Fwd: MAD Would Prevent America From Exercising the Financial Nuclear Option

Subject:	MAD Would Prevent America From Exercising the Financial Nuclear Option
Date:	Thu, 19 Aug 2010 05:31:23 -0700
From:	Jas Jain

MAD Would Prevent America From Exercising the Financial Nuclear Option 

Remember nuclear warheads race and proliferation? What kept things between the US and the USSR from going too far? MAD (mutually assured destruction). Would Capitalist Crooks destroy their own capital in order to wipe the debt obligations of American dopes, including the taxpayers? I don't think so. Dopes who have bet on the US inflating away its debt are not doing too well, while those of us who have bet the other way are sitting pretty. I have been a gold bull for the past 13 years primarily because it is insurance against fiat currencies and gold is now behaving more and more like a currency. Gold could easily go to $5,000/ounce in a deflationary depression in the US!

 

Inflating away would be an economic suicidal move on the part of the US. It ain't in the cards. Prolonged pain for American dopes is in the cards, i.e., backed into the cake. During this period of pain for the dopes Crooks and their agents like Bushes, Clintons, Gores and Obamas would do very well. Financial derivatives markets of 2010 are not the same as those of 1971 when the US was taken off the gold standard. The move was not unexpected by the markets. Amazingly, it is lot harder to inflate, as FDR was able to do on whims, in the absence of the gold standard! Bernanke wishes a 3-4% inflation rate but he can't get there!!!!!!!!! Of course, he can't utter a word to that effect because that would trigger a massive problem. The guy doesn't have much room to maneuver. He has been turned into a paper tiger, i.e., he is impotent just as I had predicted.

Jas

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Kirk here:  Jas, Goldman Sachs (top of your favorites list) has already shown it will attempt to make money shorting securities it sold to its customers.  If they thought they could get rich shorting US Stocks, US Treasuries or both, then why can't they do it again?  Also, what you seem unable to grasp is the relationship between your "crooks" and their customers is symbiotic. They would be stupid to kill their host and not even you say they are stupid.  Investment banks make their big profits raising capital for IPOs and secondary offerings.  They want a rising market for stocks for this to make maximum dollars so pushing for inflationary policies should be high priority in their bag of tricks.