The Great Hyperinflationary Scavenger Hunt

Tyler Durden's picture

In case of 'Helicopter Ben' failure, we are again reminded that there is a Plan Z. Recall that none other than the Chairman said in 2002:

"Keynes ... once semi-seriously proposed, as an anti-deflationary measure, that the government fill bottles with currency and bury them in mine shafts to be dug up by the public."

Below, courtesy of William Banzai is an artist's impression of what said scavenger hunt would look like. Will there be an 'app' for that? Maybe AAPL's new 3D Maps will enable the national treasure hunt? Long Shovels.


Rather than re-post the entire speech (which can be found here and should be read if for nothing else but to comprehend the 'genius' as Cashin noted earlier), the following word-cloud summarizes how important The Bernank sees the avoidance of 'deflation'.

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Legolas's picture

Ahh, so this is why the American markets are going through the roof?

Cow's picture

Krugman suggests smaller shovels

Pladizow's picture

"All paper currencies are toilet paper, the dollar is simply two ply". - Thomas Caplin

narapoiddyslexia's picture

I'm lost. Isn't a stable nominal price structure that is maintained with ever-inflating dollars, mathematically identical to a price structure that is deflationary over time? The key idea is value, not the unit of currency. You can't fuck with value. So if Ben dilutes the dollar to keep prices stable, aren't real prices deflating anyway? What am I missing?

mkhs's picture

In inflation, everyone has alot of money so it is easier to steal a little. In deflation, there is little money so it is harder to steal a little.

Poor Grogman's picture

Comments like this is what makes ZH the best

Harlequin001's picture

Why bother to dig it up when it's falling from the sky?

It's like trying to open a confetti mine...

nugjuice's picture

You're missing that Bernanke is a liar.

But srlsy it's a lot easier to stealth tax people than to explain to some guy in Podunk that his wages are dropping 5% even though the goods he buys are 10% cheaper. We like to see numbers go up, not down dammit!

potlatch's picture

if we are talking about trying to stave off an inevitable spiral, though, then it makes sense, right?  It is this constant staving off of the various vicious spirals these very policies then heighten.  Tyhe staving then becomes its own vicious spiral.  We are all pure a spiral of staves right now.


Consult your astrologer on that one.

narapoiddyslexia's picture

A spiral of staves. I think it is explained. Thank you. 

The Big Ching-aso's picture



"Down here in the Bernanke Mines son, no one strikes it rich."

mick_richfield's picture

We all float down here.

You'll float, too.

potlatch's picture

The Downfall parody posted here a few days ago was brilliant: "use it as papier mache, use it to wipe your ass, i don't care."  it was one of best downfall parodies ever, even beyond thinking about the issues on this site.  it just was well done period.

Pool Shark's picture



To paraphrase Warren Buffet:

A Federal Reserve Note, he says, “gets dug out of the ground in Africa or some place. Then we dig another hole, transport it halfway round the world, then bury it in a bank vault and pay people to stand around guarding it”. It has, he argues, “no utility”.


The Big Ching-aso's picture



The dissheveled public digging for buried bottles of fiat sounds so........ well so...............barbaric.

RiverRoad's picture

Maybe deflation is about returning to the mean which is the natural order of things when they've become too skewed.  Are Bernanke et al the new Captain Ahabs determined to take us all to the bottom of the sea with them?!

Poor Grogman's picture

That is the whole point of C/Bs buying gold.


If it was circulating freely as money then Warrens comment would not make any sense at all, even to the dumbest sheeple.

The CBs hoarding gold serves them well. I can't wait till the vaults are opened and the stash is divided among it's Rightful owners.

The people (golds true owners) could use some real money at the moment what use is it to the CBs anyhow?

The.Oracle's picture

Lol, that's some funny shit +1

Acorn10012's picture

Krugman has a small shovel

WaterWings's picture

It's rigged. The Bernank and Buffet are going by helicopter.

ACP's picture

Forgot the captions:

Peasant #1: Who's he?

Peasant #2: Must be a King.

Peasant #1: Why?

Peasant #2: He hasn't got shit all over him!

The Big Ching-aso's picture



"Hey Bob!   Look!   Another sparklett bottle fulla $100 bills!"

"Right on, brother.   I've only been finding cokes.  What are you gonna do with it?"

"Well, phuck the daily rent due.    I'm gonna splurge and take the family to McDonald's and then maybe a movie."

"Alright man.  Enjoy.   See ya back here tomorrow."





Likstane's picture

That extra 3 seconds is paying off!

msamour's picture

Great Monthy Python reference!

slaughterer's picture

Oh no. I think I know what Bernanke is going to do.  It is right in the middle of that lecture Tyler linked us to, and which Cashin is studying:

"The Fed can inject money into the economy in still other ways. For example, the Fed has the authority to buy foreign government debt.... Potentially, this class of assets offers huge scope for Fed operations, as the quantity of foreign assets eligible for purchase by the Fed is several times the stock of U.S. government debt."

Oh no.  

Greater Fool's picture

What do you mean "going to do?" If it's in a speech and it requires no new authority, you can bet it's been done already. All this does is clear the way for it to be done obviously.

potlatch's picture

I keep hearing Scott Joplin's "The Entertainer" playing in my head all.  day.   long.  every.  day.


The Euro was designed to collapse, to fool the Red Chinee to think the West was dividing into two competing currencies.



Get ready for the Eur-ar, or the Doll-o.  Or "SmartDollar," the easy, non-transferable money substitute, conveniently subdermally implanted at birth thanks to teh Goldman Sachs Childrens Fund free of charge from teh Goldman Sachs.

RazvanM's picture

What if the big B prints a shitload of $$$, buys all the foreign stuff and then yells: "fuck you bitchezz, I saved your ass, you can call me God!".


Neah, this is like a C-movie line. Is not realistic.

potlatch's picture

Yeah.  it's not like America has any deep cultural notion of coming to the rescue of Europe to save it from self-collapse and to restablish order through a complex system of bonds called the MArshall Plan which essentail established the dollar as the de facto European currency of peggage.


I mean I'm kidding lol.  But that it eve sounds like a C-movie !!!


Or look at it this way.  We wanted Germany to run the rebuilding all along, but the Russians were in the way.  Now the Russians are gone.  So now we can do over.  the way we said we wanted it.  bitches.

battle axe's picture

And the insanity continues.....

Zero Govt's picture

wouldn't tax credits be simpler?

..i don't think bubble-brain Ben has thought this through much

DoChenRollingBearing's picture

Everyone should have 5% or preferably MORE of their wealth in GOLD!  Best single diversification in town if you do not own any.  Even mainstream money managers go along with 5% in gold, yet only 1% - 3% own ANY non-jewelry gold.

Matlock's picture

Exactly. Now, I know I'm just a little ole lawyer in Fulton County...

but golly, how about we make gold a currency (again)? Heck, it's already buried!

Ricky Bobby's picture

I believe in diversification. I have gold and silver!

ArrestBobRubin's picture

Anything short of 40% Au is for pussies :-)

Bear in mind 40% keeps keep you 60% in paper. You good with that?


Pladizow's picture

And if my other 60% is in land, real estate and silver?

ArrestBobRubin's picture

Well in that case.... how 'bout a partnership? :-)

AGuy's picture

That may not work unless you can back it up with lead and smokeless powder.

DoChenRollingBearing's picture

@ Arrest

I am at 14%.  If gold quintuples or does a FOFOA ($55,000), then I am VERY well protected.  Gold will be a wealth MULTIPLIER..., do the math!

CompassionateFascist's picture

After System Collapse, gold/silver won't be denominatable in dollars. I think, for instance, one US silver eagle will buy 2-3 days worth of food at a green market or 2-3 boxes of common-calibre ammo. That's if you and your friends are well-armed and organized. If not, those who are will kill you and take your PMs. 

Sweet Chicken's picture

What's wrong with the people who owns dozens of ounces in jewelry gold? All it means it's eith .58 or .750 gold generally speaking of course.

kekekekekekeke's picture

yes, it's much more subtle too if you have to sell/barter it

DoChenRollingBearing's picture

+ 1 to both.  Yes and yes.  Holding larger than normal jewelry gold is perfectly OK.  I just prefer the bullion coins.