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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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Tue, 06/12/2012 - 15:47 | 2519177 Legolas
Legolas's picture

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

Tue, 06/12/2012 - 15:52 | 2519198 A L I E N
A L I E N's picture

how fast can you dig?

Tue, 06/12/2012 - 15:55 | 2519218 Cow
Cow's picture

Krugman suggests smaller shovels

Tue, 06/12/2012 - 15:58 | 2519232 Pladizow
Pladizow's picture

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

Tue, 06/12/2012 - 16:40 | 2519459 narapoiddyslexia
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?

Tue, 06/12/2012 - 16:52 | 2519505 mkhs
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.

Tue, 06/12/2012 - 20:37 | 2520044 Poor Grogman
Poor Grogman's picture

Comments like this is what makes ZH the best

Tue, 06/12/2012 - 22:07 | 2520175 Harlequin001
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...

Tue, 06/12/2012 - 16:52 | 2519507 nugjuice
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!

Tue, 06/12/2012 - 16:52 | 2519510 potlatch
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.

Tue, 06/12/2012 - 17:33 | 2519632 narapoiddyslexia
narapoiddyslexia's picture

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

Tue, 06/12/2012 - 17:56 | 2519702 The Big Ching-aso
The Big Ching-aso's picture



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

Tue, 06/12/2012 - 20:49 | 2520065 mick_richfield
mick_richfield's picture

We all float down here.

You'll float, too.

Tue, 06/12/2012 - 16:49 | 2519497 potlatch
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.

Tue, 06/12/2012 - 16:08 | 2519293 Pool Shark
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”.


Tue, 06/12/2012 - 16:20 | 2519344 The Big Ching-aso
The Big Ching-aso's picture



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

Tue, 06/12/2012 - 16:20 | 2519372 RiverRoad
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?!

Tue, 06/12/2012 - 17:01 | 2519528 Al Gorerhythm
Al Gorerhythm's picture

Did they have to blow up a glacier to get to it? Maybe the world?


Tue, 06/12/2012 - 20:47 | 2520062 Poor Grogman
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?

Tue, 06/12/2012 - 16:20 | 2519373 The.Oracle
The.Oracle's picture

Lol, that's some funny shit +1

Tue, 06/12/2012 - 21:22 | 2520111 Acorn10012
Acorn10012's picture

Krugman has a small shovel

Tue, 06/12/2012 - 15:56 | 2519225 MiguelitoRaton
MiguelitoRaton's picture

Geo-Cashing? Sweet!

Tue, 06/12/2012 - 16:56 | 2519519 Doubleguns
Doubleguns's picture

My thoughts exactly.

Tue, 06/12/2012 - 18:41 | 2519820 WaterWings
WaterWings's picture

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

Tue, 06/12/2012 - 16:18 | 2519362 ACP
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!

Tue, 06/12/2012 - 16:48 | 2519424 The Big Ching-aso
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."





Tue, 06/12/2012 - 17:43 | 2519671 Likstane
Likstane's picture

That extra 3 seconds is paying off!

Tue, 06/12/2012 - 19:36 | 2519947 msamour
msamour's picture

Great Monthy Python reference!

Wed, 06/13/2012 - 00:05 | 2520405 A Nanny Moose
A Nanny Moose's picture

Depends. Is the gun loaded?

Tue, 06/12/2012 - 15:58 | 2519228 slaughterer
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.  

Tue, 06/12/2012 - 16:11 | 2519314 Greater Fool
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.

Tue, 06/12/2012 - 16:44 | 2519476 potlatch
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.

Tue, 06/12/2012 - 17:51 | 2519690 RazvanM
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.

Tue, 06/12/2012 - 21:46 | 2520145 potlatch
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.

Tue, 06/12/2012 - 15:47 | 2519178 battle axe
battle axe's picture

And the insanity continues.....

Tue, 06/12/2012 - 15:53 | 2519205 A L I E N
A L I E N's picture

long bottle makers

Tue, 06/12/2012 - 17:31 | 2519628 Zero Govt
Zero Govt's picture

wouldn't tax credits be simpler?

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

Tue, 06/12/2012 - 15:48 | 2519179 DoChenRollingBearing
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.

Tue, 06/12/2012 - 15:55 | 2519219 Matlock
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!

Tue, 06/12/2012 - 19:18 | 2519898 Ricky Bobby
Ricky Bobby's picture

I believe in diversification. I have gold and silver!

Tue, 06/12/2012 - 15:58 | 2519231 ArrestBobRubin
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?


Tue, 06/12/2012 - 16:00 | 2519238 Pladizow
Pladizow's picture

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

Tue, 06/12/2012 - 16:19 | 2519369 ArrestBobRubin
ArrestBobRubin's picture

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

Tue, 06/12/2012 - 17:31 | 2519625 AGuy
AGuy's picture

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

Tue, 06/12/2012 - 18:22 | 2519774 DoChenRollingBearing
DoChenRollingBearing's picture

Yes, + 1

Tue, 06/12/2012 - 18:20 | 2519765 DoChenRollingBearing
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!

Wed, 06/13/2012 - 04:16 | 2520655 CompassionateFascist
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. 

Tue, 06/12/2012 - 16:05 | 2519271 Sweet Chicken
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.

Tue, 06/12/2012 - 16:21 | 2519378 kekekekekekeke
kekekekekekeke's picture

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

Tue, 06/12/2012 - 18:21 | 2519769 DoChenRollingBearing
DoChenRollingBearing's picture

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

Tue, 06/12/2012 - 16:24 | 2519388 kekekekekekeke
kekekekekekeke's picture

funny how that was mainstream advice for years and now having any non-jewelry gold (or even too much gold jewelry) is totally wacky or for foreigners.

Tue, 06/12/2012 - 23:38 | 2520340 Shibumi2
Shibumi2's picture

I've heard this 5% number before and it makes absolutely NO SENSE.


If one believes that GOLD and SILVER are, in fact, preservers of VALUE. then one should convert ALL HOLDINGS not needed for daily living expenses or market speculation(s) into PM's.


If one subscribes to the barberous relic argument, it would be stupid to convert ANY fiat into PM's.


I look at it like playing poker. The chips are like fiat used to play the game, but at the end of the night, chips are traded in for value.

Tue, 06/12/2012 - 15:49 | 2519185 Gene Parmesan
Gene Parmesan's picture

That picture is priceless.

Tue, 06/12/2012 - 16:24 | 2519389 RiverRoad
RiverRoad's picture

Would make a great B flick.

Tue, 06/12/2012 - 16:35 | 2519435 williambanzai7
williambanzai7's picture

The irony is I'm pretty sure that is a silver mine.

Tue, 06/12/2012 - 15:49 | 2519189 PSEUDOLOGOI

Great... so keep eveyone busy mining for cash bottles and no one will demand/want/need to mine gold and/or silver...

problem solved.  move along, nothing to see here.

Tue, 06/12/2012 - 15:50 | 2519191 Manthong
Manthong's picture

Are they mining money in that picture or thowing piles of it into an unfillable pit?

Tue, 06/12/2012 - 15:59 | 2519236 pods
pods's picture

Trying to satisfy the beast with liquidity, that hole spewing smoke in the background is BofA.


Tue, 06/12/2012 - 16:02 | 2519252 Citxmech
Citxmech's picture

Both - It's a giant un-ending ponzi circle-jerk

Tue, 06/12/2012 - 16:42 | 2519474 AlamoJack
AlamoJack's picture

Uh, they're getting ready to build a fire dude. It's cold at the bottom

Tue, 06/12/2012 - 16:50 | 2519500 Dr. Engali
Dr. Engali's picture

Too funny. I don't visit The Onion enough.

Tue, 06/12/2012 - 15:53 | 2519196 dwdollar
dwdollar's picture

No doubt the banks would buy the rights to the mines before the end of the first day by paying off politicians and then set up corporations to dig it out by hiring workers at minimum wage to do so...

Tue, 06/12/2012 - 15:52 | 2519202 mayhem_korner
mayhem_korner's picture



I hear the Yucca Mountain fiat glows.

Tue, 06/12/2012 - 15:54 | 2519208 Mercury
Mercury's picture

Nice, but for the total Keynesian experiance you'd have to use just your spoons...

Tue, 06/12/2012 - 16:00 | 2519243 Unprepared
Unprepared's picture

... plastic ones

Tue, 06/12/2012 - 16:06 | 2519270 Joe Davola
Joe Davola's picture


Tue, 06/12/2012 - 16:05 | 2519262 Dr. Engali
Dr. Engali's picture

There is no spoon..

Tue, 06/12/2012 - 16:57 | 2519209 fuu
fuu's picture

Wordle rocks, Banzai rocks, The Bernank not so much.

Tue, 06/12/2012 - 15:54 | 2519210 AL_SWEARENGEN

The miners go digging for the cash, find Silver in the process, and start burning the cash for light to mine the Silver.

Tue, 06/12/2012 - 15:55 | 2519214 ArrestBobRubin
ArrestBobRubin's picture

+155 on the Dow. This is just too funny. ESF, PPT, Treasury, DEA: they all threw money at the "markets" today.

Happy days, here again. I for one am just so relieved.

Great pic William, as usual.

Tue, 06/12/2012 - 16:00 | 2519237 valley chick
valley chick's picture

I honestly must have missed the rumor today...why the rally?  Bad news is good news?

Tue, 06/12/2012 - 16:02 | 2519251 skepticCarl
skepticCarl's picture

News is noise.  At most, it is only one of many factors that spook the herd, both up and down the hill.

Tue, 06/12/2012 - 16:02 | 2519256 Cursive
Cursive's picture

@valley chick

LOL.  The NEWS?  From a technical perspective, 1305-1308 is heavy support, so it was time for a bounce.

Tue, 06/12/2012 - 16:08 | 2519288 valley chick
valley chick's picture

thanks skepticCarl and Cursive.  One heck of a bounce.  ;-)

Tue, 06/12/2012 - 16:17 | 2519358 ArrestBobRubin
ArrestBobRubin's picture

In the Brave New World, rallies are not required to send markets spiking.

Update your expectations accordingly inquisitive prole :-)

Tue, 06/12/2012 - 15:55 | 2519217 Cyrano de Bivouac
Cyrano de Bivouac's picture

There should be a picture of the B1 bomber fleet wherever it's parked. It's about the same thing.

Tue, 06/12/2012 - 16:04 | 2519222 Paul Atreides
Paul Atreides's picture

To defeat bankers nothing is more important than keeping your bank account empty.

Tue, 06/12/2012 - 16:12 | 2519323 johnQpublic
johnQpublic's picture

.....and investing in the 'spice'(silver)

Tue, 06/12/2012 - 16:39 | 2519456 potlatch
potlatch's picture

I'm on that like white on rice, chief ;)

Tue, 06/12/2012 - 16:45 | 2519480 AlamoJack
AlamoJack's picture

Yep, I'm on that like cattle on corn, cowgirl.

Tue, 06/12/2012 - 20:44 | 2520055 knukles
knukles's picture



I'm on that like amyl at the Bohemian Grove, Liberace

Tue, 06/12/2012 - 15:57 | 2519223 Dr. Engali
Dr. Engali's picture

I prefer the free money be dumped on me by helicopter. Mininig is too much like work. I'd have to get up from my chair ,giant slurpy ,and big mac.

Tue, 06/12/2012 - 15:59 | 2519235 t_kAyk
t_kAyk's picture

And you can't possibly be pulled away from your iPad and thingamajig... 

Tue, 06/12/2012 - 16:01 | 2519249 Dr. Engali
Dr. Engali's picture

I'll admit it is hard to keep my hands off my thingamajig too.

Tue, 06/12/2012 - 15:58 | 2519230 Unprepared
Unprepared's picture

I beg to differ. Since we are doing it, this is a more equitable and charitable way than what Ben is currently doing.

Long canaries.

Tue, 06/12/2012 - 15:59 | 2519240 SmoothCoolSmoke
SmoothCoolSmoke's picture

Buck Fernankie!

Tue, 06/12/2012 - 16:00 | 2519241 Stuart
Stuart's picture

In other words, own gold mining stocks.  God already buried the money.  We're just digging it up.

Tue, 06/12/2012 - 19:31 | 2519925 BidnessMan
BidnessMan's picture

Gold mining stocks are just more paper. To be debased with all other paper. No dividends, mines subject to confiscation, fat salaries and bonuses for insiders, Bre-X pump and dump all over again. If you are serious, take delivery of physical.

Tue, 06/12/2012 - 21:28 | 2520122 BooMushroom
BooMushroom's picture

Imagine if there was a mining stock that paid out a percentage of their metal as dividends to shareholders...

Tue, 06/12/2012 - 16:00 | 2519244 skepticCarl
skepticCarl's picture

Keynesians want to dig OPM out of the ground.  Austrians and Libertarians want to bury their own money in the ground. Ironically and surprisingly, the Keynesian approach will be followed for ever and ever, amen.

Tue, 06/12/2012 - 16:04 | 2519260 TwelfthVulture
TwelfthVulture's picture

Never mind.  I thought you said "Kenyan"

Tue, 06/12/2012 - 16:01 | 2519248 semperfi
semperfi's picture

Finally, a SHOVEL-READY JOB !  

Tue, 06/12/2012 - 16:03 | 2519258 TwelfthVulture
TwelfthVulture's picture

I went long shovels three years ago hoping they would be in big demand for all the "shovel ready jobs."  Alas, now I need a triple just to get back to break even.

Tue, 06/12/2012 - 16:04 | 2519263 monopoly
monopoly's picture

Man, between Tyler and William, wow, what a pair. Gotta luv it.

Tue, 06/12/2012 - 16:04 | 2519266 Bartanist
Bartanist's picture

In a way, I get it. Who is to say a shiney metal that people have no practical use for is any more valuable than some intrically printed paper?

I guess one can wipe one's ass with the paper, but it probably won't flush well.

Tue, 06/12/2012 - 16:05 | 2519267 carbonmutant
carbonmutant's picture

Beware of termites...

Tue, 06/12/2012 - 16:21 | 2519281 holdbuysell
holdbuysell's picture

As published on ZH: Weren't there a boat load of fake US bonds or similar (can't quite recall) found in Italy in some chest a few months back?

Maybe they weren't so fake after all?


Found the links on ZH:

Tue, 06/12/2012 - 16:10 | 2519305 SokPOTUS
SokPOTUS's picture

GeoCaching for Cash?

Tue, 06/12/2012 - 16:14 | 2519338 johnQpublic
johnQpublic's picture


Tue, 06/12/2012 - 16:35 | 2519430 q99x2
q99x2's picture

Guess the market was trying to squeeze the weak shorts (every 2 hours) today again.

Tue, 06/12/2012 - 16:35 | 2519434 Floodmaster
Floodmaster's picture

Just start a national lottery where everyone wins

Tue, 06/12/2012 - 16:38 | 2519449 potlatch
potlatch's picture

daily payouts, and everyone is included in a secondary run off for the big grand prize, the bill!

Tue, 06/12/2012 - 16:48 | 2519492 AlamoJack
AlamoJack's picture

They did. They call it Social Security.

Tue, 06/12/2012 - 16:39 | 2519458 MrBoompi
MrBoompi's picture

Deflation and an end to ZIRP would actually strengthen the dollar and help savers, so those are obviously horrible options for central bank.



Tue, 06/12/2012 - 16:42 | 2519464 unununium
unununium's picture

Bottles of cash.  New currency introduced in a random way by the public, based on "mining" work. That sounds familiar.


On the other hand, as long as USD are inside the bottles, it's an insult to a hard currency like Bitcoin.

Tue, 06/12/2012 - 16:41 | 2519469 Never One Roach
Never One Roach's picture

Sounds fishy to me.

Tue, 06/12/2012 - 16:46 | 2519486 Pairadimes
Pairadimes's picture

"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."


How far away from a functional grasp of the real world do you have to be in order that you do not burst out laughing when you say something like this out loud?

Tue, 06/12/2012 - 16:56 | 2519518 Dr. Engali
Dr. Engali's picture

I was digging for fiat the other day and I came across some unobtainium. Does anybody know where I can sell it? Is there a " we buy unobtainium " place around ?

Tue, 06/12/2012 - 17:08 | 2519555 EnglishMajor
EnglishMajor's picture

"Cash 4 Unobtainium"

The Marriner S. Eccles Federal Reserve Board Building, on Constitution Avenue between 20th and 21st Streets

Tue, 06/12/2012 - 17:34 | 2519638 Pairadimes
Pairadimes's picture

Are you sure it wasn't Administratium? You are much more likely to encounter that this day and age.


Tue, 06/12/2012 - 17:04 | 2519537 Dr. Gonzo
Dr. Gonzo's picture

That's funny as hell. Throw worthless paper money down exhausted old gold and silver mine shafts and let the downtroden occupy all their abundent free time hunting for govenrment monopoly money.  Of course they would never throw the hard curency back into the hole. They'd hate to let the proles get their hands on real money. They might find out they don't need their government masters if that ever happened.

Tue, 06/12/2012 - 17:06 | 2519540 TahoeBilly2012
TahoeBilly2012's picture

Correct me if I am wrong. Inflation is needed to create credit expansion, whereby bankers extract wealth. No inflation, then deflation and contracting credit (no wealth extraction through banking). Do I have this wrong? Self thinking, not quoting anyone.

Tue, 06/12/2012 - 17:28 | 2519616 el Gallinazo
el Gallinazo's picture

Debt and credit are two sides of the same coin.  99+% of apparent money is created by debt.  But the money to pay the interest on the debt is not created by debt.  So debt must constantly increase to create the new  "money" to pay the interest on the old debt.  When the expansion of debt stops, defaults occur and the whole Ponzi collapses.  That is why the Elites are now using governments to create new debt trying to stop the collapse, since business and consumers no longer can.  The US budget is twice the tax revenues.  The difference is new debt to pay the interest on the old private and government debt.

Tue, 06/12/2012 - 21:38 | 2520137 jimmyjames
jimmyjames's picture

Correct me if I am wrong. Inflation is needed to create credit expansion,


I think you have that backwards-

Credit expansion is needed to create inflation (increase in money and credit supply)

expanding credit "is" inflation-

Contracting credit is deflationary-

Asset values contracting below the high market value and especially below the financed debt level is deflation-

A decrease in personal/business money supply-

Tue, 06/12/2012 - 17:07 | 2519548 ilovefreedom
ilovefreedom's picture

Mommy, mommy, I found a trillion dollar bill!!!

Keep digging honey until you find one of those hundred trillion dollar bills.

Tue, 06/12/2012 - 17:09 | 2519562 TahoeBilly2012
TahoeBilly2012's picture

Yes, they were delving into managing the ecomomy like "carnies" would. Is that really that crazy an idea? People seem to live in the world much as at a carnival, why not let carnies run the show?

Tue, 06/12/2012 - 17:16 | 2519571 el Gallinazo
el Gallinazo's picture

As the Kingfish put it back in the Great Depression, "every man a king."  I see the problem is that conterfeiting has been legally restricted to banksters.  I think every American citizen should be permitted to go on the fractional reserve system.  For every dollar we have buried in the back yard, we should be permitted to Xerox 9 without penalty.  We could then use these Bankster Bux to make loans to our friends and neighbors.  That would solve the specter of deflation.  Every man a bankster!!  That's the ticket.

Tue, 06/12/2012 - 17:13 | 2519572 boiltherich
boiltherich's picture



U.S. Families' Wealth Plunges 40 Percent, Fed Says

By Eyder Peralta


In a study (pdf) released today, the Federal Reserve reports that Americans saw a record drop in their wealth between the years 2007 to 2010. Driven primarily by plummeting home values, families' median net worth dropped 38.8 percent, to levels last seen 18 years ago.

Reuters reports:

"The median net worth, which is the value of assets minus debt, plunged to $77.3 trillion in 2010 from $126.4 trillion in 2007. Net worth in 2010 was at levels last seen in 1992.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Plunging residential RE taking American household wealth with it is NOT inflation, if anything it is indicative of a deflationary depression. So all the bailouts and fiscal deficits to keep wealthy bankers happy and busy "investing" in stocks, commodities, and federal bonds is driving up food and fuel for the people that are already getting hammered in the wallet by loss of wealth and stagnant to falling wages.  We really do not need any further proof of this middle class holocaust, it is the greatest transfer of wealth upward in human history, even outstripping the greed of the Raygun years.

Tue, 06/12/2012 - 17:15 | 2519578 boiltherich
boiltherich's picture

By the way, if the fed says household wealth plunged 39% you can damned well bet it is closer to 60%.

Tue, 06/12/2012 - 19:45 | 2519962 Pairadimes
Pairadimes's picture

These are nominal figures. If they had been reported in real dollars, there would be sofas and tires burning in the streets.

Tue, 06/12/2012 - 17:29 | 2519614 SILVERGEDDON


Paper sucks, you Wall Street fucks! I'll see you vampires in the sun, with my loaded silver gun. Yer goin' down in flames, from Lower Manhattan to the Thames. Your paper is I know not where, I'd rather shit my underwear! For, be there bull, or be there bear, silver is the suit I wear! (With gratitude, and apologies to Dr. Seuss.)


The only paper I own is the stuff I wipe my ass with. Market paper is worthless, because I cannot do a good job of wiping my ass with it. Gold was worth $28.00 an ounce when I was a kid. Silver was worth whatever was printed on the coin you spent. Any one think those days are coming back? All of the lying bum fucking aristocracy of the Age Of Paper Power can burn in their paper suits soonest. I won't even bother pissing on them to put out the flames.
I collect gold, silver, lead, copper, real dry powder, food, tools, diesel fuel, and other useful commodities. There is a community of folks all doing the same, so skill sets and extra eyes and hands can guard each others sixes, and "break on through to the other side, break on through to the other side, YEAH
HFT ain't good for me. 

Credit defaults far as the eye can see.

CDS's gonna make some messes.
Boo hoo hoo as thieves confesses.

TBTF gonna fall off a cliff - REAL NEAT.

Wall Street is a bunch of fucking dead meat.


Banks used to be so overleveraged bold.

Now, they're layin' bankrupt,dead and cold.

Gonna be nothing but prepper people, all the rest gonna be surprised fucked up Sheeple. God bless this mess.

I must confess. I'm a fucking poet,


and didn't even know it.




Tue, 06/12/2012 - 17:31 | 2519629 VelvetHog
VelvetHog's picture

You ought to team up with WB and the Limmerick King.

Tue, 06/12/2012 - 17:39 | 2519656 Fix It Again Timmy
Fix It Again Timmy's picture

People generally are a good judge of value, that is, until it comes to MONEY........

Tue, 06/12/2012 - 17:45 | 2519675 Al Capowned
Al Capowned's picture

The comments on this site are a real hoot!

Tue, 06/12/2012 - 18:12 | 2519738 savagegoose
savagegoose's picture


even the thing to minew for is wrong what a dolt




Tue, 06/12/2012 - 18:47 | 2519829 Inspector Bird
Inspector Bird's picture

OK, just a semi-serious response to a semi-serious suggestion, but isn't putting gold in the earth God's way of running HIS 'fiat currency'?  LOL


I mean, really, if we go to a gold system, then mining gold becomes a viable 'game' to play.  The average guy essentially becomes an arm of the non-central 'central bank'.


So why shouldn't the central bank mimic this and begin operations? 

I know what the reality is.  But if you're 'all in' with fiat currency, it makes sense.

Tue, 06/12/2012 - 19:59 | 2519982 chump666
chump666's picture

"Plan Z"


Wed, 06/13/2012 - 06:17 | 2520723 celticgold
celticgold's picture

Plan , hahahahah

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