OMG you have to see this!-Geithner Plan II

The AIG bonus fiasco will seem like peanuts compared to this.

The Gold Carry trade

We all know about the Yen carry trade and the aftermath of its great unwinding last year. And now we have the Gold carry trade, something the mainstream financial press have not picked up on. The bursting of US Treasuries bubble, the last great bubble on the face of this planet, will undoubtedly trigger the unwinding of this Gold carry trade. This is gonna be HUGE!

Two superb must read articles by Eric_deCarbonnel, read more HERE and by Adam Hamilton HERE

The Golden Pyramid

"The gold derivatives pyramid is a vigorous free market creature. It cannot be put down with a simple declaration that the paper is no longer redeemable in gold, as governments did with currency. It is a short selling scheme that has become a trap from which few short sellers will escape. Paper claims in the form of derivatives far exceed the underlying physical metal on which they are based. The trust, which balances this new pyramid, is based on false assumptions and lack of information. Paper gold claims have proliferated at a pace rivaling any government printing press. A surfeit of paper gold has driven down the price of the physical on which it is based." John Hathaway ,The Golden Pyramid 1999 .

A superb article on Gold and its nemesis, the world's Central Bankers

Full Article here

Quote of the Day

"If you don't trust gold, do you trust the logic of taking a beautiful pine tree, worth about $4,000 - $5,000, cutting it up, turning it into pulp and then paper, putting some ink on it and then calling it one billion dollars?"

Kenneth J. Gerbino

China flexes its muscle..Goodbye Uncle Sam

Grumblings from the Chinamen are getting louder by the day

Read more here..

China is getting nervous

After Bretton Woods, global currencies were backed by the Dollar which US Govt would have us believe was in return backed by Gold. Now that China has expressed a desire to explore a new global reserve currency backed by a basket of fiat currencies ( yen,euros etc. ) will this be better? Probably not. If other currencies are backed by the Dollar which is now essentially now backed by NOTHING, would they have any REAL value given that fiat currencies on their own have no intrinsic value?? The world should return to the Gold standard as it once was.

What does one TRILLION dollars look like?

From http://www.pagetutor.com/trillion/index.html


All this talk about "stimulus packages" and "bailouts"…

A billion dollars…

A hundred billion dollars…

Eight hundred billion dollars…

One TRILLION dollars…wow!

Let's put things in perspective here

Room for some short term upside moves

While I think the markets may print new lows into the 2nd half of 09, it seems the momentum to the downside is stalling somewhat. The problem is everybody seems to be a perma bear of sorts and widespread pessimism right down to the average joe tells me that at least for the immediate short term, maybe a playable counter trend rally is in the offing. Looking to long equities into April and position for Gold and Yen rallies come summer of 09.

The Fed shows its desperate hand

There is an old adage on Wall Street that no one rings a bell at major market tops or bottoms. That may be true in normal times, but as many have noticed, we are now completely through the looking glass. In this parallel reality, Ben Bernanke has just rung the loudest bell ever heard in the foreign exchange and government debt markets. Investors who ignore the clanging do so at their own peril. The bell's reverberations will be felt by everyday Americans, whose lives are about to change in ways few can imagine. More here...

America.....the enemies within.

"The idea that you have too much debt, too much borrowing and too much consumption and you're going to solve that problem with more debt, more consumption and more borrowing? These people are nuts." -Jim Rogers, March 2009

"Experts"

Steve Lieseman...you are a clueless overpaid muppet.

GOLD

Try to get your hands on some of these...Gold.. you can't print more of it, supply is limited, central banks have stopped selling them and it is indestructable. Gold...will be accepted anytime, anywhere and at any place. Fiat currencies during extremes, never. Gold is the perfect anti-dollar instrument in times of crisis and fear.

US is already technically bankrupt

There are only 3 ways in which the US can solve its 55trillion dollars worth of debt:

1. Actually pay them back. No way!!

2. Default on those debts. Unlikely.

3. Devalue the Dollar thus making those debts more manageable. This has already started with yesterday's move by the Fed.

Dollar Collapse on the way?

The Fed has effectively put up a GIANT signal for holders of Treasuries ( China most significantly ) to hit its bid with last nights 1.3 trillion gamble. Will the trickle become a stampede in the coming months as the world finally realizes the the Dollar is worth as much as toilet paper?

Peter Schiff continues to be right.

Peter Schiff is the President and Chief Global Strategist of Euro Pacific Capital. As a result of his accurate forecasts on the U.S. stock market, economy, real estate, the mortgage meltdown, credit crunch, subprime debacle, commodities, gold and the dollar, he is becoming increasingly more renowned.

He has been quoted in many financial TV channels like CNBC, CNN, Fox News, Fox Business Network, and Bloomberg T.V.. In Peter Schiff`s blog you can track all his investment and trading ideas for 2009 as well as all his public appearances on TV, video or in the press.

Peter Schiff was the keynote speaker at the annual Austrian Scholars Conference at the Ludwig von Mises Institute in Auburn, Alabama. Do not miss his insights in this video link.

Phony currency cracks together with a phony economy

The Fed's overnight moves to buy bonds with freshly printed Uncle Sam Dollars, which by the way was created out of thin air or a keystroke of the mighty supercomputers at the Fed, is just setting the wheels in play forces which the Fed will struggle to contain in the future. By debasing/devaluing the Dollar with more supply, why would one want to hold Bonds which is essentially a promise to pay you in devalued Dollars? I wonder if the Chinese Government is starting to pee in their pants as this is essentially a disaster for holders of Treasuries as inflation or even perhaps hyperinflation kicks into gear. The party is about to start..

Why not appoint Mugabe to the Fed? What is the difference anyway?

Let the Printing presses ROLL!!!

It seems like the Monetary Authorities are hell bent on throwing freshly minted cash at the problem rather than to tackle to root causes of it. With Quantitative Easing in full swing, is Competitive Devaluation of all major fiat currencies on the cards next? Gold surges overnight as Dollar tanks. Read more here..