Bernanke’s Terrible, Horrible, No Good, Very Bad Idea

Why won’t Ben Bernanke just go away?

Go get a remote shack in the woods… with fishing poles and a tall stack of old Playboy magazines to keep busy… and no phones or Internet connection.

For the sake of our sanity, we need him to lose contact with the outside world.

Because every time he comes up with a new crackpot idea, more economic “mathturbation,” he shares it… which eventually leads to implementation.

And his latest idea may be his most dangerous yet…

“Perpetual” Madness

This week, Bernanke flew to Japan to share his latest “wisdom” with Prime Minister Shinzo Abe.

You see, Abe’s in a serious bind. And Ben wants back in the game to “help” Japan after their two decades of economic struggle.

Japan has tried unlimited quantitative easing and even negative interest rates to boost consumption and defeat deflation. But none of it has worked.

So now Bernanke is trying to convince Abe to go Deer Hunter-style Russian roulette – put another bullet in, spin the chamber and pull the trigger on his latest scheme.

Bernanke wants Abe to issue something called “perpetual bonds” with no maturity that Japan’s central bank would then buy.

This would allow the Bank of Japan to finance government spending at zero cost… forever. And it creates money that will never be withdrawn from circulation.

Essentially, it’s giving the government a blank check to come up with whatever fiscal stimulus schemes it wants…in perpetuity.

Does that sound ridiculously irresponsible and dangerous? It is. But that’s how Time’s “Man of the Year” rolls.

And not surprisingly, Abe is open to the idea. God help us all.

What does it mean for you?

More and more monetary experiments rooted in literally “nothing”… more unsustainable debt… and longer and deeper boom/bust cycles than we’ve ever seen before.

And that leads me to today’s podcast…

A Conversation With Sunrise Capital Partners

Today, I speak with Jason Gerlach and Chris Stanton, the CEO and CIO of Sunrise Capital Partners.

Jason and Chris lead a highly successful systematic trend following firm with a track record going back decades.

And through their research they’ve become intimately familiar with the cause and effects of major market boom and bust cycles over the decades.

Most important, they’ve discovered the best very trading strategies to protect capital and profit in this strange “Frankenstein” world created by desperate central bankers.

And they share their wisdom with you today.

Here’s what you’ll learn in today’s podcast…

  • Why prices move further and faster today than ever before
  • Why you desperately need a portfolio insurance strategy before the next catastrophe hits
  • Why there is no better time in history to be a trend following trader
  • How hitting consistent singles and doubles in your portfolio can make you rich
  • And more!

Click here to listen to the podcast.

Please send me your comments to Let me know what you think of today’s podcast. And please, if you’re really angry with me, you are the ones I want to hear from most.


Michael Covel
for, The Daily Reckoning

The Daily Reckoning