Pretty much. Financial armageddon.

Wouldn't the unlent excess reserves be pushing the velocity down most recently?

Also gold has been going up as the velocity as shown on the graph has been going down. Did you think about that?

In fact you should be worried about the decrease slowing down and perhaps reversing. Central banks may have wiped clear a lot of the losses and debts but will banks start flowing this credit around as they used to again? Central banks are enabling it to happen.


You can't say this without saying why. It's a worthless statement.

Even if the banking system collapses and takes most of the credit system down with it, I still see gold going up as it is safety from the collapsing system even with deflation and the like. Also this wont happen, such a circumstance has been diverted when governments and central banks subsidised banks. Now governments and central banks will continue to throw money at the problem until their own systems collapse.

I should mention that there are several definitions for hyperinflation. All I will say is that I think there will be inflation to come rather than deflation in the foreseeable future.

Phone software is not the same thing as a phone model. As a phone model the iphone has done well.

If that is the current state of mind children have then it is scary.

You forgot US treasuries which is a big one to forget.


Of-course USD will be down, Ben Bernanke made a speech remember?

That Joe Smith example was just to explain that the money is from nothing.

The excess reserves appeared when the federal reserve replaced the banks hidden losses (Through their derivatives) with cash, and banks are just leaving a lot of this cash around. What is your explanation to what happens to these excess reserves next?

And that is only part of the story, money has leaked out elsewhere.

That is the top rated comment. :O

What do you think to this? http://mises.org/daily/5574/On-the-Brink-of-Inflationary-Disaster

What I mean is (I'll take an example) if the fibonacci trading techniques state that at a certain point an uptrend will reverse and people follow the techniques then it will reverse because people will be selling at that point wether or not there is any proper reason to. Does the market make the fibonacci patterns or do the fibonacci patterns make the market?

All the money is going to the bankers and the connected insiders.

If you are correct in that the federal reserve will stop pumping money into treasuries, which wont happen of-course, then those treasuries will fail eventually and any semi-intelligent person would stay far away.

Around the world people will continue to wake up to the horrid fiat and the safety of gold. Gold is a rebellion against the devaluing fiat currencies and the fiat frauds.

Didn't the Japanese central bank do the first package of purchases which was labeled quantitative easing? I'm not overly educated on the Japanese situation. It seems to me that the culture in Japan is a saving culture which the Japanese couldn't fix even if they were paying people to take on debt. The debt culture has completely worked in the USA.

You do realise that as the government debt increases in the USA, you need more money to support it? Where would this continuously increased amount of money come from if it comes from the savers of the world? The only way to support the ponzi scheme is to fund it with a central bank. It is a ponzi scheme because to pay off the old debt, they use new debt. They pay off the old creditors with money from new creditors. It gets increasingly worse with interest payments which will have to increase to encourage new investors until the scheme justs collapses.

The test is stupid, very stupid. If lower on the graph represents higher civil liberties and more right respresents more economic liberties such as property rights then I'd go here:

If the federal reserve stops creating money and financing the US treasuries, the US government would have no choice but to remove the spending deficit and very likely default on the treasuries. With treasuries no longer seen as a safe haven, gold will be viewed by more people as a safe-haven and so either way don't you think gold would be pushed up from the US side?

Edit: Did those fibonacci trading techniques work before they were invented?

http://www.youtube.com/watch?v=EpATNp5DjYI

I thought I'd share this video.

If APPL does crash then I'd certainly think about buying.

I didn't listen to the podcast it is too long. I started listening to it. The host is clearly bearish for the USD.

The website is wrong then? What has this to do with anything?

You mean bearish.

Commodity prices are largely supported through leveraged speculation so it is obvious that the few commodities exchanges can manipulate the prices easily. Prices can be shoved downwards harshly if they get the timing right for margin rises.

If central banks begin selling gold in massive amounts, that would be quite a scare but I on't think that will happen.