Bwahahaha!

note how the Marketwatch article came out 15 min after BAC tanked.  criminality at work.

ah.  thanks.  didn't need the headline.  just saw the chart tank.

this is deflation at work.  those excess reserves can't possibly come out from the banks.  look at the stock asset destruction of the banks esp this AM.  they NEED those excess reserves to stay alive.  they might not be enough...

there goes WFC as well.  i doubt much QE will be forthcoming.

something very bad is going on at BAC right now.

the contraction in the shadow banking system of securitized debt argues against those same securities effectively acting as money.  they're contracting from defaults:

6.62 from 4.18 = 58%.  sorry off by 2%

no such thing as a parabola at these bombed out levels.

a few recent bullish factors:  squashing of the alt chains, Gavins patches to prevent similar vulnerabilities like DDoS protection and Geist Geld fix, bottoming out in sentiment via selling capitulation, Congressional mention of Bitcoin.

Top of the morning, everyone!  Awaked to the beautiful ramped price up what 60% or so off the bottom?  Love the smell of Burning Bears!

from your posts you seem to take offense to anyone who disagrees with you. 

if the Satoshi client is so messed up why don't you do something about it besides wasting so much time here bashing anyone who is positive on the technology?  your constant complaining is annoying.   create your own client or if bit coin is such a bad thing create your own alt chain and divorce yourself from this forum where more positive ppl of Bitcoin are surely to congregate much to your chagrin.

at the peak of the 2008 bubble securitization fx'd almost like money but this has not been the case since the financial crisis. this is where inflationists miss the deflationary argument.  they think these bad debts still represent liquid money and not debt.  most of these securities have become illiquid b/c everyone knows they represent bad debt and not money; which is why the Fed had to buy most of these bad securities from primary dealers.  but this monetization actually contributes to a deflationary spiral as they drive interest rates down to ZIRP thus disintermediating the interest rate function.  John Hussman writes very well on this subject.  all the Fed has done is replaced interest bearing securities with 0% cash and the banks make even less than they would have. they have no good investment options to put this cash into except maybe commodities since 2009.  even this has now come to an end. NIM or net interest rate margins get crushed hurting the banks which borrow short and try to lend long.  the Fed interventions further creates a deflationary spiral by encouraging speculators to pile into the debt mkts trying to front run the Feds actions that drive up the price of these bonds.  they don't care about the yields.  this steals productive capital from the private real economy and the lower interest rates perversely drive up the existing value of the fixed rate debt overhang of many corporations which they have to reflect on their balance sheets.  these same speculators would rather own things like UST's which are guaranteed by the US govt and are highly liquid moreso than gold which is why you're seeing the TLT go up while gold struggles.  these same speculators and banks won't lend this same money to consumers like you and me b/c they know we're toast; we have no good economic options available to us in aggregate going forward.


no idea what you're talking about here.


no its not if i understand you correctly here.  you're claiming existing debt is equal to money.  this is wrong.  during the good times debt instruments were so liquid they were almost considered like cash; no more.  the debt has become bad debt which is now defaulting and decreasing the virtual USD supply and thus the total amount of USD's in the system thus driving up its value.


perhaps the Fed regarded this as a small price to pay to reinflate the markets.  doesn't mean they are linear thinkers as well.  at this point they see the danger in letting it ramp to $2000 or higher.

these crises are occurring b/c of constant Fed intervention causing boom bust cycles by suspending the business cycle.


deflation will prevent this from happening.  we're seeing the start of this right now.


my OP and this entire thread has been clear where i stand.  deflation, the end of the gold bull and a multi year rise in the USD.

thats not right.  thats your interpretation of what i've been saying.  i'm saying the CB's of the world led by the Fed will actively try to save the USD world reserve currency system by targeting the gold price. 

oh, so you're a follower of Nagle's?  that explains everything.  i don't agree with him either.

please point out my "emotional pleas".  my original post to you was written in respect of your self proclaimed expertise in the technical arena.  i actually do wish to hear your views on the perceived weaknesses in the protocol but instead got back a venomous emotional response to a simple request.  i pointed out my interpretation of Gavin's post which is contrary to yours but still accurate in my opinion.  your response makes me question your integrity on this issue.

wow, and i thought i was actually being nice to you. 

who's being emotional?  contrast my post with yours.  sounds like you may have had some alt chain coin at risk.

100% of bit coin supporters incompetent, fly-by-nights & fraudsters?  who the hell are you?  thats quite an insult to everyone around here.  clearly you can't provide any concrete examples that i nicely asked you for.

you're developing the proper perspective.  this is exactly why the Weimar marks just given to me are STILL worthless after all these years and despite the age.  those paper marks were not debt and could never be cleared from the economy thru default.  USD debt however is vaporizing as we speak decreasing the amt of virtual USD's.


this is correct.  Fed manipulations lead to extreme bubbles/busts.  gold is at an extreme and will crash.  USD short interest is at an extreme and will skyrocket.  the interest on the short end of the yield curve is now negative!  investors are now paying for the privilege of buying UST debt.  why?  b/c it is the most liquid mkt of all.  gold bullion IMO is the most illiquid mkt.

gold bulls are making a big deal about Operation Twist and how the extra liquidity is going to drive gold much much higher.  price action tells us differently  in fact, i invoke Antal Feketes paradox; the mere fact that the speculative players know that the Fed will be entering the long end of the mkt encourages them to front run and buy more UST's at lower prices to then flip them to the Fed and American taxpayer.  hows that for a paradox and non linear thinking?  this will just make matters worse for the general economy b/c the gov't UST mkt is acting like a huge black hole vortex sucking all capital into itself thus killing business and the real economy.  


precisely the dynamic you espoused above; the bottoming out of the impending bust cycle when the Fed and gov't will be forced at the bottom to print even more and thus cause a HT.  but this will take about 5 yrs before we get there.

i was listening to FSO and the Ryan Puplava interview on the way into work this AM.  he said that the scramble for USD's is so intense that banks are now lending out their gold to get ahold of USD's.  how's that for a brain twister?  THIS is how bad the USD crunch is.  you see it all over the headlines now with CB's having to coordinate to provide USD liquidity.  problem is they can't do it and they don't really want to do it.  they want to save the USD.

in fact this gold lending will eventually lead to gold selling as i predict.

also the famous Volcker quote that the CB's failed back in the 1970's to "suppress the price of gold" as being a mistake.  why can't the gold bulls take that statement for what it is?  what it is is a lesson to CB's to never let that happen again b/c they lost a lot of money in the HT of the 1970's.  this time they won't let it happen again.  what ever happened to the accepted theory that the Fed used the gold price as a warning sign that their profligate activities were getting out of hand?  everyone assumes they've forgotten that tenet but i say they haven't.

this is the 4th break of gold below $1800.  i think it could very well be its last.  added to my GG short at 52.34 this am.

The $DXY successfully tested the 76.20 mark and is ramping hard today.

great!  now change the title of this thread to reflect that.

none of this has to do with Bitcoin directly.