Dr. Bernanke is wrong.

[cashmcall]

This is a guy with perfect SAT scores. He's a genius by any measure we have. So how could a guy like me, a run of the mill Joe with half a brain argue with a full brained guy like Ben?

Because I have truth and history on my side. And one of those truths is rather simple. There is nobody willing to buy American debt or treasuries. Not on the scale we are selling. Think about this for a moment.

The US has to refinance 4 trillion dollars in debt this year. Who in the fuck has 4 extra trillion laying around to buy treasuries from a bankrupt government paying 2 or 3% interest? Who has 4 trillion period?

The answer- only China. And their purchases are going the other way. In fact- there is nobody other than the Fed to monetize our debt because here is the other simple truth.

We have more debt than the rest of the world can swallow even if they wanted to. That gap will only get larger. Remember- most of that world has debt issues of their own. And the first thing you do with your excess capital if you have any- is you have to use it on your own solvency. Except in the EU. There the member countries waste their money bailing out other countries like Greece, Spain, and Italy.

There is not a chance in hell that the Fed will quit monetizing the debt. They have to. If they don't- the US would suffer its first failed treasury auction and then the financial world would collapse. So they can talk all the crap they want to in their meetings to try and drive other currencies and metals into the ground. Pretend everything is hunky dory when it's not. We have a horrible, horrible problem and nobody wants to talk about it. The truth is, we are bankrupt. Completely insolvent with an absolute tsunami of Social Security, Medicare/Medicaid, Obamacare, a one trillion dollar student debt tidal wave, a few other debts, all coming due at the same time.

And nobody has enough money to lend us. So we are doing it ourselves.

What do we put up for collateral when people buy our debt? Nothing. The Fed has guaranteed payment only by promising the labor of U.S. citizens and their ability to tax and confiscate the proceeds of our labor. That is the Feds promise to the world. A signature loan.

So the lemmings who think that there is some shred of integrity left in the Fed and their statements about our "improving" economy are unloading positions tonight. Not me. This is the endgame. I know it and a few others know it.

I dare them to stop QE. Go ahead. Please. Our robust economy is about to ignite. They've been spouting that garbage for 5 years.

Unfortunately, the world's bankers are going to do everything within their power to survive and pretend that the inevitable cannot happen. It can and it will. It doesn't take a doctorate degree to understand that this has been the history of every great republic and fiat currency system since the dawn of time. They all fail. With or without men with perfect SAT scores.

I am as of today about 80% in cash....

 

[cashmcall]

Sorry about the language ... BUT I'm a little upset ................. they have to know what is happening..

 

[steveox]

Go to 9:40

 

[cashmcall]

Steve..I am speechless... you can't believe what I just watched...

 

[steveox]

I Said go to 9:40 and skip the rest! Watch and listen what Ben Bernanke said. Just ignore the rest!

 

[dogtowner]

best to ignore skinheads especially when they go all anti semite

 

[steveox]

The thing is Ben Bernanke is lying. He has stolen your money. That's what Glenn Beck said too. That's why Fox News should never fired him but nooooo the want THE FIVE when all I see is bickering and don't learn a damn thing.

 

[Gipper]

This is a guy with perfect SAT scores. He's a genius by any measure we have. So how could a guy like me, a run of the mill Joe with half a brain argue with a full brained guy like Ben?

Because I have truth and history on my side. And one of those truths is rather simple. There is nobody willing to buy American debt or treasuries. Not on the scale we are selling. Think about this for a moment.

The US has to refinance 4 trillion dollars in debt this year. Who in the fuck has 4 extra trillion laying around to buy treasuries from a bankrupt government paying 2 or 3% interest? Who has 4 trillion period?

The answer- only China. And their purchases are going the other way. In fact- there is nobody other than the Fed to monetize our debt because here is the other simple truth.

We have more debt than the rest of the world can swallow even if they wanted to. That gap will only get larger. Remember- most of that world has debt issues of their own. And the first thing you do with your excess capital if you have any- is you have to use it on your own solvency. Except in the EU. There the member countries waste their money bailing out other countries like Greece, Spain, and Italy.

There is not a chance in hell that the Fed will quit monetizing the debt. They have to. If they don't- the US would suffer its first failed treasury auction and then the financial world would collapse. So they can talk all the crap they want to in their meetings to try and drive other currencies and metals into the ground. Pretend everything is hunky dory when it's not. We have a horrible, horrible problem and nobody wants to talk about it. The truth is, we are bankrupt. Completely insolvent with an absolute tsunami of Social Security, Medicare/Medicaid, Obamacare, a one trillion dollar student debt tidal wave, a few other debts, all coming due at the same time.

And nobody has enough money to lend us. So we are doing it ourselves.

What do we put up for collateral when people buy our debt? Nothing. The Fed has guaranteed payment only by promising the labor of U.S. citizens and their ability to tax and confiscate the proceeds of our labor. That is the Feds promise to the world. A signature loan.

So the lemmings who think that there is some shred of integrity left in the Fed and their statements about our "improving" economy are unloading positions tonight. Not me. This is the endgame. I know it and a few others know it.

I dare them to stop QE. Go ahead. Please. Our robust economy is about to ignite. They've been spouting that garbage for 5 years.

Unfortunately, the world's bankers are going to do everything within their power to survive and pretend that the inevitable cannot happen. It can and it will. It doesn't take a doctorate degree to understand that this has been the history of every great republic and fiat currency system since the dawn of time. They all fail. With or without men with perfect SAT scores.

I am as of today about 80% in cash....

I agree...as soon as the Fed backs off on QE, the shit hits the fan. And that very intelligent doufus Helicopter Ben now claims the Fed will soon be backing off on QE. This is a disaster made and controlled by the elites...and they aren't that smart to manage the world's economy.

Look what the central bankers did to gold. They will stop at nothing to try and control this out of control debt spiral.

I just watched CNBC and some jerk off economist just said our economy is on the verge of a HUGE expansion that will continue for years. He said the bears are wrong and have been wrong for a long time. He said doufus Ben has done a GREAT job. Unbelievable.

I am still in the market, but going mostly cash with some metals, makes a lot of sense.

 

[Cruella]

I am still in the market, but going mostly cash with some metals, makes a lot of sense.

When they quit printing and super inflation hits, won't the dollar collapse?

 

[cashmcall]

When they quit printing and super inflation hits, won't the dollar collapse?

remember last week when I said watch Japan, I was right.. and now with just a hint that he might slow down stocks go lower...

 

[Gipper]

When they quit printing and super inflation hits, won't the dollar collapse?

Well it is anyone's guess what the future holds. Many believe that our government will ultimately default on it's debts. I don't see how it can avoid default. When that happens, the dollar will lose value, but it is very likely that everything will lose value. Some experts believe we are headed for inflation akin to Wiemar Germany. Yet some experts believe we are headed for a huge deflationary period, which would mean the dollar will hold value as all things become cheaper. So, where does one safely put their wealth? That is a good question that I wish I had an answer to.

 

[dogtowner]

When they quit printing and super inflation hits, won't the dollar collapse?

that may be the least of our problems but yes

 

[cashmcall]

Well it is anyone's guess what the future holds. Many believe that our government will ultimately default on it's debts. I don't see how it can avoid default. When that happens, the dollar will lose value, but it is very likely that everything will lose value. Some experts believe we are headed for inflation akin to Wiemar Germany. Yet some experts believe we are headed for a huge deflationary period, which would mean the dollar will hold value as all things become cheaper. So, where does one safely put their wealth? That is a good question that I wish I had an answer to.

You can NEVER predict the levels and lengths that these manipulators are willing to go to- to create an illusion of wealth. I can't even imagine what they will try in early 2014 when Ben disappears.
I KNOW THIS.. The market is up over 100% over the last 4 years. This CAN continue until such point that the FED finally believes its own bullshit. When they trick themselves into believing that our economy is good and that it can stand on it's own without intervention, that's when this will get interesting. They might actually try and stop QE. If they ever announce that QE is ending it will be too late for us. They will have already told their friends- the market will be inexplicably sideways or down even while QE continues- because their banker buddies will be quickly and quietly distributing shares to the suckers. By the time the ending of QE is announced- it will be too late for the small fry investors. Forget those FED meeting minutes. Pure theater and bull. The FED Governors know everyone in the free world makes investment decisions based on that tripe. What they really think will never be in those minutes.

If we ever want our Republic and free markets back- we must destroy the FED. Permanently. In the meantime- just sit back and watch this insanity.

 

[Gipper]

You can NEVER predict the levels and lengths that these manipulators are willing to go to- to create an illusion of wealth. I can't even imagine what they will try in early 2014 when Ben disappears.
I KNOW THIS.. The market is up over 100% over the last 4 years. This CAN continue until such point that the FED finally believes its own bullshit. When they trick themselves into believing that our economy is good and that it can stand on it's own without intervention, that's when this will get interesting. They might actually try and stop QE. If they ever announce that QE is ending it will be too late for us. They will have already told their friends- the market will be inexplicably sideways or down even while QE continues- because their banker buddies will be quickly and quietly distributing shares to the suckers. By the time the ending of QE is announced- it will be too late for the small fry investors. Forget those FED meeting minutes. Pure theater and bull. The FED Governors know everyone in the free world makes investment decisions based on that tripe. What they really think will never be in those minutes.

If we ever want our Republic and free markets back- we must destroy the FED. Permanently. In the meantime- just sit back and watch this insanity.

Yes...the levels of manipulation in the markets and corruption by the central bankers is unbelievable and it is frightening. You are so right about the elites being tipped off before disaster strikes. They get protection from the State, while the rest of us get it you know where.

Maybe when it all comes crashing down, Americans will wake up to the fraud that is the Fed and eliminate it. It is amazing how little Americans know about the Fed. Just the fact that it is controlled by the nation's largest banks, should have all Americans demanding it's termination. But since the large banks and government sleep together along with the largest corporations (a grotesque threesome...hah!), the fraud continues unabated.

 

[Gipper]

This explains it rather well...

The badly damaged process of wealth generation has severely impaired true economic growth, and obviously this has severely reduced good quality borrowers and subsequently has reduced banks willingness to lend. Remember that in essence banks actually lend real wealth by means of money. They are just intermediaries. Obviously then, if wealth formation is being impaired, less lending can be done. We suggest that it is this fact alone that explains why all the pumping by the Fed has ended up stacked in the banking system. So far in early May banks have been sitting on over $1.7 trillion in surplus cash. In January 2008 surplus cash stood at $2.4 billion.
Given the high likelihood that the process of real wealth generation has been severely damaged, this means that the pace of wealth generation must follow suit. Now, contrary to popular thinking an increase in government spending cannot revive the process of wealth generation, but on the contrary it can only make things much worse.
Remember government is not a wealth-generating entity, so in this sense increases in government spending generate the same damaging effect as monetary printing does; it leads to the diversion of wealth from wealth generators to wealth consumers. Observe that in 2012, US government outlays stood at $3.538 trillion, an increase of 98 percent from 2000.
As long as the rate of growth of the pool of real wealth stays positive, this can continue to sustain productive and nonproductive activities.
Trouble erupts, however, when, on account of loose monetary and fiscal policies, a structure of production emerges that ties up much more wealth than the amount it releases.
This excessive consumption relative to the production of wealth leads to a decline in the pool of wealth.
This in turn weakens the support for economic activities, resulting in the economy plunging into a slump. The shrinking pool of real wealth exposes the commonly accepted fallacy that loose monetary and fiscal policies can grow the economy.
Needless to say, once the economy falls into a recession because of a shrinking pool of real wealth, any government or central-bank attempts to revive the economy must fail.
This means that a policy such as lifting government outlays to counter the liquidity trap will make things much worse.
Not only will these attempts not revive the economy; they will deplete the pool of real wealth further, thereby prolonging the economic slump.
Likewise any policy that forces banks to expand lending “out of thin air” will further damage the pool and will further reduce banks’ ability to lend.
Again the foundation of lending is real wealth and not money as such. It is real wealth that imposes restrictions on banks’ ability to lend. (Money is just the medium of exchange, which facilitates the flow of real wealth.)
Note that without an expanding pool of real wealth, any expansion of bank lending is going to lift banks’ nonperforming assets.
Summary and conclusion

Contrary to various experts, we suggest that in the current economic climate an increase in government outlays is not going to make Fed’s loose monetary policies more effective as far as boosting economic activity is concerned.
On the contrary, it will weaken the process of wealth generation and will retard economic growth.
What is needed to get the economy going is to close all loopholes for money creation and drastically curtail government outlays.

This will leave a greater amount of wealth in the hands of wealth generators and will boost their ability to grow the economy.
http://mises.org/daily/6436/Drowning-in-a-Liquidity-Trap