We are now short as of yesterday and long the dollar as this epic fraud continues. Government regulators, central banks and bureaucrats are lining up to see who can push the "lie while clenching your teeth" button first. Apparently, the feeling is that the first one out has the best chance of being right for at least a couple of days and they feel like there is no alternative other than to lie and LIE REALLY “BIG".
The reality is that, just as Mr. BURNanke’s harebrained policies stoked leverage in commodities and equities when the SP500 was in the 1100’s causing a drug induced move to 1370, the arab spring and fueling the sovereign stress in europe…the guy did not really print money at all…he BURNED it - hence my name for him. And also, hence the dollar shortage that I have been talking about for a long time. Compared to the dollar shortage, physical GOLD and SILVER look plentiful in relation the real demand for delivery.
Using his illustrious powers and keen faculties, Ben got the markets to the highest leverage to equity level in history and just as the leverage peaked…the unwind required by it built its inevitable base and top. The crash from that base was swifter than nearly any I have ever seen…and the result is that by forcing his credit injections in the veins of delusional drug addict bankers and cronies who have already destroyed their neighborhoods and families, double or triple the money BURNanke attempted to print has been directly and totally obliterated. Additionally, the indirect effects are that many people’s non-debt money (Cash) investments has been significantly impaired. The tune of this devastation according to my rough calculations is somewhere around 17 trillion dollars of asset destruction that would not have occurred had BURNanke and his merry men not done anything with their now infamous QE2 initiative. These guys do not print money they BURN it while dropping it from helicopters - what’s more it never gets to the ground.
So, what we get from this is that the lies only make things worse and that addressing the truth would have been far more constructive and less stressful. This realization is not apparently occurring now in europe and for the central planning bureaucrats who are hell bent on making this orgasmic response to their previous failures into their biggest and most epic mess and failure of them all. The dollar shortage will continue to expand despite the best efforts of these bumbling fools who pretend that they can create dollar liquidity in appropriate amounts to quench the thirst for them. Ben does not have enough power, friends or money to accomplish his goals - he has BURNed all of them already.
7 hours ago
