Jim Rickards: "Goldman Can Create Shorts Faster Than Europe Can Print Money"
Jim Rickards, who recently has gotten massive media exposure on everything from the JPM Silver manipulation scandal, to the Greek default, was back on CNBC earlier with one of the most fascinating insights we have yet heard from anyone, which demonstrates beyond a doubt why any attempt by Europe to print its way out of its current default is doomed: "Look at what Soros did to the Bank of England in 1992 - he went after them, they had a finite amount of dollars, he was selling sterling and taking the dollars, and they were buying the sterling and selling the dollars to defend the peg. All he had to do was sell more than they had and he wins. But he needed real money to do that. Today you can break a country, you don't need money you just need synthetic euroshorts or CDS. A trillion dollar bailout: Goldman can create 10 trillion of euroshorts. So it just dominates whatever governments can do. So basically Goldman can create shorts faster than Europe can create money." Just wait until Europe finally realizes that the CDS "speculators" had all the cards in the poker game all along. And we hope Europe listens to the man: being LTCM's GC he knows all about failed bail outs.
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on Mon, 05/10/2010 - 12:06
#341526
No
Fckin
Sht
Euro now under 1.28 as I type.
Might be a very interesting afternoon.
on Mon, 05/10/2010 - 12:08
#341534
EUR/USD dropping like a rock.
on Mon, 05/10/2010 - 12:15
#341555
"EUR/USD is meaningless. Look at the markets."
Harry Wanger
on Mon, 05/10/2010 - 12:22
#341567
So much for his prediction on capping the well head.
Time to boycott BP products.
on Mon, 05/10/2010 - 13:23
#341743
Off topic but critical...
Urgent: Deepwater Horizon Spill Solution
Hi Everyone. Please see:
http://www.squareandc.net/
This is me and I have a “Eureka” moment breakthrough to help solve the Deepwater Horizon crisis.
Please publicize this URL widely. E-mail it to your contact lists, send it to your senators, appropriate contacts in media, post it on other blogs like oil drum where you might be a member, industry contacts etc. Time is of essence and the solution is awesome.
If Tyler or Marla see this, they can mail it to higher contacts in media or put it somewhere on the site. I’d even pay for a prominent ad spot for the day if needed.
I’m getting it out on as many outlets as possible.
I know there are folks here from the industry or tangentially or historically connected with it. Please don’t e-mail me for details at this point, will take too much time to respond.
If you’ve read any of my comments, you know I’m sane. Right? ;-)
It’s real and needs to get seen/heard at the highest/right places.
Thanks in advance.
VivekAnand
on Mon, 05/10/2010 - 15:37
#342028
are you going to post this in every thread on this site? i'm sure your idea is great, so just call the fucking company or government and get on with it. i'm not sure what you expect people here to do about it.
on Mon, 05/10/2010 - 22:56
#342779
Not to be outdone by Soros, GS is going to pants Europe!
on Tue, 05/11/2010 - 04:50
#342988
If you are genuinely concerned just post the general details so it can be reviewed, otherwise STFU.
on Mon, 05/10/2010 - 12:27
#341579
Please don't say his name to many times he may reappear like Beetlejuice.
on Mon, 05/10/2010 - 12:28
#341582
lol + 1000
on Mon, 05/10/2010 - 12:30
#341592
I dare hime to come back:
Wanger Wanger Wanger
I AM TROLL FOOD
on Mon, 05/10/2010 - 12:06
#341530
“Gold Is Money, and Nothing Else.“
- JP Morgan, testifying under oath to Congress before the Pujo Commission, 1913
"Banking was conceived in iniquity and born in sin. The Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take away that power, and all the great fortunes like mine will disappear — as they ought to in order to make this a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, then let them continue to create deposits.”
Sir Josiah Stamp (1880-1941), one time governor of the Bank of England, in his Commencement Address at the University of Texas in 1927. Reportedly he was the second wealthiest individual in Britain.
Mobilis In Mobili -Nemo
on Mon, 05/10/2010 - 13:23
#341746
+1, appreciate the quotes.
on Mon, 05/10/2010 - 12:11
#341545
To fix the problem of too much debt that looks to be on an inadequately serviceable trajectory . . . throw more debt at it. Brilliant. Kick the can until when?
These countries need to restructure (yes, default). It is not the end of the world and the sooner the better. They've all done it before. Yes, I know it puts the future of the EU in question. But putting it off for 3 years actually increases the likelihood.
Or is it really all about saving the banks, yet again?
on Mon, 05/10/2010 - 12:52
#341650
The EU was officially created to facilitate the free flow of people and commerce between members, and unofficially created to allow a small ruling elite to control a nice chunk of the industrialized world. You didn't think TPTB would relinquish some of their power so Greece and a few other misfits could break from the EU in order to default and/or devalue their own sovereign currencies, did you?
They've got carbon credits to skim, cash transactions to outlaw, direct taxation transfer payments to implement, taxpayers to fleece, and pensions and precious metals to confiscate. So many ways to screw the middle class, so little time.
on Mon, 05/10/2010 - 12:13
#341546
I was in my bedroom tying my tie when Mr. Rickards uttered those wonderful words. I was transfixed, waiting for a giant hook to come from stage right and yank him off the air. Even "Morning Joe" didn't seem to really understand what Rickards was saying.
When it was over and I looked in the bedroom mirror to check my appearance before leaving, I saw that I had tied a triple Windsor knot and the end of the tie was only 4 inches from the knot. Whoops! My first belly laugh of the day.
on Mon, 05/10/2010 - 12:47
#341642
At least you didn't give yourself an "Alcatraz Ascot" while listening to this
on Mon, 05/10/2010 - 12:14
#341551
Mr. Rickerts, excellent comment from an esteemed person. Honesty and Gravitas?
on Mon, 05/10/2010 - 12:17
#341558
Goldman would still have to find the sucker to take the other side of the bet.........it could be the ECB itself........
on Mon, 05/10/2010 - 12:31
#341597
Best and Brightest
on Mon, 05/10/2010 - 12:45
#341634
Clients.
on Mon, 05/10/2010 - 12:46
#341638
Can you say 'Naked'?
on Mon, 05/10/2010 - 12:24
#341571
The earlier article basically said it all; 100% profitable trading days.
on Mon, 05/10/2010 - 12:46
#341636
Remember its not in the interest of the parasite to kill the host organism. Goldman is the rentier class, but they pull the levers for Fed/Treasury, such a small thing really, demanding a fair kickback out of Greece, where the ratings agencies put the bid under those austerity bonds. In turn the EU picks up the bill. We can bleed everybody dry, is this a great country or what?
on Mon, 05/10/2010 - 12:50
#341645
I think the parasite has figured out this beast is on its last legs. Better to gorge now, lay 200,000 eggs and find another victim passing by shortly.
on Mon, 05/10/2010 - 13:04
#341684
oh and i love Zoiberg. this is like a guy laying in the street bleeding and the vampires licking the blood off the pavement.
on Mon, 05/10/2010 - 12:29
#341574
Enough - if Europe believes its own Bullshit there is only one option.
Put up the capital walls and keep the barbarians out.
A trading bloc without external boundaries is not a trading bloc but a collection of vassal states.
The Anglo Saxon economies can create money without savings and force their only western rival to respect the rules that they created and force it to print money.
Will it allow New York and London to drag the west into the mire once again ?
on Mon, 05/10/2010 - 12:26
#341576
Jim Rickards should have his own financial channel.
Maybe it can be channel 5000...for $5000 Au.
on Mon, 05/10/2010 - 13:23
#341748
maybe it can be real interviews with actually important insightful questions instead of just the usual CNBC starfucking.
on Mon, 05/10/2010 - 12:29
#341583
Mark Heines: We are up 400 points, whats wrong with you people, shut up!!
Cheeky Bastard [in response to the above statement]: I will eat your heart and sell your women to slavery, slaughter all your horses and poison your 5th avenue lands.
on Mon, 05/10/2010 - 12:54
#341654
"Conan, what is best in life?"
Conan - "To crush your enemies, have them driven before you as slaves, and to hear the lamentations of the women."
on Mon, 05/10/2010 - 22:59
#342782
Pete (from Big Island Snake House): It is not so important that I win, but that I am the only winner, and that everyone else is a loser.
on Mon, 05/10/2010 - 12:31
#341586
Did Joe just squeal like a bitch?
on Mon, 05/10/2010 - 13:24
#341751
Yes, he did
on Mon, 05/10/2010 - 15:43
#342039
He wanted them to "shut up!" because they were distracting him while he clicked his red heels together chanting "there's no place like home, there's no place like home!"
on Mon, 05/10/2010 - 12:32
#341599
Does GS -
1. plunder the individual countries one at a time
2. plunder all EU countries together via USD/EUR
3. plunder both while declaring "The devil made me do it"
on Mon, 05/10/2010 - 12:53
#341651
Doing god's work.....
on Mon, 05/10/2010 - 12:37
#341609
Yes, and now we know the mechanizm of control towards that elitist state of nirvana, "one-world governance". It is all PLANNED.....
on Mon, 05/10/2010 - 12:44
#341625
Its a very good question - who is the remaining counterparty necessary for these synthetic bets to come into existance?
on Mon, 05/10/2010 - 13:01
#341673
A holds B's dollars and A wants his own dollars back, because B has nothing for him to buy. He goes to B and says, I want you to exchange these B dollars for my own A dollars, you go out in the market and get me enough A dollars to complete the transaction. (B has to repatriot his dollars back into A dollars). This is fundamentally different than A redeeming Treasury Bonds which B sold him, because B would simply pay A in B dollars, which just kicks the can down the road.
Governments are willing to do this, ad infinitum, but it is private investors who hold the real dollars, and once some group, with enough capital starts the ball rolling it can't be stopped. Then of course you set up some hedges, which leverage the position you are pressing.
on Mon, 05/10/2010 - 13:20
#341733
But if A retains a GS to 'help' him get A dollars back, A is enabling the WMD that is focused on destroying that with which he will be left with at the end of the day. Its one thing a few years back, when the mechanism was not clearly visible, but its the very definition of insanity to do it again now - maybe I just answered my own question.
on Mon, 05/17/2010 - 19:36
#357361
Dear Raymond and others,
How naive are you?
They are there own counterparty!!
It is all orchestrated.
They have enough funds of their own, both onshore and offshore, and manage incredible offshore funds. Left hand doing business with the right hand, and we the people are so naive and dumb we think it is a real market.
It's all about power and money.
on Mon, 05/10/2010 - 12:59
#341657
3. is definitely wrong, "it is god's work" remember?.edit, bugger, beaten to it, ...must type faster
on Mon, 05/10/2010 - 13:00
#341670
Keep in mind the oil volcano is currently acting like a reverse printing press. Think of it is a currency cookie monster. Unemployment is going higher.
on Mon, 05/10/2010 - 13:01
#341674
http://www.huffingtonpost.com/janet-tavakoli/banging-the-us-stock-mark_b...
Awesome piece from Janet Tavakoli
on Mon, 05/10/2010 - 13:08
#341700
Yes she has a fantastic body of work.......
on Mon, 05/10/2010 - 23:07
#342790
Janet is smokin' hot.
on Mon, 05/10/2010 - 13:02
#341681
Could Goldman be right this time?
on Mon, 05/10/2010 - 13:06
#341693
Rickards presents his view rationally and coherently, and that's part of the reason why he's respected. He has command of his faculties and it's so much more difficult to undermine the message.
on Mon, 05/10/2010 - 13:14
#341718
Brilliant. You can smell the fear - whats he gonna say!?!?
And they blatently get cut by the producer for being too bearish.
Rickards & Yra Harris together - nobody really thought that one through.
FYI Harris is good, his Notes from Underground blog is top class, useful for short term trading across asset classes.
As for who the buyer of Euros is, the answer is Goldmans clients. They will still have a long list of future IKB's lined up.
You dont have to just pay the client Euros, you can "structure a product". For example sell the client an embedded put option where the client is initially flat EURUSD, short FX gamma, receiving theta. Tell the client the theta is a yield, its an innovative "yield enhancement" product. Push EURUSD low enough and suddenly the client is the chump who is long.
Client will a) panic sell the product back to you at a price you determine or b) panic, and sit on massive unreported losses smoking Hopium - German banks are ironically the best at this - or c) try hedging by selling more EUR, thus dooming themselves by eating their own tail.
Either way, enough clients & a low enough EURUSD rate and you can make money 63 days in a row.
This has worked for years in equity derivatives desks, briefly but famously in credit derivatives desks, FX derivatives should be no different.
on Mon, 05/10/2010 - 13:16
#341722
so, ? synthetic trump of synthetic fraud. rock, paper, cds.
as with incest, neither party wants to admit what the world
already knows, and neither party has ever had it so good.
all things being equal, life was never so convenient and
wonderful things can come from the magical bloodline.
or not.?
two headed ass talking monkeys at first, but what will the
second generation look like? think of the possibilities!!
"debts don't matter" d. cheney. the world is a
political world. all this accounting just keeps the "educated"
people off the streets, away from anything productive that
might upset the delicate balance of universal uselessness and
entertaining random appendage development. who cannot
enjoy free time spent with the wonderful curiosities at the "circus"
or amusement park.
reminder, all fiat currency is lent into existence out of thin air
based on a quickly forgone narrative and a stack of fraudulent
paperwork, the basis of my confidence in the will of man and
his aborted/dissociated integrity.
.
productive labor and manufacturing decanted from the application,
recognition of value, makes all this financial securitization not
only "wonderful" but possible. the world of finantialization is proving
to be just a confusing narrative to justify the fiat exploitation of labor,
the practice of slavery by other means or terms.
...
i can hear either w. bush or obama using the words "workin' peepll".
can you hear it? they sound the same. same tone, same notes,
same slurrrrr. like their "normal" voice doesn't have these words
in it's vocabulary. they can only be spoken by some ancient alien entity
that visits them when there is a spotlight and camera and a crowd
of hungry flesh eating sheep staring at them, hungry for words to
chew and swallow and then vomit. box of corn flakes, $5.
weekly income for unemployed, with no savings and no credit, $0.
bankers take on global bailouts, debt transfers, $ all of it.
recapitalized by other means, taxpayer, to then have the capacity to finance
soverign debt. taxpayer. in his hour of need.
.
political science 101. incest 201. apologies if i missed the salient
points and i may have lost the main plot........
on Mon, 05/10/2010 - 13:29
#341776
I disagree with most on this board about the futility of all this. If Europe acts in a united way, no Soros or squid can bring it to the brink. Look at it this way. If the ECB sells unlimited CDS's on the PIG countries, the proceeds from these sales could finance the funding needs of the countries under question. Talk about unlimited powers; the more the specs bet on bankruptcy, the more the region gets free money.
on Mon, 05/10/2010 - 15:55
#342065
You sincerely believe the working class in Germany will be just fine with bearing the burden of the rest of Europe? You forget it is about more than just paper. Step outside of your paper view for just a moment and remember the flesh affected by austerity measures required to keep the ponzi paper game going. It is unsustainable.
on Mon, 05/10/2010 - 13:37
#341805
In order to create 10 trillion in notional euroshorts or CDS, one would need to find parties dumb enough to take the long side of the position. How is this possible anymore? Anyone willing to take the opposite side from Goldman, Paulson, Soros???
on Mon, 05/10/2010 - 14:23
#341925
that is what market makers are for, professionals.
how about iraq. they need income producing risk
to offset their other risk that produces no income. ?
maybe an offshore spv made of anticounterparty
antimatter with a virtual digital printing press.
maybe bp could use some income producing risk.
where will, there is a way. whatever, a taxpayer will
ultimately have to back it, maybe a virtual taxpayer....
on Mon, 05/10/2010 - 13:51
#341845
Are you saying Sarkozy is going to get “STUFFED”!!!!?????
on Mon, 05/10/2010 - 13:59
#341864
can someone please enlighten me as to what a "euroshort" is and how you can create 10 trl synthetically w/ out anyone taking the other side of the trade???
Just sayin maybe this guy shouldn't be getting that much press attention considering he is making up securities on "air"
on Mon, 05/10/2010 - 14:04
#341876
This link is appropriate:
Goldman, not a single day of trading losses in first quarter..
http://www.huffingtonpost.com/2010/05/10/goldman-sachs-not-a-singl_n_570...
How much did it cost for GS to buy the whole market? It's like a deli counter, they take your money, sometimes you get a slice of baloney, sometimes a filet mignon, and sometimes an old snotrag..
on Mon, 05/10/2010 - 14:05
#341880
Ah yes, but what if the EU joined Soros & shorts themselves even more than George does?
on Mon, 05/10/2010 - 14:40
#341960
Haha - makes sense. The EMU could hire Goldman to write up the euroshort CDSs to offset Goldman's shorts knowing GS would never trade on that knowledge since they're "all about the customer".
I'd die happy to see Blankfein explain why the markets took another dump as Goldman's computers get stuck in a recursive algorithm that brings down the exchange's machines with an overflow error after writing infinauseum contracts =D
on Mon, 05/10/2010 - 14:17
#341909
An alternative would be for the ECB to buy 1 bn of GS CDS and revoke their European Banking License that would be a good trade and I would join them in the fun!!!.
on Mon, 05/10/2010 - 14:20
#341913
So Godman Suckers are the world rulers in total domination now!
Dear me, I feel completely sickened
on Mon, 05/10/2010 - 14:20
#341914
duplicate, sorry
on Mon, 05/10/2010 - 14:41
#341919
Duplicate
on Mon, 05/10/2010 - 15:18
#341987
To buy into the EU leaders‘ narrative that they are somehow fending off speculators in defense of the Euro/Euroland is exceedingly naïve.
Rather, I submit, the thoroughly subverted leadership is deliberately creating the trade of the century on and in behalf for the very same interests they claim to oppose. As Rahm Emmanuel put it, never let a good crisis go to waste.
on Mon, 05/10/2010 - 15:53
#342061
Shylockracy - you may be right , cuckoos are in all of our nests but we recognize them as kin.
on Mon, 05/10/2010 - 17:43
#342252
Q: "How can Goldman create so many shorts without someone to take the other side?"
A: They are Jedi masters; they will simply lead you and millions like you to take the other side without you realising it, principally by pulling the strings of your leaders. Nothing to see here.
Q: If Goldman is doing God's work, why are they so evil?
A: The Devil is also doing God's work, my child. Make the connexion.
Q: Is it true that Goldman unleashed their Trading BOTs to effect last week's sell-off as a demonstration of their evil powers to bring the US SEC to their senses?
A: You would seriously doubt that?
Q: Did a former GS minion just get installed on the US's highest court?
A: And that surprises you?
on Mon, 05/10/2010 - 22:52
#342772
Sith dude, Sith. Focus. (I think they got to alarmist...)
on Mon, 05/10/2010 - 20:49
#342609
Why would anyone short CDS when the EU countries and our Fed will obviously bail the PIIGS out?
It's more than a risky bet. It's reckless and stupid. The gov printers will win. They don't even need ink any more. What am I missing?
on Mon, 05/10/2010 - 20:59
#342625
http://www.youtube.com/watch?v=pXKVe_qPHFQ&NR=1
.
"when they go up on bad news, that's when you hit bottom." j.r.
?
on Mon, 05/10/2010 - 22:32
#342746
"being LTCM's GC he knows all about failed bail outs."
BURN!
Tyler that was a wicked burn...
on Mon, 05/10/2010 - 23:59
#342824
An interesting DOW chart:
http://www.zerohedge.com/forum/latest-market-outlook-0
http://stockmarket618.wordpress.com