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Marc Faber: Treasurys Are A "Suicidal Investment"

Tyler Durden's picture




 

Marc Faber, who just like Nassim Taleb has never hidden his disdain for investments in US-backed paper, is back to bashing Treasurys, although with logic diametrically opposite to that espoused by those such as Morgan Stanley who see rising rates as a sign of economic growth. "This is a suicidal investment,” Faber told Bloomberg in a
telephone interview from St. Moritz, Switzerland. “Over time,
interest rates on U.S. Treasuries will go up. Investors will
gradually understand that the Federal Reserve wants to have
negative real interest rates. The worst investment is in U.S.
long-term bonds.” As for equities, Faber increasingly sees a Zimbabwe outcome: “If you print money, the currency goes down and the S&P 500 goes up. By the end of 2011, people will look at 2012 and think 2012 could be a very bad year because the policies applied are not sustainable and create a lot of instability. Investors may look at 2012 and 2013 with horror.” Not Wall Street thought. By the end of 2011, bankers will most likely be looking at the second consecutive record bonuses year, and by then will have enough gold safely stashed away in non-extradition countries to where the host organism may finally be allowed to die in peace.

Treasury 10-year note yields will rise to 5 percent from yesterday’s level of 3.349 percent, Faber said, without specifying a time frame. As bonds fall over the next decade, he said investors should buy precious metals, real estate or equities. U.S. debt has returned 5.7 percent in 2010, more than erasing last year’s 3.7 percent loss, according to a Bank of America Merrill Lynch index.

Treasuries fell today as reports showed initial jobless claims dropped more than forecast, U.S. businesses expanded at the fastest pace in two decades and pending home resales beat expectations. The yield on the benchmark 10-year note advanced 0.04 percentage point to 3.39 percent at 1:54 p.m. in New York, according to BGCantor Market Data.

Faber correctly predicted in May 2005 that stocks would make little headway that year. The S&P 500 gained 3 percent. He was less prescient in March 2007, when he said the S&P 500 was more likely to fall than rise because the threats of faster inflation and slower growth persisted. The S&P 500 then climbed 10 percent to its record of 1,565.15 seven months later, and ended the year up 3.5 percent.

Below is the most recent video appearance, presented previously on Zero Hedge, of the ever entertaining Doom Boom and Gloomer:

 

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Thu, 12/30/2010 - 17:26 | 838506 GlassHammer
GlassHammer's picture

I dug out an old college textbook and the section on T-bills actually refers to them as risk free. But this is the same book that refers to efficient market theory and other defunct economic concepts. 

Thu, 12/30/2010 - 17:32 | 838515 nope-1004
nope-1004's picture

Every economic textbook relies heavily on the sanity of those running the policies.  If sociopathic lunatics like Geithner are allowed to manipulate things for his buddies at the FBoNY, then no economic theory comes close to accurately predicting the trend.

Thu, 12/30/2010 - 19:14 | 838673 wisefool
wisefool's picture

+1099. I got your world bank right here.

Fri, 12/31/2010 - 07:32 | 839196 Al Gorerhythm
Al Gorerhythm's picture

The one question left to be answered; When America gets put into conservatorship, where is it placed, who carries it? Won't find that in a text book either.

Thu, 12/30/2010 - 18:22 | 838610 Id fight Gandhi
Id fight Gandhi's picture

Mine used to go on about roi and how p/e matters and safe ways to buy and invest. If you followed that during the 90s when I was in college you'd would have missed the tech boom and bust.

I think anyone 20 years ago wouldn't. Believe how messed up a market could be. And how it keeps rising as the world falls apart.

Thu, 12/30/2010 - 19:18 | 838681 SoCalBusted
SoCalBusted's picture

By p/e, are you referring to what Obama calls the "Profit and Earnings ratio"?

 

http://www.nationalreview.com/campaign-spot/7771/does-president-know-what-p-e-ratio-stands

 

Thu, 12/30/2010 - 19:33 | 838708 pgarner
pgarner's picture

+1 on that!

Thu, 12/30/2010 - 20:05 | 838760 gmrpeabody
gmrpeabody's picture

Too funny!

Thu, 12/30/2010 - 22:14 | 838919 Fred Hayek
Fred Hayek's picture

Nothing's quite so precious as a pretentious dolt.

Unfortunately, nothing's quite so frustrating or dangerous as a pretentious dolt in a position of power.

 

Fri, 12/31/2010 - 02:13 | 839110 mberry8870
mberry8870's picture

What a dick. Pretty much sums up his whole life, winging it past the sheep.

Thu, 12/30/2010 - 20:33 | 838807 GlassHammer
GlassHammer's picture

Yeah P/E and that ROI stuff sounded nice until you started working and learned it was a bunch of BS. 

Fri, 12/31/2010 - 01:04 | 839072 DaveyJones
DaveyJones's picture

it's like many of those legal concepts they taught us in law school. It sure sounded good 

Fri, 12/31/2010 - 02:30 | 839116 TruthInSunshine
TruthInSunshine's picture

Yeah, all the idiots who actually spent hard time learning the rule against perpertuities, when all they would have had to know is how to bribe judges legally.

Fri, 12/31/2010 - 13:15 | 839721 DaveyJones
DaveyJones's picture

instead of bribing, I just look for the judges who believe peak oil is a scam. They're the most intellecutally vulnerable

Fri, 12/31/2010 - 06:09 | 839176 Byte Me
Byte Me's picture

You mean Newspeak hasn't redefined it as Pump / Excrement ??

b-b-but I thought this was the new normal.

Thu, 12/30/2010 - 19:49 | 838731 Dr. Doom
Dr. Doom's picture

In a sense they are risk-free. You give them a worthless piece of paper, and they give you a few more worthless papers in return.

Thu, 12/30/2010 - 20:52 | 838834 GlassHammer
GlassHammer's picture

Risk-free....

I actually had an accountant tell me that "you don't need to price it if its risk free." And I told him if it doesn't have a price then it's probably worthless. (I think that might be a line in a movie but I can't remember where I heard it)

Fri, 12/31/2010 - 14:26 | 839929 just_looking
just_looking's picture

Faber is speaking about Treasury bonds ("Treasuries"), not Treasury Bills ("T-bills").  

Thu, 12/30/2010 - 17:29 | 838508 traderjoe
traderjoe's picture

The US will never repay its debts. Jubilee!

Thu, 12/30/2010 - 17:48 | 838549 breezer1
breezer1's picture

the us won't pay it's debts. the serfs will.

Thu, 12/30/2010 - 20:28 | 838800 ejhickey
ejhickey's picture

I thin the amount of US debt exceeds he total money supply of the world

Fri, 12/31/2010 - 02:16 | 839113 macholatte
macholatte's picture

I thought the US debt was the money supply for the world.

 

True terror is to wake up one morning and discover that your high school class is running the country.
Kurt Vonnegut

Thu, 12/30/2010 - 17:56 | 838558 Sudden Debt
Sudden Debt's picture

It does repay its debts by sending their young brave heroes to war to die for economic profit.

Thu, 12/30/2010 - 19:31 | 838701 ciscokid
ciscokid's picture

Your talking Wisdom.

Fri, 12/31/2010 - 01:10 | 839075 DaveyJones
DaveyJones's picture

not sure the wars have been a good investment. Wonder if we took 2 trillion (including future medical) and built energy and transportation systems with american jobs, wonder what that would have looked like. Wonder what the savings of not having much of the world pissed at us is worth, especially now and looking forward  

Fri, 12/31/2010 - 02:16 | 839114 macholatte
macholatte's picture

He who can no longer pause to wonder and stand rapt in awe, is as good as dead; his eyes are closed.
Albert Einstein

Thu, 12/30/2010 - 18:07 | 838575 Ruffcut
Ruffcut's picture

The US will not be able to repay, but they are trying to hide them first.  Continued debasing of the bucky, must resume. The biggest point of pressure, of the economic dam, full of cracks and small holes.

Thu, 12/30/2010 - 18:22 | 838615 Id fight Gandhi
Id fight Gandhi's picture

I don't plan to either. Roll over on cheap money.

Better to have gold and cash when you go bankrupt.

Thu, 12/30/2010 - 21:20 | 838865 masterinchancery
masterinchancery's picture

The non-extradition part is the most crucial.

Thu, 12/30/2010 - 17:33 | 838518 the rookie cynic
the rookie cynic's picture

Someone recently told me,"You can't eat gold!", so I shoved a T-bill in his mouth.

 

Thu, 12/30/2010 - 17:57 | 838559 Go4er
Go4er's picture

That is awesome!

Thu, 12/30/2010 - 18:09 | 838577 downrodeo
downrodeo's picture

+10

damn, i just laugh-sprayed drinking water over my computer...Good answer!

Thu, 12/30/2010 - 18:12 | 838582 Eric The Red
Eric The Red's picture

awesome

Thu, 12/30/2010 - 18:14 | 838592 Seer
Seer's picture

LMAO!

Thu, 12/30/2010 - 18:15 | 838594 IQ 145
IQ 145's picture

 "Your majesty, the people have no silver"; "Well, then they can eat T-bills". I couldn't agree more with DrFaber; Bonds=instruments of guaranteed confistication. You'l get some "numbers" back; but you can kiss the buying power goodbye. The reference to the Zimbabwe stock market should be clarified; it went up 23000 percent, or something; but this was useless to people stuck in Zimbabwe dollars. It's alarming and amazing to me to see a huge amount of conversation and speculation about the stock market "going up" because of money printing. Yes, it will "go up"; no you will not "make anything". This is what you were supposed to learn between 2001 and 2008; the buying power is running out of the bottom of the bucket while the "numbers" get bigger. This is a classical inflationary epoch; it has started; it's very difficult to see how it will be limited or controlled.

Thu, 12/30/2010 - 22:16 | 838921 Freddie
Freddie's picture

Well America has Mugabe 2 and all the media, TV and Hollywood fawn over him endlessly.

Fri, 12/31/2010 - 10:04 | 839320 More_sellers_th...
More_sellers_than_buyers's picture

But ...But ... The Bernenke said he was 100 % confident...HAHAHAHAHA

Thu, 12/30/2010 - 23:00 | 838968 f16hoser
f16hoser's picture

That's the funniest thing I've heard in a long time!

Thu, 12/30/2010 - 23:19 | 838980 Midwest Prepper
Midwest Prepper's picture

Hilarious!  I hope you included some knuckles with that T-bill for extra nutrition.

Fri, 12/31/2010 - 01:13 | 839076 DaveyJones
DaveyJones's picture

quote of the week award

all that fiber and zero energy calories 

Thu, 12/30/2010 - 17:32 | 838521 suteibu
suteibu's picture

LOL  So Bloomberg has him on as an expert opinion then trashes his expertise in the summary of the interview? 

Thu, 12/30/2010 - 20:38 | 838819 wang
wang's picture

overall Bloomberg has a pretty diverse bunch of guest experts, some of their anchors are are pretty good but they unfortunately have their share of ditzes -  Matt Miller, Betty Liu and some of their reporters are certified CNBS material on the other hand Pimm Fox, Keene, Prewitt, Brennan and a few others are good

 

Thu, 12/30/2010 - 20:46 | 838830 oddjob
oddjob's picture

BNN is a must watch for any resource investor.After just 1 day of BNN the other business channels are just noise.

 

Thu, 12/30/2010 - 22:33 | 838935 Freddie
Freddie's picture

Is BNN streaming on the web?  Bloomberg is another stogge for the Saudis and their slimy Prince Al Waleed just like CNBC.

Thu, 12/30/2010 - 22:51 | 838954 oddjob
oddjob's picture

Available by internet subscription,satellite,or any decent cable service provider.

On their website they post every segment for free,but is delayed about 45 mins.

Regular interviews with people such as John Embry,Chuck Jeannes,Sean Boyd and many other people actually worth listening too.

http://www.bnn.ca/Shows/Commodities.aspx

Thu, 12/30/2010 - 17:40 | 838527 plocequ1
plocequ1's picture

No Treasurys? What else is left besides  stocks and Ron Jeremy videos.

Thu, 12/30/2010 - 17:43 | 838536 Hugh_Jorgan
Hugh_Jorgan's picture

How about the "G-Quad Index";  God, Guns, Gold and Grub?

Thu, 12/30/2010 - 18:09 | 838580 scatterbrains
scatterbrains's picture

can we squeeze a G for girls in there too ?

Thu, 12/30/2010 - 18:14 | 838588 Eric The Red
Eric The Red's picture

God won't save you (since it doesn't exist), but the others look to have some utility.

Thu, 12/30/2010 - 18:02 | 838567 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Long Ron Jeremy videos!

Sorry.  Compulsion demanded that I say that.

Thu, 12/30/2010 - 23:33 | 838992 MsCreant
MsCreant's picture

Isn't he short....

Fri, 12/31/2010 - 00:24 | 839038 trav7777
trav7777's picture

yeah but the "Hedgehog" still bangs myriads of hot young pussies trying to break into the business

Fri, 12/31/2010 - 07:33 | 839197 Eric Cartman
Eric Cartman's picture

lol. Those Euro amateur pornstars are getting hotter everyday. In a strong economy they would be modeling, but now they're nude and fucking. I guess a global recession does have a few benefits (if you like porn, and I do). Can't wait for 2011. =)

Fri, 12/31/2010 - 11:06 | 839403 ZeroPower
ZeroPower's picture

What is porn?

Thu, 12/30/2010 - 17:47 | 838545 buzzsaw99
buzzsaw99's picture

Treasury 10-year note yields will rise to 5 percent from yesterday’s level of 3.349 percent, Faber said, without specifying a time frame...

Whatever.

Thu, 12/30/2010 - 17:51 | 838550 CrashisOptimistic
CrashisOptimistic's picture

Well, we can put "suicidal investment" in the same drawer as "shorting Treasuries is the trade every single human being must make".  

Treasuries had an excellent year through Dec 1.  They lost some, not all, of that in December, but still outperformed money market accounts.  The trade every single human being must make lost money in 2010.

There will not, and more importantly, **can** not be a default in a world with a Fed so Treasuries are indeed riskless.  Yes, the dollars may be less valuable, but dollars didn't do badly vs the Euro this year.  Or vs the GBP.  Or the Mexican Peso.

Again, the point is Treasuries will not default.  Ever.  The Fed sees to that.  With that reality under them, there will likely be a point in time in 2011 when they can be bought profitably.  

For you to think that Treasuries will not have a profitable period next year means necessarily that you think the US economy will unceasingly grow powerfully every day of next year.

No one on ZH believes that. 

 

Thu, 12/30/2010 - 18:49 | 838640 Spitzer
Spitzer's picture

Dumbest post of the year.

So you think that the Fed will buy treasuries in the face of inflation ?

Thu, 12/30/2010 - 19:29 | 838699 SilverBaron
SilverBaron's picture

Aren't they doing that now?

Thu, 12/30/2010 - 19:10 | 838665 fajensen
fajensen's picture

The Ruble was the "reserve currency" amongst the USSR and its "sattelites" back in its day. The Russians probably never uttered the "D"-word about their treasuries at any point and yet, Vodka proved to be the better "storage of value" than the currency and the bonds!

Thu, 12/30/2010 - 23:21 | 838984 Midwest Prepper
Midwest Prepper's picture

No offense, but do you take cash advances on your Mastercard to pay your Visa???

Thu, 12/30/2010 - 17:53 | 838552 spiral_eyes
spiral_eyes's picture

y'all don't understand how quantitative easing works. it's much worse than you think, because m0 is multiplicative to m2/m3 in the long run. in the short to medium term, the keynesian kool aid produces "results" (at least measured in $$ cf industrial output). anyone short treasuries the next 5 years is wasting their money. get long resources and precious metals and oil.

 

the bubble bursts when china stops reflating the bubble by buying bonds and withdraws the flow of manufactured goods. currency is ∝ to things and when the things dry up hyperinflation kicks in as credit exponentiates. get short treasuries then -- china has no interest in wasting its pile of dollars when it can use them to obtain physical metals and commodities. so it's gonna burn them in the next 5-10 years. china will be more equivalent to america as a military power then, too, so shit will really hit the fan!

 

 

 

 

Thu, 12/30/2010 - 19:40 | 838718 pgarner
pgarner's picture

Yes! Good summation. +10

Thu, 12/30/2010 - 23:25 | 838988 Midwest Prepper
Midwest Prepper's picture

China would NEVER stop sending us there manufactured goods!!!! They are our friends!  They care about us and want us to have the very best Walmart goods at the lowest prices!!!

Thu, 12/30/2010 - 17:55 | 838556 RobotTrader
RobotTrader's picture

Equity bears can't have it both ways.  If stocks enter a correction from here, the "W" bottom will probably mark an intermediate term low for now.

Thu, 12/30/2010 - 21:05 | 838821 GoinFawr
GoinFawr's picture

Hey Robo, whaddaya know, JSMineset's Trader Dan has written a special letter just for you and your ilk!

http://jsmineset.com/2010/12/30/jsminesets-track-record/

Specific passages that seem to somehow fit you like a tailored shirt,

"...those of you who are so small minded and so ungrateful for the many benefits that have been freely given to you by my dear friend, I can only say that perhaps you would be best served by going elsewhere for your regular reading on the state of the gold market. It is evident that some of you are far wiser than the rest of us and are much more in tune with the gold market than Jim can ever possibly hope to be."

and,

" I would also suggest that since the world is in such need of your acumen and wisdom, you start up your own web site and provide your commentary to all free of charge, all the while maintaining the cost of servicing that web site out of your own financial resources.

The rest of us mere mortals, whom will benefit from such knowledge that drips from your lips like ripe pomegranates (juice), will then have the luxury of watching you put your money where your mouth is, AHEAD OF THE FACT. "

( Sardonic? Yes. Apt in your case? Undoubtedly.)

Well Robo, now's your big chance to suck it up, take a big bite of that expanding piece of humble pie you so richly deserve, and APOLOGIZE.

The longer you wait, the worse it's going to taste...

Regards

Thu, 12/30/2010 - 17:58 | 838561 FoieGras
FoieGras's picture

In over 10 years of reading Faber I have not a _SINGLE_ time heard him talk favorably about US government bonds. Not once, not even for a trade. That is akin to those guys who said the SP500 was overvalued in 1990 and then kept repeating the same fact for 10 years until their broken clock showed the right time.

Thu, 12/30/2010 - 18:05 | 838572 Sudden Debt
Sudden Debt's picture

These last 10 years have been a disaster for the US. He's pretty right actually.

 

Thu, 12/30/2010 - 18:30 | 838619 FoieGras
FoieGras's picture

True, but the dumb money who bought 30y bonds in 2000 is looking pretty good as of today. In fact I just looked up the numbers: A 30 year bond investent held from Jan 1, 2000 through today has outperformed T-bills (the risk free rate) by a massive 7.29% annualized.

Make no mistake here those are huge huge numbers by any measure.

I understand Faber hates the idea of lending money to socialist governments. I completely sympathize with the philosophy. But IMO there are two hearts beating inside of us. One that listens to rational economics, one that respects market trends and tries to make money riding them.

 

 

Thu, 12/30/2010 - 18:52 | 838643 Spitzer
Spitzer's picture

He called the March 9 2009 low almost to the day.

The only people that are thinking emotionally on treasuries are the ones bullish on them

Thu, 12/30/2010 - 19:17 | 838679 IQ 145
IQ 145's picture

 By how much did it outperform the actual loss in purchasing power of the currency unit in which it was denominated; this is the point, as far as I'm concerned. Also, it isn't 2000. The Long Bond contract topped out in Sept. this year and is in a nice downtrend that will probably continue for as long as I look at anything now; which is one year. You're going to lose on the purchasing power of the repay; and lose again on the sale price; as the trade price of the instrument moves inverse to the interest rate. "A suicide investment".

Thu, 12/30/2010 - 20:32 | 838808 Don Mattingly
Don Mattingly's picture

So invest in stocks? What happens to your purchasing power there? Most people won't invest in foreign countries for good reason. Treasuries are the best horse in the glue factory. Faber has been wrong the past 10 years, why anyone listens to his dribble is beyond me.

Thu, 12/30/2010 - 20:32 | 838809 Don Mattingly
Don Mattingly's picture

So invest in stocks? What happens to your purchasing power there? Most people won't invest in foreign countries for good reason. Treasuries are the best horse in the glue factory. Faber has been wrong the past 10 years, why anyone listens to his dribble is beyond me.

Thu, 12/30/2010 - 23:28 | 838990 Midwest Prepper
Midwest Prepper's picture

I listened to Faber and bought silver at $15...... I will continue to listen to him.

Fri, 12/31/2010 - 00:11 | 839028 twittering as s...
twittering as stocktradr's picture

 

"But IMO there are two hearts beating inside of us."

 

"One that listens to rational economics, one that respects market trends and tries to make money riding them."

 

roger that.

 

 

 

Thu, 12/30/2010 - 18:13 | 838591 TheGreatPonzi
TheGreatPonzi's picture

Maybe because US government bonds are a despisable investment (Faber is a libertarian). That roughly explains why he prefers to ignore government bonds - just like someone would ignore pornography, gambling or weed, even if you can make a lot of legal money in it.

"That is akin to those guys who said the SP500 was overvalued in 1990 and then kept repeating the same fact for 10 years"

Or those guys who said the SP500 was undervalued, etc, etc. Bearishness or bullishness are irrelevant. It's the ability to adapt that matters. In this regard, Faber being currently bullish on equities tells something on his intelligence - not many mainstream analysts are able of inverting their bias to the situation like he does.

If you take a 20-year timeline, following Faber would have brought money - following 99.9% of the analysts on this Earth would have made you lose big money. That's all the stuff that matters. Nobody is omniscient.

Thu, 12/30/2010 - 18:36 | 838629 buzzsaw99
buzzsaw99's picture

+1

Thu, 12/30/2010 - 18:04 | 838568 orgonor
orgonor's picture

"...bankers will most likely be looking at the second consecutive record bonuses year, and by then will have enough gold safely stashed away in non-extradition countries to where the host organism may finally be allowed to die in peace."

hahaaha..so the banker is a form of bacteria

Thu, 12/30/2010 - 18:06 | 838574 taraxias
taraxias's picture

parasites, not bacteria 

Thu, 12/30/2010 - 18:13 | 838584 Things that go bump
Things that go bump's picture

More like a tapeworm.  

Thu, 12/30/2010 - 18:05 | 838570 Sudden Debt
Sudden Debt's picture

Stocks trippeld and quadruppled in the weimar period but the value of the mark went down a thousand fold.

I have a few silver coins from the weimar period.

http://www.germancoins.com/_borders/westphalia_billion_mark_rev.jpg

It's a very rare coin because as soon as somebody got a hold on one, they sold it for much more in that time.

A fable attempt to deflate the mark in that time but there wasn't enough silver to mass produce them then.

The value was high enough to buy food for a month with one. And it weights 7 grams.

 

This site show you what you could buy for what:

A LOOK AT GERMAN INFLATION 1914 - 1924

http://www.joelscoins.com/exhibger2.htm

 

Thu, 12/30/2010 - 18:25 | 838617 Shameful
Shameful's picture

Americans assume that this could never happen.  We can run the presses as much as we like and ignore deficits because of "American Exceptionalism".  I have spoke n with many people including many educated people that assure me that it could never happen here because the world would never give up the dollar.  "Our currency, your problem" is as American as baseball, apple pie, and sexual assault at airports.

Gold/Silver were much better choices then stock in that period.  Just look at the dollar pricing of both in the same period.  All it takes for the dollar to die is for our foreign creditors to simply refuse to keep the fiction going any longer.

Thu, 12/30/2010 - 19:08 | 838659 Calmyourself
Calmyourself's picture

 "All it takes for the dollar to die is for our foreign creditors to simply refuse to keep the fiction going any longer."

In a strict sense yes, that is all it would take.  However, what would they do then just write off every dollar holding they have?  What is the fallback, none that I can reasonably ascertain.  If there is no fallback position clearly marked this goes on until there is.  Once the fallback is identified/designed then the ball starts rolling down the hill.

Thu, 12/30/2010 - 19:13 | 838674 fajensen
fajensen's picture

However, what would they do then just write off every dollar holding they have? 

They first spend as much as they can on land, gold, technology e.t.c With the rest they take the cue from Wall Street and buy CDS's on before they tank it - maybe pop a bomb in Ghawar; to better the outcome. Smash & Grab is "investment" these interesting days.

The ball is already rolling.

Thu, 12/30/2010 - 20:17 | 838781 Shameful
Shameful's picture

Well one would just not come out and say it. Biggest fool principle. Divest oneself of dollar denominated assets as fast as possible without tipping your hand. As posted above us it to buy things, like commodities or tech. Hell if I had a wad of burning bills I would be looking at some US tech companies with the plan to move them to my local and strip out the tech for my national use.

The only nations that would publicly declare the dollar dead are those out of dollars or running a small amount of them. If they don't prepare then Zimbabwe Ben will still ruin the currency but they will end t with nothing. Have to make the best of a bad situation.

Thu, 12/30/2010 - 22:51 | 838958 Freddie
Freddie's picture

We have Mugabe 2 so Zimbabwe 2 could happen in America and it probably will.

Thu, 12/30/2010 - 23:12 | 838976 Shameful
Shameful's picture

Nah Mugabe is 10x the man Barry is. Mugabe actually did some a ton of stuff before driving Zimbabwe into a ditch. Barry is an empty suit, doing the same Bush era agenda. Bush III as it where.

Zimbabwe Ben might end up ducking it out with the man, the myth, the legend, Gideon Gono for the hyperinflation championship, but he's not there yet. Still a budding contender.

Fri, 12/31/2010 - 06:52 | 839189 AnAnonymous
AnAnonymous's picture

All it takes for the dollar to die is for our foreign creditors to simply refuse to keep the fiction going any longer.

 

Makes me laugh everytime I read stuff like that.

Yep, inflation in Germany happened because suddenly the currency was confined to Germany alone. Same for Zimbabwe.

This stuff is known. So why not figure out that somehow people might have wanted to find a way to cull the possibility of it happening?

The US has done that. People wont walk away from the USD just like that, because they decided it. That is where the US set up the block.

People all over the world require commodities, commodities that can only be bought with USD. A situation that is guaranteed by the US military network.

Time to get real.

Thu, 12/30/2010 - 18:39 | 838627 TheGreatPonzi
TheGreatPonzi's picture

Thanks, it's very interesting.

I've done some private research on the Zimbabwean stock market, and records show it has been closed as soon as hyperinflation hit, with the currency used for the quotes soon replaced by US dollars. All quotes are made in US cents since at least February 2009. Stocks have thus been a poor hedge against hyperinflation - that's the least I can say - because all the Zimbabwean dollar equity was wiped out with no compensation during the "conversion" to the USD.

In hyperinflation, always stick to physical precious metals and physical rare resources ; avoid all paper-denominated assets, even some assets that would make sense even in an hyperinflation (stocks of companies that offer necessary resources, for example). It's too uncertain, and history taught us to wary.

Fri, 12/31/2010 - 01:51 | 839082 delacroix
delacroix's picture

ponzi, you're a quick learner( sorry, you looked like someone else)

Fri, 12/31/2010 - 06:56 | 839191 AnAnonymous
AnAnonymous's picture

It is not like it wasnt tried. Check Italy, France, Belgium for their marvellous gold idea during the GD.

And Zimbabwe is gold of course...

Thu, 12/30/2010 - 19:07 | 838658 IQ 145
IQ 145's picture

http://www.coinflation.com/silver_coin_values.html  Here's some info. on US Silver coins, which can be purchased in bags from various dealers. Nice page you referred us to; very interesting.

Thu, 12/30/2010 - 18:08 | 838581 SteveNYC
SteveNYC's picture

He thinks interest rates will spike but real estate is a "buy"......with a tapped-out public, don't think so. Everything else he says is pretty solid I would vouch.

Thu, 12/30/2010 - 18:21 | 838606 TheGreatPonzi
TheGreatPonzi's picture

Real estate, a buy? Faber is bullish on productive lands and precious metals, but never heard he was bullish on housing.

Thu, 12/30/2010 - 21:41 | 838885 Temporalist
Temporalist's picture

He said land not housing.  You are correct.

Thu, 12/30/2010 - 18:15 | 838595 docmac324
docmac324's picture

"Someone recently told me,"You can't eat gold!", so I shoved a T-bill in his mouth."

 

I needed that one!  Thanks for the BIG-belly laugh!


Thu, 12/30/2010 - 18:19 | 838602 greenewave
greenewave's picture

Bank of America is a Public Disgrace and Should be PUT OUT OF BUSINESS!! The BANKING ELITE have cost TAXPAYERS TRILLIONS in FUTURE BAILOUT MEASURES and the AMERICAN PEOPLE are SUFFERING!

To find out more about the TRUTH of the recent MORTGAGE SCAM, watch the YouTube video “BANK OF AMERICA ~ A PUBLIC DISGRACE” at (http://www.youtube.com/watch?v=cXDpOBOS94A).

Anonymous-

This is absolutely appalling and I am dumbfounded why the American people aren’t RIOTING in the STREETS as we speak. Thw civil and political unrest we’ve seen in Europe is without a doubt coming to the United States!

Bend over America and enjoy getting SCREWED by the BIGGEST BAILED OUT BANK in the Country!!

Thu, 12/30/2010 - 19:50 | 838733 SilverBaron
SilverBaron's picture

So we should put them out of business, put all their bad assets on the Fed balance sheet and all of their good ones on JPM's?

Wouldn't that just be helping the biggest to further consolidate and get even bigger?

Has anyone yet figured out how to dissolve a TBTF without creating an even bigger one?

Thu, 12/30/2010 - 21:57 | 838896 Max Hunter
Max Hunter's picture

We could have a public hanging... And you are right Cgreen.. You last video was pretty good too!

Fri, 12/31/2010 - 01:09 | 839071 GoinFawr
GoinFawr's picture

@greenewave

And there I was thinking you were abusing italics, ALL-CAPS and bold type, my bad.

Your indignation is righteous, stay focussed.

http://www.thesixtyone.com/s/MMd7WhFDstJ/

Language Warning

 

Thu, 12/30/2010 - 18:29 | 838623 FranSix
FranSix's picture

The one thing The Fed may be obliged to do when the chips are down, is to turn off the tap at the source and stop providing short term paper.

It can get away from being a presumed taxpayer entity and become a private bank once again.  But that would require negative interest rates, which it has sworn to provide any amount of paper at the discount window.  Even though its running a daily shortfall running into the tens of billions.  

And the inflation problem will be solved, should they turn off the taps, and money flow like nobody's business into The Fed, and the dollar won't collapse.

One day left this year to get that all accomplished.  

Otherwise, look forward to a certain fate of a Japanese-style deflation with very low interest rates and very high prices.  And a divided U.S. government that gets nothing accomplished.

Thu, 12/30/2010 - 19:55 | 838744 SilverBaron
SilverBaron's picture

Maybe they will be so divided that they can't reach a budget agreement and Obama will have to declare a state of emergency and suspend congress.  Then he will be dictator like Chavez.  And the law says that congress can't even review his decision for six months. 

Thu, 12/30/2010 - 18:42 | 838636 topcallingtroll
topcallingtroll's picture

You dont really have to take your gold overseas while waiting for the host to die. Bury it in your backyard with a single stack to minimize surface area and get it at least 4 feet deep. Buy thirty bucks of BB's and spread them around your entire yard. But dont forget to tell at least one person or leave a note in a safe deposit box to be opened only upon your death or incompetency. And...uh...I'm calling a top in treasuries.

Thu, 12/30/2010 - 23:37 | 838998 Midwest Prepper
Midwest Prepper's picture

Thanks for the tip on burying my PMs.  Keeping them in the house is crazy - my insurance company will reimburse only $300 of cash or PMs in case of fire or burglary!  I like the BBs a lot!

Thu, 12/30/2010 - 19:02 | 838644 Youri Carma
Youri Carma's picture

MUST SEE! Faber lays it all out for ya!

Mirror, Mirror on the Wall, When is the Next AIG to Fall? | Marc Faber http://www.youtube.com/watch?v=H0sS6a9RW2E

More important: http://www.bloomberg.com/video/65138708/

Marc Faber says and I paraphrase here:

U.S. Defecit trillion dollars as far as the eye can see ....

Real U.S. Inflation is between 5%-8% a year. Official figures are BS!

Thu, 12/30/2010 - 19:02 | 838646 TruthInSunshine
TruthInSunshine's picture

I am in full agreement with Dr. Faber (and Julian Robertson) that yields on U.S. long dated treasuries will rise strongly, but the Zimbabwe analogy with the U.S. equity market fails tragically. That isn't going to happen here, and anyone who suggests we'll need $10, let alone $100, to buy a loaf of bread in a year or even ten years - I think you are high.

I agree that the economy is extremely vulnerable to systemic earthquakes, but the Zimbabwe syndrome isn't in the cards. While M3 isn't officially used these days, it is a broad measure of the money supply, and it isn't exactly parabolic; in fact, it's somewhat flattish.

Look at John Williams' December 18th chart on money supply (M1, M2 or M3); M1 did accelerate with fervor for about 14 months, but it has dropped dramatically as of late, and M3 is absolutely cratering. http://www.shadowstats.com/alternate_data/money-supply-charts

As bearish as I am on the fundamental economy, I think the comparison of the American Economy, or projections of consequences to Zimbabwe are really senseless.

Also, there has been a lot of talk about China and Russia conducting some trade in non-U.S. currency, lately. I guess they may in fact be conducting a mini-trial. This does not mean that the U.S. dollar is about to be replaced anytime soon with another reserve currency. First, the construction of an alternate reserve currency is not exactly a simple task, nor can it be achieved, assuming there is even universal agreement (which there isn't) in short order. Second, assuming there would be a substitute reserve currency to replace the USD waiting in the wings insinuates that the world can quickly adjust to an economic collapse of the United States, which it can't.

I haven't even focused on Europe's or China's economic and political problems, and they have a fair number of serious ones.

Bernanke, as reckless as his policies have been, and as much as I detest him, has been principally focused on plowing enough cash into financials and banks to give them a cushion to weather the storm we're in, as their traditional profit models have broken down, and as their asset-backed paper has been marked down and continues to be marked down, and in fact, the Fed itself has become a buyer of last resort for a lot of that paper when particularly large entities need to raise cash (see Maiden Lane and its progeny).

Without these policies, we'd see banks dropping like flies (bigger and more banks than the S&L crisis claimed casualties, and by a wide margin). I argue this could be a good thing, as long as FDIC insurance is adequate to save peoples' deposits, as it clears the deck of the cancer, and allows for some price equilibrium and true discovery to come back into the banking/financial sectors. Cheap and increasingly cheaper assets is NOT a bad thing, Ben Bernanke.

Bernanke hasn't set the stage for Zimbabwe. He's provided replacement capital, using a lot of his political capital in the process - and taking on more and more detractors and resistance to future policy actions, to banks and financial institutions that are still fundamentally insolvent.

The lack of credit and demand in the U.S. is what's driving this crisis, and there's a lack of credit and demand because of extremely high unemployment and underemployment due to a global re-jiggering of production and services.

Bernanke has initiated a war with China to try and get them to revalue their currency to mitigate the effects of this, and he's losing so far, with even more disastrous results for U.S. consumers, savers and most others.

Thu, 12/30/2010 - 19:03 | 838651 Hansel
Hansel's picture

The year before in Bernanke's first appearance on 60 Minutes he said he was printing money.  Ben is full of shit.

Thu, 12/30/2010 - 19:16 | 838678 gloomboomdoom
gloomboomdoom's picture

Your wrong buddy. Were you also paying attention to what Ben said way back mid-2009?

"Double-Dip... Unlikely"... one year later.... Still surging!

Thu, 12/30/2010 - 21:33 | 838876 samsara
samsara's picture

...Still surging!

Can you list exactly What is surging?  beside Financial investment vehicles?

And who benefits by whatever is "Surging" besides the 10% of investment vultures who measure life with a $ sign?

Is it "Surging" for the younger generation with absolutely no job prospects?  For the Adults who lost a $20+ an hour job and have to replace it with 2+ 8$ an hour part time jobs?

Exactly WHAT is surging?

Thu, 12/30/2010 - 22:00 | 838905 Max Hunter
Max Hunter's picture

What did Ben say in 2006/7 about housing???.. care to comment on that.. you are such a clown..

What the hell is surging?.. You might want to look up that definition in the dictionary...

Was that you and HarryW I saw playing grab ass at a Trecky convention??

Thu, 12/30/2010 - 19:04 | 838654 CrashisOptimistic
CrashisOptimistic's picture

Bernanke is not printing dollars.  That's currency and that amount didn't change (nor is it relevant).

The other item, that he's not increasing the money supply . . . well that all comes down to the vast majority of Americans' wealth being in their houses.  As that disintegrates, continually, he creates money to replace it in the universe.  And he may be right again.  The money supply doesn't change.  He's not diluting.  He's replacing.

There is some argument about how that works out, and why and morality, but none of that really matters.  Money existed, then it was gone, and he's trying to replace it.

In the end, only oil matters.  Gold is not civilization's lifeblood.  Dollars aren't either.  Oil is, and you all know it.

Thu, 12/30/2010 - 19:11 | 838663 TruthInSunshine
TruthInSunshine's picture

It isn't just residential housing that has been literally pouring its guts out.

On a % basis, office, industrial and retail property has been bleeding like a suicidal hemophiliac with increasing intensity.

Stuy Town in New York is valued at about 1.3 to 1.6  billion (and that's probably high) after Blackwater and Tischman tried to do a flip after borrowing 5.2 billion on its purchase, and the John Hancock Center just sold for $900 million yesterday, and that was a property once worth about 2.3 billion.

I won't even touch upon the industrial property segment.

Banks and financial institutions are still lingering underneath all of this shit, as well as tons of bad residential notes.

Even IF the equity markets continue to rise, which remains to be seen (fundamentals do ultimately catch up to any Ponzi), that alone won't do enough to relieve the pressure from the drowning of other asset values.

Bernanke prayed for reflation in property values 24 months ago, and he did not have his prayers answered.

Thu, 12/30/2010 - 19:39 | 838714 spinone
spinone's picture

Yes, but don't forget from where the dollars are disappearing, to whom they are being given, and what is being done with them.

Thu, 12/30/2010 - 23:45 | 839008 Midwest Prepper
Midwest Prepper's picture

The dollars are being given to banksters - good men who have only our best interests at heart!

Thu, 12/30/2010 - 19:38 | 838715 TheGreatPonzi
TheGreatPonzi's picture

Again, we had this discussion before.

We must separate accounting from money, and money from value.

When housing prices go up, there is no increase in the money supply. Just as when beans and oil go up, there is no increase in the money supply. Though, there is indeed an increase in the money supply when this housing is purchased by credit (most of the transactions).

The problem is not prices, "value" or whatever, the problem is credit, because money is only created by credit.

The only deflationary threat currently out there is on defaulting mortgages, because a defaulted mortgage is the only thing that destroys money from the money supply.

Bernanke is not offsetting the deflation created by the defaulting credit, he is creating an enormous amount of money in a desperate attempt to prevent the default of the very mortgage providers and to refuel the banks' available liquidity (QE is exactly that, buying the Treasuries from banks at a privileged price for available cash which can later be used to create credit at 10fold).

Deflation and money printing are not a zero-sum game, where if you print 100 billion, that replaces the 100 billion destroyed like nothing ever happened, without anybody noticing. These 100 billion were 'to-be-repaid-value' (yes, the banks still care a bit about value, otherwise they would be printing like hell, have a Core Tier of 0.1%, and the CEO would fill his personal bank accounts with millions of freshly printed money). The 100 billion printed are just money. No value in it. You can look for decades, with a microscope, there's nothing backing it. In the end, I'm afraid there is mandatorily some inflation. Many bright men have failed to grasp that, and I'm certain Rudolf Von Havenstein had good intentions in Weimar Germany. In that case too, the War produced deflationary pressures and stock shortages, and the central bank printed their way out.

It is true that fiat paper has created a whole new ultra-complex and modern paradigm (we wouldn't be talking like that in the 1800s, a crisis was a crisis, and nothing could prevent it to unfold). Without knowing the whole story of banking, central banks and accounting rules, it is impossible to grasp the exact effects of money printing in the case of global deflation.

Thu, 12/30/2010 - 19:49 | 838727 TruthInSunshine
TruthInSunshine's picture

That's why I had wrote this above:

The lack of credit and demand in the U.S. is what's driving this crisis, and there's a lack of credit and demand because of extremely high unemployment and underemployment due to a global re-jiggering of production and services.

In a fractional reserve system, a long term decline in demand for credit and the death of demand for goods = death of the economy.

Fractional reserve systems require exponentional increases in credit demand and end consumer demand for goods to survive, by their very structure.

Thu, 12/30/2010 - 20:32 | 838769 TheGreatPonzi
TheGreatPonzi's picture

That's true, as the current economic system can only survive with continued credit growth. It is not by chance if every recession post-1945 has ended with mild to high inflation - there has been, one way or another, some printing to postpone the crash that would have happened. In the current case, the crash is too big: printing would mandatorily cause hyperinflation.

Imagine if it was not the case: that would be wonderful, wouldn't it? Imagine you're a government, and you want your GDP to grow. You order the banks to create 3% of GDP fueled by credit, and when the credit bursts, you print to "offset" the deflation. In the end, you would be 3% richer. (3% - 3% + 3% = +3%). This is nonsense. If that could work, we'd all be driving Lamborghinis, as the secret of the horn of plenty would have been found.

Thu, 12/30/2010 - 23:49 | 839013 Midwest Prepper
Midwest Prepper's picture

And I'd chose to ride a magical unicorn!  When my bank account ran low, I would just go to the store and buy more money!

Thu, 12/30/2010 - 20:11 | 838772 TheGreatPonzi
TheGreatPonzi's picture

I'd like the coward who junked my post explaining his position.

Thu, 12/30/2010 - 20:15 | 838776 TruthInSunshine
TruthInSunshine's picture

It's gloom&doomer or a similar dipshit.

I wear junks as a badge of honor now, and find that the more dogmatic the people are whom I am disagreeing with, the more likely they are to resort to petty retaliation.

Fri, 12/31/2010 - 11:14 | 839415 ZeroPower
ZeroPower's picture

I would not read into junks too much sir..

Thu, 12/30/2010 - 22:54 | 838962 gwar5
gwar5's picture

How are you going to pay for your oil?

The Saudis are not keen on your dollar replacement. 

If USD are so easily replaced what value are they, really?

Fri, 12/31/2010 - 13:38 | 839797 DaveyJones
DaveyJones's picture

the saudis are keen on our military protection for their leadership that, like ours, is growing less and less popular with their own people

Thu, 12/30/2010 - 19:05 | 838656 Samsonov
Samsonov's picture

“If you print money, the currency goes down and the S&P 500 goes up.....Investors may look at 2012 and 2013 with horror."  That can make sense only in the long-gone, buy-and-hold world.  I concur that the market will go up, for a time at least, but fail to see the horror in that.  Long term, sure, inflation will ignite and it'll be a new game.  But for now, ride the melt up.

Thu, 12/30/2010 - 19:10 | 838666 Atomizer
Atomizer's picture

Quite honestly ZH'ers and spooks that monitor this site. DHS has assisted in a new taxpayer fleecing vision. The UN vision is to decouple all religion. Indoctrination of world currency, universal health care is primary goal. The UN/IMF/World Bank/BIS plan is to create a radical event under a socially government engineered terrorist mission.

Present bankers are insolvent. Enron documents in the office of the FBI were lost in WTC 7.

Meanwhile, we hear about threats and national security. North Korea and other terrorist zones.

For the spooks reviewing my post. Can you explain the lack of central banking presented in Iran? Who is the muckey muck of listed companies who have been ban by the UN? 25 years is a long time. Crafted nuclear threats and US media can guarantee a Central Banking location.

How will you spooks control Afghanistan rich mineral control vs. China African control?Methinks, a epic failed attempt to create chaos.

See below

Post:

Companies With Permission to Bypass Sanctions
Over the last three presidential administrations, the United States government has granted nearly 10,000 special licenses allowing almost 4,000 American companies to enter into transactions that would otherwise be prohibited by trade embargoes and sanctions rules. Most of the licenses were issued under a broadly defined “humanitarian” exemption mandated by Congress that has allowed companies to do billions of dollars of business in countries that the United States has blacklisted as state sponsors of terrorism including Iran, Sudan and Cuba.

TOP TEN
Bank of America
217 Cuba (165) Iran (19) Kosovo (11) Sudan (9) Non-Proliferation (5) Multiple (2) Iraq (2) Burma (1) Weapons Mass Destruction (1) Yugoslavia (1) Specially Designated Narcotics Traffickers (1)
General Electric
213 Iran (160) Sudan (35) Iraq (11) Libya (6) Cuba (1)
Citigroup Inc.
185 Cuba (45) Non-Proliferation (38) Iran (37) Kosovo (22) Iraq (15) Libya (12) Sudan (4) Burma (4) Yugoslavia (2) Specially Designated Narcotics Traffickers (2) Taliban (1) Zimbabwe (1) Vietnam, Cambodia, North Korea (1) North Korea (1)
Coico Medical L.L.C.
129 Iran (129)
American Pulp & Paper Corporation
128 Iran (128)
ABS Global Inc.
99 Iran (99)
Bank of New York
95 Cuba (95)
Hercules U.S.A. Inc.
92 Iran (92)
Siemens 89 Iran (50) Iraq (34) Sudan (5)
Boston Scientific Corporation
76 Iran (75) Iraq (1)

Thu, 12/30/2010 - 19:12 | 838670 Horatio Beanblower
Horatio Beanblower's picture

Fascist bastards...

 


"EU bans herbal remedies: another victory for corporate interests"

 

http://blogs.telegraph.co.uk/news/danielhannan/100070000/eu-bans-herbal-remedies-another-victory-for-corporate-interests-over-the-consumer/

Thu, 12/30/2010 - 22:48 | 838953 gwar5
gwar5's picture

Controlling all food and medicine is now the fascist chic thing to do.

What better way to keep people in line. 

They're moving down the road of stopping people growing their own gardens.

Thu, 12/30/2010 - 19:21 | 838671 gloomboomdoom
gloomboomdoom's picture

I just sold all my GOLD... So much doom out there yet 2010 was a historic year and the economic recovery has taken off.

My GOD is it so difficult, folks? We are in recovery.

Are you ready to yet again miss out on yet another huge move in the markets?

Is Bernanke really that stupid? I starting to believe he knows what he is doing and we should be greatful!

Thu, 12/30/2010 - 19:41 | 838719 spinone
spinone's picture

Do you think that Bernanke and the institution he represents is operating in YOUR best interest?  If so, then you truly are lost

Thu, 12/30/2010 - 19:54 | 838742 gloomboomdoom
gloomboomdoom's picture

No... I do not like the FED, but guess what? It is never going away!!!

Why? The American people JUST DON'T CARE!

Ireland and Greece are already paying for their crimes, mostly generational in nature... Bernanke is a saint. He re-wrote the laws of Macro Econ!

It's time to give up this ridiculous notion that we are going to "get back" to some previously prosperous time. Wall St. with the help of their government friends have looted this country. It's done and they are not going to give the money back. Housing prices will continue down for years and years because housing is the only flexible cost of existence (food, energy, insurance, etc. are not flexible). Unemployment and low wages will be the driving factor of our new lives. Right now their is a lot of talk about job creation. You know what? Those are $10-$12/hr jobs being created to replace good paying careers. It's not the same thing and these new wages being offered to Americans are not the kind of money that buys houses. The low interest rates are mainly benefiting wealthier people by letting them refinance all of their debt at bargain basement prices. The average American is losing his job or getting pay cuts and layoffs and cannot take advantage of the low rates anyway. His only real credit is his credit card currently charging 20% interest. As long as the average American keeps voting to do what is best for the wealthiest top percentile earners instead of himself, we will never "get back" what used to be the middle class.

Thu, 12/30/2010 - 20:17 | 838771 Samsonov
Samsonov's picture

It is much simpler than Americans not caring, which implies an informed decision to ignore something.  It is a case of simple ignorance.  I can confidently say that not more than 1 in a 100 know what the Federal Reserve is in even the broadest terms, much less the consequences of its actions or its constitutional underpinning (if any).  I am not making a trivial distinction, because those who just don't care are harmless; however, watch out for the ignorant, who, once desperate, cannot be reasoned with.

Thu, 12/30/2010 - 22:55 | 838964 Freddie
Freddie's picture

Americans are brainwashed 24x7 in HD with 40" plasma idiot boxes.  Fox is an Obama cheerleader now.  they know they can control the sheeple with TV - ball games and reality BS.  Just like failing Rome with bread and circuses.

Thu, 12/30/2010 - 20:27 | 838788 TheGreatPonzi
TheGreatPonzi's picture

Finally, an insightful post from gloomboomdoom. I guess he's just like me, a disabused man who loves trolling.

The history of banks and central banking has been the story of quiet looting and pillaging by small oligarchies, with the mandatory support of the government in place, which they have almost always granted themselves.

gloomboomdoom is right when he's not trolling: the prosperity will never return. The last century, and his last coughing agony (i.e. the 2008 crisis) has only been the slow looting of an entire country. Now that the host has been killed by the parasite, the bankers will just go to another country.

Thu, 12/30/2010 - 20:23 | 838790 spinone
spinone's picture

This is the endgame of the Triffin Dilemma.  The Dollar will not be WRC for another generation.  When it isn't, the FED will go away.  Its already bankrupt.

Thu, 12/30/2010 - 22:46 | 838951 gwar5
gwar5's picture

Triffin Dilemma? I have to look that one up, I missed that episode of Star Trek.

Thu, 12/30/2010 - 23:56 | 839018 Midwest Prepper
Midwest Prepper's picture

Triffins were those cute little fur balls... He's making an obvious reference to the Bernank's cute, fuzzy "trust me I'm smart" beard.... : )

Thu, 12/30/2010 - 20:30 | 838803 gmrpeabody
gmrpeabody's picture

+2011

Thu, 12/30/2010 - 22:03 | 838908 gloomboomdoom
gloomboomdoom's picture

A troll... I am not.

Marc Faber is a genious... I hope everyone listens very carefully to this man. He is not your average doomer (*cough* Peter Schiff- Koch brother's puppet dumped on Ron Paul in favor of Sarah Palin)

http://youtu.be/H0sS6a9RW2E

Thu, 12/30/2010 - 22:06 | 838910 Bay of Pigs
Bay of Pigs's picture

"greatful"?

Nice schpelling. Where do you come up with this bullshit troll?

 

Thu, 12/30/2010 - 22:43 | 838948 gwar5
gwar5's picture

Great move. I'm thinking NetFlix is going to be the next big thing?

You go girl.

Fri, 12/31/2010 - 00:33 | 839042 tmosley
tmosley's picture

Sold your gold?

Hehehe, there's one born every minute.

Thu, 12/30/2010 - 19:22 | 838682 Youri Carma
Youri Carma's picture

Some Goodiez:

Peekaboo Accounting for dummies explained by cat LOL http://www.youtube.com/watch?v=Ut0xcYmQRNw

Credit Default Swap…Oui? Crash JP…Non?, 28 December 2010, (Trade with Dave) http://tradewithdave.com/?p=4419

Blithe Masters http://img.photobucket.com/albums/v393/youricarma/Miscellaneous/BlitheMasters.jpg

Blithe Masters Vampirella I http://img.photobucket.com/albums/v393/youricarma/Miscellaneous/BlitheMasters-Vampirella1.jpg

Blithe Masters Vampirella II http://img.photobucket.com/albums/v393/youricarma/Miscellaneous/BlitheMasters-Vampirella3.jpg

Definition of BLITHE

lacking due thought or consideration : casual, heedless <blithe unconcern>

Examples of BLITHE

She showed blithe disregard for the rights of others.

She was blithe about the risks to the economy.

http://www.merriam-webster.com/dictionary/blithe

Thu, 12/30/2010 - 20:06 | 838761 Jay Gould Esq.
Jay Gould Esq.'s picture

Vampirella has to do someting about that camel toe.

Thu, 12/30/2010 - 21:06 | 838851 Yits and the Yimrum
Yits and the Yimrum's picture

that bitchez cold eyes looks like she just dropped in for a short vactation from Hell

silver Bitchez

Thu, 12/30/2010 - 19:31 | 838700 merehuman
merehuman's picture

bragging on your foolishness is unbecomming. trivializing your one true asset is not so smart either. Says a lot about you, as my response says a lot about me. Likely we are both fools.

Thu, 12/30/2010 - 19:42 | 838723 Atomizer
Atomizer's picture

That silly movie about Minority report is too close for comfort for the PTB. Its a like a DVR, in a sense.

Just like JPM bought the electricity era, the thieves will not be able to lie and feed the media spun antics. Telsa will displace free energy.

FYI

Thu, 12/30/2010 - 19:46 | 838726 robertocarlos
robertocarlos's picture

We're interested in the Phoenix Coyotes. Do you think the City of Glendale can float a 100 million bond based on 5500 parking spots? Somebody mentioned they have 27 billion in assets so a bond issue is no problem.

Thu, 12/30/2010 - 19:59 | 838750 Atomizer
Atomizer's picture

That Bond will never be paid. Someone has hedged. Feel sorry for the poor fucks that invested.

Thu, 12/30/2010 - 19:55 | 838736 Clapham Junction
Clapham Junction's picture

Taleb was dead wrong when he first said short-T bond was a "no brainer."

I think the double-dip stock event is still more a probability than rate explosion.

Just my $0.02.

BTW, I also think a US sov. debt default is very unlikely, meaning that while holding a 30 year T-bond to maturity is a dumb investment, it is not IMO, a suicidal one.  Even more so for the shorter maturities.

Thu, 12/30/2010 - 20:23 | 838785 jmac2013
jmac2013's picture

If you're talking US Treasuries, of course they won't default.  It's quite obvious that they will just print their way out of debt. 

Looks to me like the FED will print and print and print until they swallow up all of the US government and corporate america's bad debts and make debt holders whole again. 

As for holding Treasuries until maturity, I'm not sure that the dollars you receive as a premium will offset the loss in value of the dollar during the length of maturity.  Or at least that very real risk has to be factored in.

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