Is Bernanke Being Kept Awake By Gold?

Readers of this site know that I believe gold is a likely safe haven in the trek toward economic Armageddon. Zerohedge thinks the chart below keeps Ben Bernanke up at night. Whether that is so or not is moot. Mr. Bernanke has other things that may affect his sleep even more. Mr. Bernanke is less sophisticated than most believe. He [...]

Bigger Hangover Ahead

Almost one year ago (Nov. 3, 2011), I published a piece entitled Hangover From Hell that was highly critical of the approach to economic policy being applied around the world. Sadly, the policies have not changed since that article. Nor have these policies revived economies. Indeed things have gotten worse! Both the US and Europe have administered more alcohol to [...]

Bernanke’s QE Makes Matters Worse

The euphoria initially expressed by markets to unending Quantitative Easing (money printing) may be playing out. The last couple of days were mediocre in terms of stock market performance. For investors, it is a difficult time. Do you play for the inflation-induced bounce in stocks? That is the likely outcome, for a while, although recognize that it has nothing to [...]

Bernanke Continues to Pretend He Has Control

QE (quantitative easing), whether it be QE1 or QE10, is a euphemism. It represents the expansion of the money supply (printing money). An expansion of the money supply is inflation. Rising prices are not inflation, they are an effect of inflation. The disease is printing money (or QE if you want to call a rose by some other name). The [...]

For Ben Bernanke, Nothing Has Changed

The announced bond buying by Mario Draghi in Europe produced a substantial rise in our markets yesterday. Investors who were long stocks were undoubtedly happy with their likely unexpected windfall. The major averages all hit multi-year highs and gold closed over $1,700. As happy as investors were, one Ben Bernanke and his current boss, Barack Obama, were likely just as [...]

QE3 May Be A Surprise

A reasonable synopsis of the ethics and morality of Washington, DC was provided in an article from Before Its News: “Maybe in times past [Washington 'elites' cared], when the power structure was a bit more reserved and less blatant about their corruption and manipulations,” Krieger continued. “They don’t hide that stuff anymore. The “elites” in America today are simply gangsters. [...]

Up The Creek Without A Paddle

The contrast between what we see in our every day lives is not consistent with what government tells us is happening in the economy. The so-called recovery certainly doesn’t feel like one; it is certainly unlike any of the others over the last 50 or so years. If inflation is not a problem, one can only wonder how government obtains [...]

Central Banks Like Gold, Despite What They Say

Watch what they do, not what they say. That is wise advise always, but especially when trying to discern what government is up to. Central banks routinely argue that gold is a “barbarous relic,” the term Keynes used to describe it. He knew, as do Central Banks, that a true gold standard would make all this deficit spending impossible. Government [...]

Bernanke’s Actions Explained

A clever way to illustrate what Ben Bernanke has done to the country. Thanks to Reader Jaimie for sending this to my attention: Open Letter to the Chief Confidence Officer of the United States of America Dear Dr. Bernanke, My nephew is a bad kid. He’s into drugs, high-risk sex, a steady stream of brushes with the law… But he [...]

The Tragedy of Ben Bernanke

Sometimes a seminal event passes unnoticed.  Subsequent developments and hindsight eventually place it in proper perspective. Just such an event may have happened or be in the process of playing out regarding Ben Bernanke, Chairman of the Federal Reserve. Ben Bernanke’s Warning Mr. Bernanke expressed the following regarding the precariousness of our economic and financial situation (my emboldening): By definition, [...]

Why High Inflation Is Inevitable

How this economic disaster ends is something about which many of us speculate. Two extreme endings are likely — a sudden deflationary collapse or a period of very high inflation/hyperinflation which ultimately cripples commerce and resolves itself in a deflationary collapse. In either case, the deflationary collapse is another Great Depression. It is important to know which route will occur because [...]