“VOLATILITY
When the financial markets experience unusual palpitations then those closely involved often flee for safety and liquidity. With high frequency trading powered by computer algorithms the result is a gigantic electronic herd moving at the speed of light. The result is an explosion in the VIX or CBOE Market Volatility Index.

The higher the VIX the more difficult it is for the entrepreneur, the individual that creates real wealth by providing the goods and services the economy desires, because making mental calculations of value becomes more difficult and therefore decisions to allocate capital become based on more arbitrary premises. In this current economy, value and price are completely discrete.

The end result is that holders of capital, instead of taking risk and buying an ice cream machine or building a new factory, buy gold, silver and platinum while waiting for calmer days. When the devaluation of intrinsically worthless fiat currencies happens it will likely be extremely quick.”

http://www.runtogold.com/2010/05/fake-volume-and-increased-volatility/?awt_l=KaQ4B&awt_m=1evb2_7dwLfdxm

http://ampedstatus.com/high-frequency-terrorism-how-the-big-banks-and-federal-reserve-maintained-their-death-grip-over-the-united-states

Next: Overheating Asia realises that the consumers aren’t coming back in time to rescue them so the next crisis will be there – its moving east. And what will Asia do? Print money, quantative easing, monetise debt…

I must say this is really terrifying but really interesting at the same time

YIKES!

“Yesterday, Fed Chief Ben Bernanke announced that the Federal Reserve will print UNLIMITED numbers of U.S. dollars and then use them to buy bonds offered by failing European governments.”