IMF Eliminates Borrowing Cap On Rescue Facility In Anticipation Of Europe Crisis 2.0; US Prepares To Print Fresh Trillions In "Rescue" Linen

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Mon, 08/30/2010 - 23:31 | 554401 NoVolumeMeltup
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Iceland, Bitchez.

Tue, 08/31/2010 - 06:31 | 554734 MarketTruth
MarketTruth's picture

Simply A Reminder:

"In the absence of a gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good and thereafter decline to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as claims on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to be able to protect themselves.

This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard." -- Alan Greenspan, 'Gold and Economic Freedom' in 1966.

Tue, 08/31/2010 - 07:11 | 554748 d2thdr
d2thdr's picture

Very true. Does Greenspan regret what he wrote(though it is very true)?

Tue, 08/31/2010 - 08:46 | 554834 Cognitive Dissonance
Cognitive Dissonance's picture

This was written during Greenspan's "innocent" stage of life, when he felt truth and virtue was worth more than a paycheck. Happily he outgrew this stage and progressed to "full whore" soon after.

Ironically in his twilight, he has morphed into the final stage of life, that of "old whore". In this last glorious blooming, where with little to lose he can return to those care free days of his youth, he is once again speaking about fiscal sanity and of protecting the weak from the selfish and arrogantly powerful.

At least until he is sent to sleep with the hot tub fishes.

Tue, 08/31/2010 - 10:25 | 555055 Gwynplaine (not verified)
Gwynplaine's picture

People converting their bank deposits into precious metals and hard goods... isn't that already occuring?

For real irony, check out Greenspan's article "The Assault on Integrity" (no, I'm not kidding).  It's still in print for those interested.  Search "Capitalism: the Unknown Ideal".

Tue, 08/31/2010 - 12:57 | 555463 buzlightening
buzlightening's picture

Been doin that since jan'08!  Average physical silver price on hand under 14 bucks an oz!!  In bankster gangster land 100% possession is the law among the theiving lawless rat bastards!    Guns/ammo purchased in '08 inflated by 67%!  Food/water storage as I go looking for rock bottom bargains freeze dried; whatever inflated to who knows how much!!  Certainly won't find me standing in line for food stamps, welfare check, or goon government subsidized tent city housing coast to roast!! 

Tue, 08/31/2010 - 19:55 | 556568 Buck Johnson
Buck Johnson's picture

I totally agree with you reggie, spot on.  They are doing everything on both sides of the pond to keep the appearance of market cohesion and financial stability to the public.  But many of the insiders and the govt. know that European Union should be dissolved and go back to each having their own currency and also the US govt. is insolvent and will silently default on debt.

Mon, 08/30/2010 - 23:43 | 554405 tom a taxpayer
tom a taxpayer's picture

Dam bursting!

Run for your life!

IMF = International MuthaFuchas

Tue, 08/31/2010 - 00:18 | 554472 midtowng
midtowng's picture

We're having fun now!

This is looking increasingly like the blow-off top in the failed, global fiat currency experiment.

 An entire generation of the world's wealth is destroyed for bankers and politicians? Oops! Sorry about that. We'll do better next time. Trust us.

Tue, 08/31/2010 - 04:39 | 554679 LeBalance
LeBalance's picture

"is destroyed for bankers and politicians?"

is *transfered to* the bankers and politicians?

..there, fixed it for you..

Tue, 08/31/2010 - 08:29 | 554816 doolittlegeorge
doolittlegeorge's picture

at first and both surprisingly and interestingly so.  not even the government can afford that however "along any time line" since as ZH so ably proclaims "you'll be dead if you do."

Tue, 08/31/2010 - 07:41 | 554770 The Rock
The Rock's picture

hmm, let's see... the IMF (International Murderers' Fund) is supposedly in a FiCkLe (FCL) PiCkLe (PCL)?

And the IMF is now determined to create its own version of Moore's law ---> Shall we call it "Zimbabwe's Law"?

Does doubling the amount of borrowing availability every 6 months eventually become a doubling every 24 hours?

Tue, 08/31/2010 - 07:50 | 554777 Al Gorerhythm
Al Gorerhythm's picture

Aren't these the wiz kids who just offloaded 403 tons of gold!!!???? WTF?!

Brilliant, just brilliant.

Tue, 08/31/2010 - 08:31 | 554817 doolittlegeorge
doolittlegeorge's picture

to whom did they off load it to?

Mon, 08/30/2010 - 23:34 | 554408 kridkrid
kridkrid's picture

"proverbial coalmine in the canary"... I hope I'm not about to be that guy who says, "ummmm... it was the Japanese who bombed Pearl Harbor, not the Germans".... missing the reference, but shouldn't this read "proverbial canary in the coalmine"?

Mon, 08/30/2010 - 23:37 | 554411 Tyler Durden
Tyler Durden's picture

causation implies correlation

Tue, 08/31/2010 - 02:41 | 554621 ThreeTrees
ThreeTrees's picture

horse before cart?

Tue, 08/31/2010 - 03:58 | 554663 simone
simone's picture

Causation is not necessary for correlation.

Tue, 08/31/2010 - 04:39 | 554678 jeff montanye
jeff montanye's picture

causation implies correlation doesn't mean causation is necessary for correlation:  all correlations are "bigger" than just those produced by causation.  nevertheless events caused by other events are themselves correlated.

Tue, 08/31/2010 - 07:35 | 554767 simone
simone's picture

Correlations do not determine root causes.

Tue, 08/31/2010 - 09:37 | 554931 hedgeless_horseman
hedgeless_horseman's picture

We've crossed that bridge after we came to it?

Tue, 08/31/2010 - 09:05 | 554868 natkins
natkins's picture

Disagree, events caused by other events are not necessarily correlated.

Tue, 08/31/2010 - 07:59 | 554784 ToNYC
ToNYC's picture

They Shoot Horses Don't They?

Tue, 08/31/2010 - 08:14 | 554799 Mad Mad Woman
Mad Mad Woman's picture

LOL!!  Good one!

Tue, 08/31/2010 - 08:31 | 554818 doolittlegeorge
doolittlegeorge's picture

and what an implication!

Mon, 08/30/2010 - 23:40 | 554414 CashCowEquity
CashCowEquity's picture

Gold is going to 15,000 per oz and Silver to $250 per oz now...

Tue, 08/31/2010 - 00:25 | 554484 DoChenRollingBearing
DoChenRollingBearing's picture

At some point don't be surprised with those prices for Gold and Silver.


So many lies and liars out there.  Whom to trust?  Gold, Silver, and maybe guns & ammo.  And get good with your spiritual situation (religion).

Everything keeps getting weirder by the day.  Diversify and get prepared...


Tue, 08/31/2010 - 00:40 | 554506 merehuman
merehuman's picture

Its still a circus. The merry go round was to fast for me.

I fell off.

Tue, 08/31/2010 - 10:15 | 555025 FEDbuster
FEDbuster's picture

I'm just sitting here watching the wheels go round and round,
I really love to watch them roll,
No longer riding on the merry-go-round,
I just had to let it go

John Lennon, Watching the Wheels

Tue, 08/31/2010 - 01:12 | 554545 RockyRacoon
RockyRacoon's picture

DCRB, things are looking really weird, eh?  Kinda like the folks who say we really don't want to be here when/if gold gets to $10K -- I'm thinking they may be right!

Spooky stuff.

Tue, 08/31/2010 - 07:39 | 554769 Tense INDIAN
Tense INDIAN's picture

i think Silver is going much higher than that.....Amero is going to be backed by Siver ...and we all know the silver price suppression by JPM.......

Tue, 08/31/2010 - 10:08 | 555006 Ahmeexnal
Ahmeexnal's picture

But...but...but the USD is backed by cocaine!

Now that's a strong currency, ain't it not?

Tue, 08/31/2010 - 08:32 | 554820 doolittlegeorge
doolittlegeorge's picture

and your point is?

Mon, 08/30/2010 - 23:46 | 554424 Turd Ferguson
Turd Ferguson's picture

Perhaps we could locate the wayward Mr. Zhou by searching the offices of the IMF. With their ever-expanding role, they could really use a man of his many talents.

Tue, 08/31/2010 - 01:04 | 554535 THE 4th Quadrant
THE 4th Quadrant's picture

Just discussing that very topic earlier today. Someone has a reward waiting for buying all of that junk....

[Do you know of any islands purchased by a squid]

Mon, 08/30/2010 - 23:51 | 554429 Hall 9000
Hall 9000's picture

"The IMF last year already had to rebrand the flexible credit line after it failed to attract a single country. Mexico, Poland and Columbia have since applied and qualified for a total IMF commitment of about $US72 billion. They each renewed this year although none had drawn on the credit lines."

Mon, 08/30/2010 - 23:58 | 554438 Shameful
Shameful's picture

Good on them.  I was sorta hoping the dollar would outlive the Euro by a few months, but all the fiat currencies have to die someday I guess.  It's not like we are going to pay it back, it just further rockets us to publicly acknowledged insolvency.  Can't wait till the IMF has to borrow from the US, to bail out the US.

Tue, 08/31/2010 - 00:20 | 554481 midtowng
midtowng's picture

The dollar will be the last fiat currency standing, but not for very long. And it will probably be replaced by another global fiat currency system.

Tue, 08/31/2010 - 00:35 | 554501 hugolp
hugolp's picture

And it will probably be replaced by another global fiat currency system.

This sounds scary because it sounds possible. We will have coordinated bubbles all around the world, and then, when the bubble go bust, global crisis at the same time. Its going to be so much fun.

Tue, 08/31/2010 - 01:10 | 554541 THE 4th Quadrant
THE 4th Quadrant's picture

The new currency is not going to be a currency per-se. Instead debit/credit cards will succeed the old paper & coin system. Bye bye black money.

Tue, 08/31/2010 - 09:10 | 554878 aerojet
aerojet's picture

I don't see how that would be a likely possibility given that so much of what pols and oligarchs do is somehow dirty, it would seem like cash would be a preferred method of payment.  I also look at how much of the US runs on the cash economy and doubt that cash is going anywhere anytime soon.  Fast food joints will take credit/debit cards now, but most of their intake still has to be from cash purchases.


Tue, 08/31/2010 - 10:23 | 555049 FEDbuster
FEDbuster's picture

Imagine the 41 million in the USA on food "stamp" debit cards could be joined by billions in worldwide food stamp program.  Not sure how that would work when the American family of four receives more in food stamps in one month than most around the world EARN in pay for a full year, but the masters will work out something equitable for all the slaves.  My guess is Americans will have to aquire a taste for rice and beans six days a week.

Tue, 08/31/2010 - 09:12 | 554881 SheepDog-One
SheepDog-One's picture

Right, 4tfQuad, anyone thinking a Phoenix currency like Amero or Boncor will be backed by anything has to be nuts. Theyll be 'backed' by your slavery. If you do good work for Our Beloved Leader, then you might get a few credits put on your chip. There will be no 'savings'.

Tue, 08/31/2010 - 08:40 | 554829 doolittlegeorge
doolittlegeorge's picture

"coordinated bubbles"?  scary or hilarious?  who needs a canon when all you need is a pea shooter.

Tue, 08/31/2010 - 00:31 | 554497 DoChenRollingBearing
DoChenRollingBearing's picture

Shameful, as always great to read your comments again.

Because of a tsunami of bearing orders arriving in Peru (without notice or documents), I had to send a BUNCH of money to suppliers overseas.  While that hurts me "here" (less money) it may help me there (if I exfiltrate to Peru).

Keep your options REAL OPEN re your own life.  Be aware, cautious and even semi-paranoid.

Let us know in the ZH community what you think of any foreign places you explore!

Tue, 08/31/2010 - 08:41 | 554833 doolittlegeorge
doolittlegeorge's picture

sometimes you can explore foreign places without getting off the couch, too.

Tue, 08/31/2010 - 09:06 | 554871 Pondmaster
Pondmaster's picture

Nova Scotia - great - main drawback , its an island . Moderate winters . Not over populated 

Tue, 08/31/2010 - 09:27 | 554912 BurningFuld
BurningFuld's picture

Hummm  An Island with a land bridge. (?)

Tue, 08/31/2010 - 11:47 | 555267 living on the edge
living on the edge's picture


I have never been to Peru but I am scratching my head as to why move there. Please enlighten me. I have been researching Belize and Costa Rica but I really need to visit first hand to make a decision. Your thoughts!

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