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But the Fed doesn't buy crap mortgages from banks

LOL....that's funny. Bernanke is buying them and the banks are selling them. It doesn't matter who is in the middle of the transaction. All the fraudulent mortgage paper is going to end up on the Fed's balance sheet - it's where that $hit will all be buried forever.

Have you figured it out yet Toddster? The ponzi scheme should be obvious even to you at this point. Bernanke is going to paper over everything, and pay 100% of the cost of the federal government too while he's at it.

QE will not stop until the dollar is totally destroyed, they can't stop now. The event horizon has been passed. HAHAHAHA. Even you must have bought some gold by now. Too bad you didn't start when I told you to years ago. Gold has been and will continue to kick the $hit out of stocks...and every other asset class.

Sigh. That’s a confidence boost for the dollar. /s

The dollar is toilet paper just like the other paper currencies. Gold will punish them all - it's quoted in 4 digits now against ALL currencies. Gold isn't changing, the fiat currencies are.

We are still waiting on the inflation ~ looks more and more like yet another round of deflation.

Please let me know where you buy your food, energy and medical care? I would love to shop there.

don’t think that was it. that discussion looks like it was referring to john williams of shadow stats and his newsletter.

Did he opus out, attack a moderator, pull a pissant, or what?.

What does opus out and pull a pissant mean?

Saw that, that was epic.

All that surplus cash now available as people dump stocks will have to go into BONDS and MORTGAGE INVESTMENT VEHICLES.

Should be able to remortgage your house for UNDER 1% in a week or so.

USA should be able to take all its sort term and long term debt and replace it with paper paying only a fraction of a percent ~ or maybe NOTHING AT ALL~!

Not likely. Interest rates will stay low for the short term because the fed is buying up the entire yield curve now. However, once significant inflation sets in, the bond vigilantes will awaken and punish bond holders. You will lose your @$$ if you are holding bonds. Cash will flow into gold, the only safe haven out there. It's happening right now

He got the zot? When did *that* happen?

http://www.freerepublic.com/~toddsterpatriot/

Gold $2000 by year end on this news, as the money printing is going geometric and the ECB joins the fed in "QE to infinity".

Hey - anyone know why Toddsterpatriot got banned. I was looking forward to asking him "why goldbugs are so bad at math"...ya know..it's getting hard to do the math on gold's relentless rise.

Gold is super-hot right now because we have monetary hyperinflation being masked by economic deflation; If we do a Greenspan-Reagan maneuver to pull out of this death spiral, you’ll see a spike in unemployment and interest rates... but then somehow, but a crash in gold. But then your stocks will start taking off, and if you rebalance your portfolio frequently, you’ll have taken your profits from gold already.

How's that working out for ya? Down cratering and gold about to pierce $1700...

We are still in a deflationary spiral with the three areas that everybody sees standing out as anomalies i.e. food, fuel, and medical care. Food and fuel are going up due to speculation and hot money looking for ways to park itself and medicine is being affected by Bork Obunga's machinations.

What do you think now? ECB has jumped in the fray tonight (to bailout Italy, they will print money and buy bonds) and will join Bernanke in the printing orgy. Paper fiat money will continue to lose value, except now it's going to happen at a geometric rate.

Ain't gonna be no deflation in this case. Paper money cannot become more worthful as it is increasing exponentially in volume.

Your so called "worthless" gold is fulfilling it's destiny. Just printed $1692 in this evening's trading. What you don't seem to understand is that gold isn't changing or becoming more valuable, it's the fiat money that is becoming worthless.

The reason dollars are so stable and dependable...

Panama, you just officially jumped the shark.

Losing 98% of your value over 100 years is not "stable and dependable." The fiat money life cycle always includes a blowoff at the end as the math of compounding interest and the inability to grow forever in a finite world hits the wall. We'll see how that "works for you" as this chapter in fiat money history draws to a close.

The puppet masters will start all over again with another "dependable" currency after the $US fails, but only those that stored their wealth in real things like gold will be able to transport that wealth from the current system to the next one.

The lifeboats are filling up...get out of the bar and stop listening to the band.

There've been lots of articles criticizing the Fed and all the ones I remember flip out with nonsense such as Bernanke's intentionally created runaway hyperinflation so he can wreck America so let's fix it by buying gold, and on, and on.

The bankster/gov't playbook always indicates defaulting on mathematically unpayable debt through "financial repression" (google it) and high inflation. If you don't know your history or don't want to learn it that's fine, but you will suffer the consequences of your inactions.

Gold is $1600 today for a very specific reason: Money printing on a scale that boggles the mind. Many $trillions have been printed so far by banksters and government buttheads, and the rate of increase of the money supply is INCREASING as we speak. The inflation is already in the system, nothing else needs to be done at this point to "default" on the USA's unpayable debts. Tidal waves of inflation will be unleashed in the coming decade lifting the cost of energy, food and everything else (except your paycheck) to vertiginous heights.

Gold is like the fire alarm telling you the house is on fire, but you choose to ignore it as well as the smoke all around you. If you store your wealth (including any future payment streams owed to you, like pensions, social security, etc) in $US your standard of living will get a severe beat down this decade.

What I find funny about people that don't get this, or argue vehemently against it is that at this point in the game they are basically arguing against 3rd grade mathematics. The astronomical debt levels, coupled with compound interest ensure that the debt CANNOT be repaid in current "value" dollars. That means there will be a default. Political expediency and 100s of years of history show you that this default will happen via massive inflation.

Sold my GLD 2 months ago [november 2010]. The market is stabilizing...not recovering yet, but stabilizing...gold is done imo.

$1600? Not done by a long shot. Great job junior!

The whole gold vs stocks thing is kind of lame. Under any circumstance, it’s insane not to have both in a well-rounded portfolio.

You're just a fount of knowledge today aren't you? To paraphrase PTJ "gold is just an asset like any other, it's got it's time and place. that time is now"

Gold has crushed stocks +10 years running now, so NO it's NOT appropriate to have gold and stocks, unless you want to underperform.

I will sell gold for stocks and RE when the valuations have adjusted to all the money printing and guys like you are buying gold at $5K/oz.

Some would point out that inflation makes paying off debts easier, but let's go with the idea that Obama and Bernanke got together and decided to bring about a US gov't default and that's why we've got runaway hyperinflation.

It's probably too much to ask you to read your history. many of of have seen this movie before (100x) and we know how it ends and what the plot is (why there is inflation).

There's no requirement for you to educate yourself however, you can keep believing the bagdad bob inflation and unemployement #s to your heart's content.

If I recall, you were the guy a few months ago arguing that there wasn't any inflation in grocery prices. LOL. Whaddaya think now? It's only going to get worse from here.

Ok you are clueless. Here’s my last post to you. I’m not talking about illegal counterfeiting, I’m talking about the legal counterfeiting the fed is doing right now. They are massively increasing the quantity of dollars, thereby robbing everyone of their wealth through inflation.

Run along now.

Sold my GLD 2 months ago. The market is stabilizing...not recovering yet, but stabilizing...gold is done imo.

Great move Ghecko. Did you sell your silver too?

It's true that price trends affect the impact of the burden of debt, but the idea here is to handle public debt with economic growth, not inflation. The moderate inflation is only needed for preventing deflation.

You're delusional if you think the game plan isn't default via inflation. The debt can't be paid and won't be paid in current purchasing power terms, it's mathematically impossible. Peak oil has also guaranteed slow-to-no growth, so there's no way to grow out of this. Bernanke knows this and that's why he must keep printing.

The value of a commodity can change rapidly. LaRouche and Paul don’t like you to know this, but one good breakthrough in mining technology could wipe out the entire nation’s wealth if we switch to a gold or silver standard.

Stupidest. Post. Ever.

One good breakthrough in printing press technology plus a helicopter could also wipe out the entire nation's wealth right now on the fiat system, as outlined in Bernanke's helicopter dissertation.

Are you clueless or what?