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Bernanke Unleashes The Path To New All Time Highs In Precious Metals
There was one thing, ONE THING only that Bernanke could do, to become a gold bug's best friend today, than merely announcing QE 3/4. It was to announce open-ended QE. This means this is the Fed's final shot and there is no way to frontrun the Fed any more by definition. It means the terminal start of currency debasement is now here. It also means that the path to all time nominal (and inflation adjusted) highs in gold, which is now just $160 away, silver, platinum, and all other metals, as well as all other hard assets is now clear. It also means that very soon stocks are about to realize what soaring "input costs" mean for the bottom line.
Thank you Chairsatan: you are truly a gold bug's bestest friend!
and in case you were wondering, Silver is now equal YTD with the NASDAQ and Gold is catching up to the S&P...
Charts: Bloomberg
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So, if you have an opportunity (you may be too late), you should maximize borrowing at the lowest interest rate possible, use that money to buy gold and platinum, then pay back the loan, over time, with the profits of your PM sales in devalued dollars. Looks like all those borrowers over the last 10 years may come out of this pretty well, at least if they bought gold and hoarded it until now.
INCREDIBLY AWESOME, KILLER IDEA!!!! I'm glad I wasn't the only one who thought of it. I borrowed $8K at 1.3% and $5K at 1.7%. Bought physical as they were consolidating and more shares of the miners/explorers while the rest of the market kept shooting skyward... Today was short term satisfaction. Long term? Beans and bullets, baby!!
The bernank played a good game and stalled and bluffed as long as he could. A full year's worth of razzle dazzle. Weak hands got screwed. Now it's STFU and print. He has no choice and never did. If it wasn't announced now, it was going to be when the fiscal cliff hit.
Playing Monopoly with Federal Reserve notes was always my childhood dream.
The "terminal start of currency debasement" was on Dec. 23, 1913.
Here goes the long march down the path to toilet paper currency! Everyone who said (and I'm thinking Chris Martenson here) they will end up printing, well, because that's what we've done historically, ever, single, mother, fucking, time was proven correct! Grab something real (and perhaps shiny too) and hold on tiiiiiigghhttt!
I'm bullish on FRN toilet roll.
Ben is my hero! :-)
I did not have sex with that monster box................................ Oh.
Wait.
I did so.
With wild abandon, prior to abandoning ship.
Fuck that captain going down with the ship shit.
Try saing that three times Benny, you Wizard Of Id - iot.
Keep Stackin!
There's another salutary effect for some businesses. Heavily indebted companies, like, say, MGM, will be able to pay off their debts in inflated currency. As hyperinflation sets in, even modestly, they'll raise prices to compensate. That will mean that they pay off their hyper-indebtedness in hyper-inflated dollars. Also, our worldwide debt will be similarly paid off in inflated currency. Look for a really pissed off China, and maybe a war. They've been started for a lot less.