romans holiday

should read "the hyperinflationary devil is in the details".

Double post. This could be it. As the authors well recognize, these are radical and hugely risky measures. They see a deflationary implosion ahead if something is not done quickly. The focus in this crisis is now squarely on the credit crisis and the zombified banks. And they see this crisis as primarily one of liquidity. I like the honesty of this article as they openly state the risk to the tax-payer. Surely, to support the entire housing market they will have to print like crazy. In doing so they will solve the liquidity crisis, but it will be the mother of all pyrrhic victories. They will succeed in unfreezing money but watch it turn into a flood. Watch all the money pour out of treasuries and into..... everything and anything as the currency inflates and people panic. At the moment, the function of money as an medium of exchange is compromised [liquidity crisis]. After this, it will be even worse as the functions of money as a store of value and a measure of value will be drowned [hyper-inflation]. Edit: Thanks for posting this DrB... and, as you said, look whose name is on it! Wow, this really could be it.

This is big news. http://kr.youtube.com/watch?v=_-2TNXqEP-Y

You are right about the seriously!

Stagflation in drag. Does it involve a currency crisis?

Exactly! Stagflation .... thinking garden variety!

All real stuff would have to become more valuable as all paper assets deflate. A secular bull market in commodities is still on but I think things will become really confusing for investors once the currency gets into trouble. With the "liquidity" crisis, we already see the beginnings of a currency crisis [even though the pundits only see a banking crisis] in so far as one of the functions of money is to be a medium of exchange. Money is freezing now, losing velocity, and in becoming illiquid is, at a certain level, losing its function as a medium of exchange. I think the currency crisis will fully arrive when another function of money is lost; that of being a measure of value. This is where it will be extremely difficult for the market to give a measure of value to something in dollar prices. Until the market becomes fully aware of the currency crisis, I imagine market prices will be chaotic. This could lead once again to a huge round of deleveraging, leaving many to doubt the commodity bull. Those who clearly see instead a currency crisis will just ride it through. Edit: I am not an economist... and consider that an advantage.

I see it this way. We are heading into a deflationary depression [of the economy]. This will also involve a hyper inflation [of the currency]. If you really feel the need to reduce this to one idea, we are heading into a hyper-"deflation". Why the term hyper-"deflation"? Because the big picture is depression and deflation, widely considered. Why hyper? Because everything, all paper assets including the dollar will deflate. Why "interrogate" deflation? Because it also involves an inflation of the currency [numerically conceived, as the Government monetizes] which is in effect the same as deflation of the dollar and its purchasing power. Just the way I see it. The old printing money/inflation/gold good story with the converse of asset deflation/go to cash/gold bad story frankly did not cut the mustard. A lot of gold holders were shaken out recently as assets deflated, and hedge funds deleveraged out of commodities because they perceived deflation to be negative for POG. I think this is a crying shame [but fortunately POG is still relatively low]. In a hyper-"deflation" [clumsy word I know] gold will go parabolic when the currency crisis strikes.

Nouriel Roubini on CNBC http://www.cnbc.com/id/15840232?video=859660172&play=1 http://www.cnbc.com/id/15840232?video=859660187&play=1

This is explosive! Where is it going to stop? Just went through 890 Edit: opps... shouldn't have said that.

You do not need to understand gold fundamentals. Just understand that the financial world in unravelling... which is easy enough when it is slapping you in the face.

Good morning all... wowwee.... look at POG The BIG SQUEEZE is on. With the degradation/deflation of the dollar coming... think of all the money to be squeezed out of treasuries... this will see gold go parabolic.

US Government is going to be swallowed by this black hole also. Americans will no longer be able to afford it.

The inverse relation of gold to dollar has gone also! I believe gold has come into its own as money tonight. It always was with us, but now the market is finally recognising it.

Implosion of all the investment banks on Wall Street is the cause in my opinion. Goldman Sachs and Morgan Stanley are now in crisis mode. Real banks will probably swallow them up in the next few days. Real banks will have their turn when the currency crisis hits.

Goldman Sachs.... the darling of Wall Street ....down $130 to $100.

ONLY thing up in the markets is gold..... and gold stocks! Sign of things to come folks. Edit: Dow down... nearly 400 points!! could break 10,000 soon.

Don't get caught in the headlights.

One of the top ten biggest one day moves EVER in gold today.

party pooper!

This is what I am waiting for... the mainstream will be caught between a rock and a hard place here with only one way out...... THE BIG SQUEEZE.

The charts look terrible, but understandable given deflation in assets, massive deleveraging and a flight to cash .... but the fundamentals are screaming louder than ever. With new nationalizations almost daily, the degradation of the dollar continues.... Deflation in assets may continue, but that will not prevent a currency crisis only hasten it.

Yeah... and the rise in oil is pretty minimal right? only a couple of bucks... compared to what we just saw in gold. I think the banking crisis is driving this.... though we do not see directly a currency crisis yet, there is a more general monetary problem. Any whiff of a crisis with the monetary system/ banks will create some demand for gold. Just wait for the currency crisis proper and we will be posting rockets galore. Still, there may still be a few more dips as deleveraging continues... but I wonder if most of this has been worked through and the weaker hands have been shaken out.

Before oil and gold always moved together, as if joined at the hip... this is not always the case now... they often move separately, but still occasionally together. Edit: wow... up $46! oil only up 2.

One for the morale. Edit: I know if I was in paper, I would be a nervous wreck at the moment. Edit edit: Oh, just noticed gold up $30 hence the rocket... and here was me all morose like.