I am really surprised when people ask me ‘Are we in a bull run?’

Why ask – Of course we are in a bull run.

Collapse of a few economies in the world – in the middle east. The European crises – Portugal, Spain, Greece, UK…well not in that order, but you get the drift do you not? Then there is the rising price of crude….

However for the investor (disguised as a trader) every dip is a buying opportunity. Markets have not crashed. Why?

Well first it was Alan Greenspan who held the interest rates low. Really low. Then it is the turn of Helicopter Bernanke! He has his printing presses going, his QE, and his fantastic ability to convert a $ 3k oak tree to a chest of $ 3 million if not billion!

So Bernanke prints notes. India, China, Japan, South American countries – all are busy buying the dollar. Why do we have to buy? Simply because if we do not buy their bonds …well it is a long story is it not.

So let me guess what is happening. Ben is printing. To keep our currency from strengthening, we buy dollars, so we print rupees,…..and so on an so forth. Now all this cash sloshing around means all of us buy more stuff or keep it in banks – improving bank profitability :-).

How long will Ben print? Till Obama gets re-elected. Hmmm that is far away is it not?

One good thing however. When the Japanese crises and the Middle East crises happened, people did not go to the US as a ‘flight to safety’. Hmmm are people looking at other currencies? Should RBI be aware of what is happening.

You know my view on the regulators….correct?

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  1. “Helicopter Ben has his printing presses going and has fantastic ability to convert a $ 3k oak tree to a chest of $ 3 million” -LOL….ROFL….

  2. do you know he is called Helicopter ben because he said the way to bring a country out of a recession is to print notes go on a helicopter and throw the notes from tree tops…

  3. the helicopter remark was originally made by bernanke’s guru milton friedman. what was interesting to read was that the zimbabwean reserve bank governor Gono also said a couple of years back that bernanke and he were doing exactly the same thing.

    when money is debased like this,we are stealing from our children’s earnings,asset markets become volatile and only the insiders gain.did you guys read who the recepients of the bailout money were? the wives and widows of morgan stanley honchos and the libyan central bank!.no wonder the Fed was simply reluctant to share who got their largesse -the freedom of info act (RTI equivalent) was stalled by them for over 2 years.

  4. btw,the printing will not stop with obamaji.the whole fiat money ponzi scheme of paper currencies will crash like a pack of cards OR the economy will go thru a gut wrenching depression (which should actually be a good thing) if bernanke stops printing.marc faber noted recently why qe2 will lead to qe3,4 ..qe18 and so forth until the financial system collapses on its own.the fiat money paradigm is only 40 years old (since 1971- nixon gold chop) and is merely a blip in the timescale of currencies

  5. The helicopter will be grounded only when other central banks do not meddle with exchange rates. Or when people voluntarily discard paper currency and start barter system.

    Till that time metals, rice, pulses, oil, nuts, bolts and even toilette paper, but not over-priced electronic goods, are safe investments. We at lease can consume or use them unlike currency notes.

  6. Dr Mohammed Ali Khan

    Gold was the currency & money of humanity for thousands of years..

    These Fiat currencies are around only for the past few decades.. They are not based on anything…just on Government Fiat ( as if Government fiat has any value !!)
    They are an excellent instrument for the Governments to steal the capital of their populations without their notice. That is why the Socialists, Statists & Crony-capitalists ( like Warren Buffet )love fiat money and hate Gold.

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