Welcome to Fabulous Friday! Let's Get Short! Woohoo!

What a wonderful day! The fruits of the world's central banks are starting to pay off. Oil is going parabolic with no corresponding supply problem- the dollar is trading sub 75 as I write this- Portugal is completely bankrupt- we have no budget deal- gold and silver had a fantastic run today. In fact silver shot through 40 and is on the verge of cracking 41.00  after hours.

I think Ben Bernanke is toast. I think he will be canned in the next 12-14 months. I believe that. In fact I think that there is a better than average chance he gets the hook before the end of the year.

I believe that Bernanke's efforts have not had a fucking thing to do with the United States economy. I believe that the 9 trillion that the FED loaned member banks (and was forced to disclose) in 2008 tells the story. The world's bankers are bankrupt. All of these bailouts, cash for clunkers, mortgage subsidies, QE1, QE2, POMO, and fantasy accounting methods are all just schemes designed to try and get bankers' balance sheets back in black. I don't think Bernanke gives a rats ass about anything else. Pure and simple. And if he acknowledges inflation- that means the FED will have to jack up interest rates. Jack up rates and suddenly- all of that treasury/debt refinancing is going to cause our debt levels to go supernova. Right before Obama's big re-election run.

We've seen Obama's brand of loyalty. Narcissists cannot take blame, ever. That is not in their DNA. Go ahead and scroll your memory banks. Ask yourself if Obama- has ever once- admitted to screwing anything up. It's always someone else's fault, isn't it?

You heard it here first. Bernanke is toast. He will be gone before the 2012 election because Obama will sacrifice him. By that time, everyone will be calling for his head including Joe Bob in Arkansas who is paying 150 bucks to put fuel in his Chevy pickup. Not that it matters- we'll just get another FED lackey like that Chicago Fed stooge or Jamie Dimon. 

I read an article on the web today telling people to take some silver profits here. I'm not going to do that. I have the utmost confidence that Bernanke cannot change course nor can he acknowledge inflation. He calls it "transitory." He has to. He is dead money and he knows it. So do I. I am still banking that silver doubles from here and that inflation will get far worse before it gets better.

Anyway, things are coming together just as predicted. It's about time to get short the stock market. The POMO ramp ends in two months, there are no shorts waiting to cover, and every dollar that can commit has already been committed. We are going to have some fabulous Fridays all the way through this summer. On the short side.

Comments

davecydell said…
" I am still banking that silver doubles from here"
I'm with ya. FG.
arerix said…
When I was young they used to say "Better dead than red". Now I understand it has to do with the color of the ink, not the flag.
http://www.youtube.com/watch?v=hkkL_aDrIyU
TC said…
You might want to consider that, the inflation trade (stocks+commodities) currently is rather crowded, and that Bernanke could be painted into a corner preventing the Fed from further bailout operations until an additional, large chunk of global debt is recognized non-performing (as is inevitable) and forced to be written off (this accomplished by way of some swindle or another not much unlike 2008's attack). In the process the inflation trade could be crushed.

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