King world news - Egon von Greyerz [Archive]

gunDriller

17th December 2012, 08:47 AM

inspired me to look at KWN -

interesting interview with someone -

"In 1982, the Air Force’s Thunderbirds Air Demonstration Team was at an air base in Nevada, preparing for one of their shows in Arizona. They were practicing what is called a four-plane line abreast loop. The loop begins with the planes climbing together to a high altitude. They would next roll over backwards and then descend straight down toward to surface at a very high speed. The last phase of the stunt was to pull out of the dive and level off at 100 feet.

Tragically, that never happened. It was initially believed to be pilot error, but a subsequent investigation showed that it was a mechanical failure involving the lead plane. True to their training, the other pilots followed the lead plane into the ground. All of the brave and accomplished pilots involved died that day."

looks like at least 1/2 the nation is going to follow Ben "Thelma" Bernanke and Tim "Louise" Geithner over the cliff.

no matter WHAT deck chairs Boehner & Obama re-arrange on the Economic Titanic.

from the Greyerz Interview -

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/12/14_Two_Important_Charts_For_Gold_%26_Silver_Invest ors.html

"By Egon von Greyerz Founder Matterhorn Asset Management

Plus ça change, plus c'est la même chose

December 14 (King World News) - No, nothing new. More QE and gold goes down. In addition, another downpour of economic news that confirms the total inability of central banks and governments to provide any credible solution to what is a guaranteed road to perdition.

Investors worldwide are continuing to buy debt that yields nothing or virtually nothing from bankrupt issuers. The only thing that is guaranteed is that the bond market, which is the most over overvalued market in the world, will default. This is particularly the case with the government bond market where government deficits are increasing so fast that the only buyer remaining will be the issuer of the bonds....

< EU Stuff >

On the other side of the pond, the Fed did what was expected and announced an annual asset purchase program of over $1 trillion. With this money the Fed will buy worthless bonds that will make their balance sheet worth less than zero. Since the Fed is private, maybe a hedge fund will one day be paid a handsome amount to take it over. But the Fed is not alone. Most central banks are doing the same. It is just that the US figures are so much bigger. The $1 trillion+ that the Fed will print next year is of course in addition to the US budget deficit of $ 1.5 trillion or so.

The US now has a National Debt of $16.4 trillion and over $225 trillion of Federal entitlement liabilities. With 125 million people on benefits and 22% unemployed the situation is more than serious it is desperate.

With this desperate economic situation, most people expected a different reaction to the Feds money printing announcement on 12.12.12. But we should have learnt by now that markets always do what they should do but not when we expect them to. Gold and silver went up on the Fed announcement but sold off afterwards and continued to be under pressure. Let us just remember that all we are seeing are little wiggles in a major secular bull market in the metals."

short version -

stack it high
stack it deep
stack it wide
stack it long
don't tell anyone about the stack

P.S. interesting excerpt from Norcini about the "moral context" for the Feds' machinations -
"You are going to see the same thing repeat itself over and over again. When you look at the decline in the value of the currency there in Rome. A common denominator in all of these civilizations is you first see it in morality. The moral structure or virtue of that empire declines.

Its ethics begin to decline and decadence comes into society. That reveals itself in all aspects of society. It also reveals itself in the monetary system of those societies."

BINGO !