This has the appearance of well thought out analysis:

http://www.kitco.com/ind/Nathan/20130222.html

however my reply to this Bozo was:

Your refusal to understand the most obvious manipulation of all markets reduces your analysis to sophomoric drivel. Convincing and well thought out drivel..... Nonetheless - to deny that they are rigging everything is to deny the nose on your face at this juncture. We have had a total lift-off of non-reality since the "Euro Crisis went away”. Problem is that you buy that as proof of solvency and fixed problems. They have only bought another tomorrow - history shows that a great inflation is always enticing, benign and well received in the beginning for the uninformed as "problem solved". However, this is soon followed by a rip roaring Inflation that rears up its ugly head and bites you in half.

Europe resisted unlimited money printing at first and it was not until Goldman Sachs replaced every Eurozone leader (Monti, Draghi, Lagard), the IMF and ECB with their people that Europe came around to massive money printing and unlimited bond purchases. A deal that they could not refuse.....OMT (outright monetary transactions) for countries that have a 100 % chance of defaulting on all of this newly issued debt !!! Amazingly ballsy move !!! But it shows their desperation.......I suspect this money is massive funny money that originates from the big US banks and we will find out one day that we owe way more than we ever imagined.

I agree that the Fed has accurate and sensitive computer models that estimate the amount of money being destroyed by foreclosure, default and shrinking economic activity (Deflation) and then they print this amount plus 10 %, and then inject it into the money supply (Inflation) so that the net result is subpar growth. I agree that they can paper over bad assets on bank balance sheets indefinitely with trillions behind the scenes and it does not have an inflationary effect because it never enters the real economy. I also agree that they can lie about inflation by stating it at less than half of what it really is.

Wage stagnation because of massive unemployment is also a very deflationary force that keeps the middle class debt slaves and allows this wanton printing to go on with little noticeable inflationary effect….. However, look around and you and will see the inflation everywhere– it is really not that hard to find.

Of course they should get rid of the penny and the nickel at this time. The US Mint loses 40 % on every coin minted….. But they will not because this would accelerate the process of currency debasement because it would serve to remind people of what has happened to their disappearing currency and an inflationary bias would start to develop.

However, to keep the boat righted it takes larger and larger amounts to be printed and the imbalances become more and more until the economy destabilizes and the average Joe cannot keep up with prices anymore on his frozen paycheck and the end game is a runaway inflation. This is proven by the ever increasing and non-stop QE being poured into the economy each month. Think about it…. six and half trillion of stimulus cash and zero percent interest rates for 5 years and what did we get?? We got negative growth last quarter – that is what we got. Can you imagine what would have been the growth rate last quarter if both of those slush buckets were never applied?

They are messing with prices too. Gas goes down right before the election and then soars up right afterwards. Natural gas is ridiculously cheap. House building supplies are inflating at a 60 % a year rate – to support existing home prices. Meanwhile, in this no yield environment, gold has gone up nearly 17 percent on average a year every year for 12 years straight – and no one owns it or wants to own it. The media is always telling us that gold is about to collapse and to sell it now before it is too late. Communist China at least admits that it has a central planning committee!

Yes….they are certainly lowering us into the pot very smartly and slowly – but the result is that instead of a more violent 7 year downturn and then recovery, we are looking at (at least) a 15 year downturn. Austrian economics says that you cannot have a true recovery until austerity measures are implemented and the bankrupt entities are allowed to be liquidated, debt is worked off and wounded businesses are allowed to heal. However, since America’s political mantra is for no austerity, and we can only afford to take this stance because the US dollar is the world’s reserve currency - they will not cut spending until they have no choice. So, at least 2 more years of this limbo economic state is in front of us – followed by a worsening and accelerating collapse – then a slow climb out and/or World War.

Until then – an artificial stock market that only goes up is locked in place. In today’s market, the DOW always goes up. It would go up even if a nuclear device went off in downtown New York !!! Also, - Today’s markets features a gold market that is shorted by the big banks and hedge funds with complete impunity to rule of law in amounts that are multiples of the yearly supply of the precious metal - on a daily basis using “paper” gold products to keep precious metals down. In circus ring number three – a bond market that would be so massively eviscerated by even a modest increase in interest rates that it boggles the mind that anyone would stay invested in them at all – and ironically more money is in bonds than in any other asset!!! This is where the misinformation and media come in.

The result is a totally unhealthy, artificial, fragile and dysfunctional economic environment – that defies all logic. This is being sold to you as a normal and healthy market. As intelligent as most of us are, it is a shame that most of us are fooled. Where is our common sense? Even though the economic horse looks good from afar – when you get close you realize it is a hologram and that the actual horse is on its last leg and looks like death warmed over. That is the reality that we are currently dealing with – however the situation defies both intelligence and common sense because an all-powerful emotion called denial - which trumps both of these attributes with a capital “D”. Unfortunately, denial is one of the first stages of coming to grips with a situation – so we have a long, long way to go before this is over.