Greg Mannarino on the $85 Billion a Month Gorilla in the Room

Bernanke QEFinancial analyst and trader Gregory Mannarino says, There will be no Fed taper . . . the Fed is the $85 billion a month gorilla in the room, and this will be increased sooner than later.”  Mannarino contends, “The Fed will not allow the dollar to be strong . . . They have no recourse.
There is no recovery here in the United States.  There is no economic recovery over in Europe.  The central banks are going to attempt to print more in greater amounts to keep this propped up.”   
Mannarino goes on to say, They’ve already lost control here.  We’re just watching a slow motion train wreck come apart.”  Mannarino steadfastly recommends putting some money in physical gold and silver.  To his critics, Mannarino says, I think people are missing the big picture . . .  keep dollar cost averaging until the cows come home   Obama Care will be “awful” for the economy, and Mannarino points out, This will be a wealth transfer.  It’s that simple.  They want young healthy people to subsidize the older sick ones.”  Mannarino goes on to predict, “This is going to kill jobs beyond a shadow of a doubt.  It is going to steal money that could be put into the economy.” 

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Comments

  1. Sounds like we need some Mr. Bill & Pokey comments

    • Yes we have been QE-ing money into existence, but if you are going to be talking about whether currency is increasing you can adequately address the issue without also taking into consideration;

      1. The velocity of money. This is at all time lows with debt repudiation and its accompanying fractionally leveraged currency destruction. Yes the Fed is QEing money into existence to buy Treasuries from Primary Dealers, but the Primary dealers arent intoducing that currency into existence to leverage up the fractional reserve currency creation scheme, but is rather being kept in reserve by the banks. Now the banks collateralize their -try not to laugh- Tier 1 Assets like Treasuries through…
      2. Shadow Banking. The repo market is where currency is now fractionally created, versus the traditional ”Bank loans money into the economy” model. By rehypothecating Treasuries, Banks now create currency outside of the more regulated “loan money-keep 10% in reserve” system. The B.I.S. recently put some strictures on how much Treasuries can be repo’ed. 

      I thought it was very significant that back in Sept, when the Fed said ”no-taper”, the next day they declared they would be ”reverse-repo-ing” their Treasuries hoard, which in effect has the same effect of buying Treasuries, if the Fed is simply collateralizeing the ones they already have.

  2. Russians propose bill to ban $USD. Predict US collapse in 2017:
     http://www.washingtontimes.com/news/2013/nov/13/bill-would-outlaw-us-dollar-russia/

  3. Trying to connect all of the dots my ownself, just wondering what posters here on the Doc are figuring with all the bad economic news worldwide, the debt ceiling issue coming up, ObamaCare scandal, all other government scandals included, the Fed policy (s), please advise to your earnest opinion the following. When will the bond, stock market, derivatives truly collapse along with the Petro dollar?
    Seems that The Guru factions are backing off an imminent collapse and ranging out to a longer time frame. It makes no sense at all that the metals should be going due South, unless it indicates the very last hurrah of the Fiat System? But, nobody is saying that.Just wonder why? The pegs are coming out of the holes, the seams are breaking, the bubbles are bubbling and to me, IMO that all Hell will be released very soon rather than a longer time down the road as there is no road left?
    What do you think?
     
     

    • “When will the bond, stock, derivatives truly collapse along with the Petro dollar?”
      Maybe those markets never collapse?   Maybe we have corrections in the coming years, but not a total collapse.
      All major central banks are expanding their balance sheets, and they will continue to do so down the road, this can go on for a long time.
      All major currencies will lose value in the years ahead, this is not an end of the world outcome. The dollar and Euro will always major currencies, they are not going to collapse, just worth less some day down the road.
       
       
       

    • zman is right, Nothing will ever go wrong.
       
      It is Sunshine N Lollipops from here on out. Nothing to worry about. Oh, and sell all your gold and silver, as you will never need that either as currencies never collapse. You are all just a bunch economic and financial retards and doomers. 
      :)
       

    • As the cost of a loaf of bread goes to $1,000, that is if you can find an open store. Because they won’t be able to buy inventory with the inflation rate changing by the minute.

    • @MaryB
       
      Well, Mary, as a fellow baker, I can truthfully say that I will never charge $1000 for a loaf of my bread, even if it is WAY better than the manufactured breads the stores sell.  $500 a loaf is my absolute top price.  I fully expect to do a land-office business at that rate.  ;-)

    • It is difficult to say but we can still have a bit (up to five years minimum) to go yet. We need a catalyst for things going down fast and at the moment I don’t see any, bearing in mind how rigged the markets are by the Central Bankers. Only few things can turn things around (down) fast in my opinion: 1.- A natural catastrophe ala Fukushima (impossible to predict) 2.- Social unrest, specially in EM countries (not sure about this one, since 99% of the people don’t care about anything these days – look NSA scandal-) 3.- That the “markets” think that the printing “party” is not going on fast enough. Probably this is what is really going to happen and unleash an inflationary event followed by social unrest. But again, don’t understimate the power of Governments and CBs, specially since all (and I really mean all) are in trouble and getting together to keep the actual Ponzi going. They know that if this printing madness stops they will be for sure out of a job and even the life of many of them will be in danger. So there is no hurry on their side to bring the collapse forward, you can be sure about that. Otherwise they would have allowed the banks to fail a long time ago.

  4. Ranger  You know I willopine on your question.  I am getting avery bad feeling about the situation lining up world wide and in the country.  But like EdB said many months ago, the Eurozone will crater first.  Their situation is quite a bit worse economically, with higher unemployment, more currency controls, more QE coming out from the ECB and UK Banks, lower rates probably to NIRP , thus creating more malinvestments.  This crap fiesta will flow across to our country, lead first by some really bad derivative implosions that take down their much weaker, more highly leverages illiquid and insolvent banks.  DBank, SoGen, Credit Ag, Buba and others are badly leveraged but the Irish and Scottish banks are hard pressed and nearing bail-ins to save them
    The GDPs of the Europe zone are hard pressed, in recession with Spain, Italy and Portugal in dire straight.  Japan is a wild card with imports dropping like a rock and debt ot GDP skyrocketing  No amount of QE is making inroads to helping their GDP.  So we are in  a pincer–EU on one side, Japan on the other.  One or the other wide have a collapse of some sort which will precipitate a bad situation here, with equity markets dropping and banks tanking

    • Agreed, AG.  The EU-Japan nut-cracker will put tremendous pressure on the “nut” caught between those jaws.  But, not to worry.  Obama has this under control too.  Just ask him and he’ll tell all of us in the Great Unwashed (GU for short) that we don’t really understand high-level economics like he does.  All will be well.  Trust him.  Hey, if you like your currency, you can keep your currency. Period!
       

  5. “If you like your currency, you can keep your currency. Period!”
     
    Great line Ed.

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