Thursday, August 22, 2013

Peter Schiff: First You Get The EBT Card and Then You Get The Women

Peter Schiff talks about the liberals and their impact on American economy and lifestyle. In his radio show, Schiff exposes the (new) American Dream: Surf, drink & hit on chicks while sponging off taxpayers.

Schiff talks about the young people that preffer to party, to live their lives on food stamps, and the only thing they don't want is to work.


Thursday, August 15, 2013

Peter Schiff: Why Are So Many Americans Fleeing the US Economy?

"I think over time, more and more entrepreneurs, young people who want to make something of themselves and who find it a lot more difficult to do it here, because of their taxes and regulations – they’re going to want to leave. And I think a lot of Americans are going to want to get their money out of the US because of the inflation that I see coming and the weakness in the dollar."

Tuesday, August 13, 2013

Next Fed Chair Will Lead Us to "Economic Ruin", Says Peter Schiff

"The mandate the Fed needs to keep under control is sound currency, to preserve the value of our money… If it follows that mandate, then we’ll have prosperity, we’ll have lots of job creation, lots of economic growth. It’s when they try to fine tune the economy by playing around with interest rates and money supply that we have big problems in the economy."

Don’t Trust the Government, Gold Still Inflation Hedge

"The other problem I find with the inflation-to-gold ratio analysis is this: We are truly in unknown territory with the U.S. and world money supply. In 2008, when the Fed geared up its printing press, the entire balance sheet of the Federal Reserve, accumulated in its 95 year existence, was $1 trillion. For the last several years, it has been growing its balance sheet $1 trillion per year.

The only reason we don’t see rampant inflation is that the velocity of money is so low. If the economy ever picks up for real, watch out. Fortunately, or unfortunately, depending on how you look at it, there seems to be no immediate threat of that."

Read Full Article Here

Economic Lessons from Gilligan's Island: The Fallacy of GDP

Thursday, August 8, 2013

Peter Schiff: Investing Wisely While Banking on a Crash

The Peter Schiff Show (8/6/2013)

Lewis Lehrman: The Rise and Fall of Real Money

Working people have also discovered that the credit worthy liquid financial class with access to cheap money at the Fed and at the banks has enriched itself not only by bailout subsidies, but by cheap financing derived from its symbiotic dependence on the Federal Reserve System. This [is] a fundamental cause of the rising inequality of wealth in America.

Peter Schiff's Case for Gold

How in the world could gold be so cheap amidst all that is going on in the world? Almost every developed nation is lowering interest rates to weaken its currency and then printing more money, which weakens it even further. Shouldn’t gold be well over $2,000 by now? What is holding it down?

According to Peter Schiff of Euro Pacific Capital, a better question to ask would be: Who is holding it down? Schiff believes the big banks, along with some U.S. Federal Reserve banks, are involved.

Just what is it that has raised Schiff’s long-running suspicions? If he is right that gold has been artificially kept down, might it some day also be manipulated back up? The banks pulling the strings would certainly benefit from a rapid spike back up. And so can you.

Schiff’s Three Signals

Three signals have raised Schiff’s expectations for a sharp gold price spike, as he outlined in a recent CNBC interview:

-Weaker economic recovery: According to the latest U.S. GDP data, the American economy in Q2 grew at an annualized rate of 1.7%. However, Schiff contends that this figure is based on 0.7% inflation, when the government’s own inflation reading came in at 1.1%. If inflation is truly greater than the GDP calculations have been allowing, then GDP cannot be as high as has been reported. Schiff asserts GDP is barely in the positive, perhaps even stagnant at 0% growth.

-More stimulus required: If the economic recovery truly is that weak, Schiff believes there is no way the Federal Reserve will curtail stimulus. In fact, he argues the Fed has no choice but to increase stimulus, which the Fed has been indicating in its press releases that it reserves the right to do if incoming data warrant it.

-Inflation will take its toll: Combining a weak economy (which Schiff expects to recede into another recession) with continued easy-money stimulus can have no other effect than to unleash inflation to run amok. The Federal Reserve has also stated in its releases that it wants to coax a higher inflation rate of at least 2%. Inflation is part of its agenda, and it will not stop stimulus until it arrives.

Once these three symptoms of a diseased economy become full blown, the flight to the safety of gold will resume. Even as Marcus Grubb, managing director of investment at the World Gold Council, indicated in a CNBC interview, “This is a correction in a trend, rather than the end of that trend.”

Continue Reading Here

Peter Schiff Borrows a Meme: Audit the Vaults

Peter Schiff of Euro Pacific Capital is out with a new letter in recent days and it centers around a very odd phenomenon. The pace of physical gold demand compared to the outflows of gold ETFs and its corresponding effect on gold price.

So Schiff would like to know, what’s in the vault? The major banks, or the too big to fail institutions of TARP have managed to get themselves in into the commodities storage game. Speculation has started to run rampant that gold held in storage has either been lent out, or even sold on a fractional basis far in excess of what is on the books.

Of course what major bank would do such a thing? Not like one was just fined for manipulating energy market in California, or others being sued for manipulating the aluminum market. Oh wait.

Why Fractional Gold?

One reason behind the fractional gold is that creates a market of more gold than there actually is and will work to depress prices. Schiff maintains that such an action would be used as cover for central banks so they can avoid the embarrassment of depreciating their respective currencies.

Peter Schiff thinks a majority of the chatter originated from the January announcement out of Germany. Internal politics in the country has them wanting to return the country’s wealth to the homeland so to speak. Currently, the German government holds about 300 metric tons of gold in the NYC Federal Reserve vaults. Or about 5% of the official holdings.

When the request came in from the German government to inspect its holdings at the Fed, it was promptly denied. Repatriation of all German gold holdings at the vault is still expected by 2020.

Of course when you say it will take seven years for something that is only supposed to take up 5% of your holdings, out come the theories. Do you actually have the gold? Are you using fractional gold to bolster the amount of gold in circulation? Needless to say, it gave people pause and plenty to think about.

Bernanke’s Testimony

During his July 18, 2013 testimony, Fed Chief Ben Bernanke claimed that nobody really understands gold prices, and he doesn’t pretend to either. Find it interesting that that the head the head of the Federal Reserve has no understanding of gold prices. That’s just like the DNI saying he forgot about Section 215 of the Patriot Act. We get you are paid to lie, but at least make it convincing.

Schiff’s best part of the letter was his what if question. Granted he’s talking about Congress, so Schiff should probably use flashcards, but it still would have been entertaining:

“Likely, Mr. Bernanke would have been shocked utterly had any Congressman had asked him to explain why the Gold Forward Offered Rate (GOFO) had dipped into negative territory. GOFO stands now below both the U.S. Federal Funds Rate and the London Interbank Offered Rate (LIBOR). Investors should appreciate two vital factors. First, gold prices may have been suppressed for years by central banks and could be set to respond as physical shortages and fiat currency debasement become clearer. Second, the enhanced value of physical possession of precious metals could be about to become manifest.”

The main goal of Schiff in this letter is like that of Ron Paul with a slight difference, audit the vaults. Lets all take a look inside.

Source: tradethenewsroom.com

The Government Makes it Very Lucrative Not to Work

Peter Schiff on CCTV (8/2/2013)

Wednesday, August 7, 2013

Peter Schiff: The Goverment’s Plan Is Inflation

"The government has no tools to combat inflation… The Federal Government and the Federal Reserve want to inflate away all the debt. The US government has a lot of debt, American households have debt, corporations have debt [and] it’s impossible to repay it. They want to inflate it away, but they don’t want our creditors to realize what plans we have and so we’re going to continue to misrepresent how much inflation there is…"

World Gold Council on Fundamental Gold Investing

"The case for owning gold is a simple supply and demand story, [and] it has always been that way. What’s changed over the past several months is that there is clearly a supply situation where it may be constrained. And from a demand perspective around the world, including here in the United States, there is certainly increased demand for both physical gold, as well as jewelry."

Tuesday, August 6, 2013

What Doesn't Kill Gold Makes It Stronger - Peter Schiff

By Peter Schiff:

I've been emphasizing for months that the current correction in the gold price is a result of speculative money fleeing the market and not any reflection of gold's long-term fundamentals. Unfortunately, there is so much money to be made (and lost) by day trading that my cautions have once again fallen on deaf ears.

Well, it looks like the so-called "technicals" are starting to support my theory, and so this month I'm going to depart from my typical discussion of market fundamentals and take a look at the COMEX gold futures market. It turns out that the same paper markets that helped drive the price of gold down are beginning to run into the hard reality of physical gold demand; their reversal may push gold to new highs.

Reading the Futures

The world of futures contracts is often confusing for ordinary investors. It is mainly the domain of institutions seeking to hedge and professional speculators. I do not recommend passive investors get involved in futures trading, but it is helpful to understand how these financial instruments affect gold's spot price.

In its most basic form, a gold futures contract is an agreement to buy a set amount of gold at the current spot price with delivery guaranteed at a future date. The attractive part is that you don't need to pay the full price up front. You can put a down payment on 100 ounces of gold today, knowing that you will only have to complete the payment when the contract comes due. If the price of gold rises in the intervening time, you've made a nice profit, because you end up paying today's price for a product that is worth more in the future. Of course, the person who sold you the contract takes a loss for the same reason. The person buying the contract is said to be "long" gold, while the seller is "short."

One of the reasons gold futures are so risky is because of the sheer quantity of gold that transactions represent. When you buy a single COMEX gold futures contract, you gain control - and responsibility for - 100 troy ounces of the yellow metal. So when the gold futures market was said to have made "big moves" this last April, that was an understatement - on April 12th, it opened with a sell off of 100 tons of gold!

It gets worse. Traders often leverage (borrow cash) to buy futures contracts, with the down payment they supply known as the "maintenance margin." The minimum maintenance margin for a single futures contract is only $8,800. If spot gold is at $1,300, then a trader can gain control of $130,000 worth of gold with less than 7% down! Depending on a combination of luck and experience, this massive leveraging can lead to either amazing profits or devastating losses.

Let's walk through an example, keeping in mind that my figures are very simplified, because a futures contract is not exactly equal to 100 times the current gold spot price. Most of the time, futures prices are a little higher than spot gold.

Say gold is at $1,300, which means a COMEX gold futures contract gives the investor control of about $130,000 worth of gold. A trader buys a contract with only a $8,800 margin. If the price of gold goes up to $1,500, the futures contract is now worth $150,000. The trader can now sell that contract and pocket the difference. He just netted about $20,000 with only $8,800 in seed money. If the trader had simply bought $8,800 worth of physical gold, he would have only earned about $1,350 in the same time period. It is not hard to see how futures trading can seem exciting and profitable on its face.

But what if the price of gold goes down in this scenario? The more the price of gold drops below the contract price of $1,300, the more the investor will be required to add to his margin to maintain the same ratio of down payment to loan value. This is required as assurance that he will not abandon the contract. In the worst case scenario, the trader cannot put up the additional funds and the entire position is liquidated by his broker.

So far, this example is of a trader "going long" with a futures contract. It can be risky, but the potential losses of a long futures trader are nothing compared to the losses someone shorting the market might experience.

Consider the same scenario above, except this time the trader has a short contract. He is desperately betting that the price of gold will drop enough for him cover his short position (buy back the contract he sold) at a lower price. After all, he can not hold the contract to maturity, as he does not actually own any physical gold, and thus would not be able to deliver to the buyer.

The key difference between long and short traders is that shorts are forced to add to margin when the price of gold goes up. Unlike a drop in the price gold, which can only go so low, there is theoretically no limit to how high the price of gold can rise. Someone betting on gold's demise with short futures contracts when gold enters a big bull market can be completely devastated by their margin calls.

It's risky enough leveraging into a deal as aggressively as futures traders do, but if traders don't understand the fundamentals of the asset underlying the contract (in this case, actual physical gold), they can get into a lot of trouble and in turn distort the price of the commodity they are trading. This is precisely what is happening now.

The Short Squeeze

When gold began its price drop in April, we saw a rush of paper gold flee the market, including record-high ETF outflows. Major money managers and hedge funds began selling their gold positions, issuing lower and lower forecasts for the year-end gold price. All of this became a major signal for futures traders to short gold.

The selling feeds on itself as the traders seek to cut their losses, or retain some of the paper profits the earned on the way up. Sometimes the selling is fueled by "stop sell orders," which are orders on the books that are automatically triggered when prices decline to a specific level, in many cases just below key technical support levels. Stops generally become market sell orders as they are hit, accelerating the decline and thereby triggering even more stops as prices fall lower. Some stops represent long positions being covered; others represent new short positions being established.

This ongoing shorting of gold builds a cycle that feeds on itself. The shorts see others fleeing the market and so continue to short. Meanwhile, the fund managers see the net-short positions increasing and so they continue to sell gold.

This cycle continued right up until gold's rebound - in July, the gold net-short positions reached record highs.

When gold began to rebound last month, a massive number of shorts were left exposed and many still remain exposed. Gold shorts are stuck holding the losing bet on an asset that is going to do the opposite of what they anticipated.

If the price rally continues, these traders will feel increasing pressure to unwind their shorts before their losses become catastrophic. This "short squeeze," as it is known in finance, will reverse the vicious cycle and could send gold dramatically higher than when the correction started.

An Unbalanced Ecosystem

To understand this short squeeze, imagine a brand new predator entering a pristine natural ecosystem. The newly introduced predator finds a smorgasbord of prey that have never learned to outrun, outsmart, or avoid this particular predator. Before long, the predator becomes "invasive" and begins to devastate the natural population of its easily-captured food source. Thriving on the newfound resources, the population of the invasive predator surges to new highs - until the prey population collapses.

This is akin to what has happened with gold shorts in the past three months. The more the price of gold (the prey) was driven down, the more gold speculators (invasive species) entered the market to profit from this trend, which only served to drive the price down further.

However, as in a natural ecosystem, this relationship is unsustainable. Eventually there are so many predators that they run out of enough prey to share. This forces the predators to starvation, and eventually the population drops to a sustainable level while the prey manage to grow back to a natural equilibrium.

The overwhelming problems for the shorts is that the gold they sold on the way down will not likely be for sale on the way up. My guess is that the buyers who previously stepped up to the plate were not short-term traders like the speculators who sold. These were buyers who bought gold to own it, not to trade it. For these buyers, like foreign central banks, the gold they bought is not for sale at any price (at least not a price the speculators can afford to pay). The buyers over the past few months have been lying in wait for this opportunity for years.

The result of this price decline is that gold has moved from weak hands to strong. In addition, the weakness in the price of gold has caused gold miners to shut mines, reduce capital expenditures, and limit exploration/development. So gold that was once on the market will be gone, and future supply coming from new production will be diminished. So when the market turns around, how will the shorts cover? Where will the gold they need to buy come from? When traders want back into the ETFs, where will the ETFs get the physical gold they need to buy? How much higher will prices have to rise to bring that supply back onto the market? I really have no answers to these questions, but it sure will be fun for the longs, and painful for the shorts, to find out.

What you and I can really hope for is that this massive short-squeeze becomes the impetus to focus the market back on gold's fundamentals and begins to drive the yellow metal back toward its previous highs. If I'm right that gold is still grossly undervalued, then this might be the beginning of the biggest rally we've yet seen.

Peter Schiff is Chairman of Euro Pacific Precious Metals, a gold and silver dealer selling reputable, well-known bullion coins and bars at competitive prices.

Click here for a free subscription to Peter Schiff's Gold Letter, a monthly newsletter featuring the latest gold and silver market analysis from Peter Schiff, Casey Research, and other leading experts.

And now, investors can stay up-to-the-minute on precious metals news and Peter's latest thoughts by visiting Peter Schiff's Official Gold Blog

43pc bought more gold after price plunge

The vast majority of investors either retained or added to their holdings of silver and gold after prices fell sharply in the spring, a survey suggests.

When asked whether they had made any changes to their precious metal investments over the past year, 37pc of investors said they hadn’t changed their allocations to silver and gold, while 43pc had increased their holdings.

Just 14pc of investors said they had reduced their holdings, while 4pc had switched from gold to silver. Only one in 100 said they had sold all of their holdings of the precious metals while 0.7pc had moved from silver to gold.

The survey was conducted by BullionVault, which allows individual investors to own gold and silver without taking possession.

The strong support for the metals came despite the survey being conducted in June, just after a major sell-off that saw the price of gold tumble.

Having peaked in autumn 2011 at almost $1,900 an ounce, the price fluctuated between $1,600 and $1,800 for much of the next year, before beginning a sharp decline from October 2012. In June it fell below $1,200 but staged a recovery in July, rising by 7.6pc.

Bullion's speculative trade near its end: World Gold Council

The exodus out of gold this year, triggered by heavy exchange traded fund (ETF) selling, may nearing its end, according to an executive at the World Gold Council (WGC), who expects prices to pick up towards the end of 2013.

"We feel that speculative money has largely come out of the gold market. We feel that gold is nearer the bottom than the top right now. You'll see a stronger market towards the end of the year, and into next year," Marcus Grubb, managing director of investment at the WGC told CNBC on Tuesday.

Investors in gold ETFs have sold around 650 metric tons of bullion gold so far this year, driven by improving prospects for U.S. economy and expectations for a tighter monetary policy in the country. This is equivalent to the amount that rushed into the market eight months after the collapse of Lehman Brothers when investors were searching for a safe haven, he explained.

Contrary to what many believe, Grubb says that higher interest rates will not be negative for the precious metal.

"A lot of analysis shows if real rates stay between 0-4 percent, gold can return about 7-8 percent per annum or more. That's our point of difference with the longer term bear view of gold, even rising rates could be positive if real rates aren't too high," he said. Rising rates imply higher borrowing costs and are seen as negative for gold, which is an asset that does not pay interest or a dividend.

Peter Schiff: Was Bernanke Just Not Feminine Enough?

Monday, August 5, 2013

A-Rod Would be a Better Fed Chairman Than Bernanke or Yellen

Focus on Big Picture, Buy Physical Gold

"When the gold speculators realize how wrong they have it and when they try to reverse those positions, I think a lot of the gold that they sold on the way down is not going to be available for sale on the way up. I think you’re going to get a huge spike in prices."

Peter Schiff on CTV: What's the pin that will prick this new bubble? (8/1/2013)

July silver imports highest in 5 years

On the other hand, gold has seen a steep decline in imports in June (only 8.908 MT) compared to 37.618 MT in May, the second lowest in last five years. Overall, in the first four months, gold imports have grown by 104.27% at 78 MT.

Experts say traders are importing more silver because of trade restrictions on gold by the Government of India since June 3. The decrease in silver prices over the last three months is also driving imports. "Due to restrictions on gold, these figures were expected and traders are waiting for gold prices to fall further before they start buying," said Kishore Javeri of Javeri and Company.

Some traders also believe that the decrease in imports is also because of the depreciating rupee. "The rupee is touching 60 and there is also market pressure to maintain the balance in imports of gold, hence the decline in gold imports," said Monal Thakkar, president of Amrapali Industries.

"Silver, unlike gold, is very erratically imported. There have been periods when silver imports have been zero. Gold imports have been consistent until last month," said Samir Mankad, director of Gujarat State Cargo Exports Ltd . He added, "Silver imports are also high due to physical inventory available to store silver."

Aram Shishmanian, CEO of World Gold Council said, "It is well known that there is a deep belief in gold and its long-term prospects in India and China. Since the sudden drop in gold prices in mid-April, which was driven by the US investment markets, this belief has been reinforced."

Source: IndiaTimes.com

Gold holds above $1,300/oz on Fed stimulus hopes

Gold held above $1,300 an ounce on Monday, but came under some pressure as the dollar steadied after mixed U.S. data last week left investors less sure the Federal Reserve would start to scale back its stimulus next month.

Early last week, strong U.S. GDP and factory figures led to losses in gold of around 3.5 percent. However, prices rebounded after data showed U.S. employers had slowed their pace of hiring, which quashed prospects the Fed will start tapering its bond-buying as early as September.

Spot gold was down 0.2 percent at $1,309.05 an ounce by 1339 GMT. U.S. gold futures for December fell $1.90 to $1,308.40 an ounce.

The dollar, softer initially, steadied against the yen and the euro. European shares edged up to a two-month high and benchmark U.S. Treasury yields fell to 2.6 percent, below July's two-year peak of 2.755 percent but still higher than at the start of the year.

As gold pays no interest, the returns from U.S. bonds are closely watched by market participants.

Gold, seen as a hedge against inflation, had gained in recent years as central banks acted to boost their economies. Prices touched an all-time high of $1,920.30 in 2011.

In recent weeks, the Fed has said it would begin tapering its $85 billion monthly bond purchases if the U.S. economic recovery retained momentum, prompting investors to monitor housing and jobs data closely.

The next data the market will watch is the U.S. ISM non-manufacturing PMI at 1400 GMT.

"People will monitor today's ISM numbers and you may see additional liquidation with a good number there, especially if the dollar continues to strengthen," MKS SA senior vice president Bernard Sin said.

"If we fall below $1,300, the next level I would look at is $1,270."

Saturday, August 3, 2013

Peter Schiff Gets Totally Owned On Larry Kudlow's Show In Debate About Inflation

Here's some great Goldenfreude from last night's Larry Kudlow show.

Peter Schiff, the famous gold advocate and hyperinflationista, battled with economics professor Scott Sumner on the issues of inflation (or lack thereof), quantitative easing, and Janet Yellen.

What's great is that Larry Kudlow started off with a mea culpa about having once been wrong about thinking that QE would cause massive inflation, which is a rare thing in the world today.

Sadly, Schiff offered no such Mea Culpa, instead arguing that we're already seeing massive inflation (which Kudlow obviously thought was nonsense, at one point telling him to not go on a tangent).

Near the end, when Schiff finally made a point that they all agreed with (that there were too many regulations), Kudlow actually said "Good for you, Peter" in making a point that was solid.

Anyway, we're happy to see the hyperinflationist stance get clearly marginalized, and for more savvy voices like Scott Sumner (a big advocate of Nominal GDP targeting) get more attention. (via @izakaminska)

Sources: businessinsider.com, CNBC

Dollar drops broadly after weaker-than-forecast jobs data

(Reuters) - The dollar fell against the euro and the yen on Friday as weak signals on the U.S. labor market lessened expectations that the Federal Reserve would start reducing its bond purchases in the near term.

The Labor Department reported that U.S. employers slowed their pace of hiring in July, data that could make the Fed more cautious about scaling back its monthly $85 billion bond-buying program, even though the jobless rate fell to a 4-1/2-year low.

After a string of better-than-expected data this past week that had buoyed optimism about economic growth in the second half of the year, the tepid jobs data served as a reminder that the recovery faces headwinds.

Expectations that the U.S. central bank may start winding down its monetary stimulus program as early as September have buoyed the dollar this year, but those hopes have faded a bit in recent weeks, and the Fed on Wednesday offered no indication of a near-term move at the end of a two-day policy meeting.

Less stimulus could prod a rise in interest rates, potentially making the dollar more attractive for investors.

"Any misconceptions that the Fed was looking to taper in September have been blown out of the water today after the nonfarm payrolls number disappoints to the n'th degree," said Douglas Borthwick, managing director at Chapdelaine Foreign Exchange in New York.

"The U.S. economy remains on a shaky foundation in terms of both GDP and employment. Until the foundation is strengthened, the Fed will be forced to continue its easing bias."

U.S. employers added 162,000 jobs in July, which was below the median forecast in a Reuters poll of 184,000. The jobless rate fell to 7.4 percent.

In late afternoon trade, the euro rose 0.6 percent to $1.3278, having hit a session peak of $1.3294, according to Reuters data.

Against the yen, the dollar shed 0.6 percent, to 98.98 yen, having fallen as low as 98.65 yen.

The July jobs report was in contract to Thursday's data on jobless claims and manufacturing data that showed the world's largest economy was recovering steadily. The robust data had pushed U.S. yields higher and widened the gap over German, British and Japanese bonds, and buoyed the dollar.

"This disappointing payroll number will undo some of the positive market momentum on the economy and the dollar from yesterday's strong ISM and jobless claims reports and justify the Fed's caution on quantitative easing," said Joseph Trevisani, chief market strategist at WorldWideMarkets, in Woodcliff Lake in New Jersey.

Jobs, GDP, and the Fed: Propaganda Disguised as Information

Friday, August 2, 2013

Peter Schiff: The Government Is Lying About the Economy

“Government economic statistics is not really information, it’s more like propaganda. Individuals and investors need to look through that government smoke screen, open up their eyes and see what’s actually happening… If you look at the contracting labor force, the declining use of energy, the explosion of poverty in America and income inequality, record numbers of people on food stamps and disability, all the part-time jobs that are now replacing the full time jobs… All of this is consistent with a shrinking economy, but the government won’t admit it.”

Peter Schiff: Buy Gold and Don’t Trust the Fed

“The only reason the government was able to get a GDP number as large as 1.7 is because they assumed inflation was 0.7% on an annualized basis… I don’t believe that for one minute. I believe inflation is much higher than that and if the government used an accurate GDP deflator, we would already see that the US economy is currently in a recession… The Fed knows it’s going to increase QE, but it can’t come out and say that… Because it doesn’t want the world to know just how weak the US economy is and how dependent it is on ever increasing doses of monetary heroin.”