Stock Markets about to crash? Derivative markets contracting

yea i think he meant it the other way around

Yup load up on hard assets folks

"If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered..." ~ Thomas Jefferson

Will be 10-1 exchange or worse guaranteed!

They inflate the currency up (devalue it), then they return backing to it with commodities they own, gold, oil, nat gas, etc, then they "Deflate" the currency by offering to buy it back at 50% (or whatever) value.

Imagine how valuable those commodities would become?!?!?

You must understand, they've been buying up the American and World economy for decades with worthless paper...when they return value to that paper, they will double the value of the things they've been buying up for years...

Last Edited by Saddletramp on 11/15/2012 11:05 PM

Get with the days.... Bernanke has you all confused. Bernanke probably made that quote famous to fool all the sheeple.

Germany, zimbawee, Mexico, Iraq, Mongolia, Argentina, Venezuela just a few.....

You really don't understand economics do you?

1. The Federal Reserve is finding it increasingly difficult to get people and foreign countries to buy our treasuries.

2. Therefore it is buying the unsold securities itself.....and creating the money to do so.


3. One day.....other countries will lose total confidence in the U.S.,.......and sell all the U.S. Securities that they hold......all at once.


4. Our govt. will have to default or create money to fund these exchanges.

5. The Chinese, etc. will then quickly dump their dollars from these transactions and buy something else.

6. As such, you will have a tidal wave of dollars coming home to roost.......about 20 times the amount in circulation now.

7. The dollar will crash in value and prices will overnight explode in this country.


8. It will not be like the steady, traditional inflation of the past.......but a rapid doubling, tripling, etc. of prices as the U.S. dollar collapses.

You think hyperinflation is just inflation...but you need to look at Argentina's collapse, and the collapse of the Soviet Union. It's the currency becoming exponentially less valuable at the same time the markets are deflating (going down and I mean DRAMATICALLY DOWN)...Hyperinflation is not an overheating of the economy, it's a loss of confidence...

Last Edited by Saddletramp on 11/15/2012 11:09 PM

Really? How does money contraction lead to inflation? Take a long look at the US Debt clock. How does QE3 lead to inflation. QE3 causes bond yields to lower strengthening the dollar and us bonds. In 2008 10yr bond yields went from 4% to 2%. What happened in 2008....was it deflation? Maybe Americans need to come up north for their education eh?

2008 was deflation, but that was in the markets (they dropped and within a couple of years they were back up to pre crash levels). What you have to understand is, the American dollar has lost .98 of it's worth since 1913 (that's the inflation Jefferson is talking about!)...the real deflation is coming...

And, Inflation (in the keynesian systems) is growth. Hyperinflation is total loss of confidence...two totally different things...

They plainly can't create artificial growth anymore through monetary expansion in this chronically low interest rate environment. They don't have any dry powder left, but they will never lose control of the system they created. So they will allow some hyperinflation(loss of confidence) to occur, and then they will restore that confidence through backing the currencies again...

With commodities they bought with worthless paper of course...

All part of the cycle...

Last Edited by Saddletramp on 11/15/2012 11:25 PM

It is only until deflation occurs and all you chumps will be scared out of metals and stock. The economy will slow and a credit agency will downgrade the bonds to AA or maybe even A. Yields will jump 5% and stocks will jump 1000%. Same with metals. Deflation then inflation. Whats the point of having inflation now when everyone is prepared.

The inflation has already happened..the dollar has already lost 98% of its value in the last 100 years...

doesn't someone post this daily.

Last nights Dow graph looked like an echo cardiagram it looks like somebody was trying to put a false bottom in but they failed Friday could be quite interesting.

I guess it depends on your timeframe. 100 years lol. im
talkin about a month or so.

Ya but that was when the credit derivative market was increasing. I wonder why they call it derivatives. It really has nothing to do with calculus.

I'll put it to you this way OP. Think about what FDR did when he banned the public from owning gold. He told them to bring in their one ounce gold eagles for a nice crisp new $20 bill. And it didn't seem like a bad trade to folks, after all, gold was worth $20 per ounce. But then when he had gotten all of the dupes to bring in their gold, and he had given out a ton of new $20 bills, they revalued that gold to $34 per ounce overnight.

Meaning, every man, woman, and child that had brought their gold in had just been taxed 40% overnight!

But the currency was still backed by that gold...

Then in 1971 Nixon took the U.S.A. off of the gold standard (illegally).

They are fixing to do the same exact thing FDR did, but this time they are going to do it in reverse. They are going to tax you through your paper. Bring in $200 of your old fiat currency for $100 of the new gold/commodities backed currency! Meaning they just taxed you 50% again overnight...

Meanwhile, they will own 90% of the metals and commodities used to back the currency...so they will reap the benefits...

Just look at Russia when their currency collapsed. Our situation will be much worse.


Overnight.......you no longer had access to your accounts in the bank. Lifetime savings just vanished.


Overnight......prices doubled......and then went up quickly thereafter.


Things disappeared from the store shelves.


Our situation will be much worse as the dollar is the world's reserve currency.


We might have a certain amount of currency in ciculation amongst the citizens now.........but vastly more held as "computer entries" for people holding bonds, etc overseas and at home.


Think about if everyone scrambles to liquidate these all at once.


Either a default.......or a huge and sudden increase in the domestic money supply.


In either case.....prices will explode like never before seen in history.

Incidentally OP, I said at the beginning, I agree with you, I too think the stock markets are going to crash, the banks unwinding their positions in the CDO and CDS derivative markets is an ominous sign.

I'm just saying it's part of the plan...

I'm just saying there is nothing new under the sun, this is a cycle, inside a cycle, inside a cycle, infinitum...

I guess in your time frame the inflation has occurred and the Fed has fucked over the average person and it gonna continue to happen. Just gotta learned how to not get fucked by Bernanke's paper wang.

Turn your paper into hard assets

Exactly! They WILL NOT lose control, even if it looks like they have...

Problem, Reaction, Solution...and they already have the solution ready to roll out just as soon as the problem and reaction come on board...

Last Edited by Saddletramp on 11/16/2012 12:21 AM