In fact, John Hussman points out that the USFed on a net basis has injected only $15 billion into the banking system since March.
A tiny sum given the $12 trillion size of that system. ![]()
Powerful medicine is coming, which will ensure bigger rate cuts and bigger USDollar damage, the next impetus to power gold upward toward 1000 !!!
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SOCIAL CHAOS COMING
In the next several months, expect rising chaos to gradually strike the American fabric. The list of triggering factors grows almost with each new season. Look for problems and intense social reactions to extend from:
Rising food prices, such as bread, milk, cheese, eggs
Rising gasoline prices with scattered shortages
Lost jobs from corporate outsourcing trend resumes
Lost homes from bank foreclosure
Later on, bank run on deposits at failed banks
Later on still, freeze on stock accounts, as corporate parents go bankrupt
The 'crack spread' describes the difference between the crude oil price and the gasoline price. It has widened to do harm to gasoline refiners. Unless a 50-cent move comes to the gasoline price, expect wide gasoline shortages. It is simply unprofitable to produce it. The food price issue is an offshoot from the mandated movement toward ethanol. In this crazy world, almost everything is connected.