Loading ...The CDNX should be called the Canadian Vulture Exchange. Everybody is dead and just rotting; the only thing left is the vultures circling above. This is just a random example of the carnage: Crosshair Exploration
From top to bottom in a little less then a year it lost 98% of its value and this one is not just a one off.
Thank you for posting that chart of the CDNX. That is definitely the picture of a market that has crashed.
I have long been wary of distinguishing the Fed from the Treasury Dept. I know they are separate legal entities, that the Fed is a privately owned institution and the Treasury a govt. agency and that they trade between each other as if they were in a commercial relationship. But they have common aims in that they are both involved in controlling the US, and to a certain extent the world, economy, and they are run by the same people. No, I don’t mean that Hank is Ben without a beard and toupee, but that most of the top people come from the financial institutions that own the country – the old boy network runs very strong here so that to all intents and purposes they are one organisation.
There is no doubt that they are trying to inflate out of the mess, but they can’t seem to get traction. And now I think they have run out of time. Bugos says “Inflation of the Monetary Base is leveraged by fractional reserve lending. Should the banks actually start to lend again, we could very well see hyperinflation in the U.S. over the next 18 months.” 18 months!! Who thinks it will hold together that long? And one should also look at the other side, if the banks don’t start lending, and continue to see their capital base eroded, fractional reserve unlending means deflation.
I think he spends too much of the article discussing the shenanigans of the Fed, Treasury, Congress etc. – they are taking it upon themselves to do what they wish, carte blanche, and relying on bureaucracy and ignorance to get away with it. Most politicians are completely ignorant of anything financial: all they have to say to them is “that is authorised by the Dead Dingo’s Donger Act S335 (b) (iv) that you voted for in 1997, Senator” and they’ll say “yes, of course, I remember now”.
They do what they want. Don’t try to understand how or why. Just work on the effect.
The way they are trying to do it would only lead to hyperinflation in assets within eighteen months (if it works). No money will filter through to wages, and thus CPI, this way. I cannot see how they could get hyperinflation in CPI within that timescale as it takes too long to wind up major infrastructure projects to employ people and inflate the economy with spending money.
More and more I think the financial system will implode like a black hole. All savings and most investments will be wiped out. Only one thing will survive.
..its from Midas..and the link only works for Subscribers
Interesting Point….and Like you say….right now…nobody really has a clue what this will really look like…In flation De Flation or Cave Flation
What about we just all agree that Debt has Killed us……Like a Video game…its Over
…so now…Nobody owes anybody any thing….
Whatever you have Now…is yours….free and clear…!
….Everybody start over with what you have !
…..No Mortgage…No Car Paments…No Bank Accounts…nothing….No Debt…
…No Banks…..
…Not fair you say….Of course its not fair..unless you are in debt up to your eyeballs..but its over…we gotta start somewhere
….You got a toothache…I got a drill….bring me a sheep !
….must be a way to make that work….
Sums it up nicely (didn’t know British credit cards were being refused in Europe though). Any “solution” will only last 5 to 7 days? Bit optimistic I think. The rate cut didn’t last six hours as a boost!
He implies something I’ve been trying to work out. Although he says the Fed are now pumping like mad, he finishes with “The jig is up, either you are out of the paper system or you go down with it. There will be NO paper survivors, either you are a charter member of the next banking system or you will be leapfrogged and left behind.”
So, if the banking system collapses completely, what is left? There will be no inflation, as there will be no paper left, nor any mechanism to get it out there anyway. Deflation will have lost meaning, as it is measured in paper terms too. Anybody with paper folding money will benefit from deflation in consumer prices, as the masses will continue to recognise it for a while, but overall, we will be living in a vacuum, financially. Nobody will be paid wages or salaries, because bank transfers won’t work ….
Re: Bill H and fiat banking system
Yes, it’s pleasing. With the US$ so high it’s quite good. Perhaps gold will be priced in another currency like the Yen one day. Does anyone have thoughts about that?
Miss Maddogg and his ew stuff. Yo Maddogg! where are you?
A definite maybe. Anybody who claims that they (gold shares) will do this, or that, has to be ignored. Nobody knows anything in this market. But my GA says hold off for the moment.
Where the hell is Aurum when you need him ?
The only wrinkle I’ll throw in there is that I think wave C is usually the longer wave in duration and right now it’s very short on the time scale which means we could go lower and the correction would play out longer - at least 6 more months. EW, know enuf to be dangerous (me and you).