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The Need For Speed - Never Greater

Marc Faber knows it. And so does anybody with an ounce of common sense who can see what is happening in the real economy - including the bureaucrats doing their best to fool you (obfuscate), or have you look away (distraction). The fact of the matter is our hollowed out fiat money economy is beginning to re-accelerate lower, creating the need for speed (re-acceleration) in currency debasement rates once again. Of course this time around, and as Marc Faber points out in the above, the entire system is the bubble this time, not just select asset bubbles - but the whole 'enchilada' - assets, the economy, everything. And while this was true back in 2008, and 2000, if only to a lesser extent, the upshot of this heightened revelation is this time around the bubble is in essence larger, meaning for this reason, if popped, the implications more profound. (i.e. as more people are now more dependent on the artificial fiat money economy / bubble.)

So, as the title of this commentary implies, because of the increased dependency on printed (make believe) money, (the amount of money in circulation is suppose to be a reflection of the real economy in order for the economy to be organically regenerative), the larger economy has never been more dependent on artificial stimulus, and this need is apparently approaching another geometric progression point. All we need is for one of the key asset bubbles to start deflating out of control again, more properly reflecting true fundamentals (not 'official' manufactured and misleading statistics), and we will have another rodeo on our hands, where central planners will be forced to either turn the screws on the money printing machines (it's a global affair), or watch all their precious bubbles deflate on a sustained and profound basis.

Of course, and as usual, central authorities all over the world (see US and China) are attempting to tighten monetary inputs at the moment, which is opposite to the prescription (for hollowed out fiat money economies that need ever increasing currency debasement rates), and could be the spark that ultimately causes the next credit bubble debacle, which unbeknownst to most, is apparently on its way via another margin debt meltdown. (i.e. seen by smart people not far off now.) Because growing divergences, profound overvaluations, and faltering leading indicators are pointing to this as a growing probability, which should become evident sooner rather than later, meaning if not this year, next for sure. Naturally with so many now aware of the stock market's stretched condition (because of Zerohedge), psychology may continue to twist out further gains before a lasting top is put in place - psychology - and a little help from the money changers.

This is why the plutocracy wants a bona fide dove in as Fed Chair, in the person of Janet Yellen, who will do anything to become the first woman to hold the position even if this includes destroying the currency. These people are not stupid (this could be argued). They know hollowed Western economy(s) will need ever-increasing easy money - and that this need has never been greater if their paper empire(s) are to be maintained. (i.e. some are already calling for this.) This is of course all wildly bullish for gold in the full measure of time because no matter how much the price fixers attempt to keep people away from precious metals, eventually it will become widely understood the currency can no longer be trusted, and the rush for the exits will be on. And this time a genuine panic for buying gold and silver should develop once people realize their ideas regarding 'wealth' are all wrong, and genuine wealth preservation becomes a concern.

Thieving bureaucrats (and the top 1% they serve) and floundering financial institutions will take care of that in short order ounce these same financial institutions start failing again, and asset confiscations both multiply and accelerate. That's right - not only will you have to worry about under-reported inflation rates and losing your job because of what these clowns are doing to you, now, you can worry about them coming right into your bank accounts when they need money to bail themselves out. One should realize this is just the establishment turning the screws on an apathetic and brain dead society, who are either scared, stupid, or distracted, where profits are privatized and losses made public. This is of course the raison d'tere behind the perpetual crisis and the seemingly endless manufactured serial embroils. What is it this week? Oh ya - it's the Fed Meeting.

And next week it will be something else to keep you distracted. Anything to keep your attention from what it should be focused on, not that the proliferation of attention deficit disorder (because of the constant bombardment of stimulus) has not accomplished this anyway. This is all part of the plan you should know - it's Orwell in practice. The Ministry of Truth and the thought police are hard at work every day to make sure you are thinking what they want you to think; and again, as per above, they want you scared, stupid, and distracted. That's certainly the way they want investors, and more specifically speculators. The bureaucracy's price managers want you scared about future prospects so that lots of expensive insurance is bought, which not only helps the bottom line for the big banks (the sellers), this dynamic keeps stocks (and bonds) far more buoyant than they should be when the money printing and algos squeeze out the shorts / hedgers routinely using erroneous data points.

It's all a big scam you see. Its manufactured finance using manufactured data to maintain our fake fiat currency based manufactured economy in order to make up for decline in un-needed manufacturing. Demand for manufactured goods is declining in both the West and East now, where China's ghost cities are the ultimate indicator (within a global context) - the human race has arrived - arrived at our Minski Moment of bloated overcapacity that Globalization has become. So I find it quite humorous when I read speculation the Fed might back off on dollar ($) debasement. I will be a monkey's uncle the day that happens voluntarily. No, better yet, a monkey will come flying out my butt (like in Bruce Almighty) the day that happens. So, don't expect to hear any serious talk in this regard tomorrow, not with housing crashing again. This is why I would have to deem a 'failure' in the Dow / Gold Ratio patterning as unlikely. (See Figure 1)

Figure 1
$INDU:$GOLD Chart
$INDU:$GOLD Chart

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