This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Deutsche Bank Proclaims Currencies Are Worthless!: Opinion

VANCOUVER (Silver Gold Bull) -- Regular readers know that I have very little tolerance for bankers talking out of both sides of their mouths. So when I saw yet another piece of blatant banker double-talk from Deutsche Bank (DB), I wasn't about to let it pass without comment.

In "The Implication of Currency Dilution", I explained the dynamics of the concept of dilution.

When a bar waters down its booze, the value of the liquor declines. When a lemonade stand waters down its lemonade, the lemonade is worth less. When a company prints shares (i.e. "dilutes" its share structure), the value of the shares decreases. When we "dilute" our gold from more-pure 24 karat gold to less-pure 10 karat gold, the gold is worth less.

Indeed, in our entire realm of human commerce we are currently told that there is only one good that does not become worth less as it is diluted: the paper currencies of Western bankers. As a tautology of logic, the only good that does not automatically decline in value when it is diluted is a good that was already worthless before the dilution commenced.

Hence, when some talking head from Deutsche Bank muses that "QE3 might do more harm than good for gold," it directly and unambiguously implies the bankers' paper currencies are already worthless.

It's interesting to note the dramatically different tune these bankers are now singing from little more than three years ago.

When the bankers first proposed quantitative easing, it represented a form of monetary insanity never before attempted by our species in even its most extreme hours of financial desperation. Why had no other bankers ever before engaged in such appalling monetary recklessness?

For the answer to that, we need only remind ourselves of the primary reason the bankers gave us for the first batch of QE: They wanted to deliberately create inflation (i.e. destroy the value of our currencies) because they were "worried" we might have a mild deflation in our economies.

Why were these bankers universally terrified of even the mildest deflation taking hold in our economies? Because the $1.5 quadrillion or so in ultra-leveraged Ponzi schemes being operated by this banking cabal would implode completely in any extended episode of deflation.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,702.44 -177.92 -1.05%
S&P 500 1,943.71 -26.36 -1.34%
NASDAQ 4,391.0280 -71.8740 -1.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs