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"Fed Has Fingers & Thumbs On The Scales Of Finance," Grant Tells Santelli And It "Will End Badly"

Tyler Durden's picture


In a mere 140 seconds, Jim Grant explains to an almost stunned into silence Rick Santelli how we all "live in a valuation hall of mirrors" as the Fed manipulates everything. Thanks to it's "fingers and thumbs on the scales of finance," Grant continues, the Fed "insists on saving us from 'everyday low prices'" - what they call deflation - and by doing so it manufactures "redundant credit" which "does mischief" in and out of markets. Grant, ominously concludes, "there is no suspense as to how [this will] end... [it will] end badly."


Must watch... (especially for EM asset managers)...


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Thu, 01/30/2014 - 21:14 | 4386181 The Gooch
The Gooch's picture

Sever Roots Tree Dies

Thu, 01/30/2014 - 21:19 | 4386196 AlaricBalth
AlaricBalth's picture

End the Fed before the Fed ends us.

Thu, 01/30/2014 - 21:29 | 4386236 OC Sure
OC Sure's picture

And tell two friends this to tell two friends, please.

Thu, 01/30/2014 - 21:52 | 4386288 knukles
knukles's picture


Santelli and Grant?
CNBS is seriously worried about boosting their ratings!

Could you imagine what it would be like if it were real economic and financial reporting?
Yes, Knukies, the telly reporters would all be in the Northern Arkansas Nucleotide Reprocessing and Vegetable Washing Faciltiy #3 and the network shuttered.

Thu, 01/30/2014 - 22:09 | 4386348 Pure Evil
Pure Evil's picture

There's no comeback from that ditty.

Thu, 01/30/2014 - 22:42 | 4386469 markmotive
markmotive's picture

End badly for who? Certainly not the fat cats!

They love their ladies loose and monetary policy looser.

Thu, 01/30/2014 - 23:01 | 4386527 Pure Evil
Pure Evil's picture



Now, now.........

        who doesn't like money for nothing and chicks for free?

Fri, 01/31/2014 - 01:23 | 4386890 0b1knob
0b1knob's picture

There's a scene in the movie Wolf of Wall Street where a broker shows up at a bucket shop wearing a bow tie.   The head crook takes one look at him and fires him.

I thought of Jim Grant when I saw that.

Fri, 01/31/2014 - 05:23 | 4387082 macholatte
macholatte's picture


Fri, 01/31/2014 - 06:38 | 4387123 new game
new game's picture

i will give them til 2016 for there end badly to come true.

this i can say with confidence:2.5 ten year sooon

1750 s and p sooon

jpy 1.02 sooon

then, well all bets off.

one thing for sure, world fundamental deteriorating.

paper chase is on>trace hot money(always after best return whether rational or not).

i choose to watch, listen then comment...

all cash for the GREAT WOOOSH coming sooon...

Fri, 01/31/2014 - 06:47 | 4387127 GetZeeGold
GetZeeGold's picture



If you want your can keep your 401K.

Fri, 01/31/2014 - 06:52 | 4387131 new game
new game's picture

i liquidated all 403b assets to cash for the great wooosh.

how about you? 1/4 AU?

sitting on a farmstead, playing the grains?

you knowledge makes for easy living-congrats.

a savy farmer with all due respect!

Thu, 01/30/2014 - 22:13 | 4386364 THX 1178
THX 1178's picture

Mmmhmm... ZH is the closest thing we have to real economic/finance reporting.

Thu, 01/30/2014 - 22:33 | 4386401 wee-weed up
wee-weed up's picture



Fingers & thumbs soon to be replaced by Yellen's fat ass in full-out QE-diarrhea mode!

Fri, 01/31/2014 - 06:47 | 4387125 Squid-puppets a...
Squid-puppets a-go-go's picture

but she gotsta wait a month before coming out with a shift in the drift - otherwise itll look like a panic response

how far we gonna fall in the next 30 days ?

Fri, 01/31/2014 - 04:36 | 4387063 Gumbum
Gumbum's picture

But...this was on CNBC? :P

Thu, 01/30/2014 - 22:56 | 4386507 Yes_Questions
Yes_Questions's picture



Northern Arkansas Nucleotide Reprocessing and Vegetable Washing Faciltiy #3..


Are they hiring and do they have a myRa?

Fri, 01/31/2014 - 01:58 | 4386951 NOTW777
NOTW777's picture

if there was real and honest reporting their ratings would soar - why cant they figure this out

Thu, 01/30/2014 - 22:09 | 4386350 A Nanny Moose
A Nanny Moose's picture

Ron Paul for prez. Santelli for Treasury Secy, Grant for Fed Chair

Thu, 01/30/2014 - 22:34 | 4386445 john39
john39's picture

There is zero need for a fed chair, much less a fed.

Thu, 01/30/2014 - 23:00 | 4386520 Yes_Questions
Yes_Questions's picture



the FED...




Time to Die

Fri, 01/31/2014 - 06:52 | 4387133 GetZeeGold
GetZeeGold's picture



It's gonna take one hell of an exorcism.


I hope pea soup doesn't make you squeamish.

Fri, 01/31/2014 - 00:10 | 4386734 therover
therover's picture

Grant has been posed the question what would he do if he was the fed chair, and he says the first thing would be to end the fed, hence abolishing his job.

So maybe Jim would be he best fed chairman because he would end it.

Fri, 01/31/2014 - 00:38 | 4386811 A Nanny Moose
A Nanny Moose's picture

Implied in my comment, at least in my small brain, is the notion that Grant would dismantle "right said Fed."

Fri, 01/31/2014 - 01:10 | 4386883 Lets Buy The Dip
Lets Buy The Dip's picture

right now the FED is the weapon for the elite. Nothing more nothing less. 

santelly forgot to tell people the U.S. stocks are on pace to close a volatile January in the red, after posting the best yearly gain in 16 years.

There is that saying on wall street.... "As January goes, so goes the year?"

but right now, the market is in a massive massive 30 points VIOLENT SWING SEE HERE =>

 Anyone trading the last few days, has had their nuts in a vice. 

Thu, 01/30/2014 - 22:41 | 4386467 The Vineyard
The Vineyard's picture

I've been waiting for the collapse for the last five years.  Never seems to happen.  I see Japan-style endless recession, not Zimbabwe.

Fri, 01/31/2014 - 00:12 | 4386740 Frozen IcQb
Frozen IcQb's picture

Given a choice, i'll take a Japan-style endless recession over Zimbabwe.
Gold has done well priced in Yen over the last decade and without hyperinflation to boot.

Fri, 01/31/2014 - 00:24 | 4386768 Greenskeeper_Carl
Greenskeeper_Carl's picture

All very true, both of you. However, don't think just because Japan has gone Zimbabwe yet, they won't. Our future probably holds a long Japan style decline, which will lead to moar central planning, until eventually you get your Zimbabwe shit storm. That's the problem you get when all these decisions are made by central planners who pay no price for being wrong.

Fri, 01/31/2014 - 04:20 | 4387053 Doña K
Doña K's picture

Japan, was in survival mode for two decades because others were doing better and Japanese companies were showing profits as the BOJ was winking when to expatriate yen and when to repatriate yen, thus the round trip at the right time produced their profits. Now however, the world is in Japan's position and in a currency race to the bottom everyone loses except gold holders.

That is why Central Banksters will die or have us die in wars instead, before they let gold price go to the moon and expose them.


Fri, 01/31/2014 - 07:37 | 4387183 Frozen IcQb
Frozen IcQb's picture

All central banks must be shut-down. Monetary issuance must return under the electorate’s control.

Hopefully, this can be achieved without wars and limited to a few bankers falling of the 35th floor.

Fri, 01/31/2014 - 00:12 | 4386739 Babaloo
Babaloo's picture

The next time Jim Grant is right will be the first time.

Fri, 01/31/2014 - 00:26 | 4386783 AlaricBalth
AlaricBalth's picture

From Financial Times.
"If Grant could see what was happening this clearly,” wrote John Authors of the staff of the FT, “and warn of it in a well-circulated publication, how did the world’s financial regulators fail to avert the crisis before it became deadly, and how did the rest of us continue to make the irrational investing decisions..."

Fri, 01/31/2014 - 02:31 | 4386968 buyingsterling
buyingsterling's picture

Ooh! Alaric's done you, mate. You look like a right twat.

Fri, 01/31/2014 - 04:25 | 4387054 matrix2012
matrix2012's picture

"So, a smart question to ask at this time is: Is the moment in time we're in today closer to January 2006, when there were several years left of exuberance to ride? Or is it more like September 2008, poised at the precipice?

A smarter answer is: There's no way to know with acceptable certainty.

Like grains of sand piling up or snowflakes falling on a cornice, we can assess the growing level of risk, but we can't identify the grain of sand or snowflake that will cause the eventual cascade. We can't predict the collapse timing with confidence. We can – and will – continue to make our best-educated estimates, but the exact timing is unknowable.

So, given that fact, as John Hussman so pithily captures, bubble markets force us to make a choice:

The problem with bubbles is that they force one to decide whether to look like an idiot before the peak, or an idiot after the peak. 

And so your choice is upon you. Look at the evidence around you  a movie nearly identical to one you saw in 2000 and again in 2008 – and either decide to party with the herd while the music plays (look smart today), or park yourself in safety now (look smart tomorrow).

Since the timing of the next correction is unknowable, the prudent choice is obvious. But it's not easy, for all of the reasons mentioned at the start of this article."

Adam Taggart

Fri, 01/31/2014 - 08:30 | 4387254 SoilMyselfRotten
SoilMyselfRotten's picture

Grant is always worth listening to. Babaloo, replace your crack with weed, it doesnt kill as many brain cells.

Fri, 01/31/2014 - 00:39 | 4386815 Franktastic
Franktastic's picture

Civil Disobedience anyone?

"Withholding payment of taxes is one of the quickest methods of overthrowing a government"
Mahatma Gandhi

Fri, 01/31/2014 - 00:49 | 4386833 Al Gorerhythm
Al Gorerhythm's picture

But then there's always green shoots.

Fri, 01/31/2014 - 06:52 | 4387132 XAU XAG
XAU XAG's picture

The shortest statement would be


Fed has FUBAR'D the markets-not going to end well

Thu, 01/30/2014 - 21:15 | 4386182 WelfareFTW
WelfareFTW's picture


edit: argh! or not

Thu, 01/30/2014 - 21:16 | 4386190 The Gooch
The Gooch's picture

some firsts are moar equal than others.





Thu, 01/30/2014 - 21:19 | 4386201 OC Sure
OC Sure's picture

Inflation favors the thief; deflation favors the honest citizen.

Thu, 01/30/2014 - 23:18 | 4386551 CognacAndMencken
CognacAndMencken's picture



Can you please tell me how deflation benefited the farmers of America in the 1880's, and how it affected the honest citizens during the Great Depression?  

The closest we've come to a sweeping round of deflation was 2008/9, and it would appear that the majority of "honest citizens" are still trying to find jobs, pay bills, and dig themselves out of the ditch.  

I'm betting that you're from the South.... ????    

Thu, 01/30/2014 - 23:25 | 4386592 greatbeard
greatbeard's picture

>> just tell me that you're from Texas or the South and I'll understand

Well lookie what we got here, one of them educated, high and mighty bigots.  Suck my neighbor's dog's dick, jackass.

Thu, 01/30/2014 - 23:45 | 4386659 Shad_ow
Shad_ow's picture

Thank you. Saved me the trouble.


Fri, 01/31/2014 - 00:24 | 4386769 prains
prains's picture

1880's LOL that's a timely comparison.....

Thu, 01/30/2014 - 23:54 | 4386664 OC Sure
OC Sure's picture

@ C&M

When the value of a currency goes up, so does its purchasing power. As prices of real things decline, if you hold that currency, you can do more with it. During the Great Depression they understood that simple fact. In 1932 Eddie Cantor had a number one hit named Nows the Time to Fall in Love. Check it out. It says it all:

"Potatoes are cheaper
Tomatoes are cheaper
Now's the time
To fall in love

Why, the butcher, the baker,
And the candlestick maker
All gave their price
A downward shove

Grab yourself someone
To fry your eggs and bacon
Why, she can live just like a queen
On what you're makin'

'Cause this and that's a lot cheaper
And a flat's a lot cheaper
So, Honey, now's the time
To fall in love"

You are probably mistaking the loss of jobs during deflationary times as the symptom of the deflation. This is where you may be miffed. The cause for the loss of jobs was the expansion, inflation, prior to the deflation. The deflation is the fix.


Fri, 01/31/2014 - 00:39 | 4386818 A Nanny Moose
A Nanny Moose's picture

Pay the fuck attention! was neither the inflation, nor the necessary and subsequent deflation, which hurt farmers. It was government fucking around with the money supply.

Fri, 01/31/2014 - 10:04 | 4387521 jerry_theking_lawler
jerry_theking_lawler's picture

Ok. You are REALLY close on this one....just a little bit further. 


Fucking around with the monetary supply IS by definition inflation (expanding money supply) and deflation (contracting money supply).....

Fri, 01/31/2014 - 04:15 | 4387050 epicurious
epicurious's picture

During the the teens & 20's government intervention in farm pricing caused the expansion of wheat farming in an area that could not ecologically support that.  The government actually gave people free train rides out to develope a grassland region that was eventually became a wasteland due to improper governemnt meddling.  The government was the primary cause of the great depression in every way.  Read "The Worst Hard Times".   Great account of all this.  Get educated before mouthing off on Zero Hedge.

Thu, 01/30/2014 - 21:22 | 4386214 chumbawamba
chumbawamba's picture

That wasn't much better.  If you want to talk firsts then go back to 1789, but that's only where America is concerned.  You can't even know the year this began because it happened before a flood came and nearly wiped out the planet aeons ago.

I am Chumbawamba.

Thu, 01/30/2014 - 21:50 | 4386293 knukles
knukles's picture

Thank you.

F-ing amazing how many people have no idea of singularity of lore, myth and reality

Fri, 01/31/2014 - 02:08 | 4386956 Rock On Roger
Rock On Roger's picture

As above, so below.


Stack On

Thu, 01/30/2014 - 22:56 | 4386508 The Gooch
The Gooch's picture


I'll be sure to extrapolate CNBS (on the FED) to how Ben and Janet are centuries removed money-changing cousins next time. 


Thu, 01/30/2014 - 21:33 | 4386249 vulcanraven
vulcanraven's picture

Speaking of 1913...

Picking up a 1913 British Sovereign this weekend.

It's a symbolic thing really, owning a gold coin from the year the Fed was birthed. Every gold bug should have one.

Thu, 01/30/2014 - 22:55 | 4386510 Tod E. Tosspot
Tod E. Tosspot's picture

Ah, the gold coin. At first I thought you were gonna romance the Queen.

Thu, 01/30/2014 - 23:21 | 4386572 vulcanraven
vulcanraven's picture

Romancing the Queen of England....

I liken it to sticking your dick into a warm bucket of chum, imagine the smell in that room after a few hundred pumps

Fri, 01/31/2014 - 06:29 | 4387120 Quinvarius
Quinvarius's picture

A few hundred?  You are making love not butter.  The fire of your passion must burn quickly and selfishly.  The queen is responsible for her own orgasms.

Thu, 01/30/2014 - 23:51 | 4386682 steelrules
steelrules's picture

Make sure you have a 1911 to protect you 1913's.

Fri, 01/31/2014 - 06:34 | 4387122 Winston Churchill
Winston Churchill's picture

I have several.

If youre interested .I can dig one up.

Thu, 01/30/2014 - 21:17 | 4386193 chumbawamba
chumbawamba's picture

You stupid fag, don't bring that shit here.  Either post something witty or relevant or go take it to Turd's or some other gay blog.

I am Chumbawamba.

Thu, 01/30/2014 - 21:20 | 4386211 AlaricBalth
AlaricBalth's picture

Amen Chumba
You would think that after being here 48 weeks someone would
learn something.

Thu, 01/30/2014 - 21:30 | 4386240 satoshi911
satoshi911's picture

Anybody that lasts more than 4 weeks here is either a ZH bot, or a Tyler.

Funny that the tylers are bashing their own bots, ... must be a slow day

Thu, 01/30/2014 - 21:37 | 4386258 AlaricBalth
AlaricBalth's picture

You are correct. I am Tyler Durden.

Thu, 01/30/2014 - 21:41 | 4386269 satoshi911
satoshi911's picture

Then you work for goldman sachs? Or are you just a wannabe?

Thu, 01/30/2014 - 22:10 | 4386354 Pure Evil
Pure Evil's picture

Nobody likes you even after 4 days.

Thu, 01/30/2014 - 23:40 | 4386632 Hulk
Hulk's picture

Why ? Was he supposed to smell better after 4 days ???

Fri, 01/31/2014 - 00:45 | 4386828 A Nanny Moose
A Nanny Moose's picture

Do zombies smell?

Thu, 01/30/2014 - 22:44 | 4386476 Hooter Shaker
Hooter Shaker's picture

Are you a junk collector?

Thu, 01/30/2014 - 23:06 | 4386542 Trucker Glock
Trucker Glock's picture

Hahaha.  Nice.

He and fonestar, Sanford & Son.

Fri, 01/31/2014 - 00:57 | 4386849 A Nanny Moose
A Nanny Moose's picture

This is the big one!!!

Fri, 01/31/2014 - 00:25 | 4386778 prains
prains's picture

Satoshi is a chicom bot sitting in cubicle 911, don't sweat it

Fri, 01/31/2014 - 01:33 | 4386922 ultimate warrior
ultimate warrior's picture

I am Tyler Durden

Fri, 01/31/2014 - 00:27 | 4386786 Money Squid
Money Squid's picture

"Review our notice on Racial Discrimination."

I guess homophobia and hate are ok then

Fri, 01/31/2014 - 01:01 | 4386860 chumbawamba
chumbawamba's picture

Yeah.  Because fags aren't a race.

I am Chumbawamba.

Fri, 01/31/2014 - 02:28 | 4386965 Money Squid
Money Squid's picture

it only takes a few to ruin a once decent site

Fri, 01/31/2014 - 07:05 | 4387144 Squid-puppets a...
Squid-puppets a-go-go's picture

sorry chumba, yer intellectually outgunned. Steve Hughes has the final word on this topic. Period.

Thu, 01/30/2014 - 22:42 | 4386471 Mr Pink
Mr Pink's picture

Yahoo headline, "Stock Rallies From Facebook"

May God have mercy on our souls

Fri, 01/31/2014 - 01:06 | 4386874 disabledvet
disabledvet's picture

"Facehugger." Once it lashes on you're nothing but a host for its diabolical plan. Surprisingly true actually.

Nothing "good" makes money.
"Behind all great wealth is a great crime."

And this one...QE...bailouts..."moral hazard"...may have been the greatest crime of all.

"Satan's biggest victory was convincing the world he did not exist."

There is the appearance that everything is being paid for.
But what we really seem to have discovered is that The Lord of the Rings was "real"....that the Fed really is "the one ring to rule them all."

It is ironic that Congress created the Fed because after the knickerbocker crisis (almost IDENTICAL to the crisis in 2008) because "JP Morgan was too powerful." (was it because he was too popular though? That recession was over in less than a year.) It's ironic because "isn't the Fed itself too powerful now?"

What is the purpose of elections?
What is the reason for holding title to property?
Why do we have Government?
If we wanted something better could we get it?

I understand "get with the modern Age. The Internet, etc...didn't exist in 1789." But what did exist was a theory that in places called "territories" one truly could...over a vast expanse and at great free.

We simply aren't allowed to organize our affairs anymore.
Everything being done now feels like "orders from above"...or else.

Again, I'm just exhausted by it all...
The idea of suburbia killed America.
We never needed that car, that television, that "wife."
The whole thing hasn't just completely failed...the whole has been a fraud..."monetized so that credit could continue to flow to its rightful owner"...the Banks.

The irony being they don't even originate the loans anymore!
This really is "the Wizard of Oz" and the Man Behind the Curtain.

We've exchanged an Iron Curtain and a "Berlin Wall" for printed currency and a War on a Concept.
Where does the contract...ANY contract...between two parties fit in? You know..the "none of your business" law...?
Everything is now in the Public (pubic?) Domain. None of us have "our own business" anymore. We have "hope scholarships" and "Affordable Care" (tm)...lasers in Space...a war effort in place (Just in Case)...

But all we really Fear.
This is not an environment conducive for building a free society.
Failure must be allowed to happen.
And I'm not talking "personal failure"...I'm talking the trillions that need not be spent in order to create a "modeled reality" or "gamed system."

It's not a question of this not being sustainable (maybe in fact it is?)...but that we're all being forced to become a bunch of Osama Bin Ladens in caves, terrified of our own existence.

How is this in any way "free"...or even "legal"????!!!!

Fri, 01/31/2014 - 01:40 | 4386929 Spanky
Spanky's picture


For... a good rant.

Fri, 01/31/2014 - 07:35 | 4387180 new game
new game's picture

once you get to know one of the "fucks", then you will understand.

they are wired to make you their "tool" for life.

resist, make you own trail and go get "lost".

Thu, 01/30/2014 - 21:17 | 4386198 RaceToTheBottom
RaceToTheBottom's picture

The only way to win the game is not to play.

Buy gold, the anti FED

Thu, 01/30/2014 - 21:25 | 4386224 The Gooch
The Gooch's picture

Brass, too.

Just in case.

Thu, 01/30/2014 - 22:29 | 4386420 chumbawamba
chumbawamba's picture

WTF are we going to do with trumpets in an economic collapse?  Use them to herald in the imminently forthcoming chaos, death and destruction?

I am Chumbawamba.

Thu, 01/30/2014 - 22:39 | 4386461 The Gooch
The Gooch's picture

Make music.



Thu, 01/30/2014 - 23:20 | 4386579 Wahooo
Wahooo's picture

Hell yeah, gotta have music always. And rapid-fire music, too.

Fri, 01/31/2014 - 02:13 | 4386959 Rock On Roger
Rock On Roger's picture

You need percussion with that tune.


Stack On

Fri, 01/31/2014 - 07:16 | 4387139 GetZeeGold
GetZeeGold's picture



WTF are we going to do with trumpets in an economic collapse?


They will pound their trumpets into 22LR......and there will be a line around the corner of Walmart to buy it.


Welcome to Hope and ChangeTM.

Fri, 01/31/2014 - 07:37 | 4387184 new game
new game's picture

the band played as the ship sank...

Fri, 01/31/2014 - 10:08 | 4387534 jerry_theking_lawler
jerry_theking_lawler's picture

oh, I am always looking for someone to make music with my skin flute....or in my specific case, a skin piccolo.

Thu, 01/30/2014 - 21:34 | 4386252 satoshi911
satoshi911's picture

MSM has now gone FULL RETARD to KILL the FED.

Must be ready for YELLEN to start the narrative of the coming IMF-SDR.

Goldman Sachs must be salivating like Pavlovs Dog.


USD is not real power for Goldman Sack's, they want to control the world, and have a one world currency.

They want to electronic currency, to control micro-payments everywhere on earth to control and monitor all consumption.


"KILL THE FED", is just "LIKE PUMP the BITCOIN", ... both programs brought to you by the NSA/CIA, and originated on the 'fringe' ( libertarian ), and then sold to the mainstream.

Thu, 01/30/2014 - 21:54 | 4386307 knukles
knukles's picture

Don't forget reports of a mere month or so ago, that Goldilocks and Morgue are net long the shiny in their very own little house accounts.

Thu, 01/30/2014 - 22:38 | 4386460 john39
john39's picture

Indeed. Anyone have any idea how much physical gold the banker clans have stolen? I will hazard one guess, more than the gold (that used to be) stored in Fort Knox.

Fri, 01/31/2014 - 01:10 | 4386880 cynicalskeptic
cynicalskeptic's picture

There were reports that it was gone in 1974 - Nelson Rockefeller's secretary, the alleged source of these reports - committed suicide.  There are later rumors of tungsten bars coated with gold replacing the bars in Ft. Knox and apparently used elsewhere as well, leading to issues a few years back when some surfaced in deliveries to China.

However, there WAS plenty of gold in the basement of the NY Fed on Maiden Lane in the mid 80's, stacked nicely in the cages labeled for individual governments.  Many still had the Eagle and Swastika of the Reichsbank stamped on them - from when Hitler grabbed much of Europe's gold.  Bars are stamped with both smelter info and the 'owner's mark'.  I doubt they would have gone to the trouble of faking all those markings at that point.  Sure looked legit to me.  I worked for the NY Fed back then - and was IN the vault on E level regularly.  Gold was not a particularly big thing back then - a lot was stored in the vault and moved around now and then when nations needed to balance out payments.  CASH was what mattered and what was the focus of operations - and we sent out pallet loads of $US on a regular basis for overseas shipments on top of the regular shipments serving the greater NY area.  Check processing was becoming more and more a matter of private processing with expectations of the Fed getting out of that business long term.   Cash volumes were huge and outgrowing NY - they built a new operations center in NJ and moved Currency processing there.  I expect they would have moved gold there too after 9/11 but can't say for sure - was long gone by then.

Who knows what's transpired since.....

The fact that Germany couldn't get their gold back right away - in one delivery effort - smells to high heaven.  If it was physically still there - and unencumbered - the Fed should have been able to load it up and ship it out inside of a few days. Not all that difficult logistically - armored cars and airplanes.   So.... why seven years and STILL a shortfall in the first year? 

Could also be that the US is playing the same game they played during WwII - back then they told everyone to 'trust us - we'll protect your gold and keep it safe'.  Sort of made sense in WWII and post war with the Soviet threat.  Made it easy to siumply transfer gold from cage to cage to settle accounts when payments were made in gold.  

BUT ULTIMATELY, it also meant that much of the free world's gold was IN POSSESSION of the US - on US territory, in US facilities.  Remember when you were a little kid - 'possession is 9/10's of the law':  I'm holding it so IT'S MINE

Could it be that the US KNOWS there's going to be a 'reset' and wants to keep as much physical gold around, under US control, as possible?  BUT if THAT were the case, all of what's transpired with the SUPPRESSION of gold prices - the London Pool and all else - makes NO SENSE because we've facilitated the OUTFLOW of gold from the West to China.

Personally, I suspect that NOBODY knows what the hell they're doing and are trying desperately to keep the charade of the $US going - with smoke and mirrors.  It's about appearances - not reality.  Management of Perspective.  All is well.  a recovery is underway... blah, blah, blah.....

Maybe they expect they can pull off some kind of electronic currency at the end of a gun and make gold and all hard assets obsolete.  But if the rest of the world thinks your currency is worthless.... it is.   I suspect we cut a deal with the Saudis a while back - they require $US for payments for oil and we defend them from outside agression (AND pay them under the table in gold for a part of OUR purchases).  Then the Saudis get conned into depositing their gold in London and are told they can make money 'leasing' it out.... perpetuating the ultimate Ponzi scheme.  So..  maybe US gold DID leave Ft. Knox - paid for oil - went to London - got 'leased out' to bullion banks as part fo the price suppression scheme - was bought by China who has it stashed in THEIR vaults now.  But the problem is the US grew its debt at an exponential rate to the point where it is unpayable - and close to the point where it cannot be increased further.  If the US can't keep increasing its debt, the game ends.   Forget about paying it off - that's impossible.

Fri, 01/31/2014 - 03:09 | 4387004 bigkahuna
bigkahuna's picture

Americans, we might have been fooled by the tungsten - well ok, ok - we are so fooled that we still have no clue alright! The rest of that gold is gone baby gone. Heck, they may have even "undone" the coating on the tungsten and sold that off for their hookers and crack too. Those bars are brass plated now --- who's gonna know!? We sure don't - and neither does anyone else apparantly. Well, the Germans found out, but they are keeping it on the low down in the hopes that they can get something back.

They never let anyone look - heck, that place is probably empty.

Fri, 01/31/2014 - 06:25 | 4387056 tip e. canoe
tip e. canoe's picture


Could it be that the US KNOWS there's going to be a 'reset' and wants to keep as much physical gold around, under US control, as possible?

perhaps keeping the gold is an atttempt to prolong the reset for as long as possible, until some other world-shattering event (like war for instance) gets in the way.

makes NO SENSE because we've facilitated the OUTFLOW of gold from the West to China.

perhaps they have a good idea (or think they do) how much gold is in strong hands and were willing to concede a certain amount of flow East to keep the Chinese happy.    the price (and more importantly, the volatility) is an attempt to manage the flow while managing expectations.  

not saying this has been an entirely successful operation, but it could have been/be the strategy.   Germany called their bluff, and the expectations management got a little bit more sticky.

If the US can't keep increasing its debt, the game ends.   Forget about paying it off - that's impossible.

if you look at all of FedGuv's actions (including the scripted dramas) through this lens, everything becoomes clear.

Fri, 01/31/2014 - 07:56 | 4387200 new game
new game's picture

+1, you are onto the orchestrated game plan.

keep saying the same statment since rates on mortages were north of 10.

going to japan rates as it is the only way it keeps going mathematically.

everything else is side shows of this reality, mainly just unintended consequences(hsg bubble).

the bond debt is truely the story. is it even a bubble?

Thu, 01/30/2014 - 22:03 | 4386331 The Gooch
The Gooch's picture

<--------SDR will die before it's born and Libertarians will once again lead the battle

<--------SDR will start up like O'care death panels and assholes will blame Libertarians for the next thing

Thu, 01/30/2014 - 22:32 | 4386429 chumbawamba
chumbawamba's picture

<-- SDR will be the new global currency

<-- BTC (or some other bankster contrived and controlled cryptocurrency) will be the new global currency

--> I am Chumbawamba

Thu, 01/30/2014 - 23:24 | 4386591 teslaberry
teslaberry's picture

and why not both. who says they are mutually exclusive you dubmass. 

Fri, 01/31/2014 - 00:50 | 4386837 chumbawamba
chumbawamba's picture

That was where I was going next, but since you ruined it, fuck you in the goat ass you fag.

I am Chumbawamba.

Fri, 01/31/2014 - 16:24 | 4389152 teslaberry
teslaberry's picture

you first. i've seen you on here for years already. your comments are consistently SHIT. 

Fri, 01/31/2014 - 04:50 | 4387068 satoshi911
satoshi911's picture


Good question, my laptop battery died earlier today, now I want to get back to this.

The IMF-SDR aka "special drawing rights" will be a currency issued by the IMF and drawn by country's and corporations (goldman-sachs

Bitcoin 2.0 will be used by the little people, my guess is that some time post 2016 when HILLARY has shown who is BOSS, that they will exchange your USD for BITCOIN 2.0, nope BTC2.0 will be nothing like you have now, but I think they'll stick with the name.

It's already here now Africa uses micro-payment, and asia people buy/sell everything with phone credit can be bought at phone shops on every corner, don't forget that unlike USA, in ASIA a SIM costs $1 or less and most guys with one SIM for every GF.


Let me just make clear, IMF-SDR is for BIG PEOPLE and BTC 2.0 is for little people, watch blade-runner the MOVIE if you don't understand little people and big people.


Fri, 01/31/2014 - 06:46 | 4387124 tip e. canoe
tip e. canoe's picture

someone posted this link a couple days back:

check out the 1st comment by highguy420 (love the name).   some excerpts (though it's worthwhile to read everything he wrote, it's way too long to post here):

The people will demand it.

The huge banks and governments will become the 51% mining pool (or 100% by decree), and will enforce all sorts of things to allow people to get redress through their government.

Imagine if you had a law saying your books always at every single moment had to be up to date and balanced or you don't get to use money. That you could never accept something you haven't paid for. That is the future of "one world currency" bitcoin... unless extra-protocol means of enforcing liabilities and debts are added... as demanded by its users and/or the users of various government entities.

Wrappers will be build around bitcoin and bitcoin will become the way that banks and money changers transmit value to each other. You and I will use our Visas and PayPals and no end user of "money" will need to understand what SHA-256 is.

maybe not Visas or Paypals, but SIM's for sure.

Thu, 01/30/2014 - 22:21 | 4386377 palmereldritch
palmereldritch's picture

I'm waiting for Ted Cruz to endorse Bitcoin.  That would be a lol tell.


Just one degree away

Thu, 01/30/2014 - 22:29 | 4386416 The Gooch
The Gooch's picture

His wife is vampire squid, kid.


Thu, 01/30/2014 - 22:41 | 4386462 john39
john39's picture

So is bit coin.

Thu, 01/30/2014 - 22:58 | 4386517 The Gooch
The Gooch's picture


Fri, 01/31/2014 - 00:36 | 4386652 palmereldritch
palmereldritch's picture

Thanks Dad for the update!!! CFR and don't forget, Ted graduated from this school!:

Cruz graduated cum laude from Princeton University with a Bachelor of Arts from the Woodrow Wilson School of Public and International Affairs in 1992 [emphasis mine]. :

 1975 -- A study titled, A New World Order, is published by the Center of International Studies, Woodrow Wilson School of Public and International Studies, Princeton University.

1975 -- In Congress, 32 Senators and 92 Representatives sign A Declaration of Interdependence, written by historian Henry Steele Commager. The Declaration states that:

"we must join with others to bring forth a new world order... Narrow notions of national sovereignty must not be permitted to curtail that obligation.

Plus real AMAZING analysis of the Anglo-American New World Homeland Agenda here:   @ 1:09 forward for the case on point....namely @ 1:11 - 1:12 !!

RE: Lionel George Curtis

But watch the whole awesome clip if you want to fully classify all the cephalopods!!!

Thu, 01/30/2014 - 23:01 | 4386528 Savyindallas
Savyindallas's picture

Cruz is a harvard educated phony  -chosen and groomed by the elites to fool the Tea Partiers. If you don't know this, you haven't really taken the time to figure out Cruz. 

Thu, 01/30/2014 - 23:03 | 4386536 Pure Evil
Pure Evil's picture

Anybody that trusts a politician all the way down to those that have to run for dog catcher, here yellen, good dog, deserve what they get.

Thu, 01/30/2014 - 23:48 | 4386663 palmereldritch
palmereldritch's picture

I think you might be right... But does Ted know?

Fri, 01/31/2014 - 00:21 | 4386764 satoshi911
satoshi911's picture

You shouldn't diss rePUGlican's here, Ron Paul, and Cruz are like God's.

I agree anybody that has ever worked for the gubmint FED->local, should be buried in an outhouse up his neck, and his  head covered with fire-ants and honey.


The only good politicians is a dead politician, to quote the Political joke about Vietnamese, inside of every politician is an asshole trying to get out.


Nobody get's NEAR MSM power, without PTB approval, nobody WIN's PUBLIC office in the USA for any post without PTB approval. Nobody is on TV without PTB approval.

Nobody lasts more than 2-4 weeks on ZH without PTB approval.


Fri, 01/31/2014 - 00:40 | 4386816 palmereldritch
palmereldritch's picture

Looks like you may have less than 10 days and

Thu, 01/30/2014 - 21:47 | 4386280 AL_SWEARENGEN

Don't leave out Silver either.  Or you might be filling up a tank of gas and handing over Gold.

Thu, 01/30/2014 - 21:21 | 4386215 Thing1Thing2
Thing1Thing2's picture

This is not going to end anytime soon.  The fed will crap on us until we get green sprouts.

Thu, 01/30/2014 - 21:26 | 4386222 NoDebt
NoDebt's picture

Yeah, but WHEN?  I submit it ends only when money-printing stops working and only accelerates the decline.  Japan goes first.

Thu, 01/30/2014 - 21:39 | 4386263 satoshi911
satoshi911's picture

HILLARY 2016 will be the timing.

Now they'll wear you out with 'obama fatigue'

But the MSM must sell the "WOMAN", and soon you will be told FINANCE has gone to hell cuz of MEN.

Then a solution will be offered, my guess is that Goldman-Sachs will put CHELSEA-CLINTON up as the 'HOPE & CHANGE", the future face of prosperous permanent currency.


Now is not the time, but NOBODY on earth, wants the USD, including the PTB in the US-GOVERNMENT.

A student of this shit should know that everything in the USA was stolen back in the 1980's and replaced with paper-iou's.

The reset is coming, ...



Right now its 'triangulation', fill the libertarians with shit (Bitcoin), tell WOMEN that they are the FUTURE, and let the bankers and RICH, offshore their loot, and then BANG, ... RESET.


Fri, 01/31/2014 - 00:03 | 4386710 hound dog vigilante
hound dog vigilante's picture


what do you do (job and/or drugs) that you have time in your day to sit around and dream up all this crazy shit?  


Fri, 01/31/2014 - 00:16 | 4386751 satoshi911
satoshi911's picture

I have a very large Harem,... but that's my night job, during the day I just enjoy life and rest and await my nightly duty's.


It's funny but when your in the SHIT, you can't smell or see the shit, but when your far away looking from the outside you can see ALL, the USA today is a nation of dead, and buzzards are circling for the final kill, and you can't see from the inside of the prison.


Fri, 01/31/2014 - 00:27 | 4386784 prains
prains's picture

satoshi made millions shaving pigs for the celebratory river float, it's all the rage in Bing Bong Pow Province

Thu, 01/30/2014 - 21:23 | 4386223 Oldwood
Oldwood's picture

Its like, if it is said often enough everyone will acknowledge it's truth and behave accordingly, but I think they know the truth and are behaving accordingly. Corruption, get it while it lasts!

Thu, 01/30/2014 - 21:25 | 4386225 DaveyJones
DaveyJones's picture

"who knows what value is" - well said Mr. Grant

Thu, 01/30/2014 - 21:31 | 4386241 PersonalRespons...
PersonalResponsibility's picture

Siddhartha Gautama

Thu, 01/30/2014 - 22:06 | 4386342 Spankrupt
Spankrupt's picture


Thu, 01/30/2014 - 22:45 | 4386484 Ranger4564
Ranger4564's picture

Amen... Omen... Om.

Thu, 01/30/2014 - 21:29 | 4386242 NoDebt
NoDebt's picture

It can be a bit difficult to measure value when the length of the yardstick keeps changing.

Thu, 01/30/2014 - 22:12 | 4386368 Pure Evil
Pure Evil's picture

Especially if the yardstick shrinks after being in the pool.

Thu, 01/30/2014 - 22:36 | 4386454 DaveyJones
DaveyJones's picture

so thats why we never went metric

Thu, 01/30/2014 - 21:46 | 4386246 OC Sure
OC Sure's picture

"who knows what value is"

But he said this in the context of "when interest rates are controlled to stay at zero." Remove the price control and value will reveal itself.

Thu, 01/30/2014 - 22:06 | 4386343 The Gooch
The Gooch's picture

The Art Of Motorcycle Maintenance.

Thu, 01/30/2014 - 22:15 | 4386379 OC Sure
OC Sure's picture

Zen, and the Art of Motorcycle Maintenance? Read it long time ago. Whats the correlation here?

Thu, 01/30/2014 - 23:11 | 4386540 Pure Evil
Thu, 01/30/2014 - 23:12 | 4386559 The Gooch
The Gooch's picture

Correlation = determining Quality.


Thu, 01/30/2014 - 23:22 | 4386580 OC Sure
OC Sure's picture

I see. Thanks.

Thu, 01/30/2014 - 23:24 | 4386587 OC Sure
OC Sure's picture

Darnt; wish I didn't click those links butt then again knowledge of all things is of all things...

Thu, 01/30/2014 - 23:31 | 4386603 The Gooch
Thu, 01/30/2014 - 23:59 | 4386700 OC Sure
OC Sure's picture

I dig it. ...but you are not going to cut me into litte pieces.

Thu, 01/30/2014 - 21:28 | 4386238 sunny
sunny's picture

Absolutely it will end.  Beyond a shadow of a doubt, sometime between tomorrow and Feb 13, 2045 there will be a collapse of the Fed and the fiat currencies of the world. 

I'm getting sick of folks predicting the end.  Don't tell me it will happen, show me.  If you ain't ready to give me a date certain, shutthefuckup.  If you do give me a date certain and it doesn't happen shutthefuckup.


Thu, 01/30/2014 - 21:31 | 4386244 NoDebt
NoDebt's picture

Would you settle for knowing where it will happen first?

Thu, 01/30/2014 - 21:45 | 4386278 sunny
sunny's picture

Maybe.  A simple Europe/Asia/South America/New York ain't gonna cut it in any case.


Thu, 01/30/2014 - 22:17 | 4386380 joego1
joego1's picture

How come people feel the need to print their alias atbthentop and the bottom of their posts?

Thu, 01/30/2014 - 22:28 | 4386418 NoDebt
NoDebt's picture

Then you will find this answer unsatisfying:  It's in the most obvious place possible.  Japan.  They're already in deep weeds and China is leaning on them until they fall over.

Thu, 01/30/2014 - 23:27 | 4386594 sunny
sunny's picture

That is as good a guess as anyone could come up with.  Folks have been predicting the imminent collapse of japan for at least 12 years because of their debt issues.  Now with China leaning on them, they just might fold.  Perhaps.  Perhaps not.


Fri, 01/31/2014 - 00:08 | 4386727 satoshi911
satoshi911's picture

Japan is cohesive and homogenous,

When it goes its going to go in INDIA, USA, ... where people all hate each other.

All the JAP's need is RESET and a hard-core nationalist leader. then BINGO

The USA, and INDIA, are both UK creations, and ergo will both return to the ashes.

Thu, 01/30/2014 - 22:36 | 4386451 Irene
Irene's picture

"Don't tell me it will happen, show me."

ZH is showing you - every fuckin' single day. You must be really stupid not to have figured that out yet.

Thu, 01/30/2014 - 23:20 | 4386578 sunny
sunny's picture

Yeah, but they've been showing me for the last 3+ years.  Did you notice that each year set a new market ATH.  Each year the 1% get richer and they rest of us slide harder and farther down.  THAT is the problem.  I don't doubt for a minute that the system is a total mess, run by ignorant, self servicing hypocrites.  The simple fact of the matter it hasn't crashed as so very many have predicted for so many years.  Are they assholes, yes, can the they keep the system running to their advantage seemingly forever irrespective of capable, honest people telling them it can't continue, yes.  I'll believe otherwise then the assholes go down in flames.  Until then statements like, "It's gonna crash big time, I just don't know when." tell us all absolutely nothing.  It's always "next quarter" or "by the end of the 3rd quarter".  It's getting old.


Thu, 01/30/2014 - 23:50 | 4386672 Irene
Irene's picture

The system has crashed, the rest is - literally - illusion. Empty economies, empty banks, empty vaults, empty pensions, etc.

And sunny, be careful what you wish for.  When the crash is unveiled for all to see, it's going to get very, very ugly very, very quickly.  I also wouldn't count on "the assholes go[ing] down in flames."  Bad people know how to survive.

Thu, 01/30/2014 - 22:39 | 4386457 homiegot
homiegot's picture

Well, that would ruin the surprise.

Thu, 01/30/2014 - 21:33 | 4386253 BiPolarFrenchman
BiPolarFrenchman's picture

It's Going Down, I'm Yelling Timber!

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