With one big cash cow supporting the offshore derivatives casino going down on the one hand ... and on the other, chaos in the euro-zone made all the more likely as a consequence of this destabilization — raising the likelihood of a mad scramble for cover as the disease afflicting the banking system takes a severe turn for the worse with the cash cow's undoing — the Big Inflate over recent decades, at last, clearly can be seen in its death throes.
First, the sinking cash cow...
And now, a place near the epicenter of growing risk of chaos in the euro-zone...
Bernanke was asked in Congress today what was behind the explosive rise in the price of gold. The man had no explanation.
Sometimes you've just got to love politics. That Bernanke would plead ignorance was known before this question was even asked. Yet that the question was asked at all simply was the polite way of saying, "Mr. Chairman, you're an incompetent fraud."
Like I said yesterday, the lug nuts could be coming off the market any second now. Today's letdown might be born of recognition that, the Fed and Treasury are ill-disposed to handle the disaster in the Gulf of Mexico, particularly considering the collateral damage threatening the institution of the presidency. The dope we have at top simply cannot stop acting in a way ensuring his power soon is incapacitated.
That's bad news for those who thought they were getting change they could believe in.
But for those seeking chaos? It's just what the doctor ordered.
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