3 votes

Video: Trader admits Goldman ruling the world..warns to be prepared within the next 12 months

http://www.youtube.com/watch?v=u0CbXE2O3iQ

...My question is if they keep printing money though, he could be wrong about the 12 months, right? They could prolong this for years is my understanding...comments?

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fireant's picture

No question

The Fed will step in, and here is a clue for when:
"If inflation falls too low or inflation expectations fall too low, that would be something we have to respond to because we do not want deflation" - Ben Bernanke, September 28, 2011
It doesn't get any clearer imo. I just wonder if "printing" will be able to stem the tide once a deflationary collapse gets going good...it's going to get interesting.

Undo what Wilson did

No they can not prolong this

No they can not prolong this for years. The reason for the economy being in the can is because of them printing money for the past 40 years. We are now coming to the end.

Even if you agree w/ his

Even if you agree w/ his message, this guy is NOT a credible source of information and should not be spread:

"They approached me," he told The Telegraph. "I'm an attention seeker. That is the main reason I speak. That is the reason I agreed to go on the BBC. Trading is a like a hobby. It is not a business. I am a talker. I talk a lot. I love the whole idea of public speaking."
http://www.telegraph.co.uk/finance/economics/8792829/BBC-fin...

My point still stands - he

My point still stands - he probably is right, but he is not a good source of information. If he goes on tv again and starts making predictions or matter-of-fact statements, there's no reason anyone should listen to him

Wow - thanks for that

Wow - thanks for that link...they didn't have his name on the interview - I was wondering who he was!

My gut says no, but I suppose

My gut says no, but I suppose it's possible for them to prolong this for years. If they do, though, all it will result in is a much larger crash down the road. Too much printing too fast will crash the value of the dollar...

Well, whether it's 12 months or 5 years it's probably a good idea to try and prepare as best you can either way.

...

Highly

Unlikely that they can keep it afloat for years at this point. It is very much like a sinking ship, as a ship sinks it takes on more water and progressively sinks faster and faster.

Greece right now is a keystone, Greece is going to collapse soon and when it does it will start a domino effect for the global economy. When the shock wave of that collapse hits our shores which will not take long, a matter of weeks maybe even days after that, it will crash the market here as the Dollar will be hit in a big way. The Dollar loosing 50% of its current value almost overnight due to the market will cause a panic, banks will empty overnight and so will grocery stores, that will signal the end.

It is pretty much unavoidable at this point, unless a free or nearly free energy technology hits the market in the next 4-6 months we are looking at extremely hard times for at least the next 4-8 years.

The Abuse of Greatness is when it disjoins remorse from power. - Shakespeare

'Goldman Sachs Rules The World'

Nice title for a Drudge entry ......

Maybe

It's hard to predict the 'when', which is why Austrian Economists usually predict the 'what' and the 'how', basically just calling the cause and effect. Timing is extremely difficult for the infinite variations that can pop up. However, last year I did predict summer of 2012 and it seems like a pretty reasonable guess as we see everything winding up.

To your specific question about if they could keep this up for years. I think the answer is that they already have, and this is the final culmination which is evidenced by the Eurozone cracking, after that falls we'll see a rush to the dollar and Treasury Bills, which itself is a bubble. However, that won't last long because our own finances are in such a disarray with the debt and deficit spending we will see foreigners sending all those dollars floating around overseas back to the US, and that's when you'll see the hyperinflation. Prices going haywire, it'll be a little scary.

How does the Bond Bubble pop? Not sure, honestly. I assume it has to be a crisis of confidence, because in other bubbles the issue is that if the credit expansion (inflation) isn't cut off (which is one way to bust the bubble) then eventually we'll see the raw goods are not actually in existence as they are called upon. The analogy that Mises uses is that a home is being built, they plan out a house that requires 1000 (or whatever number) bricks, they get 70% done with it and realize they only had 700 bricks, the resources weren't there, only the empty promise (credit expansion / inflation).

That's how it works with real assets.

Mises.org is a fantastic resource for Austrian Economics.

On my blog I've also written a series about Economics if it interests you: http://www.dawnoftheweak.com/2010/09/economics-coming-disast...

Thanks so much for your input

Thanks so much for your input and your blog info...what is odd is that he mentions putting money in treasury bonds, etc...I'm guessing that he believes in a crash, but not in a "dollar" crash - treasury bonds wouldn't have value then...

going twice...

going twice...