Saturday, April 23, 2011

hyperinflation or Deflation?

This is the key question right now.
This is the biggest credit bubble ever blown in the history of the world and thus it will be the biggest bust
ever known. Forget what the Keynesians clowns like Krugman tell you about deficit spending etc
the truth is that once a bubble has burst there is really nothing you can do other than blow a knew one.
The truth is that bubbles should not be blown in the first place. The bubbles are the problem , the depression/recessions are the solution to correct for excesses and malinvestments. But oh now we cannot allow the market to act in the way  it should. Let the debtors and those loaning out  money that
cannot be reapaid to take their medicine. Oh no that would mean people like Jamie Dimon and Lloyd Blankfein would be doing a real life trading places. We can't have that can we, after all they are doing gods work and besides they promised their wives  a knew pad in the Hamptons. So to prevent the correction they print money and give it to these banks at near zero cost to keep stocks afloat and the banksters bonuses intact.
Thats right these banks have now produced record profits not from lending money but from being given free money to trade with on the open markets with their high frequency trading computers, and thus inflate assets and then sell off to some unsuspecting dupe who believes in the recovery story. Nice work if you can get away with it and they do. We all have to work for a living but the TBTF banks get given money for free
to gamble and do "gods work" with. What a sick joke but unfortunately the jokes on us as the citizens of the US are about to find out as their dollar becomes worthless. Thats right ! If QE continues then the dollar is toast and we will have a hyper inflationary depression.IF QE stops then market forces take over and stocks and assets crash leaving the dollar strong. Thats the choice as I see it. I think the latter one is better for all of us. Stoneleigh at Automatic earth and Bob Prechter still  believe in a debt based system that the latter will prevail anyway and I hope they are right. As long as you have an income and savings then in a deflationary depression people will be ok. Indeed that the only morally correct thing to happen as then people learn  not to take on too much debt, the savers get rewarded and buy up the assets of the imprudent. Thats how things are meant to work in a capitalist system but we live in a system that has been hijacked by the big banks and corporations who have also hijacked the economics profession to say we need Keynesian stimulus with shills like Krugman. Thus as long as the privately owned FED is in charge the n they will continue to print money IMHO, thus expect hyperinflation.
What can you do about this?
Buy Gold and silver as they have always been a store of value and given all currencies look debauched at this moment, Gold and silver provide the only safe haven. Indeed if you follow Max Keiser you will know that JP Morgan hold vast amounts of naked shorts in Silver. This was exposed by Andrew Maguire http://news.silverseek.com/SilverSeek/1288625817.php so we can get our revenge by buying PHYSICAL SILVER. This will crush the naked short holders.
Or failing that REMOVE the FED FROM POWER.
The people of the US need to wake up to this fact

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