Bennie has waved the white flag. The economy is so bad, that he MUST continue to buy $85 billion of debt from Wall Street every month or the economic system will collapse. He will monetize the debt until the very end. The rush for safety began at 2:00 pm on September 18, 2013. Got gold?
“The grand old man of the New York Federal Reserve bank’s gold department, the last Mohican, John Exter explained the devolution of money using the model of an inverted pyramid, delicately balanced on its apex at the bottom consisting of pure gold. The pyramid has many other layers of asset classes graded according to safety, from the safest and least prolific at bottom to the least safe and most prolific asset layer, electronic dollar credits on top. (When Exter developed his model, electronic dollars had not yet existed; he talked about FR deposits.) In between you find, in decreasing order of safety, as you pass from the lower to the higher layer: silver, FR notes, T-bills, T-bonds, agency paper, other loans and liabilities denominated in dollars. In times of financial crisis people scramble downwards in the pyramid trying to get to the next and nearest safer and less prolific layer underneath. But down there the pyramid gets narrower. There is not enough of the safer and less prolific kind of assets to accommodate all who want to devolve. Devolution is also called flight to safety.” - Professor Fekete