At the same time Ben Bernanke is telling everyone he can "control inflation" and not to worry, commodities of every sort are at an all time high.
And yet many in the media seem convinced it has nothing to do with the unraveling of the world reserve currency. Just look at the long list of bullshit excuses.
http://www.washingtonpost.com/wp-dyn/content/article/2011/02/09/AR2011020903759.html
(the weather sucks, ethanol is taking all the corn... blah blah blah)
Here's what's really happening.
1. Uncle Benny prints a shitload of money.
2. Speculators know the free money can't last forever, and move their money into Commodities and foreign investments.
3. The stock market is flooded with free money, creating a "recovery". Only in this strange universe of inverse logic can the stock market rally while money is flowing OUT. It's like raising prices while sales are down 50%.
4. Inflation surges around the globe.
http://www.businessweek.com/news/2011-02-09/stocks-fall-on-inflation-concern-treasuries-wheat-corn-gain.html
http://www.thehindubusinessline.in/2011/01/18/stories/2011011852680101.htm
5. The elected officials try to cover it up by changing how inflation is calculated.
http://online.wsj.com/article/SB10001424052748704013604576104351050317610.html
6. A Cocaine Bear buys gold and silver, places it in his safe, stops by the liquor store on the way home, collects mail.
Now onto the next subject.
This again from our heroes at ZeroHedge.
http://www.zerohedge.com/article/portuguese-10-year-bond-yield-hit-fresh-lifetime-highs
With all the discussion over how "stable" Europe is in the past month, one might actually take the European bankercrats' word at face value. And nothing could be more hazardous to one's health than believing a corpulent gentleman from Brussels. Because while Herman Van Rompuy is literally sending out haikus via twitter, his continent continues to burn. Today, the Portuguese 10 year hit a fresh lifetime high yield (and low price for those who failed bond math 101). One would think that with virtually everything backstopped by the ECB, Europe would show at least some resiliency. No such luck. In fact, things are getting progressively worse as Germany continues to procrastinate on the one decision that has any hope of being at least a stop-gap interim solution, namely a united bond issuance authority. Instead, Europe continues to go all in on its failed EFSF contraption which will work for a few months, and then will have to be bailed out with an even bigger CDO: an EFSF3? The only question around this time is who is indicating (wink) that they are long the equity tranche? As for Portugal's completely non-viable interest rate: just close your eyes and stick your hand in the sand. Trust Bernanke- it works for him (and he is a Ph.D.).
So far Ireland, Iceland, Greece and soon Portugal and Spain will be suckling at the teat of Germany, who was mocked for it's modest approach before the financial meltdown.
Add all this up with the Tunisian meltdown and the Egyptian riots and it's an interesting time to live.
So do I have any advice for you? Buy Gold, Buy Silver (the physical metal, not the paper crap) and prepare for judgment day. If it doesn't happen at least you will have been prepared, unlike the masses of sheeple who expect the government or Uncle Benny to bail them out.
Oh wait... the next bailout is already on the way! Get ready for QE3 folks.
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