Hyperinflation warning

The Pain Trade

The Federal Government just declared war on short sellers.
Will it help the real economy? No sir.
Will it help the value of my house? Nope.
Will it blow up hedge funds? Yep.
Is it a selling opportunity? You betcha.
Will the rally last ? No.
Will earnings increase? Actually I think they will fall.

My conclusion? The pain trade, after this burst, is a crash in October. Yes, a crash. I am not talking my book as my firm is delta neutral.

What makes me ill is that folks in the media are the mouth pieces of irresponsible Government officials.

I am sick to my stomach watching Socialism take over. And with that, I head to the Ryder Cup.

Mish's Global Economic Trend Analysis: Weep For The Free Market

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If you are opposed to the bailouts and are in support of getting hidden assets out in the open and eliminating the "creative accounting" games, you need to contact this individual now.

Telephone: (202) 224-5744
Fax: (202) 224-3416
Email: [email protected]
 
Yes the economy is really ****ed up.
But the primary job of all traders is to not worry about understanding conflicting viewpoints on what may/will happen, but to make sure we profit whatever happens.
 
Alex Jones' Prison Planet: The truth will set you free!
Bush & McCain Blackmail America With Economic Terrorism

The bailout bill represents the most fascist centralization of power in America since 9/11 and the Patriot Act - and many would argue that it even trumps that. The fiscal terrorists hope to ram through their agenda by appealing to people’s fears about the economy, their jobs, their houses and their pensions....
 
Alex Jones of prisonplanet.com was saying 6-12+ months ago that all the economic indicators suggested that the economy was being lined up for a perfect storm.
12 months later.......
 
Alex Jones of prisonplanet.com was saying 6-12+ months ago that all the economic indicators suggested that the economy was being lined up for a perfect storm.
12 months later.......

I saw some guy on BBC News 24 last night say he had seen it coming too !


dd
 
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Alex Jones' Prison Planet: The truth will set you free!

Ron Paul: Congress Has Opted For 10-Year Plus Depression

Congressman says civil unrest after meltdown could lead to martial law

Paul Joseph Watson
Prison Planet
Friday, September 26, 2008

Congressman Ron Paul says that the bailout bill is likely to pass, heralding a 10-year plus economic depression for America and the potential for martial law should civil unrest arise as the financial meltdown worsens.

Speaking on The Alex Jones Show, Paul said of the bailout, “They want dictatorship, they want to pass all the penalties and suffering on to the average person on Main Street,” adding, “We will have a depression or recession, it’s locked in place due to previous Federal Reserve actions.”

“When they say that if we don’t do exactly as they say and turn over more of our money and more of our liberties and exempt themselves from any court in the whole nation, they’re trying to intimidate us and lead us into doing the wrong thing,” said Paul.

The Congressman added that serious problems would arise if nothing was done to address the problem, but that more serious consequences would follow should the bailout be passed.

Paul warned that the only question was whether the meltdown would last one year or ten years and how much liberty would be lost in that time frame.

“It looks like from I see in Congress, that they’re opting for a decade plus of depression rather than saying let’s correct our ways, let’s balance the budget, let’s bring our troops home,” said Paul, adding that the same course of printing money would continue - prolonging the agony and preventing a necessary correction.

Asked if civil unrest was a possibility in the midst of an economic depression, referencing a recent Army Times report concerning the use of active duty military being brought back from Iraq for “Homeland patrols” and “crowd control,” Paul questioned, “Are we going to have martial law or are we going to have more freedoms? The more problems that we have, the more likely it is that we’re going to have martial law, so I do think they anticipate and they plan for these things.”

Asked if criminal investigations and prosecutions of individuals on Wall Street should commence, Paul agreed but said that the main target of criminal inquiry should be the Federal Reserve board itself because, “That’s where the fraud is.”

“They want to be lawless, they don’t want to be held accountable,” he added.

Paul said that grand juries should be convened to take on prosecutions rather than the FBI becoming involved, stating, “We have proper authority with that and experience with it and the Enron case is a good example.”

The Congressman said that Greenspan and Bernanke should be criminally charged but that such an effort would be largely symbolic. “Morally speaking, they’re the culprits,” said Paul.

Asked what his solution to the crisis would be, Paul said, “I think the most important thing to do is to send the message that we’re going to quit living beyond our means and the president can set the standard for that and he has the most control under the Constitution on foreign policy - he can say no more wars, we’re done with the wars, we’re not going to take on the Russians, we’re not going to take on people in Venezuela, we’re going to start talking to the Cubans and bring our troops home and save hundreds of billions of dollars - that would send a powerful message that the dollar would respond to and oil prices would come down.”

Paul said that Americans had to accept a new idea of government that harked back to what the founders envisaged and that the welfare state would have to unravel along with aspirations of building a geopolitical empire.

“In the meantime the policy ought to be - shrink the size of government, decrease regulation, work towards sound money, remove the authority of the Fed to create money out of thin air and get tax reduction,” stated the Congressman. Paul added that eliminating the income tax would mean everybody becoming a lot richer and more money would be ploughed into the economy.

“It will not solve the problem, it just delays the inevitable,” said Paul of the bailout, adding that he expects the bill to pass in a move that would, “Defy the American people.”

“I think they get to the point where they think they’re like God and can control everything and they don’t realize that the market really is more powerful than all the bankers and all the politicians….Ultimately the underground economy is the real economy and I think they could over step themselves and hopefully we could come out with a better world afterwards,” concluded the Congressman.
 
Alex Jones' Prison Planet: The truth will set you free!

The Dallas Federal Reserve Bank President, Former Treasury Secretary, Head of the Congressional Budget Office and Leading Economists All Slam Bailout

George Washington’s Blog
Friday, Sept 26, 2008

The following experts have slammed the bailout:

* The Dallas Federal Reserve Bank President (Richard Fisher) said the proposed bailout would plunge the U.S. government deeper into a fiscal abyss

* The former Secretary of the Treasury (Paul O’Neill) questions the bailout

* The director of the nonpartisan Congressional Budget Office (Peter R. Orszag) said the bailout could deepen the crisis

* Hundreds of leading economists, including numerous nobel prize winners, question the bailout

* Former White House economist (Steve Hanke) adamantly opposes the bailout

* Nobel prize economist and former chief economist of the World Bank (Joseph Stiglitz) opposes the bailout

* Many other leading economists question the bailout
 
McDonalds has a lower risk of default, as expressed in the Credit-Default Swap market, than the United States Federal Government.

Think folks.

Think long and hard.

This is what the threat to blow $700 billion has done to America. We now have a higher risk of default on our national debt than a company that sells hamburgers has on their private debt.

Rick Santelli nailed it this morning. This is a man who is a trader on the floor of the exchange that provides primary liquidity to some of our most important capital markets in Chicago.

He said, and I quote, that "confidence has been shattered because the rules of the game keep changing."

That is exactly correct.

Banks and other institutions have been hiding the truth, they have claimed "protection" against events that is in fact not present (the other guy doesn't have any money to pay) and leverage in the system remains excessive. Then, when the correct bets made (being short those institutions) are paying off, Chris Cox comes in and literally destroys them on purpose.

As a result The Fed is literally holding up every bank in the nation but this is not because of a "loss of confidence"; it is because everyone involved is lying, including The Fed and Treasury.

Art Cashin, who has been on the floor of the stock exchange for a very long time, said that The Fed would cut today except that it would take pressure off our officials.

In other words Ben Bernanke is blackmailing Congress by spreading gasoline all over the floor of the US Financial System and then holding a lit match and chortling that if Congress doesn't do as he demands he will drop it.

I agree. The Effective Fed Funds rate has been trading 50 basis points or more below the 2% target for five straight days now, and for the last two days, it has traded 75 basis points under. The IRX is demanding an immediate rate cut. The Slosh has been intentionally drained by over $125 billion in the last week and lowering the water in the swamp exposed one dead body - Washington Mutual - which was immediately raided on a no-notice basis by JP Morgan. Not even WaMu's CEO knew about the raid until it was done.

Congressional response to this sort of blackmail should be a bill to repeal The Federal Reserve Act and/or to remove Ben Bernanke from office.

The Fed claims to be an "independent central bank." They are nothing of the kind; they are now acting as an arsonist. The Fed and Treasury have claimed this is a "liquidity crisis"; it is not. It is an insolvency crisis that The Fed, Treasury and the other regulatory organs of our government have intentionally allowed to occur.

There is massive stress in the credit markets because of this intentional mismanagement.

CONGRESS: STOP AND THINK! - The Market Ticker

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Alex Jones' Prison Planet: The truth will set you free!

Hyperinflation Catalyst For $2,000 Gold

Wall Street bailout, overprinting of dollar will cause commodity to soar says 40-year market veteran

Paul Joseph Watson
Prison Planet
Monday, October 6, 2008

40-year market veteran and fund manager Robin Griffiths of Cazenove Capital Management predicts that the overprinting of dollars as a result of the Wall Street bailout will act as a catalyst for gold prices to rocket to $2,000 an ounce, as demand for precious metals outstrips supply amidst rumors of market manipulation.

Griffiths said that as the world deleverages, dollar strength could drive gold prices down to $750 an ounce, but that this would be the bottom and it would represent a great buying opportunity.

“Once we get through the crisis, people will realize they’ve printed an awful lot of dollars, too any dollars, and thrown them from a helicopter window - we need to hedge the risk of too many dollars around and real stuff is the way to do that and gold will be an excellent way,” Griffiths told CNBC this morning.
 
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