If The Mountain Will Not Come To The Muhammad, The Revolution Will Come To Saudi Arabia On March 20

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Wed, 02/23/2011 - 10:58 | 988290 Misean
Misean's picture

Things getting hot in a dessert...good one!

 

Wed, 02/23/2011 - 11:03 | 988310 Pool Shark
Pool Shark's picture

Cherries Jubilee?

Wed, 02/23/2011 - 11:16 | 988391 Jack
Jack's picture

If the petrodollar collapses, I'd assume China would also take that opportunity to dump its dollar reserves.  

 

Jubilee all the debt preemptively.  Why not?  The chaos of a US default can't be any worse than a dollar collapse.  Oil disruptions are likely either way.  At least this way we could try to manage it ourselves instead of having it dictated to us.

Wed, 02/23/2011 - 11:24 | 988416 A_MacLaren
A_MacLaren's picture

Jubilee all the debt preemptively.  Why not?  The chaos of a US default can't be any worse than a dollar collapse.

In a Debt as Money system, Jubilee = Default = Dollar collapse.

Unless you've actually seen B52 Ben loading paper script onto dipenser wings, digital dumplings don't do it.

Wed, 02/23/2011 - 11:29 | 988450 Jack
Jack's picture

Debt default is different than hyperinflation (dollar collapse).  Defaulting would cause asset price collapses, but the dollar would be more likely to retain value.  Inflating props up asset prices, but makes it more likely the dollar collapses to valueless.

Wed, 02/23/2011 - 12:04 | 988604 cartonero
cartonero's picture

Correct.  If debt=money, extinguishing debt=deflation.

Wed, 02/23/2011 - 12:12 | 988647 naughtius maximus
naughtius maximus's picture

For those still scratching their heads, watch the excellent video "Money as Debt" by Paul Grignon.

 

http://video.google.com/videoplay?docid=-2550156453790090544#

Wed, 02/23/2011 - 12:31 | 988730 Eally Ucked
Eally Ucked's picture

Sorry I'm confused, what really is the value of dollar?

Wed, 02/23/2011 - 13:19 | 988983 topcallingtroll
topcallingtroll's picture

the dollar is worth about one federal reserve note.

Wed, 02/23/2011 - 13:32 | 989064 Eally Ucked
Eally Ucked's picture

You mean paper+ink or something else I don't know of?

Thu, 02/24/2011 - 01:42 | 991945 chumbawamba
chumbawamba's picture

A pound of pubic hair would cover it.

Barely.

Get it?  Barely?

;)

I am Chumbawamba.

Wed, 02/23/2011 - 16:18 | 990018 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

Sorry I'm confused, what really is the value of dollar?

http://www.youtube.com/watch?v=_N8nWexJ2pY -- it's five minutes, but it's worth it if you haven't seen it.

Wed, 02/23/2011 - 12:35 | 988747 A_MacLaren
A_MacLaren's picture

In a Debt as Money system, Jubilee = Default = Dollar collapse. 

Those so called "assets", bankers assets, become worthless.  The banks become even more insolvent and less able to lend.  So you assert Ben's digital presses crank up even harder to take onto his balance sheet discredited (pun intended) debt? 

How is it you maintain that the dollar would be more likely to retain value?  Printed currency might.

If it were a pure fiat, yes, there might be some chance of value being retained.  But when "asset" prices collapse beginning with the "fixed income" side, tilting "balanced portfolios" out of balance, equities are sold to rebalance, driving down equities, leading to the spiral witnessed in '08.  Leverage is a bitch.

Moreover, defaulted loans assure the transperancy of bankster insolvency, no accounting gimmicks cover that up.

Under that situation Ben cannot buy the trash he bougt last time, because 1) he already has it and it is worthless, and 2) the curtain has been pulled back revealing for all the emperor has no clothes, there are no "assets" on Ben's balance sheet.  If this would not be the ultimate confidence evaporator, I don't know what would be.

Ultimately, the value of the dollar collapses, welcome to Weimar.  so again, how is it "but the dollar would be more likely to retain value"?

Wed, 02/23/2011 - 12:52 | 988810 Jim in MN
Jim in MN's picture

First must analyze underlying assets v. stock of monetary scrip.  Then perhaps some tweaking from the 'powers that be'.  But ultimately the value is the value, and the amount of scrip needs to be assessed against the value of underlying assets.  Which is why measuring v. gold or loaves of bread or barrels of oil can be illuminating.

Central banks and their allied banks will fail if their objective is fraud.  The market will out.

So take a simpler example first: I have a loan against a $100 toy house.  You hold the loan/collateral rights.  Too many toy houses get made so the house goes to $50 in value.  I default.  In the first instance, you are hosed and the currency's value changes not one iota.  The asset has reverted to its intrinsic value and everyone acted rationally.  You do, by the way, own a $50 toy house now.

You panic and ask Daddy Bernankbux for another $50 to 'make you whole' and a $10 bonus because you are bunk buddies.  He falls over himself to oblige you.

Now it turns out that you are the only bank in the playroom.  I already spent the $100 you gave me to begin with, so it's circulating with that nasty Sally girl.  With the bailout, there's now $160 in the playroom.  In principal everything now inflates, so the toy house itself is now worth $80.  Which is nice because you still have the whole $60 Daddy gave you.  But then you go to buy a lollipop.....or a plastic gold coin from the pirate chest....

Meanwhile, more toy houses are coming on the market as more kids default....

This is why socializing losses destroys the economy.  Now get out of my sight and stay out of trouble!

Wed, 02/23/2011 - 12:55 | 988813 Jack
Jack's picture

Because under default, with the insolvent banks going under, stock prices collapsing, and all those things you describe, the quantity of dollars notional will drastically plummet.  The money supply will be much smaller, ceteris paribus, debt-deflation will mean dollars buy more.  This is the primary argument the deflationists are giving- that Bernanke will be unable to paper over the completely insolvent system.  Generally opposite from this is the hyperinflationist view that Bernanke is trapped and/or has already printed so much money that hyperinflation is assured.  

 

I will agree with you to a certain sense that you could actually get both if, for example people completely lose all confidence and refuse to trade in dollars any more.  But sovereign default makes hyperinflation much less likely than continuing to print to finance the economy.

Wed, 02/23/2011 - 12:49 | 988806 sunny
sunny's picture

If the petrodollar collapses, I'd assume China would also take that opportunity to dump its dollar reserves. 

We might look back on that fruit vendor in Tunisia as the black swan that everyone anticipated, no one could have possibly specifically identified.  Most interesting.

sunny

Wed, 02/23/2011 - 11:47 | 988523 jez
jez's picture

crepes Suzette, for preference.

Wed, 02/23/2011 - 12:30 | 988727 quintago
quintago's picture

conveniently a day after option expiration....

Wed, 02/23/2011 - 11:04 | 988316 idea_hamster
idea_hamster's picture

Maybe we could get a few of those items in the US?

Wed, 02/23/2011 - 11:07 | 988333 TriggerFinger
TriggerFinger's picture

meet you at the barricades near the Federal Reserve building

Wed, 02/23/2011 - 11:15 | 988378 idea_hamster
idea_hamster's picture

the barricades near the Federal Reserve building

You misspelled "Guantanamo."  ;-)

Wed, 02/23/2011 - 11:24 | 988427 Cash_is_Trash
Cash_is_Trash's picture

I revolted, protested, got shot at and rioted in the streets and all I got was this blood-soaked t-shirt.

Wed, 02/23/2011 - 12:30 | 988724 jus_lite_reading
jus_lite_reading's picture

Don't forget, American police would shoot their own citizens on command. My brother-in-law who is a Green Beret told me, they were trained to kill on demand and in one proposed scenario, to kill an entire town. They would all do it in an instant because they were trained. 

Wed, 02/23/2011 - 12:55 | 988823 Jim in MN
Jim in MN's picture

Skinner would have called it 'conditioning'....ultraviolent movies and games, etc. all pointing the same direction.  But massive nonviolent action can stop any war machine...if certain conditions are met.

 

Wed, 02/23/2011 - 12:55 | 988843 Nootropic
Nootropic's picture

The U.S. trained a significant portion of the Egyptian military.  Sure they would not balk at wiping out an Afghani village, but any old town in the U.S.?  I'm going to go with... no.

Wed, 02/23/2011 - 14:15 | 989379 arby63
arby63's picture

You mean all of those police the MSM grovel over and remind you how esteemed they are? Those heroes of traffic enforcement and fat pensions? Naw, say it isn't so...

Wed, 02/23/2011 - 12:27 | 988712 Arch Duke Ferdinand
Arch Duke Ferdinand's picture

"meet you at the barricades near the Federal Reserve building"

Vancouver BC...# 1 world's most liveable city

Canada's four Western Provinces have it all...Food, Water, Oil, Minerals, Timber AND ONLY 12.5 MILLION CITIZENS...led by gateway city Vancouver BC....Canada's/North America's Geneva of Switzerland...

 

http://seenoevilspeaknoevilhearnoevil.blogspot.com/2011/02/vancouver-bcworlds-most-liveable-cities.html

Wed, 02/23/2011 - 11:26 | 988431 scythian empire
scythian empire's picture

Is it just me, or do you know this document is non-Saudi based on bullets 8 & 9?

 

With an emphasis on 9

Wed, 02/23/2011 - 11:54 | 988553 Rodent Freikorps
Rodent Freikorps's picture

It does make you say "hmmm."

 

Wed, 02/23/2011 - 11:48 | 988505 bankonzhongguo
bankonzhongguo's picture

Just saw that King Abdullah (age 86?) just returned from Europe/hospital to SA. 

Then announced USD10 billion in low income mortgages and business handouts.

How do the Wahhabists feel about Facebook?

So is Sandhurst trained Prince Mutaib the next heir?

Any action over at Vinnell Arabia?

Wed, 02/23/2011 - 11:52 | 988536 BigJim
BigJim's picture

I can't see the bulk of the Saudi population supporting a revolution that promises:

      9 – Adoption of the rights of women and non-discrimination against them

Wed, 02/23/2011 - 10:58 | 988291 bankrupt JPM bu...
bankrupt JPM buy silver's picture

Okay anyone with options plays here?  Let me know please...

 

www.silvergoldsilver.blogspot.com

Wed, 02/23/2011 - 11:18 | 988398 topcallingtroll
topcallingtroll's picture

Buy a put and a call at the same strike price for oil

Volatility, bitchez.

Wed, 02/23/2011 - 11:00 | 988293 Mad Mad Woman
Mad Mad Woman's picture

Oh shit.  MAJOR oil shock coming!!!

Wed, 02/23/2011 - 12:33 | 988735 Judge Judy Scheinlok
Judge Judy Scheinlok's picture

Fucking Goldman Facebook shills. It's getting this easy to manipulate markets with a website page?

Wed, 02/23/2011 - 13:16 | 988967 topcallingtroll
topcallingtroll's picture

GREAT! YOU FIGURED OUT WHERE THE CAPSLOCK IS LOCATED!

Wed, 02/23/2011 - 10:59 | 988295 jus_lite_reading
jus_lite_reading's picture

Is it just me, or does it seem as if the world's leaders have pushed the "self destruct" button and are preparing to head for the hills?

Something is spiraling out of control; even Llyod is gone on vacation...

Wed, 02/23/2011 - 11:15 | 988375 Mad Mad Woman
Mad Mad Woman's picture

No, it's not just you. We're fucked.

Wed, 02/23/2011 - 11:00 | 988296 Fish Gone Bad
Fish Gone Bad's picture

Never let a good crisis go to waste...

Wed, 02/23/2011 - 11:13 | 988364 jus_lite_reading
jus_lite_reading's picture

"Even distribution of wealth."

Anyone with knowledge about chemistry, please post the temperature at which sand turns to glass and fiat money combusts...

Wed, 02/23/2011 - 12:15 | 988656 JohnG
JohnG's picture

Quartz (SiO2), the main mineral in silica sand, has a melting temperature of 4,200 degrees Farenheit, or 2,300 degrees C.

Read more: http://wiki.answers.com/Q/At_what_temperature_does_sand_turn_into_glass#ixzz1EncZMSCk Fiat, about 450F.
Wed, 02/23/2011 - 12:36 | 988754 jus_lite_reading
jus_lite_reading's picture

Thank you but I'd assume fiat burns at a much higher temp given the properties inherent in a product made to last in hell...

Wed, 02/23/2011 - 11:21 | 988407 chubbar
chubbar's picture

Any chance this could qualify for a QE 3 trigger?

Wed, 02/23/2011 - 12:01 | 988592 TBT or not TBT
TBT or not TBT's picture

Rahm may have difficulty capitalizing on this one in Chicago, methinks.

Wed, 02/23/2011 - 11:00 | 988302 It is a bargin ...
It is a bargin my friend's picture

What even after the King opened the sweetie tin

http://www.bloomberg.com/news/2011-02-23/king-abdullah-pours-money-into-...

Ungrateful gits

Wed, 02/23/2011 - 11:06 | 988331 ZackAttack
ZackAttack's picture

I'm sure it's purely coincidental how Abdullah only this week found his magnanimous side.

180K fabulously wealthy princes and 25 million slaves - hoocoodanode that social dynamic would be a problem?

 

How ya' gonna keep 'em down on the pipeline?

Wed, 02/23/2011 - 11:15 | 988376 Rodent Freikorps
Rodent Freikorps's picture

It's a desert. Blow up the water supplies. Import new workers to bury the old ones and get things back in production.

Wed, 02/23/2011 - 11:01 | 988304 gordengeko
gordengeko's picture

DIG it!

Wed, 02/23/2011 - 11:02 | 988306 Hernando
Hernando's picture

maybe one day we here in the states will also have

3 – transparency, accountability in fighting corruption
4 – the Government in the service of the people

6 – public freedoms and respect for human rights
10 – an independent and fair judiciary

11 – impartial development and equitable distribution of wealth.
12 – to seriously address the problem of unemployment

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