Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Gold Bull Market Ultimate Upside Target - 17th Sep 19
Gold Spikes on the Saudi Oil Attacks: Can It Last? - 17th Sep 19
Stock Market VIX To Begin A New Uptrend and What it Means - 17th Sep 19
Philippines, China and US: Joint Exploration Vs Rearmament and Nuclear Weapons - 17th Sep 19
What Are The Real Upside Targets For Crude Oil Price Post Drone Attack? - 17th Sep 19
Curse of Technology Weapons - 17th Sep 19
Media Hypes Recession Whilst Trump Proposes a Tax on Savings - 17th Sep 19
Understanding Ways To Stretch Your Investments Further - 17th Sep 19
Trading Natural Gas As The Season Changes - 16th Sep 19
Cameco Crash, Uranium Sector Won’t Catch a break - 16th Sep 19
These Indicators Point to an Early 2020 Economic Downturn - 16th Sep 19
Gold When Global Insanity Prevails - 16th Sep 19
Stock Market Looking Toppy - 16th Sep 19
Is the Stocks Bull Market Nearing an End? - 16th Sep 19
US Stock Market Indexes Continue to Rally Within A Defined Range - 16th Sep 19
What If Gold Is NOT In A New Bull Market? - 16th Sep 19
A History Lesson For Pundits Who Don’t Believe Stocks Are Overvalued - 16th Sep 19
The Disconnect Between Millennials and Real Estate - 16th Sep 19
Tech Giants Will Crash in the Next Stock Market Downturn - 15th Sep 19
Will Draghi’s Swan Song Revive the Eurozone? And Gold? - 15th Sep 19
The Race to Depreciate Fiat Currencies Is Accelerating - 15th Sep 19
Can Crypto casino beat Hybrid casino - 15th Sep 19
British Pound GBP vs Brexit Chaos Timeline - 14th Sep 19
Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - 14th Sep 19
War Gaming the US-China Trade War - 14th Sep 19
Buying a Budgie, Parakeet for the First Time from a Pet Shop - Jollyes UK - 14th Sep 19
Crude Oil Price Setting Up For A Downside Price Rotation - 13th Sep 19
A “Looming” Recession Is a Gold Golden Opportunity - 13th Sep 19
Is 2019 Similar to 2007? What Does It Mean For Gold? - 13th Sep 19
How Did the Philippines Establish Itself as a World Leader in Call Centre Outsourcing? - 13th Sep 19
UK General Election Forecast 2019 - Betting Market Odds - 13th Sep 19
Energy Sector Reaches Key Low Point – Start Looking For The Next Move - 13th Sep 19
Weakening Shale Productivity "VERY Bullish" For Oil Prices - 13th Sep 19
Stock Market Dow to 38,000 by 2022 - 13th Sep 19 - readtheticker
Gold under NIRP? | Negative Interest Rates vs Bullion - 12th Sep 19
Land Rover Discovery Sport Brake Pads and Discs's Replace, Dealer Check and Cost - 12th Sep 19
Stock Market Crash Black Swan Event Set Up Sept 12th? - 12th Sep 19
Increased Pension Liabilities During the Coming Stock Market Crash - 12th Sep 19
Gold at Support: the Upcoming Move - 12th Sep 19
Precious Metals, US Dollar, Stocks – How It All Relates – Part II - 12th Sep 19
Boris Johnson's "Do or Die, Dead in a Ditch" Brexit Strategy - 11th Sep 19
Precious Metals, US Dollar: How It All Relates – Part I - 11th Sep 19
Bank of England’s Carney Delivers Dollar Shocker at Jackson Hole meeting - 11th Sep 19
Gold and Silver Wounded Animals, Indeed - 11th Sep 19
Boris Johnson a Crippled Prime Minister - 11th Sep 19
Gold Significant Correction Has Started - 11th Sep 19
Reasons To Follow Experienced Traders In Automated Trading - 11th Sep 19
Silver's Sharp Reaction Back - 11th Sep 19
2020 Will Be the Most Volatile Market Year in History - 11th Sep 19
Westminister BrExit Extreme Chaos Puts Britain into a Pre-Civil War State - 10th Sep 19
Gold to Correct as Stocks Rally - 10th Sep 19
Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - 10th Sep 19
Stock Market Sector Rotation Giving Mixed Signals About The Future - 10th Sep 19
The Online Gaming Industry is Going Up - 10th Sep 19

Market Oracle FREE Newsletter

The No1 Tech Stock for 2019

U.S. Economy Flight 666, On a One Way Inflation Ticket To Zimbabwe

Economics / Inflation Feb 15, 2011 - 03:52 AM GMT

By: D_Sherman_Okst

Economics

Best Financial Markets Analysis ArticleI’ve finally had the time to thoroughly study Bernanke’s entire Press Club speech, his appearance before Representative Paul Ryan’s House Budget Committee and bulk of the recently released 2005 FOMC minutes.   

The conclusion I have drawn from all this data is that the captain of our economy, Ben Bernanke, is either an economic imbecile or a financial terrorist.  Through evil intent, or sheer stupidity, the outcome remains unchanged.  The bottom-line: He has hijacked our economy flight and changed our destination.  Bernanke is about to crash Flight 666 and all 308 million of us sitting helplessly in the passenger cabin into Zimbabwe’s airport known as Hell’s Hyperinflation Field.   


There is only one way we can avert this disaster, but time is running out, we are passing  that critical fuel point - the point where there is not enough fuel to safely divert.  Therefore it doesn’t look likely that we will be landing anywhere nice on our journey to the impoverished southern continent of Africa. 

In the summer of 2005 CNBS asked Bernanke about the possibility of a housing bubble.  His exact words were “I guess I don’t agree with your premise.”  Three short years later the biggest bubble in economic history (the housing bubble) exploded and nearly took down the entire global economy.

You didn’t have to be a rocket scientist or an economist to realize that adding 7-10 million --- once unqualified buyers --- a year to a market with limited inventory and then reseting their interest rates would spell anything but HOUSING BUBBLE followed by an ECONOMIC HIROSHIMA.  Especially since the only thing that changed them from “unqualified” to “suddenly qualified” was the banks ability to off (read: sell/get rid of) their mortgages to some dimwit who considered himself or herself to be an “investor”. 

Since 6 out of 10 jobs were housing related the guaranteed pop created systemic risk.  A lot of this trash was falsely rated as AAA, it was sold to “investors,” entire countries, states, local municipalities and pension funds.  This of course greatly exacerbated the mess.  The counterparty insurance risk caused by underfunded or unfunded insurance parties [AIG and alike firms] added to the quagmire.  

The Fed knew about the housing bubble in 2005, it is buried in the release of 2005 FOMC minutes.  They were laughing about it. 

Bernanke’s flight crew was literally laughing at the biggest economic disaster in history.  NOT the hallmark of good leadership. 

Apparently they didn’t realize that cockpit voice recorder was capturing this.  “I came across a new television series on the Discovery Channel entitled “Flip That House.” [Laughter] As far as I could tell, the gist of the show was that with some spackling, a few strategically placed azaleas, and access to a bank, you too could tap into the great real estate wealth machine. It was enough to put even the most ardent believer in market efficiency into existential crisis.” [Laughter] 

On February 3, 2011, Bernanke spoke and took questions at the National Press Club in Washington, DC.  He was asked: “Do you believe that any of the growing political unrest around the world, especially in Tunisia and Egypt is linked to higher food prices which the questioner says result from the Fed’s large scale asset purchases [Quantitative Easing]?” 

Bernanke’s answer? “I’m not sure I accept the premise of the first half of the question!” 

Nice flying Captain @$$face. 

The simple, historically proven, translation for Ben Bernanke’s “I guess I don’t agree with your premise,” and, or, “I’m not sure I accept your premise” is this: ‘It’s an effing certainty.’  ‘Bank on it.’  ‘Bet on it.’  ‘It [hyperinflation as the result of a currency I made totally worthless by monetizing debt] will happen.’  

‘Ladies and gentleman, from the flight deck this is your captain Ben Nagasaki Bernanke - we will be crashing - I mean landing - in Zimbabwe shortly.’ [Sounds of every computer generated audible cockpit warning horn can be heard in the background during this entire announcement.  If you look closely under the cockpit door you will notice the flashing warning lights - the instrument panel is lit up like a yellow and red christmas tree.]  Bernanke is ignoring all this, focused on his ivory tower skewed fuzzy statistics or is assinine belief that he can secretly debase half of our 128 trillion dollar debt away with worthless dollars.

If you are unfamiliar with how the government tweaks data, if you don’t know what Hedonics, weighting, imputations are, or you haven’t heard of a “deflator” you should take a moment to watch Dr. Chris Martenson’s video titled “Fuzzy Numbers.”  

And Chris’s short chapter on inflation while you are at it. 

Chris is a brainiac who pulled the economy apart and explained it so even an economically challenged  fourth grader could “get it”.  Best yet he fully grasps the fact that a population pushing 7 billion and finite resources, resources that our economy is predicated upon is all tied together.

The entire point of this missive is this:

What you should hear when you hear the Bernanke uses the old “I’m not sure I accept the premise of the first half of the question!” --- is that it is either time to take action now or crap your pants later. 

My gold and silver life vest is donned, my food ration (a freezer with a dead cow in it), and the security I need to protect my family when we enter a nationwide Katrina is there for me to cling to.  I for one don’t want to subject my family to some Superdome camp where rape and drugs are rampant because our collective leadership can’t manage their way out of a Fiat currency crisis.  Fiat currency crises are regular events, the average unbacked paper (Fiat) currency lasts 39 years, ours is 40 years off the gold standard.  There have been 3,800 Fiat currencies that have failed.  Not one has ever lasted.  

In other words - this should be a big surprise to NO ONE!

By D. Sherman Okst

http://UnveilingTheEconomy.blogspot.com/

Bernardston MA USA

davossherman @ gmail.com

I'm an ex-airline captain with about 15,000 hours and am amazed at all the BS we are taught. Most of my friends still in the business were also taught the wrong aerodynamic principles with respect to what makes planes fly. Aviation or economics, Keynes to Austrian - Bernulli to Newton we've been sold bad goods. It's amazing anything works as backwards as we do things.

© 2011 Copyright  D. Sherman Okst - Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules