Philman

Why Bernanke Should Be Fired

Here is a very interesting situation that is happening right now.

Soon after this article was written, and as Senator Bunning and others were blasting on similar grounds, including an emphasis on the fast falling dollar, we suddenly are seeing a dollar rally. Hmmm...sounds a bit like artificial manipulation to me.

It is astounding that these banksters have gained almost total control over the world economy. They can move the value of currencies up and down at will, at least in the short run, and they can also do the same to gold and silver. Back in September, 2008, they blackmailed Congress with a collapsing stock market, in order to frighten them into passing TARP.

Now, they are trying to erase the valid arguments against Bernanke, by temporarily pumping up the value of the U.S. dollar, and causing the price of gold to fall deeply. Congress needs to keep a "stiff upper lip", ignore the antics of the international banking cartel, and reject Bernanke's bid for a second term!!

I am sure that, once he is confirmed for another 5 years, the collapsing dollar will return. These guys are complete thieves who belong in jail (at minimum). In the long run, there is no doubt in my mind that the international bank cartel wants heavy or hyperinflation, in order to bail them out of all the bad debt they are holding. Bernanke is their tool, and, in order to keep him in power (to preserve their own power), they are willing to do anything, including messing up their fake stock rally, with a temporary dollar rally!

Will the Market Crash?

In other words, very good timing...although, today, the market is up. Interesting and strange that one day should be so much the opposite of another...but, I suppose that, after a fall like yesterday, there is bound to be a bounce of some kind...

Will the Market Crash?

Hey, Bud, maybe a lot of bears are now out and growling, but this particular article must have been written over the last weekend or on Friday last week, because it was published by S.A. and readable by me at about 4:30 AM eastern time, on the morning of the 17th, before any triple digit falls on the DOW!

On Aug 18 01:08 AM Mad Hedge Fund Trader wrote:

> rtyu. Wow! One triple digit move down in the Dow, and all of a sudden, everyone is bearish.

Will the Market Crash?

Looks like everything is playing out, today, just as predicted by this author. We shall see what the next few weeks bring.

Cash for Clunkers May Cost Up to $45,354 Per Vehicle

Laughing, I don't doubt that you are laughing all the way to the bank.

Where the heck do you think this money is coming from? The sky? Every dollar that your father was given by Cash for Clunkers, and Chrysler, was stolen from the pockets of our children and children's children. We are irresponsibly building up a national debt that cannot be paid back. That will result in complete dollar collapse and economic collapse eventually.

The first $4,500 came from the "Cash for Clunkers" program, the second $4,500 came from the Chrysler bailout money. You people are so selfish and self interested, it disgusts me! Obviously, you are okay with stealing from other taxpayers. I'm not!


On Aug 02 01:36 PM Laughing wrote:

> who cares its called helping out the poor people by giving them a
> little extra cash, what a lame article. I talked my father into
> buying a new car, he traded in his 1981 station wagon, rust and all,
> got $4500 plus $4500 more for buying a Crystler, wound up paying
> 18k. I gave him the money to do it, I didn't need a second car either
> but was worried ever since he told me about how the brakes went out
> while he was driving it and he had to downshift and use parking brake
> just to stop!!! You tell me where else anyone could have got 9k
> for a car worth $400 (and who would have even bought it, trust me!)?
> Its a great program, he would never have bought a car otherwise and
> now I have a ride next time I'm in town visiting.

Cash for Clunkers May Cost Up to $45,354 Per Vehicle

Your blog name is fitting, Mr. Machavelli, as it appears that you believe "anything that benefits me is good economics". The article describes the true cost of foolish programs like this. One thing left out, however, is the adverse economic impact upon used car dealers and their customers.

The "Cash for Clunkers" program is yet more welfare for the well-to-do. People who aren't rich enough to qualify for the hefty loans needed to buy a brand new car (and the cost of a new car is hefty, even with government giveaway money) are sh-t of of luck! They pay taxes, and their money gets given away to richer folks who just need a little incentive to buy new cars.

Meanwhile, a lot of quality used cars are going to be junked, driving up the price of used cars for the rest of us! Fat cats, like Machiavelli, obviously don't give a damn about anyone less fortunate than you. So, just like his namesake, he does whatever is good for him, without concern over the consequences for others. This article is excellent in bringing out, at least in part, some the consequences of government waste and overspending.

Cash for Clunkers is bad economics and bad for America!


On Aug 02 12:25 AM Machiavelli999 wrote:

> This guy, like most people on this site, has no clue about how economies
> work.
>
> I won't even go into the details. HORRIBLE ARTICLE!

Cash for Clunkers May Cost Up to $45,354 Per Vehicle

Sorry, my friend. You obviously didn't read this article or the Edmunds.com article. Let me quote from Edmunds:

"Edmunds.com's research shows that typically 200,000 vehicles worth less than $4,500 are traded in for new vehicles every three months."

Accordingly, Edmunds is talking about ONLY the type of vehicles which would qualify for cash for clunkers. Anyone who has even a passing knowledge of the car market knows that far more than 200,000 used car trade-ins happen every month, let alone every quarter. The used car market is far larger than the new car market, and, even now, the car makers will sell about 10 million vehicles in this depression year.

You should read things before you launch your claims of authors throwing BS. Because if you don't, you will be throwing BS yourself, which it what you've done here.

Cash for Clunkers May Cost Up to $45,354 Per Vehicle

You are slinging BS by taking the words out of context. I am sure you know, just as I do, that when he says "low mileage" he means low miles per gallon. Everyone knows that all the clunkers are old cars with high mileage. That is a given. They would not qualify for the program if they weren't.

Also, the article states that the 200,000 car figure data comes from Edmunds.com, which, apparently, has indicated (and they are about the most expert source of such data that exists) that this is the normal number of "low mileage" (or "low miles per gallon" old cars) that are traded in for new "high mileage" (or "high miles per gallon" new cars) every 3 months.


On Jul 31 01:43 PM dancingdad wrote:

> Avery must be a republican because he does math like one. His arguments
> are like the ones Bush made going into Iraq. First note he said
> 200,000 low mileage cars are traded in a normal 3 month period. (
> I'm willing to bet a large percentage of the clunkers coming in are
> high mileage ones.) He then assumes that all the clunker cars replace
> all the normal trades (bad assumption). His faulty logic leads him
> to conclude that 222,000 clunkers - 200,000 normal trades so we get
> 22,000 additional trade activity for $1B. All wrong, all worst case
> assumptions, typical republican BS.

Cash for Clunkers May Cost Up to $45,354 Per Vehicle

You guys need to learn economics. You either didn't read the article or can't understand the concept being discussed.

The math is absolutely correct. The idea is that a certain number of cars/trucks would have been sold anyway - Edmunds says 200,000 clunkers are traded in for fuel efficient vehicles EVEN WITHOUT GOVERNMENT SUBSIDIES!

The cost to the government of a "stimulus" is NOT $3,500 - $4,500 per car, because many buyers are getting the money even though they WOULD HAVE BOUGHT ANYWAY, without the program.

At $4,500 per extra car, the program costs the government $45,354 for each extra sale, above those that are normally sold anyway, exactly as the article states.

As Equities Rise, the Dollar Will Fall

Contrary to popular belief, if the market were really rising because of its own merits, the dollar would be rising with it, because there would be a demand for dollars with which to buy stocks. That was the situation that prevailed in the late 1990s when, in spite of record trade deficits, the dollar rose because people wanted to buy U.S. based stocks.

This rally, however, is artificially created, by the PPT banks, on behalf of their Federal Reserve slush fund. They print dollars, hand them over to derivatives dealers to buy long on index futures, the arbitragers go into action equalizing the cash market to the futures, and the stock market goes up...and the dollar goes down. It will continue as long as the Fed keeps printing cash, and will stop as soon as the Fed stops. But, then, probably, the market will crash, because real investors don't want to buy this market.

The Coming Economic Collapse, Part 2

I don't think he is correct. The 40% is after discounting for inflation, and the 2600% is the gross increase in government spending without accounting for inflation. I think the real figures would show that government spending has outstripped government income by about 3x over that time period.


On Jun 08 06:52 AM Marco Hickey wrote:

Nice article. Can you tell me where you found the information about
taxes rising only 40% versus government spending rising 2600%? Thanks.

Fed Intervention, Market Response Confirm: We're on the Path to Hyperinflation

Homer,

The Fed has no choice. The momentum building in gold and silver will soon be unstoppable. They will probably crash it a few more times, but, in the long run, the manipulation is doomed. A critical point will come in their dollar manipulation, when the production of dollars gets to the critical point that a chain reaction will come about, imploding the dollar, and breaking gold and silver free from the constraints the fed would like to impose.


On Mar 22 12:54 AM Homer II wrote:

> Simit, you said "...as the Fed's interventionist behavior will make
> rational analysis difficult and perhaps fruitless." and yet you
> recommend holding precious metals? What do you call the drop in
> metals prices last August if not "interventionist behavior" by the
> Fed? The government well know if precious metals are allowed to
> seek their true level, that the Dollar will fall inexorably as PMs
> rise. So, they "meddled" to suppress the natural tendency for Gold
> to rise beyond $1000/oz and forced it down into the $700s to crush
> the appetite of the wise investors... and prop up the Dollar to buy
> some more time.
>
> So, do you think now, the government will allow metals prices to
> float up freely, speaking metaphorically?

Fed Intervention, Market Response Confirm: We're on the Path to Hyperinflation

Ken, you say "We are not on the path to hyperinflation. The market even says so.

Can you possibly be so naive? The market was also telling us, in October, 2007, that boom times were ahead, with a DOW of over 14,000. Let's see...where is the DOW now? People like you are cheerleading when it goes above 7,000!

We are not only about to see hyperinflation. More accurately, we are going to see a hyperinflationary depression of the same type and kind that was seen in Weimar Germany from 1919-23. But, it is good that we still have some foolish people, like you, out there. It allows me to load up on gold and silver, without paying $2,000 per ounce, quite yet...

Buy stocks, Ken! I need someone to sell mine to!

Fed Intervention, Market Response Confirm: We're on the Path to Hyperinflation

Hmmm...deflation? Unfortunately, other than in government reports, and the price of gasoline, housing, and a few other basic commodities, I'm not seeing any. I just went out to eat, today. Less diners. Much higher prices. Last week, same thing. Went to Macy's two nights ago for their 1 day sale. They raised all the jewelry prices by about double, only to claim that they were taking 50% off.

No, I'm afraid there is NO deflation on the horizon, and none happening now. What I am seeing, in my everyday life, is INFLATION, with capital letters. I am also seeing stores and restaurants closing. But, the ones still open, are charging me higher prices. I don't know where the government gets its numbers on the CPI. I think they invent them...


On Mar 21 07:35 PM ddtuttle wrote:

> We are currently experiencing deflation on a global level. World
> net worth has dropped something like 50%, an amount that dwarfs the
> amounts actually "created" by central banks. We are in a deflationary
> spiral that show no signs of stopping.
> When prices finally stop going down we'll have assets worth a fraction
> of their former value and many times the corresponding money supply.
> That will be a recipe for inflation, but from massively deflated
> values and prices.
> Until then cash (and gold) are king. Once the inflation starts, then
> you'll want to switch to commodities (and gold).

Why Core Inflation?

Using "core" inflation ignores the fact that we all need to buy food, drive our cars, and such. The misery index will determines how much stuff we buy, the demand for better wages, the way we vote, and the price of gold. Core inflation is not sufficient to predict that. The Fed should really be abolished, as advocated by Jim Rogers, but, if it is to exist, it should look at overall inflation, not just the so-called "core" with oil and food stripped out.