Critical Save Will Make Fiat Things Worse

It may come as a surprise to you that Jim Rogers belongs to the fraction that uses commen sense: Feeding funny money into failing major-league banks will only make the situation worse. More currency turmoil worldwide in the future gets the mob closer to the cliff of synthesis.

Jim Rogers on Russia Today

'They' pushing inflation?

I have a real problem with the idea that “They” have engineered things so that all of the wealth and power will wind up in the hands of the usual bunch of trilateralists /zionists /masters-of-the-universe/Goldman Sachs Directors, etc. In fact, much of the West’s wealth is simply going to vanish -- just as it has begun to do with the demise of Bear Stearns and other financial behemoths. The bondholders have been spared so far, mostly at taxpayers’ and shareholders’ expense, but I’m not so sure there’ll be much of a carcass left for the supposed cabal to feast on when the K-wave deflationary trough bottoms in perhaps another 6-8 years.

By then, the real wealth of the world will have shifted – organically – to Asia and the oil producers. And while they may revere gold in those places, I doubt they will feel compelled to tie their money to it. They won’t have to, since their currencies will be strong without the artificially induced buoyancy of global reserve status the dollar has enjoyed. Also, there will be no financial powerhouses in the world that emerges from the Second Great Depression, only economic powerhouses. Financial clout should be merely a side-effect of economic clout – a fact that Americans seem to have lost sight of long ago, so busy were we enjoying the benefits of our illusory, paper-thin prosperity. (by Rick Ackerman)

A tribute to B-52 Ben (HIIC)

Estrogen Man of the New Year and Head Inflatinator in Charge

The hyperinflated United Goldilocks Matrix

Inflation is over 11% and government expects us to believe we have the lowest inflation in 50 years. They are not even believable liars. If you remember our government and those on Wall Street and CNBC told us over and over that we had reached the bottom of the real estate market. Now they tell us we may have a little farther to go in what will be the worst correction since the 1930s. Our economy has an inflation problem and the only resilience we see is the result of massive amounts of money and credit being injected into the economy. That is the result of a 15% increase in money and credit and a wide open discount window. This is how economic growth is being manufactured and the result is hyperinflation. [...] The Fed doesn’t care about inflation - they just lie about it. They have abandoned the dollar, so we see a good chance of another ¼% rate cut on December 11th. [...] The financial blood will flow for sometime to come. Again, this is lots of ammunition for the Fed to lower rates. At 4-1/2% presently they could drop another point to 3-1/2%. Considering all the other problems we could see the dollar at 50 on the USDX. The credit crisis will last years, not months. [...] Nobody believes our government or Wall Street any more, and gold will now forge higher no matter what machinations the cartel throws at it. The pros can now see where this is all headed as the terrifying and inexorable march to financial oblivion continues unabated in the United Goldilocks Matrix, where some people are starting to wake up from their slumber in their cartel-created pods to a nightmare beyond their wildest imagination! Precious metals and their related assets are now the only place to be, so take your positions immediately or face utter financial annihilation.

~Bob Chapman, International Forecaster

Gold: Menace II fiat society

Gold’s catalyst on Friday was an impending sense of doom in US financial markets. “Forget what the Federal Reserve says about being neutral on policy and the news that the labour market grew at double the rate expected by economists in October,” writes Michael Mackenzie in the Financial Times. “What matters is the unwinding of the great credit trade. This is ensnaring more and more financial institutions and threatens to make life very difficult for policymakers as the risk of a dollar crisis looms.”

It seems to us the dollar’s been in crisis for about five years now. But maybe it’s become more acute lately. New lows on the greenback could equal US$1,000 gold. And it could happen faster than you can say “jingle bells”.

Source: Dailly Reckoning

The scariest Halloween costume

The story of Halloween goes back over 2000 years to the ancient Celts. Druidic priests regarded October 31st as the end of the year. Not only was it their day for celebrating the year’s harvest, but also a festival for honoring the dead. In order to appease the wandering spirits that they believed roamed at night, the Celtic priests made fires in which they burned sacrifices, made charms, and cast spells.
As they danced around the fires, the season of the sun passed and the season of darkness would begin. As Halloween 2007 approaches, traders in the global money markets are betting that Federal Reserve chief Ben “B-52” Bernanke will sacrifice the US dollar with another rate cut, in order to cast a magic spell over Wall Street.
But if “B-52” Ben delivers another big-bang, a half-point rate cut to 4.25%, it might unleash a cadre of evil spirits, ghosts, and demons that would haunt the US dollar to its graveyard.

~Gary Dorsch, Global Money Trends

...to be eliminated

"The only real reason for gold to go higher is if investors feel that it will hold its value better than other forms of money. For instance, if you lived in Zimbabwe today and were offered an ounce of gold or a brown paper bag of rapidly depreciating Zimbabwean dollars, what would you take? (Hint: take the gold; inflation in Zimbabwe is so bad that a roll of toilet paper now costs over $200,000.)
But the world doesn’t trade off the back of the Zimbabwean currency unit. That honor belongs to the U.S. dollar which, as you are no doubt aware, has evolved into the de facto reserve asset of virtually every central bank in the world today.
That the unbacked currency of one country is now the core holding of all the countries in the world is unprecedented in the history of the world.



[...] Monster chickens, the product of decades of proliferate spending, will eventually come home to roost on a shaky house of cards. The monetary crisis that will follow will eliminate the U.S. dollar as a serious competitor to gold… the only asset that has withstood the test of time as money. And we are not talking decades, but millennia." ~David Galland

Read the whole article: "Lessons from History: The Simple Path to Resource Riches" and say NO to U.S. Dollars and YES to real value, i.e., the gold and silver currency!