Update for Weekend of 10/26

[KhmerD0g]

your are wrong at 8:24 because China will come out of this credit crisis on top as soon as they go through corrective phase because they are producer. the middle east countries will come out in great position because they have stuff. U.S. has nothing but consumers. 2-3rd of the GDP is consumers.

china, middle east, africa, south american and a few european countries will go one trading without the U.K. and especially the U.S.

[newutubejunkie]

Karl, looking fwd to the next vid.

The tide turns to socialism. The bailouts will continue, the coffers continue to be robbed, those that get the bailouts will continue to squander taxpayer money. Karl, tell us individuals what WE can do to protect our savings individually at this point.

[daozenrod]

Try cutting NYC and Chicago out of your life and figure out ways to keep money in your community rather than squandering the power of your money.

Alternative investments can take the form of creating your own. All the folks in NYC and Chicago do is package and repackage---and they just can't be trusted to do that little bit. So screw them.

Learn to think in terms of controlling a means of production and in terms of creating wealth--and leave all these crooks on their cross.

[daozenrod]

Markets are a convenience, to make investing easier, safer and transparent. And so the powers that be decided to prey upon the investors--RATHER THAN DOING THEIR DAMN JOBS.

So, when corruption takes over, when the market fails to play by the "rules" --and it has--get your freakin money out of their dirty corrupt ass hands--and don't ever trust them again--ever.

Just do something else, anything profitable that doesn't involve their "paper."

[huskie767]

3M Treasury rate down to .25%. The Fed is viciously 400% above neutral! Our Banks are freeking gasping for air and no one knows enough about Econ 101 to address it, including Econ 101 professors who know the least. Obama talks of massive super-colossal new spending programs while truckers can't get letters of credit against a truckload of hard goods to drive across a state. The Fed has drained our currency supply bone dry & Obama wants to put the head of the NY Fed in charge of the US Treasury!

[dsgspm]

what do you make of the last minute surge this firday ticker guy? also, what's your take on the outcome of the election vis-a-vis the market & the economy?

[SpeedingStudent]

New update please Karl! I love your updates man.

[U2ForNow]

Have you guys heard that there is talk on the hill about taking our 401K's and moving them into the Social Security? These people are nuts.

[batgirl791]

I heard of that. It wouldn't surprise me, they want to steal all of our wealth. when will people wake up?!

[Rentaghost76]

He got all pissed off cuz Obama won, loaded up the shotgun and took off in his pickup truck... watch out libs, commies, blacks and fags!!!!

Hell hath no fury like a Republican scorned...

[8cat18]

Karl, Where did you go? We need an

update!! : )

I am hooked on your video presentations, you are a wealth of knowledge.

[daniel987878]

Only world government can save us now.

Sarcasm.

[xrrecords]

Dontlook now another bank failure

"Freedom Bank taken over in 17th failure this year"

Stocks up huh? Tell me this if you had 1 million dollars and I take 800 thousand and give you back 100 thousand, would you consider that a gain? Abbot & Costello "Give me my Money" sketch from 1940's watch?v=oeHSr6VNvoc

[stealthjdm]

Please someone explain the reason gold and petrol hasn't skyrocketed yet??? Are they controlling the market so as to not freak people out???

pLEASE RESPOND

[jrm404]

Gold, Silver, oil and food will increase after the new year. There is so much money injected in the system that the dollar will be worthless. The National debt going sky high and so many layoffs GDP down that tax base will be down too. Banks have been given all this money and they are hoarding it.

[tenagliac]

Thanks for the information and explanation. I'm not an accountant, broker, or economist, but I think I understand.

This stuff is no ooops or accident. It's all planned and yes, voting is really important. I'll be in the booth on Tuesday.

[medulalumosa]

Oh wow Karl, Max Keiser just said on his radio show that he's reading your blog. He even quoted parts on the show tonight. Go to // karmabanqueradio [dot] com /

[gboy1441]

great vid kd, i follow your vids quite lately. i agree with everything you said and i wrote to two of my new jersey senators to ask them to vote against the bailout but they ignored their constituents.

i also mailed a 5-page letter to 8 senators and the SEC warning them about these problems back in february with no response.

im convinced the only way to fix things is to shut down spending completely and force change. if they dilute the dollar to try to force spending, we stay firm.

[batgirl791]

you are a very smart man. Listening to you has helped me confirm things which has saved us from a lot of losses since July.

[xrrecords]

Leave the Damn dollar alone Ben Bernanke Shyt!!!

[DonnaSilverstein]

Dead cats have always bounced.

[waughbodies]

karl please make another vid regarding the fed's rate cut today down to 1%. i'd love to hear your take on it.

[jecht8]

Vote Chuck Baldwin who has promised to end the Federal Reserve and yes, vote out the bailout supporters in Congress!

[saadasim]

Ron Paul but it is too late. Get ready for the tsunami.

[daozenrod]

The market went up about 900 points today, to climb over the magic 9000 mark.

Something is dead rotten in Denmark, no doubt.

[kdenninger]

Bear Market Rally. Seen many, will see more. Don't get caught short when they happen.

[daozenrod]

I thought maybe they were repricing the stocks because the dollar was about to drown from the great bailout water dilution.

The pundits have very carefully avoided mentioning stocks going up and dollar going down, keeping such reports in absolute segregation.

[neil9327]

Hi Mr Denninger, I would be interested to know whether you think there is any way to reduce the likelyhood of getting caught short on this kind of bear market rally we saw on Tuesday?

thanks

[ITILII]

Karl, Manoftruth, Visionvictory, Don Harrold, Dizzathedon, Ron Paul, Marc Faber, Rick Santelli, Peter Schiff and Jim Rogers are voices, crying in the wilderness....they are gems in a world full of dirt which is the controlled main stream media ....wake up friends to TRUTH and research these things, then do something to help yourself, and others...food, water, cash, are always popular items if you like living so take measures to provide, and get the word out...

[JiveDadson]

The yen fell 4.3% between Monday and Tuesday. Intervention? Or is the yen carry trade finally unwound? I suspect the former.

[davidnightingale]

Excellent video. One world currency = one world disaster.

[isisarchist]

Thanks for your informative videos. I really appreciate you taking the time to create and post them!

[centervilletn]

a big problem is the emerging market countries...as investors pull out of these countries we will see very serious civil unrest. We happen to have one of these emerging countries south of us...look at the 20 million that have crossed the border for work...how many will cross the border for food and peace?....and around many of these countries will fall into chaos that will cross the borders of other more stable nations...the likelyhood for war is greater than ever

[dustynbones]

WHAMMMMMMMMM!

Did you see that Market lose 400pts today?

[JiveDadson]

Currency dislocations are impossible under a gold standard. Having lots of different fiat currencies trading like commodities on an exchange is the stupidest idea ever. Money is on one side of almost every trade. Its value has to be anchored.

I am reading news reports about nations trading commodities directly. Oil for wheat. That sort of thing. It's come to that. Thousands of years after money was invented, we are back to bartering. How far off are pelts for clothing and stone axes?

[thomasst2]

Exactly. The reason the combo-con was able to pass is because gold was only traded internationally and in large bullion. the public was not allowed to redeem their dollars for gold which did not keep the system honest. In the past, gold was redeemable, but the Govt did not keep banks honest in bank note printing because the banks gave Govt massive lending privileges. Govt needs to stop intervening with unnecessary laws and institutions and start keep banks accountable by constitutional laws.

[8cat18]

Karl, should we start stocking up on food and emergency supplies? If so, what specifically should we buy? I now follow your analysis every week. Thank you for your time and sharing your expertise with us. Cat

[LudgerSylbaris]

Hey Karl,

What do you make of this guy Reinhardt?

watch?v=9pk50pWqCYg

[cmk7]

Are all you gold bugs out there forgetting this:

The Roosevelt Gold Confiscation Of April 3, 1933

[corporatewarrior]

And in the modern digital age it would be even easier to legislate to compel vendors to file a report to the IRS every time someone tenders gold so that buyer can get a higher sales tax payable in dollars slapped on them afterwards. Compliance or audit, with stiff tax evasion penalties. No need for troublesome confiscation of the metal (how archaic!), just stick it on that year's tax bill and take the money.

Velocity of gold, meet wall.

[imtang0708]

Thanks for another spot on, heads up Ticker Guy!!!!

[MzProgressive]

KD -

What do you make of this: "Pound Plunges" 10-27-08 from UK's Independent News watch?v=d1yqoEMXh1Y

BTW, Thanks for the very informative week-end update!

[escrotumus]

Karl: can you explain just what happened in the FOREX markets that prevented the crash on friday? I see lots of calls for the big one that never comes. It's beginning to sound a bit like the boy that cried wolf.

[corporatewarrior]

Yen sold for dollars. Check out USD/JPY. See that coiling sawtooth starting with the dislocation on the 24th? That's not good. They may have to defibrillate again tomorrow.

[aquafishsoup]

i kinda want to shoot some U.S. soldier on the country i was born in

[TechnoNubian]

great vid Karl. I too wouldn't buy gold and silver as well.

[scottgreg05]

Big thanks Karl!!!

In the squares of the city - In the shadow of the steeple

Near the relief office - I see my people

And some are grumblin' and some are wonderin'

If this land's still made for you and me.

[kendjo]

Ty for such powerful information.

[carri000]

it says 1929 for me too.

[AngriestAmerican]

Its already that for me,,lost my job. one week of Unemployment left..I'll be homeless YAY!

[AllahConsciousness]

At least you don't have to eat dirt to prevent your stomach acid from causing ulsers like people in africa. A king of the paupers you are...

[mikemikemofo]

get a job

[AngriestAmerican]

HAHAHA!!! There are 45 jobs in the local paper, mostly Nurses and medical.

A target opened up here, 200 jobs open, 3500 people showed up. I'll take a job for 1/4 of what I was making, and can't even get that!

[mikemikemofo]

don't you wish you were a nurse right now.

[stonedethyl]

still 1,929

[markymarkuss777]

I'm watching the video for the 3rd time now, and the views of the video are "1,929." haha go figure! Must be a sign.

[ohio1998]

great work! I'm 33% cash, 33% silver, and 33% commodity stocks that pay over 10% dividends. I haven't lost one minute of sleep! Keep together everyone!

[a012345]

Been shorting oil and financials in the meantime. Not really losing too much sleep either.

[XulChris]

ummm...you realize that if we have hyper-inflation...the stock market is going to go to the moon!

Don't forget, the zimbabwe stock market is up about 200 gazillion percent...in zimbabwe dollars.

I sure hope you are not short anything when the US dollar collapses into nothingness, because the dow jones in measured in US dollars...

[U2ForNow]

With heavy deflation I don't think gold will hold the level it is at now. Maybe $300 - $400 range.

[corvettedude346]

I would not be surprised to see the SPOT price of gold go to $300-400, but you would not find any physical gold for that, I am amazed we can still find it at current prices (well $50-100 over spot anyways)

[InTheSticks1881]

A worst case scenario is possible. If there's anarchy, the only good thing about gold is that it might be a good substitute for lead, that is of course, if you have the means to roll your own. Sell it early and only keep what you will not need to eat with. Don't forget the Band Aids. Highly recommend Survival Blog com.

[XulChris]

Gold will become the world's most precious metal. It is already nearly as precious as platinum, and rhodium is barely holding on to being twice as precious as gold. Just a few months ago, rhodium (the most precious metal) was 10x more precious than gold. If gold goes to $300-$400, that would mean all other precious metals would be virtually free. Don't count on it. :D

[davincij15]

You may be correct however...

Go buy JUST one ounce and tell me again how it's going to $300 - $400 on the physical side.

Silver is even worse at 50% minimum over spot if they have it.

Welcome to the United Communist States of America.

[crasster1]

Thank you very much. I sure do wish you would put some small updates through the week. I find you videos excellent and very informative.

I have 5 small children under the age of 9. I'm actually watching several people to help my conclusions when to jump ship and buy tons of food. I do think it's going to get that bad.

Thank you again!! Excellent. 5 star.

[davincij15]

buy a few ounces of PHYSICAL silver or gold if you can afford it. If not buy food.

[mikemikemofo]

buy ammo, use it to get gold and food.

[newutubejunkie]

Plenty have ammo so the likes of you will not take gold or food. Just try me for instance. I'll be looking for you to drop by.  Actually lots of us are.

[mikemikemofo]

don't wait up

[centervilletn]

can anyone explain how europe wanting the u.s. to fix exchange rates between u.s. and europe fits into this situation?

[chena3]

recessio

depression

tighten your belt

no big thing ..

dislocation ....

very big deal

loose your pants..

woof

bad doggie ..no biscuit ..

[chena3]

last friday currency exchange

saw some 10% moves

on major rates......

not a havard trained economist

but that is scarry stuff

might be worth researching ..

peace out ..peoples ..

[Repomex01]

Be it known that the other countrys are becoming skiddish and resentful at our ever stronger dollar they think we want to buy them out on the cheap. BIG CURRENCY DISLOCATIONS = WARS

[kdenninger]

Unfortunately war is indeed one of the historical "solutions" to these sorts of problmes... :(

[davincij15]

That is one point I can agree with, war is the historical solution provider.

However here in Toronto million dollar deals in gold are going on not involving the COMEX at $1075oz for the physical metal.

Good look on your assessment regarding gold.

[mikemikemofo]

i would say 'hey the US is great at that' but we are a little overextended right now.

[VIRUSx17]

start STOCKING UP PEOPLE!!!!!

[Ibilaemash]

Thanks for your time.

In regard of Europe be aware of the insolvency of the economic info published by Telegraph´s A.E.Pritchard. Both the paper and the man are known for their anti EU and anti Euro sentiment they have been proven wrong many times and give misleading economic information.

Every time the UK or the Pound are in trouble they point to Europe and the Euro like childrens to divert attention from their problems.

[corporatewarrior]

Actually AEP is right. Check out LME, look at the drops ~80% from highs in industrial metals. What do you think that's doing to the cashflow of Russian / East European resource companies? And who lent to them...in dollars? Europe. Think that's not a problem?

The UK's foreign investment problems are in Asia mostly.

[Ibilaemash]

I´m not saying there are not problems in the rest of the world. I´m questioning the reliability of the Telegraph and AEP. They are tied to a bitter political isue in the UK. The EU and the Euro. If you check their positions and informations back in time you will see how they often mix half truths with half lies and so not my reliable source for European info I rather check diferent sources in diferent countries of the EU.

[Ibilaemash]

The solution to the international crisis will be an international political-economical deal and the US have not much friends as in 1944. The rest of the world wants to leave the dollar because is an unfair advantage for the US an a weapon of mass destruction for anyone oposing US interests. Just look at Russia lately or the Euro after the July 17th 2008 when the US declare war on the Euro. For now they have to because their exposure to the drug.

[Ibilaemash]

Eeryone is afraid of the US retaliation but slowly and steadily the world will get together to use other currencies for trade, maybe each country will have reserves in the currency of their main trading partners. In the end the dollar and the US won´t be as important as today are. Fewer nations trust the US and that is the end of the Dollar reign. No trust no future.

[corporatewarrior]

I am aware of his political bias and that of the paper, he has written partisan articles before and they are easy to spot. However, this is not one of them. It is a fact that East European resource industries are being smashed by credit deflationary forces and their chief creditors would seem to be the highly leveraged banks of continental Europe, which loaned into the commodity bubble.

[dsgspm]

great wrapup. thanks

[Medusa72]

Mr. Denninger, I really like your videos. You have a talent for breaking it down without assuming that we are all stupid and oversimplifying it. You should be running for President.

[wcarlpdrysdale]

chuck baldwin 08

[InTheSticks1881]

Just thinking out loud... It's as if it were a juggling act that will eventually end. They are juggling hand grenades and some of the pins are loose. And as with any juggling act, there is also the possibility that they'll drop one as well... and we all get fragged if not blown up.

Greatly appreciate these videos. Thanks again.

[4evrMT]

Excellent information. I admit I don't understand everything but get the jest of most of it. So, Karl, if our 401Ks and 403b adn 457 has tanked 90K this year, over half in the last 6 weeks, would you move what you have left to MM (cash) to preserve what you can? The media says ride it out. I am thinking that seems nuts at this point? Your opinion? Retirement is now set back 10 years at least from what we had hoped for.

[kdenninger]

This is a crossroads point.

If we break the lower boundary of the flat triangle that we are in (and have been since the first low), you'd be nuts not to run.

The danger with doing it here is that we could easily rally 1000 points MOL on the DOW and not violate that pattern. Would you rather exit HERE or 1000 pts north?

This isn't a place you can put on trades, other than as a daytrade.

[4evrMT]

That is why I have bailed yet. The last 900 rally might have been good time to jump out. I must wonder how much farther that lower boundary is. I am hoping for another rally. I feel immobilized--between a rock and a hard spot.

[4evrMT]

I meant have NOT bailed yet.

[personkid20]

Brilliant analysis!!!!

[danoking69]

TRUTH!! SHARE!! EXPOSE!!!

[loqutor]

True, Obama won't fix the economy. But he won't screw it up, either. McCain will.

[ThndersRage]

Dems and Reps, same thing just a different flavor..

[mobiltec]

I would venture to say that the reps decided a very long time ago that they did NOT want to win this election. After all, why would they? And have to clean up their own mess?

[U2ForNow]

Very well said. Why are you not running for office?

[BassmasterBling]

I hear black hueys buzzing your house @ 3:10.

[valhala56]

the good thing about black helicopters and men in black is they going to be doing a lot of overtime. Big overtime bonus's coming for men in black.

[Repomex01]

I hope they have magical force fields that repel bullets. Damn I had a good practice session at the shooting range today!

[valhala56]

I think that crazy gun that Will Smith and Tommy Lee wield in MIB only works on aliens, so hot lead should do the trick.

[Repomex01]

Or maybe the bankers can shield them with thier Custom tailored Italian Armani suits?

And flanking Blackwater and KBR gaurd?

[valhala56]

I think the bankers have made a beeline to their bunkers with all the Gold Krugerands they have managed to spirit away in semi trucks, with Blackwater covering their retreat from the gathering villagers with the pitchforks and tar that is going to be awaiting their ass's

[bdc03]

You are wrong on one account gold is always a safe haven. Has been for the last 6k years.

[kdenninger]

Yeah ok. How's that gold trade been working this year? Down 30% since the top? That sounds like quite a 'safe haven.'

If we see the "worst case" scenario, tell me how someone who you wish to trade with (for, say, a chicken) is going to value your gold? What's he going to do with it? Throw it at an intruder?

[chooboohoo]

what happened to the "i told you so"...there was no crash...even though the futures had been "manipulated" to the downside...

[XulChris]

Wow, you are so *very* wrong about gold. Did you know that gold is almost the same price as platinum now?! In a few more weeks, gold will be worth more than platinum!! When was the last time you saw that?! Wake up man! Gold is hitting new highs against every major currency, and will make new highs against the dollar very soon! WAKE UP!

[Atoyota]

actually gold is at $75 right now, down from around $104.

[XulChris]

Actually you totally missed my point, which was gold's price relative to platinum or any other precious metal. To say that gold is doing poorly is just short-sightedness.

[Atoyota]

It's a good time to buy gold, because I see it going much higher in the very near future.

Not sure about platinum, palladium, or the others.

[carlfinkle]

Go long soap, it is the first form of currency in a collapse, this was the case in Wiemar land during the worse of it.

When it was over the first industry to get off the ground was paper recycling as people gathered up the worthless notes and sold them for waist paper value. Electron Recycling perhaps ?

In 1971 Nixon said " I am temporarily taking the US off the gold standard", "temporarily" ?

If you go off the gold standard you eventually go on the Soap standard.

PHD Parents Had Dough

[bdc03]

Gold has been a safe store of value for 6k years. Look at the 10 year gold chart. Don't look at it month to month lol. Also when the dollar loses more of it's value, which it will, gold is definitely the place to be. Also, every economist that actually saw this problem coming recommends gold. We should listen to the people who saw this coming not to the people who say "nobody saw this coming."

[WelfareRobot]

Ken, I dig your analysis, but why are you so bearish on gold? What's the alternative, depreciating fiat money? Stocks that haven't seen the bottom? I agree that some of the "goldbugs" may treat it with a bit too much reverence... but unless you got into gold in the last year, and don't expect it to rise any further, you've made money (which isn't even the point for many gold owners). Over in Zimbabwe an ounce of gold is going for about $300,000 of their dollars. Sounds like a hedge to me...

[SergejEisenstein1]

aktualy the highest Goldprice was already in march this year (little bit over 1000 USD), since then in had a declining trend. But looking at how busy goldsellers and goldcoin manufacturers are (working 7 days a week for over a month by now) i personaly cant explain it any other way but manipulation or: Companys selling gold-certificates for gold they dont have.

[davincij15]

Go buy one once of physical gold and tell me again how much it has come down from the top.

Premiums are through the roof if you can find anyone that has it to sell.

[Repomex01]

I tried on ebay today to buy silver rounds or bullion and people were willing to pay 10 dollars over spot jeez what a drag!! hell I have 1000TroyOz in small denoms. you were right dav...

[neil9327]

So perhaps there is money to be made buying silver at spot and selling it on Ebay?

Or would transaction costs, ebay fees, fraud risk, and shipping costs override this?

[BendoverBernanke]

You could make money off of ebay as long as you purchased PM's in quantity and just over spot.

[wisdomknight777]

your best one in a longtime Karl!

Thanks for your great update!

[GildedTermite]

I have no representative. Let it burn to the ground.

[forestlight5]

Thanks for the update. Your opinion is appreciated.

[spikesmth]

Once again, You're the man! I'd like to know who you are and what you do, cuz nobody else seems to have this depth of info!

[firethefed]

Thanks for the update Karl...

[ShiekYerbooty]

This is getting crazy, they are forcing sound small banks to merge with others whether they want to or not.

[acehydro06]

Thanks for all the info, I always make sure to watch your videos. Take care man.

[supafaith]

This has just gone from bad, to worse, to apocalyptic.

[mikemikemofo]

should we be stocking up on food and ammo now?

apocalyptic sounds pretty bad.

[TheHairyHeart]

Thumbs up! - and greetings from Denmark:-)

[SaveOurSovereignty2]

Thank you