Suicidal Tapering Signals Bernanke’s Demise
Approximately one month ago; I wrote a piece entitled U.S. Prepares To Detonate Market Bubbles. The gist of that piece was that after pumping-up several new bubbles in the U.S. economy (and taking the Wall Street fraud-markets to record-highs) that it was time for the Banksters to detonate those bubbles – and cash-in (on the “short” side) on the way down.
Even more specifically, it was suggested in that piece that Federal Reserve Chairman B.S. Bernanke was being set-up as the Scapegoat for the market-crash to follow. Today, Bloomberg substantially bolstered this prediction with a headline of its own:
Fed Message Muddled as Misunderstood Taper Meets Slowing Growth
Here we have one of the most loyal defenders (i.e. pumpers) of Helicopter Ben now throwing him an anchor in his hour-of-need. Truly there is “no honour among Thieves.” The gist of Bloomberg’s article? Not only has Bernanke done a terrible job of “communicating” his proposed “tapering”; but he’s now preparing to ease back on the money-printing at precisely the wrong time.
The hilarious irony here, of course, is that it is media shills like Bloomberg which ultimately assume most of the responsibility for “communicating” the strategies of the various suit-stuffers in government and/or the Fed. Compounding Bloomberg’s hypocrisy; it has religiously supported B.S. Bernanke decisions over the past 4 ½ years to pull-back from any Exit Strategy (previously), and Bloomberg itself has been (had been?) one of the most-zealous cheerleaders in advocating “tapering” at this time.
But when the U.S. economy goes down; there will be only one “captain” remaining on board. All of the (other) Rats will have already deserted the ship which they (first) built and (then) sunk.
So the ending is already clear. The U.S.S. Titanic is about to be intentionally sunk (again), and B.S. Bernanke’s “fingerprints” will be planted all over the crime scene. Let’s take a closer look at the Script – since doing so says more about the Liars in the Corporate Media than it says about the U.S. economy (and Bernanke’s role in destroying it).
Bloomberg makes a good case as to why all of its own “tapering” hype has been absurd (and dishonest) from Day 1:
They [the Federal Reserve talking-heads] will probably lower their estimates for growth this year and next for the third consecutive time…What’s more, annual inflation has been running at least half a point below the Fed’s goal since December. And while the unemployment rate is falling, that’s mainly because some Americans are leaving the labor force.
According to Bloomberg – today – there was never a good reason to begin “tapering” at this time (and the six months of its own relentless hype which preceded it). Talk about Revisionism…of its own propaganda.
As always, Bloomberg’s economic submissions require translation. As has been clearly demonstrated in previous commentaries; there hasn’t been any “economic growth” in the mythical “U.S. recovery”. Among the many reasons this is obvious fantasy is that growing economies require more energy – not less – and energy consumption in the U.S. economy has plummeted during this supposed “recovery.”
While Bloomberg and the other Liars in the Corporate Media claim that U.S. inflation is “too low”; back in the real world soaring inflation is threatening to spin out of control at any minute – due primarily to the grossly excessive money-printing of the U.S. And the statement that “some Americans are leaving the labor force” is (shall we say?) an understatement.
The reality is that “civilian participation” in the U.S. economy (i.e. employment) has plummeted to a 30-year low during this supposed recovery. There are less people working in the U.S. today than when the pseudo-recovery began; meaning (as a matter of simple arithmetic) that there has been less-than-zero (net) job-creation in the U.S. all through the pseudo-recovery – i.e the U.S. economy has continued to lose jobs all through this make-believe recovery.
However, Bloomberg is attempting to torpedo Bernanke here – not itself – and so what is most important in its hatchet-job analysis of Bernanke’s “tapering” is not what is contained, but what Bloomberg chose to omit.
Even if we assume that every word about the U.S. pseudo-recovery has been true, then it is already substantially longer than most “recoveries” – i.e. it is already past its expiry-date. But this is no ordinary pseudo-recovery.
According to the admissions of Liars in government and media alike, this has been an “anemic recovery”. More translation is in order. This “anemic recovery” is the product of unprecedented, continuous monetary stimulus. It’s identical to someone parading around with a crippled child on their shoulders, shouting “It’s a miracle! The boy can walk.”
Thus even if we accept every lie about the U.S. pseudo-recovery as being the absolute truth, we are left with the following paradigm. We have an “anemic recovery” which is being 100% propped-up by insanely excessive money-printing, it’s already past its expiry-date, and now Fed Chairman Bernanke is being ordered to kick the props out from under this “anemic recovery.” Fall on your sword, Helicopter Ben, like a good soldier.
This “Last Supper” for the previously-revered B.S. Bernanke is already vividly telegraphed, but it gets even more laughably obvious. Since virtually Day 1 of all the “tapering” hype (promoted so zealously by the Corporate Media itself), assassins within both government and media have been openly speculating about Bernanke’s replacement as Chairman of the Fed – led by Barack Obama himself. Et tu, Brute?
At the top of the list to fill Bernanke’s shoes is yet another loyal foot-soldier for the One Bank: Larry Summers. Among the most-recent items on Summers’ resume is being president of Harvard University – where he made a very hasty exit, after managing to lose $1 billion in financing less than $2 billion of debt. Nothing like replacing one Patsy with another Patsy.
What does this mean for precious metals (and precious metals investors)? We answer that question with another question. What does this mean for the U.S. economy?
The clue comes in the title of this commentary: “suicide.” What happens when a bankrupt, hopelessly crippled economy, already mired in a Depression deliberately detonates various, paper asset-bubbles – the product of several consecutive years of the most-extreme money-printing the world has ever seen? Can you say “bail-in”? I knew you could.
With many U.S. pensions already about to be erased by state/local governments (as was just done in Detroit); Bankster thievery in the U.S. will almost certainly focus on bank deposits and equity market accounts. With the U.S. dollar itself already, obviously worthless; all paper-holders in the U.S. will become extremely nervous (to put it mildly) with any Smart Money in the U.S. simply shunning all paper, entirely.
What does that leave for U.S. investors (i.e. its economic refugees)? Precious metals.
Note that in making a prediction about the destination of (U.S.) capital that this is in no way a prediction about precious metals prices – expressed in the worthless paper of the One Bank. As was explained in a previous commentary; when dealing with worthless currency (of any kind), all prices are absolutely meaningless.
In our current, fraud-saturated markets; “price” is merely an arbitrary number which is the result of the criminal manipulation of markets. It has no meaning (at all), except as a temporary exchange rate – “temporary” in the sense that as with all fiat paper “U.S. dollars” won’t even exist a few years from today.
With price being absolutely arbitrary and unpredictable, all focus of precious metals investors should be on availability. The question is not so much “what will the prices be” one year from today for gold and silver, but whether there will be any real metal to be found – anywhere other than via private auction or black-market sales?
Note that in either private auctions or black-markets that the “official” paper prices for bullion from our Crime Syndicate governments will literally “have no meaning”. The real price for precious metals will be what real people pay for real metal – not some meaningless/arbitrary number dictated by Banksters, reported by the wholly dishonest Corporate Media.
Jeff Nielson is co-founder and managing partner of Bullion Bulls Canada; a website which provides precious metals commentary, economic analysis, and mining information to readers/investors. Jeff originally came to the precious metals sector as an investor around the middle of last decade, but soon decided this was where he wanted to make the focus of his career. His website is www.bullionbullscanada.com.