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Good morning, worker drones: This Week In Mayhem
Good morning, worker drones: This Week In Mayhem
by Project Mayhem
***LUCKY 13 ISSUE!!!
LAST WEEK IN MAYHEM
Economics:
1) Robert Fisk article causes earthquakes, governments deny knowledge
Central bank officials denied knowledge of dollar assasination plot
In a story that set off shock waves throughout the gold bug / Deflationista lemming communities, an unusually credible story appeared in the British newspaper the Independent claiming the Petro-Dollar was soon to be extinct. Gold bugs quickly reacted by celebrating, telling all their friends "Told you so!", and subsequently loading and unloading their firearms in glee. Soon after the initial shock wore off, central bank officials were forced to Deny Deny Deny and the mainstream media reluctantly was forced to cover a story that was not getting much attention.
Now here we stand the day after Columbus day, with gold at record highs at around $1060, perhaps with gold even in stealth backwardation, and we are rapidly approaching that oh-so wonderful October crash window. Exciting times, no doubt. Here is the part where I tell you to dump your crap ETF shares and get real bullion if you want gold hedge exposure to limit currency and counterparty risk.
http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html
2) Zerohedge exclusive: Declassified memos show CB officials had the fear of oil-SDR pricing.
Oh irony of ironies. Just as certain deflationista bloggers wax poetic about how it does not matter what oil is priced in, we receive this little gem, indicating that indeed said central banking cretins found the Petro-dollar critical to confidence in the global fiat system. The United States' gold default in 1971 is finally coming home to roost. Are you positioned for the changes? When this all finally comes crashing down, it will not be the dollar that survives.
Geopolitics:
1) Obama receives Nobel War Prize
Bored Predator Drone Pumps a Few Rounds Into Mountain Goat
Our great fearless leader has won the Nobel War Prize for his efforts to destabilize Pakistan. This puts him up which such luminous past figures such as Henry Kissinger, "that 70s" war criminal and author of US State Department Policy Planning Memo 200, advocating forced dopopulation of multiple third-world countries. How's that Nobel Prize treating you Dr Strangelove... I mean Kissinger... no matter! This award was clearly a mistake -- and works towards our benefit. The elites could not have done a better job jolting several million people awake, in a grand "WTF" moment. Thanks guys! Congratulation on your War Prize Mr President!
"The announcement came as a surprise. Obama's name had not been mentioned among front-runners , and the roomful of reporters in Oslo, Norway, gasped when he was named."
http://joshfulton.blogspot.com/2009/10/obama-wins-nobel-peace-prize-hell_10.html
2) Lisbon Treaty Turmoil As Czechs Demand Opt-Out
[vaclav]
Vaclav Klaus, the anti-EU president of the Czech Republic, today moved to re-open the union's ill-starred Lisbon treaty, stirring exasperation in Brussels, Berlin, and Paris by demanding that Prague be granted exemptions from parts of the reform blueprint.
http://www.guardian.co.uk/world/2009/oct/09/eu-lisbon-treaty-czech-republic
THIS WEEK IN MAYHEM
Economics:
source: cmegroup
Geopolitics:
It is all coming down to gold.
http://financialsense.com/fsu/editorials/willie/2009/1008.html
»
a very good afternoon from sunny downunder , yes! at last , intelligent life on earth!
Project Mayhem,
Gold brushes the face of 1070 this am.
Maybe I'll be the first to type it here on ZH...
Haha...yes you are.
USD taking a beating across the board. CHF/USD approaching parity at 1.0177, USD/CAD at 1.0126, AUD/USD at 0.9139.
http://www.netdania.com/Products/live-streaming-currency-rates-foreign-e...
Click on the second tab "Dollar".
Thanks Mayhem.
You are a wonderful Bricolage artist with the news that matters to us.
Love ya, and thank you PM!
Apocalypse Now-
Check out this excellent John Mauldin article:
Ponzi Finance Deflationary Debt Deleveraging Downward Spiral Continues
http://www.marketoracle.co.uk/Article14179.html
http://www.katu.com/news/local/64059697.html
and PM your weekly feature is indeed a highlight as I peruse the econo and other blogs
thanks for taking the time to create it
+100
Its nice to have an intelligent site to peruse. Learning a lot by everyone's comments.
Yes. Well done Mayhem.
Europe: Many Tongues, One Vagina
With an oligarchy that can't stop fucking chickens.
Mayhem,
I look forward to this column every week. You are a brilliant MFer. Love it!
Great stuff, PM!
PM - The standard in weekly reading. BTW, the developing story of the spinning plates wobbling in CCE is starting to draw a crowd. If I could I would go to Sophia to see the next round live and in color. Have a great week PM and it looks like you will get er done by the 15th. Cheers
http://www.youtube.com/watch?v=zeMZGGQ0ERk
This is THE G. Edward Griffin who wrote The Creature from Jekyll Island? SO AWESOME! and thank you SWRichmond...anyone NOT interested must be those who are shills of the financial/bank machine that runs our country.
kickthemallout.com how awesome, the "fire congress" group!
What a bunch of crap that video is. I just wasted 8 minutes of my life watching it.
"I will gladly pay you on Tuesday for a hamburger today."
http://www.ask.com/bar?q=I+will+gladly+pay+you+on+tuesday+for+a+hamburger+today+&page=1&qsrc=2417&ab=3&u=http%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3DNJ6xBaZ92uA
The nobel prizes will become so worthless in the near future (if they aren't already) that those "roomful of reporters" will be the only people paying any attention to them.
When in the whirl of full decadence, prizes are awarded to the LEAST deserving just a financial rewards are bestowed on the malefactors of the financial meltdown, it all makes sense. Choose the junk stocks, purchase the debt of the greatest debtor, give peace garlands to the chief war monger.
The least are become the greatest. Merit and labor count for nothing. The appearance of things are most important, a shiny tinsel draws greater audience than a collision of galaxies in the heaven.
2010 recipient: Barbara Streisand. You heard it here first.
Nah, that would bring the status of the award up. I'm bearish on the Nobel. Don't you see that downward trend line? I'm shorting justice, cooperation, honor, and integrity. I'm a gonna be a filthy rich bitch, oh yeah.
I thought that the Peace Prize had bottomed with Al Gore. But apparently not.
If there is one contributor post I eagerly await in anticipation, it's yours PM.
Funny, I just got off watching both the X-Files movies.
Nice dollar chart PM, courtesy of el Jackass.
Did you catch his interview w/ Max Keiser?
http://www.blip.tv/file/2704855
PM, Armstrong junkies & fellow tinhats:
just found this site this morning, you might find some of it illuminating as well:
http://urbansurvival.com/week.htm
included this week is a nice discussion of the 64 year cycle of the U.S. currency.
also, looks a lot like the Tower of Babel on the EU poster:
http://en.wikipedia.org/wiki/File:Brueghel-tower-of-babel.jpg
coincidence or not?
Babel - Why yes indeed . Finishing of what began many yarns ago . Re: The Assyrian - Winston Busch - a very deep read . Put on your thinking cap . Thanx for posting morning Mayhem
Apocalypse Now-
Notice the stars are upside down in a pentagram pattern.
Also notice that in the 2008 election, both the republican and democrat parties reversed their stars in the party banners to also show a pentagram pattern.
and you think that is an accident in depiction ?
symbolism is a 5000 yrs old way of communicating between various structures; only a fool thinks that it is not used today.
The fact that the EU would use that image (given the way the Tower of Babel turned out) is a sad statement on the current state of Biblical illiteracy.
yep. Nice catch...only thing different is europe is still working on theirs with a crane.
I thought that was what we were trying to build in this country, so the Froggies and the Huns have a head start on us eh?
thanks for posting project mayhem
Cancer man rules, and I will smoke a pack of filterless Pall Mall in his honor.
On a lighter note, I just saw Bob Prechter and Nic 'dollar rally!' from this site rolling bums in an alley for increasingly valuable quarters and dimes.
I really need my Mayhem on Mondays.
Also, looks like they deployed PPT on gold and silver to belay the collapse for one more day.
Pricing of oil is a smokescreen. It doesn't matter what oil is priced in, it matters what the central banks hold. They could price oil in Pikachu cards. If the Arabs are pushing to change from dollars because they no longer want to hold dollars, the story is that Arabs no longer want to hold dollars.
How is the dollar suppose to remain the reserve currency a decade from now, when it will become an increasingly smaller slice of the global market? Its destiny is that of the pound and the franc in even the best of best case scenarios. To remain as the reserve currency is what would destroy America because it means perpetual deficits.
Oh believe you me, it TOTALLY matters to the empire builders in Washington what oil is priced in. The dollar is an oil-backed currency - plain and simple. If and when that role is taken away from it the dollar will be FINISHED.
GG, I understand that oil is priced in dollars and we have an agreement with the Saudis that we will protect them if they sell their oil in dollars, etc., but walk me through how the dollar becomes "finished" and how the dollar is backed by oil. Purchasing oil in dollars isn't the same as being backed oil-backed is it? Not disagreeing just trying to understand this better.
I am a man I am..., you might want to rethink your orange shirt before Marla notices!
Basically the US "agreement" (oh come on who are we kidding here? They put a gun to their heads) with Saudis ensures that whoever needs to purchase oil from the middle east has to buy dollars first on the international market. This creates an artificial demand for a lot of dollars by all oil importing countries (China, India, etc. etc.) that would otherwise not be there. The important thing is that these countries therefore hoard dollars as "reserves" (they hoard it for other purposes/other commodities priced in USD as well but buying oil is by far the biggest factor) thus absorbing Uncle Sam's excess money printing. Hence there are a lot of of excess dollars floating around out there that would be dishoarded once USD is no longer needed to buy oil (plus when one of the big players starts getting rid of its dollars, others automatically HAVE TO follow as the first one out the door gets the best value. They will be pushing and fighting to be the first one out the door). The dollars would be sold off on the currency markets causing an extreme glut of dollars and skyrocketing the price of everything in terms of dollars - immediate and severe depreciation of the currency or hyperinflation. Now you know why Team Obama is shitting their pants right now.
So why can't we start running trade surpluses?
China and Japan don't need hoards nearly as large as they have. I've also been confused on this issue and have read quite a few books but I can't get to the heart of it. If China is worried about the value of their dollars, why don't they SPEND them while they are still worth something?
My best guess as to what's in it for the US is that you can't have low unemployment along with upward income redistribution without excess money creation which would be inflationary if it didn't flow out of the country. That's just my best guess at this point; any comments?
...and why TO is rushing to spend as much $ (and issue as many T's) as quickly as it can.
...and why any 'family' who has access to the FED discount window is borrowing as much as it can at 0% and invest it in anything it can.
it's the final spree before the deluge, which explains why it's so disconnected to anything rational.
Après moi, le déluge
oui oui c'est la vie
Agreed. USG does not run the currency for the benefit of the people, but for the empire built by USG. The great tragedy is that none of this needs to happen. The U.S. could adapt and become Switzerland on steroids. Instead, USG will burn the nation along with its currency and eventually, itself.
Sadly, all great tragedies don't need to happen. Events get to where they become great tragedies simply because a small group of people think they can control something they can't really control.
Stir in large doses of hubris, arrogance and naval gazing narcissistic penis waving and you have a great tragedy on your hands. Repeat as often as the asleep at the wheel local population will allow and then sit back and enjoy.
The monster has grown beyond the means of its creator to control it point to a loss of capability. Agreed that this course is beyond a tragedy.
Yes, but that would require real leadership. Politicians would have to start telling the actual truth, not just what the hoi polloi want to hear. They would need to carefully explain that there is no free lunch, and that government not only has no money, but that it is completely bankrupt, and that Americans are going to just have to accept a lower standard of living while taxes are increased and government largesse is slashed for many years to come. That they will need to either work, seek and accept charity, or die. They will need to look deep into the camera and tell the citizens that this great American experiment, where everyone tries to live at the expense of everyone else, has come to an end.
And what are the chances of that?