Up, Up And Away (Part 2)

Tyler Durden's picture

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 03/31/2011 - 21:32 | 1123702 Yen Cross
Yen Cross's picture

It's a large flying reptile Mix . AKA ( Pterodactyl) The Fed...

Thu, 03/31/2011 - 22:27 | 1123824 SparkyvonBellagio
SparkyvonBellagio's picture

Vote for Ron Paul / Rick Santelli 2012

Thu, 03/31/2011 - 22:20 | 1123832 SMG
SMG's picture

God help us...

Fri, 04/01/2011 - 00:39 | 1124123 Manthong
Manthong's picture

Not to worry, it'll hit resistance at about a quadrillion.

Fri, 04/01/2011 - 02:17 | 1124233 American Dissident
American Dissident's picture

OK - What Now?  SO- You must prefer the current slew of innumerate nutless luciferians feigning public service.  Clarity at alast!

Fri, 04/01/2011 - 07:02 | 1124371 Mentaliusanything
Mentaliusanything's picture

The Identical flight plan of Icarus (with the identical fault)
wax on wax off.
My goodness, if you can't see it you have the brains of a smash crab

Thu, 03/31/2011 - 21:31 | 1123705 ParaZite
ParaZite's picture

Damn it Bernanke... you weren't supposed to use the viagra in the printing press.


Thu, 03/31/2011 - 21:32 | 1123707 Robot Traders Mom
Robot Traders Mom's picture

If you flipped the chart upside down, it would look like AAPL and the shitty tech sector over the next 6 months.

Looks like the slide continued today for AAPL...I miss the days when Robo would post his yahoo finance charts on Apple his business teacher would email to the class and he would use on ZH.

Thu, 03/31/2011 - 22:59 | 1123909 TWORIVER
TWORIVER's picture

You're so hot.

Thu, 03/31/2011 - 21:32 | 1123710 tj3
tj3's picture

Keep watching the repo's that's the headline message. I hope ZH will see other parts of the deleveraging puzzle...whether it's true or really happening, or not.

Thu, 03/31/2011 - 21:35 | 1123711 Cash_is_Trash
Cash_is_Trash's picture

Respect the orders of magnitude. L' inflatzione puttana

Thu, 03/31/2011 - 21:37 | 1123721 Number 156
Number 156's picture

Next stop, Weimar Republic part Deux.

Thu, 03/31/2011 - 21:44 | 1123741 Long-John-Silver
Long-John-Silver's picture

I can't wait till I'm heating my home with a truck load of US Dollars I purchased with a single 1oz silver round.

Thu, 03/31/2011 - 23:30 | 1123974 NidStyles
NidStyles's picture

Screw that, get some flame retardant epoxy and made wall's of the stuff. Nothing like cotton to keep you warm at night.

Thu, 03/31/2011 - 21:38 | 1123722 dan10400
dan10400's picture

Does the unwinding of the SFP account for the big ramp from January '11?  Or is (yet) something else going on? 

Thu, 03/31/2011 - 21:47 | 1123723 tom a taxpayer
tom a taxpayer's picture

Can't touch this: Adjusted Monetary Base.


Thu, 03/31/2011 - 21:42 | 1123727 bbq on whitehou...
bbq on whitehouse lawn's picture

Everyone with a brain, knows this is going to go bad. Question is who is going to take the fall for it?


Thu, 03/31/2011 - 21:46 | 1123744 knukles
knukles's picture

You, me and Joe Sixpack.

Fri, 04/01/2011 - 01:09 | 1124170 werealldoomed
werealldoomed's picture

I was going to wait.. But since you called me out, I might as well come clean.


This whole thing is my fault guys. I should have never loaned Big Ben my printer.

Fri, 04/01/2011 - 09:12 | 1124688 LawsofPhysics
LawsofPhysics's picture

Everyone holding that paper.

Thu, 03/31/2011 - 21:41 | 1123731 Long-John-Silver
Long-John-Silver's picture

It looks like the Silver chart from the time the Hunt Brothers started buying Silver until now....

Thu, 03/31/2011 - 21:43 | 1123736 Spitzer
Spitzer's picture

The more the printing the worse it will be for the dollar when confidence is lost

Fri, 04/01/2011 - 04:48 | 1124332 malikai
malikai's picture

Confidence? Where? Who has confidence in the dollar?

Thu, 03/31/2011 - 21:45 | 1123739 Elliott Eldrich
Elliott Eldrich's picture

This increase in the adjusted monetary base is going to spark serious inflation once the velocity of money picks up. My big question is, will the Fed eventually step up to the plate and jack interest rates sky-high (ala Volcker) or will they instead allow the Dollar to inflate to nothing? Personally, considering how vital the Dollar is to the global economy, my money is on the Fed eventually stepping up to the plate and defending the Dollar with high interest rates. However, I don't see that actually happening for quite a while.

Thu, 03/31/2011 - 21:48 | 1123749 Long-John-Silver
Long-John-Silver's picture

They must kill the Dollar before they can implement a one world currency.

Thu, 03/31/2011 - 22:25 | 1123845 spankthebernank
spankthebernank's picture


Thu, 03/31/2011 - 22:49 | 1123889 JohnG
JohnG's picture

Nope.  It's a race to zero, and Ben's winning.

Hard times ahead.

Fri, 04/01/2011 - 09:15 | 1124694 LawsofPhysics
LawsofPhysics's picture

The Fed can not raise interest rates, it will push the government into default.

Thu, 03/31/2011 - 21:46 | 1123742 A Lunatic
A Lunatic's picture

Wouldn't launching Patriot missiles soak up a lot of excess dollars?

Thu, 03/31/2011 - 21:54 | 1123764 Long-John-Silver
Long-John-Silver's picture

Patriot missiles are used to shoot down incoming missiles. Tomahawk's are the missiles that contain 14Kg of unrecoverable Silver.

Thu, 03/31/2011 - 21:56 | 1123773 A Lunatic
A Lunatic's picture

Then couldn't we launch Tomahawk's at ourselves and then just shoot them down with Patriots? That makes the most sense.

Fri, 04/01/2011 - 06:36 | 1124363 Snidley Whipsnae
Snidley Whipsnae's picture

Nothing uses up commodities faster than war... Except a big earthquake plus tsunami plus nuke power plant melt downs.

The Fed/gov is jealous of mother nature.

Thu, 03/31/2011 - 21:55 | 1123774 Ahmeexnal
Ahmeexnal's picture

In the new crop of made-in-China Tomahawks, engineers replaced silver with credit cards.

Fri, 04/01/2011 - 00:00 | 1124052 Vernon Wormer
Vernon Wormer's picture


Thu, 03/31/2011 - 21:47 | 1123743 CheapKUNGFU
CheapKUNGFU's picture

look, its easy...

All your monetary base are belong to us, MAKE YOUR TIME!


Thu, 03/31/2011 - 21:52 | 1123748 Ahmeexnal
Ahmeexnal's picture

Yet if you show this simple undeniable evidence to the sheeple, you will provoke in them the same stare as the one from a bovine about to be striken by a high speed freight train.

As to why their response to imminent danger is denial, you only must but to look at the japanese and their now set in stone fate.

TEPCO will soon announce that along with the crippled reactors, thousands of highly radioactive corpses -and the highly radioactive "Fukushima fifty", some of them still alive- will be all entombed in a huge pile of concrete the size of Mt. Everest.


Thu, 03/31/2011 - 21:52 | 1123766 Caviar Emptor
Caviar Emptor's picture

They're coming. Wage and price controls. Commodities futures limits. You heard it here. 

Thu, 03/31/2011 - 22:00 | 1123786 A Lunatic
A Lunatic's picture

And shortly thereafter you will not be able to buy those twenty pound sacks of rice or beans at Costco any longer.

Thu, 03/31/2011 - 22:22 | 1123835 Dr. Porkchop
Dr. Porkchop's picture

The 'evil speculators' will be arrested comrade citizens! Line up for your bread! They have soup too, citizens!

Thu, 03/31/2011 - 22:27 | 1123850 Misean
Misean's picture

Well, boiled muddy water and scrappings from used vegetable bags, but it reduces the hunger pangs and it's cheap. You get a $1 bill as a napkin. Cotton and linen are very high brow, you know.

Fri, 04/01/2011 - 00:42 | 1124127 cossack55
cossack55's picture

Methinks you are correct, Sir.

Thu, 03/31/2011 - 21:54 | 1123772 alien-IQ
alien-IQ's picture

yet another chart busting through resistance...this is like...TOTALLY Bullish...totally.

rally on dude...

Thu, 03/31/2011 - 21:58 | 1123788 Rob Jones
Rob Jones's picture

Perhaps I am not understanding correctly. I thought that excess reserves represented money that was effectively out of circulation, so that an increase in excess reserves would tend to be deflationary. While Fed Assets represented money that the Fed has injected into the system, which would be inflationary. So wouldn't having excess reserves larger and growing faster than Fed assets be deflationary?

Of course, I am seeing evidence of increasing inflation everywhere now, so something must be wrong with my analysis above. Could someone please explain?

Thu, 03/31/2011 - 22:13 | 1123807 bullandbearwise
bullandbearwise's picture

It's very simple. There is no inflation. Price increases are being offset by hedging and discounts.

Thu, 03/31/2011 - 22:45 | 1123877 Matto
Matto's picture

Banks need reserves to lend or speculate. Commercial bank reserves are currency in the safe + reserve account balance with central bank so central bank reserves aren't neccessarily currency per se. Commercial bank reserves are only portionally in circulation through currency out of the bank at the time, a mere fraction of reserves and broad money. Banks reserves are ramping and its used in balance sheet expansion rather then lending hence inflation while lending slows.


Hope that helps

Fri, 04/01/2011 - 06:55 | 1124367 Withdrawn Sanction
Withdrawn Sanction's picture


If banks hold reserves, by definition, they are not lending.  One cannot hold reserves (or currency) and lend it out at the same time, ask Marie Antoinette.  Once a loan is made, the (former) bank's excess reserves are transferred to the receipient of the loan proceeds (or more likely, his/her bank account) through interbank reserves transfers or currency disbursement (unlikely).

While it is true, that banks need (excess) reserves to lend or speculate, the motivation for holding reserves is the deposit base (its liabilities), not its loans or securities (assets).

This difference is not merely semantic or technical, but goes to the heart of the Fed's problem:  it can pump liquidity into the system to its heart's content, but it cannot force banks to lend, and it certainly cannot force households and businesses to borrow.  This latter point is the principal reason the money multiplier is moribund.

The credit (lending) channel is clogged and pouring more liquidity into it does no more good than pouring more water into an already-clogged sink.  (The clog by the way are the masses of bad loans, which continue to grow to the extent they are not cleared and borrowers do not recover their ability to repay and their willingness to borrow.)

Thu, 03/31/2011 - 22:59 | 1123908 JohnG
JohnG's picture

"Or, in English, the cumulative differential plunge recently is hella inflationary (as the imminent subsequent reversion to the mean means money going out of reserves and into currency)."


Mean reversion is a bitch.  That bites.

Thu, 03/31/2011 - 21:59 | 1123791 lynnybee
lynnybee's picture

 ....... oh dear.   even i know that is not good.   i'm trying to explain things to my friends & family ~~ no one believes me & thinks i'm nuts.    the other day i got yelled at by a family member telling that everyone is sick of my "doom/gloom" .    it's not doom/gloom ....... it's the facts.    now, i just stack silver in private & have hide my foodstuffs so they don't laugh at the 200 lbs. of rice & 50 cans of chicken. ..... someday they will respect me .

Thu, 03/31/2011 - 22:27 | 1123847 Mr Anderson
Mr Anderson's picture

Make sure they apologize before your share your rice. Also, make them read an Econ 101 book before they get any chicken.

Thu, 03/31/2011 - 22:47 | 1123888 Matto
Matto's picture

Theres some good videos at www.positivemoney.or.uk its UK centric - but the banking finance system is the same around the world so it might help people get the message. Actually Chris Martensons Crash Course videos are A+ and simple to follow for showingh others.

Do NOT follow this link or you will be banned from the site!