Guest Post: Why Growth Is Dead

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Thu, 05/12/2011 - 14:38 | 1268839 LawsofPhysics
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Ah, the delta function is finally catching up with us.  hedge accordingly.

Thu, 05/12/2011 - 14:42 | 1268870 Cash_is_Trash
Cash_is_Trash's picture

...but, but, Ben, Tim and Barry assured we were growing!

Thu, 05/12/2011 - 14:56 | 1268930 Hard1
Hard1's picture

Yes, let's just find a new buyer of UST's to substitute China, now we only need 2 Trlln.  I've heard there are some aliens in an outer galaxy interested on exporting stuff to the USA in exchange for IOUs.

Thu, 05/12/2011 - 16:01 | 1269263 Slash
Slash's picture

the fed's got some tricks up their sleeve. "everyone" knows markets will tank with the end of QE 2....which means they won't. Maybe a hiccup or two, but it's too critical for the kleptocracy to keep the illusion of prosperity alive. I would think stocks will somehow levitate while commodities correct hard as that is obviously what the psychopaths want.

Thu, 05/12/2011 - 16:16 | 1269335 Coast Watcher
Coast Watcher's picture

Agree. No way the markets tank going into an election year.

Thu, 05/12/2011 - 16:24 | 1269378 Slash
Slash's picture

We'll probably see mysterious bidding at treasury auctions (once the grandstanding is done and ceiling is rasied) from money centers/offshore havens all over the world. The game of buy the bond flip back to the fed isn't over by a long shot. I wonder if the fed's balance sheet will show anything in terms of increasing asset purchases though.....

 

 

Thu, 05/12/2011 - 17:10 | 1269551 Robslob
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Election Year is 2012...not 2011.

Thu, 05/12/2011 - 19:58 | 1270109 Bicycle Repairman
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What kind of year was 2008?  It doesn't matter who gets to play puppet.

Fri, 05/13/2011 - 00:16 | 1270793 CIABS
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re: Coast Watcher

stocks will tank before an election if it will affect the outcome in the desired way, as happened in 2008.

Fri, 05/13/2011 - 09:28 | 1271361 blindfaith
blindfaith's picture

spot on.......and behind the scenes the vote manipulation has been is high gear for months.  Who will win, the corporations or the financials?  And, we thought it was all about blue and red, and the constitution, apple pie, and prayer.

Thu, 05/12/2011 - 17:06 | 1269544 hbjork1
hbjork1's picture

Folks, the artificial "growth" of easy money may be dead but real growth is not dead.  In between ZH postings, I am scanning trade magazines of various sorts.  The one in front of me right now is "Test and Measurement World.  The editorial title is "Game changers in test-part 2" 

Change is upon us all. 

I felt relieved by the performance of Seal Team 6.  Our country didn't "screw up" that at least.  But those TEAM members were the best of the best and they all paid a considerable personal price to be in that condition of readiness. 

I have to contrast this training level (for an assassination) with the financial lights setting policy for the entire country.  Greenspan has become a joke.  And the financial educators (including Merton), until this decade at least, realized that standard statistics that were for random events, could not be reliably applied to human decision processes. 

A couple of weeks ago I had dinner with a friend who was an early worker in computer modeling of chemical reactions.  A few decades ago, he had published a book, "Methods in molecular orbital theory".  Because I had been interested in what kind of math might be applied for a closer approach to better financial analysis, I had once ask him about his book.  It's a little book, shouldn't take too long to get a picture of the math with some bedside reading. 

He brought me his copy. 

I am still working on the "Schrödinger Equation" (bottom of page 1).   

Anyone reading this that thinks you could make a contribution in this area should check out his methodology.

Thu, 05/12/2011 - 19:57 | 1270118 Bicycle Repairman
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Dude, that was one giant non sequitur.

Thu, 05/12/2011 - 14:48 | 1268884 NewThor
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Ben Bernanke says "I am Shiva destroyer of worlds. Pain and 

suffering are my drugs of choice. I will overdose on pleasure

as the world collapses into a chaotic black hole of currency collapse."

Fri, 05/13/2011 - 09:23 | 1271337 blindfaith
blindfaith's picture

Guilt is a miserable ghost to have haunt you.  Ben is a Narcissus, they have no such ghosts.

Thu, 05/12/2011 - 14:40 | 1268848 Sudden Debt
Sudden Debt's picture

If it worked....

WHY DIDN'T THEY DO IT WHEN THE MARKETS WHERE STILL RUNNED BY PEOPLE?!!

WHY NOT JUST KEEP DOING IT UNTILL THERE'S NOT A SINGLE COTTON BALL LEFT IN THE WORLD?

 

and that graph.... WARNING STALL, WARNING STALL, WARNING STALL

 

Fri, 05/13/2011 - 01:10 | 1270858 dalkrin
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All that surge in credit with its jump-off point in the early 70's.  Hmm, what happened back then?  Oh yeah, Nixon severed the gold-tether, and away we floated like a balloon.

Thu, 05/12/2011 - 14:37 | 1268850 besodemuerte
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So should we expect 20% and 50% gains by October then?  Because we all know Benny Bucks won't let us crash.

Thu, 05/12/2011 - 14:41 | 1268851 zeek
zeek's picture

Isn't China trying to make our 'gyrations' irrelevant in the commodities arena, or am I just reading too much into the HKMEX offering contracts in yuan?

http://www.commodityonline.com/news/HKMEx-to-launch-yuan-denominated-gold-Futures-38977-3-1.html

Thu, 05/12/2011 - 14:40 | 1268865 LawsofPhysics
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I saw that, fast learners aren't they?  Now about that "deliverable gold", you will accept these yuan instead.

Thu, 05/12/2011 - 14:38 | 1268852 j.darkness
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Commodity Relief Assistance Program, aka C.R.A.P.

Thu, 05/12/2011 - 14:53 | 1268917 Missiondweller
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LOL! That was great!

Thu, 05/12/2011 - 14:56 | 1268933 Trillax
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+100 :)

Thu, 05/12/2011 - 15:07 | 1268973 TheGoodDoctor
TheGoodDoctor's picture

+some two ply. We are going to need it.

Thu, 05/12/2011 - 15:13 | 1269009 dexter_morgan
dexter_morgan's picture

++

Thu, 05/12/2011 - 15:25 | 1269059 Eally Ucked
Eally Ucked's picture

You my friend are a bit of the sinc, I would say, your economy depends on them even to produce nail polish! What you have to offer to the whole world? Your services? Good luck!

Thu, 05/12/2011 - 15:30 | 1269086 Dr. Richard Head
Dr. Richard Head's picture

Speculator Halting Initiative Transactions

Thu, 05/12/2011 - 16:10 | 1269289 NotApplicable
NotApplicable's picture

I've got it on good authority that they're considering calling it the

Financial Asset Security Clearing Inventory Sustainability Method.

Thu, 05/12/2011 - 16:35 | 1269424 j.darkness
j.darkness's picture

++ to you and Dr. Head, thanks for playing! 

Thu, 05/12/2011 - 14:40 | 1268863 Tic tock
Tic tock's picture

Oh you fuckin wish,

Thu, 05/12/2011 - 14:41 | 1268867 falak pema
falak pema's picture

growth is not dead in DC, 'cos negative growth is very much there!

Thu, 05/12/2011 - 14:44 | 1268878 buzzsaw99
buzzsaw99's picture

qe infinity bitchez

Thu, 05/12/2011 - 14:45 | 1268881 SheepDog-One
SheepDog-One's picture

Its not early 2008 anymore, the exuberance that 'this TARP thing hmmm it really might work!' and subsequent QE's is now seen as bailing out bankers only, no benefit for anyone else in a collapsed economy. Another round of it, no matter what they try to name it, will likely just cause a total wipeout. Last days of the empire here.

Thu, 05/12/2011 - 14:48 | 1268890 trav7777
trav7777's picture

Gee...credit peaked at the same time as oil production did

Thu, 05/12/2011 - 14:51 | 1268902 Flakmeister
Flakmeister's picture

No shit, eh?

Fri, 05/13/2011 - 23:53 | 1273741 nmewn
nmewn's picture

You guys run in pairs...that is interesting.

Thu, 05/12/2011 - 15:15 | 1269022 CrashisOptimistic
CrashisOptimistic's picture

It is astonishing how people cannot figure it out.

Thu, 05/12/2011 - 16:35 | 1269413 NotApplicable
NotApplicable's picture

Ever try to explain to someone how our money is nothing but our own debt? Instant eye glaze. Honestly, I'm astonished that so many have figured it out.

To the masses money = money is about as in depth as the logic gets, because the next step is no better, and with the circular logic, the spiral of wealth transfer over time goes unseen. Here's the whole conversation.

Q: "What's a dollar?"

A: "It's a promise to pay."

 

Q: "Pay what?"

A: "A dollar."

 

Q: *drools*

Fri, 05/13/2011 - 05:02 | 1271020 John Skookum
John Skookum's picture

The real fun will come when BernankeBux are no longer accepted in payment of taxes.  Specie, foreign hard currency, or in-kind only, thank you. 

Fri, 05/13/2011 - 06:37 | 1271069 equity_momo
equity_momo's picture

+ logic

Thu, 05/12/2011 - 14:49 | 1268894 NotAllowed
NotAllowed's picture

Perhaps they want a system implosion.  How else will they be able to not pay any SS, Medicare, and Medicaid benefits.  I'm thinking this is an engineered collapse, if not than QE has to happen.

Thu, 05/12/2011 - 17:18 | 1269605 Ying-Yang
Ying-Yang's picture

Not Allowed... I've been thinking the same thing but then we would be called conspiracy theorists.

 

System fail and PTB restart NWO the way they please.

Fri, 05/13/2011 - 02:06 | 1270916 FlyPaper
FlyPaper's picture

Have talked this over with several people.  If you wanted to fix the US Economy (and Obama knows what is happening) - why would you jump in with a budget-busting entitlement like Health-care?  Why would you run 1.6t deficits?  Why would you stop new oil drilling in the gulf?  Why would you pass "finance reform" and fail to reign in taxpayer-insured entities like the too-big-to-fails?  

Either the big O is brain-dead (he's not) or he has another agenda.  Perhaps: Hope and Chains?

Thu, 05/12/2011 - 15:10 | 1268911 SheepDog-One
SheepDog-One's picture

For everyone convinced we just 'QE to infinity', do not forget the obvious fake 'Bin Laden assasination' setup for the terrorist attacks on major US cities the govt is presently warning us about. Theres a LOT of other things going on in the world other than just printing money to pump up stocks. Stock markets are not the end game, just a diversion from the REAL game.

Thu, 05/12/2011 - 16:42 | 1269436 aerojet
aerojet's picture

You got two junks, but the whole Bin Laden thing stinks to high heaven.  They killed the  actor who played Bin Laden and CIAQaeda even made a press statement to corroborate it, which to me was the tip-off.  Al Qaeda is not real.  The people fighting the US in Afghanistan are an insurgency, but they are not Al Qaeda.  It's our own tax dollars on both sides.

Thu, 05/12/2011 - 17:08 | 1269539 Abitdodgie
Abitdodgie's picture

Dirty bomb before June 10th major US city.

Thu, 05/12/2011 - 18:57 | 1269943 j.darkness
j.darkness's picture

I agree, definite set up for false counterstrike.  I think also nuclear, but where?  wont be LA cuz we need hollywood to manufacture consent.  Probably not san fran cuz wiping out silicon valley is bad for the MIC.  Atlanta?  Also has to be a credible target, houston?  where was that FEMA exercise a couple of years back where 7000 people were evacuated?  BTW lets hope FEMA NLE 2011 is just an exercise!

Thu, 05/12/2011 - 18:39 | 1269894 smlbizman
smlbizman's picture

and it will be blamed on iran than we will invade, blah blah...they just dont care about appearance at all 

Thu, 05/12/2011 - 14:50 | 1268912 unclebill
unclebill's picture

Zimbabwe.....

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