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 Price Trend Validation - 22nd Aug 19
Economist Lays Out the Next Step to Wonderland for the Fed - 22nd Aug 19
GCSE Exam Results Day Shock! How to Get 9 A*'s Grade 9's in England and Maths - 22nd Aug 19
KEY WEEK FOR US MARKETS, GOLD, AND OIL - Audio Analysis - 22nd Aug 19
USD/JPY, USD/CHF, GBP/USD Currency Pairs to Watch Prior to FOMC Minutes and Jackson Hole - 22nd Aug 19
Fed Too Late To Prevent US Real Estate Market Crash? - 22nd Aug 19
Retail Sector Isn’t Dead. It’s Growing and Pays 6%+ Dividends - 22nd Aug 19
FREE Access EWI's Financial Market Forecasting Service - 22nd Aug 19
Benefits of Acrobits Softphone - 22nd Aug 19
How to Protect Your Site from Bots & Spam? - 21st Aug 19
Fed Too Late To Prevent A US Housing Market Crash? - 21st Aug 19
Gold and the Cracks in the U.S., Japan and Germany’s Economic Data - 21st Aug 19
The Gold Rush of 2019 - 21st Aug 19
How to Play Interest Rates in US Real Estate - 21st Aug 19
Stocks Likely to Breakout Instead of Gold - 21st Aug 19
Top 6 Tips to Attract Followers On SoundCloud - 21st Aug 19
WAYS TO SECURE YOUR FINANCIAL FUTURE - 21st Aug 19
Holiday Nightmares - Your Caravan is Missing! - 21st Aug 19
UK House Building and House Prices Trend Forecast - 20th Aug 19
The Next Stock Market Breakdown And The Setup - 20th Aug 19
5 Ways to Save by Using a Mortgage Broker - 20th Aug 19
Is This Time Different? Predictive Power of the Yield Curve and Gold - 19th Aug 19
New Dawn for the iGaming Industry in the United States - 19th Aug 19
Gold Set to Correct but Internals Remain Bullish - 19th Aug 19
Stock Market Correction Continues - 19th Aug 19
The Number One Gold Stock Of 2019 - 19th Aug 19
The State of the Financial Union - 18th Aug 19
The Nuts and Bolts: Yield Inversion Says Recession is Coming But it May take 24 months - 18th Aug 19
Markets August 19 Turn Date is Tomorrow – Are You Ready? - 18th Aug 19
JOHNSON AND JOHNSON - JNJ for Life Extension Pharma Stocks Investing - 17th Aug 19
Negative Bond Market Yields Tell A Story Of Shifting Economic Stock Market Leadership - 17th Aug 19
Is Stock Market About to Crash? Three Charts That Suggest It’s Possible - 17th Aug 19
It’s Time For Colombia To Dump The Peso - 17th Aug 19
Gold & Silver Stand Strong amid Stock Volatility & Falling Rates - 16th Aug 19
Gold Mining Stocks Q2’19 Fundamentals - 16th Aug 19
Silver, Transports, and Dow Jones Index At Targets – What Direct Next? - 16th Aug 19
When the US Bond Market Bubble Blows Up! - 16th Aug 19
Dark days are closing in on Apple - 16th Aug 19
Precious Metals Gone Wild! Reaching Initial Targets – Now What’s Next - 16th Aug 19
US Government Is Beholden To The Fed; And Vice-Versa - 15th Aug 19
GBP vs USD Forex Pair Swings Into Focus Amid Brexit Chaos - 15th Aug 19
US Negative Interest Rates Go Mainstream - With Some Glaring Omissions - 15th Aug 19
GOLD BULL RUN TREND ANALYSIS - 15th Aug 19
US Stock Market Could Fall 12% to 25% - 15th Aug 19
A Level Exam Results School Live Reaction Shock 2019! - 15th Aug 19
It's Time to Get Serious about Silver - 15th Aug 19
The EagleFX Beginners Guide – Financial Markets - 15th Aug 19

Market Oracle FREE Newsletter

The No 1 Gold 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