[OTE56] On the Edge with Rick Ackerman

Stacy Summary: Max interviews Rick Ackerman about market making, high frequency trading, flash crashes, deflation and hyperinflation.

171 comments on “[OTE56] On the Edge with Rick Ackerman
  1. Carmen Azul says:

    Matt Simmons said the max pressure a Bow out preventer BOP can take is 15,000 psi
    I hope I got that right. I was just listening to him on Puplava’s interview of Saturday. He said that the psi could have been 40,000 and that is beyond our current technology. So digging these relief wells could be another more catastrophic move. I may have some of this wrong but I know his point was that our technology is not there yet so other companies were proceeding cautiously while BP went racing in without taking extra precautions.


    also in this interview he talks about http://www.oceanenergy.org/
    his project in Maine that is very exciting. We ned to clamp down on the ones who can’t be responsible like BP and get the next energy sources ready.

  2. Carmen Azul says:

    Bow = Blow

  3. MirrorMirror says:

    Mr Denninger and Gold or Why the Dollar-Deflationists Are Wrong


    Those who know Mr. Denninger know that he, well, for lack of a better word, hates Gold. It only goes to show the level of disinformation and ignorance prevalent in our society when even smart people like Karl fail to get it. From what I hear anybody even mentioning the word Gold runs the risk of being permanently banned from one of his “forums”. In a recent commentary entitled “Ten Things for 2010” he was at it again bashing Gold. Here is what he had to say:

  4. ronron says:

    denninger says folks real nice like though.

  5. Player 1 million says:

    Hugh hendry is not anti gold. That’s good enough for me.

  6. Gordo says:

    More Propaganda?

    “The commander of NATO and U.S. forces in Afghanistan said Sunday there is “clear evidence” that some Taliban fighters have trained in Iran”


  7. Player 1 million says:

    He knows his onions you should get him on he owned jeffery sachs on BBCs newsnight the other night ZH loved it.

  8. GGees says:

    Some great quotes from the main street press LOLOL

    # Larry Kudlow, CNBC host. “This correction will run its course until the middle of the year. Then things will pick up again, because not even Greenspan can stop the Internet economy.” (Feb’2000)
    # Mad Money’s Jim Cramer: “SUNW probably has the best near-term outlook of any company I know.” (Sept’2000)
    # Lehman’s Jeffrey Applegate. “The bulk of the correction is behind us, so now is the time to be offensive, not defensive.” (Dec’2000)
    # Alan Greenspan. “The 3- to 5-year earnings projections of more than a thousand analysts … have generally held firm. Such expectations, should they persist, bode well for continued capital deepening and sustained growth.” (Dec’2000)
    # Suze Orman. “The QQQ, they’re a buy. They may go down, but if you dollar-cost average, where you put money every single month into them … in the long run, it’s the way to play the Nasdaq.” (Jan’2001)
    # Maria Bartiromo. “The individual out there is actually not throwing money at things that they do not understand, and is actually using the news and using the information out there to make smart decisions.” (Mar’2001)
    # Goldman Sachs’ Abby Joseph Cohen. “The time to be nervous was a year ago. The S&P then was overvalued, it’s now undervalued.” (Apr’2001)
    # Lou Dobbs, CNN. “Let me make it very clear. I’m a bull, on the market, on the economy. And let me repeat, I am a bull.” (Aug’2001)
    # Larry Kudlow. “The shock therapy of a decisive war will elevate the stock market by a couple thousand points,” with Dow 35,000 by 2010. (June’2002)

  9. Gordo says:

    Karl may not be the smartest guy but he is a lot smarter than the Geckko

  10. ronron says:

    oh and by the way. why the fuck would you refine past 90 coin grade?

  11. Mother Earth says:

    Denninger is not that bright imho..

  12. Mother Earth says:

    Ever noticed Denninger is a bully? And Max, Peter Schiff, Marc Faber and Mish and a couple of others aren’t? Cramer is a bully. Fucks of a thether..

  13. Palantíri says:

    re: Gordo link

    Isn’t it odd that the media almost always separates US and NATO as if US wasn’t a member of the organization! You almost never hear NATO coming out and talking about issues but you do hear several member states acting as if they themselves are the spokes-nation for NATO, especially US is very good at talking on behalf of NATO. Though rarely I get the notion that all member nations have discussed the issues in advance and together agreed that one nation should promote they’re idea. Who’s using who?

    And nobody seem to notice that Taliban is the replacement for Al-Qaeda in the media… “We’ve always been at war with East-Asia!”

  14. turbulence says:

    Max and Stacy please listen the great interview, from Eirc King with Felix Zulauf.

    Zulauf is a member of Barrons Rountable for more then 20 years!

    Maybe an guest for one of your shows?!

  15. GGees says:

    NATO has outlived its usefulness, its now being used to prop up an ageing and degenerate US empire

  16. Dan says:

    I invest in gold have done way before even an incline of interest in the media about it, but people have a simplistic view of money, they do not know what wealth is or the source of all value and so gold bugs are as stupid as the fiat money advocates, I tell you gold will not have any long term role as money in the future because it has nothing to do with true wealth.

    This is really the crux of the problem the world is confused, it doesnt know what wealth is, it actually thinks wealth is a pound coin a dollar or a piece of gold… please dont tell me your reasoning for why gold is valuable I am fully aware of arguments against fiat and for gold.

    So what is the source of all wealth? well its you, its peoples energy and thats it there is no other source, if you cannot exchange your gold or your fiat for peoples energy in whatever form that may take, goods produced by it, services provided through it, invention and creativity, art and so on then your fiat and your gold is worthless.

    A promise to pay is actually the highest form of money because it ties in directly to that energy, that person has promised to exchange their energy for these credits and therefore as long as that promise holds that paper money is far from worthless.

    The future monetary system is also a promise yet it will not be a debt, the current promise based money is utterly corrupt and serves only to take the energy of humanity and dispose it into a blackhole.

    I invest in Gold only until this is recognised, thats when I sell, gold will have a part for a short while after the collapse and then it will quickly be discarded, it will obviously maintain certain value but it will not be a money.

  17. Gekko is just another manic zealot from the Gold-Bug Cult of Zero-Hedge…

    The problem as I see it, is in the lack of a transition plan…
    If the Fiat-Credit system collapses, in true Armageddon style, then Gold-hoarders will be left to BARTER…
    You want a loaf of bread?
    1 Oz of Gold, please…

    The Bugs all presume that there will be this seamless move into riches,
    not factoring in the possibility of GREAT changes in the financial environment that could levy exorbitant penalties upon them in the event they try to change their shiny-rocks into whatever FIAT replacement awaits…

    It is all passive speculation…
    At some point, one has to sell…

    So let’s assume you have stocks, instead…
    If Gold’s nominal value is augmented in a hyper-inflationary environment, what sort of growth should one expect in stocks?
    Do you think it will be comparable?
    Or will it be greater?

    RECENT history of hyper-inflationary scenarios dictates that the NOMINAL value of stocks will trump whatever gains are to be found in Gold…
    Gold can go to $10000 (~9-10 Bagger) but under the same conditions, stocks will potentially reach 20x+ their nominal value…
    And then, converting those stocks into FIAT will be far simpler…

    So, if anything, Gold’s practical value is in being a hedge against DEFLATION relative to stocks…
    You stand to lose LESS in Gold than stocks in that environment…
    That is it…
    You still need to convert it to use it with any benefit…
    And once again, no one can predict what sort of Fiscal Policy will be in play at that juncture…

    All in all… one’s practical ability to transmute ENERGY into useful LABOUR is the only true wealth in this world…

    Buona Fortuna

  18. Wow… Dan and I have the same conclusions…

    Synchronicity, or what?

  19. FiatMentalist says:

    Can somone explain to me, like im 3 years old, how individuals owning Gold will allow democratic sovereign nations to reclaim the ownership of currency and credit from the banks? Someone pretty please map that one out for me.

  20. ronron says:

    the chinese are goimg back on the silver standard. get used to it. 😉

  21. ronron says:


  22. Mike/Liverpool says:

    How do you know this Ron?

  23. ronron says:

    @Fiat and mike. real history. http://www.youtube.com/watch?v=NwNuQulK6N0

  24. Mike/Liverpool says:

    Yes Ron, not quite the “Proof” i was looking for

  25. ronron says:

    look mike history tells the story. the first legitimate government wins. he who holds the metal. wake up.

  26. ronron says:

    @Mike. the chinese have millions of old canadain and us silver small pre 66 silver coins. they use them daily.

  27. ronron says:

    oh and @Mike. all the vintage guitars are in japan. stupid fuckers.

  28. Player 1 million says:

    Stacy max you should get hugh hendry on he says banks should be made to stop paying divs till solvent people should pay more attention to him I think he’s an upcoming star nice to have a radical from Britain he’s pretty pro gold from what I can gather get him on.

  29. TJ says:

    Good points on NATO and USA relationship in the PR stakes. For those of you who’ve never flown in a fighter squadron, I can confirm that in the good old days we NEVER would have targeted women, children or any target outside the field of operations. Fuck the orders

    The world is upside down, don’t believe any of this bullshit!!!!

    scuze my language, we were once an honorable nation

  30. Marc Authier says:

    BP British Puss
    BP British Puke
    BP British Prostitutes
    BP British Prick

  31. ronron says:

    @Marc. hello my friend. the fires still raging there. fucking hot the last week.

  32. Marc Authier says:

    BP and American Assholes. USA as a Britishititter colony, Eat oil and catch cancer dear loving britishitters Yankees. It’s a genocide. Not just the ducks and nature that is dying. Look how people are getting sick. Stupid American fucks. You love your britishitters mother fuckers. Enjoy the cancers that will follow very soon. Very soon. Oil spills create cancer explosions. USA is a lot like USSR. A toxic waste dump.

  33. Gordo says:

    We Know Obama Uses Coward Drones to Inspire Hatred, Attacks Against Americans/We Don’t Know Why


  34. Player 1 million says:

    Unfortunatly Britain gets it’s corrupt fuedel system from Normandy which is in France about 80% of our landed monied gentry can trace roots back to 1066 which is when William the conqerer(French) invaded and completly took over the entire country placeing his courtiers in all counties as lords where 80% of thier decendents remain to this day Britain has never had a proper revolution to shake of the rule of the French ruling elite and thier corrupt aristacratic fuedel system

  35. Ahoy Ronron,

    Have you seen Marc Faber’s recent presentation to the Mises gang yet?

  36. Gordo says:

    @ Giuseppe Bagodonutti

    Now you’ve gone and done it, been listening to the Police for the the last hour now.

  37. @Gordo…

    Sorry about that… but a little Police one in a while isn’t so bad, now is it?

    @anyone watching the Faber/Mises presentation

    I found the charts that he used for the presentation that actually date back from September 2009… this package has some info he didn’t cover for the Mises gang…

  38. Ah hell

    Mises.org has the PPT presentation of Faber’s charts anyway…

  39. Mike/Liverpool says:

    Where is my £ collaspe Keiser?

    You & little Jimmy!

  40. FranSix says:

    @implied interest rates

    I had to listen to the programme twice over to get it all, because of Max. LURV, I mean, LURV the discussion on trading. But just the same, thank-you for clarifying so much, I just want to point out something.

    In the real estate market, if your principal remains the same, but the equity of the home declines and your interest rate is fixed, that implies negative interest rates. But the demand for homes will also plummet, as speculative money dries up. Thank you Rick for point that out.

    Well, something similar applies to the bond markets where aggregate demand is shifted out of long term markets into the short term treasuries, (this is very clearly the case) implying negative or declining interest rates since yr. 2000, a legacy of of short term rates being higher than long term rates for a substantial period prior to the onset of financial distress.

    Added to the complication is the decline of the currency. While some had increased actually and experienced the same implied negative interest rates and a flattened yield curve, the $U.S. dollar has now declined for many years since 2000. There was a brief rise in dollar value recently, but should interest rates on short term yields decrease again, this would imply another decline in the currency as well.

    Aggregate demand is not something you create out of nothing. It is a real, substantial flow of capital on which the entire financial world hinges. But, it must be applied, not some abstraction.

    So the better term to be used is liquidity trap, where no amount of money printing results in any growth. This is basically where we’re at right now. How long that can continue is a matter of debate, but in the meantime, we will still have negative implied interest rates, perhaps in REAL TIME.

    This one bears watching IN DETAIL:


    Note the TRIX about to roll over. Small technical point.

    What this says it means that growth in the bond markets can continue, but without any real growth in the economy. Because this is all tied to derivatives, that may mean that clearing all the debt may take as long as the derivatives contracts are written for, sometimes 20 years. But you know, derivatives contracts are sometimes written for 50 years or 90 years.

    Not a pretty picture.

    But the chief benefactor of the shift of aggregate demand from long term to short term is gold. Yup. You heard me. Makes all kinda sense now, don’t it?



  41. jon says:

    I find it interesting that everyone is entrenched into the watching and investing in making money off the markets now.

    Folks. If you haven’t heard. The elites are gonna crash the whole thing very soon. All the rules and regulations and laws you have been playing with in the markets for the last 60 years will be null and void.

    If you haven’t heard. The elites are gonna crash adn destroy the old financial system and set up a new one. If anything try and be prepared for that. I’ve got a feeling its not gonna be anything like the market and financial systems we have now. So I guess hard assets and gold and silver might help. Good luck.

  42. FranSix says:

    @Military Keynesianism

    Time to edumacated ’bout Military Keynesianism:


  43. FranSix says:

    @Aggregate Demand

    Just thoughmt I would add that SDR’s represent a multi-decade futures contract in derivatives against – SOMETHING.

    @Weather Futures

    Totally manipulated. Causes hurricanes.


    Look, we’ll only be able to tell if it’ll be a sunny day without too much odour once we reach the 1.618 retracement. Just call us in Edmonton.

  44. Youri Carma says:


    It’s a good story but there somting more to it. The Money that the Banks get doesn’t go into the real economy, that’s correct but the banks recycle their money into Treasury Bonds. But most importantly they use the money to “gamble” safe whit insider trading and market manipulation on the derivatives market.

  45. alan says:

    @Jon, I think you are on the right track. Rules are for bunny’s: they will change or become redundantat at the whim of the powerful.
    People actually did not relise the power of community, and had it stolen from them with all sorts of tricks but mainly propaganda.
    When people unite and take to the streets the law means nothing. Thus the effort to break down effective community action over the last twenty years, culminating in terrorist legislation that effectivly bans any dissent.
    Jethro Tull was promoting “Heavy Horses” years ago. Invest in heavy horses.

  46. alan says:

    Heavy horses Tull
    3:00 mentions oil barrons


  47. Pez says:

    My suspicion is we’ve got ’til 12/21/12 to play until “the end of the world as we know it”. Freak’in Mayans got it right (R.E.M. got it wrong). ..take that info and live it up, I am! Gold, SDRs,who cares ya cant take it with ya. Make a big withdrawal and do the 1000 things you do..before ye be dead maties!

  48. Van B. says:

    FYI Corbettreport.com
    “The Agenda 2010” (from the powers that be…)http://www.youtube.com/user/corbettreport#p/u/4/vAax_M6A6Zo

  49. zaphodity says:

    Few articles here that took my fancy, not really economic but interesting anyway:

    Beijing Suspects False Flag Attack on South Korean Corvette

    TONY “BIG OIL” BLAIR Update:

  50. zaphodity says:

    @Giuseppe Bagodonutti

    In todays current economic climate/wars/death/money I thought this song appropriate

    The Police – Murder by Numbers

  51. Mother Earth says:

    Well, Israel managed to kill 15 people that where part of an aid convoy for Gaza (dutch news). But they know even cars are smuggled underground from Egypt, so who are they kidding? They should all emigrate to the US, plenty of room in Nevada..

  52. GGees says:

    Israel = WW111

  53. Marc Authier says:

    BP From to worse. Will be real great for tourism and real estate value !
    “Come and see our cancerous goo ! Goo galore !” Makes me think a lot to Nigeria. Louisiana should be a rich state. Like Nigeria.


  54. alan says:

    I’m just a working class wally. I don’t understand why a good idea would need a F****** pr%% like Blair to sell it. The money to pay Blair is skimmed or stolen from the creative blokes with the ideas. Surly this goes against the capitalist ideas of efficiency and incentive.

  55. Mother Earth says:


    There is a name for ideas being owned and managed, its politics.

    Sadly people think it is possible to own ideas and initiatives, to steal ideas and initiatives, because they are prone to block ideas and intiatives that may cause them to be in conflict with certain individuals that seem able to punish. It’s the dynamic that creates ‘leaders’, at the base of it lies simple intimidation..

    If people where braver we would not be in this mess..

  56. alan says:

    @ ME I suspected that may have been the case

  57. Bonn says:

    @ Max K
    Just saw the Show was playin Poker Last night
    See I told ya if yer Gold goes to 10,000 $ an ounce who ya gonna sell it to ??? If ya came an asked me “Sell me yer 100,000 $ werth Steel or real Estate heres 10 ounces ” I tell ya ta keep yer Gold
    I know we Keep having debates
    Cause I do agree with y’all to a certain extent
    But its a Catch 22 situtation
    But if we see hyperinflation I guess Barter system would come in faster than ya can spell it Cause its Even older than yer Gold System of tradin.
    FACT IS “There is’nt Enough GOLD in the world for 6.7 billion Peeps to use & engage in trade /commerce”
    A more Likely out come would be this 600 trill is written off as R&D expences (Research & developement or what we all have been callin Lunacy) lolololololollol ROFL
    And Hopefully country’s have tear PRIDE & show a middle finger to tis NWO crap , which I feel is tee most likely outcome

    A universal Technology is used to approximate a country Natural Resources along wit Human capital & Knowledege capital ;->the Currency is based on that Errr Emmmm Even I am gettin confused now cause tis method will surely lead to all out Wars ERRRrr Emmmm AHA I got it 💡
    Guess We need to round up NWO Lunatics and dismantle UN IMF etc etc
    Cause we do have the resources to feed everyone on tis planet
    Smoke commin outta me Years nows
    Hic 😉

  58. gaspode says:

    News from Iceland.

    A real joker :

    Jokes Party won the local elections in Reykjavik
    The party The best party, with comedian Jon Gnarr as party leader, has won municipal elections in Iceland’s capital Reykjavik.

    The party has been strongly against politicians and bankers and believe they have destroyed Islands economics. Among the party’s main issues of a powerful clean-up policy on the saga island and stronger commitment to the environment.

    Jon Gnarr, which is one of Iceland’s most famous comedians, said his party will take politics seriously, and defend strongly their candidates, among them a former lead singer of pop band Sugarcubes, a homemaker and an architect, all without any political experience.

    Transgoogelated from ABC Nyheter – http://www.abcnyheter.no/node/110408

    The name of the party “Besti flokkurin” (The best gang) became “best flock urine” so handle with care.

    Still – the people of Iceland are really pissed, and they piss on “the elite”.

  59. Mother Earth says:


    If I encounter people that doubt the use of gold my answer is always: “You keep the Dollar/Euro/Whatever then I keep gold, we’ll see who is smiling in a few years time.”

    I have a bartering engine ready to go, but no money to spend time on it..

  60. Marc Authier says:

    Energy sector is a STEAL ! Don’t forget. IRAN. People selling their energy assets are imbeciles. Depletion rates of companies like BP and ALL majors, are in the range of 6% per year. Simmons says it could be even 9% per year. Put another way the big producers will be liquidated in about 10 to 20 years. In the case of the jerks at BP, it will be much quicker. Buying intermediate producers is a good strategy. Energy = Economic growth. No energy no economy. The scandal is that the energy sector is runned by pirates, not by people preoccupied by the 250 millions year replacment cycle. BP stands for Barbarous Pricks.

  61. Bonn says:

    Youuuuuuuuuu Whoooooooooooooooooo
    @ Maxy Boy & Stacy
    Guess what I got sometin All fer yas
    Hic 😉
    Ps;- Notice tey got a Caucasian cartoon a brown skinned an afrikan , a Japanise and a freakin Polar Bear
    PSs ya musta seen tis but
    Climate Cops Brainwash Super Bowl Audience With Audi Advert
    2010 Super Bowl TV Ads: Audi Green Police Spots
    I am never buying an Audi
    Hic 😉

  62. Mother Earth says:

    @Marc Authier

    Do you trust the banks you depend on to trade in anyting?

  63. Bonn says:

    2010 Super Bowl TV Ads: Audi Green Police Spot #5
    2010 Super Bowl TV Ads: Audi Green Police Spot #4
    Hic 😉

  64. frances snoot says:

    “Carol Browner, President Barack Obama’s top adviser on energy and climate change, said on Sunday.”

    Mish is relying on one of Obama’s aides, and not even a “Czar” for his information?

    Is there ANY source for information concerning the oil spill that is not an arm of the G20?

  65. frances snoot says:

    Still – the people of Iceland are really pissed, and they piss on “the elite”.

    The people of Iceland are living in a neutered territory of the IMF.

  66. frances snoot says:

    Is there ANY source for information concerning the oil spill that is not an arm of the G20?


  67. Pez says:

    In USA climate controls you!

  68. Pez says:

    BP’s new game plan. Send Food Network chefs in mini subs to bottom of deep horizon well to dump tons of bayou seasonings. Detonate nook-you-lur bombs to set the gulf a blaze. This will “steam-fry-microwave” (new invention from wrongco) shrimp and oysters (other fish). Send this seafood in “takeout” barges to Haiti, where Slick Willie doles out to hungry earthquake victims.

    If you wish to make this dish at home: serves generations for decades (but spoils quickly without refridgeration!)

    BP jambalya/gumbo.

    10 to the 27th Gallons of sea brine (or any gulf H2O will do)
    4 trillion pounds of Biological Mass (hopefully aquatic)
    400 Million Barrels of sweet crude (I prefer corn oil)
    250 Million pounds Maryland Crab cake seasoning
    dash of pepper.

    Now combine ingredients:

    Take 20 Kiloton Nuclear Device and set to annihilate.


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