Thursday, January 27, 2011

Bernanke, bluffing, Calls

Hu has gone all in.  He is huffing and puffing up his pompidor.  He says China is the new big guy, and their power is decree.  Bernanke, bluffing, has called Hu.  He will not raise rates despite the Chinese blowhard smallish rate hike, nor India's.  He will make liquidity so loose that Paul Krugman is getting excited.

He will funnel dollars to the PMs and they will funnel dollars to the corporations.  Hu will do the same.  The game of hot potato is going fast since the potatos are burning their hands.  WHo ever has the strongest hands win.

Bernanke knows the end game is gold.  He has his "gold" reserve in Fort Knox, and that is how he sleeps at night.  He can do what he wants as long as he controls the gold market.  This is true because it is gold that controls the dollar.  By the reserves and assets across all bank ledgers, gold starts the ponzi.  This is why we are on somewhat of a gold standard.

We are on a gold standard by default.  Oil is bought in dollars and dollars buys gold.  Dollars shouldn't buy gold, but who am I to tell people what to do with their paper.  Paper is what it is for anyone who wants it to be what they want it to be.  Gold is gold, I know what it is.  It can be art but it is not art.  Gold is monie, because monie is gold.

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