Release The Kraken!

Today’s FOMC statement unleashes the dogs of hell upon the dreaded enemy of all bankers…..deflation. Anyone that believed the world’s economies are recovering surely has figured it out now. Just as in 2007 when Ben was asked directly regarding housing and the economy (stating he saw no problems on the horizon), today was another exclamation of just how serious the problem is about to become (not that it is good now). When the Money Printer in Chief tells you that interest rates will be held to zero until late 2014 extending his previous time line by a full year…..then you better wake up and smell the coffee. Hell is coming and it is happening right now. Ben declared war on deflation but more importantly he is telling you Europe is about to explode. Greece will default by 75% soon……This still will not be enough for their solvency…..that is just how bad the situation is. What the banker’s realize is the moral hazard they have created with the hundreds of trillions of derivatives is a ticking time bomb of unpredictability in an unwind of a default in not only Greece but Italy or Spain etc debt. They are scared to death and Ben just told you. IT IS THAT BAD! 


The problems with moral hazard is the unpredictability of their repercussions. However today’s statement has some moral hazards that are VERY predictable. First of all precious metals have now been given a green light to invest in now. It doesn’t mean they are going straight to the promiseland but for the long term holders of a core it means that you can add on weakness now. It is now possible to look forward to new highs this year in PMs and perhaps in the miners. In fact holding onto fiat now has been declared null and void by Ben. He was even quizzed at his own press conference today regarding the impact that his ZIRP policy would have on savers and with only some stuttering and hesitation he stated the impact would be minimal………SERIOUSLY! ….Do you really expect anyone with half a brain to swallow that Ben?  Imagine trying to make it on CDs of 200K total with 1% return if you are 75 years old living on only SS and your savings. He knows this and that is just how bad things are in the global banking situation. We are unraveling and you and I are playing craps on the deck of the Titanic while they are lowering the lifeboats. I’m still hoping my retirement accounts make it through but I give it less than 50-50….If my timeline is right I “should” make it through this summer. It’s a gamble.

I hope most of you have made some arrangements if things get tough. Food and water are simple enough. I won’t advocate guns unless you are very familiar with them. My better advice is to concentrate on relationships with family and friends. These unions are more important for your benefit and theirs. Enjoy all of this internet information but realize your time is finite on this mother earth…so enjoy it and help others.

I’ll publish charts tonight.

Read more at Great Depression 2