you should use their ignorance to accumulate more Bitcoin for yourself.  they will be forced to buy at higher prices. 

no, they pay their interest payments minus expenses back to the Treasury.  but the banks hold alot of consumer debt like mortgages.  do they want that devalued?  no.


who says that the UST bond market is going to cooperate with them in terms of low interest rates?  as i pointed out above, the TNX has been rising and we could be on the verge of the bond vigilante awakening.  this is going to, in aggregate, force the stock mkt bubble to collapse as money is diverted to UST's to try and control interest rates.  whether they succeed or not is irrelevant; there is going to be a selloff in other risk assets.


the only risk asset that the Fed has significantly been able to reflate to prevent a catastrophe has been the stock mkt.  i see that ending right about now.  the collateral damage has been significant in terms of rising food and gas prices.  even the latest gold price rise is damaging in that the inflationists have directed their money there and not the real economy.  the latest rise to 1794 was a red hot thermometer warning that Ben is out of control.  Mr. Market is going to punish Ben and relegate him to the annals of the worst CB ever.  if the Fed could control the economy like a machine you have to explain to me why their efforts failed twice in the stock market since 2000 and in the housing market.  you also have to explain why we're seeing deflations across Europe, Japan, and the ongoing collapse of the China miracle.

who is Andy Greenberg?  http://www.c-spanvideo.org/program/AndyG

as to how important was this Cybersecurity Conference? well, Janet Napolitano was the leadoff speaker, head of the DHS. Andy was the Keynote Speaker.   she had to listen to his talk  .  no applause for him.

the essence of the deflationary theory is that the debt contraction will overpower the money printing thus decreasing the money supply as i define it:  money + debt extended.  Ben can say he will print to eternity but he is constrained as i believe the PTB won't let him destroy the reserve currency status the US enjoys.  the reserve currency is after all why the US remains #1. you're already seeing the UST market pulling in the reins the last few months as reflected by the recent significant rise in TNX.  if Ben keeps pumping up risk assets the bond vigilantes will/have attack.  i think the banks have already offloaded much of their bad debt to the Fed and and want to increase the value of their remaining debts extended to corporations and the citizens.  they do this via deflation, not inflation.  don't even begin to think that Ben will inflate the US debt away; its not in the best interests of the banks.  there is a dichotomy of interests btwn the ppl and the corporate/financial/political elite.  when one wins, the other loses IMO.  i always think in these terms.

gold, IMO, is at the end of a 13 yr bull market and was the last risk asset to inflate due to the longterm USD devaluation.  i think the USD devaluation process is coming to an end and you will see the USD skyrocket.  we saw this for a brief period during the 2007-9 crisis but the deflation was not allowed to clear the bad debts.  the banks used the last 4 yrs to shed what they could to the Fed and rebuild their balance sheets with free money from Ben.  inflationists think in linear terms; that the future will be like the past, as in straight up.  i believe in cycles where the long 40 yrs plus of inflation will be followed by a significant deflationary cycle. 

i think Bitcoin is going to help enforce this deflationary correction.  i know that its counterintuitive that Bitcoin could rise while gold falls in deflation.  however,  its bull is only a couple of years old and its born of, from, and for the Internet.  its too good of an idea and there are too many ppl who want it to succeed.   its too practical not to be used and its democratic nature ensures its success.  the fixed supply will cause it to rise in value and act as a significant store of wealth as well.

the Internet, BTW, is contributing to the deflation as it enables the flow of information and bits which is enabling price discovery which so far has been confined to technology but which is now spilling over to risk assets like stocks, bonds, RE, and commodities.  you guys need to read "This Machine Kills Secrets" by Andy Greenberg.  i just received my copy yesterday and i'm 40% of the way thru it already.  it shows the future by explaining the past.  the history of the Cypherpunks/Wikileaks and hacktivists is critical to understanding how Bitcoin represents the culmination of a movement to revolutionize money and privacy on the Internet.  its a great, riveting read and helps explain why Bitcoin is impenetrable and destined for great things.

no hostility at all.  its just that this physical/paper disparity argument has been such a central tenet of your entire argument for the last year.  need to get the facts straight.  

i can hear Hank Paulson now "Order please, we need order!"  Order my ass...

Translation:  "Small fry don't panic, we need to let the Big Boys out first please.  Move aside!"

no shit Sherlock.  you can throw in The Tungsten Effect as well.  not to mention a little Deflation.

*and don't tell me you've been arguing this all along*

and you guys thought i was off topic 

is the "gold folding like a cheap suit" analogy still considered trolling?     molecular?

so is tungsten.

"Tungsten particle sizes ranging from 10 microns to 0.5 micron were compared with carbon of 0.24 when burned in air. It is shown that tungsten burns as well as or better than carbon; however, the increased density specific impulse achieved with tungsten as compared with carbon verifies that tungsten as a high energy additive to hypergolic fuel gels is superior."

http://www.freepatentsonline.com/5747665.html

looks like we have a higher low on the daily and we're bouncing.

gold=1723

time to recalculate.

ah yes, the sweet smell of napalm in the morning...