Things Happening Rapidly

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castlewp's picture
castlewp
Status: Gold Member (Offline)
Joined: Oct 7 2008
Posts: 304
Things Happening Rapidly

 From Mike Rupperts blog 

"Look guys, things are falling apart so fast I can't keep up. Forget that the Dow lost 300+ today. B of A is going down. Citigroup is going down... again. (Go back and see, I called this one too.) Global mining (of almost anything) has come to a virtual standstill. The business bankruptcies won't really begin for a week or two and they'll tsunami by March, April and May. Europe has declared itself in a Depression... I did note one interesting sign today. For the last four months or so, completely out of synch, as the Dow fell, so went gold. Not only counterintuitive but to me a sign that the panic was intense and that whoever is controlling the gold price suppression was thinking, "We can't let gold rise even three per cent aginst the markets. The panic is so intense that if people see even that spread it'll start a stampede." But today the Dow tanked and gold soared. Sign of a breakout?... Could be."

http://mikeruppert.blogspot.com/ 

pinecarr's picture
pinecarr
Status: Diamond Member (Online)
Joined: Apr 13 2008
Posts: 2244
Re: Things Happening Rapidly

Interesting castlewp; thanks for sharing!  I am also wondering about the pace of things.  I worry sometimes about  getting complacent dealing with daily life, and losing valuable time (opporunity) to prepare prior to the next big wave of SHTF.

DrKrbyLuv's picture
DrKrbyLuv
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Joined: Aug 10 2008
Posts: 1995
Re: Things Happening Rapidly

Nice call castlewp - I've been wondering too about the price of gold remaining flat while everything else is tumbling. Traditionally, gold has been a good umbrella to stay dry under during a rain storm. So what gives.

You mentioned a possible "break-out" - maybe this will only come when inflation begins to ramp up. Here is a spooky chart that seems to indicate that inflation-hyperinflation may be just around the corner:

"The above charts suggest that we are currently seeing deflation
concerns because banks are increasing their excess reserves faster than
the Fed is expanding the monetary base; in other words, all the
additional money printed by the Fed is getting soaked up by banks and
the consumer is seeing decelerating inflation. This trend is bound to
reverse suddenly and drastically once credit thaws, though. At that
point do you think the Fed will be able to drain excess cash from the
system fast enough to prevent massive inflation?"

http://eastcoasteconomics.wordpress.com/2009/01/20/inflation-vs-deflation-the-quantity-theory-of-money-m-v/

 

pinecarr's picture
pinecarr
Status: Diamond Member (Online)
Joined: Apr 13 2008
Posts: 2244
Re: Things Happening Rapidly

Wow, heck of a chart DrKrbyLuv!  We live in interesting times (yikes)!

machinehead's picture
machinehead
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Joined: Mar 18 2008
Posts: 1077
Re: Things Happening Rapidly
castlewp wrote:

 For the last four months or so, completely out of synch, as the Dow fell, so went gold. But today the Dow tanked and gold soared. Sign of a breakout?... Could be."

http://mikeruppert.blogspot.com/ 

It's happening again today, in what could be called a 'double-barrelled disconnect.' Not only is gold rising in the face of stock index weakness ... but also, gold's rising despite dollar index strength.

When gold defies the usual intermarket correlations, it may be trying to tell us something. One interpretation -- which has hit the news already -- is that since gold has just hit RECORD HIGHS in some European currencies, gold is now rising against ALL fiat currencies.

Just because the US dollar is temporarily the world's favorite brand of toilet paper, it doesn't change the fact that there's a global oversupply of toilet paper. It takes more brightly-colored squares than ever to buy an ounce of something real. Or to put it the other way, a year or two down the road, a gold coin will buy a mountain of toilet paper of any 'sovereign brand' you choose. 

 

 

machinehead's picture
machinehead
Status: Diamond Member (Offline)
Joined: Mar 18 2008
Posts: 1077
Re: Things Happening Rapidly

p.s. -- OMG, gold was up $25 when I started typing the post above ... just before lunchtime on Friday. After posting the message, it was up nearly $40, banging on the $900 barrier again.

A second, somewhat lazier interpretation, is that gold knows something we don't. For instance, something big happening over the weekend. A big bankruptcy, a big bang. The usual shenanigans ...

Dogs_In_A_Pile's picture
Dogs_In_A_Pile
Status: Martenson Brigade Member (Offline)
Joined: Jan 4 2009
Posts: 2606
Re: Things Happening Rapidly

Doc -

One possible explanation for the EXCRESNS jump is the Fed is prepositioning to facilitate removing cash from the system.  Not so much to shrink the monetary supply, as much as setting up for controlled dispersal through a controlled credit thaw. 

As (if) credit thaws and money starts trickling out, with all of these reserves locked up, perhaps the institutions and the Fed will try to control the thaw by closely monitoring how much "ice" they take out of the freezer and put on the kitchen table.

Heck, the Fed has been in bed with the banking cartel since day 1 - if this is what they are planning on doing it might actually be a glimmer of hope for responsible action.

Or I could be wrong and SHTF is looming......

DrKrbyLuv's picture
DrKrbyLuv
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
Re: Things Happening Rapidly

Interesting idea Dogs.

One interesting point, under the Emergency Economic Stabilization Act/Tarp, all reserve requirements were eliminated. Banks no longer need to hold any reserves, 0%. The accumulation of these "reserves" is telling us that the banks have been unable or unwilling to find worthy and wanting borrowers as they already had an infinte ability to lend.

I think they are misleading the public by calling what the banks are accumulating, "reserves." This implies that there is actual money accumulating - there is not.

 

 

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