Dear CIGAs,

If gold market participants were all tank drivers their machine would have but one gear – reverse. The smallest book in the world is the book of confirmed gold price visionaries.

Someone says deflation and the long gold positions hit the fan. Gold banks make their short covers even though the fuel in Bernanke’s Helicopter Money Drop is founded in the dreaded use of the “D” word.

People are so fixed in present time that they cannot picture a euro back towards its high and the dollar back towards its low because the financial condition of the USA dwarfs the problems of Europe.

Hyperinflation is always the product of a loss of confidence in currency resulting in a “Currency Produced Cost-Push Hyperinflation.”

No one with a synapse talking to another synapse expects a “Demand-Pull Inflation.”

All hyperinflation in modern history has occurred for one reason, and one reason only. That is loss of confidence in currency.

Loss of confidence in a currency can be brought about by many reasons, but there is one constant factor. When hyperinflation has occurred in modern history EVERY economy involved was decimated as and when it occurred.

It has never been caused by “Demand-Pull,” but always and without exception caused by “Currency Induced Cost Push Hyperinflation.”

The nonsense being spread by the F-TV taking heads is that the Fed is out of ammunition to fight deflation. That is raving BS. The Fed can and will do QE to infinity which is restricted as a tool by nothing whatsoever. The ECB will not be far behind the Fed.

Argue all you want, but this is exactly what is going to happen starting now. Stop being glib. Study hyperinflation in modern times listed below before you ask me to explain it one more time.

What is out there today QE wise is enough to result in hyperinflation as confidence falls in currencies due to two characteristics, QE and volatility.

Try meditating on the concept of “Currency Induced Cost Push Hyperinflation,” rather than loading your pants over gold banks manipulation full of sound and fury, but meaningless in the great scheme of things.

Examples of hyperinflation in modern times:

Angola, Argentina, Belarus, Bolivia, Bosnia-Herzegovina, Brazil, Bulgaria, Chile, China, Congo, Free City of Danzig, Georgia, Germany, Greece, Hungary, Israel, Japan, Madagascar, Mozambique, Nicaragua, Peru, Philippines, Poland, Russia, Taiwan, Turkey, Ukraine, United States, Yugoslavia and

Marc Faber predict : perpetual depression , Inflation and then world scale war

This is an interview in french with radio host Jovanovic
Marc Faber : you should own farm land in order to stay clear in a case of war , because I believe that before the whole system collapses the governments will start inflating the money supply by printing more money until the situation is no longer sustainable , after that the government will start a war , the worse place to be in such a case would be a financial center City , this way the government will turn the attention of its people towards a newly fabricated common enemy, another incentive for war would be the shortage in basic commodities ...

Mish Shedlock : The Bull Market in treasuries is not over yet

Mish" Shedlock, author of Mish's Global Economic Trend Analysis
Mish : we have been heavily in treasuries and moist people mocked that , but we've done rather well in treasuries , I think treasuries still have little life left in them certainly treasuries are no where near the buy when at ten year was 4 percent now its down to three ...I think it's quite possible and we need to keep an open mind in this that the bull market in treasuries is not over ...in fact if you look at two years treasuries we are floating at all time record lows right now .....

Faber Sees Fed Introducing `Massive' Quantitative Easing: Video

Marc Faber : I am convinced they will implement further quantitative easing and massively so , it will probably happen in September October ...The economy is not robust , we have mixed signals but in general the economy is still weak



July 16 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom & Doom report, says he's "convinced" the Federal Reserve will soon implement "massive" quantitative easing policies. Bloomberg's Sara Eisen reports. (Source: Bloomberg)

Marc Faber : not convinced of austerity measures as the way to go , Expect fiscal deficit to remain high

Marc Faber : Well Basically we got very over sold at the beginning of July and since then we rallied quite strongly , I think that we can rally some what more but if we look at the S&P the low was 1010 and the previous support was 1040 and the top at the end of April was 1219 so around 1170 there is a lot of resistance and it will be very difficult for the market to get through that resistance ....
we have to distinguish between what central Banks and the governments in the western world say and what they will do , I am not a great believer in this austerity that they are proclaiming , I think the fiscal deficit will actually stay very high or even increase and I think that if they decrease the fiscal deficit then it will be offset by very expansionary monetary policy in other words monetisation , so the whole burden to support the economy will fall on the monetary policies then they'll print money like crazy and so I would not pay too much attention to what they say but to what the markets do and it seems to me that the people that predicted the DOW JONES 1000 or S&P 500 or S&P 200 I think they're misreading the facts that under fiat monetary system you can print endless quantity of money and so stocks may adjust in real terms but not necessarily in nominal terms to the extent that the super bears are predicting ...
Nouriel Roubini Gary Shilling David Rosenberg these are the true deflationists says doctor Marc Faber they advice to be in US government bonds and to basically avoid everything else ...adds Marc Faber : I do not think that the US Bonds are desirable investment for the next 5-10 years....Investments in US Bonds and cash may be a very risky strategy in the long run , Dr Faber rather sees inflation coming than deflation : I am not a great believer in deflation , all the prices around the world are going up says Dr Faber ...


Marc Faber, investment guru and editor and publisher “The Gloom, Boom & Doom” report, said that markets were in an oversold zone in early July and since then global markets have rallied strongly and could rally somewhat more. Newer Posts »