And The Decade's Winner Is...

Tyler Durden's picture

In a small vindication for long-suffering gold bugs, Bloomberg's chart of the day brings a decade of false gains, paper pro(phe)ts, and the inflation/deflation debate to a close.

As the chart demonstrates, "A $100 investment in gold would now be more than $380 while the same sum in commodities would have grown to about $357, according to the Standard & Poor's GSCI Enhanced Total Return Index." To the chagrin of stock pumping, Philadelphia majority-owned cable stations, stock investors lost $10 in the decade. But next decade will surely be different, see: The Fed is gone, Chairman Ben is no longer at the helm, money is not being printed as if Cottonelle was going out of style, the US is done raking up trillions in deficits and punting the resolution of the fiscal budget mystery to the next administration, we are no longer reliant on China to finance our ultra-short term day to day existence, Goldman is no longer viceroy of this quadrant of the Milky Way Galaxy... oh wait...

nevermind

And for all the pomp and circumstance of Private Equity, of Hedge Funds, of fast, loose and easy money, the simplest commodity known to man clearly "out-thought" five business school generations of the smartest men in the room, whose financial weapons of mass destruction brought nothing to the world than the abyss of systemic collapse. It does kinda put things into perspective.

Yet the paradox of this chart is amusing, as investors run to both risk and safety at the same time: the only clear thought in their heads - get rid of the Bernanke Toilet Paper Put (aka, the US Pesito).

"That's fear and greed at the same time," said Toby
Nangle, director of asset allocation at Baring Investment
Services Ltd. in London. "The fear of inflation is in the gold
price. Commodities and oil show emerging markets emerging, and
the rest is the developed markets submerging
."
Holders of U.S. high-grade corporate bonds made a profit of
about $90 on their investment, as did Treasury investors,
according to Bank of America Merrill Lynch index data. Buyers of
crude oil saw their $100 turn into $268 after it rose to more
than $500 in 2008, based on the futures contract for West Texas
Intermediate.

One sure thing: the risk and fear convergence can not, in theory or practice, continue for much longer. And 2010 will be precisely that - they year in which the [risk/safety] trade collapses with a bang. By implication, at least half the investors out there will be left out to dry. Goldman Sachs would like to extend its condolences to that half (the other half will get an invite to Goldman's 2010 Xmas party - the elves can only be put away for one year before they yearn to come out and play), even as it continues monopolizing the agency market in all product classes. After all, when you are Goldman Sachs, the term Zero Sum does not apply.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
geopol's picture

WTF???I take it , your surprised?

john_connor's picture

no, not surprised, just disgusted.

geopol's picture

I would say severely disgusted.... General strike!!

 

DoChenRollingBearing's picture

Let's bring back the Tea Parties!  ASAP.  I enjoyed going to one last April.  They need to be BIG and FREQUENT so that the MSM cannot ignore us.

And if tax protests start up, yeah, I'll be there too.

Anonymous's picture

It doesn't matter how BIG or FREQUENT protests are, the politicians will laugh and ignore them until they become THREATENING.

MarketTruth's picture

Sadly, American sheeple are pu$$ies! Look at Calif and their 10% additional tax holdings recently and there were no major strikes nor revolts. Until there are massive strikes and a full stop in production and transportation in all of the USA you can expect the US Gov to ignore the sheeple. Sadly, the USA sheeple are wimps, not even worthy of being a mere shadow of what the Founding Fathers had intended.

The original Tea Party was due to a mere few percentages of tax, an today Americans are slaves to USA Inc and pay over 30% in taxation.

Do not hate the messenger (me), hate the message. Until then ZeroHedge sheeple, keep trading stock, working mind-numbing jobs and pay your 30%+ in taxes, consume, procreate, support your government and be compliant.

WaterWings's picture

+1

Look at these pathetic UCLA students. They think they are 'activists' - they'll pay anyway.

http://www.youtube.com/watch?v=jl8XYMoD5tk

95% of the American public that shows up will be like the kid @ 1:58 - scared shitless once the Powerz make a move.

MarketTruth's picture

Nice, yet too small and localized to make any difference. The USA needs a MASSIVE all states-wide strike and grind the country to a halt.

No production, no shopping, no public transportation... and may as well do a run on the banks too and withdrawal all funds.

Without a huge countrywide demonstration that grind things to a halt like those seen in France and other countries, the sheeple of the USA will continue to be worker drone/slaves. ZeroHedge could organize or at least start a campaign for such a strike... which also includes a run on the banks.

geopol's picture

I think you've outlined the basic business model. Once we get traction, who would articulate the demands to DC?? Or would the DC crowd  be jolted into constitutional compliance?

 

Phase II is difficult to predict..

MarketTruth's picture

The Constitution would be the guide...

WaterWings's picture

The Constitution minus Amendments 11 - 27.

trav777's picture

calling for a run on the banks could be construed as terrism

besodemuerte's picture

LOL, I think he went to go clean out the shit from his pants after that moment at 1:58.

Hammer59's picture

They were protesting modest increases in tuition for their state subsidized educations. Pathetic is right! The police were wearing bicycle helmets, fer chrissake!  You should have seen the YouTube vid's of the kids assaulted by real police in riot gear in Chicago.

They were tear-gassed, but they did not snivel like the Cali pansies.

Dont taze, me bro!

CB's picture

we should just tar & feather all the feds, except I wonder if there's actually enough tar & feathers to do the job.

Cursive's picture

I LOVE the threats that we are constantly subjected to.  The market this, the market that.  Phuck the market!  We live in a society, not a phucking market.  These shills and hucksters can't get enough of the market.  It is the lens through which all stories most be viewed.  It is the all-seeing, all-knowing eye that watches over us.  I swear, I have a vision of Mordor, radiating from above the Masonic pyramid.

Excerpt:

 

Extrapolating the current vote count for the entire Senate would yield about 25 “no” votes, a total that probably wouldn’t trigger declines in stock or bond markets or cause investors to question the Fed’s political support, saidMichael Feroli, an economist at JPMorgan Chase & Co. in New York.

“The market could deal with that,” said Feroli, a former Fed researcher. “If you got closer to 35 or 40, I think that’s worrisome.”

 

John Bigboote's picture

+1. They are like a bunch of giddy little school girls; it's disgusting to watch.

Cistercian's picture

 Mordor it is.Visualize a scene in a pastoral setting in america, suddenly the view reels and begins to fly toward 85 broad as the music from the film the two towers as used to depict the mood for the creation of the evil army builds in intensity.We see remotely into Blankfiends office and lo..he is an orc!And so are his minions.

 Of course this is entirely appropriate since Mordor is the land of darkness and evil....just like 85 broad is the heart of darkness today.Who can withstand The evil Fed and the evil GS?They are the bringers of doom for our time.

Anonymous's picture

"Exterminate the brutes!"

In James Conrad's day the brutes were native Africans. Today the brutes are the middle class of America, to be exterminated by the colonial push of the banker/CEO class. We will be "civilized" by those that know better.

WaterWings's picture

They just might speak Mandarin, too.

Anonymous's picture

You're surprised? The almighty sacred 401k and the market on which it stands. What else do you think is first and foremost on the mind of every single person of any importance in Washington D.C., day and night? Renomintate Bernanke = More Free Money For All = Market Stays Up = I Keep My Retirement. Guarantee you the entire thought process in no more complicated than that for most of the Senators voting "yes". Future genrations and the country itself be damned but God forbid my portfolio balance go down any more than it already has.

Anonymous's picture

Dear Eye of Sauron,

When we first started seeing each other, I found your constant concern for my future and unblinking vigilance to be endearing. Lately, however, it's become a bit creepy. To be blunt, you're kinda cramping my style. Maybe we can just be friends?

Yours Truly,
B

wgpitts's picture

Al Capone did not want an audit...Enron did not want an audit...Healthsouth did not want an audit.... Worldcom did not want and audit....Bernie Madoff did not want an audit ...Michael Milken did not want and audit...and Ben Bernanke and the Federal Reserve Bank does not want an audit....get the picture....where is the missing $3 trillion Ben?

Assetman's picture

I can tell you with a high degree of confidence that I don't have the $3 trillion.

Anyone else out there have it?

HooFlungPoo's picture

Sorry dude, I lost it at the casino.

A Nanny Moose's picture

I had it, but spent it on beer....hic!

Cursive's picture

Congratulations.  I applaud all the gold holders out there.  You know who you are.  Unfortunately, so does the FR and the UST.  When they want it, they'll come looking for it.  Get yer guns ready....

geopol's picture

I can just see Timmy at my front door,, Muhahahahahaha The dust kicks up as I head for mexico....

 

Cursive's picture

@geopol

I was hoping for more of a fight, than flight, response.  ;-)

Anonymous's picture

US 2010 military Budget 680 billion. I prefer flight.

A Nanny Moose's picture

Military is mired in AfPac. Mix in folks like the Oathkeepers, and I think fight stands a chance.

Good G-d man, die on your feet FFS!!!

geopol's picture

Cursive,,, I forgot to mention Timmy was horizontal before I left...Let's try that again MUHAHAHAHAHAHAHAHAHAHA.....

 

 

Problem Is's picture

 "Get yer guns ready...."

The true gold-bug has his trusty Mauser '98 at the ready with hand loaded ammo with... not lead... but smelted silver slugs for vampires, gold confiscating UST boys and CBankers...

Disclosure: Long primers, dies and bullet molds...

Anonymous's picture

How about a Springfield M1A,
a RRA LAR-8 7.62 and 10k rounds
of 7.62x51mm with enough training/experience
to take down a deer @ 200yrds on the run.
Thats what we have....
Been very happy with Au performance, expect
equal performance in the next couple of years.

A Nanny Moose's picture

Not when you trade FRN's directly for PMs

trav777's picture

lotta fiat bulls don't seem to realize that the .gov can take your FRNs a lot easier.

In fact, they can take eFRNs with merely a mandate from on high.

One day, you think you have "money in the bank" and a 401(k) and next day the .gov says gibs me dat.

They could also do away with FRNs that you'd been hoarding.  By fiat, render them illegal tender.  Priceless dollar crowd may wanna consider this during scheming over how they're going to short to 0 and buy everything up after the "deflation" with all their hoarded cash.

geopol's picture

I agree,, what the fuck is with the FRN's???? Shit house paper....

chumbawamba's picture

Marla's explanation was that it was supposed to mean that FRN are so devalued that they were appropriate to use as props for decorating your snowman.

I know :)

Anyway, looks like you got your wish, Asshats.  Look up.

I am Chumbawamba.

Hephasteus's picture

LOL. Now do one with toilet paper rolls in one hand and gold in the other!!!!

chumbawamba's picture

How about an AK in one limb and a can of beans in the other?

You know who I am.

David449420's picture

And I'll bet you thought no one would pick up on that. I like wit.

A Man without Qualities's picture

Is the outperformance of commodities, oil and gold really about risk and greed?  

The way I see it, this is as much about the failure of the economy.  The other three are linked to the performance of organizations - businesses or governments, who have clearly failed in their duties.  You can do all sorts of clever accounting tricks and you can print all the money in the world, but this does not create economic growth.  Meanwhile, a barrel of oil or an ounce of gold stays constant.  This is not a victory for gold, but a defeat for capitalism.  If you want to know where the value has gone, look in the bank accounts of the bankers and the captains of industry.  While the stock market has been flatlining, their personal wealth has multiplied.

Argos's picture

Exactly.  And this is another reason why I like gold.  Not only is it a short on the dollar, but a short on the present .gov.

chumbawamba's picture

Hyperinflation, like a plague, creeps silently across the countryside, the transmission facilitated by the minds and hearts of those that demand sound money and a responsible government.

I am Chumbawamba.

Wasatch's picture

True, and best to remember, that ones wealth in gold is measured in oz and not in fiat.