Guest Post: Keep The Faith....

Tyler Durden's picture

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Goldenballs's picture

In short,social collpse as workers strike to be able to afford to live while those at the top carry on being greedy bastards screwing everything.Bernanke is up shit creek and just waiting to threaten I print again or the system goes to armageddon as its already heading for but it buys more time for an insolvent superpower.

ToNYC's picture


"What happens if energy and food prices keep going up?"

If you look closely at the  open elevator shaft, the floors seem to be rising when in this case Mr. USD is going down. The denominator of entitlement doesn't leave so much stuff behind when the unearned promises are properly accounted for..and you are always being graded. When you stop dancing, the band stops playing.

Michael Victory's picture

"What happens if energy and food prices keep going up?"

The Incredible Shrinking Food Unit.

It's one way to curb obesity.

Thomas's picture

Spoke with a former deli owner who now, much to his horror, works in the deli of a grocery story. He said that rising input prices ultimately drove him out of business. Apparently, the costs cannot be passed along (yet).

augie's picture

I dont think they will be passed along until large chain stores like wallmart and costco destroy all of their own competition through price competition.

Michael Victory's picture

I have a bunch of brothers, one manages a WallyWorld.

Likely not to your suprise, they sell some items for a loss to get you in the door.


Thisson's picture

Deli sandwiches are more expensive than many of their substitutes.

Here in NYC a deli sandwich will run you ~$10.  Chinese Food is $7, Pizza is $7 (2 slices), street-vendor food is $5-$6, and hot dogs are $2-3.  Prices are approximate and don't include a drink.

Alcoholic Native American's picture

Trickle down bitches.

GetZeeGold's picture


From the US taxpayer to the coffers of Greece...according to the latest news.

Thanks Barry....supporting the lazy Greek lifestyle makes me proud to be an American.

To my fellow Americans: Get to work. We have a country to save. It's just not ours.


Cdad's picture

I'm not sure there is any faith to keep.  For Average Joe, this entire three year period has been a struggle...and it is ending with another leg down.  Everything I look at tells me that this is about to get very ugly very quickly...EXCEPT the VIX...which is obviously an instrument so manipulated that it is currently dysfunctional.  This, however, should serve all, as clearly it cannot remain here.  As such, it will signal very loudly the coming ugly.  It simply has to.

Another thing that simply has to rally is the US dollar.  While it is easy to make a macro case against its true value, considering all the printing that has gone on, it simply has to rally prior to commencing another round of easing.  It simply HAS TO.  As such, and unless all the rules have changed [and they may well have], PMs have a struggle directly ahead [priced in USDs].


Boston's picture


When the USD soars, that will be one of my signals that the Treasury rally (which continues briskly this am, thank you very much) may be nearing its end.....


THE DORK OF CORK's picture

Still other things are happening in the universe today...........

If there is anybody or something outside the earths magnetosphere they might have more pressing problems with a proton / electron stimulus.


Goldenballs's picture

Maybe Bernake is an alien and a UFO is going to appear over the Whitehouse dropping shitloads of Silver to bail out the JPMorgue.

THE DORK OF CORK's picture

Tears of the sun or tears of the moon ? - what do you need for this present earthly monetory crisis my fellow Arcturian.

anony's picture

Who cares about the sun when we have Sofia right here on earth, erupting like an atomic bomb:

alexdg's picture

So now we're all hoping for QE3? I guess Bernanke's plan did work afterall. Now that we need it, he'll pull it out from beneath us, and we'll all fall into panic, moving from stocks to bonds? Proving that US debt has plenty of buyers and that Obama can keep up a large stimulus...

Goldenballs's picture

You always have a buyer when you buy your own refuse.

Oh regional Indian's picture

Faith and hope, surely the biggest stumbling to our species innate en-velopment. Faith indeed, so that is where we are, obama sold faith and hope. 

And the UK turned the corner with 24 hour pubs. You can chart it. I knew th eday I read it. Insane.


Goldenballs's picture

Soon a traditional UK pub will be a distant memory in most of the UK.

DogSlime's picture

...and the first shall be last.

The UK is just trying to make sure it isn't the first to default.  Everyone knows we're screwed in the UK, but I am convinced that all the appeasement of the markets and ratings agencies is purely to hold out until others default before us.

Not sure if that's a good idea or a bad idea but it's the only explanation I can think of for why our government are sticking with this stupid policy.

Goldenballs's picture

A Dangerous game of Brinksmanship has been going on since 2008,the aim of the game is to make everyone else look worse than you.Nice snippet the other day about UK banks buying UK Government debt.Sooner or later the game ends when the parcel explodes and the chain reaction takes down everything not just the country left holding it who was the first to explode.Globalisation means its all interlinked,like a global sewage farm slowly building up to go off.Beware unexploded nations,no naked flames.

Curtis LeMay's picture

They need a stable equity markets and stable FX markets to help buy time. Very clever.  


I am sick and tired of pursuing near-term stability at the expense of the very future of every one around us.

That's all bin Bernanke and Turbo Timmaaay are doing...

Fuck the stock market, fuck commodity speculation and fuck the bankers.

Cut taxes for business all across the board and get America moving forward and people back to work.

Bobbyrib's picture

The Bush tax cuts were all ready extended and as many people on this site have said before how many corporations pay taxes? The answer is not deregulation and more tax cuts.

Curtis LeMay's picture

Hey Bobby,

No, sure. That's what the accounting departments are for, right?

But all they do is interpret tax law, not make it.

We are all in deep shit. Perhaps it really is time to just make a flat corporate tax rate across the board and create an environment where it would be practically prohibitive for companies to put their profits in the bank and instead graciously reward investment and R & D instead?

This is not rocket science, but a large part of the cause for the cluster fuck we are in is due directly to the fact that many folks believe it is rocket science. The powers at be need to take a step way back an re-visit everything and see where government and industry can realy prime the economic motor(s). Whatever it takes.

The shit that is going on now is pathetic. Any two year old could figure out that if +/- there's a "money problem", print more of it...

Thisson's picture

If you want more jobs, you should be happy that corporations have low tax rates.  The more it costs to do business, the less money there is for hiring employees.

Lowering taxes IS the answer, provided that we are cutting unproductive spending, unearned entitlements and reducing debt service costs to make that possible.

THE DORK OF CORK's picture

Ain't that simple Curtis - any real growth will transfer your dollars to Arabia , you need to deny these guys your dollars by taxing oil to at least European levels if not higher.

This is complicated because of the current petro dollar system but that merely benefits New York and Washington to the detriment of the rest of your country.

Curtis LeMay's picture

Hi Dorkie

I am not sufficiently briefed on petro-economics to comment, really, but it would be safe to say the we have a huge trade deficit with Arabia, just like with China? 

The world has been living off of US government largess for decades, and I have no problem with that as Americans have reaped rewards from this as well. Moreover, we have been able to easily pay for, i.e., Saudi oil. No sweat, really.

Beyond stuff like this, though, screw even the thought of QE3. Let's face it, QE1 and QE2 are blatant admonitions of failure. Pursing the tweaking of failure must stop, and stop now.

Time to free up - and I mean like never before - the genius and drive of US industry. That will pull us all out of the mire, and leave something for our kids to work for and dream about too.

Thisson's picture

There is the seen and the unseen (hat tip to Bastiat).  While relatively cheap oil may SEEM like a good thing, it is preventing us from developing other (possibly better and cleaner) alternative sources of energy.

paulbain's picture

I am puzzled. So far, no one has even mentioned, much less discussed, price controls. I think that it is obvious that, if petroleum prices continue to increase, the Federal government will come under enormous political pressure to impose price controls on gasoline and diesel fuel. Furthermore, the relative inefficacy of such controls is very predictable. There is but one way to stop a hyperinflation: stop printing money. There ain't no other way.


-- Paul D. Bain


averagejoe's picture

Money printing is simply to disguise a problem ie that the economy is tanking. Defaults and depression are the normal tools to correct the drop in net demand caused by the overaccumulation of wealth at the top.

Thisson's picture

There's no such thing as "overaccumulation of wealth" at the top. 

The problem is the market distortions that ordinarily facilitate (or result from) accumulation of wealth.

The rich getting richer is a sign of capitalism working, as people who are effective allocators of capital reap returns from productive investments.  Unfortunately, our society has been bailing out ineffective allocators of capital after they have made their malinvestments.

averagejoe's picture

And so the current and probably the biggest crises of capitalism of all time continues.  This will not end until all but the rich are impoverished and living at subsistence levels. Then a revolution will be a distinct possibility as predicted by Ravi Batra.

Re-Discovery's picture

Real time in my posts yesterday I wrote most of this.  Commodities are STILL the play here, otherwise the entire world deflates which simply can't be allowed to happen by these idiots.  I also think stocks do NOT recover with a QE3 announcement but stabilize at lower levels in a continual step down process (with each extension of QE) until we hit 5% plus annual CPI inflation at which point stocks go up but who really cares.  I think equity longs are crazy here.  I think some commods (PMs, Oil, industrial metals) are a short-term short here, but be careful.

Bernanke WANTS to print.  He will stick to his thesis which is the whole "no inflation" BS.  If he doesn't acknowledge inflation as a problem, then he can fiddle with the prrinting press until there is no question about the problem.  He is also shifting blame to Congress which says that he is setting up a 'surprise' QE.

Stay nimble.  A correction is needed to provide cover so jumping in too soon can be fatal.  Shorts need to stay ready to shift after particularly egregious pullbacks.  I still think June 22 is the operative signal date to change policy, i.e. more QE.  But it could also be July.  Not past first week in August.



augie's picture

some of the Commods.(PMs, Oil, industrial metals)


lol thats pretty much the bulk of the market ex-food.

I don't beleive there is a safe haven from the coming deflation. Everything will be effected. 

Re-Discovery's picture

SHORT term short on those commodities.  Post June/July long.  Longterm short on equities. I was pretty specific.

I would like to add that the point in the article about Central Bank intervening in the FX markets to effect equities is absolutely true and happening now with the Euro as they try to instill confidence in the Greek bailout.  This elevates equity markets based on computer programs that are FX sensitive.

When they EUR next collapses, the quants will need to reprogram their machines from the ground up to account for this government market rigging.

Use of Weapons's picture

People are meeting in Switzerland 9-12th June. So far, we've had three major (not-so-subtle) actions in this last month to keep the dance macabre going (China most recently). I'd suspect some serious moves towards a more permanent and less unstable solution to the global issues being at least mooted in Swiss meetings. (And what the hell is "Operation Romance" -- tinfoil meets Mills n Boon?!).


Europe - Greece, Portugal keep clinging on: just. Spain is crossing its fingers, and the mid/strong partners (UK etc) are playing ball to prevent getting looked at too closely.

China - just bailed itself out using its own money. Which it can do. Drought to floods, crops?

USA - Hmm. Covered enough here - however, there's pressure from other places, interestingly enough. If you want to know what 50 odd million people without food stamps turns into, you should just look over the border: . And yes, thank the IMF + GS for that social "result". Wasn't Mexico the IMF pinup?

All in all - ZH is currently an interesting case, given that a percentage of its readers (no, not you, millennial silver hoarders) are currently hollow men, playing a game that isn't following the rules they've learnt. Tyler has already shown that many of the larger fish have left the pond due to this; the rest is just anthropology, watching an extinction event.






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I'm spotting that you might have gotten cleaned out in at least 7 of those categories? Also, don't have lorem ipsum on a professional webpage?

TheGameIsRigged's picture

Liesman has his pom poms out in full force.....


The downdraft in the economy is NEVER OUR fault - it's ALWAYS the other guy!!


Sounds like most marriages I know.....and we know how THEY turn out