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Everything Is Now Correlated Exclusively To The Fed's Balance Sheet

Tyler Durden's picture


The chart which we presented a few weeks ago courtesy of Sean Corrigan sees a few additional components added to it. Whereas before the chart focused on the Adjusted Austrian money supply and commodity prices, it now sees the addition of the S&P and Junk spreads. In a word: every single asset class correlates 1:1 with the Fed's balance sheet. If the Fed is really planning on ending QE2 on June 30, the market collapse will be epic. And, yes, this should not come as a surprise to anyone.

Courtesy of Sean Corrigan of Diapason.


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Fri, 03/04/2011 - 15:29 | 1019824 bob_dabolina
bob_dabolina's picture

This is surprising. I am exclusively surprised.

Fri, 03/04/2011 - 15:38 | 1019865 asdasmos
asdasmos's picture

Marc Faber on Bloomberg 3/3/11


Fri, 03/04/2011 - 15:54 | 1019931 Michael
Michael's picture

This proves the Fed and the Bernank are guilty of crimes against humanity.

Tweet “Project BLS Mayhem”. The Bureau of Labor Statistics are a lie.
We are getting this project going on
The participation rate in the labor market hit a new low since March 1984.
The BLS is making people obsolete and not counting them as unemployed.

What can we do to get everyone who is unemployed to apply for a job so they can be counted in the U3 headline unemployment rate and go on-line and apply for unemployment compensation?

How can we get the word out using social networking sites to get people to apply for a job so they will be legitimately counted in the BLS statistics?

I apply for unemployment compensation every 6 months even though I know I will not get it because I am not eligible for it, just so I can be counted and not put in the U6.

What can we do? “Project BLS Mayhem”.

This could be a Zero Hedge and Infowars “Project BLS Mayhem” activity all ZH’ers and Infoworriers can participate in it by spreading the word to do this.

We could have a sticky on the sidebar about it.

What can go wrong? Some people will find a job?

Fri, 03/04/2011 - 16:08 | 1019988 lincolnsteffens
lincolnsteffens's picture

Just keep calling your retarded Senators and Congress men and tell them what I do.

The Federal reserve is ruining the value of personal savings and driving up the prices of everything ( well, at some point nat. gas has got to move up) and the Fed. in cahoots with US Gov's ethanol policy is causing starvation and death around the world.

Fri, 03/04/2011 - 16:16 | 1020017 Michael
Michael's picture

Tweet; Everyone unemployed should apply for unemployment on-line. It's easy.

Fri, 03/04/2011 - 16:47 | 1020154 treemagnet
treemagnet's picture

Totally off topic - Dennis Miller had a caller on his show who referred to Pelosi as "Pelosi Galore" after the James Bond "Pussy Galore"....hilarious.  I think you should rename your avatar!

Fri, 03/04/2011 - 17:03 | 1020224 Michael
Michael's picture

It's on topic in the macro sense of ZH. It's only off topic to people who want to maintain the status quo.

Sat, 03/05/2011 - 04:10 | 1021619 Quixotic_Not
Quixotic_Not's picture

You think 'MeRiKans give two-bits about creating jobs?

All they care about is iCrap v.XXX and 'MeRiKan idoltry Season XXX.

Everyone knows the jobs are gone, gone, GONE!

Just ask Ross Perot (who 'MeRiKans thought sounded queer and had funny ears, not Hollyweird like ol' Simon "Da Brit").

Hey, and good ol' Ben Bernank is in the middle of hyper-inflating the U$D as commanded by the (D) & (R) sock puppets - Only an idiot wouldn't know this is about turning .GOV liabilities into pennies on the U$D, and propping up assets (can't have big $$$ RE or equity markets losing $$$ value).

Is anyone really surprised by this chart?  LOL!

Are you all gonna feign surprise when gasoline hits $10+ dollars a gallon?

You should be happy to be have an income, even if it only buys 1/4 of what it could in 1999!

Only a fool would use dollars as a point of measure - And don't be caught holding them when the music stops!

(Oops, you poor foreign devils...)

You see, the bankster tribe will nuke us all if this doesn't go their way...they're doing god's work!

Just ask Hank "Tanks In The Fuckin' Street" Paulson  (the Fourth Horsemen of the Apocalypse)

P.S.  If you're living paycheck-to-paycheck, you better start saving food now, and if you're counting on SSI to buy your food, hope you enjoy the pair of Happy Meals your monthly remittance will be able to purchase...

Sat, 03/05/2011 - 07:02 | 1021695 B9K9
B9K9's picture

Any casual perusal of history clearly indicates that conflicts can be distilled down to the people vs the clan.

If it provides any solace, experience also tells us that the tribe traditionally loses. Sure, they may attempt global war in a last ditch effort to preserve the wonderful slave system they so carefully crafted. But in the end, they are always defeated, and will again this go around.

Ultimately, the question is not whether the system crashes (that's a given), but to what extent the chosen will be purged during the post cathartic period.

Sat, 03/05/2011 - 10:24 | 1021797 Highrev
Highrev's picture

Well said.

Fri, 08/19/2011 - 08:29 | 1576542 mediahuset
mediahuset's picture

I really enjoyed the article. It proved to be very useful to me and I am sure to all the commenters here! It's always nice when you


Sat, 03/05/2011 - 22:58 | 1022825 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

very well said

Fri, 03/04/2011 - 16:26 | 1020065 Spastica Rex
Spastica Rex's picture

Thanks for sharing this. I voluntarily quit my job as a detestable state-level education bureaucrat eight months and have not been counted. And I still can't find ANY job besides substitute teaching!

Sat, 03/05/2011 - 01:04 | 1021498 SheHunter
SheHunter's picture

I'd like to see the stat for those of us who are self-employed and living on less than a third of the income we generated 5 years ago, not eligible for unemployment so foraging work wherever we can.  High fives to others in my position.  Hell- we'll make- too damn tuff not to.

Fri, 03/04/2011 - 17:06 | 1020248 cranky-old-geezer
cranky-old-geezer's picture

What can we do to get everyone who is unemployed to apply for a job so they can be counted in the U3 headline unemployment rate and go on-line and apply for unemployment compensation?

I wasn't aware applying for a job qualifies someone to draw unemployment

Fri, 03/04/2011 - 18:03 | 1020571 Michael
Michael's picture

It doesn't. Applying for a job and applying for unemployment gets you counted in the statistics. They are two separate things you can do to get yourself counted. It doesn't matter if you are able to collect or not.

Fri, 03/04/2011 - 16:06 | 1019984 willien1derland
willien1derland's picture

+1 - I am not surpised that you are surprised because I am very surprised & would expect others to be as surpised as you or I...

Fri, 03/04/2011 - 16:10 | 1019993 jus_lite_reading
jus_lite_reading's picture

Well. Does this mean that the "growth" is not organic? Sigh!

Sat, 03/05/2011 - 00:44 | 1021468 dark pools of soros
dark pools of soros's picture

it means Taco Bell is now rated as gourmet

Fri, 03/04/2011 - 16:43 | 1020133 FreeMoney Bernie
FreeMoney Bernie's picture

I am shocked I tell you. the next thing you know they will find gambling going on in this establishment.

Fri, 03/04/2011 - 18:02 | 1020566 the mad hatter
the mad hatter's picture

I am Jack's total lack of surprise.

Fri, 03/04/2011 - 20:39 | 1021043 faustian bargain
faustian bargain's picture

+1 for thematic relevance.

Sat, 03/05/2011 - 05:36 | 1021659 StychoKiller
StychoKiller's picture

Strange...I'm unusually uncertain as to how to respond to this...

Sat, 03/05/2011 - 12:47 | 1021892 tempo
tempo's picture

The run for the exit will start before June.  However, there is no alternative to QE3++++ with 80% of 2012 budget for entitlements, defense and interest, 46 mm people on food stamps, nearly 20% of workforce underemployed per gallup, tax revenue stagnant due to the elite 1% outsourcing nearly all the good jobs, state muni financing off the table, congress is a joke, housing is collasping again, civil unrest on college campuses, $120/bbl oil, Middle East chaos.  Investing in precious metals, oil, agr commodities is the only answer.

Fri, 03/04/2011 - 15:32 | 1019829 equity_momo
equity_momo's picture

The market , one way or another , will be heading below the March 09 lows by 2015.

Inflation , deflation , stagflation , biflation.   Argue till you are blue in the face , i shall start bottom picking with a 4 handle on the S+P.

Fri, 03/04/2011 - 15:37 | 1019850 rubearish10
rubearish10's picture

You could do that providing you have convertible currency such as,,,,you know...

Fri, 03/04/2011 - 15:33 | 1019833 pirea
pirea's picture

That's why QE is not going to end ever

Fri, 03/04/2011 - 15:36 | 1019856 Pladizow
Pladizow's picture

Cold Tukey - No, but could they slowly unwind, gradually reducing the "prop up".

Like a baby from the teet or a heroin addict from the needle.

Fri, 03/04/2011 - 15:45 | 1019891 Sean7k
Sean7k's picture

I would suggest no. Looking at the chart, the previous highs were reached without using the FED balance sheet. This indicates that the QE is not flowing into the economy to be used and abused, but it is being used by banks exclusively to recapitalise. 

Any drop in QE and the banks leave the trading floor. This is a great chart. Kudos Dylan and Tyler.

Fri, 03/04/2011 - 16:11 | 1019970 It is a bargin ...
It is a bargin my friend's picture


Fri, 03/04/2011 - 16:28 | 1020062 hambone
hambone's picture

Fed can't stop as their printing is the only mechanism to soak up the now annual $5T in T's (w/out a massive interest rate spike).  However, Fed can't kickoff QE3 now w/ oil above $100, ags, PM's all screaming.  So there must be an interim market drubbing and uptick in unemployment (BLS just reports the truth for a couple months)...and then when Merican's are getting scared again and asking the politicians to do something, voila - QE3.

Fri, 03/04/2011 - 19:08 | 1020766 MarkD
MarkD's picture

Pladizow....would you please change your avitar....... takes me forever to read your comments...... keep having to start over and over and over.

Sat, 03/05/2011 - 03:16 | 1021603 10kby2k
10kby2k's picture

pladizow learned from banzai that people only look at the pics

Sat, 03/05/2011 - 05:40 | 1021666 StychoKiller
StychoKiller's picture

Judging by your avatar, you're goin' blind doin' that!  (filthy monkey!) :>D

Sat, 03/05/2011 - 00:48 | 1021473 dark pools of soros
dark pools of soros's picture

they'll go the other way..  say June is the cutoff but then drop it all in April and be long gone by May

Fri, 03/04/2011 - 22:11 | 1021203 FilthyLucre
FilthyLucre's picture

>That's why QE is not going to end ever


Never end? And I always thought unsustainable processes inevitably ended. Maybe this time is it different! Nah. History always rhymes.

Fri, 03/04/2011 - 15:34 | 1019841 Gen X Gen Y Hybrid
Gen X Gen Y Hybrid's picture

I'm surprised there hasn't been more said about the "Friday" effect for Silver/Gold.

Go back and see during this run from last summer and just about every Friday (even with job reports) has had strong surges in the metals.

Interesting how the Fed release is on Thursday at 4:30pm.

Fri, 03/04/2011 - 15:47 | 1019906 pirea
pirea's picture

usually big shit happens over the week-end

Fri, 03/04/2011 - 20:10 | 1020966 duncecap rack
duncecap rack's picture

I was just tuning into this. I had a vague hunch that because it was friday there might be a move but I hadn't researched it. I will now.

Fri, 03/04/2011 - 15:34 | 1019842 rubearish10
rubearish10's picture

Is this gross 1:1 correlation event truly historically exclusive? 

Fri, 03/04/2011 - 15:35 | 1019846 Matto
Matto's picture



It is time for Zerohedge to move beyond the financial blogoshere. It is time to enact Project Mayhem. 

Our homework this week is to re-educate the masses by submitting a brief explanation of the effects of Fractional Reserve Banking to the comments section of 2 popular non-financial blogs, any blogs so long as they are non-financial & mainstream popular.

Example to cut and paste if required:


It's time to end Debt-Money! 

Through a process known as Fractional Reserve Banking, private banks get the right to create our money out of nothing in the form of debt. This debt-money they lend out to the public as loans and the cost of which is born through-out our society.

 When banks create this money they loan it out at interest, meaning that while they created it out of nothing we trade our labour and time for other peoples 'loan-tickets/debt money' to repay them. And as it is loaned at interest, it requires more debt money to be created to make the additional interest portion. As such we are locked into an ever increasing debt trap, beholden to the banks for the very money we need to pay them back while the banks profit from the fruits of our labour in the repayment of interest on make-believe money. For everyone who saves a dollar, another person must be a dollar further in debt.

More information is available through:

Money as debt:

If all bank loans were paid...there would not be a dollar of coin or currency in circulation. Someone has to borrow every dollar we have in circulation. We are absolutely without a permanent money system.

Robert A. Hemphill Atlanta Federal Reserve Bank

 Banks lend by creating credit. They create the means of payment out of nothing

Ralph M Hawtrey, Secretary of the Treasury, UK


Fri, 03/04/2011 - 15:41 | 1019874 falak pema
falak pema's picture

what is project mayhem? can you justify such a travesty of language?

Fri, 03/04/2011 - 15:56 | 1019949 Clockwork Orange
Clockwork Orange's picture

If your question is serious, you need to watch "Fight Club".  There, you will find your answers.

Fri, 03/04/2011 - 16:24 | 1020060 Rylie
Rylie's picture

First Rule of Project Mayhem: You do not ask questions.

2. Second Rule of Project Mayhem: You DO NOT ask questions

Fri, 03/04/2011 - 16:46 | 1020146 Cui Bono
Cui Bono's picture

Is under control sir...... Industrial song.....

Fri, 03/04/2011 - 16:57 | 1020193 falak pema
falak pema's picture

Sorry, but I found it too cynical...I flipped out after fifteen minutes. May be wrong as I never saw it thru.

Fri, 03/04/2011 - 18:48 | 1020700 Guy Fawkes Mulder
Guy Fawkes Mulder's picture


Sat, 03/05/2011 - 00:52 | 1021481 dark pools of soros
dark pools of soros's picture

here, this might be more your style



Sat, 03/05/2011 - 03:24 | 1021604 10kby2k
10kby2k's picture

project mayhem---> living within a balanced budget

Fri, 03/04/2011 - 15:58 | 1019878 plocequ1
Fri, 03/04/2011 - 17:11 | 1020273 steve from virginia
Fri, 03/04/2011 - 16:05 | 1019882 Pladizow
Pladizow's picture

To: Matto

Your cut and paste letter and link to the video "Money as Debt" are both somewhat flawed.


Fri, 03/04/2011 - 16:06 | 1019980 ronin12
ronin12's picture

+1 - thanks for the link.

Fri, 03/04/2011 - 16:12 | 1020007 Matto
Matto's picture

Plad - good link, technically you are right, the interest can be earned by the bank and respent into the economy to be re-earned as interest for someone else. that would require 100% of interest to be expensed i believe to function correctly. In practice my understanding is that the interest re-spent isn't enough to keep up with the debt expansion. I heed your point but believe its more one of theory than the reality we face of debt expanding faster than money is created. 


I will look into it more as soon as I get a chance.

Fri, 03/04/2011 - 16:15 | 1020011 Matto
Matto's picture

ps. The piece I wrote is just an example, by all means write a new one!!

Fri, 03/04/2011 - 15:53 | 1019927 Ray1968
Ray1968's picture

You don't talk about Project Mayhem

Sat, 03/05/2011 - 03:26 | 1021608 10kby2k
10kby2k's picture

you either

Fri, 03/04/2011 - 17:17 | 1020325 cranky-old-geezer
cranky-old-geezer's picture

When explaining money created out of thin air to the masses, leave out the debt aspect, it confuses the issue. 

Just say the Fed is creating / printing gajillions of dollars out of thin air, severely diluting the value of the dollar, why prices are rising.


Fri, 03/04/2011 - 19:34 | 1020858 Michael
Michael's picture

"Project BLS Mayhem" bitches.

Fri, 03/04/2011 - 15:35 | 1019847 Jason T
Jason T's picture

"..first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. "

am heeding Jeffersons warning.. Ben will stop the presses, we'll get massive deflation and default everything to the banksters.  They win.  

Fri, 03/04/2011 - 15:43 | 1019879 LawsofPhysics
LawsofPhysics's picture

Maybe, but possession will remain 9/10 ths of the law.

Fri, 03/04/2011 - 23:34 | 1021348 razorthin
razorthin's picture

It's 10/10 ths in my armory.

Fri, 03/04/2011 - 15:48 | 1019902 Pladizow
Pladizow's picture

To: Jason T

"..first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. "

After a little research, I found that there is no proof that Thomas Jefferson ever said this.

Fri, 03/04/2011 - 16:00 | 1019960 falak pema
falak pema's picture

He was probably drinking Muscat wine, his favorite.

Fri, 03/04/2011 - 17:28 | 1020388 reader2010
reader2010's picture

He said it while he was banging one of his favorite girl slaves.

Fri, 03/04/2011 - 17:35 | 1020431 akak
akak's picture

Are you saying that he had favorite boy slaves TOO?


(Not that there's anything wrong with that!)

Fri, 03/04/2011 - 16:38 | 1020112 Buzz Hacksaw
Buzz Hacksaw's picture

They win. Game over. Pay them what they are owed. THIN AIR!

Fri, 03/04/2011 - 15:36 | 1019849 tmosley
tmosley's picture

It should come as a surprise, but to some it does.

Primarily, three dumb bastards on ZH.

Fri, 03/04/2011 - 15:40 | 1019868 Dr. Porkchop
Dr. Porkchop's picture

But one of the bastards is promising and end to QE and a crash in gold! I'm still waiting for the info on where the miraculous healthy economy comes from to fill the giant sucking hole that QE would leave.

Fri, 03/04/2011 - 15:51 | 1019926 LawsofPhysics
LawsofPhysics's picture

Where is Hamy anyway?  You never see him or Tyler in the same room.

Fri, 03/04/2011 - 18:50 | 1020720 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

One night Harry started methodically junking every post comment Tyler ever made.

He was never seen from again, in real life.

Hamy on the other hand... is ready to give you surprise sex any time you turn your back.

disclaimer: </silly>

Fri, 03/04/2011 - 17:37 | 1020447 akak
akak's picture

Spalding_Smailes, WilliamtheBastard, and MathMan:  The Three Blind Trolls.

Sat, 03/05/2011 - 05:45 | 1021669 StychoKiller
StychoKiller's picture

After today's rise in Ag, any remaining credibility they had has slipped quietly beneath the waves...

Fri, 03/04/2011 - 15:38 | 1019858 Sudden Debt
Sudden Debt's picture

QE 3 and 4 will pass and QE5 will be the talk of the town.



Fri, 03/04/2011 - 16:06 | 1019982 Pladizow
Pladizow's picture

You down with QE3, Yeh you know me!

Fri, 03/04/2011 - 16:37 | 1020115 NotApplicable
NotApplicable's picture

Who's down with QE? Every last homey.

Sat, 03/05/2011 - 02:11 | 1021560 Mark Beck
Mark Beck's picture

If you really believe the USD will be worthless in two years, then beyond converting (buying) assets of real worth (commodities), you should consider delaying payment of any large tax payments. Unless you are a very big fish, the IRS is backlogged by about two years on even the most basic withholding errors. The IRS would need to reevaluate the priority of audits with a collapse in USD real worth.

So is there a risk of a mini tax revolt for those in the know?

If there is a devaluation of the USD then one must consider the present value of future tax outlays. Delay tax payments as long as possible, and then negotiate a payment plan. By the end, conversion of taxible income up front would then leverage down your tax bill, even if interest is applied.

But in a hyper-inflationary trend we must consider the impact on effective (offsetting) taxation. How do you tax when the currency is losing value in real time and is exposed to potential re-valuations against dilution away from dominant reserve currency status.

Looking at a sequence of inflationary (QE) events, taxation (income tax) as a source of revenue is comparitively static when compared to USD accute debasement. It is this imbalance which amplifies the loss in buying power.

Mark Beck

Fri, 03/04/2011 - 15:42 | 1019866 depression
depression's picture

"CBO projects a federal budget deficit of $1.5 trillion in fiscal year 2011 year and $1.1 trillion for fiscal year 2012, with much of the improvement in the latter year owing to the lapsing of spending related to the 2009 stimulus package.

At the federal level, Social Security and Medicare face unfunded obligations of $66 trillion. Moreover, state and local governments also face substantial unfunded pension obligations.

Shortly after the Borrowing Committee last met, the FOMC instituted a $600 billion asset purchase program. Since then, Fed rhetoric has continued to emphasize that both employment and inflation are below levels consistent with their monetary policy mandate. This has reinforced market expectations that the Fed will follow through on the entire $600 billion plan, currently scheduled to be completed in June. At the same time, sharp public criticisms of asset purchases, as well as an improving economy, have both contributed to expectations that no further purchases will be instituted after the present program is completed."

Report to the Secretary of the Treasury from the Treasury Borrowing Advisory Committee

Fri, 03/04/2011 - 15:49 | 1019908 Sean7k
Sean7k's picture


Fri, 03/04/2011 - 16:22 | 1020047 prophet_banker
prophet_banker's picture

reality speaking: it's not like QE is their only method to expand the money supply....just saying

Fri, 03/04/2011 - 17:25 | 1020377 cranky-old-geezer
cranky-old-geezer's picture


TARP and QE are publicly announced programs.

Who knows how many gajillion FRNs have been created and given out behind the scenes out of public view.

Sat, 04/23/2011 - 15:35 | 1199538 Carl
Carl's picture

There are about $950 Billion FRNs currently in circulation.  All the rest are figments of everyone's imaginations.


You think that just because your debit card still works you've got money?

Sat, 03/05/2011 - 03:28 | 1021610 10kby2k
10kby2k's picture

you believe that shit (i heard it, too) its a manifestation of hopium

Fri, 03/04/2011 - 15:40 | 1019867 JimRogers
JimRogers's picture



Fri, 03/04/2011 - 15:41 | 1019872 Dr. Porkchop
Dr. Porkchop's picture

Are we approaching the end of history?

Fri, 03/04/2011 - 15:46 | 1019895 falak pema
falak pema's picture

Are you Fukuyama...? he thought so back then. Before Hungtington torpedoed him!

Fri, 03/04/2011 - 15:48 | 1019909 Sudden Debt
Sudden Debt's picture

I think the beginning of a new era.

But it will take a decade for people to really care and stop putting it all up.

Younger people, student, will need to make themselves heard before there is a chance of change. But it won't be this generation, it will be the next. The current is brain death.


Fri, 03/04/2011 - 16:51 | 1020165 gmrpeabody
gmrpeabody's picture

From what I've seen, the next generation is also brain dead. We will have to reorganize public education before any real progress with healthy brains is accomplished.

Fri, 03/04/2011 - 18:35 | 1020685 johnnynaps
johnnynaps's picture

It's going to get worse with the decline in mommy and daddy's paycheck plus inflation. They will have to work a 5th job to get by, and junior will have to do without mom and dad. Maybe, when he is caught drug dealing he can go to prison and cost us taxpayers an extra 35k dollars a year. Dumb laws are also killing this country's ability to fix "deficits".

Fri, 03/04/2011 - 21:05 | 1021088 dexter_morgan
dexter_morgan's picture

I'd be willing to bet a shiny nickel more college age kids know who the evil twins of Walker/Koch are than know about the ass clowns running the Fed and Wall Street. Prolly believe Bernancke a hero, if they have even heard of him.

Sat, 03/05/2011 - 03:38 | 1021611 10kby2k
10kby2k's picture

My kid is in college and does survival trips living off what he can carry--might come in handy.  If I showed him a pic of bernanke.....he probably would reply  "he's that banker guy" 

Fri, 03/04/2011 - 17:41 | 1020464 Yen Cross
Yen Cross's picture

Not quite yet, but on a lighter point. Gardening would be a lot easier. Cheap fertilizer. Crap gotta call and sell my POTash.

Sat, 03/05/2011 - 05:09 | 1021647 Rodent Freikorps
Rodent Freikorps's picture

Rigging up a steam powered wood chipper might be useful for after The Fall.

Fri, 03/04/2011 - 15:42 | 1019873 Oh regional Indian
Oh regional Indian's picture

And we all fall down together.

Communism, shommunism. Labels. The state is now the owner.



Fri, 03/04/2011 - 15:44 | 1019885 Cvillian
Cvillian's picture

Can we squeeze charts of iPads, video porn, guns and mason jar sales in there too?

Fri, 03/04/2011 - 15:44 | 1019892 The Axe
The Axe's picture

GM---General Shitmotors logged a new 52 week low today of whole dollar below Geico's syndicate bid....must be because dealers have to park their inventory on the roof of their dealership to make room for more Chevy Volts...that Car and Driver just test drove in Conn. during the recent cold snap( discovery--batteries drop there charge quicker then shit--cutting fuel milage in half)

Fri, 03/04/2011 - 16:41 | 1020128 NotApplicable
NotApplicable's picture

Oh, snap!

Fri, 03/04/2011 - 21:35 | 1021145 earnyermoney
earnyermoney's picture

CR hot off the press. Ranking of 2011 manufactures has Fysler and Government Motors sucking everyone's exhaust.

Sat, 03/05/2011 - 00:35 | 1021371 born2bmild
born2bmild's picture

The Volt was the laughing stock of the electric car world before the first one hit the dealership. It's amazing how high profile alternative energy projects that suck are, ethanol is another example. I can't tell where the hyping a technology that can't sell itself ends and the undermining of an entire school of thought (sustainability) begins.  Energy is as fucked as the banking. I was doing some reading about Nathan Stubblefield - an early pioneer of telegraphy. When the duh moment hit, DC can't really travel more than 10 miles-how did the telegraph get coast to coast? If you drive two electrodes into the earth one copper and one zinc you get low voltage from the potential difference and the earth! I took the multi meter out to the park and picked up 2+ volts the first try (try it yourself). There are super simple step up circuits you can make that can give you ~10v (or more!) from that much supply voltage: the joule thief:

Here's a proof of concept vid:

We don't even need macro wind or solar (in most applications). Why isn't this common knowledge? The most expensive part of this project is the $5 multimeter.

Oh yeah, Stubblefield was greeted warmly with his new technology, he literally starved to death after the shunning he received.

I wish folks talked more about this kind of info than what kind of gun or ammo they like. Of course the shit is going to hit the fan and we know who's hurling it but there are plenty of other positive developments to be explored. How warmly would you be received if when you bug out - you brought this kind of info (especially overseas)?





Sat, 03/05/2011 - 00:37 | 1021453 Eally Ucked
Eally Ucked's picture

And when you applied load to that circuit what was the voltage?

Sat, 03/05/2011 - 01:59 | 1021488 born2bmild
born2bmild's picture

I haven't yet, but the technology is well documented and there are working examples around the globe, youtube is a good source for checking it out. The projects range from dead simple to fairly complicated with higher outputs. I've yet to read a bad review of the technology. From my reading the biggest hitch is that it doesn't like bone dry soil, I did it in sand and it worked too, apparently there is a variation called a sea battery... I'm just starting out with it, there are a lot of more qualified folks to talk with about this. Everytime I've pm'ed a tinkerer from youtube I've gotten a response and was once startled to find out it was a popular science author writing me back. Most folks are actually pretty helpful. Let us know how it goes for you.

I just reread your question, I don't know if you were talking about the joule thief or the earth battery. I have built some JT's, I would start out with less than a volt and got it up to nearly 10 (driving leds), I think you can buy joule thief's prefab from China now and I know that you can get any kind of prewound toroids to spec'. Speaking of that (coils), if you choose to wrap one yourself, you wrap two wires around the coil simultaneously. If you cross the wires while you are doing it - the coil won't work.

Here's an even simpler step up circuit with no windings:

There are prefab JT's online, I can't vouch for any of them, the ones that state output usually say triple input but the coils don't look they have many windings either.


Sat, 03/05/2011 - 11:12 | 1021833 New_Meat
New_Meat's picture

b2bm-where ya gonna get them electrodes when they rot away?  And great question above about loading the circuit.  You oughtta try it b4 u claim it as a "great technology."

- Ned

Sat, 03/05/2011 - 13:11 | 1021895 born2bmild
born2bmild's picture

Copper doesn't rust or rot and neither does hot dipped galvanized (aka zinc), there is a list of materials on the earth battery link, many of the electrodes don't rust or rot. The tech' worked for the telegraph, been working for awhile now. Nothing's perfect, we accept many forms of solar work only during the day or when sunny, wind works when it's windy etc. Apparently one of the drawbacks here is that one of  electrodes often has to be moved a foot or so once every several months. I wouldn't want to send you down the wrong path, it might cost you $10 and you might learn something on the way. I'll get back to you when I've done all of the work for you (I feel like I already have). Fuck, your welcome.

Sat, 03/05/2011 - 14:52 | 1022132 New_Meat
New_Meat's picture

back to the drawin' board for ya.  Look up what "cathodic protection is."  Happens all the time in industrial plants.  Potential differrence across the plant screws up grounding and instrumentation.  But V**2/R ain't for shit.

- Ned

Sat, 03/05/2011 - 14:11 | 1022046 Cull Morgan
Cull Morgan's picture

Do you really believe that the energy generated by the "earth battery" comes from the earth?!?

The energy comes from the zinc metal being converted into some zinc chemical compound (like a zinc salt). All you're doing is recovering some fraction of the energy that was used to convert zinc ore into zinc metal.

So if you're planning on powering your doomstead with "earth batteries", bring truck loads of zinc, in metal form.

Sat, 03/05/2011 - 14:56 | 1022140 New_Meat
New_Meat's picture

+0.758 e.g.:

[ed. Yes, he really believes!]

Sat, 03/05/2011 - 12:04 | 1021871 Hulk
Hulk's picture

Not enough to tickle a flea's testicles...

Sat, 03/05/2011 - 12:21 | 1021877 cosmictrainwreck
cosmictrainwreck's picture

sorry, Hulk, I'm gonna steal that line [but I will credit the source] +10

Sat, 03/05/2011 - 12:52 | 1021897 born2bmild
born2bmild's picture

I damn sure make some mistakes but there is a lot of documentation online about this, IT WORKED FOR THE TELEGRAPH.

Sat, 03/05/2011 - 13:39 | 1021969 Hulk
Hulk's picture

you need to do the experiment, which I implore you to do. Make those circuits and try and power anything at all in your house. Report back to us on the results of your experiment...

You will learn a ton by doing this experiment.I'll even start you off. Any step up in voltage ALWAYS results in a loss of power...

Sat, 03/05/2011 - 13:18 | 1021914 born2bmild
born2bmild's picture

In the vid' there is NO step up circuit, there's more power available than that.

On of the reasons earth batteries weren't settled on as the final tech for telegraphs (so it is claimed) is inconsistent readings from place to place, never less than a volt but sometimes as high as 18, it definitely works though.

Sat, 03/05/2011 - 05:50 | 1021675 StychoKiller
StychoKiller's picture

So, my plan to extend the life of my AA's by putting them in the fridge is bogus?!  Oh, the Humanity! </sarc>

Fri, 03/04/2011 - 15:48 | 1019905 Milton Waddams
Milton Waddams's picture

"Yeah, I'm in this bitch with the terror
Gotta handful of stacks, better grab an umbrella
I make it rain, I make it rain
I'm in this bitch with the terror
Gotta handful of stacks, better grab an umbrella
I make it rain, I make it rain, make it rain on them hoes"

(quote thought to be attributable to one Ben Bernanke)

Fri, 03/04/2011 - 15:50 | 1019916 RmcAZ
RmcAZ's picture

You can throw food stamps on that graph too...

Fri, 03/04/2011 - 16:43 | 1020136 NotApplicable
NotApplicable's picture


Sat, 03/05/2011 - 05:23 | 1021652 Rodent Freikorps
Rodent Freikorps's picture

Good catch. I wonder what all will go into the next Misery Index.

Sat, 03/05/2011 - 11:16 | 1021835 New_Meat
New_Meat's picture


"...the next Misery Index."

Did you really have to come up with that bad old nightmare?

- Ned

Fri, 03/04/2011 - 15:57 | 1019938 Clockwork Orange
Clockwork Orange's picture


Fri, 03/04/2011 - 15:55 | 1019941 falak pema
falak pema's picture

The FED's balance sheet is the same as that of the last of the great Komnenos : Manuel the magnificent, who lost the Greek Empire to the forces of change. Myriokephalon, in 1176 and what followed by his own incestuous clan of degenerates who declared project MAYHEM in Constantinople.

Fri, 03/04/2011 - 15:57 | 1019945 Math Man
Math Man's picture

In other words, QE did exactly what it was designed to -- stem off deflationary pressures and reinflate asset prices.


Fri, 03/04/2011 - 16:02 | 1019972 Harmonious_Diss...
Harmonious_Dissonance's picture

How's your top 40 doing there, Meth?

Fri, 03/04/2011 - 16:14 | 1019999 lieutenantjohnchard
lieutenantjohnchard's picture

he and the boys are bored at work. it's late friday afternoon, and he's tired of power dialing his cold calls. so he thought he'd stir up the zh crowd, for a few gits and shiggles. he's shooting for 20 junks, responses and/or combos.

i gave him a junk and a response for the effort. basically, throwing the guy a bone.

Fri, 03/04/2011 - 16:17 | 1020025 Harmonious_Diss...
Harmonious_Dissonance's picture

Good show! I'm glad he is making the attempt. He mimics what I hear from various people in life, mmmmm good cool-aide!

Fri, 03/04/2011 - 16:27 | 1020074 Dr. Porkchop
Dr. Porkchop's picture

Funny, I thought it was designed to polish a turd.

Fri, 03/04/2011 - 16:34 | 1020092 akak
akak's picture

Get back to work MethMan!

You know how easily those red-hot presses overheat while cranking out all of those Bermonkey funbux unless they are continually doused with the blood of the working stiff!

Fri, 03/04/2011 - 16:56 | 1020188 Atomizer
Atomizer's picture

Get back to work. That $1.1 billion in $100 dollar notes need to be throughly inspected.


Fri, 03/04/2011 - 17:00 | 1020207 Atomizer
Atomizer's picture


Fri, 03/04/2011 - 17:30 | 1020411 Al Gorerhythm
Al Gorerhythm's picture

Meth boy opens his locker, removes his McDonalds uniform, only to expose his signed photo of Ben Bernanke, the one that captures his bored disdain whilst fielding questions from Congressional overseers.

Fri, 03/04/2011 - 18:42 | 1020705 johnnynaps
johnnynaps's picture

Could you imagine austerity and QE together? Shit, we would be better off in Greece!!!

Fri, 03/04/2011 - 16:00 | 1019962 TimmyM
TimmyM's picture

In the year 2025...

Fri, 03/04/2011 - 16:00 | 1019966 gwar5
gwar5's picture


Fri, 03/04/2011 - 16:45 | 1020143 slewie the pi-rat
slewie the pi-rat's picture

yo!  timmahW

projecting the FED's Balance Sheet forward to 2025, we find that the FED has been out of business for 14 years.

now, the short tyleresque piece, here, mentions JUNE 30th as a date for the ample woman to step to the mic and warble her black swan song.

i think blythe will still be hauling in the miraculous silver fish she is trapping, even now...

i figure after Labor Day, myself...

or maybe some monday which is neither before nor after Labor Day.

who knows?

YouTube - Al Green - take Me To The River (1999)

Sat, 03/05/2011 - 05:38 | 1021662 Rodent Freikorps
Rodent Freikorps's picture

It is 2525, just saying.

If anyone wants to hear the song:

Of course, if we do not get off this planet, someday a big rock will come along and kill us all anyway.

Sat, 03/05/2011 - 05:52 | 1021676 StychoKiller
StychoKiller's picture

Dinosaurs 0, big rock 1

Humans 0, big rock 1

I'm sensing some sort of pattern in the planet(s) I inhabit...

Sat, 03/05/2011 - 06:48 | 1021694 Rodent Freikorps
Rodent Freikorps's picture

The worst thing you can do for humanity is to convince leaders there is no God, and they have no souls.

In that case, the world lasting only one day after they die, is a win.

Fri, 03/04/2011 - 16:01 | 1019968 AccreditedEYE
AccreditedEYE's picture

Here comes the hockey stick save... everyone ready?

Fri, 03/04/2011 - 16:03 | 1019973 reader2010
reader2010's picture

How much was the total on the Tier-3 assets right before the collapse in 2008? How much has Bernanke printed so far? Are we in the inflation camp or defaltion camp?

Fri, 03/04/2011 - 16:06 | 1019978 gwar5
gwar5's picture

That's a scary chart.

The necronomy is fine!

Fri, 03/04/2011 - 16:07 | 1019986 ronin12
ronin12's picture

It's a good thing we have free markets here in the US.


Fri, 03/04/2011 - 16:09 | 1019991 proLiberty
proLiberty's picture

A 'crack-up boom' as von Mises called it in Human Action, chapter17



Fri, 03/04/2011 - 16:09 | 1019992 socalbeach
socalbeach's picture

If there is a 1:1 correlation between the Fed's balance sheet and the S&P, then if the Fed ends QE, but doesn't undo what's been done, shouldn't the S&P just level off?

Fri, 03/04/2011 - 16:11 | 1019996 Misean
Misean's picture

Yes, we've entered a permanently high plateau.

Fri, 03/04/2011 - 17:56 | 1020548 Monday1929
Monday1929's picture


Fri, 03/04/2011 - 16:35 | 1020102 packman
packman's picture

If there is a 1:1 correlation between the Fed's balance sheet and the S&P, then if the Fed ends QE, but doesn't undo what's been done, shouldn't the S&P just level off?

No, because of maturation of the securities (in part).  Also the 1:1 correlation refers more to timeframe, not absolute value.  It requires at least some growth of the Fed's balance sheet to even keep the S&P flat.

Note what happened in the period between when QE1 ended (April 2010) and QE2 was hinted (End of August 2010) - the S&P went down from 1200 to 1050.


Fri, 03/04/2011 - 16:52 | 1020166 NotApplicable
NotApplicable's picture

Only if nobody decides to sell in order to lock in profits.

Which, given the fuel this fire has had, I'd say a race for the exits is in order.

Then again, at this point only the dumbest money is still playing, so who knows?

Fri, 03/04/2011 - 19:36 | 1020864 Yen Cross
Yen Cross's picture

Oh Snap!!!

Fri, 03/04/2011 - 16:10 | 1019995 kentfinance
kentfinance's picture

errr......................Silver? 4 days into delivery and its still bid

Fri, 03/04/2011 - 17:46 | 1020442 Al Gorerhythm
Al Gorerhythm's picture

See Meth Boy. There are tons of silver available just for the asking. 1000 oz bars just littering the place. Meth Boy has been offered a job by the Canadian Mint, as Yard Man to pick them up.

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