Several weeks ago I speculated that we were “On the Brink of an Asset Explosion” . So far events are unfolding about as expected. I might even say they are moving more aggressively than I thought. Well actually, there’s no doubt this cyclical bull is unfolding much more aggressively than anyone expected.
Compare the angle of assent of this cyclical bull to the last one.
It’s readily apparent what affect the trillions and trillions of dollars central banks have pumped into the system is having. I think Ben has clearly proved his point that in a purely fiat monetary system deflation is a choice, not an inevitability.
As long as a country is willing to sacrifice its currency there is no amount of deflationary pressure that can’t be printed away.
However, no amount of printing can erase the underlying problems. And those problems are going to persist until they are cleansed from the system. In his mad attempt to avoid the mistakes of the depression Bernanke is going to create a whole new type depression. This time the depression will materialize as a hyper-inflationary storm.
What the powers that be fail to understand is that we are going to suffer a depression that is unavoidable when a credit bubble forms and pops. All we are doing is choosing the form of the depression. In this case the memory of the deflationary depression in the 30’s has sent us down the other track into the beginnings of a hyperinflationary state.
Going back to our charts you can see that the February correction separated the second leg of the bull from the third and almost exactly matched the `04 correction in magnitude if not in time. Remember everything is unfolding faster this time.
I think we have by passed the middle years (2004-2006) of a normal bull market and have now entered the final stages of this cyclical bull. I tend to think we are now in the same state as the runaway move in late 2006 and early 2007.
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Amazingly enough oil has done this in a very low demand/high supply environment. This fact could only be true if the cause for oil’s rise in price is directly attributed to the Fed’s monetary policy.
Once the market corrects I think we can back up the truck in virtually any asset class for the final parabolic move as the Fed completely loses control of money supply. We just need to keep in mind this will be an end game not the beginning of a new secular bull.
More Here..
We will be in their "Weimar Republic" shortly! Soon you will see the DC & Wall Street Rats leaving the ship...soon, very soon! Just like the good old days.
ReplyDeleteKarl Helfferich
I'm sure I've linked this from FOFOA, already, but it is a must read, and re-read, ...
ReplyDeleteGreece is the Word
From the commment section:
"My friend, debt is the very essence of fiat. As debt defaults, fiat is destroyed. This is where all these deflationists get their direction. Not seeing that hyperinflation is the process of saving debt at all costs, even buying it outright for cash. Deflation is impossible in today's dollar terms because policy will allow the printing of cash, if necessary, to cover every last bit of debt and dumping it on your front lawn! Worthless dollars, of course, but no deflation in dollar terms!"
Sincerely,
FOFOA
Stick to your guns Ben .Ignore politics.
ReplyDeleteEverything is going nicely for a reset.
Figures show that the rich are concentrating wealth and re- building up their assets with record gains.
Print Print Print
Your job is to save the system and your class.
Not the peons .
More free money bailouts for the rich!
And keep issuing that cheap money for those nice , free profit, Treasury bonds for the bankster carry trade. The peons will be paying that debt to us for years.A decade at least!
When the stock market and the property markets crash the small bunnies will be wiped out.
And even if the rich have to buy the assets all up in inflated money , that has already lost half its value , they will have still have plenty of that for a game ending buy up of property assets that are cheaply priced at and will sell at less than half today’s dollar prices anyway. Thanks Ben!
With the assets already in the hands of the rich , after the reset buy up , what matter if the currency value falls even further, Weimer style .
We might even “reform”our ways later and have a gold standard currency fractional reserve system again !
Abraham begets Isaac and money begets more money and multiplies as the rich get richer.
That’s the law of life and the god Capital.
Thank you Ben.
And long live free money for banksters and the carry trade in bonds.
this is going to end very badly
ReplyDeletebetter prepare now
danceing with the stars was on does any one know who won
hhahahhahahh
weeeeeee up the rollercoaster
to many wont have suspenders
If the stated value, of “Federal” Reserve notes, declines enough with respect to copper and nickel, the 1946-2009 U.S. Mint nickels, composed of cupronickel alloy, could get somewhat rare in mass circulation.
ReplyDeleteThe April 12th metal value of these nickels is “$0.0613173” or 122.63% of face value, according to the “United States Circulating Coinage Intrinsic Value Table” available at Coinflation.com.
Gee, what a shock, hyperinflationary depression. Those of who are living in reality have known this for years. It doesn't take a PHD to figure it out. Of course the sheeple have no clue, their tv's are still promoting the "recovery", HA HA HA!
ReplyDeleteAs previously stated, when the sheeple wake one morning and find they have no $$ in their bank and no credit on their plastic, then maybe possibly some of them will wake up to reality.
Probably not, what time is American Idle on tonight?