In just the month of March, the US government spent $1.1 TRILLION dollars. I hope you are prepared for massive inflation...with the real possibility of Hyperinflation...






It has always been self-evident, but here are the numbers in chart form, to back it up: Purchasing Power of the Dollar Versus Gold.

Gold Over $1,450, Silver $39

Submitted by Tyler Durden on 04/05/2011 11:24 -040

Nobody could have foreseen this. Nobody. In other news, Ben Bernanke has just ordered an extra absorbent set of Huggies. 

 

 

 

 

 

 

Gold For December 2016 Delivery At $1,709.90

Submitted by Tyler Durden on 04/05/2011 11:38 -0400

Good news: at least it is not in backwardation. We wonder how long before Bernanke uses that excuse in a public tribunal. 

 

 

 

 

Saudi Arabia Goes M.A.D.: Saudi Oil Minister Says Crude To Hit $300 If Turmoil Spreads To Saudi

Submitted by Tyler Durden on 04/05/2011 08:45 -0400

The strategy of Mutual Assured Destruction has worked so well in the "developed" world (thank you Hank Paulson, Tim Jeethner, Clearinghouse Association et al), it is time to see it in application in the "developing." In an attempt to preempt US doubts about intervening (on the proper side) in the case of escalations in Saudi Arabia (and with the possibility of Yemen becoming a potential Al Qaeda hotbed rising by the hour, this is non-trivial) the former Saudi oil minister Sheikh Zaki Yamani told Reuters on Tuesday that "Oil prices could leap to $200 to $300 a barrel if Saudi Arabia is hit by serious political unrest." We are confident he was merely talking in a very, very hypothetical scenario. After all why scaremonger in a world in which everything is under control? 

Services ISM Prints At 57.3, Worse Than Consensus Of 59.5

Submitted by Tyler Durden on 04/05/2011 10:02 -0400

While the services PMI dropped from 59.7 to 57.3, well below expectations, the broad Business Activity series plunged from 66.9 to 59.7 The surging inflationary Price Paid series dropped from 73.3 to 72.1, or back to January's level. New Orders and Employment also declined from 64.1 and 53.7, from 64.4 and 55.6 respectively. The only growing components were Backlog of Orders rising 4.0 to 56.0, New Export Orders up 2.5 to 59.0 and Inventory Sentiment up 9.5 to 67.0, which the Surve classifies as "Too High" - this means liquidations are imminent. Hope you have your FIFO on. 

Michael Steinhardt Tells The Truth, The Whole Truth, And Especially The Truth About The Greatest "Con Job": Warren Buffett

Submitted by Tyler Durden on 04/05/2011 14:49 -0400

Earlier this morning, legendary hedge fund manager Michael Steinhardt popped by the CNBC studios for a little chat with the Squawk Box crew. Things started off friendly enough, with some conversation about the petting-zoo Steinhardt keeps at his home in Westchester (which includes zebras, camels, albino wallabies and a llama named Angel Mike that has been known to french kiss), his rare-plant collection that inspires envy in Martha Stewart, the economy and the Fed. Steinhardt noted that, compared to the rest of what’s going on in the world, “we live in an inland sea of calm waters while surrounding us are turbulent, horrible places,” to which everyone nodded soberly in agreement, unaware of what was coming next. “America seems almost as insular as it has in times past,” Mike continued. “America is not the wonderful place it used to be...Look at the rest of the world compared to America, look what’s happening all over and then here the biggest thing we have to worry about is how long it will take Buffett to come down to earth…how long until people like you begin to realize his reality and get off some…cloud.” Yet the smackdown of the Becky Quick/Joe Kernen Buffett-sycophant brigade was the prime attraction by far...

QE3 On - QE3 Off: Bizarro World Wins, As Hatzius Threatens Lowering Forward GDP

Submitted by Tyler Durden on 04/05/2011 10:49 -0400

We have now gotten to the very limits of the market, where any even modestly bad news (Services ISM) even if of a secondary importance nature, sends the market surging higher as expectations that QE3 is inevitable, hit 100%. Then when good news comes, and QE3 is deemed to be impossible, the market plunges. Bizarro world, where bad news is good news and vice versa, has won. Thank you central planning. And for all those who jettisoned gold on expectations the economy was actually, chuckle, improving, here is your chart.