Gold and Silver Hold/ Poor USA Economic Data/ GDP falls badly in Japan/ Huge gold demand from China

The Time to Prepare for Hyper-Inflation is BEFORE It EXPLODES

Posted by: Phoenix Capital Research

Post date: 05/19/2011 - 13:39

The similarities between the US today and Weimar pre-hyperinflation are striking. As in Weimar, US fiscal authorities are not taking any steps to rein in their loose money policies. Similarly, the US Fed, like Germany’s financial elites believes that currency depreciation is a good thing. 

 

 

 

 

Harvey Organ, Thursday, May 18, 2011

Gold and Silver Hold/ Poor USA Economic Data/ GDP falls badly in Japan/ Huge gold demand from China

 

 

 

 

What To Expect As QE 2 Ends, And Why By The Time QE X Is Over "Bernanke Will Be The Biggest Landlord In The Country" 

Submitted by Tyler Durden on 05/19/2011 17:11 -0400
We have long claimed that 2011 is playing out in a manner virtually identical to 2010, almost to the tic. And as we approach the end of QE2 in 6 weeks, a quick glance at what happened with stocks following the end of QE1 in March of 2010, will be illustrative of what to expect this time around, because contrary to what Comcast's business channel would want its ever declining viewers to believe, it never really is "different this time." To help with that comparison, here is a David Rosenberg summarizing what happened between the end of QE1 and Bernanke's August 27 announcement of QE2. If this is all it takes, then as we (and Scott Minerd earlier) have predicted, get ready for not only QE3, but 4, 5 and so forth. And not only that, but Rosie joins the likes of Zero Hedge, Minerd, Koo, Janjuah and all other pragmatics who realize that the Fed will never, never, allow deflation to run its course even if that means collateralizing the dollar with sewer bonds and physical housing, which incidentally is what Rosenberg predicts: "the day the QE programs run their full course, the Fed will have likely added physical housing units to its balance sheet as opposed to just mortgage paper. Ben Bernanke will be the biggest landlord in the country at that time."  

 

 

 

 

Live Webcast From Biggest Spanish Protest Yet 

Submitted by Tyler Durden on 05/19/2011 16:37 -0400

Last year video of Greek protests turning violent was enough to force Waddell & Reed to sell several thousand ES contracts which crashed the market. Will this year's catalyst be Spain (which may just be too big for the CDO known as the EFSF to bail out)? While the gatherings in Spain have been getting bigger (and judging by this live feed, the one tonight is the biggest yet), they have so far been peaceful. Yet with 21% unemployment, and according to some over half of youth without a job, just how long until someone decides to send a flaming Molotov cocktail at the riot police? Watch a live webcast from Spain below. 

 

 

 

 

Krieger On Printing And Propaganda 

Submitted by Tyler Durden on 05/19/2011 13:38 -0400

We all know by now that the centrals planners believe the tail wags the dog. So the economy doesn’t lead to higher stock prices but higher stock prices will lead to a better economy. Insane? Absolutely. Is it their religion? 100%. The other important thing for investors to be aware of now when they are comparing the current state of affairs to what many lived through in the 1970’s is that the central planners have learned some lessons. What we must always remember about central planners is that they will never renege on their core philosophy which is that an elite academic and political class in their wisdom are better stewards than free humans interacting in a marketplace. That said, most people do not share their worldview for obvious reasons (who wants their lives micromanaged) so the trick of the central planners is to micromanage your life while you think you are in charge. As Goethe said “None are more hopelessly enslaved than those who falsely believe they are free.” He didn’t just make up this clever quote, it is a tried a true method of the most successful control systems throughout history. So even the brainwashed masses out there understand that price controls were tried in the 1970’s and failed. We also know why. Therefore, the last thing the current group of central planners will want to do is announce price controls. That doesn’t mean they don’t attempt them anyway. They have been rigging stocks in the United States consistently for the past two years and most people get this and accept it as a part of the current state of disunion we are in. However, as I wrote last week we have now entered Phase 2. This was represented by the raid on commodities. 

 

 

 

 

 

Treasury Prepares To Plunder Another $45 Billion From Retirement Funds As It Issues $110 Billion More Debt Next Week 

Submitted by Tyler Durden on 05/19/2011 12:38 -0400

Now that it has finally been made clear that in order to accommodate the debt ceiling by adding marketable debt, the Treasury has no choice but to literally plunder retirement accounts, we now know that in order to fit in the just announced $110 billion in new bond issuance over the next week, Tim Geithner will have to reduce US retirement funding (the bulk of which, the Social Security Trust Fund already lost $1.1 trillion in the past year) by at least $45 billion. That is the net result of $60 billion in net new cash and $15 billion in bill paydowns which will settle between May 19 and May 31. What remains to be seen is just how much cash the Treasury will bleed as it seeks a parallel track of under-rolling maturing Bills, in order to keep its previously disclosed intentions of issuing just $142 billion between April and June. Keep in mind almost two thirds of this period has passed, which means that somehow the Treasury has to not only stop but in fact reverse its net issuance. We are not sure how this will actually happen.

Jim Sinclair’s Commentary
This is such MOPE it is disgusting.
The Fed will be selling Treasury instruments, securitized mortgages and so on.
That is too comical to even comment on. It is pure raving BS.


Fed nears agreement on how to exit stimulus but not when.
Minutes from the FOMC’s meeting in late April show that Fed policy makers are beginning to coalesce on how to end the central bank’s easy money policy, although there is division as to the timing. The majority of attendees said the Fed should first end its policy of reinvesting proceeds from maturing securities and later raise interest rates and sell assets. However, while some officials said an exit should come sooner than expected, others were concerned that early rate hikes would stifle any recovery. Separately, the St Louis Fed’s James Bullard said the central bank should stop relying on core inflation and focus instead on overall price increases. Excluding food and energy prices "is hardly helpful for Fed credibility," Bullard said.