When Black is White, Up is Down

I think it was a Bloomberg quote "Dollar Strengthens against Euro because Inflation Numbers Rise"

It may as well have said, "Impoverished, Bankrupt Nations Currency Rises in Value against a Profitable Nations currency because the Bankrupt Nation Prints More Currency!"

We - as in planet earth - are so far down the rabbit hole of insanity, we are losing touch with the light. Not only is the U.N. close to imposing a worldwide carbon tax based on their blood thirst for control with environmental issues as the excuse, but we are begging China to guillotine us by raising the value of the Yuan.

Adding to the ridiculous landscape, gold and silver took a thrashing. It boils down to liquidity being crushed by the SIV's and alphabet soup products being revalued to their intrinsic worth - closer to naught, than what they bought!

A few trillion in derivative write downs can take a lot of central bank intervention to balance the books. Numbers like $49 billion at Citibank even catch their attention. That's how much they may lose from their books. Considering that amount of money could sink the PM markets, it certainly had an effect.

Pro's are smelling deflation.

Their wrong of course. We will have inflation and we will drown in it, but that comes later. Now the deflation threat captures their attention and inflation rears back to deliver a stunning blow in the first quarter of 2008. Oil will lead the leg up and gold and silver plus their base metal brethren will follow. They will run hard and fast before the early summer breather.

This mortgage bailout fiasco is equivalent to Soviet central planning and is destined to destitute many. Mostly the new buyers who will no longer qualify under the necessarily stricter standards, and the investors who are getting their hands shackled by big brother.

Welcome to the Orwellian Zone...where gold isn't money, the dollar goes up in value with each new one printed, the government thugs can rewrite any of your contracts, and the U.N. can both pollute more countries than any person or company with depleted Uranium yet impose a useless and demonic global carbon tax - on life itself - for no reason but control, and have people celebrate it.

Time to find a new planet to colonize. This one's headed for the crapper..