My Prediction - Endgame and Gold

[MrFalconford]

Is gold a metal? or is it a thought?

[TheSilverWatch]

Very well done indeed. Buy physical Gold and Silver, hold it until the patsy explodes!

[nickrhill]

Hello flaskofcoffee. Thank you for sharing your thoughts!

You say: "Default is deflationary as it destroys money". Is that necessarily the case?

Money is borrowed against, say, a house. That money goes through account to account and through fractional reserve banking grows to 10x the original.

If the original loan goes bad, the money that loan created doesn't evaporate. Isn't the nett effect a hole in the balance sheet equal to loan minus foreclosure price covered by fed printing TARP money?

[tyronebiggums3]

patsies... fannie mae, freddie mac??

[flaskofcoffee]

Could be - stack 'em up with junk, then let some 'surprise events' take 'em down... and the mess is buried with them.

[ziggy2sound4u]

@flaskofcoffee

Of course, my question is, since these "patsy" are sitting on bad loans, that the average American has defaulted on, how does the "survivors" plan on making money on these assets?

I mean, you have a lot of Americans that have simply "walked away from their obligations", since interest rates have climbed(for instance on mortgages).

There are a lot of empty houses sitting around the country, now.

What about credit card defaults, on mostly non-recoverable items?

[feegeit]

great vid

[legion0101]

thanks FOC...do you believe the US is currently undergoing a kind of subtle deflationary spiral as we speak?

95% of the money supply is in the form of debt. ie. bank promises to pay...and people are still consuming things they dont really need with money they dont have.

IMO, if we all had savings and limited debt (something i have worked to acheive), i think a deflationary spiral is just what the doctor ordered...and it must be intense.

[flaskofcoffee]

Hi Legion.

I think, as you suggest, we must still be in a subtle deflationary environment as the great credit bubble continues to unwind behind the scenes.

That does not mean that we cannot also experience some price inflation, in some areas - and certainly inflation EXPECTATIONS have risen - as well as speculative interest in gold, etc, through fear of inflation and 'unrest' to come.

The debacle is not over yet, imo.

p.s. Default (in the vid) could mean pensions, etc, not just debts.

[kevreilly7]

@legion0101 its inflation happening---your deflation arguement does not hold water when copper and silver and gold are at new all time highs

[NovusChaoMundi]

JP Morgan is holding a huge amount of shorts on the comex.

[fox20012]

watch?v=hoOLlqXu7bw

scary shit

[fox20012]

you know I cant remember where prolly was bob chapman, but some one was saying BOA was being loaded with toxic assests or something ... scary stuff

[recessionlover]

Confirmed it was Bob Chapman who said that the word was that BOA was being loaded with toxic assets. He also said that their CEO had resigned, and no one wanted the job. I also thought that when Flask mentioned a bank where no one wanted the poisoned chalice, I, too, assumed he was talking about BOA.

[bluecat1122]

This is an excellent video, thanks!

[boptah]

good video, i think the endgame is a one world currency, i just hope people don't fall for it,

[thereallurker]

Hello Flask, Please compare these 5 stocks side by side on a graph:

GLD, SLV, GDX, FNV and AGQ

Now, minus the risk of individual equities, you should see some pretty good returns on these ETFs, especially AGQ.

[NAVYGOLDEIGHTFOUR]

Cool beans FOC

[MarcusCMarcellus]

It's very appropriate in a Satanic sort of way that it's named "Bank" of "America."

Regarding Goldman, however, they may be forced to undo the bank holding company classification, which is scam, as a way of deflecting the pitch forks and torches, and this would make them less liquid overnight. I think the quiet banks like Barclays, Deutsche and Paribas will emerge the real winners in the end. Goldman's status as a political institution may eventually hurt it: he that giveth can take it...

[codematrix]

You hit the nail right on the head.

[CosmicDramaQueen]

Great Vid all the way around,,great cartoons!

[jocknomore]

So far the junk is being accumulated on the Fed's balance sheet

[RIPPING1001]

For the UK this has already happened, the govt banks are the patsies. The others may have more to hide/sell - will the government approve the transfer of more toxic debt into these patsy banks? - probally.

The default risk has now passed to the government , so surely the question is , when will the interest rates for these loans reflect the real risk of default... that must be the next development... or will our foreign creditors watch the value of their money be inflated away.

[Adahondeayenh]

You were also talking about a *possible* deflationary environment... I don't think so, Warren Buffet doesn't either. I see prices rising in stores

[Adahondeayenh]

With India, China, and 22 of the largest 24 Hedge funds in the U.S. buying gold, the future looks bright.

Follow the smart money and make the big bucks!

[webozzy21]

It will be interesting to see how it all plays out.

"May you live in interesting times"

[finster37]

thats if the comex stays solvent

[cosmosgato]

Fisk with your insight you're giving everyone here an inflatable raft on the Titanic, the industrialized world.

What is great about you is that your not doom and gloom youre pointing at the exit!

Thank you

[cosmosgato]

Sounds reasonable coffee.

What I would advise for savings?

KISS

Keep It Simple Stupid.

So real diversification and real hard assets.

Unmanaged Stock and Bond index funds

Realty and precious metals

Lastly doomsday, thus cheaply acquired, puts.

Oh and Goldman stock.

[davincij15]

Nicely done! HSBC is the patsy eh? Makes sense corporations exist for the people running it or profiting from it, thus it is logical to us a corporation that will fall on it's sword for everyone else.

The CEO will need an exit plan because it's a Chines bank and they kill leaders that commit fraud over there.

[Raycheetah]

Sounds plausible. Any idea of a time frame for this series of events, i.e., within the next year, or by 2012, or by 2015, for example? ='[.]'=

[StandUp555]

Yes 100% = 5 Stars !

BTW.... I have often recommended your posts often at IV , and agree that your scenario is most likely .

[NWOIS666]

***** stars !!!

[fal2grace]

Brilliant! thanks!!

[1mealperday]

Thank you!

[jaybaybaker]

where do you see a "Madoff of gold"?

[GuildF40]

great work :o)

thanks

[pardonwhat]

I would have thought the Dubai drop was the same as the leeman drop of orgs covering shorts and carries. Like your thinking though! my guess for end game favours default though this would not be an intentional game plan.

[InkedXyz]

Thanks Flask! Good info, and I think you are spot on with your theory.

[jaybaybaker]

great analysis!