Thursday, November 19, 2009

Glen Beck Explains the Dollar Carry Trade and Impending Currency Crash - Yeah, Much to Our Shock he Actually Gets it Right

We never thought we would say this, but this is an ultra rare occasion when even Glen Beck is beginning to make sense. In the following videos he actually does an excellent job of explaining the impending dollar crisis and the world wide asset bubble that the Fed has now inflated. In true journalistic honesty we would like to point out that these videos were first posted by Karl Denninger in his blog The Market Ticker.
Video 1

Video 2

Video 3

And here are our musings on Glen Beck and some other points that he left out in these videos:
The Allure That is Glen Beck: We have often wondered, what exactly is the allure of people like Glen Beck and Sarah Palin, that seemingly rational people are drawn to them? Are people not turned off by the sheer hatred and hypocrisy these people propagate?
Perhaps the answer lies in the deft skill with which Glen Beck (and to some extent Palin), manages to cloak often vile and irrational thoughts under disarmingly rational ones (such as those in the videos above). When you say 6 sensible things and 4 outrageous lies, most people are gullible enough to give you the benefit of the doubt on the 4 lies you told, because they find it hard to discern truth from fiction.
So while Glen Beck manages to make perfect sense on the impending currency crisis and has Ron Paul on his show talking about End the Fed, he is completely illogical when it comes to inciting tea party folks (hatefully in our opinion) against Obama - calling him a racist, supporting the U.S. wars around the world, and inciting people against the public option on Healthcare.
The Path of Least Resistance: The American people have no stomach for frugality or lower standard of living. So while the right way to solve our massive government debt problem would be to reduce deficits by raising taxes, cutting benefits and social handouts and most importantly ending the endless and costly wars that we can no longer afford - none of these events will happen. Instead the Democrats faced with elections next year along with a complicit Bernanke will take the easy way out and degrade the dollar. This is the path of least resistance but highest risk, inviting trade wars, capital controls and eventually a global currency crisis. So the hypocrisy of Glen Beck is really exposed when he exhorts people to live a tough lifestyle in the second video and says he will do so he really ready to pay higher taxes on his $50 million pay check? Judging by his past rants - of course not. Talk is not necessarily followed by action.

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