Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Global Stock Market Investing: Here's the Message of Consumer "Overconfidence" - 25th Jul 21
Gold’s Behavior in Various Parallel Inflation Universes - 25th Jul 21
Indian Delta Variant INFECTED! How infectious, Deadly, Do Vaccines Work? Avoid the PCR Test? - 25th Jul 21
Bitcoin Stock to Flow Model to Infinity and Beyond Price Forecasts - 25th Jul 21
Bitcoin Black Swan - GOOGLE! - 24th Jul 21
Stock Market Stalling Signs? Taking a Look Under the Hood of US Equities - 24th Jul 21
Biden’s Dangerous Inflation Denials - 24th Jul 21
How does CFD trading work - 24th Jul 21
Junior Gold Miners: New Yearly Lows! Will We See a Further Drop? - 23rd Jul 21
Best Forex Strategy for Consistent Profits - 23rd Jul 21
Popular Forex Brokers That You Might Want to Check Out - 22nd Jul 21
Bitcoin Black Swan - Will Crypto Currencies Get Banned? - 22nd Jul 21
Bitcoin Price Enters Stage #4 Excess Phase Peak Breakdown – Where To Next? - 22nd Jul 21
Powell Gave Congress Dovish Signs. Will It Help Gold Price? - 22nd Jul 21
What’s Next For Gold Is Always About The US Dollar - 22nd Jul 21
URGENT! ALL Windows 10 Users Must Do this NOW! Windows Image Backup Before it is Too Late! - 22nd Jul 21
Bitcoin Price CRASH, How to SELL BTC at $40k! Real Analysis vs Shill Coin Pumper's and Clueless Newbs - 21st Jul 21
Emotional Stock Traders React To Recent Market Rotation – Are You Ready For What’s Next? - 21st Jul 21
Killing Driveway Weeds FAST with a Pressure Washer - 8 months Later - Did it work?- Block Paving Weeds - 21st Jul 21
Post-Covid Stimulus Payouts & The US Fed Push Global Investors Deeper Into US Value Bubble - 21st Jul 21
What is Social Trading - 21st Jul 21
Would Transparency Help Crypto? - 21st Jul 21
AI Predicts US Tech Stocks Price Valuations Three Years Ahead (ASVF) - 20th Jul 21
Gold Asks: Has Inflation Already Peaked? - 20th Jul 21
FREE PASS to Analysis and Trend forecasts of 50+ Global Markets by Elliott Wave International - 20th Jul 21
Nissan to Create 1000s of jobs with electric vehicle investment in UK - 20th Jul 21
Bitcoin Halvings Price Forecast and Stock to Flow Analysis - 18th Jul 21
Dell S3220DGF Unboxing and Stand Assembly - 32 Inch 165hz Curved Gaming Monitor Amazon Discount - 18th Jul 21
What Does The Fed Mean By “Transitory Inflation” And Why Is It Important To Understand? - 18th Jul 21
Will the US stock market’s worsening breadth matter? - 18th Jul 21
Bitcoin Halving's Price Projection Forecasts Trend Trajectory - 18th Jul 21
Dell S3220DGF Price CRASH to £305! 32 Inch 165hz Curved Gaming Monitor Amazon Bargain - 16th Jul 21
Google, Amazon and Netflix are Scrambling For This Rare Gas - 16th Jul 21
Sheffield Millhouses Park New Children's Play Area July 2021 Vs Old Play Area - Better or Worse? - 16th Jul 21
Inflation Soars, Powell Remains Unmoved. What about Gold? - 16th Jul 21
Goldrunner: Gold Could Jump To $1,900-$2,100 In Next 30 days – Here’s Why - 15th Jul 21
Tips For Finding The Right Influencers - 15th Jul 21
ECB Changed Monetary Strategy. Will It Alter Gold’s Course? - 15th Jul 21
NASA And Big Tech Are Facing Off Over This Rare Gas - 15th Jul 21
Will the U.S. Dollar Lose Momentum In the Second Half of 2021? - 15th Jul 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

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