Guest Post: Snatching Tiger Cubs And Cherished Delusions

Tyler Durden's picture

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SpeakerFTD's picture

I started to read this, but did you see?!?!   The new Ipad has 2 CAMERAS!  TWO!   OH JOY!

LawsofPhysics's picture

Hence, I maintain my stance.  Crash the system, crash it now.  The sooner we do, the sooner compensation finds its way to people and businesses that are actually worth a shit.  When greater than 15% of our GDP is tied to pushing paper assets around that are marked to fantasy and the rest is government spending, you know the jig is up.

 

Hedge accordingly.

NotApplicable's picture

The sooner we do, the sooner compensation finds its way to people and businesses that are actually worth a shit.

 

While I will agree that the current system prevents efficient capital allocation, that does not mean that destroying it will help. What comes after will probably be far, far worse, ala Hayek's "Road to Fascism."

Then again, to you "sooner" may still be a long time off, after the next Dark Ages end in a few centuries.

Misean's picture

"that we can heedlessly consume more than we produce forever, with no consequences."

But there's still toner in the printer!

Captain Kink's picture

This reminds me of a story my sister (a bank employee) told me a few years back... It really puts into perspective how doomed we are.  The punchline is that bank customers who were overdrawn in their checking accounts would come to the bank complaining that there must be some mistake, they can't have done anything wrong...because, "I still have checks."

Oh regional Indian's picture

Somehow, when readign the headline, Putin came to mind. Purrrrrresident Putin...again.

The end of delusion, has a nice ring to it. Only, it will be accompanied by such awesome cognitive dissonance that the sheep will line up for the shear. Anything to provide context to the new order of the world.

In another interesting and complementary aside, celebrity and celebrated icons are slowly but surely beginning to bit the dust. Tiger Woods teed off on that one. Sheen is another example. Oprah's got it coming.

Blinders, unfortunately, are really addictive.

ORI

http://aadivaahan.wordpress.com/2011/03/01/on-outsourcing-and-its-ills/

pazmaker's picture

ORI,   The government is going to confiscate your blackberry, you need to stay off skype and google too.

http://www.zdnet.com/blog/igeneration/india-poised-to-ban-blackberrys-sk...

 

Oh regional Indian's picture

paz, the only black-berries around me are the kind I can eat. So no fear.

And for the web in general, I'll miss this forum, my blog, all the learning.... but practising detachment has been good. I'll take it as a sign that the lessons are now closer to home, si all.

No fear! ;-)

ORI

Gene Parmesan's picture

Will J-Lo have her hair up or down tonight? I bet she has it down.

The_Euro_Sucks's picture

I bet there is and ETF for that. If not, you made a great financial innovation and will earn millions.

Bob's picture

"Riot in Wall Street." 

There, fixed it for ya. 

Jason T's picture

"The disintigration continued, and there seemed no power great enough to stop it.  The Treasury was empty, agriculture prostrate, industry demoralized, trade stagnent, and the only commercial activity was a maddened, consuming, parasitic speculation." as how Elgin Gluseclose described Rome in 301 a.d. in his book Money and Man. 

Threeggg's picture

WTF is this ?

March 2 (Bloomberg) -- A JPMorgan Chase & Co. unit took delivery of almost 1 million metric tons of raw sugar, the most for the commodity since 2009, to settle the expiring March futures contract in New York.

So they administer the Sugar market too. !

Wholly 5hit !

http://www.bloomberg.com/news/2011-03-02/sugar-deliveries-for-new-york-march-futures-surge-to-jpmorgan.html

 

mule65's picture

WFT is mayment?

How have we managed to take so much more than we produce? This is not an easy concept to grasp, but in effect the U.S. has arbitraged its currency to the detriment of its trading partners and those accepting dollars as mayment for real goods.

Captain Kink's picture

WFT is mayment?

WTF is WFT?

pazmaker's picture

Captain Kink your funny!!!   thanks!

repete's picture

mayment means may pay you back...may not!

dejapfc's picture

Payment  or may(not pay)ment :),hahahahaha ....

Vampyroteuthis infernalis's picture

I talk to my coworkers and friends about this. They just do not believe or do not WANT to believe that we are broke. They are all the chosen people. What is my problem?

10kby2k's picture

You need to watch more TV and do less thinking.

Kranskee's picture

I didn't read the whole article, I just want to respond to the notion that you can't consume more than you can produce.  Of course you can! When you have the biggest, baddest military on Earth, you just eat everyone else's lunch.  No problem.

10kby2k's picture

I laughed at a picture of an old Libyian woman (who almost assuredly doesn't speak english) carrying a sign...."Game Over".  She was obviously referring to Kaddafi, but i was thinking she was speaking to me and the promises my country has implied to me and my children.

Live_Free's picture

I gave up using the dollar as my secret source to consume more than I produce along time ago..........

The federally provided SNAP card is the wave of the future people.

Much more convenient- No need for more paper when an expanded balance of electronic digits is easily transfered from those that know far better then me such concepts as "production" and "consumption"

Maybe SNAP will replace the dollar as the world reserve currency?

 

 

 

Vacca's picture

This is what happens every time the Mafia takes over a business enterprise.

NotApplicable's picture

And why we can't have nice things.

buzzsaw99's picture

You can't consumer more than you produce for long...

Define "long". I've been "consumering" more than I produce all my life. That's a half a century bitchez!

NotApplicable's picture

The quote should've been "You people can't consumer...", but you know how that language affects some folks.

Or for the even more correct version: "You people can't consumer more than you producer for long...".

dejapfc's picture

"most cannot grasp that the Savior State itself is not Too Big To Fail, but rather Too Big To Survive."Priceless .......

PulauHantu29's picture

No wonder everyone is buying USO, SLV and GLD.

They don't want to wind up with lots of worthless toilet paper.

0.001% is now what The Bernank is giving to savers....

Miles Kendig's picture

CHS channels his inner Flip Wilson playing the part of the Right Reverend Leroy at the Church of What's Happening Now.

Spit it brotherman!

http://www.youtube.com/watch?v=0SLifea3NHQ

As I hear echoes of THE Rock

http://www.youtube.com/watch?v=tArmHN4j3qQ

As the song remains the same.... For now

http://www.youtube.com/watch?v=pupKI_XOSUQ

the rookie cynic's picture

"If the pattern breaks down, then the dollar will be destroyed, as many expect. If it breaks out to the upside, as I expect, then the dollar arbitrage which has enbled us to live far beyond our means will be destroyed."

Can anyone explain to me what CHS means by this? It doesn't quite make sense to me. Also, he's pinning a lot on technical interpretation of the DXY.

Overall, however, I like reading his stuff.

Here's some of my thoughts:

Here are some reasons that favor a slow crumble as opposed to a quick crash.

  1. The U.S. dollar accounts for about 3/4 of world trade. It provides the liquidity for international commerce.  No dollar, no global trade.
  2. In order to export goods to the to the richest country on earth (at least until recently), exporting countries take dollars as payment. As a result, net exporters to the U.S. hold a large percentage of their national wealth as dollars. If the dollar loses value, they lose too.
  3. Even if the dollar was on its way to worthless (which it very well could be), no one dares divest too quickly and spark  a run on the dollar. If you’re holding lots wealth in dollars, a crashing dollar wipes out your own wealth.  If China, for example, wants to divest itself of dollars, it’s going to do it as stealthily as possible, not only to keep exports flowing to the U.S,  but also to safeguard its own wealth.
  4. Oil is bought and sold in dollars.  No industrial economy can run without oil and in almost every case, if you wanna buy gas, you gotta have dollars.
  5. The U.S. has the most powerful military in the world and is willing to use it, especially when oil is on the line.

http://therookiecynic.wordpress.com/2010/09/18/will-the-dollar-crash-or-...

AldoHux_IV's picture

While there are many that have become fat on the promises and been living high on the hog, there are others that have been responsible all their lives as well and have attempted to live prudently and saved accordingly.  Unfortunately to place a blanket sorry for beleiving in a lie type statement over these manipulated people is the wrong thing to do at this time.  I know of people that have used whatever means available to plan for a better way-- a more independent way for themselves and their loved ones.  That said, many will have to suffer before their minds are changed as to the scam and their eyes open to the social class genocide that has been taking place so far by the top 2% of the world.  While total destruction of the world order is necessary, the hopes and dreams of those who have and are willing to work for their continued success and independence from the tyranny of the corrupt elite do not have to be collateral damage.

The dollars you refer to that will inevitably go to zero are federal reserve notes.  That is a key to how we can defeat the total destruction of the American dream while bringing those responsible to justice and really kick this notion of revolution into high gear.

Moon Pie's picture

Fraud has become the new industry and of who can stick it to who fastest and/or hold on to the hot potato shortest and most profitably.  The Goldman/AIG move still makes me reel when I think about it, but alas, I also see it as the new "normal".  One legal prerequisite or characteristic of fraud is "Condition of the Mind" at the time of the fraud.  There seems a cumulative "condition of the mind" that if not originates fraud, condones it in our Financial and Governmental institutions.

I find the most interesting result is that there is a growing group or class that are not marked as Dem or Repub or Conservative or Liberal that are finding common cause.  The MSM tries to abrogate or invalidate this notion, but its going to get to the irrepressible stage soon. 

I subscribe to Chris Whalen's view that there won't be another calamtious collapse, but rather a slow bleeding of the nation as it relates to its economic health.  Unless of course Kuwait goes kablooie or some other unforeseen occurs. 

We might as well be in Tiannemen Square with Tanks ordered by The Banks rolling towards us.

 

jmc8888's picture

We can have the promises or we can have this monetary system.  We cannot have both.

I say fuck the monetary system, enact glass-steagall, and we can not only have the above, we can have much...much...more.

Charles Hugh Smith want the people to blame themselves? edit: ok maybe not

To now...pay for it...to who? The banksters.  Of course we have some blame, but only because we were (still are) fed lies.  If people actually knew the truth, no fucking way would we be in this monetary system.  No fucking way should the people 'pay' for letting the banksters take from them.  Talk about double jeopardy.  Sadly by now people should realize in the ponzi, it's infinity jeopardy.

Glass-Steagall, and the people can stop suffering, and those that created the mess, can (for a change) start.  CHS needs to focus abit more on how to get out of it, instead of laying blame on the sheeple.

Bob's picture

Agreed.  Nice two card monte he was playing, though. 

Rentier's picture

If everyone who finds the promises made to them are being broken responds by "rioting in the streets,"

 

Won't be me...I knew long ago to rely I nobody but yourself for your future and retirement.  As, such count on getting nothing in SS or some ill promised pension be it private or public and nothing from the gov't or others to support my family and me.

glenlloyd's picture

OMG, I am so disappointed that this didn't get more comments, it cuts to the heart of American delusion...bravo