Did U Think The Ponzi Scheme Would Last?

Dollar Update: Inflation Forces Are Brewing

Great article except that you completely missed the truth of the matter. First of all the dollar is fiat currency and it is measured against other fiat currencies like the Euro and the Pound and the Yen. The economies upon which these currencies are based are even weaker than that of the US. Look at Japan, Debt:GDP is 170%! The UK's housing bubble was 20% worse than the US' on a relative measurement and the Eurozone is full of PIGS who have borrowed themselves into oblivion. Even Germany is screwed. While it is in vogue to beat on the dollar and the US, history will record that other countries were in even worse shape at this time.

Second, the USD is the world's senior currency and in a deflationary crash it will strengthen. We already saw this begin to happen during the 1st wave of the crash. The second wave of the crash was actually a rally which weakened the dollar. Now we will see an even stronger run into the dollar as the third wave of the crash rolls in. This one is going to leave a mark.

European Economics Can't Break the Dollar Deadlock

There is so much bearishness against the dollar right now that a significant upward turn is coming soon. Are the Euro, Pound or Yen really any better off than the dollar? No, they are not. Take the Yen (please). Debt in Japan is 170% of GDP with a declining workforce and an aging population who will need an increasing social safety net. How is that currency every going to strengthen against the dollar from here? And is not England doing QE too? The Eurozone will be lucky not to revert to a war zone when the PIGS finally get slaughtered. Even Germany is not nearly as strong as people believe.

The greenback will strengthen as all the global, dollar denominated debt fails.

Letter to Her Majesty: Suggestion for Low-Tech Apparatus for Economic Horizon-Scanning

Man what a long winded way of saying"Madam Queen, the whole economy of the world is a credit driven Ponzi scheme and you, my lady, are right at the epicenter of it. You know full well why it happened: that scam called fractional reserve banking. You know exactly how and why it happened because it was your henchmen that did it! Fractional reserve banking is specialty of your county which pressed it upon the US back in the early 1900s. you and your blood lines have been using this scam for generations."

"I believe that banking institutions are more dangerous to our liberties than standing armies . . . If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] . . . will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered . . . The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."

—Thomas Jefferson, The debate over the recharter of The Bank Bill, (1809)

WAKE UP AMERICA! Stop making it so complicated. It's a fvcking SCAM, always has been, always will be until we return to honest money and do away with fictional reserve banking.

Current Market Turmoil: You Can’t Explain 'Stupid'

I will hang onto my worthless paper in order to buy real gold from a real sucker who still thinks the worthless paper has value.


On 2008 Sep 16 02:16 PM regeya wrote:

> Ponzi Scheme, feel free to send as much of your worthless paper to
> me as possible!
>
> Honestly, is it just me or do the von Mises followers sound like
> anti-Marxists?

Mark-to-Market: The Bogeyman of the 1930s Is Back

Mark to market is essentially a policy for telling the truth. If your system collapses if you tell the truth then it is in fact a scam of some form or fashion. In this case it is a credit pyramid scheme.

Those who want to quash M2M believe that everyone is as stupid as they are; that you can fool all the people all the time and than a scam can go on without end.

Sweeping the cat $hit under the rug does not make it go away. It simply ensures that a mess that you should have held your nose and cleaned up immediately is allowed to stink and fester endlessly. It is an attempt to avoid doing the right thing so that someone else will have do do it later for you. It is dishonest and immoral as it generally means that folks who had nothing to do with creating the mess are now left to clean it up. It is an attack on the financial prosperity of our children. It is selfish and sinful.

Just because something appears to work does not make it right. Madoff's con appeared to work for a long time as did Enron, LTCM and all the other obvious Ponzis. The credit Ponzi days are numbered. It's time to man up and do the right thing before it turns into WW3.

Six Companies with Sustainable Dividends

MCD will roll over soon. Learn to read a stock chart because you can lose a whole years worth of dividend in a single day of capital losses.

Inflation vs. Deflation: A Matter of Money Supply and Demand

In my post I meant "x" as in "times" instead of % when referring to leverage. BSC was leveraged 32x, etc. That will teach me to proof read better before hitting "publish".

Inflation vs. Deflation: A Matter of Money Supply and Demand

Just saw your comment. You get it too. People are negatively rating your comment even though you are right. That shows how few people understand the big credit Ponzi that our moneymen run.


On Aug 16 08:34 AM CLH wrote:

> How can people carry on such a meaningless discussion--inflation
> and deflation? Debt elimination always destroys money. The small
> amount the Fed prints has no effect because it is never used.
>
> Dollar up and gold and commodities down --big time.

Inflation vs. Deflation: A Matter of Money Supply and Demand

Only Schweizer seems to get it: in a fractional reserve banking system the money supply consists of the monetary base + credit (debt really). Of the 2 components, the credit/debt is by far the bigger piece.

Each time a loan is offered and debt is accepted, the money supply grows. Ever since Greenspan effectively removed all the safeties to allow his banking pals to lever up and get rich quick, many institutions are levered 30, 40, 50. BSC was 32% and FNM/FRE are around 50% (a number I read, I did not do the math myself but I believe it given they are both massive Ponzi schemes).

Now that all the credit/debt is out there the economy is crashing because anyone who was going to take on debt has done so and now everyone it rushing to pay it off or to default on it. Both of these acts has the effect of reducing the money supply. This is the very definition of a deflationary collapse.

So you see, the fed is largely out of control of the money supply at this point because if banks will not lend and people will not borrow then there is no way the fed can print up enough money to make up for the dwindling credit portion of the money supply. Bernanke tried, but China told him to stop "or else". Everything else beyond these basic facts falls to the level of importance of noise in the equation. Bernanke is cutting off the QE in Oct. Guess what that means?

Why the Dow Is Headed to 6000

On Jun 29 09:51 AM TradingHelpDesk wrote:
> Elliott Wave International are a lot more pessimistic than you, and
> unfortunately they are very, very good at forecasting.

I want to make sure people get the full story behind your post. While EWI is indeed predicting a very dire long term outcome with the Dow going well sub 2k, they also believe that this sucker's rally will hit a higher high this year before it enters Primary 3 down (AKA the big wipe out). They know that stocks don't go straight up or straight down. They predicted this sucker's rally almost to the freaking day.

Six Signs Economy Is Turning the Corner

I'm going to let you in on a little secret. The global financial system is bankrupt. In addition, when you talk about taxpayers paying for this or that bail out you are badly mistaken since our government has no money and neither do taxpayers. No, the bailouts are not being paid for they are being financed with more debt. This debt absolutely ensures that the US is a debt slave going forward and thus cannot recover. This is a debt death spiral.

Let me give you another hint. The trend for the markets and the economy is still down. This is but a monster sucker's rally within the broader meltdown but within 2-3 months the meltdown will resume. Elliott wave followers call this rally Primary 2 and they predicted it would happen in advance and then called the start of it nearly to the day. Folks like Prechter said it would be the biggest rally of the meltdown yet and that it would fool many sheeple into believing the meltdown was over. In reading your post I guess he was right again.

After Primary 2 ends will come Primary 3 - a massive collapse which will lead to lower lows. It will occur because the debt that has already gone bad and yet has been hidden on bank balance sheets will begin to stink so badly that no amount of kitty litter will cover it up. Once the stench becomes unmaskable then the truth will come out and it will crash the system. Again, the debt is already bad its just that accounting tricks have been allowed to cover it up and kick the can down the road. But you can't fool all the sheeple all the time and sheeple are beginning to awaken.

Just remember back to the crash of 29-32 and all the times that people thought it was bottoming and turning around. Each time they were wrong.

Welcome to the great depression of 2009.

Goldman's Success: Put Down Those Pitchforks

"We're back to "normal.""

So normal is where banks should make outsized profits for producing nothing of value for the economy while handing us all outsized risk that is guaranteed to blow up in our faces some day. Is that what you are saying?

People like you do not know what a real economy is supposed to look like and thus you think this is normal. The 50s were a real economy and banking was a 3-5% dividend business. They were not superstars. They were stodgy and glassy eyed and careful and conservative. Now we have been sheeplized to believe that cowboy banking is normal.

This will end badly because there are too many people like you that have not one clue as to what is right and sustainable and what is wrong and guaranteed to blow up in our faces.

Investing in Shipping Stocks: 'Maximum Pessimism' Is Here

The global economic collapse is just starting and it will get much worse. If you think a $3 stock is cheap, wait until it gets to 30 cents.

GM Shares Just Won't Quit

What are any shares worth which do not pay a dividend? Nothing. The whole stock market is a big game of hot potato - handing worthless assets back and forth until they burn you. People trading GM shares are proof positive of this. As long as there is someone willing to buy them in hopes of finding a greater fool then there will be a market for them. Is it really any different than when Enron was bankrupt and everyone continued to trade its shares as if they had value. More recently, anyone who doesn't know WFC is completely insolvent is a damned fool. Yet the shares trade in the 20s. I was warning people on the Yahoo chat board for AIG that it was going into the sub $5 range when it was trading in the 40s.

Until they stop people from trading they will trade because this is all gambling now, not investing. You want more evidence that this is all just gambling? You can trade based on how much rainfall you expect or chances of snow. Are there any tangible assets associated with that? NO! It's just gambling like the rest of the ponzi stock market. It will collapse in a couple years as all the suckers get completely fleeced and start to figure out there are better ways to spend one's hard earning money than in a corrupt gambling pit which is lined with preordained winners backed by the government.

No One Saw This Economic Crisis Coming?

The Dow has been crashing in terms of real money, gold, ever since Prechter wrote that book. He was right about everything. Try not to be such a simpleton!


On Jul 12 06:57 PM mkreisel wrote:

> That book came out exactly at the bottom of the previous bear market,
> October 2002.
>
> Those who went short back then would have their pants margin called
> as early as July 2003.