Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

One-trick pony Ben Bernanke, Here Comes the Gold Stock Mania!

Commodities / Gold and Silver 2012 Sep 14, 2012 - 04:00 AM GMT

By: Jeff_Berwick


Best Financial Markets Analysis ArticleOne-trick pony Ben Bernanke woke up this morning, hopped in his limo, and headed off to save the world!  Or at least, in his own mind he did.

As many of us who are paying attention know, however, Ben Bernanke is an idiot-savante of memorizing statist and completely fallacious economic ideas born from an even more disturbed man named John Maynard Keynes.  These and other Keynes Kool-aid drinkers like Paul "I look homeless" Krugman believe things like breaking windows improves the world because broken windows make more work for us slaves to do.  They also believe that counterfeiting pieces of paper with dead criminals painted on them can improve the world... as it makes us all "feel" wealthier, even though we are poorer.  They even believe that if the latest round of QE doesn't work that we may have to resort to burying the newly printed Federal Reserve Notes and then paying people to dig them up... or fake an alien invasion... to "improve" the economy!

And, if all that fails they'll blame it on things like "animal spirits".  And if you don't take that as a suitable answer they'll just shrug and say, "Hey, well, in the end, we're all dead anyways".

Yes, this is what Ben Shalom Bernanke believes and so today he walked up to the microphone and announced that he will print up new money and buy $40 billion worth of mortgage backed securities for as long as it takes to get the unemployment rate down to 7%!  Considering that the true unemployment rate (not the government hedonistically adjusted propaganda numbers) is closer to 23%, he's really got his work cut out for him!  Especially because the biggest obstacle to a true reduction in real unemployment is Ben Bernanke's QE3 itself.

That's because printing up endless amounts of fiat currency units only has one real outcome... and that is the destruction of the economy as consumers, business people and entrepreneurs are all given false price signals caused by the onslaught of untraceable new money, and they therefore cannot make economic calculations to give the market what it wants properly.  This is what caused the tech bubble... this is what caused the housing bubble... and this is what is likely going to cause the gold and gold stock bubble.


You may be scratching your head.  We tend to pick on people like Helicopter Ben Bernanke and Barack "Nearly doubled the US National Debt in 4 year" O'Bomber all the time but all of their actions are going to foment a bubble in the very things in which we have a large holding at TDV.  But there are some things more important than money... and the likes of Bernanke and O'Bomber are also continuing to impoverish billions and by the time it is all done, possibly kill billions as well.  So, we take these profits with a very heavy heart.

But since there is not much we can do except take advantage of their and the great majority of the public's stupidity, then we'll just place our chips and front run the crowd... and watch as it all falls apart live over the internet from somewhere in Mexico or South America.

Ed Bugos, Senior Analyst of The Dollar Vigilante happened to be out on a hunting trip in Western Canada when the news came through so we couldn't get all of his input on this yet, but last we heard he was running through the forest as fast as he could back to his computer after hearing the news!

Vin Maru, Chief Editor of the TDV Golden Trader also was furiously going through his list of massively undervalued juniors looking to see which ones might be the type that go from $0.02 to $2.00 in this type of market.

If you've been waiting to get on board with some of these junior gold stocks, you just got your wake-up call.


We've been on record as saying Quantitative Easing will never end.  Here is Ed Bugos in the March 2011 issue of TDV talking about how people shouldn't be worrying about the "end" of QE2 in June of last year:

"So it is no surprise and rather amusing to hear the media and other pundits speculate about when QE2 will end. They will be the last to get it. It cannot end or the Treasury market is ruined. Even a traditional tightening will be difficult for the Fed to pull off this time around. Not only is the government so much in hock that it won’t be able to absorb the higher rate of interest itself, but also, since it pays interest on reserves now any attempt to push the target rate higher will cause those reserves to inflate even more...not to mention give banks the incentive to accelerate money creation."

Sure, exogenous events such as the crisis in Europe enabled them to pull back for a while... and the commercial banks continued to ensure that the pace of money printing never came below 10% the entire time, but it was absolutely baked in the cake that they'd return for more... and more... and more.  Notice also that Ed said they could not even tighten interest rates either... and they've remained at 0%.


Perhaps the most bizarre part of all this is how the word "stagflation" hasn't started to crop up more.  Here we have the Dow Jones Industrial Average at near alltime nominal highs, one in six US citizens don't get enough food because they can't afford it, food prices at near all-time highs (Commodity Food Price Index below).


Gas prices near all-time highs in nominal terms (historical gas price chart from below).


And yet, all the people on CNBC natter on that there is no inflation?

Meanwhile, real unemployment is closer to 23%.  Meanwhile, the current US housing bust is making the Great Depression look like a weekend at Jay-Z and Beyonce's!

That's about as stagflationy as it gets.  But this time, instead of Paul Volcker at the Fed, it's Helicopter Ben.  Not that he'd want to be around anyway.  Paul Volcker left Barack O'Bomber's economic council over a year and a half ago.  He saw what was coming and knew there was no way out.

This isn't going to end well!  Here at The Dollar Vigilante, our advice as always is to stick with precious metals, gold stocks, whether longer term with TDV Premium or trading in and out, with TDV Golden Trader.  And make sure you register your shares (BulletProof Shares).  Then, get a significant portion of your precious metals outside of your own country (Getting Your Gold Out Of Dodge), look to get a foreign company or bank account (TDV Offshore) and a second passport (TDV Passports).  Then subscribe to TDV to keep abreast of all the latest developments of how to survive this coming shitstorm that Ben Bernanke just unleashed.

The Dollar Vigilante is a free-market financial newsletter focused on covering all aspects of the ongoing financial collapse. The newsletter has news, information and analysis on investments for safety and for profit during the collapse including investments in gold, silver, energy and agriculture commodities and publicly traded stocks. As well, the newsletter covers other aspects including expatriation, both financially and physically and news and info on health, safety and other ways to survive the coming collapse of the US Dollar safely and comfortably. The Dollar Vigilante offers a free newsletter at

© 2012 Copyright Jeff Berwick - All Rights Reserved 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 - 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