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3 Days Into The Month = $169 Billion Of Debt Redeemed
Three days into the month, and the Treasury has already redeemed $169 billion in debt, of which $137 billion in Bills. Run-rated (for Bills alone) this is about $5.5 trillion annually, or basically 63% of all marketable US debt. And somehow the Treasury is lowering the amount of new bond issuance beginning next week. We wonder just where Tim Geithner will get the much needed cash to plug not only the increasing daily deficit spending (today alone the US burned $21 billion net of debt transfers, gross the number was even worse), as well as to fund daily rolls once rates start eventually increasing. This is financial suicide, although the Treasury knows that all too well. It is now stuck in a corner and has no way out than to hope for the best.
Total US debt today was $13.06 trillion. Total debt on March 6, 2009 was $10.95 trillion. The government has spent $2.1 trillion dollars to create a bear market rally which has now fizzled, and to fund a fiscal stimulus that is now dancing its death rattle. GDP will now gradually roll over, the unemployment rate will once again start increasing, diffusion indices, manufacturing and all other economic output will begin declining, but not before the bill is in. It cost Americans $2.1 trillion in debt to generate a 14 months sugar high (for which all will promptly receive a much higher tax bill). Luckily, we will never pay this debt off, so perhaps "the joke is on them" after all.
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No, those sorry bastards are all doom-and-gloomy.
This is the American Idol forum, isn't it? Hey why is it all black and white here...
Oh read!!! I just look at the pictures.
Holy sh*t, I missed that article first time around.
There have been a lot of cynic suggestions in this direction, but given this, I don't understand why ANYONE would trust their money in the hands of GS.
Now that's funny.
Why did I have the suspicion it had been noted here already.
As you point out, this cat Peter Sutherland, has quite the resume'. As one great historical figure prefered to use the term, "those people", I will leave it at that ;-)
Missed it Tyler, thanks. Some of us do sleep for at least three-four hours...LOL.
Who He?
(well of COURSE we do!!)
Say what you will ... they are just bankers “doing God’s work”
Thanks Tyler,
I did miss the article............sorry SOB's.
And we WONDER why the GATA folks have been on a crusade for yrs?.
It's PANDEMIC!..............
Reminds me of Sodom Gomorrah, Lord, will you spare the city, if I can find JUST one righteous person?.
NOPE.
Tyler, your tireless exposure of Goldman's skulduggery convinced me you are a consummate anti-termite.
Thanks, Tyler, for helping identify just who our rulers really are. First, they are extremely bright (wearing a dozen hats at once, patting every back, handling the connections with ease and looking good), and, second, crooked as the day is long. (I was on assignment and missed the article but was told about it by a colleague.)
When a country loses the foundations of a government, it sinks to where the French monarchy had before the revolution. It reaches the point where it’s almost impossible to govern; disintegration approaches. The responsibility for this tragedy lies in a U.S. Congress now out of touch with the people. The solution: a major course correction now that the sludge is up to our proverbial necks.
The U.S. Congress has the ultimate constitutional power, but it seeded a climate for crooks taking advantage of what imperfections did exist in the Founders’ plan for our system. If Jefferson were here he would point out again that ours is a system of government that requires continued vigilance against the abuses. If this vigilance is lax, then eventually there has to be major course corrections. It’s time to restructure back to a Constitutional Republic where the nation operates on the basis of a written constitution. And the unfortunate will just have to sink or swim.
No system is perfect: the American system started with some flaws and it was not the people’s fault that these flaws enabled ambitious men to use the system for their own aggrandizement. They made changes in the laws for their own benefit.
Government run by people the likes of Sutherland, Obama, and Bush is headed for a brick wall. These guys are just front men for the cartels and takers. Obama came in with a few radical socialist ideas he liked, but he’s unable to do any of those things until he has accomplished the duties for the people who put him in the oval office.
The people of America are responsive to cleaning this out—a la the new governor of New Jersey (one of the most crooked states in the union). If Obama had been what he said he was and had gone in and started cleaning out the crooks and exposing the Wall Street criminality for what it was, Americans would have supported him. He didn’t and can there be any doubt that this Congress and its legion of crooked mobsters is the worst we've ever seen?
Now, it’s up to you, Tyler. And I can think of no better man for the job.
I was on assignment,
bond, james bond.
aye mate.
He will start selling the gold plated tungsten bars in Ft Knox?
Rumor has t they were already shipped by JFK to GB to fend off a prior run on Sterling, slipped into the LMBA vaults for fractional re-distribution by the Demented Gnomes of Zurich, temporarily on vacation in Spain at the Bilderberg BedBug conference.
No mas. Nada, zilch, zero, zip, squalooch, negatory, none, gone, MIA, lost, disappeared, flown the coop, already spoken for, not in stock, out of stock, can't find it, I already looked, spoken for, reserved, wasn't my job to watch it today, can't find it and don't give a rats ass, anyhow.
Ya' know. These folks couldn't be doing a better job of Fucking this whole thing up if they were intentionally trying just as hard as they possibly could. Impossible. Must be the coming of the Anti-Christ or some such wank.
the tungsten fakes, were made, long after jfk
Yeah. It's rumored to have been a Clinton-Rubin dealy... you know, the dynamic duo of the Glass-Steagall repeal
http://www.marketoracle.co.uk/Article14996.html
Kali, dude, for real....Ft Knox is empty as Hell.
What, if any was moved to NYC years ago, to a bank, where nations used to leave theirs, for saftey.
Only ONE POTUS,( do not remember who, may have been Nxon) and it was so long ago, that I can remotely remember has even been in Ft Knox.
Wtf are these guys doing ? Are we missing something ? Suicide is right ,but for what reason?
Yes, the reasons one can imagine scare the poop outta me.
Repeat after me..."We will not monetize the debt"
um..ok
Can someone please pass that big ol hopium bong this way? Thanks
they'll just monetize the hotel and construction debt held by Fannie and Freddie.... carry on, nothing to see here.
oh, I forgot about the best buy receivables that were on Bear Stearns balance sheet! we'll just turn that into money too. we wouldn't want anyone in the Hamptons to pay with cash.
And it is not only the US government offering new securities to redeem the "old" ones (4 weeks or 3 months old).
Lots of other governments are offering securities every day. 100 billions today, 200 billions tomorrow... Who a hell is buying it?
I know, the "household sector"... But won't the "household sector" (the FED) run out of paint for its print presses some day?
Total US debt today was $13.06 billion. Total debt on March 6, 2009 was $10.95 billion.
I think he meant trillion there.
currency revaluation 1000:1
We adopted currency revaluations of 1000:1 many times here in Brasil, in the age of hyperinflation.
1000 cruzados become 1 cruzado novo...
You will soon know how it is...
How do you manage not to be paranoid about inflation now?
For me a look at formerly gold-backed Reichsmark from my great-granddad (Banknotes, unfortunately no coins) and then inflation money from 1923 with face value of 500 billion Mark makes me value paper money fairly low, especially with the central bank's printing press running full tilt.
500 billion Mark? Wow!!
Here in Brazil the best we could do was the 500,000 cruzeiros bill:
http://www.quiteglobal.com/moedas/cedula_500000_Cruzeiro_Mario_de_Andrad...
With half a million cruzeiros one could buy a pair of shoes...
Hyperinflation here was bad, but no so bad as in Weymar republik Germany.
I believe Hungary won the all-time hyperinflation prize, beating Weimar and Zimbabwe... they didn't revalue in one instance until the paper bills were printed for One Sextillion Pengo... that's a lot of zeroes.
http://www.tomchao.com/hb14.html
Yes,
It's a weekend, so BEND OVER.
I see them seizing 401k's/IRA's first....there's ALMOST enough in them to pay off the entire 14T.
Issue you NOTES.
Obladah, Obladee, better be very careful what the next moves are.
33 milllion /18% of americans Unemployed, any stupid moves could cause consequesnces only imagined in a Novel.
A BAD novel.
If "they" want a shooting war with a bunch of seriously bent out of shape nutters, owners of scoped high powered rifles with a wide variety of other skills, sure, "they" will seize our private savings. They throw out the Constitution, what's left is the Declaration of Independence. It is pretty declarative.
Yes.
They'll crush you.
Dunno if you've seen the weaponry the US military has, but it's pretty impressive. And they have few qualms about lighting up a crowd of people with 20mm cannon from 2km away.
Yeah.
I'd just wait until the veterans come back home and find out that their welfare checks are worthless, their wives are sleeping with the local dogcatcher (who gets paid $250,000 per year with overtime), and that no one appreciates them for their extended frag-fest in the Middle East.
Then it's "stay out of the way" time.
Well I don't really subscribe to it too much but there's a novelty theory that says everything compresses along circles occording to fib ratio's. If that's true then you can pretty much turn the entire spitting on soldiers attempt to control the war machine action of the 60's into a really bad really violent really hurtful attempt to tear down the militarys "honorable" illusion and stop the military machine into about a 15 month super vietnam protest probably around 2015 or so.
Who can say but one thing is certain. Trying to characterize the military as something other than a bunch of hero's defending this and defending that will get you a whole boat load of "attitude correcting".
http://www.seditionproject.net/
- good link H.
Who do you see your average soldier siding with?
A hard working, gun-toting, anti-authoritarian citizen?
Or control-freak politicians from Chicago, DC, etc?
The 1A / 2A / 10A types started those "Oath Keepers" pledges a year or so ago, vowing to uphold Constitutional rights, refuse orders to confiscate supplies, apply martial law, blockade towns, fire on citizens, etc. I don't see any kind of military "crushing" occurring, because the majority of the guys at the action level are working-class, DIY, independent types--you really expect them to side with the central planners and political thugs?
If experience is something, I will tell you that hyperinflation doesn't need necessarily lead to a civil war.
Here in Brazil, we had a very civilized way to survive hyperinflation. It was called "Caderneta de Popupança", that means something near "Savings Account" or "Interest-bearing account".
The government created "Caderneta de Popupança", and all banks were obligated to offer "Caderneta de Popupança" as a financial product.
"Caderneta de Popupança" pays monthly "monetary correction". Monetary correction means that your account balance (of the "Caderneta de Popupança" account ) is magically increased every month acording to last month CPI (Consumer Price Index). If CPI was 45% last month, your account balance is increased 45%.
With "Caderneta de Popupança, our savings weren't wiped out completely, so there was no need to civil war.
That doesn't even sound feasible. How would such a scheme work? It couldn't without printing even more money (increasing your account balance the 45% is "printing money"), which would cause yet more inflation.
?
I am Chumbawamba.
It worked here, during more than one decade of hyperinflation.
I'm sure plenty of nazi soldiers told themselves the same thing, but they ended up capturing and killing (far too simple and kind of word) all the jews they could find. The system becomes vastly stronger than the individual... eventually the most upstanding citizen succumbs to the constant bombardment. Group think, peer pressure, and outright orders to do X or face death, tend to have a swaying effect on the brain.
However, I really do not think we'll have to worry about this. The government is running out of time to implement the military solution. And the countdown is accelerating. Once credit implodes (further) and we're on the back side of the financial event, I do not believe the government will be around in any shape reasonably necessary to keep any semblance of our current military around, fed, clothed, etc. The fall will be too quick for us to adapt to in any meaningful way or otherwise mitigate the damage.
All of the promise keepers will have a completely different mission... and that will be individually to protect the populace from the robber barons that fill the power vacuum. That is a mission they may actually have a chance of completing. But they'll be fighting the oath keepers that work for the robber barons in the process...
I see them siding with the government and following orders.
Look, man, we've seen this preview already when we see all the ex-mil pigs out there in riot gear beating the shit out of people and putting down demonstrations.
The military is full of people who do what they are TOLD to do.
Some guy just said he had a RIFLE with a fking SCOPE...omg, the military is quaking. If you shoot at them they will put you DOWN without hesitation.
JFC, did you people not see the Apache turret video right here on ZH? They shot up a van with CHILDREN in it...what did they say? Was there any HINT of remorse? Were they not salivating for the chance to fire ANOTHER shot?
Did they not light up a building with multiple Hellfires because they saw ONE guy walking in with carrying something that from 2km away looked enough like a rifle to justifiably ask for weapons free? Not that they actually believed it to be one but it was close enough that they could SAY that they thought it was.
You're putting faith in this type of person to safeguard your rights? The military are killers, ok? That is what they do and that is their function. They are not philosophers, not trained to question orders, they are trained specifically to FOLLOW them *without* question.
Their officer corps will tell them "the enemy is over there," and they will do what they are trained to do.
sad but true.
If Americans will so gleefully kills Americans as they did the much demonized Iraqis (mix in a lot of racism as well) then we are truly fucked as a society.
I don't think we're that fargone. Sure, there will always be the automatons that will follow orders. And you'll certainly have white soldiers who will have no qualms taking out black or brown citizens. But you bet your ass they'll waver when the guys on the other side look just like them. Sure, if they're being shot at they'll return fire, but I am not willing to believe just yet that white Americans will instinctively kill their own without some heavy remorse.
At least I certainly hope not. And I hope all Americans regardless of race or color will be respected by the military once it turns its sights inwards, but we all know how these things turn out.
I am Chumbawamba.
They will demonize anyone who stands in their way as an Enemy of the State.
well outta all these posts, i'm kinda on your side...........the drones are coming home eventually
We outnumber the military a thousand to one. There is a firearm for every man, woman, and child in this country, many of which are capable of penetrating body armor, some of which are capable of penetrating heavy armor. The military can not survive without food. We supply their food (not to mention ALL of their other supplies). If the US military turned on the US populace, there might be a quick shock and awe campaign, but in order to get out all the rebels, they would have to destroy their own infrastructure. If they fail to do so, but take a more measured approach, then we will destroy THEIR infrastructure. We will destroy their munitions factories. We'll cut their power lines. We'll poison their fuel to destroy their engines of war (surprisingly easy, a little water and bacterial contamination will shut down a whole airport for months--this can be delivered via a single fuel truck without the drivers even knowing). Hell, we'll put LSD into their water and make them go nuts, or kill them all with sodium cyanide, which is commonly available. We'll restrict or poison their food supply. There will be little or nothing they can do against a smart but non-regimented resistance.
War is hell, but a non-region based civil war against an armed, highly educated populace is 1000x worse.
No, they will lock enough of "we" up and make examples out of you that nobody will dare question them.
Only another military or civil war will topple a government like this. If they have the ABILITY to fight, they will fight.
And there are 33% of the public out there who would CHEER while they shot you if you questioned the mission against those terrists. In fact you're on the side of the terrists probably. At least that's what they heard. Or you used the N word once or don't like jooz.
They will embed "journalists" and televise it all to great ratings and sell advertisements so it will be self-funding...
How many ex military guys are joining up to the police force and when you get pulled over, road blocked, or now flagged over as they hide behind trees to see if you are wearing seatbelts, they feel bad about being a nanny but say it is just there job. To many of them just following orders, the officer told me he was being paid over time by the broke state ( IL ) to make sure we were safe.
I have 10 to 20 lose friends that are cops and I am very carefull what I say to them, but to many it seems to me would go along with whatever law was written and bury their consinious.
Who is going to fire/operate all of that impressive hi-tech weaponry?
If you think police/nat. guard/military are going to open fire on family/neighbors/fellow citizens, you are kidding yourself.
I have absolutely zero fear/apprehension about martial law or police/military when TSHTF... the police/military will come down on the side of family/neighbors, not the gov't. Anybody who has ever served in the military or police knows this is true.
the national guard was most compassionate at kent state.
They weren't being asked to put down a nation-wide rebellion. Against those kinds of odds, I would estimate more than half of the military would desert or go over to the other side.
You're foolish if you believe in this spontaneous revolt.
Even the Colonies were at least 1/3 Tory.
People are afraid to stand up for anything and the State Intelligence Apparatus is very good at disappearing people and interdicting.
JFC, you think people LIKE these brutal dictators in Central America all these years? Or Kim Jong? Or anywhere in Africa? Christ, there's video out there of what happens to people "revolting" in Africa. They get their hands bound, lined up and shot.
I think your problem is that you are putting yourself in their shoes. You can't do that. They don't think the way that you do. Their morality has an 'off switch' and once flipped, they do what they're told. You can ask Rachel Corrie and that guy in Tiananmen Square how well this will work out for you.
No. I am not putting myself in their shoes... I am already in their shoes. You are correct about the morality switch, but only up to a point. When it's Hadji or Charlie down range... no problem... shoot 'em like a video game.
When it's Johnny Appleseed and Uncle Dave down range - waving pitchforks and wearing Metallica t-shirts - the morality switch will not stay off. This is especially true of Iraq vets... they are very tired of targeting innocents based on unaccountable 'intel'. Iraq vets are the most cynical, discouraged generation yet (not their fault, btw). No way they will line up against their own when most of them will not line up against Hadji anymore.
Folks here that fear the black helicopters and special forces abductions are wildly over-estimating the ability of US authorities. Even a small, regional insurrection here could not be quelled or managed... no way. Look at the Katrina fiasco. Military-enforced martial law not only failed, it made things worse. Absolutely no reason to believe a civil emergency would play out any differently. You over-estimate the 'state' loyalty of grunts/NCOs on the ground, and you underestimate the sheer quantity of arms/arsenal held by like-minded private citizens. Yes, most citizens are sheep, but they will not matter. They are just collateral... refugee drift. Behind the sheep are wolf packs... lots and lots of well-armed wolf packs. The wolves are not sleeping. The wolves are biding their time.
I truly hope it never comes to this end, but if it does, I do not expect federal/state martial law & order to hold things together for very long.
Add. - Almost everyone grossly understimates the anti-authority/anti-government undercurrents in the USA. It is the 800 lb. gorilla in the room, imo.
Simple to sieze - Just declare all who follow " non MSM " blogs as terrorists . Thanx to Dubya they can hep themselves to all . No recourse . But then again when that happens those who oppose the status quo of robbery will already be in prison . Would a long train to the Alaska slope be equiv to Siberia? Not many rats to eat up there.
It is difficult to get used to the Age of Trillions.
A trillion is a lot of money.
If you could spend $1 million per DAY, it would take you 2730 years to spend $ 1 trillion. Almost three millennia.
I think the public debts are going high in the same pace of the Hard Drives of computers...
The age of mega-deficits and giga-deficits is over. Now it's tera-deficits.
Si, mi amigo
Discúlpeme, no hablo el castellano muy bien...
Falo português.
Yo entiendo, mia familia son Sud Americanos!
"uno el nickelo" courtesy of "Jeff Spiccoli-Fast Times at Ridgemont High"
Are you stalking me? My Spanish sucks cuz my capitalist father thought life would be better for me here, a lifetime of gringo-ization. I am also getting old, so I often mix the 4 languages I learned to speak. You are very typical of ego deluded Macho Males prevalent in SA. One of the reasons I won't be holing up there. Sometime in the future, maybe SA will grow up, we know how you like your whores.
Sorry Kali. I wasn't making fun of you. It was just the first time I've seen any spanish on this blog and I was trying to be funny by injecting some of my own spanish.
Unfortunately, my Spanish is limited to common menu items and how to count to ten (thank you Sesame Street). Missed the whole exchange.
Yeah, but we all know what happens to a hard drive when it crashes.
It becomes worthless and you never get your stuff back.
If you (or they) wan't your data, it is still there. You just need to spend a grand to get it back.
Maybe the Fed needs to start buying gold to push the dollar down in value so they can unload some of the toxic mortgage assets. Probably not going to happen but it makes a kind of sense.
I see it now, A vision.. I see Timmy G holding up a NYC subway conductor and demanding 700 Billion Dollars.
too funny! Slave auctions!
Kali, what do you think the AUCTIONS thus far have made us?.
Precisely
In about a year he would have every expectation of getting it, too. Probably in a 500B and 2 100B FRNs (or maybe Obama notes).
Iceland to banksters... screw you!!!
Does he hold his pinky to his cheek while saying it?
Luckily, we will never pay this debt off, so perhaps "the joke is on them" after all.
Barry will be impeached before we default. I'd remove his portrait from the Hall of Presidents too.
Heh, I'm predicting that 10-yr. yields will be 2.0% if the Dow makes it to 9,000, and 1.0% if it makes it to 7,500.
I suspect anything under 12-mo.will have a negative interest rate.
LOL....
we'll have to pay the treasury NOT to give us t-bills.
Instead of paying taxes they sell all the long term t-bills to the insiders and pay people in -10 percent interest short term t-bills. LOL
Assuming you believe the market is being manipulated by forces, what will cause the forces pushing the stock market back to the 10,000 reverse course?
Inflation?
treasurys bitches
Interest rate and debt servicing costs:
http://img689.imageshack.us/img689/3169/graphtreasuryinterest.gif
You don't really want to know what happens with the red debt servicing line when (if) the green interest rate line goes up.
Especially with such a high percentage of bills now being sold - any rise in Fed's rates will immediately cause a big hit in debt service costs.
CBO projections for net interest payments:
2010: $209B
2020: $916B
(Not sure what rate that's based on - I think that's assuming a return to an average rate of about 5%; current is 3.2%)
Brilliant question du jour: can Geithner sell the oil that laps up on the coast to cover some debt?? ;)
Someone with cartoon drawing skills should make one of a kitchen faucet spewing out crude somewhere in the heartland, and mom and pop getting all excited they're rich!
Caviar,
Some funnies for you:
http://theburningplatform.com/blog/2010/06/04/friday-funnies-3/
Nice! Thanks for the laughs.
Hehe satisfied that crave for absurd comedy. Thnx.
How about Barry Obama with a broom made from dollars trying to soak up oil?
LMAO!!!!! uh good God, good sh*t! lol
no, no, it's gotta be a mop. he's gonna clean up this mess. 'publicans no help at all.
..err.. maybe not that mess.
- Ned
RE: "...We wonder just where Tim Geithner will get the much needed cash to plug not only the increasing daily deficit spending (today alone the US burned $21 billion net of debt transfers, gross the number was even worse), as well as to fund daily rolls once rates start eventually increasing..."
Just sneak into the FED and add a few ones a zeros to some key reserve accounts. No harm, no foul, right? (lol)
"Just sneak into the FED and add a few ones a zeros to some key reserve accounts. No harm, no foul, right?"
You mean another "fat finger" event?
Could we stand it (the excuse, not the actual occurance)?
No need to wonder how debt plugs filled!! Extended banking holiday on the way and this is just one more signal little timmy knows what he has to do!! Shut down the financial system before the truth of all our dead head fed goon fraud is discovered by we the people!! As if there's not bunches awakened in the last year to the rank corruption and the spreading of risk to the innocent by reprobates!! Get ready for more as the innocent will suffer at the hands of the insanity of the insane!!
Sorry to repost from another thread but curious to hear folks thoughts (also potentially relevant).
Not that I'm against gold but I've a funny feeling the Gov knows just what they are doing.
They have no concern about more debt and are glad to "borrow" as long as others will give. For those foreigners holding T's and dollar reserves (China, Japan primarily), that is the paper that will be truly worthless. The US has no plan to pay this back nor to really inflate it away either (high inflation would destroy American economy through $100 or $200 or $400 dollar oil, etc.)...the only plan I can reckon for our gov is go for broke borrowing and then go protectionist. Awful shock for the exporters / creditors of the world when the US puts up 100% tariffs and taxes on nearly all imports and implements a Marshall Plan for America...building the factories, the infrastucture, make the goods we need, full employment in America is here again. Pickens gets his wish for America to run primarily on nat gas. We have the resources, the work force, the gov structure to do this. Whether we should is an entirely different question?
But this is the only path I can see by which America wins this game...unless America losing is the goal and then a wholy different path is possible (1 world goverment folks fill in here). However, protectionism would leave Asia in ruins and be the modern day equivalent of the middle ages when global trade drops and the world turns back local. America knows there is no military that can come and get us so they can act w/ impunity.
Crazy ... probably. But unless you can come up w/ a better "solution path"...then crazy it is. Unless there really is no plan at all or they actually believe the shit the CBO or WH put out...and then gold (and small to medium calibre weapons) are an exxxcelllllent idea.
If America still has its gold (BIG IF), then it will be just fine and might even come out slightly on top after the death of the dollar as THE reserve currency. However it will no longer be the undisputed heavyweight of the world and because of this will have to reevaluate its standard of living. And the poor/union parasites will riot regardless.
http://fofoa.blogspot.com/2010/06/its-debt-stupid.html
Supposedly (never can quite tell accurately) it has around 8000 tonnes of gold, giving it an estimate value at $1000 an ounce of around $270 Billion.... not nearly enough to pay off debts . Heck even China wouldn't be happy with that amount, compared to the lion share of US debt it possesses.
Slightly more worrisome is that besides the Dec 2009 figures the CIA lists for Foreign exchange and Gold reserves as N/A.... maybe a lot of it has already been solved to calm the fears of those buying into more US debt. If that's the case then it's gone for good and ain't coming back.
or...
They...
Really...
Don't...
Know...
What tha fuck they're doing.
And that is one of the scariest scenarios of many I can imagine.
That would be astonishing considering the individuals making the decisions are doing quite well. It's those they "represent" that are swirling the drain.
Perhaps they know exactly what they're doing...
and we are the one's who don't know.
They know exactly what their doing, the Agenda (after Cap & Trap), and Amnesty................will be complete.
The bottom line of what is going down, IMHO, is DECONSTRUCTING AMERICA..............
Before the NEW W O can come into play, the OLD must be done away with..............
That's is the Progressive Dream, for the Globe.
“It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so" - Mark TwainThey've convinced themselves that fiat money isn't inherently criminal - out of a sense of ego preservation. Cognitive dissonance is extremely powerful. No one wants to think of himself as immoral ...
I think the globalists have deluded themselves into actually believing in a Kenynesian response that can't work under these conditions. To admit that it won't work is to admit that it has been a scam all along.
Or, as Kramer (Seinfeld) famously remarked - "Its not a lie .... if you believe it"
+1 MadCow
The deluded in DC actually believe that the 'recession' is over and any minute now the economy is going to take off with a +10% GDP for the next 20 years. It has to right? Keynes said so!
Caution! These fools will get SAVAGE when 'non-believers' derail the 'recovery'. I expect draconian measures to make everyone get on board with the 'plan'. That is the course predicted by Hayek - and he is proving more prophetic with each passing day.
@DosZap
- bingo here...BINGO.
Natural Gas could not be used to run the nation as it is. There just isn't the reserves.
According to the CIA with 2008 stats the US has about 6.8 Trillion Cubic Metres of Natural Gas reserves. It consumes around 660 Billion cubic Metres a year. It would have to raise domestic consumption to be fully self sufficient on only Natural Gas (and possible Coal and Nuclear Power). But these resources wouldn't even last a decade.
Probably valid but I'm more interested in what scenarios do make sense? WTF are those in power thinking now? Do we think they have a diabolical plan or they're simply reacting from election cycle to election cycle?
Lots of honest to goodness smart people involved in the admin, do we really believe they are stoopid enuf to believe the stuff they put out for mass consumption?
Ever hear of the "Seven Blind Men and the Elephant?"
Put the parts together to understand the big picture...you have anything to add?
Unfortunately, natural gas is in the crapper and all of the independent power producers fired with natural gas are hurting badly. You can't sell a power plant fired with natural gas these days because no one will pay what the seller thinks it's worth and no one will build one because you can't push the numbers to make money in light of the depressed demand for power (what recovery?). The big money nowadays is in natural gas storage (think of supertankers being used for storage during times f depressed oil prices).
Maybe my horses will do more than eat $50 a month after all. Anyone know where I can pick up a plow?
Unfortunately, or fortunately, depending how you look at it, I don't think they have a plan. They thought by building false confidence in the masses, it would turn into growth. However, the engine of growth is structually impaired, and only a lot of time and deleveraging will start the healing.
The Fed probably appreciates the low interest payments from people rushing to "safety" each time the market crashes; but when the municipalities need a pailful of bailfoo, interest rates will rise as people will not consider treasuries a safe haven any longer. This is when the shatner hits the turbo charger.
I second that emotion. There is no plan. I'm a historian at heart. Each time a dominant society goes into decline mode, there's just competition over the remaining pieces of the pie. Until even the crumbs are gone. In the time it takes for full decline to happen there can be revolts (or several), internal coups and takeovers and gradual conquests by external forces .
I don't believe the PTB have any other plan than greed. When the going gets tough the ruling classes have only one goal: seeking higher ground.
For now I see them only trying to keep the big game going for as long as possible, hoping for a miracle. Radical change is risky and painful and that's something that our spoiled little rich kids would never want. I think external events will drive their decisions and they'll be more reactive than proactive. They'll be happy watching it all happen on TV from their gated community that now will feature a moat and drawbridge.
I second that emotion. There is no plan. I'm a historian at heart. Each time a dominant society goes into decline mode, there's just competition over the remaining pieces of the pie. Until even the crumbs are gone. In the time it takes for full decline to happen there can be revolts (or several), internal coups and takeovers and gradual conquests by external forces .
I don't believe the PTB have any other plan than greed. When the going gets tough the ruling classes have only one goal: seeking higher ground.
For now I see them only trying to keep the big game going for as long as possible, hoping for a miracle. Radical change is risky and painful and that's something that our spoiled little rich kids would never want. I think external events will drive their decisions and they'll be more reactive than proactive. They'll be happy watching it all happen on TV from their gated community that now will feature a moat and drawbridge.
I think that in their arrogance, they have decided that they can inflate it away and that they can control the inflation. This is the same arrogance that led Greenspan to think that he could control the asset inflation that he started and that Bernanke has continued. I think the boys have baked inflation into the pie and are counting on it to bail them out.
Agreed.
In my hubris I thought tha commoners would catch on.
In reality though they're too preoccupied.
did you say something? i was checkin out this killer app for my ipad.
imho, the plan is obvious, gubment, ummm, we're not sure, let's do what hank and ben say
if things don't work out, they all say, EVERYONE AGREED BEN WAS THE EXPERT, just like the war in iraq..................which is now a moot point 8 years later
things and emotions change, they'll take a mea-culpa, we thought it was best to go with expert..........lah-de-dah-de-dah
ben, is a black and white thinker, just like tim, they are smack dab in the middle of keynesian philosophy.........so i guess that mark twain quote applies
Did they ever have any choice but inflation?
Deflation benefits only savers, amongt whom you will not find governments, banks, and, unfortunately, most US voters.
You would definately piss off a lot countries. Some countries might be will to help their crazy neighbors refine their A-bomb skills.
A so called rogue nation can still create a lot problems for the US.
Ya, I had a vision the other day of a "financial Nuremberg"". That was a fun line of thought. The US is the rogue nation.
Here is a plan they just never seem to get: Embrace Entropy, because its coming like it or not.
Long Live Iceland
Destruction and Creation. Entropy is not the only force at work in the Universe.
On your positive path (US 'wins' the game)--I've gotta think. Concur with the "they have paper, we have 'money'" thinking (until it is not money...).
Let's have some fun--game this out.
"Go for broke." Now there's a thought. Take the Chicago crowd and give them credit that they really mean "fundamentally change the system." Background research in a couple of Alinsky's books (Rules and Reveille good start) and concur totally that they are "smart".
Observe that they don't know shinola about actually making things better. The economy can't stant (but the administration can crow about) another jobs situation "as reported" (doubt enters here).
OK, now closer to things that I have experience with. America can NOT act with impunity. Too many weaknesses in security (external, let alone internal). Solving external weakness; pilot project is Zahal vs. Turkey (freakin' NATO member!). Soon to come close to a port near you.
So, your GTH extreme plan has many holes and, since we can reasonably infer that MAD is not on the table from 1600's point of view, we'd be screwed.
Worth the threat? Ronnie, Maggie, and THE Pope did that with USSR to our benefit.
O? no poker playa
- Ned
They know what they are doing, my friend.
You heard of Cash4Gold? That's one thing they are doing, among others. It's called too little, too late. It's called panicking.
But the main thing they are doing is putting everything into their propaganda effort to undermine the inevitable. They are fucked. Up shit creek, no paddle, and the leak has the boat better than a third full now.
I hope you made the most of the golden age of America, because it is over.
My sincere commiseration's to those of you there. This was not the doing of Main St; Wall St took over Washington a century ago.
Get some physical gold, and stop 'trading' asap.
have to admit . . . i've thought (and yes, hoped for even) the same.
i know it's not the ideal route, far from it in a lot of ways. but it's come to the point where i don't care.
The daily treasury statement website is down. I wonder if it was crashed on purpose to stop people from looking or if it is overwhelmed by interested visitors.
Buffett Expects ‘Terrible Problem’ for Municipal DebtWhat is the best way without using derivatives to short this segment.
Thanks
Move and become and ex-pat.
Was one for long time. No where left to go. We ain't the only ones in do-do. Else why the dollar going up?
It ain't no neat-o-peachie-keen-o bowl of cherries currency now, is it?
We are soooooooooooooooooo Fucked.
Precisely.
Indubitably.
From this weekends FT
Finding a bolthole in a risky world
Published: June 4 2010 19:44 | Last updated: June 4 2010 19:44
Not much investor good cheer to be had from the G20 summit in South Korea. Rather than radiate confidence, all the officials meeting in the port town of Busan seemed openly worried about the chance of a double-dip global recession. And then there were the patrol boats prowling outside, a dark reminder of North Korea.
In fact, it can often feel as though there is no longer anywhere in the world for investors to safely and profitably sink their money. Developed markets are a crashzone. Emerging Europe’s fate is closely tied to the euro’s. Africa is a possibility; although given the size of their economies, Asia and Latin America are probably the regions to beat. Furthermore, of this pair Latin America might even have the best prospects of all.
That may sound absurd. Brazil is hot, and Mexico warming-up, but how can Argentina or Venezuela compare to manufacturing giants such as South Korea, let alone China? Yet high savings rates and large manufactured export bases are no guarantee of economic success. Look at Germany or Japan.
Like them, China depends on exports; trade accounts for 70 per cent of output. That makes it vulnerable to recession elsewhere. Brazil’s economy, by contrast, is led by growing domestic demand. Latin America may trade less with the rest of the world than Asia. But in a synchronised downturn, such isolation can have its merits.
Latin America also looks safe from domestic financial blow-up. Due to past crises, credit penetration is low, and lending prudent. By contrast, China’s state-owned banks are on a lending spree. As has been said: if you have no potatoes, you cannot get potato blight.
Then there is productivity. Latin America is usually assumed to be a laggard. Yet from 2005 to 2008, Brazilian total factor productivity rose at an annual average rate of 2.1 per cent, with Peru much the same. That is respectable, given that productivity rose 2.9 per cent in China and South Korea, which lead the Asian pack.
Latin America’s biggest problems are low savings and low investment. In the long term, these need to be addressed. Yet for now the need for foreign savings also ensures open capital markets. A history of low investment also means the marginal return on the marginal invested dollar should be higher in the west than the east.
The clincher, though, is surely geopolitics. Latin America has no rogue nuclear powers, nothing like the China-Taiwan dispute, Indonesia’s febrile religious atmosphere, let alone Thailand’s coup. Colombia-Venezuela frictions are a plaything by comparison. Indeed, the biggest immediate risk of trouble is probably from Brazil if Argentina wins the World Cup. At seven-to-one, the risk of an angry booing match erupting at the Iguazu Falls is safe enough to live with.
Copyright The Financial Times Limited 2010.
I thought we gave up on warren?
Nobody gave up on Warren... We did learn that he isn't Santa Clause.
Short munis without derivatives? well ...non-CDS of course
In their minds Euro weakness gives them cover.
http://www.youtube.com/watch?v=Uu6MDdxBork
gov dead head fed goons do know exactly what they're doing by placing the risk squarely at the feet of the innocent! Where there is no law given there is no condemnation but these roaches know the law and yet suffered the innocent/tax payer to pony up on bailouts!! There will be hell to be paid as God lives and the basturds desicrated; mocked our constitution!! God will not be mocked!! Watch the wicked slay the wicked from fall street to the district of corruption when the house of cards implodes!!
Funny, nobody even pretends to discuss the numbers any more (deficits, GDP growth, private debt rollover...hell nobody even cares about housing or CRE anymore...to small to be concerned w/ these topics). The absurdity of servicing or positively resolving these issues is off the table for anyone who cares to take out pencil, paper, and a calculator.
Thank god American's aren't real strong mathmeticians or else actual action would be required of our citizens. Ignorance is bliss...until it ain't.
Stop distracting us with facts, the TV is on!
Hambone the truth is self evident!! Soon all Americans will know we've been robbed, raped, pillaged, and plundered by the bought and paid for puppet dead head fed goons! They stole America's wealth for decades and now what goes around comes around as they will not escape the natural wrath poured out upon them in consequence of broken eternal laws which need be rectified! Even if it so be by jiffy lube fire up the sphincter of the all the CONgressional reprobates!!!! Too bad! I'm so sad!!
Hey Buz,
appreciate the sentiment but there is a part of me that can't help but read your comments and imagine them being said by a Southern baptist preacher :). Love it and pour it on...if the ship is sinking, we may as well have a little fun.
Our government's ability to squander wealth has no equal.
Or, create FAKE wealth................worst of both worlds.
It's the ultimate ponzi scheme. It would do Madoff proud.
As long as everyone is willing to play the game, accepting their role by working, we go through normal bubbles and busts. But when massive leverage is thrown in, the game goes nuclear. Too many companies and goverments cheating at the game via lobbyists and leverage. Bring lawyers, guns and gold, the shit has hit the fan.
I assume the lawyers are for target practice?
Maybe more like firewood that carries itself?
Can't lawyers be used to soak up oil spills like they do other forms of production? I know they are very porous, mostly like foam.
i guess you'll be representing yourself when the time comes then.
good luck with that.