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Futures charts; June 3rd
The Gods are laughing at the impotency of Central Banks worldwide; BP could potentially be named the "first sign of the apocalypse" and the rest of the World is not in good shape either. Enclaves of reason and intelligence are small, and there is only so much of them. The lunatics which chair corporations, committees and other positions of power are reluctant to engage themselves into anything that would disrupt the status quo and put at risk their bonuses and/or their summer homes. So there is nothing smart, witty or humorous to say about any of that. Charts are for monitoring purposes only and do not in any way represent the true nature of things.
Indexes
Energy
Metals
Agricultural commodities
Bonds
Currencies
And for tonight's "entertainment" [in addition to the usual "Dog and Pony Show" in form of Fed's futures buying and SNB EUR manipulation] we offer you the following:
Maxim Vengerov; Czardas
Vladimir Horowitz; Polonaise Op. 53 in A flat major
Luciano Pavarotti; Nessun Dorma; Los Angeles 1994
And as per usual a few words from our in-house poet Charles Bukowski
"there is a loneliness in this world so great
that you can see it in the slow movement of
the hands of a clock.people so tired
mutilated
either by love or no love.people just are not good to each other
one on one.the rich are not good to the rich
the poor are not good to the poor.we are afraid.
our educational system tells us
that we can all be
big-ass winners.it hasn't told us
about the gutters
or the suicides.or the terror of one person
aching in one place
aloneuntouched
unspoken towatering a plant."
With that I wish you safe trading and good night.
»
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My nomination for understatement of the year. Classic.
completely off-topic / open thread:
for a really cool world cup schedule/results thingy:
http://www.marca.com/deporte/futbol/mundial/sudafrica-2010/calendario-en...
The first two pieces beautiful, the final aria, divine
†
Cheeky, I hope that you and Mr Lennon H will be attending the gold at $50,000 / oz party that Gordon_Gekko and I have agreed on? The list is getting longer... Where would we meet? Hmm, maybe St. Louis?
(fofoa.blogspot.com predicts $55,000 / oz).
Hulk asked if we could have a drink at $1500. I said yes, but only 1 virtual drink. Party would really be great at $50k.
Disclosure: society has to be functioning and you have to be a gold bull at ZH.
I predicted 100k if the derivative market [gold derivative market] goes bust.
Then, imma pick you guys up with my G550 and we will buy St. Louis.
Count me in if there hasn't been a knock on the door.
Function is relative.
I will be there, drink in hand ;)
cheeky thanks for charts,,, poem appropriate for the occasion
carry on
classy cheeky, i love what you've done with the place :D
sooooo
you and cheeky go down with classic music on the weekends, nice.
nothing more i am sure?
JUNKED fuck you people, i am real here
Someone is jealous of our ZH fairy. Please ignore the fools, until they make for good poems.
Have fun In Colorado, but seriously - wear a rubber. Or two.
N E V E R
frank, oh is that you again†
Wow...open thread, time to grip it and rip it...
I really get pissed off about psuedo-fascists who get their panties in a knot over illegal immigration.
The solution is very simple, tried and tested. There is no illegal immigrant problem in Canada. Why?
The penalties for illegally employing people outweighs any gain. Here in the U.S., if I can save $25,000 with the risk of being fined $10,000, I will do it every which way to Sunday.
Adopt a three strikes or you go to Jail for employers...
The problem is that the American business model relies on exploitation of the system...
Flak
no panties in a bunch,
irritating†
wow, a response... not exactly what I had in mind, but I will take it.
Pontificators can't be choosers, or some such
Flak
Oh yea, almost forgot...
Gold Bitches, eh!
Plan B: A Controlled Demolition
There are two plans. A and B. A is inflation big time with a side of Hollywood Futures Index with a slab of facebook ipo. B is somewhat different. In B they try to collapse the EUro, Yen, and Pound before the doelarr fails. One reason B is looking likely is the fact that Cameron was placed in 10 Downing and Kan might take over as PM in Japan; both are fiscally conservative. Yes This is a dog and pony show, however long they are able to play the game. Question; who knows what they are doing? Wait, more importantly, 'Who thinks they know what they are doing?'
Summers for sure sakes thinks he knows what he is doing. He did the math a few decades back in his Ivy league days that "proved" he knew what he was doing. For another example we have Ben Bernanke. BS went through the system, he did well, and now he is at the top of the pops, dictating the scripture as he goes. Larry Summers was thought capable of winning a Nobel, and the fact he didn't always upset him, as he expected to. BS wrote the gospel on micro-economics; a simplistic message through awkward assumptions; what is a "rational consumer"?
So what is importantwith these guys? Well that we let them be important in the first place! Right- because they do not know what they are doing means it is up to us to tell them off. Once we all understand BS' economica is off kilter, then we can move to oust him and his Keynsian Nightmare he rode in on. Summers' data must be equally as flawed, as it includes a cornicopia of unicorns and a ready supply of cheap, migrant oomploompas!
So now that we know that we know that they don't know what they are doing, let us conclude that whatever they are trying to accomplish (their plans) will not happen. Lowering unemployment by having low interest rates will not happen when all the jobs have been shipped over seas, and many of the ones in the other secters were not only unnessarary, but unsustainable from the start. Stimulating growth with low interest rates will not happen when cheap energy has peaked, as interest rates have no affecton the production rate of oil. What will thesemeasures the Fed has taken do then?
First thing, the measures the Fed and Treasurie have taken will destroy the currentseas. Never minddepreiciating currentseas to "better imports" - (economic professors everywhere!) - we are talking FIAT value at zero! How will this happen? Well now, that is the question!
Plan B- Kill the Euro now, alongside the Yen and the Pound, thus putting all the weight on the doelarr. Then once the doelarrs status as only FIAT is seen as unfair and unstable, the IMF and World Bank will issue new loans of credit for new world currentseas. The loans for the "credits" will be based off of gold reserves, resources, and "skilled" labor. The contracts will also account for debt, so that debtor states like the US have to pay the loans, and reciever states like China get paid back; this in part, most likely at the same clip as current assets/deficite ratio. America for example may recieve a rather large loan, but still would pay China back a large amount as well. This would be fine for China, but the US gets the upper hand; China may have wished to increase their REAL level of Treasury holdings after all. These new currentseas will pale in the face of gold; numbers are of no merit. Silver/oz will give their supplier one month of necessities; rent, food, clothing, etc. Gold/oz will give a year of comfortable living. Have the numbers be what you will. Equities will get crushed to a level that gold is. It is very possible that we see these Wango-Fandango 11-10k dance until gold is up at $10,000/oz. It is also possible that the Dow moves to 5000, or even 2500. It all depends on which plan they choose, and that all depends on the Hollywood Futures Index.
Call it what you will but what else will the next bubble be? We live in a bubble economy, so we need a bubble, and barring zero point energy contracts, the only one I see is precious metals- hello girls ;) "Hi Lennon!" - Platinum, Gold, and SIlver. Note the Fed open swaps to liquidate holdings on the day of the HFI's 1st Congressional hearing. Watching the outcomes of these deals will give insight into which way the gator will go; Plan A or B that is. Watching them will be like looking through the keyhole.
Economics in large part deals with numbers. I do not think of it as a science, so I like to question philosophy's role in markets as well. Numbers, unlike the mind, deal with limits, and consumption/production possibilities provies a limit based on price; but who dictates price? The guys running the Treasurie and Fed, thats who! And by the way, what is a price predicated on? While we are at it, what is a number? Thus an arbitrary placeholder from the thoughts of a "rational consumer" generates the market. Great. Now let us consider the fact that the rational consumer is living with no conception of peak oil. How can one make a rational choice in this case, when finite resources is not considered? Finally remember how the complexity of the price structures affect all the other price structures; think butterfly effect if you will.
America hath dwelt in Samsara with the utmost of complacentcy, never questioning its easy access to energy and entertainment; thank you doelarr! In a matter of years we will be on the backside of oil production, and even in the case of a strong economy the price of the US military would be too much for the taxpayer to bear. The cost of energy not only affects the cost of transportation, but for lead and iron and other materials. Peak oil will be nature's VAT tax if you will. Very soon the reality will set in on the world; nothing is static, everything is falling apart.
Americans are then sandwhiched between delusions of FIAT wealth and the cold reality of peak opil, yet they have no idea what the magnitude of cost will be! Even worse, when the pins come out of the FIAT printing press, spilling ink all over the floor of the "temple", the situation becomes only more dire, as the supply of real money in gold, silver, and platinum will crush the debt. Then when commodities are considered, especially food- unless food is organic, it used petro-chems and petro-fertilizers to grow, the costs go through the roof. This will harm the advantage of technology, so we will not be saved by AI; pray for zero-point, or get ready for the ride of your life.
Economics is the half assed science dressed up as the real thing so it can be spun to further growth. It relegates logic to be derived from fallacious assumptions like the rational consumer but also on growth expectations. Peak oil is real, and we are on its platue. This means we are currently experiencing zero growth, and have since '05. Was it a coincidence that real estate crashed the first year that oil production peaked? Equities followed; was it ironic that oil production still had not gone higher? It is not a coincidence; in ordxer to achieve growth, we need cheap energy. This and the money supply production peaked in the early '90's. Yes I am talking about gold/silver/platinum. These metals are stored in bank vaults for a reason; they make great collateral. Peak iron happened a few months back, and this should also be a major concern. The golden investment oppurtunity lies in the fact that oil is still not on its backside of production, it is at its peak. This is the last time to use them big rigs to get the money out of the ground with oil prices remaining like the numbers we have come to know.
So gold should see a rise in price, as economy professors everywhere say, "Why would a price increase in gold matter?" They of course are not drawing the corallary that gold is being the banksasset on reserve is its first loan of recourse. Gold's price has more to do with the whole system than anything else; it is the center of the arch, the fulcrum. Gold is the fundamental soiurce of all money; it is what the Ark was built for. So going forth in this Keynsian Nightmare gold will hold the weight of the economy, however much. This is what it has to do. This has always been its destiny.
Plan B, USTs are bought in the name of the system, and the dumb money goes along for the irde. Smart money of course will go to gold. If the Hollywood Futures is asked to manifest a Hollywood bubble, doelarrs alongside every currentsea find their weigh to the bottom at the same rate. PAper FIAT isonly servicable to fund the ponzi.
Right now the banksters are in a corner. They have a large supply of money on reserve from the bailouts of TARP ONE and TARP TWO (STIMULOUS), and the jobs program for this summer. Depending on the level of fractional reserve lending you want to use, they have inbetween $13 trillion and $26 trillion to work with. Europe and Asia have a similar amount combined. This but they have a low velocity of exchange. This is not ideal, as they want to maximize doelarr production. This means increasing demand, but how to do that? Well either the Hollywood Futures takes care of it, or eopic collapses in the other currentseas do. Once again, Plan A and Plan B. The HFI will give the new money something to chase and thus increase velocity. Of course FIAT is rotten at its core, so this only gives the appearance to work.
One must not forget, there is a huge swath of people who believe (and have sfor awhile) that this Kensyian Nightmare brought a false paradigm of infinite growth into consideration. Rest assured, if considered rightly, the infinite growth paradigm is ridiculous. In order for this nightmare to end, we must sit and think about where we are in our epic journey, and where we want to go.
clubbed to death - Matrix:http://www.youtube.com/watch?v=pFS4zYWxzNA
* Plan B would keep oil cheap vs. the petro-dollar
Dear Mr. LH: A great analysis but I believe it has one flaw: You assume a passive role for the Chinese throughout the Plan B demolition. All of the scam to date has been based on ASSET INFLATION; whether internet stocks or commercial or residential real estate. All that asset inflation has essentially been fed by the FED. Who is going to feed the inflation in gold and silver? You and me? Or perhaps the Chinese?
You are correct in that there will be FIAT currency revulsion. And all of the printed Federale Reservista Notas will be worth their weight in toilet paper. But the question in my mind is what will the Chinese do?
If the Chinese can take over the financial world and their currency can become the world's reserve currency without firing a shot, why wouldn't they do this? Why would they meekly sit by and let the West continue to play its inflationist game?
First, thank you.
"Who is going to feed the inflation in gold and silver? You and me? Or perhaps the Chinese?" I believe that the shorts are fixing the price, putting them half below what they should be in gold's case, and many multiples in the case of silver. I think that once the top blows off on the scheme, the only fungible medium of exchange will be precious metals, and that will mean that demand is infinite. That will "inflate" its price.
"what will the Chinese do?" I outlined the loan payback program I see the IMF and World Bank orginizing. They will be paid back in part, and so will continue to make money from the other states. They also have a decent infrostructure, on no better but no worse than the US' in my mind. Europe wins out in the infrustructure section. Their currentsea will be the best of the Asian continent, so it will recieve the biggest loan in the new Asian currentsea. The Chinese Yuan will have a similar shelflife to the doelarr in Plan A and that plan will last roughly 2 years; in Plan B it lasts 6 months and the Yuan stays pegged to the dollar in fear no one will want it. It either dies or it doesn't in the end, it will matter minimally as the timeframe is hort in either case. A strong Yuan might be able to buy a few hundred more tonnes of gold, maybe less.
In terms of an inflation game, I think China would go full bore into comodities and stock up. No reason not to.
I understand your point. I also believe that China is one huge bubble 'n fraud waiting to be popped. But I am a bit spooked by the alleged couple of trillion in reserves and by their geopolitical ambitions. It feels like they have been a bit on the sidelines in this most recent set of crises but I wonder if they are not waiting for that one exquisite moment to somehow strike.
Insofar as your point about the IMF and the WB is concerned, I apologize in advance if I am not fully absorbing it, but I perceive you are suggesting some new form of SDR and not more "debt" to solve a debt problem a la Greece. Am I correct? Again, apologies, it is getting near my bedtime.
Yes, the SDR would facilitate the loans to establish "credits" or whatever the currentsea is named.
I have thought China is enjoying this last bit of freedom to spend money too. I think they are going along for the ride knowing that they at least will be no worse off than anyone, but not any better. All falls down.
im dumb but this specks volumes
stagnant, not good†
big guys, didn't figure in stagnatism.
D O R M A N T
not good, again.
men don't want dormant, pretty sure of that.
against their gain, if you know what i mean.
everywhere, everything
hard to grasp, but that is the epitome†
A wise man once said to me "The more I learn, the less I know." The humblest of creatures is usually very wise, Velobabe.
Yeah. let's see your tits.
point proven†
men are distracted, quite easily.
ya think us wiser woman don't know this.
possible the only, mind you the O N L Y reason this funking planet stills exists,
cause woman and their damn distractions†
The moon makes you feel the weigh you do.
You feel me, I feel you.
are you proving a point or just throwing around some bait? pretty obvious.
Mr Lennon Hendrix
Interesting that MPAA decided to sue 15k file sharers just about the time Hollywood Futures Index was announced.
One final swig before high noon.
Richard Brautigan for those who crave something different
LOADING MERCURY WITH A PITCHFORK
Loading mercury with a pitchfork
your truck is almost full. The neighbors
take a certain pride in you. They
stand around watching.
http://theautomaticearth.blogspot.com/2010/06/june-2-2010-president-gulf...
June 2 2010: A president, a gulf, a spill, and debt deflation
With pictures charts and graphs.
Great site. Thank you.
ok Gully Foyle
you do the authomatic earth, your ok in my book.
do you really÷
velobabe
ALL GIRLS SHOULD HAVE A POEM
For Valerie
All girls should have a poem
written for them even if
we have to turn this God-damn world
upside down to do it.
New Mexico
March 16, 1969
the funny thing about pain is
if you hold it close enough
it becomes your beating heart.
;)
again going back to men's fingers.
talent. notice none of the men in the top two vids has wedding rings on.
my dad didn't wear one, said for professional reasons only.
hope your not into chamber music, cause that really sucks.
lethargic tonight, nice wine down.
glass, ok a bottle, candle.
s williams O U T , paris says we don't miss your ass†
your probably a lot more mature, than I.
hardly can pronouce these performers name's, a little intimidating, but thats ok.
here to learn, the student has arrived,
maybe just in time to get going with the good stuff, ah!
cheeky, i feel safe in your house, not one junk yet.
ok cheeky L A S T W O R D
swear.
do you see, where the V comes from
sun salutation†
total VVVVVVVVVVVVV
whats the opposite, plough, bingo, houston†
^^^^^^^^^^^^^^^^^^^^^
hope i'm not keepin you up?
let's see a new avatar.
well, i just now read the poem & listened to NESSUN DORMA five times. the poem spoke to my life & the OPERA made me cry. i really appreciate all the work that you did for this posting, it helped me cope with a bad day. most sincerely..........
you are welcomed.
I'm just glad to see that there are still people left who can be moved by this.
Also, ask CD, crying is one of the best therapeutic methods out there.
Music and poetry are powerful tools when it comes to coping with everyday bullshit that attack you.
You be well and be strong.
nonstop hip hop/music and poetry
the conscious kind
http://www.youtube.com/watch?v=7JYtpQDcwKw&feature=related
You be well and strong too.
Thanks cheeky
Vladimir Horowitz; Polonaise Op. 53 rocks.
Poem was very good (full disclosure, I did NOT water my mangoes, orange trees and palms today. But only because it rained.)
thank you very much for the wonderful music, it was the best part of my day & i greatly enjoyed it.
Thanks Cheeky.
Check this version out for an original interpretation of Csardas. Awesome. too bad no video - but the audio is overwhelming enough :-)
http://www.youtube.com/watch?v=gQfsSHunNl0
WTF?
http://www.huffingtonpost.com/2010/06/02/feds-approve-new-gulf-of_n_598199.html
Hahaha, now that's ballsy. If that doesn't wake the Obama drones up, nothing will. Black Bush is just the most recent in a long line of lying, thieving scumdogs.