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Guest Post: Things Are Spinning Out Of Control

Tyler Durden's picture


Submitted by Charles Hugh Smith from Of Two Minds

Things Are Spinning Out of Control

The pretense of centralized control of history is wearing thin.

The single greatest conceit of the Status Quo in the U.S., China and Euroland is that systems and trends can be tightly controlled. That conceit is slowly being revealed as hubris, as all sorts of things are spinning out of the control of the centralized authorities and financial elites in each geopolitical power center.

Does anyone really think the people of Greece will stand idly by while the state treasures of their nation are transferred to the banks which foolishly lent billions to a visibly risky enterprise? The banks, of course, lent freely to insolvent governments throughout the European Union, confident in the backstop of the E.U. itself.

The analogy to subprime mortgages in the U.S. is near-perfect: banks lent freely to extremely risky borrowers, breezily confident that their worker-bees in the Federal Reserve, Fannie Mae and Freddie Mac, the Treasury and Congress would all toil feverishly to transfer the risk to the U.S. taxpayers, by whatever means were necessary.

Does anyone really think the uprisings against this transfer of national wealth to the "too big to fail" banks in Europe will fade as unemployment rises and the true costs of the transfer become apparent to all?

Does anyone really think there is no chance that the citizens of one of the nations lined up to be stripmined by the E.U. will openly rebel against the stripmining, throwing out their government until they find some politicians who are not spineless lackeys and factotums of the financial Status Quo?

Does anyone really think the banks are really that precious to the people they are stripmining? Just how awful would it be if all the big banks with exposure to sovereign debt in the E.U. went belly up and were declared insolvent? A handful of very wealthy managers would lose their jobs, a handful of very wealthy owners would lose their stake, and all the pension funds and mutual funds which bet on the infinite passivity of the citizenry and the infinite checkbook of the E.U. would lose, too.

It's called Capitalistic risk and return, baby, and return can be negative. All the big players assumed the citizenry would quietly line up to have the clothing ripped from their backs and their flesh flayed to extract the pound of flesh "owed" the banks. But as the citizenry of Europe wake up to costs of the stripmining, which extends now to the taxpayers of Germany, Finland and beyond, they are withdrawing their support of the financial Status Quo.

Here is my plea: Ireland, Please Do the World a Favor and Default (November 29, 2010).

Things are spinning out of the control of the centralized mandarins in the E.U. They seem to have borrowed the Federal Reserve's playbook to keep the stripmining proceeding as planned: lie, frequently (practice helps); obscure systemic risks by printing money; and issue a foul sewage of propaganda about how nicely the economy is "recovering" to mask the real game, which is diverting the national income stream to the banking cartel.

The levers of interest rates, credit and money supply do not control larger trends; the appearance of control is illusory. The E.U. and the Fed are both busily applying the duct tape of various monetary machinations to the overheating boilers of the global economy, and presenting their frantic improvisations as "finely tuned, guaranteed to work" policies. As things spin out of their control, reality is poking through their rice-paper facade of "normalcy" and control.

Here in the U.S., the Fed's game plan of stripmining the nation to "save" the banking cartel is based on a cruel deceit I explained yesterday in The 'Baseball' Economy: The Fed Strikes Out (May 24, 2011): while the Fed maintains incentives for financial speculation and backstops any cartel losses in those speculations, it claims its policies are designed to "boost employment" in the real economy.

That is the world's most dangerous joke: if you believe it, you die from extreme irony. What the Fed is actually doing is starving the real economy and thus precluding any gains in employment as it diverts the national income to fatten the insolvent banking cartel.

Does anyone seriously believe their scam can endure? As I described in Your Pick, Ben, But One Goes Off the Cliff (April 22, 2011), the Fed's policies are setting up multiple double-binds. The Fed cannot finesse the unraveling of the entire financialization project.

There is currently a "great debate" over QE3, the next round of Fed "stimulus" (read stripmining). As things spin out of control, it no longer matters what the Fed does. That is, after all, their central conceit and the basis of their power: that the Fed actually controls anything. This quote, attributed to Napoleon Bonaparte, is increasingly relevant: "Do you know what amazes me more than anything else? The impotence of force to organize anything."

The Fed claims it can force the real economy to "grow" by forcefeeding it credit. But all the Fed is really doing is fattening the banking cartel with guaranteed profits (borrow from the Fed for free and then deposit the funds at the Fed for interest) and enabling another speculative frenzy which generates fees and profits for the banking cartel while the U.S. taxpayers play bagholder.

The Fed has lost control of the reaction to QE3. There is no "surprise" in QE3, so the potential positive is lost. Whatever the limitations the Fed imposes on QE3, they will be recognized as limiting the "high" of the credit-cocaine injected by the Fed.

If the Fed chooses an open-ended, essentially infinite QE3, then it will be recognized by the market that the Fed has lost all control and the pretense of "growth" is truly threadbare. No matter what the Fed does with QE3, the results will be negative. If they try to finesse a limited QE3, the markets will recognize the policy is unable to force-feed more speculative bubbles. If the Fed unleashes the printing press, then inflation will wrench free of the last rotten ropes restraining it, and the market will recognize that the current stock and bond bubbles are so tenuous that only unlimited money printing can keep them inflated.

Simply put, things are spinning out of the Fed's control. The Fed has been transferring the wealth of the nation to the banking cartel and the financial Power Elite for three long years, and the fraud at the heart of their claim to be "stimulating" the real economy is now in plain view.

Does anyone really believe Japan's economy is under control? The tragedy at the out-of-control Daiichi Fukushima reactors might well be an analogy for the entire Japanese economy. Does anyone seriously believe Japan's over-indebted experiment in endless quantitative easing will sustain a demographic sea change and yet another explosion of debt to support rebuilding and more "stimulus," i.e. bailing out Japan's insolvent banking cartel, which has been insolvent for 20 years?

As for China: inflation is now out of control. Party authorities are frantically pulling the same levers of monetary policy, but the wires connecting the levers to the real economy have snapped. All their efforts to "cool" rampant speculative bubble-blowing and rampant inflation are failing. Taking their cue from the U.S., they are desperately trying to mask their loss of control with doctored statistics, but the conceit cannot endure for much longer: rents are rising even as housing sales decline. Local governments are still borrowing and speculating wildly, in a last-ditch effort to prop up their own income streams, which are dependent on real estate speculation and land grabs from peasants.

Things are spinning out of control. Trends are beyond the feeble grasp of central financial authorities. Power is based not just on controlling events in the real world but on the perception of having some control over the real world. Once the central banks' control over large-scale trends and systems is revealed as illusory, then the unraveling of the Status Quo's powers will gain momentum.


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Wed, 05/25/2011 - 12:00 | 1309288 mynhair
mynhair's picture

What goes up, must come down.

Spinning wheel goes round n round.

Wed, 05/25/2011 - 12:26 | 1309382 silberblick
silberblick's picture

Fear is why the want to controll everything. This is what motivates the CFTC too. Read below why the CFTC has done nothing to prevent price suppression on the COMEX:

Wed, 05/25/2011 - 12:43 | 1309463 Miss Expectations
Miss Expectations's picture

What you gain on the round-about, you lose on the swings.

Wed, 05/25/2011 - 12:48 | 1309479 PulpCutter
PulpCutter's picture

Smith is profoundly ignorant to assume that it's just a few "pension and mutual funds" that are exposed to GSE mortgage debt.  It is, instead, virtually every bank in the US - large and small. 

Check the books at the banks where you have your money.  You will typically find they have a substantial portion of their assets held as GSE bonds (that portion was about 1/3rd at my banks). 

We must let the banks bear the consequences of their risky bets; until we do, things will simply get worse.  But don't be lulled into some false sense of security as to what this means in terms of your assets - it's virtually certain that your bank will either 1) go under or 2) be bailed out with what will by that time be fairly worthless US dollars.

Wed, 05/25/2011 - 14:01 | 1309729 the rookie cynic
the rookie cynic's picture

Of course more bailouts are in the offing, but don't forget to factor in the inertia of the "petrodollar" and the hegemony of the U.S. military.  People viewing the dollar just through the lens of government debt and deficits sometimes forget this.  The dollar is backed by oil and if anyone tries to sell oil for something other than dollars (Sadam Hussein-Euros, and now Gaddafi-Gold Dinars) , the CIA jackals and the U.S. military will go in for the jugular.  Without the "petrodollar/CIA/MIC put" the dollar would have been toast long ago, but it still has legs, therefore a sudden death spiral collapse to zero over a few months is much less likely than a slow steady decline in the dollar.

Wed, 05/25/2011 - 15:14 | 1309963 ibjamming
ibjamming's picture

Agree...and let me add...war baby!  War is coming...war in the ME...for the ultimate control over the oil.  The next WW is on it's way.  WWIII will be for control of the ME oil.  We'll use the same excuse the Palestinans are using about USED to be our land...and we're taking it back.  I'd say $50 oil...not paying all the ME middlemen...will be cheap enough to get the global economy going again.  If China decides to be on the wrong will be a nice gift to the world when a pen stroke eliminates all the debt owed to China.  China would be fucked in a REAL war...they don't have nor can they control enough resources.  The US has Canada and Mexico to supply us with everything we need.

Wed, 05/25/2011 - 15:36 | 1310071 Stormdancer
Stormdancer's picture

Be sure to include Cantarell in your calculations.  That Mexican "supply" is drying up remarkably fast.  Venezuela better be modernizing their defenses if Chavez expects to keep his place in a supply crunch.

Wed, 05/25/2011 - 18:50 | 1310766 Geoff-UK
Geoff-UK's picture

His ignorance coupled with his licensing to post his rants here is maddening.


Someone remove his posting privileges key-card.  Stat.

Thu, 05/26/2011 - 17:18 | 1314459 1inchRacker
1inchRacker's picture

I'm always amazed to see some people slate well-written articles, with throwaway one one or two liners, just because of one point they disagree with: "Smith is profoundly ignorant" ??? C'mon PulpCutter, give us a lengthy article someone can toast if you're so knowledgable.

Wed, 05/25/2011 - 12:59 | 1309528 eatthebanksters
eatthebanksters's picture

"If the thunder don't get you then the lightning will'.  Jerry Garcia, 'The Wheel'.

Wed, 05/25/2011 - 14:33 | 1309829 Imminent Collapse
Imminent Collapse's picture

Nice Garcia (actually, Robert Hunter) reference.  Here's another:

I don't know, but I've been told

That its hard to run with the weight of gold

Other hand, I have heard it said,

It's just as hard with the weight of lead

One way or another, this darkness has got to end.

Wed, 05/25/2011 - 15:00 | 1309921 JoeSexPack
JoeSexPack's picture

'One fist of iron, the other of steel.

If the left one don't get you then the right one will.'


Maybe Jerry got that from 16 Tons by Tennessee Ernie Ford.

Before my time, but a catchy tune.

Wed, 05/25/2011 - 16:39 | 1310295 Abiotic Oil
Abiotic Oil's picture

That's actually a Bobby song but yeah...

The wheel is turning and you can't slow down,
You can't let go and you can't hold on,
You can't go back and you can't stand still,
If the thunder don't get you then the lightning will.

Wed, 05/25/2011 - 12:01 | 1309290 Sophist Economicus
Sophist Economicus's picture

OK, I'm no longer hip -- what is a "Guest Pops"?   Please don't tell me Chuck adopted you....

Wed, 05/25/2011 - 13:07 | 1309542 Confucious 222
Confucious 222's picture

Guest pops are the European version of otter pops. They have kind of a mayonaisse and Swiss Chard taste. Fairly popular among the unemployed and student crowd in Benelux side of town.

Wed, 05/25/2011 - 12:05 | 1309293 Fancy Bear
Fancy Bear's picture

Gold, bitchez.

Wed, 05/25/2011 - 12:14 | 1309325 GetZeeGold
GetZeeGold's picture



 Is there a silver lease rate analyst in the house?


Wed, 05/25/2011 - 12:17 | 1309354 JW n FL
JW n FL's picture


do you have a contract in hand?

delivers when?


the costs of leasing.. or buying silver.. are more expensive than the backwardation / disconnect at the dealer(s).. becuase of the scope and scale of those larger orders!

you would think, or you here about the great bulk price which is still more than what we lil monster box buyers pay!

Wed, 05/25/2011 - 13:03 | 1309541 MarketTruth
MarketTruth's picture

Buying physical silver IN BULK can be relatively cheap and easy through dealers like . Delivery is free, too. Silver at lowish over spot and gold AT SPOT pricing. Not sure where you are getting your information, yet obviously you may be dealing with bad dealers... or trusting COMEX/LBMA paper.

Wed, 05/25/2011 - 13:16 | 1309570 JW n FL
JW n FL's picture

I buy eagles.. maybe I should have been more clear.. the disconnect for eagles is ugly.. there are cheap garbage coins to be had at sub-par pricing.. or sub-spot pricing.. bars are cheap..


Given that those items are prone to be considered commercial and not collectable.. I will pay the premium and sleep well at night.


Monex and Mike's place seem to have good pricing for bulk silver / gold eagles.. I will check out Tulvig and see whats the deal there.. I remember more than one person waving me off of tulvig in the past.. here, that I trust.. thats why I never checked tulvig out. 

Wed, 05/25/2011 - 13:22 | 1309585 JW n FL
JW n FL's picture


I only buy from people who are U.S. Mint Direct.. as paying anyone in the middle does not appeal to me.. but to each their own.


So its not that my dealer is robbing me.. Rechant is a U.S. Mint Direct Dealer and they do NOT! do any on-line sales or phone sales for people they do NOT know very well.. so I am not advertising for them unless you are in Palm Beach or you want to drive to Palm Beach! so all you online guys can stop before you start. Brick and mortor people, like me.

Wed, 05/25/2011 - 13:20 | 1309588 zuuuueri
zuuuueri's picture

your friends might have been turned off by tulving's minimum orders (which aren't all that big.. iirc 20oz au/ 500oz ag). the guy is 100% business, totally legit. i've bought from him maybe half a dozen times over a decade, always short and to the point and everything exactly according to the deal. 

Wed, 05/25/2011 - 16:55 | 1310345 JW n FL
JW n FL's picture

I have not heard anyone step up and say anyting bad.. thats just as good as a recomendation here! LOL!!


I will check his pricing.. v. Monex and Mike.. Mikey is just so cute in his video's though! its hard to not want to support the guy! traveling the world selling bars!


on that note the little guy wins! I always route for the little guy (route, drive to and / or map a way too) (on purpose, for the fun of it!)

Wed, 05/25/2011 - 16:55 | 1310354 JW n FL
JW n FL's picture

I am a coin (eagle) or bar guy.. but these look really kool!

Wed, 05/25/2011 - 17:00 | 1310364 JW n FL
JW n FL's picture

2006 buffalo proofs are cheaper than 2011 direct from the mint proof buffalos! $109 over spot of $15--.00 v. $18--.00 U.S. Mint.

Wed, 05/25/2011 - 12:13 | 1309327 JW n FL
JW n FL's picture

gold and silver.. and if you have lots of that.. the paldium / platinum / rhodium.. coins are kool too! just for shits and giggles!

Thu, 05/26/2011 - 01:54 | 1312140 Carbon Penguin
Carbon Penguin's picture

Meh, I prefer mah Bitcoins...

Wed, 05/25/2011 - 12:03 | 1309299 LawsofPhysics
LawsofPhysics's picture

And your solution is...  (cue crickets). 

Wed, 05/25/2011 - 12:08 | 1309306 Tyler Durden
Tyler Durden's picture

The right solution was a global debt to equity recapitalization - something that has worked forever in all corporate bankruptcies. Alas, that meant wiping out the status quo.

Wed, 05/25/2011 - 12:11 | 1309331 LawsofPhysics
LawsofPhysics's picture

I agree.  Bring it.  Now the status quo gets wiped out in a way that is much less user friendly for everyone.

Wed, 05/25/2011 - 12:43 | 1309459 hedgeless_horseman
hedgeless_horseman's picture

He said, "was."

Wed, 05/25/2011 - 12:50 | 1309485 LawsofPhysics
LawsofPhysics's picture

Yes, I saw that.  Does this mean that solution is no longer available?

Wed, 05/25/2011 - 13:11 | 1309553 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Magic 8-ball says: Ask again later...

Wed, 05/25/2011 - 13:12 | 1309555 hedgeless_horseman
hedgeless_horseman's picture

Does this mean that solution is no longer available?

Yes, so now we must simply learn to do more with less.

Wed, 05/25/2011 - 16:49 | 1310316 RockyRacoon
RockyRacoon's picture

All well and good, but you can't do anything with nothing.

A rising tide lifts all boats, assuming you have a boat.

Wed, 05/25/2011 - 12:11 | 1309333 zero intelligence
zero intelligence's picture

Bingo -- just convert the bank debt to equity.

Wed, 05/25/2011 - 12:17 | 1309357 LawsofPhysics
LawsofPhysics's picture

Now how does one buy some of that equity if that turns out to be where we end up anyway?  

Wed, 05/25/2011 - 12:21 | 1309356 Ethics Gradient
Ethics Gradient's picture

You'd end up banks being owned by banks that they own! The snake would eat itself.

Once it'll all netted out, you'd end up with nation states owning everything. You didn't blow up the credit card companies to achieve that, did you?

Wed, 05/25/2011 - 16:53 | 1310349 RockyRacoon
RockyRacoon's picture

Is that a Wankel rotor?

Wed, 05/25/2011 - 12:18 | 1309361 wombats
wombats's picture

So how could that be implemented today?  What would the impact be to the economy and to individuals if a recapitalization were to take place today?

Wed, 05/25/2011 - 12:32 | 1309404 FreeNewEnergy
FreeNewEnergy's picture

You are correct, sir. And what we now have is a rapidly-growing underground economy which is hastening the collapse.

Been oddly quiet in Washington, DC. Aren't they supposed to be working to fend off a default and planning the budget for 2012.

I am getting the distinct impression that our 9%-approval congress and out-of-touch president are planning to sit back and watch it all come undone in August, while they will be on "vacation," and still expect to have control and their jobs when SHTF.

I see dead people, shot by our own militias.

Wed, 05/25/2011 - 12:56 | 1309515 Ruffcut
Ruffcut's picture

Not an IF, but a When.

No shit will hit the fan,unless they want it to.

The status quo is more of slow destruction and power grab.

Wed, 05/25/2011 - 12:48 | 1309469 illyia
illyia's picture

Ya, So BTFD?

Until you can't?

Wed, 05/25/2011 - 12:49 | 1309471 Cassandra Syndrome
Cassandra Syndrome's picture

Creative Destruction. Let the crash happen, a new system will evolve, we still have our stock and knowledge, just need a proper medium of exchange.

Wed, 05/25/2011 - 14:38 | 1309852 Imminent Collapse
Imminent Collapse's picture

+ 1

Wed, 05/25/2011 - 13:31 | 1309617 bbq on whitehou...
bbq on whitehouse lawn's picture

They could have recapitalize debt in '07/08.
Of course that will happen anyway.
Its how that is done and with what money.

What combination of PMs and paper will it be done?
The market will choose if governments do not.

If capitalization is done with existing money you get deflation.
If capitalization is done with new money you get high inflation. Even hyper.

Revaluing gold works but at what prices will capitalization work?
Will everyone with a day job rush off with pans to the nearest stream because the cost/benefit is greater then their day jobs?

Of course this all will work its self out in time. Its just how much damage will be caused in the process.
If entrenched interests are unwilling to agree and set policy, markets will set policy for us all.

Fireman sometimes keep a burning house from spreading to others, instead of putting it out.

Wed, 05/25/2011 - 13:33 | 1309626 Whatta
Whatta's picture

The right solution was a global debt to equity recapitalization

Not as long as there is a middle class left to pawn bailouts/taxes on.

Have chillun's bitchez, we needs the future slaves.

Wed, 05/25/2011 - 16:58 | 1310352 RockyRacoon
RockyRacoon's picture


Wed, 05/25/2011 - 14:05 | 1309732 YHC-FTSE
YHC-FTSE's picture

"The right solution was a global debt to equity recapitalization - something that has worked forever in all corporate bankruptcies. Alas, that meant wiping out the status quo."

I like this site, but WTF! Debt to Recapitalization. I am sure you don't mean changing the corporate structure of every publicly traded company but injecting capital into corporations by replacing one capital for another. Isn't that what Bernanke is doing right now, locally in the US? The nation's toxic debts were bought by the Fed (aka the great bailout), and the equity market is being recapitalized by the 18 odd (haven't checked recently) primary dealers in the POMO. That kept the status quo, not wiped it clean. That is just monetizing debt, isn't it? And even if it was desirable, how would you do it on a global scale? Sorry mate, but that's rubbish imo. (Plus did I mention I like your site? :))

Wed, 05/25/2011 - 14:10 | 1309753 Tyler Durden
Tyler Durden's picture

There is no capital injection in a debt for equity. You replace equityholders with debt holders.

Wed, 05/25/2011 - 14:22 | 1309796 legal eagle
legal eagle's picture


Wed, 05/25/2011 - 23:54 | 1311868 WaterWings
WaterWings's picture

I'm ruining your placeholder.

Wed, 05/25/2011 - 14:31 | 1309821 YHC-FTSE
YHC-FTSE's picture

I'm sorry, we are obviously divided by a common language. I don't understand your reasoning. This article is about global debt and central bank control (or lack thereof). There are no equity holders for national debts, because a nation is not a company. There are bond holders instead, and replacing them with "debt holders" is no change at all but in name. 


Anyway, I am sure you're very busy, and sighing at my misinterpretation of your lucid explanation so if anyone else cares to explain to me where I have gone into the woods, I'd be grateful for some pointers. 

Wed, 05/25/2011 - 15:59 | 1310147 hedgeless_horseman
hedgeless_horseman's picture

There are no equity holders for national debts, because a nation is not a company.

The second coming of John Law could easily remedy this little hurdle. 




    Turning and turning in the widening gyre
    The falcon cannot hear the falconer;
    Things fall apart; the centre cannot hold;
    Mere anarchy is loosed upon the world,
    The blood-dimmed tide is loosed, and everywhere
    The ceremony of innocence is drowned;
    The best lack all conviction, while the worst
    Are full of passionate intensity.

    Surely some revelation is at hand;
    Surely the Second Coming is at hand.
    The Second Coming! Hardly are those words out
    When a vast image out of Spiritus Mundi
    Troubles my sight: a waste of desert sand;
    A shape with lion body and the head of a man,
    A gaze blank and pitiless as the sun,
    Is moving its slow thighs, while all about it
    Wind shadows of the indignant desert birds.

    The darkness drops again but now I know
    That twenty centuries of stony sleep
    Were vexed to nightmare by a rocking cradle,
    And what rough beast, its hour come round at last,
    Slouches towards Bethlehem to be born?


William Butler Yeats (1865-1939)

Fri, 06/10/2011 - 12:47 | 1358309 SecondComing
SecondComing's picture

A'yup.  Coming is so nebulous, though.  Arrival is actualization, I submit.

Wed, 05/25/2011 - 14:27 | 1309806 Reptil
Reptil's picture

A real default, not a propping up with more debt under the guise of a bailout. There's a difference between a liquidity crisis and an insolvency crisis. Take Greece. They'll never pay off the what is it? 13 CDS. At some point there WILL be settlement.

Wed, 05/25/2011 - 22:00 | 1311449 Ben Dover
Ben Dover's picture

"Wiping out the status quo"?!?!?!? Oh say it ain't so!

Wed, 05/25/2011 - 12:31 | 1309398 alien-IQ
alien-IQ's picture

the solution was to let capitalism play out as it was designed to: Reap the benefits of your success and suffer the consequences of your failures. But when the time came for the "masters of the universe" to suffer the consequences of their failures...they decided it would be best it they unloaded that burden on the front lawns of the average American. Fortunately for them, the average American was so caught up watching American Idol that they never noticed the toxic shit that was being dumped on them and the policy makers were happy to oblige the masters wishes in exchange for the chance to someday, possibly, maybe be considered for membership into their club.

Wed, 05/25/2011 - 12:31 | 1309412 brodix
brodix's picture


 I like your moniker.

 The fact is that when you trade a piece of paper for tangible value, that paper is not a commodity, but a contract. This system is based on the assumption that money is a commodity provided by the banking system.

 Yes, a market needs a medium of exchange in order to operate, but if that medium is controlled by unregulated private interests, the rest of the market is prey to those interests. Proof is becoming overwhelmingly evident.

 All social constructs start out a private initiatives, but at some point those which prove indespensible become public trusts. Government is a good example. Few poeple still think monarchies are a viable form of government. 

 Government is essentially the central nervous system of the communal body, while finance is its circulatory system. Since the banking system has been so kind as to make responsibility for maintaining the viability of the currency and its circulation a public responsibility, eventually we will find that it makes more sense to treat banking as a public utility. Then we wouldn't have to keep raping the rest of society and the environment to sustain a predatory financial system.

 If people did understand that the money itself is a form of public property, they would be far more careful what value they take from social relations and environmental resources to convert into monetary value in the first place. This would allow space for other forms of exchange to develop, possibly creating stronger communities and a healthier environment.

Wed, 05/25/2011 - 12:36 | 1309428 LawsofPhysics
LawsofPhysics's picture

Thanks, and I agree.  I don't know about you, but I already see a lot of "other forms of exchange" developing in my neck of the woods.

Wed, 05/25/2011 - 13:08 | 1309547 brodix
brodix's picture

Me too, but then it's always been that way. We can't escape our organic roots and when we try, eventually we end up as fertilizer.

Wed, 05/25/2011 - 14:48 | 1309889 weinerdog43
weinerdog43's picture

Well done explanation!  Probably the most succient I have seen. 

Wed, 05/25/2011 - 13:54 | 1309694 Dr. Acula
Dr. Acula's picture

>when you trade a piece of paper for tangible value, that paper is not a commodity, but a contract.

No, a dollar bill is certainly not a contract. I believe it's signed by the Treasury Secretary, but no performance is promised. A dollar bill is simply a piece of paper. It is commodity and it is money because it is the most marketable commodity. And it has value - fundamentally the only kind of value: subjective value.

>Few poeple still think monarchies are a viable form of government. 

FYI, argumentum ad populum proves nothing. I think Hoppe argued that monarchy would not be as bad as democracy in Democracy: The God That Failed. Anyway, there are many arguments showing that neither is viable.

>Government is essentially the central nervous system of the communal body, while finance is its circulatory system.

Or, viewed another way, they're a gang of criminals commiting robberies, counterfeiting, and bailment fraud. Expressed in your theme, they're a malignant tumor that grows even as the patient is dying.

>we will find that it makes more sense to treat banking as a public utility.

Sounds like socialism. What if I don't want this utility? Can I opt out? Why don't you pay for it yourself, if you like it so much?

>money itself is a form of public property

So I guess it's OK for people to break into your house and take your money - it's "public property" after all.

Wed, 05/25/2011 - 14:15 | 1309779 brodix
brodix's picture

Dr. A,

 Its value is fungible with those pieces of paper in everyone else's pockets. Think of it a as a public road. You are very much in possession of that section you currently inhabit and if anyone else were to try and take it from you, serious consequences would ensue.  

To quote Churchill, "Democracy is the worst form of government, except for all the others."

Fact is that we rise from the basics, we didn't fall from some ideal. Things work, until they break down, then we build something back up. That requires some degree of communal cooperation, not just a bunch of whining about how unfair it all is.

Are you able to accept that houses, cars, businesses are all private proerty, but the roads connecting them are public property? Is that socialism? Some things are best as private property and some as public property. It's when we don't try to clarify the difference that we find the biggest thieves controlling everything, either by declaring it all public property and they are in charge of the government, or by declaring it all private property and they own it all. There has to be some balance.

 If you don't like national currencies, find a community with its own local currency. It's still a form of communal contract.

 No one has to break into your house to take your money. They can just issue more. If you think it's your money, just try printing some up the next time you are a little low and see who holds the copyrights.

Wed, 05/25/2011 - 14:43 | 1309873 Dr. Acula
Dr. Acula's picture

>businesses are all private proerty, but the roads connecting them are public property? Is that socialism?

Yes, the roads here are predominantly socialized roads. And they kills thousands of people every year. But note that some roads in USA are actually private roads. Here is some information on how privatizing roads could help save lives:

"Third, this is precisely the system — privatization — that vastly outstripped that of the U.S.S.R. in providing computers, cars, clothes, and a plethora of other products and services. Yet, instead of borrowing a leaf from our own success and applying it to highways, we have instead copied the discredited Soviet economic system and applied it to our network of roadways. That is, our highway network is governmentally owned and managed. This is why people die like flies on these roads and suffer from traffic congestion serious enough to try the patience of a saint (which also exacerbates casualties through road rage)."

>Some things are best as private property and some as public property.

Even if that were true, to make something public property, you need to spend public funds to purchase or maintain that property. To get public funds, you are going to be committing thefts against people who don't want or need and won't use the property. I maintain that theft is wrong, whether it's one person mugging you on the street, or a million people voting to do so. If you think it's OK to steal money from someone who doesn't drive to pay for a road you do drive on, then that's where we part ways.

>If you don't like national currencies, find a community with its own local currency. It's still a form of communal contract.

I like national currencies. Feel free to send me any extra currency you don't want. Of course I'd rather have gold.

But still, money is not a "contract". Try spending a $100 bill at some locations or paying with thousands of pennies and you will be turned away. There may or more often, may not be, a way to legally compel them to accept it.

Wed, 05/25/2011 - 14:53 | 1309892 weinerdog43
weinerdog43's picture

You are being intentionally obtuse.

Currency is both a store of value and a medium of exchange.  It is why we don't have to barter for everything.

Wed, 05/25/2011 - 15:09 | 1309940 Dr. Acula
Dr. Acula's picture

Yes, money is a store of value and medium of exchange. Often, it is legal tender. But it is not a contract (see below). Money can be used to satisfy contracts, but is not a contract per se. If you want to invent your own meanings for words, then our discussion is over.

Contract –noun

an agreement between two or more parties for the doing or not doing of something specified. 2.
an agreement enforceable by law. 3.
the written form of such an agreement.
Wed, 05/25/2011 - 17:05 | 1310375 RockyRacoon
RockyRacoon's picture

You're an argumentative little shit aren't you?

Congrats to brodix for some fine comments.

Wed, 05/25/2011 - 22:28 | 1311550 brodix
brodix's picture

Okay, money is a commodity. It is subject to the laws of supply and demand. Lenders provide the supply, borrowers provide the demand. That means the economy can only support as much notational wealth as can be sustainably loaned out. With an unregulated financial system, the inclination is to create enormous amounts of synthetic lending in order to create enormous amounts of notational value. So your solution to preventing the financial system from being turned into a giant casino that wrecks the larger economy is?

 So what is money, if not an agreed medium of exchange? Supposedly it is a store of value, but its value it determined by the amount of value in the economy which can be exchanged for it. The value is not intrinsic to the currency, or all that artificial debt based wealth would be something more than an enormous bubble.


Wed, 05/25/2011 - 12:04 | 1309302 Lord Welligton
Lord Welligton's picture

"Things are spinning out of the control of the centralized mandarins in the E.U. They seem to have borrowed the Federal Reserve's playbook to keep the stripmining proceeding as planned: lie, frequently (practice helps); obscure systemic risks by printing money; and issue a foul sewage of propaganda about how nicely the economy is "recovering" to mask the real game, which is diverting the national income stream to the banking cartel."

Not much to disagree with there.


Wed, 05/25/2011 - 12:04 | 1309305 THE DORK OF CORK
THE DORK OF CORK's picture

Yeah baby

The Ship is approching the sun !!!!!!!!!!!!!!, where the fuck is that dick of a navigator ?


Wed, 05/25/2011 - 12:14 | 1309345 JW n FL
JW n FL's picture

WOW! warn me next time Bro! I was drinking coffee! most people will not laugh, becase most people are fucking idiots and can not appreciate the art.. but damn that was rich!

Wed, 05/25/2011 - 12:24 | 1309374 THE DORK OF CORK
THE DORK OF CORK's picture

Yea , I like productions that are so bad, they are good - this was brilliant in my opinion but I have a acquired taste.

Wed, 05/25/2011 - 13:21 | 1309590 JW n FL
JW n FL's picture

I dont know where you are Dorky! but you have a wing man if you are ever in South Florida for a Horrible Show! I will do the City in the fall! but I dont do the City in the Summer.. fuck that!


I think you have GREAT! "B" production taste!

Wed, 05/25/2011 - 13:25 | 1309597 JW n FL
JW n FL's picture

some.. off, off broadway.. sci-fi! lol works for me!

Wed, 05/25/2011 - 12:25 | 1309384 risk-reward
risk-reward's picture

No sweat.  We're going at night.

Wed, 05/25/2011 - 13:06 | 1309548 RunningMan
RunningMan's picture

What if I asked you, to destroy the dollar... would you obey?


BB: Obey...

Wed, 05/25/2011 - 13:22 | 1309598 JW n FL
JW n FL's picture

I would obey!

Wed, 05/25/2011 - 14:50 | 1309887 Imminent Collapse
Imminent Collapse's picture

High Larry Us

Wed, 05/25/2011 - 12:05 | 1309309 Long-John-Silver
Wed, 05/25/2011 - 12:15 | 1309334 JW n FL
JW n FL's picture

kill them before they kill you..

Wed, 05/25/2011 - 12:07 | 1309317 ABCStore
ABCStore's picture

Charles Hugh Smith:

Please get this fact into your head - BANKS DO NOT LEND MONEY.


Wed, 05/25/2011 - 12:13 | 1309338 LawsofPhysics
LawsofPhysics's picture

Banks need to be simply banks again.

Wed, 05/25/2011 - 17:40 | 1310509 Shell Game
Shell Game's picture

Eventually, yes.  But watch out what you ask for.  Our so called 'banks' have in excess of $1.7 trillion in reserves on their books. At the minimum reserve requirement ratio of 10%, that's $17 trillion they can throw into the money supply through loans and direct security purchases.  i.e. QE3 (and hyperinflation) doesn't have to come directly from the Fed, it could come from the zombie banks....just being banks.

Wed, 05/25/2011 - 12:08 | 1309320 LRC Fan
LRC Fan's picture

Things are spinning up over at the NYSE.  Rally on bitchez

Wed, 05/25/2011 - 12:15 | 1309322 TruthInSunshine
TruthInSunshine's picture

Icelanders are near to unplugging themselves from the Matrix, and for each step they take closer to that goal (although there are headwinds in the form of bought&paid for seditionists amongst their own), the better off they are as a nation and people.

We should all strive for the Icelandic solution and make it clear once and for all that talk of doom from withdrawing from a fractional reserve global banking Ponzi scheme is nothing but central bank propaganda of an absolutely epic scale.

Free your minds, careers and lives from the fractional reserve fiatski deathtrap, and economic and physical health will follow.

Keynes is dead. Long live Keynes.

Debt = enslavement.

Unpayable debt heaped on via the incredible leverage of fractional reserve fiatski banking = perpetual enslavement with no hope of freedom, ever.

Wed, 05/25/2011 - 12:27 | 1309394 john39
john39's picture

i think it has to come down to some sort of economic cataclysmic event...  I would love to find that freedom, but with $100k educational debt, a mortgage and bills, I'm stuck in a job I hate, and even then just scraping by to pay taxes.  I can have my freedom if I default, but it will be ugly and not sure how I will feed the family.   In short, my life is a microcasm for what nation states are facing.   No way can I repay that debt, nor is most of it dischargeable...    Unless the whole system goes down, not going to be easy to find that freedom.

Wed, 05/25/2011 - 12:42 | 1309458 tarsubil
tarsubil's picture

I honestly feel for you. Do your best and hope for the best while preparing for the worst. Good luck.

Wed, 05/25/2011 - 13:01 | 1309521 john39
john39's picture

Thanks man.  Honestly, less and less worried about it... because I think the entire house of cards is coming down.

Wed, 05/25/2011 - 14:01 | 1309728 MachoMan
MachoMan's picture

So you're assuming that if the house of cards falls down then your debt gets forgiven or forgotten?

It sounds like to me that you made a gamble, that you will be able to continue making a certain amount of money until such time as your debts are repaid...  my suggestion to you is, if it appears that your timetable for repayment is shrinking, reduce your standard of living (discretionary spending for sure) and repay the loans first that provide benefit from doing so.  For example, as the principal of your student loans decreases, so does your minimum required monthly payment (compare and contrast to paying a mortgage).

While this is going on, take on extra work on the weekends and nights.  With the money you derive from this additional work, purchase items that will retain their value and help you retain worth regardless of what happens to the currency.  I'll let you decide what those might be.  If you feel comfortably hedged in this department, divert it to repayment of the debt (again, that debt that actually incentivizes you to repay it early).

But to believe that your debts are going to be magically whisked away is naive at best.  I think in order for that to happen, literally the entirety of civilized society will have to fall...  and I mean babies in microwaves, men in deer skin loin clothes, and cats and dogs getting along kind of stuff.

It is possible some of these items get forgiven through an errr olive branch or placating measure by the oligarchy...  but, I wouldn't count on it.

Wed, 05/25/2011 - 15:45 | 1310127 tarsubil
tarsubil's picture

What about sustained 10-15% inflation? Would you want to pay off a debt that is 5% annual in that situation? In Venezuela, people love to take out low interest loans since inflation is higher. They are a sort of privileged serfdom credit class. At least, that's what I read. In my opinion, if there is total collapse debts will be dumped and forgotten. The bankers won't be taking a pound of flesh. They'll be hanging around lamp posts.

Thu, 05/26/2011 - 09:59 | 1312914 MachoMan
MachoMan's picture

A.  There is no such thing as sustained inflation.  It is a temporary phenomenon on the way to a likely highly deflationary bout or hyperinflation...  granted, sometimes it lasts longer than others depending on the prevalent environment, but it's unsustainable none the less.

B.  Our form of inflation is more appropriately described as stagflation...  the money supply may be shrinking while the prices of necessities continues to increase while wages stay equal or decline.  As a result, the best way to "weather the storm" is to cut the noose of debt rather than increase it.  By adding more debt at this juncture, presuming credit is even available, the interest payments begin to eat all discretionary income.

If wages were actually rising, then you would be absolutely correct...  borrow today to pay them back in monopoly money tomorrow...  however, we're not so lucky...  because tomorrow, we're going to have a hard time even getting monopoly money.

C.  Debts persist whether or not the creditor entity survives.  This is something many people have not yet understood.  The creditor entity may assign its debt to third parties...  eventually finding a party solvent enough to chase you for it and requiring you to either repay or file for bankruptcy... 

I think credit of the future will be vastly harder to come by...  willing lenders will be few and far between...  and anyone attempting to obtain a loan had better come to the table with a clear conscience and a good lending history.  Loans today are meaningless and are generally shunned by prudent investors (who aren't in the club) given the juice is likely higher than any reasonable return that can be made.  However, post collapse, loans will not be so meaningless and fortunes will be made revitalizing fundamental and necessary business functions (e.g. actually producing things).

In other words, whether or not the bankers are hanging from light posts, your neighbor may own your debt.  The question presented to you is whether you want to sacrifice to repay your creditors or whether you want to default, presuming you are lucky enough to have the means to earn a living.  I strongly suspect the vast, vast majority will choose the latter route, but such a route is not without consequences (for example, your prospective employers run credit checks on you to determine your moral character...  when applying for professional licenses, etc., they'll ask you if you've ever filed for bankruptcy).  While debtors prison does not exist, debtors glass ceiling does.

Debt comes with a substantial burden and potentially very serious consequences.  It's a shame that we have to learn that lesson every couple of generations, but somehow it's a history that is rarely passed down or, if so, then promptly ignored.  Best of luck.

Wed, 05/25/2011 - 14:29 | 1309795 Dr. Acula
Dr. Acula's picture

> I would love to find that freedom, but with $100k educational debt, a mortgage and bills, I'm stuck in a job I hate, and even then just scraping by to pay taxes.

I feel the same way. The good news is we have a lot of company. Including the US Treasury. The Constitution prohibits the United States from failing to honor public debt. When the US Treasury begins issuing torrents of printed money, it will effect a reboot. The Fed - a mere agent of Congress - can do nothing to alter this outcome.

Sooner or later, $100K will be enough to afford a loaf of bread. It may make sense to go in even MORE debt now as you will owe practically nothing later. It's a perverse incentive, but it's very real. When everyone is bankrupt, it's almost like no one is bankrupt.

Wed, 05/25/2011 - 15:10 | 1309961 aerojet
aerojet's picture

I don't recommend the "more debt" approach.  1) You could be way wrong about how this all plays out.  2) The re-negotiated terms on that debt might be even worse than the original.  Basically, the idea that the bankers won't get their pound of flesh unless ou are dead is a foolish notion.

Wed, 05/25/2011 - 22:38 | 1311572 StychoKiller
StychoKiller's picture

Whew!  Glad I got a coupla 100Trillion Zimbabwe dollars to fall back on, then! :>D

Thu, 05/26/2011 - 03:06 | 1312225 mick_richfield
mick_richfield's picture

The Fed - a mere agent of Congress

I think you got that backwards.


Thu, 05/26/2011 - 10:03 | 1312926 MachoMan
MachoMan's picture

Nyet.  As B9K9 says, "if bankers did not exist, the government would have to create them."

Wed, 05/25/2011 - 15:14 | 1309952 aerojet
aerojet's picture

I'm not sure if this will still work, but take out a large HELOC, pay off the student loans, then default on the house.  I don't know if those kinds of loans are easy to get these days or not, but I know people who rolled their student loans into mortgate refis pre-2008. A lot of stuff is non-recourse now.

Maybe it only gets you part of the way there.  Take a 2nd job at night for whatever shit wage you can get and pay it off faster.  Yup, life is hard, full of hard choices...

Wed, 05/25/2011 - 15:34 | 1310062 Bam_Man
Bam_Man's picture

take out a large HELOC

Yeah, all that HOME EQUITY is just sitting there, waiting to be tapped.


Wed, 05/25/2011 - 16:26 | 1310229 TheAkashicRecord
TheAkashicRecord's picture

Iceland essentially sits on top of volcanos.

As per Wiki ...

About 81 percent of total primary energy supply in Iceland is derived from domestically produced renewable energy sources.

Renewable energy provides 100 percent of electricity production.

Thanks to plate tectonics, Iceland is seriously off the grid, unfortunately, we do not have that luxury in the States.

Wed, 05/25/2011 - 12:13 | 1309328 SecondComing
SecondComing's picture the widening gyre

Wed, 05/25/2011 - 12:13 | 1309337 Dolemite
Dolemite's picture

Weak holders getting out before next leg down

Wed, 05/25/2011 - 12:14 | 1309341 Henry Chinaski
Henry Chinaski's picture

Yet the criterion of truth is that it works even if nobody is prepared to acknowledge it.

Ludwig von Mises

Wed, 05/25/2011 - 17:12 | 1310386 Hugh_Jorgan
Hugh_Jorgan's picture

True dat'

Wed, 05/25/2011 - 12:18 | 1309350 oogs66
oogs66's picture

it definitely seems like it is getting harder for 'them' to hold it all together.  every time we hit a new problem, or revisit a supposedly corrected problem, it is harder to 'fix' it or even kick it down the road.  the tangled web is becoming too tangled

Wed, 05/25/2011 - 12:47 | 1309474 samsara
samsara's picture

Pragmatically TPTB is now TPTW (were).


Wed, 05/25/2011 - 15:12 | 1309968 aerojet
aerojet's picture

Only for you.

Wed, 05/25/2011 - 12:18 | 1309351 buzzsaw99
buzzsaw99's picture

It's called Capitalistic risk and return, baby, and return can be negative...


Wrong! The bernank put is in full operation. There is no risk anywhere. Risk is passe. Everything is backstopped by either the obummer gubmint, the fed, the imf, or whatever. Nobody takes a haircut who has any clout whatsoever. The new paradigm.

Wed, 05/25/2011 - 12:18 | 1309352 Doyle Hargraves
Doyle Hargraves's picture

The levers of interest rates, credit and money supply do not control larger trends; the appearance of control is illusory. The E.U. and the Fed are both busily applying the duct tape of various monetary machinations to the overheating boilers of the global economy, and presenting their frantic improvisations as "finely tuned, guaranteed to work" policies...

HMMM Levers, machinations, boilers? That is the problem...people running shit treat an economy as if it is a machine. It ain't no damn machine. It is living, breathing, and works off of human decision. This nitwits will always wreck the shit until they realize that economic policy and economies are not empirical, hard sciences. Until then be prepared to suffer from their conceit and urges to control what cannot be controlled. We as a population suffer. There is no way a centralized system can make the adjustments needed to control trillions of transactions that occur every day. Even implying that these idiots like 'the bernank', et al have a 'model' to figure out what to do in any case of a downturn should be a huge cause for alarm. There is no control over something so behemoth, with so many moving parts, and to be even remotely convinced that there are models that would guide decision making processes by TPTB is the ultimate in vanity and conceit!



Wed, 05/25/2011 - 12:31 | 1309413 Doyle Hargraves
Doyle Hargraves's picture

Can't we just click are heels and go home?!

Wed, 05/25/2011 - 14:18 | 1309777 hidingfromhelis
hidingfromhelis's picture

There's no place like home.

Wed, 05/25/2011 - 23:55 | 1311886 FreedomGuy
FreedomGuy's picture

You nailed it, man! Top to bottom you got it. It's like trying to grow a rain forest. You can't do it.

Wed, 05/25/2011 - 12:21 | 1309359 Tommie-ZeGerman...
Tommie-ZeGermansAreComing's picture


Wed, 05/25/2011 - 12:21 | 1309360 nowhereman
nowhereman's picture

It really is all of a piece isn't it?  The interconnectedness is staggering.  And yet each piece is looked at in isolation, not taking this interlinking into consideration.  The US sees the problem as different from the Eurozone and Asia and the emerging markets, and yet each is so wrapped up in the other as to almost appear unfathomable.

Each move made has unforseen implications simply because each actor sees the problem from a different perspective and acts accordingly without an understanding of the global consequences.

Until TPTB realize just how complicated the structure is, there is no one size fits all solution.  It's akin to the Three Body Problem in Physics.  You can fairly accurately determine the influence on one body on another, but add in a third body and all bets are off.  Now just imagine what happens when there are several more spheres to take into consideration.

What this tells me is that the system is far too complicated for TPTB to figure out, and they know it, so it's every man for himself.  All I know, is that in the end, the current market relationships will never be the same, and who comes out on top will not be who you would predict.

Wed, 05/25/2011 - 13:16 | 1309568 Flakmeister
Flakmeister's picture

Funny thing about multiple bodies is that if you get enough of them, you can predict system behavior at the price of not being predict the behaviour of any particular body....

Wed, 05/25/2011 - 15:19 | 1309982 Dr. Acula
Dr. Acula's picture

Great post!

Only, it's more like a 7 billion-body problem than a Three Body Problem.


Wed, 05/25/2011 - 12:22 | 1309364 Alcoholic Nativ...
Alcoholic Native American's picture

Maybe in euroland but here in America everything is fine.  At least for people that already have jobs.  No riots or anything, people out spending money.  Dancing with the stars is doing very well.  The only time Americans got off their asses was last election cycle when the teabaggers took merica back! and demanded an extention to the Bush tax cuts.

Status quo is fine.

Wed, 05/25/2011 - 15:46 | 1310130 nowhereman
nowhereman's picture

I don't know why you were junked, I got your point.

Wed, 05/25/2011 - 12:22 | 1309365 DonutBoy
DonutBoy's picture

We know the answer to this rhetorical question from history:

"Does anyone really think the people of Greece will stand idly by while the state treasures of their nation are transferred to the banks which foolishly lent billions to a visibly risky enterprise?"

The answer is yes.  That is exactly what will happen.  It will be done on an emergency basis in the middle of the night, probaby a weekend night, and they'll get a movie like Inside Job to explain it two years later.


Wed, 05/25/2011 - 12:19 | 1309371 Bubbles the cat (not verified)
Bubbles the cat's picture

Things usually start to get more interesting when people get hungry. I note that crop yields of grains and oilseeds including corn, wheat and soybeans, are expected to suffer due to unseasonal dry weather. However, the onset of unseasonally wet weather should change all that....and further reduce crop yields. Rising prices, rising costs, rising interest rates, rising unemployment, falling demand. Bullish for tear gas and batons.

Wed, 05/25/2011 - 12:36 | 1309418 Doyle Hargraves
Doyle Hargraves's picture

Funny how that works...when a man cannot feed his children all bets are off!

Wed, 05/25/2011 - 13:41 | 1309669 TSA gropee
TSA gropee's picture

Behaviors on Black Friday sales are but a small glimpse of what would come to pass if the stakes were food for self or family rather than a $3 griddle or a cheap flat screen. The human capacity to rationalize knows no bounds during a crisis.  

Wed, 05/25/2011 - 14:53 | 1309891 SoNH80
SoNH80's picture

Will Big Ben helicopter in grape soda 'n chicken wings?

Wed, 05/25/2011 - 15:19 | 1309985 aerojet
aerojet's picture

That behavior can be quickly curtailed by the appropriate application of a few rifles and shotguns.

Wed, 05/25/2011 - 15:51 | 1310139 nowhereman
nowhereman's picture


Funny how that works...when a man cannot feed his children all bets are off!

Yeah, then he goes on Maury Povich to get the paternity test.

Wed, 05/25/2011 - 12:27 | 1309373 MarketFox
MarketFox's picture

The Fed cannot make oil.....


The Fed cannot make widgets.....


The Fed cannot do anything other than take AWAY from productivity......


Ann Rand is on the mark.....

The Fed Jew Boy Bernanke has done nothing but pay up to his Jew boy banksters....

Even the press pal....GS is a significantly large revenue source for Bloomberg....


Welcome to JEWYORKCITY....


Fascism....Goldman Sachs style.....



Don´t think so....then prove otherwise....


Let´s start making the list....








list goes on and on.....

Wed, 05/25/2011 - 12:26 | 1309388 Quinvarius
Quinvarius's picture

He nailed it with the printing money and stuffing it into the banks while the economy starves of it.  The sad thing is the banker idiots actually think that preserves the value of the dollar because it isn't circulating.  Sorry bankers.  That money exists, along with the debt that it came from.  No money in the economy = no economy = no taxes = no debt payments = more printing.  If you print it, it has to circulate.

Wed, 05/25/2011 - 12:29 | 1309391 FreedomGuy
FreedomGuy's picture

"The single greatest conceit of the Status Quo in the U.S., China and Euroland is that systems and trends can be tightly controlled. "

One of my favorite sayings for all of life, "Control is an illusion. Influence is a reality." It applies to government, economics and even raising your kids. The modern statists thinks they have their hands firmly on the levers of control and can do anything from changing climate patterns to guaranteeing outcomes in life. That's why in the end they end up wanting to be gods.

Wed, 05/25/2011 - 12:31 | 1309397 Wynn
Wynn's picture

"Does anyone really think the people of Greece will stand idly by while the state treasures of their nation are transferred to the banks which foolishly lent billions to a visibly risky enterprise?"

And how will the citizenry stop such a gold transfer? Big step up from protests to physically trying to impede a government decision. Only a full blown revolution could stop such a transfer.

Wed, 05/25/2011 - 13:17 | 1309572 Paper CRUSHer
Paper CRUSHer's picture

Regardless of the revolt, the great people of Grrrr'eece won't get one glimpse of their national treasure since it has been(sitting) held in the vaults of the New York Fed Bullion Depository since,since....WW2? This transfer will be but.....but a mere book entry.


Wed, 05/25/2011 - 14:45 | 1309869 DOT
DOT's picture

"Possession" becomes ten tenths of the law !

Wed, 05/25/2011 - 12:32 | 1309407 LRC Fan
LRC Fan's picture

I wish the DXY and the Dow would both just plunge 10% in one day at the same time.  No one would know what to do. 

Wed, 05/25/2011 - 12:42 | 1309455 Robslob
Robslob's picture

Gold and Silver would...

Wed, 05/25/2011 - 12:56 | 1309512 brodix
brodix's picture

The reason such events are called Black Swans is because they are unpredictable. As we get better and better at prediction, we get better at resolving problems. So the pressures build up until an unpredictable event, such as a Tunisian fruit seller setting himself on fire, blows up the accumulated stresses.

 The powers that be can write write all the laws in their favor, except the laws of nature.

Wed, 05/25/2011 - 14:42 | 1309860 slewie the pi-rat
slewie the pi-rat's picture

hay, bro_x:  our science deals ok with the leading edges of the laws of Nature. 

hmmm,...,...maybe one of the laws is that some events are not law-conformable, anyhow? 


Wed, 05/25/2011 - 12:41 | 1309451 SirIssacNewton
SirIssacNewton's picture

I would love to see a firing squad for all the shyster bank, corporation and political heads that see it as their job to be so solvenly full of greed as to bring everything that was good about the world down around our ears all for the sake of another good quarterly report.  But that won't happen.... We live in a house with termites munching 24/7 and, with the exception of the little pile of droppings you find at numerous locations, everything seems fine.  The structure for all extensible purposes looks to be functioning fine.  Those piles of dropping suggest decay, but its not overtly evident so its ignored because it looks too costly to fix.  Then one day we try to hang a picture on the wall and the hammer goes all the way through the rotten wall to the outside.  You realize that the house has been completely consumed from the inside out....bite by bite...munch by munch.  If only we had killed the infestation of those freaking bugs sooner, we would still have a house we could live in.  Now its too late, the house is ready to fall in on us and one more bite by the next termite will bring it all down.

The banstas know that we have been willing to ignore the signs because the cost appears to be too much to kick them out of our affairs.  The problem, though, has gotten so big and there truly is nothing left to salvage except the land and its will require a complete rebuild with materials that are substantially more bug proof.

Wed, 05/25/2011 - 13:26 | 1309612 Henry Chinaski
Henry Chinaski's picture

I would love to see a firing squad

At this point, I would settle for a public horse whippin'.

Wed, 05/25/2011 - 14:45 | 1309880 LFMayor
LFMayor's picture

Yes, the tender, purifying caress of braided horsehide.  Make it a pay per view and cash in.

Wed, 05/25/2011 - 12:46 | 1309470 Smartie37
Smartie37's picture

Attn FED Monkeys reading this:

The muthaf--n' jig is muthaf--n' UP !

All of the people will not be fooled All of the time..........

Survival mode for banks dependent on "free" capital will end.....when the "donors stop giving"-----more imminent with each passing week

Wed, 05/25/2011 - 12:52 | 1309480 They_Live
They_Live's picture

Every silver coin you bury is a ray of hope should the worst happen.

Wed, 05/25/2011 - 13:12 | 1309556 JW n FL
JW n FL's picture

every gun you bury (pelican case or like) with great ammo! is a ray of sunshine when they outlaw the guns! 1st.. then cut all help to Americans after!


only the bad guys and the good guys will have guns.. while you sit in your home and starve.. while the U.S. Army Patrols the Streets of America to keep it safe from "We the People" being able to take our Country back from the Banks / Lobby / Duely Elected Lobby Whores!


I will be fishing in the Bahamas! leave a message after the tone! I will of course come back when "We the People" get a clue.. that is my hope! becuase the odds on favorite is! that the Majority of "We the People" are to fucking stupid now or later to want their freedoms back! they just want food stamps with a side order of cable T.V. and a Pension.. maybe a nice Government Job? maybe a nice union job? making more than people who work with no safety net!


But lets talk about austerity! thats what we need!

we dont need the top 1% to pay any fucking taxes!

we dont need the Tax benefits taken away from those corporations who have moved 50,000 jobs a month to china since 2000..

we dont need common sense, we need abortion control! and prayer in schools! that will stop America from being railroaded into a 3rd world police state!


A Democracy GETS WHAT IT DESERVES!and all of you that can Not make it to the Bahamas and go fishing forever.. keep voting republican or democrat! LOL!!!

Wed, 05/25/2011 - 14:56 | 1309902 LFMayor
LFMayor's picture

I agree with your first paragraph in full.  During the de-volution, firearms will be worth their weight in Au.  I don't see Mad Max, but I can imagine it will look like Yugo '92.  

As for the common sense, it's been weeded out of the vote gardens. They don't water the common sense parasites, so they've all died off.  The water has to be cut off and the whole garden needs to go fallow for a season or two in order to make it right.

Vote Dem/Rep, doesn't matter.  Same.  There is also no viable alternative.  No 3rd party will ever sucessfully stand up in this climate, before it's gotten it's legs cut out from under it.  The game is rigged.  Time to pull a Buford Pusser and start knocking tables over is almost upon us.

Good luck fishing, but prepare accordingly.  Piracy would be a good investment about now, call it a resurgent IPO.  Or is that the "fishing" you're planning?

Wed, 05/25/2011 - 17:13 | 1310388 JW n FL
JW n FL's picture

I would never take anything from anyone I know and / or like as a human being.. all others should bring at the least toll monies! cash will not be accepted!


but that only if things get out of hand and lawlessness becomes prevalent.


until then I will settle trying to beat my old 650lbs record!

Wed, 05/25/2011 - 12:50 | 1309489 Tracerfan
Tracerfan's picture

The U.S. is bankrupt in numerous ways, including financially.

The Dollar will crash, as every paper fiat currency before it has eventually.

Europe will take gold as collateral, because it is not a relic, it is recognized worldwide and has been for 5,000+ years as being money, unlike fiat paper.

Gold and silver bitchez.

Wed, 05/25/2011 - 12:59 | 1309514 Robslob
Robslob's picture

It is going to be OK...because in the end we will all be "labeled" terrorists by our respective governments run by our respective corporations and enslaved by our banks.

So easy a congressman could understand it:

Wed, 05/25/2011 - 13:00 | 1309530 JW n FL
JW n FL's picture Everyone who uses Twitter! Left or Right Views! are Home Grown Terrorist(s) PER Home Land Security! See Link(s) and Official Report(s). Twitter Court Ordered to Provide Names / Twitter Terrorists, ALL of US! / FBI Needs NO! Warrant   


Rigged Market Capitalism & Propaganda within the U.S. by the U.S. PLUS! PLUS!!

Wed, 05/25/2011 - 12:56 | 1309516 JW n FL
JW n FL's picture

SEC to Vote On Exactly How To Compensate Corporate Whistleblowers

The Dodd-Frank provision for whistleblowers was created in the aftermath of the Bernie Madoff scandal.

Tags: compliance, Madoff, SEC, Dodd-Frank,


May 25, 2011

The Dodd-Frank Act created new rewards for corporate tipsters. The SEC votes today on exactly how corporate whistle-blowers will be compensated for their deeds.

This Marketplace report suggests that the biggest sticking point is whether tipsters have to report suspected wrongdoing to their bosses before or as they blow the whistle.


Republicans responsible for whistleblower 'secret hold'

Wed, 05/25/2011 - 14:08 | 1309748 chunga
chunga's picture

The first whistle needs to be blown right at the SEC for gross negligence. Just clean out your desks and go home.

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