Big surprise from fed: tapering not possible, ever.

Today's big story, at least in the eyes of the lame stream media, is that Bernanke is not going to taper as everyone expected.  This is big news, I guess, to those who listen to the party line.  Of course, it is no news at all to people who know what is really happening.  In short, the global debt Ponzi is collapsing and arrogant Ben Bernanke has shot a full, 20 round clip of economic terrorism bullets at it but they just bounced off.   Printing new money, it seems, is not the panacea that everyone hopes it to be.  The economy, that is, the mood of the people, turns out to have a free will after all.

Now, for people who still don't get it, here is what will soon unfold.  But before I tell you these things I will tell you the real reason WHY I know they are going to happen.  Thus, when they do happen there will be no question as to how I was so sure of these events in advance.  In other words, I don't want anyone to think I got a lucky guess in, etc.  So the real reason that these events will transpire is that Ben Bernanke and the USA are leading a willing coalition of Keynesian con men at the global level who are running a global debt Ponzi.  This has been in the works since Bretton Woods in 1945 but its fate was sealed in 1971 when the US delinked the USD and by proxy ALL global currencies from gold.  That move turn them from something resembling money into pure fiat currency which is a confidence game.  No con ever ran forever and the debt Ponzi based on fiat currency and fractional reserve banking is a con as it relies on the CONFIDENCE of the participants in order to appear normal.  But the participants (AKA patsies) have now lost confidence.  This is the reason that the con is dying right here, right now.  It may or may not be a quick death (nobody can predict the timing) but it will be a sure one.

And with that said, here is what will now come to pass:

• Step 1 happened today.  Bernanke essentially admitted that tapering is not possible right now.   He listed things that were improved but that is all marketing bull$hit for the con.  Millions of people are on food stamps and millions more on fraudulent disability.  The federal government keeps racking up more debt to feed them in order to maintain control and to stay in power.  But the control will be lost as soon as the money runs out and so the treasury must continue to go into deeper debt.  Well, nobody is buying the debt except the fed!!  So if the fed tapers then interest rates will rise, the economy (especially the housing sector) will collapse and banks will die with it.  Because of this, the fed cannot taper now.  In fact, it cannot taper ever.
• Step 2 is coming up and that will be where maintaining the current level of money printing is not enough to keep interest rates low.  They will begin to rise despite the fed's promises to continue buying 85 bn of treasury debt each month.  In order to keep interest rates low, the money printing will not be tapered but rather INCREASED.  Failure to do so will result in instant confidence loss and so the fed will do it.  They will have a whole marketing story explaining why it is needed and they will likely find some sneaky back door way to implement it so that it sounds like something other than money printing but money printing it will be.
• Step 3 will be a rapid rise in interest rates despite increased money printing.  This is how the market will be signaling complete loss of confidence in the fed.  Once the market loses confidence in the con men, the con is over.
• Gold and silver will take off in price as everyone exits the debt of US and other sovereigns.  In other words, the owners of these electronic accounts will go looking for safe havens to "ride out the storm" and there is nothing safe when the sovereign debt is considered risky because all other asset classes besides gold and silver (and hard commodities) have been pumped up by actions of the con men.  The rule of "something in the hand is worth two in the computer files of your broker" will become clearly understood by the sheeple.
• The real economy will expose itself as the GDP actually falls in lock step with the treasury's inability to conjure up new debt at interest rates that the taxpayer can afford.  Why will they have problems now??  Because the confidence in US government and in the fed will have been lost.  So the days of very low interest rates for US debt are coming to an end no matter what Ben the con man says.  When the GDP falls it will be like the receding tide that Warren Buffet famously warned about: we will see who is skinny dipping.   In other words, the debt will remain but the GDP which was pumped up temporarily by the use of that debt will plummet.  This will leave the US with a much, much higher debt to GDP ratio than the con men are advertising it to be today.  High debt to GDP will lead to more sovereign debt downgrades and thus higher interest rates.  The virtuous, self feeding cycle on the way up will reverse into a vicious, self destroying cycle on the way down.   You know, just like the model of any Ponzi scheme.
• Finally, and nobody knows when, there will be a currency event of some sort.  It will likely be associated with bank closures, "bail ins", civil unrest and perhaps martial law (looks like government would rather shoot at the people than to be held accountable for running a debt Ponzi of historical size and importance).  Government will steal everything it can from anyone who is within their grasp.  People's retirements will be haircutted.  Insurance annuities will default.  Social security and medicare will be "reformed" (AKA "ripped off").  Taxes will be raised.

These things are coming, sure as sunrise.  Some people will find this post humorous or "extreme".  I find these people to be thick headed and unable to do math.  We'll see who is right about what soon enough.