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Hugh Hendry Interview With King World News: "If Inflation Is A Monetary Phenomenon, Hyperinflation Is A Political Phenomenon"
In which we learn that that outspoken iconoclast has now taken on a $2 billion short position in Japanese credit, although presumably not cash-based as Ecclectica is well under that in AUM. For those who wish to recreate this position synthetically, we refer you to Dylan Grice's ATM swaption in the 10Y10Y forward which is the cheapest way to follow in Hugh's footsteps, and, ahem, may we remind you of Takefuji's recent bankruptcy...). His bet is in essence a gamble against the "China will never fail" bandwagon: "I am just intrigued as to the optionality, as to the profits that could be made, should that revert. And because it's deemed to be impossible, the trade is actually asymmetric. By golly if I am right, I can make a lot of money." Another topic is the already much discussed malinvestment in China, which was the centerpiece of the argument between Hendry and Faber from some time ago (link for clip). But back to what actual things Hugh is doing, he gives the following specifics: "I am shorting 10 year industrial corporate debt with 1% yield. Should this ricochet, which began in America, should the west be grappling with fears of recession, it goes to Asia, it goes to China, and I do not believe they have the vitality and consumption to pull the global economy out." And just in case there is any doubt how Hendry view the endgame, here it is:"At these immense levels of yen strength, Japan is bankrupt. And when it's bankrupt it has given up hope, and there is huge political legitimacy to then do quantitative easing, which leads to the debauchery of the system." In other words: the nuclear response of monetary debasement is certainly coming. We won't spoil what Hendry says on gold (suffice to add the following quote: "We will see a joint meltup in US Treasrys and gold") - for his insights on where the metal will go, for a shoutout to all Zero Hedge Hugh Hendry fans, and for much more, listen to the whole interview.
Full King World News interview.
And for those who may have missed it the first time around, here is arguably the most succinct and comprehensive interview with Hugh from earlier this year, titled "I would recommend you panic." Slowly, his advice is being taken by every central banker in the world.
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Hugh Hendry FTW
However, can't help but think he has an agenda as well - he is a fund manager after all.
A visit to KWN website listening to all the latest interviews has become a weekend treat to me. Hats off to Eric King.
Me too. Or if I didn't get my fix, Monday morning after I get the kid off to school.
Dan Norcini getting a weekly gig over there. About time people started listening to him. The guy knows of what he speaks.
Today the Gold Bitchez are vindicated once again. LMAO.
***Great Info- China***
standalone mp3 file
And still being vindicated. On silver too. Even as the dollar melts. What a screwed up triumph. This moment was built into the weave, long ago, and yet it still has to be played out. Wish some of the players had the honesty to admit it. At least Gold is honest.
"Mom? What are you listening to?"
"Well, honey, let's call it a play-by-play of the end of the world as we know it."
This isn't a special interest topic. Hendry is a prince of truth.
We don't talk much anymore, hope you see this. You typically come in late on threads. I still love you, ya know. Wish I could talk to you in RL. There are so many preps I come up short with and don't know how to turn with my resources. Won't get hubby to randomly sell the house. His biz is here, now. Anyway, know that when you post, I ALWAYS stop to read. Even when threads get stale and you post late. Glad to see you.
If only I could thank you with the wit and warmth of CogDis. Merci.
Recently a close friend asked me why I'm not dating, going on vacations to Europe like before, grew a beard, why I get so many camping outlet catalogs in the mail, etc.
In effect I replied:
"They talk about the Lebron, crotches, and, when they can't think of anything better to say, the weather. I remember when I was like that. These days you'll here me talk about farm animals, the human suffering in Gaza, and when I can't think of anything better to say where I just found the cleanest, least expensive, non-corrosive 7.62 over the internet."
Ignorance is bliss. (and after reading this http://www.fredoneverything.net/Juarez.shtml I realize I shouldn't be so hard on myself for wondering what the hell is going on with people - drug free ain't easy - 'cept for booze)
I just last night explained to my father that because of shadow inventories, etc that housing prices have a long way to drop. Underwater? Join the club. Millions living in their home for over a year without making a payment and that he should consider setting a threshold for cash that when crossed the payments stop (he teaches part time and has a roommate they helps pay the difference).
"You need to realize that millions should already be renting if not living out of their cars. The Rich Dad, Poor Dad guy did! You need some transition cash. You need a reserve."
Forget that I told him to buy silver a long time ago. Well, he then told me he had already burned through it on repairs and that he still needs to buy a replacement furnace. "We're in a recovery." Wow. My own dad is at the cusp. Blames himself for lack of opportunities. FICO slavery and insanity ala our mutual friend mentioned above. I don't know everything but I can thank Tyler et al for the clarity and foundational confidence of what is inevitable.
I know I sound like a mom with this, but you should date. :-)
It may need to be long distance, there are websites that have tried to get dating things going between Doomers (LATOC, don't know if that is off the ground or not, think I have seen others). But your interests, there should be women around (shooting, camping, gardening clubs?). Then you can share your world view. Granted, most won't handle it. But I hate to hear you have given up. At least stay open. You don't need a woman to be okay, but a partner sure is nice and makes the doing of it all meaningful.
Amazing short story. My cashier yesterday. I said the prices were shockingly high. He said "Yeah, it's cause of our monetary system." I said, "1913." He said, "The year they created the Fed." We both flipped out, laughing, exchanging little bits of what we knew. He told me to get silver, pre 1964 coins. How cute is that? Still a whole lot he does not know, does not get his brain around. He does not know about hyperinflation for instance. I hope you see my point. If I were a young, unmarried, woman moving through his line, well...:-)
LOL - I'll never turn down sincere counsel. I posted way back, "As soon as this thing collapses I can get on with my life!"
Not very healthy.
Seeking active, non-hippy, non-holier-than-thou, non-teevee-watcher (cinema is okay), female that loves some Lysander Spooner, knows at least one Romance language, and will do anything (firearms, ASP batons) to protect herself and loved ones.
I guess my high expectations are somewhat of a personal barrier. I can't, don't want to, and will never settle back in and get comfortable with the status quo built on lies and mass murder. It's that one thing I have on my mind, that high-pitched ringing like when a television is on but the screen is black, and not everyone can tell - it doesn't stop. Always on my mind: what's next?
I'd rather move back to Brazil and sell sugar cane juice and feijão-de-porco to tourists than do nothing - actually that sounds pretty nice. Maybe Chumba is down there already. I should do that before the worsening dollar requires my silver stash to be divided over multiple trips! Those TSA mm body scanners are GREAT for finding coin caches.
TSA Dick #1: "Lookee here."
TSA Dick #2: "More of these people each week. This is great!"
Expatriation...neh. My blood will remain in the Rocky Mountains. Plus I can't take my rifles. "You want me to be defenseless?" They'll have to come and take them.
http://www.amazon.com/Total-Resistance-H-Von-Dach/dp/0873640217/ref=pd_sim_b_6
... some things just are brotherman. Good to see you
http://www.youtube.com/watch?v=Ldj5tUfJLzM
I were a young, unmarried, woman moving through his line, well...:-) ...
I wouldn't make him do anything he didn't want too...
you guys confuse me, but that is ok. i just bought a new hair brush. well i have been using a mason pearson hair brush my whole life, just haven't bought a new one for about 20 years. but they are the best brush a woman can buy, anyway i like you guys and especially the youtube vids that you include in your posts. i feel special, cause i don't know why, cause i like them and remember them and it feels like home. ok night.
The money shot of the interview is this:
Hugh points out that multi-year bubbles tend to pop at the end of calendar decades.
1970s = commodities
1980s = Japan
1990s = Nasdaq
2000s = government bonds?
That got my attention as well. Nice observation that I have never heard before.
1970s: commodities
1980s: leverage
1990s: dot-bomb
2000s: GSEs and securitization
Wouldn't it be:
2000s = tech/internet bubble
2010s = fiat currency / government bonds
2020s = fossil fuels
2030s = nano / life extending technologies
my view
2000s = tech bubble
2010s = G10 Government Bonds
2020s = Worm population feeding on human remainings
2030s = Cockroach population feeding on worms
So enjoy your gold stash for the remainder of the decade
Get a new schtick.
You mean,
Ben Shalom Bernanke, Casino Gulog CEO.
LVS was $150 three years ago. just sayin'.
NEM still strong; the only gold miner in the s&p 500. this looks like a takeover waiting to happen.
TIF breaks higher.
can HOT close above $54 or is that the place to short it?
ummm, i think im gonna order a new tiffany tie bar. yeah.
http://2.bp.blogspot.com/_c9KotcbaiBc/R8dCPkICu-I/AAAAAAAAB3I/0nUXAgT98C...
I heard Lumberjack is in on the runway.
Does the boy come with that tie bar (pun optional)?
.
I'd love to know what you posted and took away. I know how you are on the gay issue. Don't hold it against you, hope you don't hold my openness against me. I think gay folks have a lot to contribute. They, by necessity, think outside the box. Many of them are brilliant as a result of this constant exercise that they must live daily. They have insight that you and I can't because we exist in a hetero dominant way of thinking and being.
I post something up top about china (mp3)and reposted it here so I deleted it.. sorry, no gay bashing at the time ...
But, a very unstable bunch..,nasty drug habits heroin ect, mental health issues,very high levels of disease,yikes ... who turned on the flash light. Another sign of our downfall as a nation.... We are almost at the end of the line, gulp.
If your inherent nature led you to being mocked, ridiculed, derided and dismissed by society at large, and attacked as "sinful" and "perverted" and "condemned to Hell" by a good chunk of them, you might be "unstable" and have mental health issues as well.
inherent nature
Choice. Not shure if nature is a good word. If you choose to embrace nature over God well nature is not giving it's a o.k, that a boy.... Aids ect seem to flock to this "inherent nature". Or is this bad luck?
Many, many sins abound, look at the abortions over the last 50 years worldwide. This world is a train wreck ....
.
If you are not gay, then you are not qualified to declare that being so is merely a "choice", as opposed to being inherent to the individual.
Let me ask you: if being gay were just a "choice", then who in the HELL would choose it, given the inevitable attendant complications, difficulties and social stigma?
And since the large majority of AIDS sufferers and victims are, and have been, heterosexuals, it would seem that your God (presumably the capricious and vindictive Judeo-Christian war god, Yahweh) has thereby chosen to pour out more of his wrath on them rather than on gays.
CDC statistics show that in 2007, 73% of persons living with a diagnosis of HIV infection were male adults or adolescents.
Just over half of men diagnosed with HIV in 2008 became infected through male-to-male sexual contact, around 30% of those diagnosed were infected through heterosexual contact, and 10.5% through injecting drug use.
Between 2005 and 2008, annual HIV diagnoses increased among men who have sex with men (MSM) and those who were exposed through heterosexual contact. Infections decreased among IDUs and children. Of the 182 HIV diagnoses among children in 2008, 141 were probably infected with HIV through mother-to-child transmission.
The same person that may choose to steal, sell out for money gain, sell dope, scum.
.
Your American-centric statistics prove nothing, as the VAST majority of AIDS sufferers worldwide are heterosexual, NOT homosexual. And if AIDS were really the scourge of your Judeo-Christian war god, Yahweh, upon the homosexuals, he seems to have managed to screw up and inflict it on a great many innocent victims, even within the USA.
Rarely have I encountered such a close-minded and ignorant viewpoint.
What would possibly be the advantage of anyone CHOOSING to be gay, if you think it is really a choice? The very suggestion is insulting. You Bible-thumpers are really a hoot, I have to tell you. I bet you deny geological and biological evolution as well.
Americas rapid decline into the dumbster of time really started to gain speed on the back of the liberal scum of the 60's. Look at the schools, the crap rolling of the tv, magazines, higher ed, free love, drugs, lies, the family model discarded, abortions, killings, all this fucking trash has gathered steam ... Man, and that really old book* spoke * to all these things, oh so long ago & how things would quicken. The army's gathering into the middle east, moral crisis, economic crisis,wars , wars rumors of wars.... now how did he do that....?
And the big bang gave us all this .... but yet the rest of the *Animals* just stopped evolving( I'm waiting for a IPO issued by a chimp, or build a CDO synthetic) .... Hmmmmm. We just happen to have the right amount of H2O, pefect balance, the oceans, everything, we just wound up in the right *spot* behind mars, man how lucky.
.
I can't and won't deny that the decline of the USA picked up steam in the 1960s and 1970s, but it was already most of a century in the making at that point. However, I don't think that homosexuality was invented sometime during the Hippy Era either. It was already rather an accepted fact in much of the ancient world. What did change was the rampant hypocrisy and denial of it, and that I think was for the good.
If you believe that homosexuality is a "choice", then there should be vastly MORE of it in the more permissive and liberal USA of today than there was 50 or 80 years ago. Extensive research shows that NOT to be the case, however ---- the number of men (and women!) who are homosexual, or who have had homosexual experiences at some point in their lives, has remained steady within the parameters of statistical uncertainty since the subject was first extensively researched in the USA in the 1940s.
Homosexuals, err gays, err whatever they want to be called at the moment, live in a world of lies. Let's destroy a few of these liberal shibboleths. First of all, G.R.I.D, gay related immune disorder, when it was discovered was quite accurately named. Due to rabid sodomite lobbying they had to change the name, just like they "persuaded" the APA through force of arms to stop calling their buggery a disorder.
It never was a disease, just as alcoholism is not a disease. It is an extremely unhealthy lifestyle which results in premature death. The life expectancy of "gays" is shockingly low and always has been. I am about as likely to "catch" aids as you are to "catch" a drug addiction. Hence the disparity in world wide "aids" statistics. The people in Africa are starving to death. Starving people tend to have weak immune systems no?
Homosexuals are not born that way, they engage in a destructive behavior by choice. But it would be irresponsible to say they woke up one day and said I wanna be a sodomite. Most, if not all, have been molested by another sodomite, usually while they were young. Hence the tendency of them to be very much more attractive physically than the average. They are driven by lust, an insatiable lust that is quite accurately described in the Bible when they tried to rape 2 angels:
1 And there came two angels to Sodom at even; and Lot sat in the gate of Sodom: and Lot seeing them rose up to meet them; and he bowed himself with his face toward the ground; 2 And he said, Behold now, my lords, turn in, I pray you, into your servant's house, and tarry all night, and wash your feet, and ye shall rise up early, and go on your ways. And they said, Nay; but we will abide in the street all night. 3 And he pressed upon them greatly; and they turned in unto him, and entered into his house; and he made them a feast, and did bake unleavened bread, and they did eat. 4 But before they lay down, the men of the city, even the men of Sodom, compassed the house round, both old and young, all the people from every quarter: 5 And they called unto Lot, and said unto him, Where are the men which came in to thee this night? bring them out unto us, that we may know them. 6 And Lot went out at the door unto them, and shut the door after him, 7 And said, I pray you, brethren, do not so wickedly. 8 Behold now, I have two daughters which have not known man; let me, I pray you, bring them out unto you, and do ye to them as is good in your eyes: only unto these men do nothing; for therefore came they under the shadow of my roof. 9 And they said, Stand back. And they said again, This one fellow came in to sojourn, and he will needs be a judge: now will we deal worse with thee, than with them. And they pressed sore upon the man, even Lot, and came near to break the door. 10 But the men put forth their hand, and pulled Lot into the house to them, and shut to the door. 11 And they smote the men that were at the door of the house with blindness, both small and great: so that they wearied themselves to find the door.
Genesis 19
King James Version
Insatiable lust to defile the pure, that is what was driving them then and it is still driving them today. Kinsey "discovered" that 10% of the sexual perverts he was interviewing were "gay" or had those tendencies. Somehow they managed to convince Americans that 1 in 10 of them were too. A fantastic lie. The real number is closer to 1 %. But for the sake of argument, we will go with the larger number. Look up the following numbers yourself and do the math. Roughly half of all children molested are boys. Of that number, roughly 98% are molested by men. If "gays" are only 10% of the population, then they are 10 times more likely to be a child molester. Simple math. Now if you are going to argue that men who molest little boys are really heterosexual I cannot help you.
Nations that reject God are rejected by God. Those who worship the creation more than the creator are "filled" with much evil:
18 For the wrath of God is revealed from heaven against all ungodliness and unrighteousness of men, who hold the truth in unrighteousness; 19 Because that which may be known of God is manifest in them; for God hath shewed it unto them. 20 For the invisible things of him from the creation of the world are clearly seen, being understood by the things that are made, even his eternal power and Godhead; so that they are without excuse: 21 Because that, when they knew God, they glorified him not as God, neither were thankful; but became vain in their imaginations, and their foolish heart was darkened. 22 Professing themselves to be wise, they became fools, 23 And changed the glory of the uncorruptible God into an image made like to corruptible man, and to birds, and fourfooted beasts, and creeping things.
24 Wherefore God also gave them up to uncleanness through the lusts of their own hearts, to dishonour their own bodies between themselves: 25 Who changed the truth of God into a lie, and worshipped and served the creature more than the Creator, who is blessed for ever. Amen.
26 For this cause God gave them up unto vile affections: for even their women did change the natural use into that which is against nature: 27 And likewise also the men, leaving the natural use of the woman, burned in their lust one toward another; men with men working that which is unseemly, and receiving in themselves that recompence of their error which was meet.
Romans 1
King James Version
The recompence of their error is often quite fitting as the "femme" spirit or the "dyke" spirits begin to possess and destroy their souls. Jesus(God) did not just suffer and die for "regular" sinners like yours truly only, he also gave his life for sodomites as well. I do not hate gays and neither does God. We tell you the truth because we love you. Just as Jesus can save and clean up the self righteous hypocrites of this world, he can also save and clean up any gays who call on him. Won't you trust him today? He gave his life to set you free of this terrible curse.
My invisible space daddy will kick your invisible space daddy's ass.
Not to get into your gender preference issue here, but:
"Americas rapid decline into the dumbster of time really started to gain speed on the back of the liberal scum of the 60's."
Are you not remembering the spending on the Vietnam War, the resultant default on the Bretton Woods compact, and the commodities and oil shocks? Just as a start?
Chiron in Aquarius describes the wounded community, the distrust of hope and retreat from ideals. However, it can also raise awareness of how our collective ideas imprison us in an icy world of abstraction. Chiron's last passage through Aquarius was January 1955 until March 1960. This was the suburban '50s in the U.S., a period of withdrawal from idealism. In his last address as president Dwight Eisenhower, the great general, warned America against the growing influence of the military-industrial complex. His words were prophetic, but the message has not be absorbed. Perhaps it will be this time.
Nope the 60's was a real wounding by the governmental authorities. Any time you are faced with damaging situation you have only the fight or flight domain to work with. You can fight it, you can run from it, or you can try to change it. So people in the 60's protested, dropped out, and attempted change. It was bloody, full of peace AND violence. It will be bloodier with more peace and more violence this time again. The idealism that power can police itself or is "purified" to contain only pure good motives is DEAD. What will change is going to change, what won't change will be discarded. Those who don't have the strength to keep fighting will drop out.
Peoples invisible god's with ALL power will pick fights and get hurt. Straw man arguements, terracotta armies, and invisible powers won't protect anyone. Everybodies hassle is right in front of them.
oh gawd....
You're the one holding the gun
Insert huge grin here. You know my tastes, Miles. The boy would be used up like a Kleenex in a second. I like men. But Careless likes both AC and DC. So I must, really must, tease. I won't make the boy do anything he does not want to.
Atlanta coming together okay?
MsCreant and the power of positive persuasion
Robot,
Can you explain the rise in this stock? They lost $500,000,000 last year and sit on a lot of over valued Las Vegas Real Estate. Is it just me? Have you been to Las Vegas lately, it's a freakin ghost town.
Agree ... I went to las a couple of weeks ago and I was the high roller at the MGM Grand crap tables ... with the same bets I used to be a penny ante player ... the $25 tables are now $10 and the $100 tables are now $25 and the high roller section is empty.
casinos are opening up everywhere... so less bother to go to the mainstays
and of course they get an upgrade today from KeyBanc Capital. Upgraded to a Hold! I guess they didn't want to look too stupid in this market.
Can you explain why slot machine #13 has people lined up to play it while the others stand idle? Some moron decided it was "lucky" and there you go.
Thanks, I may short that trash
Erin Burnett is looking extra scrumptious today. yummy
so, apart from his billions in shorts, he's got a 'bit' of gold after it doubling, (for his fund), earlier in the decade?...because he likes to go against the trend...and his fear is that we expect profits in potentially debased currency? So what are his 2 bil shorts gonna pay out in, bananas?
Hot dogs and tomato slices
Maybe he's taking a page out of the Soros playbook.
He'd be a fool to show all his cards.
Perhaps he has considered that should gold take what many view as its rightful place as true money, the g'ment will simply confiscate it either outright or through exorbitant taxation when you try to redeem it after the demise of fiat funny money? Denninger made this case today:
"Ok, so you say, you'll just buy Gold. Lots of people are running that meme right now - using the fear of this very collapse to drive sales - to you. It won't matter; their promise of "safety" is empty. After the currency collapses and is replaced you'll have to change your gold into whatever comes next. You will either have to prove your cost basis (and pay capital gains tax) or have it declared as "zero" (in which case you just pay tax on all of it.) Either way, you won't protect your wealth with gold - the government will steal your wealth. Guaranteed."
As with many of his rants, Denninger's premises in this post are inherently contradictory.
At the risk of sounding like im oversimplifing, Denninger's problem is that he is a giant giant nerd. His brain is hard-wired to ferret out discrepancies in balance sheets or auction bid-to-cover results... he ferrets out all these little scandalous data points, turns around and tirelessly rails "I have one question.... Where are the cops???"... then he proceeds to miss the trees for the forest in a laughably bad way, and take the wrong side of the eventual hyperinflation trade. The guy's mind is disconnected from the real world. He makes all manner of geeky references to trading, and gets way to excited about it for a guy who doesnt all provide the style back-up and preferably-- the slut back-up. The guys got his bloomberg dual monitor positioned in perfect symmetry behind his head in online interviews from his office. Take it easy Karl, skew the monitors to one side or the other once in a while. Someone should get him topless, put him on a leash and let him talk all his balance sheet banter while being led around a beverly hills porn mansion with a few sluts lying about.... i.e. let him feell the conflict with life that his perspectives entail... let him sort it out... rehab for an anti-social auditor... watch him come out after a few weeks and head straight to the coin shop, after stopping to pick up a gold rolex or two and feathered fedora
GoNadler, GoNadler, its ur birthday ... we gonta party like its ur birthday...Nadler on the other hand is hopeless. Whatever improvements of soul he can make would only come after self-actualization in a german dungeon with the hot breath of anus in his face, feces on his cheek and his glasses badly askew on his smiling mug.
Man, you'd make a good Psychiatrist! (or do you play one on TV?)
BF Skinner would be proud!
haha i know, right?!
Denninger is a stock jock and he loves his day trading game. I ignore anything he says about gold.
BTW, Hendry has stated a couple of years back that he wants to be 'like' the next Soros. He has his sights set high to make mega bucks...so do not doubt anything he says will be based on how it will effect his own book.
When it comes to the topic of gold, Denninger is as arrogantly disingenuous, and as hopelessly clueless, as Kitco's spokeshole Jon Nadler. He can do nothing to counter the growing public awareness and appreciation of gold except to throw out the same timeworn, simplistic and easily refutable strawman arguments and red herrings, and it is abundantly clear that he loves political (fiat) currency and loathes hard money as much as any central banker.
Monetary theory and history are, and will be, the intellectual Achille's heel of Karl Denninger. Read anything he has to say in this area at your own risk.
At the risk of sounding like im oversimplifing, Denninger's problem is that he is a giant giant nerd. His brain is hard-wired to ferret out discrepancies in balance sheets or auction bid-to-cover results... he ferrets out all these little scandalous data points, turns around and tirelessly rails "I have one question.... Where are the cops???"... then he proceeds to miss the trees for the forest in a laughably bad way, and take the wrong side of the eventual hyperinflation trade. The guy's mind is disconnected from the real world. He makes all manner of geeky references to trading, and gets way to excited about it for a guy who doesnt all provide the style back-up and preferably-- the slut back-up. The guys got his bloomberg dual monitor positioned in perfect symmetry behind his head in online interviews from his office. Take it easy Karl, skew the monitors to one side or the other once in a while. Someone should get him topless, put him on a leash and let him talk all his balance sheet banter while being led around a beverly hills porn mansion with a few sluts lying about.... i.e. let him feell the conflict with life that his perspectives entail... let him sort it out... rehab for an anti-social auditor... watch him come out after a few weeks and head straight to the coin shop, after stopping to pick up a gold rolex or two and feathered fedora
GoNadler, GoNadler, its ur birthday ... we gonta party like its ur birthday...Nadler on the other hand is hopeless. Whatever improvements of soul he can make would only come after self-actualization in a german dungeon with the hot breath of anus in his face, feces on his cheek and his glasses badly askew on his smiling mug.
the gov't can tax his stupid house and boat and stupid diesel jetta, too. And his guns and ammo and canned food.
Did it ever occur to him that people might break the law?
Bravo !
It's exactly what I think !
And anyway, could Hugh Hendry explain in which kind of scenario there will be a " joint melt up in bonds and gold ". I mean: deflationary depression, inflationary depression, hyperinflationary depression, other scenarios... ? And what about stocks, commodities, real estate, cash, currencies ?
As we are speaking about economics, a scientific matter ( even if it looks like a " sophysm " more and more ) Hugh could explain a little better his statement.
I miss the global picture, and I don't trust people who don't fully explain their statements, especially money managers " in the Bn of USD ".
So, for me, Hugh's statement is half truth and half sophysm.
Seems as though the fiats are all going to get to enjoy the interest rate trap....For kicks....just pull ot a calculator and check out the losses on a small move from 1 to 3% on a par 1%10 to 30 year bond.....
Low rates could be around for a generation....
It seems as if the new policy is that there will be no payment for inactivity "bonds"....one has to work...."do something"....or just spend savings....
My only add to this is that today is a great day to buy long term OOM puts on SPY, like Dec 2011 or Dec 2012.
I know conspiracy theories are generally frowned upon, however I can't help but notice how elegantly the Fed is killing us all. The dollar is being deliberately destroyed to make room for a new world currency and gov, this much is obvious. The global elite undoubtedly will leave us to kill each other over the leftover scraps while they are all very much safe and sound far away. Once the people are starving, frightened, and destitute, they will come in and save the day like Kissinger predicted. People will be very, very pissed off and very, very scared.
RIGHT ON POOPA!
They can't even get the euro to work, much less a one world currency.
Compared to what?
I mean what will you compare a world currency against, after they have introduced one?
the euro is worth alot more then when it was introduced. its working just fine.
There is no global elite. CB's are cutting each
others throat. All there are are a bunch of
greedy boys clubs.
It's true that CB's are at each others throats, but they are the lapdogs of the banking class. The banking class is very real, very organized, and see themselves as a distinct class. They have far more allegiance to their profession and industry peers than to their respective nations. And they are extremely ready and prepared to jump ship when their nations collapse beneath them. They are true parasites. They are dangerous. And until we begin to recognize the enemy among us, we are the losers in this battle. They are not a religion, a race or a creed: they are a global criminal syndicate. They are extremely organized, and they are ruthless.
You said it Popo. In my opinion, what is happening now is a ruse to execute the largest consolidation of wealth and power in history. The world could be a very different place in the short years to come. This is a very exciting time to be alive.
Hopefully, we'll all be cheering on the snipers that take them out, one by one.
how antisemitic
Did you hear what Hendry said about devaluation of the dollar... He thinks the plan is to devalue the dollar, pay down the treasury debt in devalued dollars, then come with a new currency. Same old game. The gold bridge across devaluation and new dollar issuance will work if you can stay off the radar...and, the hold time for gold might be rather long. Look at the time span from FDR outlawing private gold ownership and the relegalization of private gold ownership...1933 till 1970 more or less. IMO, it becomes a generational wealth endowment for the kids...works for me.
if capital had to stay in the u.s. (an artificial limit) imo the pm move following 1933 was to own gold stocks for about four years or so. however the real strength of the stock move is that gold stocks went up, generally, in the mega bear of 1930-32 such that you could be fully invested at the bottom in something that participated in the stock rally beginning in mid to late 1932, which is otherwise extremely hard, in so many ways, to do.
yes mr poopra, I fear you're right. Turd, could you address Hugh's strategy pls.
Good interview... spot on. not only is Asian not capable of sustaining global consumption, they lack innovation and will fold like a deck of cards.
Tiny Germany... will may become the center of global stability?. they have gold, heavy industry, and innovation.
Germany (and for that matter Japan) contribute zilch to global growth right now. Why do you think that will change when Armageddon wipes out the US economy? Real problem now is that Germany and Japan do not consume enough.
I don't believe Germany can be the world economic engine.. but Germany will be stable compared to the rest of the International political , business climate. Unless the US has a back-up, master plan, that includes gold in relation to the dollar the world will fall with Americas fate. Germany has the means to regain economic vitality that others don't. Japan has China as an historic foe and in a crisis that will show.
Growth of consumption and not the creation of wealth is at the heart of this crisis.
To hell with consumption growth - I want none of it - it has destroyed my country and its admittedly flawed but noble and fragile culture.
I want real innovation baby, not more fucking useless junk.
You speak like Me D of C. But boy, try getting some true in-ovation out! It's worse than pulling teeth.
I should know!
ORI
http://squareandc.net/Auto%20for%20Website.html
Germany has ONLY 80mt in inland.
The rest is being held in the US amd UK!!!
NO GOLD IN OLD GERMANY! Fucked!
If so... perhaps Operation Barbarossa II could be sent into India?
They asked for repatriation, what ever came of that?
A big bag of nothing. From my understand is the Germans asked for it back, there was some unease in Washington about it then nothing. My guess is that it was explained to Germany that they are SOL on their gold and they should have know better not to let someone else sit on it. After all what can the Germans do? Are they going to stand up and scream "The Americans took our gold" to wit the USA will so cleverly respond "Nah uh!". Even if they could prove that it was sold out from under them, it does not help them. It would send panic in the markets, ramp gold up, and the Germans still would not have their gold. If they keep it quite maybe Zimbabwe Ben kicks them some money and they can try to buy some in the open market, or use their own money to buy in the open market. No idea how that fits into them planning on selling 6.5 tons, tiny compared to the alleged holdings they have.
There was some scuttlebutt in the comments over at FOFOA awhile back about the Saudis using their gold to back the EU/Germany. FWIW
but...but...it was in an ALLOCATED account!!!!!11
German gold has already been leased and sold, surely.
Fail. Japan bankrupt? All the Japanese government debt is held by Japanese.
Right, so it's just their citize...oh wait.
Are you saying citizens will just say My Bad and walk away when the government is unable to pay them back and they declare bankruptcy because their retirement fund was just wiped out. Or do you think they will be able to monetize it without de-stabilizing the currency. I hope we can agree that they are not going to be able to pay it back with austerity measures. Therefore please provide a historic example where debts are defaulted on and it didn't matter or are you saying this time it's different.
It's all political / governmental!
"She" in this instance would be Kali -- saving is NOT in her vocabulary!
Did you also hear where Hugh says that gold enthusiasts are jumping to the last chapter in expecting a hyperinflationary run up, ahead of a deflationary event? Probably not.
deflationary event will mean the dollar goes worthless as the US defaults on its debt. Gold still wins.
The whole inflation/deflation debate has got to stop. Gold is a hedge against your country being run by criminals and their lobotomized front men. It continues to go up because there is no end in sight.
drwells, you just expressed the exact same thought that I have always held as well, but for which I always failed to find the proper words. Bravo!
Hendry has that ChariSmaticalness about him. He harangues in a Scottish brogue. He seems so passionate and convincing. He even looks as though he might have some asian genetic background. That would ring true as the Jardine-Matheson company had long ties with China and asia. His style on camera is so contrarian, even nearly intoxicated kung fu master-like that I am suspicious. His seemingly strong knowledge of China and bonds and China again are so seductive.
If I were to place a manchurian candidate or officer-candidate that would be the pedigree I seek. Hughbert seems unnecessarily argumentative and enjoys combat for the sake of combat. He is a fight club money manager using YOUR face when he death-wishes a beating. His performances are spectacularly opera. I would be careful, grindingly diligently careful about his advice.
But that is true for all who do not obtain their daily bread by the sweat of their brow but by the levered positions of client funny money. Fiats breed distortion, CBs play weighted house dice to benefit themselves and cronies. Global systems in dire morbidity have nothing to lose. And with nothing to lose, they lose it. Beware the death throes of a dynastic giant elephant when one is immoveable grass. That carcass can block the sun longer than you can stay solvent or photosynthetic.
"Beware the death throes of a dynastic giant elephant when one is immoveable grass. That carcass can block the sun longer than you can stay solvent or photosynthetic."
Brilliantly said! Awesome! A wordsmithy award your way Mr. Stawhisky!
]ORI
!
bravo... or brava...
just now read your post after posting a very similar post myself just now further down the page:
Yeah, heres Hugh back right around a year ago, basically saying the same thing. Gold at 1047, and Hugh saying its not "contentious" enough, and "thairrrfore, im not in it [gold] presently"...
http://www.youtube.com/watch?v=IScW33TP7Xk
So 1309 today- he wouldve been up 25%. Not sure what returns these guys consider acceptable but anyhoo...
I have a 150 iq, and as luck would have it, Im not convinced im human. Hugh Hendry is sometimes fun to listen to. He's clearly brilliant by normal standards. I sense his mortality too often though, most clearly through his many verbal flourishes, which arent backed up by enough muscle-power, essentially. He's often pointlessly combative -- its very entertaining of course when the target is someone like Dogshit Professor Sachs of Columbia-- but too often his somewhat grating belligerence in interviews serves no purpose other than to be grating. I think he missed his calling as a poet. I mean clearly the guy's the most poetic of hedge fun managers-- and its somewhat remarkable that in the economy of a human soul, that there should be so much room for poeticism and, at the same time, for clear bottom-line thinking. But then his muscle power is lacking, and his celtic vagaries of thought fail to inspire, and he takes the wrong side of a trade or two... In a way the guy is unbearably annoying to listen to... you guys know what i mean obviously..... all and all though, hes still a good shit.
"The four socially and personally most important threshold regions on the IQ scale are those that differentiate with high probability between persons who, because of their level of general mental ability, can or cannot attend a regular school (about IQ 50), can or cannot master the traditional subject matter of elementary school (about IQ 75), can or cannot succeed in the academic or college preparatory curriculum through high school (about IQ 105), can or cannot graduate from an accredited four-year college with grades that would qualify for admission to a professional or graduate school (about IQ 115). Beyond this, the IQ level becomes relatively unimportant in terms of ordinary occupational aspirations and criteria of success. That is not to say that there are not real differences between the intellectual capabilities represented by IQs of 115 and 150 or even between IQs of 150 and 180. But IQ differences in this upper part of the scale have far less personal implications than the thresholds just described and are generally of lesser importance for success in the popular sense than are certain traits of personality and character."
Arthur Jensen. (1980). Bias in Mental Testing. New York: Free Press, p. 113.
Dude, in spite of the irritation I feel for your continued harping about your putative IQ of 150, I feel for you due to your misunderstanding of its meaning and implications. I hope you work out this confusion regarding your species, i.e., humanity. I mean, that's some profound confusion.
As a psychologist who has performed enough IQ tests that I no longer need to administer the test to estimate someone's IQ with pretty damn good accuracy, I gotta tell ya that having an IQ in the 99th percentile makes you nobody extraordinary at ZH. Geniuses are a dime a dozen around here. As someone of sufficient intelligence to do so, I would expect you to recognize this.
Why not find a psychologist who understands both high IQ (note that I don't fall into confusing IQ with meaningful "intelligence" per se) and humanity to help you figure things out?
Hey, I don't mean to flame you . . . it's really detracting from the impact of your posts and as a feeling guy I can imagine the pain it's causing you elsewhere.
Let me recalibrate the discussion for you, because my first phrase or two seems to have sent you running off into a maze of emotions and unnecessary reasoning, an obstacle course for yourself littered with all kinds of assumptions. That is to say-- almost all of what you say, I already know, and even if I disagree with the truth or value of some of your viewpoints, I'm already aware of their existence.
If my first few words were, "I am God, I have the power to destroy the Earth and galaxies," would this elicit a treatise from you on physics, history, psychology and religion? Or would you read it and move on to assessing the rest of what I say in a psychologically unencumbered way?
Anyway, let me recalibrate the discussion for you. When I say, "I have a 150 IQ," you (not others) should read, "I'm a damn good drag racer on the streets of San Fernando." At least then you'll (possibly) have a better sense of my personal investment in the phrase.
"I have a 150 iq"
Oh my son, Pride goeth before destruction, and an haughty spirit before a fall.
"and as luck would have it, Im not convinced im human"
Perhaps you are simply demon possessed?
FWIW 150 is not that high
im short on time, so i guess demon possessed is a decent approximation for now.
And no shit, but among demons possessed, 150 is astronomically high,... again, FWIW
Shorting 1% corporate 10 year debt? Not easy for retail accounts, but what's to lose? Are rates going to -2%? Could be. Sanity doesn't enter the calculations any more.
that would be long.
My first post, the end.
Concentrated power has always been the enemy of liberty.
Best quote of the full interview about "GDP growth can destroy wealth"
I think the US has proved that and the US is running faster and faster in the GDP growth at all costs hamster wheel.
US is trying to reverse engineer wealth creation. As long as stocks go higher and GDP numbers look good, everything is wonderful.
According to Maxwell's equations, a generator can be used to send a motor to spinning, and a spinning motor can actually generate elecricity, so long as the spinning force is something like water power, etc. This concept does NOT translate to the creation of wealth/value, as the Fed and the World will soon find to their chagrin.
"reverse engineer wealth creation" . . . that's a good one! Too bad it's not really a good faith effort to actually create wealth, eh?
GDP growth that comes as a result of borrowing does destroy wealth. Just look at the US: since 2001, we've borrowed approximately $7 to get $1 in GDP growth. How the hell is that sustainable? (Spoiler alert: it isn't.)
" How the hell is that sustainable?"
It isn't...and it underlines just how much a joke 'government spending must increase when private spending decreases' is.
Governments do not do anything to create wealth, they merely redistribute whatever income they have from taxes, fees, etc.
Real wealth can only be created from savings of excess labor and intelligent investment of the excess savings into profitable ventures.
The Austrian School is dead right about this. Governments do not create wealth, they destroy wealth by misallocation of capital.
GDP as calculated in the US and most other soverigns is a total farce.
Oh well, better cancel that GMCR interview....
Down $4.00 after missing after hours.
Coffee and Sugar are both up 3% today.
My only question is did he buy a CDS on the 10 year Industrial Debt? If so then who the hell is going to make good on that CDS if the sh*t hits the fan? He'll be in the same boat as the AIG CDS holders were in. Without a government bailout the CDS writer will be unable to pay. The last time I checked tax payers would rather char-boil the next politician who suggests another Goldman like CDS bailout.
Hugh, if you're reading this I'll write that 2 Billion CDS for HALF of what you paid. Contact ZeroHedge for my email and contact information.
I'm sure Hendry is smart enough to write mark-to-market covenants into his CDS agreements. Periodic margin payments negate this issue.
"Periodic margin payments negate this issue."
That's assuming a nice orderly collapse spread out over many months. How many financial collapses have been nice and orderly?
CDS holders got paid-out on AIG. One way or another, the winner usually collects...
"CDS holders got paid-out on AIG. "
They got paid in government bail out funds. Without the bailout CDS would have been null and void. Taxpayers aren't going to be so accomodating next time.
The bigger picture is CDS are only possible with the taxpayer backing. Without bail-outs CDS would go the way of the dodo as a collapse couldn't be absorbed within the private financial world. CDS are brain dead and we'll only have to tolerate them for about 5 more years max.
Taxpayers aren't going to be so accomodating next time.
You say that like they have some sort of choice. That's so cute.
good point...I forget we live in a coin operated democracy sometimes. Thanks for keeping it real.
The rumor is that the for/against ratio of calls/emails/letters for the last CDS bailout in congressional offices was b/w 1:10 and 1:30. Of course they listen to their constituents...
Epic! Bumper-sticker millionaire in the waiting.
Aside from collateral and margining, there is a way to explicitly hedge the counterparty risk embedded in the financial system.
If the whole thing goes up in flames, then you're right. Who cares.
"If"..ah, at this point I'd say "When" the whole thing goes up in flames. There are something like 500 Trillion in CDS and other financial weapons of mass destruction out there while the entire worlds net worth is around 50 Trillion. You do the math, I'm too tired to explain it.
I don't disagree they will go away as they are now, but the concept of credit risk insurance isn't going anywhere.
It will revert back to the Lloyd's of London/retrocessionaire business where tail risks are collected and priced by hard-won experience (which may blow up too).
The AIG "warehouse model" where you have ungodly risks priced too low so as to draw massive volume is what will die.
You may be right. And a few years ago I would have aggreed with your logic. But that Put Option/CDS contract that Hugh Hendry bought was written by someone who could live for the rest of their life on the bonus they'll make on it. If that CDS goes against him he loses his job and guess what, GET'S TO LIVE OFF THE PREMIUM HE JUST MADE. Heck losing his job would do him a favor. Our financial system is still built on the rock solid reality of people getting huge sums for a contract that has just about ZERO consequence. The CDS writer is in a Win/Win.
You can mention Lloyds of London all you want but our current financial system is within a hairs breadth of getting flushed down the toilet.
Enjoyed this chat. thanks for the views.
My thought exactly, what is the probability of getting screwed if you are right and up 50x.
Hugh would "recommend you panic."
We would recommend you "TradeWithDave.com" where we recognize that the "nuclear option" is literally that. Are these weapons worth their weight in gold? Plutonium... the original precious metal meltup helping world leaders find perspective since August 6, 1945. Stand-by for the news of a major gold heist coming to a central bank near you.
"Plutonium... the original precious metal meltup" Now that is a stroke of verbal genius.
"thanks for the article, TD. got off."
Kathy, got anything else going on besides sexual innuendo? Sincerely.
.
"."!
There's a hormones a flying at Zerohedge.
Put her in the TeePee downwind!
The US Treasury has just announced that China’s official holdings of U.S. Treasury securities declined by about $30 billion between April and May of this year, from about $900 billion to some $868 billion. According to the US authorities, this means that Chinese holdings of US government paper are now at the lowest level in the past year. A 2% to 3% decline in a month does not qualify as massive dumping, but simply means that China is in the process of diversification. It is also very likely that China has more U.S. Treasury bonds than this official count would indicate, quite possibly through proxy purchases via Hong Kong and other places.
With the sales of existing homes in the United States falling by 27% this morning, together with disastrous statistics regarding unemployment and foreclosures, it ought to be obvious that the US economy is in depression. Even experts interviewed on CNBC are beginning to wake up to this obvious fact.
World Bond Bubble
On August 24, the Treasury’s two-year note reached its highest price in recorded history, meaning that the yield was at a record low. The entire world is piling into short-term U.S. Treasury paper, and many buyers cannot get enough. This makes a mockery out of the right wing reactionary refrain that the US equals Greece and soon will be unable to borrow. If, according to the crackpot Austrian theory, markets know things that individual humans cannot know, then surely the market is signaling a great desire for T
Treasury bills and Treasury notes at the short end. The main reason for this demand is of course fear and panic – coming from the growing awareness that the world is indeed experiencing the second wave of a world economic depression of colossal proportions.
There is now a large-scale international bond bubble involving, among others, US treasuries and German Bunds. Since the flash crash of May 6, many investors have fled the stock markets entirely. It is still too soon to sound the alarm on deflation ahead, but deflation has now appeared over the horizon as a concrete possibility – partly because so many major financial players are now convinced that deflation is the wave of the future. If this were to come about, it would mean a depression looking much more like 1929-1933 than the relatively more mild situation we have experienced over the last two years. The depression may be taking a turn toward something far more excruciating for the masses of the population. One by-product of that would be vastly decreased popular gullibility for the anti-government recipes of the libertarian Austrian school, which are tailored for those who have money, and which have very little appeal to people who are unemployed, homeless, and starving.
Also on August 24, the Japanese yen hit a 15-year high compared to the dollar, and a nine-year high compared to the euro. This kind of currency championship is a Pyrrhic victory which nobody wants, since it means the Japanese exports are in the process of being strangled. This is true currency chaos and world depression at the same time, pointing once again towards the urgent need to restore the fixed rate system of Bretton Woods, which was destroyed 39 years ago this month by Nixon and Kissinger, urged on by Milton Friedman and other snake oil economists.
For the past year, the main thrust of the London and New York financial centers has been the effort to export the Depression into Europe by means of a speculative attack on the government bonds of Greece, Spain, Portugal, and some other countries, all designed to provoke a panicked flight out of the euro, which would in turn allow the Anglo-Americans to loot and asset strip the accumulated wealth of the old continent. This was not a market event, but it orchestrated strategic attack, inspired by such figures as Soros, Einhorn, and Paulson. During July and the first half of August, it became apparent that this Blitzkrieg as originally planned had failed to reach its objectives. But the Anglo-Americans, one-trick ponies as always, maybe persisting in the assault. Fail
We should panic,,,/ Gold / Silver....Food
Geo
Wow really trying to group the Austrians in together with the crony capitalists. Yes I'm quite sure that Austrians call to end the Fed and the market intervention which makes the markets mostly meaningless is a secret plan by Mises and Rothbard to create an unholy hell where a man can keep what he earns. What a nightmare it would be not to have a booted thug standing on my throat extracting wealth from me, may God save me from such a horrific fate! Surely little people like me need a strong leader to take my work and redirect it somewhere worthwhile.
/sarcasm
So how familiar with Rothbard are you? Now I expect you to fire off with some bit about Rand. She was a nut, this is not about her. And now you will think about Greenspan, he was a sellout. Claiming to be something does not make it true, otherwise my claims to be a international wealthy rock star would be working with the ladies. The real leaders of the Austrian school were Rothbard and Mises and I can't remember reading about their support of crony capitalism. But they did seem to be in favor of freedom and a person being able to direct their lives as they seemed fit.
Moving away from crony capitalism to socialism is not a move up in the world. What does it matter to the common man if he is looted of his labor. It's freedom or slavery, it matters not if it's to a banker or a bureaucrat.
Unfortunately, "popular gullibility" will be for Govt. to save us from the mean old "free-market." I'm extremely pessimistic that you and I will be in the majority when deciding how to fix the World Economy.
Before I get into that, I suppose by now everyone has noticed that China is trying to diversify its reserve holdings and is reported to be buying more Japanese yen and Korean won, and perhaps other currencies. In my entry six weeks ago, I argued that the fear that China could disrupt the US Treasury market by dumping dollars was totally unreasonable. The latest news support my argument, I think. First, it is pretty clear from the recent performance of the market that the vigorous attempt to diversify PBoC holdings has had no disruptive affect on the US Treasury market.
It cannot. The world has a problem of too many countries eager to increase their export of savings and too few increasingly reluctant countries importing savings. Too-little foreign financing won’t be an issue for the US Treasury, it is too much foreign financing that the US must worry about. As if to prove the point, the Financial Times had an article Wednesday with the title: “Foreigners flock to buy US Treasuries.” I am pretty sure they will continue “flocking” for many more years.
I pointed out in my piece six weeks ago that if the PBoC switches from dollars to some other currency, one of two things must happen. Either the recipient country buys dollars to keep its currency from surging, in which case the US gets the money anyway, or the US trade deficit will be transferred to the recipient country, which will cause trade tensions with China. Wednesday’s South China Morning Post already has the Japanese financial authorities threatening intervention because the rising yen is hurting exports — although apparently it is not just PBoC buying that is forcing up the yen.
http://mpettis.com/2010/08/have-we-underestimated-chinese-consumption/
Right, so we don't see a collapse, because everyone's trying to rush through the door, but the fact that so many entities try to walk through the door at the same time means they all block eachother.
That is a completely unsustainable situation.
Even the smartest German Shepherd will occasionally consume its own defecation. Obvious Mises2Feces misunderstanding here. Love most of your illuminated diatribes, but you blew it here.
" The entire world is piling into short-term U.S. Treasury paper, and many buyers cannot get enough."
You are welcome to drink this koolade if you prefer.
I believe that without massive covert buying of treasuries by the Fed the US bond market would have already collapsed.
you guys aren't 'getting' what bond demand means.
i mean, we see "TPTB" conspiracy illuminati trilateral theories around here all the time, and people can't put 2+2 on the bond sales? Bonds are claim tickets for a liquidation.
Look at what Icahn did with Blockbuster...he amassed a big share of the claim tickets in the preferreds and debt instruments and so that gets converted to EQUITY in the BK.
What is equity? It's proportional OWNERSHIP. If the US liquidates, it would be via default; there is your bond bubble collapse. But that hasn't happened yet. So, people are stockpiling, competing with each other to grab shares of claim tickets. In a BK, existing equity gets wiped out and debt is converted to new equity. The bondholders take over ownership of the company.
If you own real productive assets, what does it matter the denomination thereof? Carlos Slim doesn't care how many zeroes are on the paper; he owns a share of your life because he has productive infrastructure throughout latin America. In any currency, you have to work some and he gets the fruits of that in trade for use of his cellphone towers, for example.
It's the ultimate rentier trade. And it has worked MANY times in the past. If you look at Colombia or Argentina, you see a situation where gov't debt was well-bought even when default was easily foreseeable. But, having these claim tickets ends up getting you ownership of national physical assets, oil, gas, telecom, power, etc. These are real things which generate real income. Essentially, Spanish banks and companies RENT a lot of South America to South Americans.
I have a tendency to panic when some pea brain attacks austrian economic theory in favor of currency controls. If they make disparaging attacks without arguments in support, I usually just dismiss it as ignorance- but Geopol, you usually have a point to make worth reading.
Perhaps if you took time to read and understand the underpinnings of anarcho-capitalism and the benefits for the poor, unemployed and starving, you might change your opinion? Especially since it would improve unemployment, enhance market signals creating greater production at less cost- more food, cheaper housing, etc and allow more opportunity for those willing to work, save and invest.
The very people you want to re-introduce the currency controls are working the levers of currency destruction- it is their creation of fiat money that makes it possible. Great idea! Put Satan in charge of legislating fairness! Yeah, that doesn't work for me...
The depression may be taking a turn toward something far more excruciating for the masses of the population. One by-product of that would be vastly decreased popular gullibility for the anti-government recipes of the libertarian Austrian school
So what you're saying is that the catastrophic failure of those economic and fiscal policies which will have brought about this coming collapse will lead to ... increased support for more of the same policies?
Ok so explain to me how the Austrian school rails against the Fed and the interventionist crony capitalist but you group it up with the crony capitalists? Is it reverse psychology? I would advise you to actually read about the Austrian school and just not believe every straw man that comes your way.
And again just because Greenspan claims he loved markets means nothing. A man can say ANYTHING, it's his actions that count. Do you also believe what every politicians says about themselves and their beliefs? Do you judge Bush or Obama by their deeds or their words? And if so would you care to buy some wonderful property in Arizona, you can see the ocean. Cool, clean, crisp Arizona Bay!