max scenario.

This is how Rome fell. The rule of law collapsed. The citizens lost all rights. Taxes soared and it got to the point people began to just walk away from their property setting the stage for serfdom and the Dark Ages..Hopefully we will run out of time cyclically and still have something left at the end of the day.

If you keep listening to the gold promoters, you will be playing with your coins, fantasizing how rich you will be, when either the soldiers come searching door to door as they did with this Boston event without search warrants on the premise it is a national emergency to gather all the wealth, or you open your door and there is no place to spend your coins. Is Rome repeating again?

Mon, 04/29/2013 - 19:27 | 3511734 khakuda
khakuda's picture

This is what makes the current environment so tough for investment. There are no safe assets when law breaks down.

Mon, 04/29/2013 - 20:08 | 3511824 akak
akak's picture

Fuck that disingenuous and/or senile pro-establishment shill Armstrong.

He automatically discredits himself in my eyes merely for repeatedly spouting the same threadbare nonsense about the "rising dollar", which is as false and misleading pro-status-quo propaganda as any of the crap spewed by Bernanke.  The simple fact is that the US dollar, like EVERY fiat currency even known to history, has a perfect and unblemished record of continually and constantly FALLING in value, as it manifestly and unequivocally did between 1980 and 1985 --- I remember those years, and the significant decline in the dollar's purchasing power, and the concomitant rise in overall prices, during that five year interval.

Frankly, I find neither insight nor honesty in almost anything this fact and history-twisting, co-opted bastard has to say, and his kneejerk and clueless anti-gold bullshit is almost worthy of Jon Nadler himself.  One may as well look for wisdom in the blatherings of Krugman. Whatever happened to him in prison, it damaged his intellectual ability, his independence of thought, and/or his apparent former willingness to challenge the establishment power structure.

Mon, 04/29/2013 - 20:12 | 3511888 Orly
Orly's picture

Open invitation to akak:

Try to go thirty posting days without using the word "disingenuous," or some derivative thereof.

As Stephen King put in his absolutely wonderful book, On Writing, "murder your darlings."


Mon, 04/29/2013 - 20:31 | 3511900 akak
akak's picture

Open invitation to Orly:

Fuck off, you disingenuous deflationary flat-earther bitch.

When one encounters the same malevolent attribute everywhere one turns, day in and day out, just how many synonyms can one use, or find, for the same ubiquitous trait?


PS: If the shoe fits, wear it.  And in your shared arrogance and willful historical ignorance, it fits both you and Martin Armstrong to a "T".

Mon, 04/29/2013 - 20:49 | 3512016 Imminent Crucible
Imminent Crucible's picture

I think dissembling disingenuous Marty bought his way out of Jail 4Eva by promising to bash gold for the rest of his wretched disingenuous life. In any case, he's got it wrong again, claiming deflation when there was none:

You can comb those CPI charts until the sun burns out, and you will find NO deflationary eras except one: 1927-1933. That's it, baby.

Oh, by the way, Stephen King is a sucky writer who wallows in depravity. Disingenuous depravity.


Akak: Do NOT talk to Nellie Oleson. She's a prairie bitch.

Mon, 04/29/2013 - 21:25 | 3512078 akak
akak's picture


I think dissembling disingenuous Marty bought his way out of Jail 4Eva by promising to bash gold for the rest of his wretched disingenuous life.

I think your non-disingenuous assessment of the disingenuous Martin Armstrong matches my own, in a completely non-disingenuous manner, of course.

You can comb those CPI charts until the sun burns out, and you will find NO deflationary eras except one: 1927-1933. That's it, baby.

Which is why the disingenuous deflationary flat-earthers will never use those CPI charts (lowballed as they are) in the attempt to "prove" the existence of their unicorn of fiat currency deflation.

Mon, 04/29/2013 - 21:39 | 3512191 Professorlocknload
Professorlocknload's picture

Ingenuous enough assessment of the disingenuous. But really, word smithery ain't my forte'.

On dee-flationism, well, I offer this,,,

Wouldn't wager against that! It's like a religion.

Tue, 04/30/2013 - 12:47 | 3512606 web bot
web bot's picture

If you've read any of the eminent writings of Mr. Armstrong, it may be a bit of a stretch to call him a historian.

In one of his scholarly articles, he writes about how Praetorian guards were sent out by Caesar to find soilders who had huge penises... who were then brought back for Caesar's pleasure. Perhaps this would pass as credible historical research at Tulane University with the likes of that witch, Melissa Harris-Perry, but not with the street proven crew of ZH.

Mon, 04/29/2013 - 21:58 | 3512272 Non Passaran
Non Passaran's picture

Not a huge fun of some of akak's views, but here I believe he's right.
Google Armstrong's happenings after he was freed. Dis-ingenious is da word.

Mon, 04/29/2013 - 22:47 | 3512461 akak
akak's picture

NonPassaran, I would be curious (without being hostile or critical to you) to know of which of my view's you are not a huge fan.  If it were my responses to the trolls such as AnAnonymous or PUD, fair enough, I could understand that.

Mon, 04/29/2013 - 23:43 | 3512625 web bot
web bot's picture


Be a nice girl and get Mr. Akak and me some coffee. Then run along - there's a sink full of our dishes waiting for you.  :)

Mon, 04/29/2013 - 21:17 | 3512132 malek
malek's picture

It is a little weird that otherwise concise Martin Armstrong goes cherry-picking facts when it comes to Gold.

While I agree that in a total collapse Gold will not help you much, other investments won't either.
Outside such worst case scenarios Gold will work as insurance to retain at least some of your wealth in the possible scenarios. Talking about 1980-85 without mentioning rising interest rates of that time, and the impossibility of doing such nowadays without flushing the status quo, is just ridiculous.
Yes, the dollar will try to play "last man standing" and I would expect TPTB have plans for collapsing the Yen and the Euro if necessary to stabilize the Dollar, but I must assume that China and Russia are not completey co-opted by western TPTB and therefore the overall outcome is far from guaranteed to have the Dollar be the lone survivor in the end (or the western Eilte the controllers of a new world currency).

Mon, 04/29/2013 - 19:27 | 3511738 q99x2
q99x2's picture

What a quaint view of apocalypse. Did you get that: dudes going to "need a new skill set." Ya like running and hiding from millions of lynch mobbing zombies..

Mon, 04/29/2013 - 19:30 | 3511751 andrewp111
andrewp111's picture

Can Central Banks create inflation in the current environment? I would say QE does not work. It does not inflate any prices except those of stocks and junk bonds.  While initially stimulative, past a certain point, QE is actually deflationary. We may already be past that point. What else can Central banks purchase? Our Fed can't legally buy anything except Treasuries, GSE's, foreign currencies and Gold.  Buying foreign currencies causes a trade war with equivalent retaliation and no one wants that, although it could cause inflation.  Buying Gold would actually pump money into the real economy and be stimulative. But I doubt there is enough gold available for the Fed to create real inflation. Governments can create inflation with massive fiscal deficits monetized by the Central Bank. In our current environment those deficits would have to be many times the size of the current Federal Deficit. If Obama/Pelosi take the House back next Nov, they could create inflation. But I would say the Fed on its own cannot.

Mon, 04/29/2013 - 20:52 | 3512044 calltoaccount
calltoaccount's picture

"Our Fed can't legally buy anything except Treasuries, GSE's, foreign currencies and Gold."


didn't you get the memo?   "legally" is no longer of concern

Mon, 04/29/2013 - 21:14 | 3512120 calltoaccount
calltoaccount's picture

re the FED operating "legally"


"So the question isn't whether we need a central bank: We do. The question is, Why is it dominated by the people who have already ruined the economy once - and who have a clear conflict of interest?

The World's Biggest ATM

Give a bunch of bankers access to the world's biggest ATM and look what happens: As Bloomberg News reported last August, "Wall Street's aristocracy got $1.2 trillion in secret loans" from the Federal Reserve.

What the Federal Reserve hasn't done is carry out its mission, which the Fed's own "Purposes and Functions" document describes as:

  • conducting the nation's monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates
  • supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers
  • maintaining the stability of the financial system and containing systemic risk that may arise in financial markets
  • providing financial services to depository institutions, the U.S. government, and foreign official institutions ...

When it comes to that last bullet point the Fed's knocked it out of the park, especially for the banks. The other goals? Not so much.


Scoring the Fed

Let's rate the Federal Reserve according to the parameters it set out for itself:

  • "Maximum employment": Thanks to the Fed, banks have had access to free or very-low-cost money, which they've used to make money on Treasuries and other safe investments. But they haven't been lending it to the consumers and small businesses who are the engines of job growth.
  • "Stable prices": Gas prices keep swinging up and down radically because of speculation.
  • "Moderate long-term interest rates": Yes - but is that good? Opinions vary.
  • "Safety and soundness of the nation's banking and financial system": JPMorgan Chase's recent debacle shows how little the Fed has accomplished here. but then, how easy can it be to rein in Jamie Dimon when he's chairing the meeting?
  • "Protect the credit rights of consumers": Massive mortgage fraud by major banks. One settlement after another for deceiving consumers. How much time do you have?
  • "Maintaining stability ... containing systemic risk": JPMorgan Chase's latest debacle settles this issue once and for all ...

... By any objective measurement, the Federal Reserve has failed to do meet these key objectives, and the composition of its boards is one of the reasons why.

The Radical Fed

Is it any wonder that the Fed gave out more than a trillion dollars to Wall Street's biggest banks - and did it in secret? (That alone would appear to violate securities law, since it allowed bankers like Jamie Dimon to materially misrepresent the financial condition of their corporations.)

And that's not all the newly radicalized Fed has done. It broke the rules by allowing Goldman Sachs and GE Capital to call themselves "banks" - just in time to collect their taxpayer-funded bailouts. But it hasn't shown any flexibility when it comes to demanding that banks use some of their low-interest Fed loans to lend to the people and companies that will use it to create jobs.

The Fed has even broken its own rules in order to protect bad bankers. As Prof. Steven Davidoff noted in the New York Times: "In Blocking Activists, the Fed Protects Poorly Performing Banks." It's also protecting poorly performers bankers - like the ones that sit on its boards.

In one case the Fed blocked a shareholder action by invoking a rule which said an outside party couldn't have more than 25 percent control of a bank - but the shareholder would only have acquired 22 percent control. As Davidoff documents, Fed is repeatedly bending or violating its own rules to prevent shareholders from exercising their rights to  limit executive compensation or take action against underperforming or ethically-challenged executives.

The Fed has changed the playbook for bankers over and over. But whenever someone suggests imaginative programs to stimulate the economy by helping consumers or small businesses the Fed suddenly decides it's a stickler for the rules."

Mon, 04/29/2013 - 19:33 | 3511759 alfbell
alfbell's picture



The Fed or the government of the elite don't care about what is legal. I bet you that soon the Fed starts buyiing stocks!

Mon, 04/29/2013 - 19:42 | 3511778 Herdee
Herdee's picture

Banks are buying equities in order to try to hold up a lot of pension funds.Their depositors live off a lot of their old Company pensions which are all going bust if they don't get at least 5% interest.The old days are gone so more risk is needed to push equities.Corporate profits at any price and whatever it takes.The Fed is being forced to keep juicing it because of the boneheads in Washington who can't balance a budget.She's all gearing up to unchartered territory.I almost forgot,throw in more derivatives.More morfing.More war.

Mon, 04/29/2013 - 19:51 | 3511811 espirit
espirit's picture

+1 Someone gets it.  Just don't forget that the public pensions must be bought to obtain allegiance from the servants, and that usually costs 7-8%.

Mon, 04/29/2013 - 20:12 | 3511896 kito
kito's picture

If our scenario comes to pass, then bank, government and consumer balance sheets would be quite healthy following the reset and would be ready to expand....................

oh goodie, shtf and everybody can start borrowing again!!!!!!..........what a fucked up outlook......................................

Mon, 04/29/2013 - 21:23 | 3512149 akak
akak's picture

How else are you going to get the neo-serfs to voluntarily apply those chains of debt to themselves?

Mon, 04/29/2013 - 23:07 | 3512509 Imminent Crucible
Imminent Crucible's picture

Precisely. The so-called re-set is only an invitation to begin another debt-fueled expansion that will end in yet another series of bubbles and another final collapse.  These guys can blather on about a quasi-gold standard like Bretton Woods, but that one destroyed itself in short order. It went into force in 1945 and had to be defaulted on in 1971. This time around, with the criminal banks still intact and foaming at the mouth to begin the rehypothecation cycle all over, it couldn't last more than a decade or so.

It's not going to happen. The system depends on banks and theft. When this plays out, at least two generations will pass before anyone will put an ounce of gold in a bank to get Cyprused/Corzined/Dimoned.

Something very different is on the way. But first, I expect a protracted period of instability, social disorder and increasing poverty and desperation. I'm hopeful that some of the ensuing mayhem will fall on the guilty parties rather than the Korean grocers.

Mon, 04/29/2013 - 20:16 | 3511911 BigInJapan
BigInJapan's picture

Anybody else thinking that after a currency reset, the only acceptable currency will be plastic debit/credit cards?

Taxed at the source, for every single transaction? Cash or barter to be made illegal?

Mon, 04/29/2013 - 23:48 | 3512654 NOTfromSanFrancisco
NOTfromSanFrancisco's picture


Everything is in place for a cashless financial system to operate... If so... Governments will get all the taxes they could ever dream of... Drug cartels cash houses would disappear... Bank robberies would disappear (gimmie all your O's and 1's!!!)... Your physical location could be constantly monitored (every time you use your cashless buying card or device or implant or barcode tatoo)... AND... The CIA's new, or I should say, preferred method of payment will be... Wait for it... GOLD!!!... Untraceable!!!... Liquid!!!... Fungible!!!... Desirable!!!... SOMEBODY STOP ME!!!...

Mon, 04/29/2013 - 20:21 | 3511920 Tango in the Blight
Tango in the Blight's picture

Yanks have guns and ammo but they do absolutely NOTHING with them except polishing them and plinking cans. Their ancestors had guns and ammo and used them to drive away the most powerful empire on Earth (at the time).

Mon, 04/29/2013 - 23:13 | 3512535 Imminent Crucible
Imminent Crucible's picture absolutely NOTHING with them....

Completely false. A lot of us shoot Bambi with them.

Mon, 04/29/2013 - 23:42 | 3512624 NOTfromSanFrancisco
NOTfromSanFrancisco's picture


...and Thumper... I like Thumper... Tastes like chicken...

Tue, 04/30/2013 - 01:29 | 3512877 akak
akak's picture

Ah, Thumper and Bambi.

Taste almost like baby seal.

Tue, 04/30/2013 - 09:41 | 3513479 Imminent Crucible
Imminent Crucible's picture

You liar. You KNOW you're a liar. You never ate a baby seal.  I went from one end of Kroger's to the other and there was ZERO baby seal. Did get a few packages of frozen walrus, though. Koo Koo Ka Choo.

Mon, 04/29/2013 - 20:32 | 3511922 lynnybee
lynnybee's picture

Geithner or Summers !  but, those are the criminals; god help us all .

Mon, 04/29/2013 - 21:07 | 3512088 yogibear
yogibear's picture

LOL, the way paper is being devalued by the bamksters  Wall Street will have billions of people world buying with both hands. Even the banksters buying. 

Remember Germany wants their gold back. One way for the Fed ti replace it.

Everyone takes deklivery.


Mon, 04/29/2013 - 21:27 | 3512160 joego1
joego1's picture

Tim Geithner will ascend the steps at Eccles- And monkeys will fly out of his ass before he fixes a damn thing.

Mon, 04/29/2013 - 21:29 | 3512166 Miss Expectations
Miss Expectations's picture

Ha Ha...I was half way through before I realized it was a joke.

Mon, 04/29/2013 - 22:15 | 3512325 alfbell
alfbell's picture


Owning some class B apartments in the right locations might help to get one through the rough times ahead. Maybe some quality, high arable farmland to lease out as well. Just don't know what's coming or what the successful prepping strategy was until TSHTF. Hope they keep the people well propaganda-ized (confidence level up) and manage to hold of the USA Armageddon for another decade at least so that I can get my act together.

Mon, 04/29/2013 - 22:30 | 3512389 edwardo1
edwardo1's picture

If the authors of this piece are familiar with the freegold thesis they are doing a wonderful job of overlooking some off freegold's most vital components as they construct their own "golden outcome."

Someone, not QBAMCO, of course, mentioned mining nationalization.

Miners don't need to be nationalized, they can simply be windfall taxed. Of couse this makes them far less attractive as prospective investments, but that is an outcome that seems more likely than the one put forth by QBAMCO.

Also consider that there is plenty of gold stock globally. So the world doesn't need mining supply, it needs the present stock, which is locked up tigher than a vestal virgin's crotch, to flow. A high enough price, and low to no taxation on physical will take care of the stock to flow issue. Miners may be seen to be in the long term national interest, but they are not essential.

Also, bear in mind that, to this day, Treasury is in default on gold claims from the time (before 1971) when foreign holdings of dollars were gold convertible. This is a legal tangle that is by no means negligible.

Suffice it to say that the ECB is much better positioned to engineer a revaluation of gold based on a whole host of factors which should, by now, be common knowledge. The U.S. could take a lead role in a gold revaluation, but it would make much more sense for them to wait until after the effects of hyper-inflation ate substantially into the U.S. Government's debt load. No pun intended, but U.S. monetary authorities will get far more bang for their buck if they wait to reval after a few zeroes have been lopped off the dollar. I don't expect this will take long to transpire because it can't be allowed to go on too long because the ROW will be so negatvely effected by a U.S. HI.

There's a lot more to say about this paper but I don't have anymore time presently.

Mon, 04/29/2013 - 23:21 | 3512566 honestann
honestann's picture

Those 3 names are just misdirection.  The next chairman of the federal reserve is already chosen.  His name is Paul Krugman.

Tue, 04/30/2013 - 00:34 | 3512768 Theosebes Goodfellow
Theosebes Goodfellow's picture

Holy crap, what an idea. Would he really be that dumb, (or vain), to take the job? Wouldn't that be a sweet thing to see when the whole show comes down around his ears?

Tue, 04/30/2013 - 01:28 | 3512882 akak
akak's picture

The position could not fall to a better hobbit.

Tue, 04/30/2013 - 08:17 | 3513218 web bot
web bot's picture

That would signal the beginning of the Apocalypse.

Fri, 05/03/2013 - 15:17 | 3528046 Anusocracy
Anusocracy's picture

Makes sense. He's a true believer and can take a lot of abuse.

Tue, 04/30/2013 - 00:32 | 3512761 Theosebes Goodfellow
Theosebes Goodfellow's picture

~"In this case; however, we think the choice for next Fed Chair may have profound economic implications, and that it would not require expertise in econometric modeling, credit policy management, and maintaining the public perception of economic stability."~


No, it won't. At this stage in the game, it doesn't make a rat's ass who gets the job. All they will get to do is be the one wearing the albatross when TSHTF. Tick, tock, tick tock...

Tue, 04/30/2013 - 07:39 | 3513172 OpTwoMistic
OpTwoMistic's picture

How do you have a PM backed currency when you own none?

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