KNOW THIS... WASHINGTON HAS LEARNED IT'S "LEHMAN LESSON" WELL...
TOO WELL!
...NOTHING WILL EVER BE ALLOWED TO FAIL AGAIN...
WE ARE IN THE "SERIAL BAILOUT" PHASE OF THIS WIEMAR LIKE HYPER-INFLATION.
IN SHORT, THE FED AND WASHINGTON...AND OBAMA HAVE DECIDED TO HYPER-INFLATE THE ECONOMY TO "SAVE IT...."
EXACTLY LIKE GERMANY IN THE 1920'S...WHICH WAS THE REAL CAUSE OF THE GREAT DEPRESSION A FEW YEARS LATER...WHICH MADE "THE 40'S" INEVITABLE.
THEY HAVE IN EFFECTED BEEN OFFERED THE "WIEMAR OPTION" AND THEY ARE GOING TO GRAB IT WITH BOTH HANDS...
REMEMBER, CIVILIZED NATIONS DO NOT HYPER-INFLATE UNLESS THEY ABSOLUTELY HAVE TO...
HOW LONG CAN IT GO...? TO 1000%...10,000% ONE MILLION PERCENT...?
WELL, AT SOME POINT, THE SYSTEM COLLAPSES AND YOU HAVE A MASSIVE SOCIAL UNREST SCENARIO...
WE ARE NOT THERE YET... BUT OBAMA SHOULD SERIOUSLY CONSIDER RESTORING THE SOCIAL SAFETY NET ...AS JOB ONE...! ASAP!
ULTIMATELY, WE END UP WITH A NATION WHERE ALL COMPANIES AND ALL SERVICES HAVE BEEN NATIONALIZED... A NATIONAL SOCIALISM IF YOU LIKE...!
IF GOLD GOES TO 1000...PERHAPS THE DOW CAN GO TO 10,000 AGAIN...
ANY PERCENTAGE INCREASE IN GOLD...WILL "ALLOW" THE MAJOR AVERAGES TO INFLATE ACCORDINGLY...
WHAT'S THE LIMIT...
WELL IF GOLD AND OIL GO BACK TO LAST SUMMERS LEVELS...AND GAS IT'S $4++....AND THE DOLLAR STARTS BACK DOWN...AND GOLD BACK UP...
THE FED WILL BE FORCED TO RAISE RATES...
REMEMBER THE REAL START OF THE TROUBLE WAS $4 GAS IN THE SUMMER...THAT WAS THE CANARY IN THE DOLLAR'S MINESHAFT THAT SO MANY PEOPLE MISSED...
SO THE RATE HIKE IS COMPLETELY TIED TO THE LEVEL OF GOLD NOW... FORGET THE DAILY MOVES IN THE DOLLAR AND OIL...THEY ARE DISTORTED BY THE MAKRETS FOR VARIOUS TRADING REASONS.
THE DOLLAR'S TRUE "VALUE" IS BEING EFFECTIVELY MASKED BY THE "LIQUIDATION PANIC"...
SOON THE LIQUIDATION PANIC WILL ABATE...AND MUCH OF THAT LIQUIDITY WILL RUSH INTO GOLD...
THE ONLY OPTION TO KEEP A RUN ON THE DOLLAR FROM HAPPENING WILL BE HIGHER RATES...
BOTTOM LINE:
IF THE FED GOES TO ZERO ON FED FUNDS...?
WITHIN 6 MONTHS....THE FED WILL BE AT 10% IN A HEADLONG PANIC TO "SAVE THE DOLLAR"...AND THE US ECONOMY FROM NASCENT HYPER-INFLATION.
