To: carranza2 who wrote (71607 ) 3/6/2011 7:40:49 PM From: TobagoJack 1 Recommendation Respond to of 217618 one can try :0) just cleared from e-mail tray From: j Sent: Mon, March 7, 2011 6:50:02 AM Subject: Re: Comments - Week of March 7 S, We are well beyond the event horizon; the boundary beyond hope n prayers. The fate of the empire is at the stake, hyper inflation kindling ready. Nearby, just in case and only to make doubly sure, the diaper deflation stake is also ready, and sharp. Should fed normalize, debtors get staked by diaper puncturing staking. Should fed qe 3, 4, ... Creditors go to hell, but not before debtors. As the reserve currency is simultaneously a credit as well as a debit, both asset n liability, it goes down for the count regardless of hyper vs diaper. Only issue outstanding being whether we experience hyper inflation flame before or after the diaper deflation puncturing. Whatever else, the cities must burn, because folks cannot be expected to go quietly to financial-economic demise. The premise is we are in a once in every several hundred or even a thousand years terminus of progression. Ahead be dying screams and n birthing cries. Opting out is not an option. The only uncertainties are (i) where first, and (ii) when. The why is set. Nearly to office. "Sent via CSL BlackBerry." From: S Date: Sun, 6 Mar 2011 14:04:43 -0500 Subject: Re: Comments - Week of March 7 Anyone care to comment on the following hypothetical (not my own) mostly concerning gold and interest rate direction? It's not the only scenario out there, but it seems plausible to me..... It’s odd, Gold should be above $1,500 per ounce by now given what’s going on in the world. By all counts demand for the precious metal is increasing dramatically. Central banks became net buyers of the precious metal last year. China gold purchases rose five fold. Indian purchases of bullion are believed to have hit a record last year. Even the US mint ran out of Gold Buffalo coins in September 2010. So what gives? Why is Gold not EXPLODING higher yet? I have a sneaking suspicion the market is beginning to discount some MAJOR changes in the US Federal Reserve… changes that NO ONE seems to be talking about. Those changes are: 1) There will be no QE 3. 2) Bernanke will be dumped as Fed Chairman. 3) Kansas Fed President Tom Hoenig will be the next Fed Chairman. Regarding #1, the whole QE game is over. I know that most folks believe Bernanke will issue QE all the way to infinite, but the actual likelihood of this is low given the public’s outrage over the continued bailouts and the like. Obama and the rest of Washington can sell out to the Wall Street banks all they want. But when the US starts experiencing the sort of turmoil that is rocking the Middle East (and it will, mark my words) the QE game will end. Regarding #2, there are “three stooges” involved in the Great US Swindle occurring today. They are, the big banks, the politicians, and Bernanke. When the public starts rioting which one of these three is going to be sacrificed? Bernanke. The big banks have been in power in the country for most of its history. They might get broken up or rearranged, but the elite banker class will always exist no matter what reform. Ditto for politicians. But Bernanke? He’s just an academic puppet. He can be replaced by another figurehead while the system remains in place. Indeed, I fully expect Bernanke is going to be canned as Fed Chairman before this term is up. Whether it’s Obama making a “Hail Mary” play to attempt re-election by trying to look like he’s actually engaging in reform or some other political move, market my words, Bernanke is the one who’s going to be sacrificed. Regarding #3, Fed Kansas President Honeig recently uttered a series of absolutely INCREDIBLE remarks concerning the US Federal Reserve. He said the US has “deeply” undermined free-market capitalism and that the TBTF banks pose the “greatest” risk to the economy. These statements are absolutely extraordinary coming from a Fed insider. Remember, these guys are all ultimately politicians, so this kind of aggressive is a clear indication that Hoenig has seen the writing on the wall and is distancing himself from Bernanke as much as possible in order to present himself as a potential future Hawk Fed Chairman who would be called in to reign in inflation much as Paul Volcker did in the ‘80s. However, before all of this happens, I fully expect we’ll see another bout of inflation similar to that which occurred in the 70s. You can already see this happening as inflation hedges explode higher across the board