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MELTUP - "The Beginning Of US Currency Crisis And Hyperinflation", The Viral Video
Must watch hour long video from Inflation.us that is now making the viral rounds, explaining what everyone on this website understand, in simple language. Please forward to your friends and neighbors. Inflationist or deflationist, the facts behind this video are undeniable. It is time for the truth about our economy to break through the propaganda machine.
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I believe that US and ECB authorities will use whatever ammo they possess in their holsters to prevent a full on meltdown.. ie.. they'll print enough money and intervene in any market they choose to (whether this is within their authority or not) and this includes bond, stock and currency markets. I was kind of surprised ECB/Fed did not covertly support the CAC or the Euro last friday. Perhaps they don't have as much power as I think they do ?? We'll see..
I watched the Meltup video, interesting and heard it all before of course.
Have been reading Armstrong, his theory is that money supply doesnt cause inflation, but the combination of people fearing for the future and losing confidence in the value of their currency
http://armstrongeconomics.files.wordpress.com/2010/05/armstrongeconomics...
The Fed wont cause inflation until the money they create is spent. One could probably argue that they are causing and will continue to cause inflation in financial assets. I think their crusade against deflation will stop just short of where the economy needs it, that is I think it will fail to cause inflation in house prices (which are not a purely financial asset) and so fail to allow consumer spending to rise.
What we are seeing is the Fed giving free money to Banksters, who use it to bid up the asset classes they interact with (equities, derivatives, bonds), having the effect of making them whole. Not sure what they intend to do once they are back at par from 2007/8 levels, they cant sell them to anyone. I guess they will just pyramid on top again, pity for them they wont have carbon credits to do so (I think thats a big hole in their side, the lack of cap and trade).
However because the Banksters dont lend to the 'real economy' we wont see any productive capacity increases (i.e capitalism!) or rising house prices from this free fed money, not at least until AFTER we reach 2007/8 par.
The banks will be made whole through financial asset inflation, Main St will be broken on a lack of consumer spending and currencies could very well lose the confidence of the people who formerly used them. That may already be happening in the Euro Zone.
On a Gold Bug note, are there any aussies who have used the Perth Mint? I was looking at their prices and they are charging AUD$2500 for a 1oz (AUD$1360 Spot) coin. Does anyone know if this is a wider margin than normal?
Where are you getting that price from? Bullion coin prices at http://www.perthmint.com.au/metalPrices.aspx selling for $1465.45 off a $1395.67 spot.
ugh yeah you are right, was apparently looking at the 'commemorative' coins.
http://www.perthmint.com.au/catalogue/australian-koala-2009-gold-proof-c...
I clicked freaking 'gold coins' and it took me to the 'special' ones. Thanks for the heads up.
Everything gets propped up until after the 2012 election.
The next figurehead leads the crackdown. Or TPTB decide Barky is still usefull and he leads the crackdown.
Either way 2013 is a bitch.
highly ironic that MA is released in 2012.
MA in 2012? What's MA? Does it have anything to do with the long count?
Martin Armstrong - got it.
Thanks for that link. Very interested to read someone making that argument.
Edit: Wow, honorable mention for most bizzaro format ;~p
Nother edit: Having a hard time taking this guy seriously...
Last edit: Okay so after definately establishing himself as lunatic fringe with his Kozinskyesque format he goes on, at length, as to why we should take him seriously. Having made some pretty good observations on the nature of creative/emergent thinking he switches to making his case where, in my opinion, he mistakes symtoms (hoarding followed by hyper velocity) for root causes (monetary dilution/oversupply). Finally he proceeds to rail about solutions while offering none. I'm calling drivel on this unless someone can convince me otherwise.
"the lack of cap and trade" : agreed, that's the thorn in the camel's hoof as the caravan approaches the eye of the needle. get ready for another attempt to ram it down our collective throats...coming soon to a laptop screen near you.
wow! MA's latest cover sketch ranks right up there with Behind the Curtain.
another addition for the Howard Beale Collection?
anyone who watched Meltup 101 and wants a graduate-level class on hyperinflation should click the link above. Mr. Armstrong is dropping knowledge bombs once again.
In any case, you do pay a premium to buy from the Perth Mint. You'll find that their bid ask spread is quite large compared to what you'll find on say Kitco.
Hear this....
The only thing that the government can do to resolve these issues is to shrink very quickly....
This means both state and fed governments.
There should be an all out movement towards business formation.
This means making the tax component a very small percentage of all goods and services prices.
This requires a very simplistic decision.
AND HERE IT IS:
No taxes other than these:
5% Fed VAT
10% State VAT
Nothing else....no other taxes by law...no further debt allowances by law.
The power goes back to the states ....with the FED Lobbyist system being all but eliminated.
........................................
Here's what will happen:
The smartest/most entrepreneurial people in the world will beg to domicile in the US.
There will be labor shortages in the US.....and the US will return quickly to being THE USA....
..........................................
Or one can continue to swim in the FASCIST BULLSHIT OF A COUNTRY THAT THE USA HAS BECOME...CERTAIN TO DECLINE INTO THE ABYSS....
Ditto. There is a less agressive version of this sentiment that would institute an Amendment limiting federal spending to 20% of GDP.
Great comment, there are lots of great comments in this thread but I like your point. I would add that state laws need to be amended as well, or the new tax will do nothing as debts pile up. New taxes are fine, but not to pay for the same crap system that got us here.
Yes, we're broke; yes, we spend way too much; yes, we've created an unholy alliance with China to feed the gaping maw that is the American lifestyle.
But the laughable policy prescriptions here show that the gap in understanding between economists, financiers, and policy makers is wider than ever...ask one to work in the other's sector, and inevitably disaster results. If you really want to fix things, there's little choice but to ask people to be fluent in both economics and politics--and given the way things are going, there's no way in hell that's happening.
BeSosaNotTony
If you really want to fix things, you either need a dictator or total independence from the heavy hand of government. Total control or no control.
Right now things get distorted and watered down beyond belief. Because everyone has an interest somewhere to support. So legislation becomes a group effort, and we all know what too many cooks do.
Personally I'm a fan of the benevolent despot approach.
Hmmm, if that's the only choice then I'll take the other side. I'd much rather take my chances in Dodge City than in Pyonyang.
Well said.
Do you know any benevolant depots available for the job?
Our Constitution was a benevolant despot, limiting what the central government could do to us, but that got thrown out in FDR's time, with the cowed Supremes of the time deciding the Commerce Clause permits the central government to regulate Intrastate Noncommerce in the case of a landowner who raised grain on his own land to feed to his livestock and family. The benevolant dictator, our formerly stone-dead Constitution, was removed in a coup d'etat by the living turds of the moment, allowing the central government to grow into the omnipresent Tyranny it has become today. Restoring the meaning of the Commerce Clause would neuter the beast, but you know, stare decisis and all that....
I'll do it.
I want the free house and free food, and I don't care what other people think of me.
Ha ha. Thanks for that chuckle. (being a great liar and sadistic helps too.)
On the meltup's main thesis, at least it seemed like the strongest take-away for me (its about all I remember);
If its true that tax reciepts cant even cover the cost of Medicare, Medicaid and Education, then the USA is indeed in a debt sprial. Sure the Fed can monetize (probably already are), but even 0.25% interest is still exponential (just delays the hockey stick), so the debt figure will continue to rise to ridiculous levels. The Fed figure they can manage this, that as long as its all just figures on a spreadsheet, 1Tn and 10Tn is just a keystroke difference. I'm trying to figure out why they are wrong.
I mean sure, eventually China et al wont bother to buy TBills anymore, but who cares, the FED will buy them (or their stooges will).Whats going to break the game? We wont see any wage inflation, we will only see PPI increases if the stooges use the money to bid up commodities (which they might be stupid enough to do).
Whats to stop the USA having 100% Government employment, funded by infinite FED money? Is it because the USA isnt self sufficient, and needs to trade? Im seriously asking, why wont it work?
You answered it: It won't work because printing doesn't increase productive capacity, and importing a barrel of oil will require a zillion dollars.
At this extreme, all printing does is undermine confidence in the unit of currency until people don't trust the unit -- a baker will demand a chicken in exchange for a loaf of bread, and won't take dollars no matter how many you offer.
I already have been telling my clients I will take 10 laying hens or 5 oz. of silver. Other than that, I only except cash, money orders and checks. I will not do credit or debit cards. The truth is, I would like to go to 5oz/hens and forget about the other. :)
Research Zimbabwe for that answer
This video is a mix of spot on observations and completely retarded conclusions. If this video could just focus on the issue of FED printing, interest rates, inflation and debt; this would be extremely worthwhile. However, it jumps to ridiculous conclusions like eliminating the Departments of Education and Energy, because their expenditures have risen. This is so retarded. First if you are printing money, your costs in everything are going to rise. So it is perfectly normal to expect that costs will rise for Education and Energy. The video then compares our situation to China. The creators of this video have no idea how China works. They think China is a free market economy. It is not. The Chinese government invests heavily in both education and business. The Chinese government makes sure that people have food (welfare). This video goes on and on with ridiculous ideas.
I found this extremely disappointing. If they could have just kept their focus, this would have been worth sharing.
- ah yes, you are correct...must see.
http://www.youtube.com/watch?v=gR2nx9I8f5k&feature=related
wow, cool link. So the NIA is dodgy eh?
Thanks RS...
"Trust no one."
That is why I like ZH.
phew, almost forgot that one
+1
I too had several moments where I was saying, "yeah, yeah"...only to be followed by a "WTF?!"
The overall premise is sound, but some of the analysis simply does not pass muster and it would be improved with some rational self-editing.
"However, it jumps to ridiculous conclusions like eliminating the Departments of Education and Energy"
Well, lets elliminate the one because it is Orwellien and doesn't work(the state of education gets worse not better thanks to its ministrations) and is STUPID (education is a hyperlocal activity, not something that can be centralised, duh). The Department of Energy seems to function on the logic of reducing and impeding supplies of energy and thwarting their use. Another subuseless bureaucracy we don't need.
China? Stopping people from starving? I'd like to see some evidence of that (beyond disaster relief). China is not well known for supporting the welfare of its people by any stretch of the imagination.
China does in fact have a free market within all of its free market zones, which surround each of their major coastal cities.
Why do you think the ideas are ridiculous? Because you haven't thought them before?
The first thing that springs to mind:
"SILVER BITCHES"
LMAO
How much simpler must things be laid out before everyone begins to understand we need a complete 180 on spending and the return of overseas jobs to America and quickly.
Now that wouldbechange we could believe in. If you don't make it here, we'll tax the crap out of it. it works for China, Brazil, Japan and Korea. We could also enforce WTO rules for currency floating (china). Our corporate farmers might not like it if we play by WTO rules though.... Or enforce immigration laws, but I digress..
Never about simplicity. Always about pain.
We have to hit rock bottom first.
Tyler, with all due respect, lets take a look at who is behind this video.
Jonathan Lebed
http://en.wikipedia.org/wiki/Jonathan_Lebed
http://www.cs.brown.edu/~rbb/risd/Lebed.html
http://www.youtube.com/watch?v=dFXjPyqPF3Y
George Hemminger (aka youtube user George4title)
http://www.youtube.com/watch?v=Yloely_r31M
http://www.youtube.com/watch?v=gR2nx9I8f5k&feature=related
Inflation.us is a stolen domain.
Inflation.us - NIA Scam
The Interwebs on May 12, 2009 at 1:22 pm
I wrote about getting my domain, Inflation.us, stolen several months ago. There is no chance of me getting it back as long as it is registered at Register.com - The worst registrar I have ever dealt with.
Turns out the person who stole it sold it to a a group of guys that are now using it to scam people. They use a newsletter to "Pump and Dump" their worthless stocks, like spammers do with email.
Justin Faith called me last week thinking I was involved because the domain is still in my name, but I cleared up my, or lack of my, involvement. He's made a video explaining what is going on, I've embedded it below.
The stolen domain bit is an after thought, but the video has gotten 5,000 views in a few days so hopefully this will get to Register.com and I can get my freakin' domain back.
Whois: Inflation.us
Domain Name: INFLATION.US
Registrar URL (registration services): www.register.com
Registrant Name: Dan Anderson
Registrant Organization: Droplister
Registrant Address1: 355 Diane Cir
Registrant City: Abington
Registrant State/Province: Massachusetts
Registrant Country: United States
Registrant Country Code: US
Registrant Email: ***@globetraveilng.com
http://globetraveling.com/stories/interwebs/inflationus-nia-scam/
- for those who care to dig deeper, look into youtube users "Vision Victory", "Manoftruth", etc...they are SCAMMERS.
I brought this up to Celente and here is his response
"I did not know any of this. However, I see nothing in the video, nor what I said that can help this guy pump and dump stocks. As for his legitimacy ... who on Wall Street has any? I believe NIA did a solid job on this video and stand by every word I said. How anyone could suggest my words or Farber's, Schiff's and others that appeared in the video translates into stock recommendations is without merit. And, a person does need to sign up for a free newsletter to get spammed to buy stocks or other scams. Thanks again for the heads up ... much appreciated. Regards, Gerald Celente"
"We could see DOW 15,000 or 20,000..."
Nope...nothing at all.
And definitely nothing to help his SLV short position.
The sentiment seems to be that even if all the facts in this video are true, giving these particular people more exposure seems like a bad idea. Perhaps there is a different video that could go viral? Perhaps Zerohedge could get some help to do their own "loose change" video for the economy? If there is a chance that these NIA folks are shady, you wouldn't want to link your reputation with theirs...
Whenever you align yourself with another their is a change that you are being duped with the goal being controlled opposition.
This is counter-conspiracy stuff so it is out on the fringes:
TEA party + Sarah Palin = no credibilty, this protects the republican party.
911 for truth + Alex Jones = no credibility etc.
http://www.cs.brown.edu/~rbb/risd/Lebed.html
Fascinating read. Lebed seems like a bright kid.
His only crime is that he acted independently rather than checking in with the local Kingpin for permission first. May that be a lesson to all you kids out there.
10% good points/facts, 90% utter crap and hyperbole...
Was this made by the same people who made that "9/11 was a government conspiracy" video?
+1
A bunch of college kids looking for "the truth".
Yeah definetly seemed like loose change. Good selection of Celente, Schiff and Rogers but in all honesty if it takes a video like this to at least gets to the masses to understand something is fundamentally wrong cannot be harmful if it spurs them to do their own research and try to finally understand basic economics. I think we can assum makers of this film undoubtedly own alot of silver.
hear hear,
Maybe it's unethical but The sheeple may as well listen to scammers providing dodgy info whilst making the right conclusions: "we have to stop spending and adding to our debt"....... rather than listening to their Gov. telling them "the situation is under control" and "we do this for your own good" kind of crap.
If it takes a scammer to "enlighten" and stir the public into action, so be it.
It's not like this was going to be a clean fight to begin with.
Vermin vs Vermin
LMAO
This video is hogwash!!! Great Job Rusty!!
Oh I posted this video a couple of hours ago in another topic, thank you for posting it Tyler.
Anyway,
Let's keep it as a counterweight to all CNBS Crap.
LMAO
Faber and Schiff are awesome in this vid.
What's with the douche in the ascot?
i guess you are too pro china to bother with any reasoning here
Chirst, the site is stolen..too! Can't believe this got post on ZH...
Me thinks Bates has created a new version of himself.
Axe, you really think Meltup is a disservice to the public?
I forwarded it to eight people, some of them will also forward it. I am cheering for the truth to come out any way it can.
Axe, what are you cheering? What is your truth? Can/will you make a better vid? Or do you think all is well and fine the way things are going?
For the critical people out here. See it as a reasonable good video for your friends and family. Send it to them, and hopefuly they will learn something from it and get more interested in the current situation and what will come.
Scammers!
Lebed, Hemminger, Dimon, Blankfein, Buffett ...hey, wait.
Unfortunately the most likely senario given that the stimulus has failed to create a sustainable recovery thru jobs growth will be stag-flation or deflation depending on the extent of EU sovereign debt fall out. Either case no were near what is depicted in the film until there is a default auction which collapses the dollar.
Gerald always avoids the question: "And what interest does the government have in its self perpetuation and how does it continue to act in its own and in its owners best interest? How will it act when single or multiple persons try to act outside of what it deems to be its (and its owners) best interests?"
Force and Counter-Force is a Big Question in my mind and has been ever since I figured this scam out.
"Gerald always avoids the question"...i've noticed that too.
to take a stab at your Question, gut feeling says it has been, is and will be always about the Land (and what lies beneath it).
Some of the stuff in the video is good like the guy talking about junkies but a lot of it is a load of crap. Instantly raise rates to 6%. All you people forget that starving people riot under the banner "give us bread and then ask for virtue" and despite what you think you are not immortal. The terror or the nationalism of the early 20th century must be avoided lest a good portion of us die.
$12 Trillion, This year?
+
$6 Trillion in Freddie and Fannie?
+
$60 Trillion in unfunded... all due yesterday?
Fucking scare tactics..
How long did it take to run those up?
How many years will we be stuck in the land of 3% growth?
The Video is better than nothing but wholely accurate it is NOT! or trying to be accurate, it is NOT!
BOO! did I scare ya?
Heres some numbers for ya...
Here in America, total debt compared to GDP now stands at around 280% to 300%. (By definition, these numbers are estimates, since it's impossible to arrive at a precise figure, but the latter is not needed in order to get the gist of what's going on.)
This is the highest debt-to-GDP ratio that the country has ever seen. By my calculations, as we exited 1929, debt-to-GDP was about 200%, though it did rise pretty dramatically while we were in the Depression, to about 300%. But by 1950 or so, the debt-to-GDP ratio came in at about 150%. It rose to some 220% in 1990. So obviously, our current ratio of total debt outstanding to GDP is the highest it's ever been (the Depression excepted).
where did they get GSR of 16x? That would be way before the 80's...
The Fed and Treasury will continue to find ways to support the dollar through continued relative value runs-to-safety as the health of the world's fiat currencies are called into question one by one. The trick, of course, is to orchestrate this process without turning the gun on ourselves. I believe that the end game will be hyperinflation followed shortly (very shortly) by the introduction of a new world reserve currency.
Stabilization of the US is the focus right now because deflation and inflation can have equally disastrous consequences. It is the hope of Bernanke/Geithner/Summers/Obama that the relative strength of the US economy (and banks) will keep us in the position as the top turd on the shit pile when the restructure takes place.
We are walking a tight rope in a 60 mph wind while shouting "Hey, look over there! I think that other guy is about to fall." When the attention is off of us we sit down and rest while gripping the rope tightly. We will stand up (with refreshed legs) when the attention focuses back on us.
After all that has transpired over the past 3-years I don't underestimate the hubris of our economic policy makers. They believe that we are going to be able to manage our way through this crisis and somehow remain a world superpower. My belief is that we are going to lose this war (economic) in a unexpected (and absolutely spectacular) fashion. The timing is the only thing that is in question. In the meantime, treasury yields will not be permitted to rise, inflation will continue to remain hidden, banks will continue to enjoy a steep yield curve, and the US will continue down the 'road to recovery.'
A lot of people make the mistake in believing the government is all-powerful. It's not. It's not a monolithic entity.
No one in the government likes one another. Not even the cops. They're split into various precincts (regional gangs). Every state agency fights for funding. USAF hates the Army hates the Marines, and so on.
Most of the violence is liable to be between various ex-state factions looking to maintain a hold on power. The Ba'ath party looked very important and powerful to the old Iraqis. It broke quickly.
Mr. Roubini is our Baghdad Bob.
I think the video is pure alarmism, and should not mix up what Dr. Faber says with whatever pops into Peter Schiff's blowhard mouth. Dr. Faber says that a total world financial system failure is almost inevitable at this point, while Schiff is loudly grandstanding for votes.
A video that talks hyperinflation and currencies without once mentioning the Yen is probably not worth the time. And for all of the tragic alarmist nonsense this video portrays, and all of the facts and figures thrown around, not once, NOT ONCE does anybody even think about pulling up an inflation adjusted chart or refer to history where economic circumstances were the same. Its pure trash.
We'll see lower interest rates and a flattened yield curve. In a liquidity trap, it doesn't matter how much you print, it doesn't result in growth or higher prices.
http://www.NowAndFutures.com/forecast.html#bear_markets
-F6
A forward of this video to friends or family would convince them once and for all I really am an idiot. One of the most lame posts I have seen on ZH, I'm embarrassed for you Tyler, I really am.
They still need convincing? You must still be employed to talk that way.
What are your takes on agriculture as being an industry to concentrate on in order to rebuild our industrial base as a country? This video seemed to stress that issue.
Taking the issue of GMO off the table for a minute, can people get their collective heads around America becoming even more of the planet's breadbasket than ever before? America is known throughout the world for its foodstuff's quality. What other U.S. industry can claim that feat?
You better wake up Nobody.
http://www.youtube.com/watch?v=RZ6PW1J3bTQ
There's a big difference between CA experiencing drought conditions and govt crackdown on food production for the purposes of control.
That the sheep who made this vid don't understand that they've been living in an irrigated desert their whole lives speaks volumes.
I will try not to be too snarky about that video, and I am currently checking the facts that she stated while driving down that interstate.
What I do know is that in California there is a continual war over water rights with the major metropolitian areas winning. I also know that rice was heavily produced in California until the past 2 years. The price for this rice (medium grain) increase and the southern states (mainly Arkansas) immediately took up the slack. Also, California has in the past been a major producer of cotton (long staple). The cotton market tanked 3 years ago and it is my bet that many of those farmers took the water payment and stopped farming cotton on their land. Farmers are the most logical and consistent free market participants (even though many are heavily subsidized, ie. cotton, rice, corn, wheat, and grain sorghum). If they can get paid more to not plant and divert the water to the cities, that is what they will do. I will hazard a guess that much of the desert shown in that video was probably cotton land.
Now, although California does indeed have a good share of the agricultural GDP of the U.S., it is (as the woman stated in youtube) high value specialty crops. Those mainstays, like soy and corn, are grown in flyover country. What is slowly happening here is a move either to go mammoth or specialty. Both ways work. Both ways have downsides. But at the end of the day, quality does not suffer, and payment is based on quality.
California, Oregon, Washington, and Idaho are situated on high plains desert and are totally dependent on surface water for agriculture to survive. Get away from there and the Ogalalla area and crops grow quite well with minor help from ground water.
What needs to be noticed is that there is no other industry of this magnitude left in America. Agriculture maybe our last best hope as an export means to right our financial ship in the long run. Or maybe not.
Nobody,
Quality food was fazed out thirty years ago, replaced by Monsanto's GMO fluff. I was fortunate enough to grow up on a good sized farm in the southeast USA, we produced state certified foundation seed (soybean, fescue, barley, oats, wheat, etc., etc.) for our surrounding counties, seeds that could be passed down through the generations, that is until Monsanto became the farmers overlord. Monsanto has bought and payed for legislation that makes it a felony to clean and sell foundation seeds, if you get caught cleaning and selling seeds, you go to jail. We have our seed cleaner locked up in a barn, Monsanto is actively seeking out and destroying seed cleaners, and their owners.
So now, farmers have to bow down to Monsanto, and buy their bullshit seeds, that will produce a lot of fluff for one year, that's it, because the harvested seed will not produce again. GMO=Quantity, not Quality.
FYI, Monsanto owns Americas agricultural base, lock, stock and barrel.
Nobody,
Sorry, but farmers are destroying the Ogallala and what the cidiots will finish the job. Ogallala water has turned the Llano Estacado in Texas into the world's largest cotton producing region, but at current withdrawal rates they'll drain it in 30 years. This is not natural nor is it prudent. It is based on greed and short sighted thinking. I'm not picking on Lubbock cotton farmers, but I watched the same thing happen in the lower Ark Valley of Colorado. When the water's gone, the farms dry up...simple as that. The aquifer is faring better further north, but only because they haven't experienced the drought Texas has. The fact of the matter is that in addition to the problem Rusty correctly identifies with seed stock, the plains states are in no better long term shape than CA. We've been borrowing from the future for a long time. There needs to be a reset. Without one, life on this planet will be a lot different than what we're used to, for those of us "lucky" enough to survive.
Finally I heard Tylers voice he is = George Hemminger
Does George have a Russian accent? The "it was on the interweb so it must be true" rumor is that he has a Russian accent... But then I can do an okay russian accent when I am in a goofy mood.
Russian accent easy to acheive.
"The American people are going to have to face that." (Bankruptcy of the US.)
"This country will have to decide do we want to live in a free country, or do we want to live under totalitarianism."
- Ron Paul
We have less than ten years, the clock is ticking, and the end could come at any time.
What's it going to be?
You Gotta Fight For Your Right - Beastie Boys
http://www.youtube.com/watch?v=eBShN8qT4lk
It's The End Of The World As We Know It - REMhttp://www.youtube.com/watch?v=Bmxyj6iInMc
http://www.youtube.com/watch?v=OO18F4aKGzQ
Welcome to the united snakes
Land of the thief, home of the slave
Grand imperial guard where the dollar is sacred and proud
Come on lets do this shit for real now
Smoke and mirrors, stripes and stars
Stoner for the cross in the name of god
Bloodshed, genocide, rape and fraud
Written to the pages of the law, good lord
A cold-cockin it latch-key child
Ran away one day and started acting vile
King of where the wild things are, daddy's proud
Cause the roman empire done passed it down
Imported and tortured the work force
They never healed the wounds or shook the curse off
Now the grown up goliath nation
Holdin open auditions for the part of david, can you feel it?
Nothing can save you, you question the reign
You get rushed in and chained up
fists raised but I must be insane
Cause I cant figure a single goddamn way to change it
Welcome to the united snakes
Land of the thief, home of the slave
Grant imperial guard where the dollar is sacred
And power is god
Welcome to the united snakes
Land of the thief, home of the slave
Grant imperial guard where the dollar is sacred
And power is god
We all must bow to the fact were lazy
The fuck you obey me and why do you hate me
Only two generations away from the
Worlds most despicable slavery trade
Pioneered so many ways to degrade a human being
That it cant be chains to this day
Legacy so ingrained in the way that we think
We don't need to wear chains to be slaves
Lord that's a shameful display
The overseers even got raped along the way
Cause the children cant escape from the pain
And theyre born with the poisonous hatred in their veins
Try and separate a man from his soul
Youll only strengthen him and lose your own
Well shoot that fucker if he walk near the throne
Remind him that this is my home (now im gone)
Welcome to the united snakes
Land of the thief, home of the slave
Grant imperial guard where the dollar is sacred
And power is god
You don't give money to the bums
On the corner with a sign, bleeding from their gums
Talking about you don't support a crackhead
What you think happens to the money from yo' taxes
Shit the governments an addict
With a billion dollar a week kill brown people habit
And even if you aint on the front line
When the master yell crunch time you right back at it
You aint look at how you hustling backwards
And the end of the year add up what they subtracted
3 outta twelve months your salary
Paid for that madness, man that's sadness
With whats left get a big ass plasma
To see where they made dan rather point the damn camera
Only approved questions get answered
Now stand your ass up for that national anthem
John_Conner made some real good points in an earlier post (Sunday 09:31). Adding to what he said and to what the movie showed, I think it is obvious that it is now impossible for consumer spending to make much of a dent in the debt problem all governments are facing.
I agree that on a near-term basis we are likely to see some inflationary results from the low interest rate policies. The central bankers certainly are hoping for inflation. However, I don't think inflation will blossom as expected because government austerity efforts will quickly strangle both consumers and tax receipts. There is no way out of this dilemma.
The weight of debt is going to drag us down into a deflationary hole. This will extinguish the debt and kill enough production to force real changes.
I realize this is a contrarian view, but the "inlate to infinity" scenario is too obvious. I think consumers (in the aggregate) are too weak and have too few assets too few jobs to be full participants in the hyper-inflation scenario.
+1
The reality is debt servicing and liabilities are now so large, that taxes don't matter; government cutbacks don't matter; private sector austerity doesn't matter; passage of the US health care bill doesn't matter; re-structuring within US individual state budgets doesn't matter.
The stochastic/random component is the political one: I don't believe they can do *another* TARP ... while it's possible they massively print, it's not clear to me the political class can issue more bonds/debt backed by the taxpayer -- either the taxpayer or the bond market will force that to stop. That would be massively deflationary through default armageddon.
I give it a better-than-50% chance.
I am paraphrasing here but didn't Ben say he was comfortable with the fed balance sheet being as high as 9 trillion or so?
If that is what he is comfortable with then there is no telling how high he may go before he might feel uncomfortable. Maybe they go back to buying USTs? That would flood the market again with liquidity like 2009.
I think its game over if deflation finally shows up in a big way. I am guessing the fed knows this. However, there are many examples of hitting a stage of deflation just before hyperinflation takes hold.
This video is heroine for most of the zero hedge readership. Its conclusions are fucking BOGUS!!! But thats why I love markets, because when the fools buy into this propaganda, the MARKET WILL RAPE YOU IN THE ASS for your irrational investments. MUAHAHAHAHA
Zerohedge is likely the best source of nonadulterated financial news that exists and I can't trade without it anymore. I love the balance in opinion vs other media info. I certainly hope your right about your market thesis. What scares the shit out of me is that there are a ton of seasoned investors here all calling the same shots. If this doesn't spark a little alarm, well what will?
Ah, the power in faith...the belief that pieces of ink & paper backed by faith & CONfidence have value.
Pray hard enough and perhaps your fiat currency will miraculously turn into gold.
Pray hard enough and perhaps your gold will turn into energy and food.
My FRNs will?
Remember this: the difference between "gold bugs" and "deflationists" is in TIMING.
Gold bugs are buying NOW.
Deflationists are hoping to buy LATER right before the FRN goes hypernova. Every single ONE of them has announced their intention to move into hard assets DURING the deflationary liquidation. Even Douchinger. Land, energy, gold, whatever. They plan to buy it all up at fire sale prices, converting their FRNs into something hard because the currency will destruct itself.
I consider both short-sighted, just on different timescales.
How long before I see SDRs negotiated in terms of a basket of fruit instead of currencies?
My modest proposals for turning this thing around;1. freeze all immigration, legal or illegal and 2. Begin issuing new dollar notes backed by physical gold at a rate of $20,000 per oz. Old fiat dollars will continue to circulate and can be used to pay all debts not specifically requiring gold dollars. De facto devaluation combined with a new, relatively sound currency. Fiendish.
Every 401K holder is fucked. 401K and other similar retirement plans are just conduits of liquidity and fuel for the squids and squidlets to suck the blood of main streeters.
The choice is yours.
You would've rather paid the taxes on that income?
The lesser of two giant squid.
Retirement plans = dumb money. There is no protection, especially when the ratings agents are in collusion.
An attempted summation of the logical algorithm from 'meltup':
1) Sovereign debt was a problem
2) Sovereign debt became an acutely bigger problem when malinvested private leveraged losses were illegally transferred to the Sovereign
3) Malinvestment continues uncorrected
4) Sovereign international debt is unlikely to be repaid (because)
a. debts and interest on those debts are large
b. 'real' economic growth will be exceeded by further debt accumulation
5) Intrasovereign debt is also problematic as the future generation is greatly indebted to, and outnumbered, by the current
6) Receipts needed to avoid #4 and fund #5 can be attained (by)
a. economic growth (inhibited by #3 and demographics of #5)
b. increased taxes which would likely inhibit 6a and be politically difficult
c. continued inflation of the money supply
7) Most likely option would be a good deal of 6c
8) #6c with #3 will result in price increases, perhaps dramatically so
9) Paper money will likely decline in value relative to hard assets in the future due to repeated waves of 6c
Where is the logical flaw or at least the most 'hyperbolic' or 'bogus' component?
Assume for the sake of argument that Helicopter Ben came to his senses and raised the Fed rate as proscribed in this video, that we downsized our military/public sector, and reneg'd on our 'outstanding liabilities' to boomers and seniors.
Would the ensuing world of even more massive unemployment (from corporate bankruptcies), homelessness (option ARMs?), ignorance (no education for you!), rampant senior deaths (no medicare), and disappearing tax revenue (from the deflationary economy) still causing deficits, be better than hyperinflation?
We're confronted with a choice as to which generation of US citizens will be screwed harder.
There is another option its just not ready yet! :)
Do share. I can't wrap my head around a realistic exit plan that doesn't involve lining up bankers and seniors at a guillotine.
heh..i think the answer is somewhere between free unlimited energy for all as a sign that we are evolving as a species beyond politics and then the harnessing of human beings as energy sources (think solyent green if nuclear isn't adopted). The attainable next stage is that conversion of energy to food and health. We havevn't even got on the path of that yet. Anyway,in the interim the answer lies between our two photos and you better pray that it aint global warming!
We need to make the generation that screwed us pay. 15 years of illusory growth with borrowed monies and burst bubbles that has screwed the future generations.
Unfortunately for those who will still be around in 15 years, politicians always live in the present. Only the next election counts for anything.
Prescribe or Proscribe?
Prescribe means "to set down authoritatively for direction" or "to set down a medical procedure in order to cure or alleviate symptoms." The noun form is prescription, that is, something prescribed.
Proscribe means "prohibit or limit" or "ostracize or avoid in a social sense." The noun form is proscription.
The words perscription and perscribe do not exist in English.
Just Sayin' - Good point also...
Good call. I appreciate the spelling correction.
Hey Cheeky bastard !!!! I was just taking the piss out of you as I love your work, cheers
The video seems to cover most of the issues from a US perspective. Might have dwelt more on the inflation issue, focus on food was right, but more emphasis could have put on energy.
I, personally, would have focussed more on taxes being a form of inflation and also that the Fed is behaving politically when it penalises one sector of the economy over another. That is, the Fed Funds rate should be closer to that rate that does not penalise savers over borrowers.
I would also have spent a little time on the correlation of excess housing supply bubble (in expectation of rising house prices) being somewhat akin to the excess of money supply bubble (in expectation of rising interest rates).
I think that the video is well put together for that broad audience that has always regarded money and politics as rich mens games (Pelosi and Yellens "men are from mars moments" notwithstanding.
Main Street will be asking "where do I buy Gold and Silver coins" so I would get sponsorship from these retail outlets (probably not the hotel in Dubai that has an ATM for gold ingots!). I think it will also ask "are TIIPS any use" and "won't the Dow at 50,000 mean I am rich if I buy it at 11,000". I really like the comparison of gold buying a suit. As with the past, it may be that the inflation is bad for you argument has not been succesfully remembered. I think only Volcker has a) had the problem and b) resolved it with monetary policy.
Bravo, though!
PS watch out for the junkies attacking the video, ugly people need love too!
How can this end? Throw in Europe, China, and the U.S. and the only solution is complete breakdown of the political and economic systems that now exist. Put into the Okie vernacular - "It looks like the only thing that will solve this war!"
Interesting video, but the video's creator takes the bait and swallows the Red Herring. The video commentator seems to be reading from a speech from Fox News in their observation about federal employees. They are NOT the problem, the problem is the elected politicians. It is the corrupt political process that has caused the set of circumstances that we live in today. I am not a federal employee, but I do not blame them or harbor resentment - they are making an average living and do the work they were hired to perform. The politicians, business leaders, and MSM are the problem in this country. I hold a greater respect to the average small business owner, who works in their business and strive to make it succeed, than I do for any Fortune 500 leader who is surrounded by the real bright individuals who create the business' success.
I just finished watching the video. It's not that bad, in most respects. I disagree with the usage of historical analysis in an attempt to predict future price movements. That's the same kind of nonsense that the quant pseudo-mathematicians believe in.
I'm calling bullshit on the "short squeeze" theory.
Who will enforce that cover? The banks will just blow up, the contracts will die, and whomever has the real silver will be sitting pretty.
Absent the silver stuff, it's a fantastic video. My concern is that there will be tons of people scammed by gold/silver sales people that there will be an unmanageable backlash. IE when the ETFs and Mutual Fundies go bankrupt, the state and its agents could use that as an argument for governmental control of the precious metals markets.
They will be unable to control those markets, of course, unless they resort to SS tactics.
I'm just speculating on their potential propaganda moves.
You want to buy gold/silver, that's your choice. I just ask you to get the seller checked out, ensure that it's not counterfeit (this is a huge issue on eBay), and keep it concealed. Avoid bragging online about your hard commodity possessions.
Also, when listening to someone like Rogers, keep in mind that he's probably one of the smartest men on Earth. None of us will ever be able to fathom how his mind works.
There's a lot of smoke and mirrors with these guys. They'll sometimes say a certain think to fake out other people, and then head another way when their play doesn't work out.
Quoth Gandalf: "Keep it secret. Keep it safe."
Agreed. Settlement risk abounds in all "real" assets ETF's. Still, second hand wedding ring market is alive and kicking in most areas, my preciousssss. heh
I stopped watching this hyperbole at 7:45. Do the producers of this propoganda also work for the NRA or the Teamsters? Complete rubbish. Ok, so it demonstrates that budget forecasts are usually wrong. Wow, thanks for the education.
Videos like this reduce the quality of this blog as a source of contrarion opinion.
I might be wrong, but this video was put here as part of a validation process prior to public release (to main street, not wall street). Kind of like the Ben and Jerry videos that went out before the election.
I recognize the narrator's voice from another viral video - "Zeitgeist". Part fact, part fiction, but rather entertaining.
Austerity, imo, will not happen in the United States. Bread and circuses domintate American culture.
Woe unto thee who brings this 'game' down with austerity measures.
Damned europeans using fancy words like "austerity" (well i gues conservatorship and rehypothecation are fancy words).
We need a "street" word, like "pop that junk outta dat trunk" or "squeeze my ass, I pop a cap in yo mommas" :)
Somebody already had the link to this vid in a comment post recently... credit, kudos? Who was that?
This movie is bullshit, and the message could have been given to those less sophisticated about all things economic in a better way than this. This is an attempt to make the issues discussed in the movie make more appealing to Volkspsychologie via oversimplifying and using hyperboles and putting a stronger accent on already preconceived beliefs among the masses. I mean come on Tyler; surely a better way than this could have been used to make the point. Maybe linking Debt as Money and/or Debt as Money II which are, IMHO, a necessary watch for those who are just starting to be introduced to the way the system operates and how said system will end via cannibalizing itself. This has the same tone as Zeitgeist and it comes to no new conclusion.
what pain? have you no medicine or cure?
many options out there, your solution among them.
Ouchie, well thats cold CB! Do you have a storyboard that would be better. It's true the video isn't perfect in that solutions are hard to come by and are not tested, but to lay out the whole kit and kaboodle is tough to do. It may be too long (and need adverts to appeal to Main Streets usual attention span).
I find that people aren't stupid, they understand and can judge most things if they have the information and are motivated.
Back to first principles as an option. I might have a solution that says, you don't have to pay any tax if give one day a week of your time to the mirror image of your socio economic bracket (e.g GS dealers work (10's) one day a week in soup kitchens (1) and soup kitcheners work one day a week at GS. Now a lot of people might disagree with that, but sure as hell would make real a lot of issues.
a friend told me to buy gold...
this reminds me to the elevator guy story... I'll sell all my gold :D
Mikla is correct about debt being the underlying problem. What we are seeing is an attempt to somehow deal with the debt via inflation. This is the easiest policy for central bankers and politicians to adopt so that is what they are doing.
I think we are also starting to see just how wet the noodle is that the Fed and other CBs are pushing against. All the hype is about how to get the consumer to increase the rate at which "stuff" is purchased. The consumer won't be back any time soon because he is not only badly wounded but the governments and central bankers are continuing to suck blood from him (or her).
If you think back to the 2003-2006 period, we had relatively full employment and very healthy consumer demand. What happened? Consumers went broke buying "stuff" and governmnet budgets still went further into the hole. Simple logic tells you that no amount of financial gimmickry will cause the consumer to leap out of stagnation and suddenly purchase so much "stuff" that budets miraculously recover.
The noodle is so wet and limp that even record low interest rates aren't helping. This is shaping up to be an extremely serious political problem because at some point even the most dim-witted politician is going to wake up and say, "oh shit".
can understand some of the comments...broadly speaking the analysis is ok but on closer inspection a lot of it breaks down and is patchy (eg the china stuff) at best. it is of no value to the type of people who post on here. but inflation.us has had some debate on the internets already, my thoughts:
the average flump would be better served by listening to this than the msm. the only thing is that the inflation.us thing is ultimately touting stocks and the video neglects to mention in any detail the rigged game that is the US stock market, except for the fact it could go much higher in nominal terms. coincidence? but there some good people like faber quoted and hard facts like unfunded liabilities could be a wake up call.
peter schiff really seems like a broken record these days. nothing against his political run, as all he wants to do is shrink government, but he is so naive for seeing almost no manipulation, anywhere. he choses government bloatedness and incompetence as the explanation for literally anything, even where shenanigans are so blatant and a much more feasible explanation.
Saw the vid yesterday courtesy Hulk, and I liked it.
Downside of it, we need a department of Education and we need Health Care. Are the current systems worthless? YES, ABSOLUTELY. They are both epically flawed. But we need something. Do I have answers, no....
On the economic side, I think the video is poignant. The silver manipulation is accurate, and the FIAT and debt story is also. Remember people, trust no one with your life, only yourself and family. That being said, will you hold paper when it all goes down?
mostly agreed. The conclusions in the video were way off, IMO. But, some of the facts/charts were terrific. I'd like some more sourcing for these slick-style productions. Looks too sales-ish. I'd rather watch three really smart people debate these facts and the offerings. I also want to know who I'm listening to who's investing in the production and why. NIA? Never heard of them. Who's spending money on this production and why? Doesn't make them wrong, I just wanna know more when someone's asking you to draw specific conclusions with all that music in the background.
slick production, some interesting facts....
Tyler, you should check out Shorty Pants comments and links. The so-called National Inflation Association that produced this video --- could be a pump and dump scheme for precious metal. --- Ie, the video is actually a marketing tool that exaggerates and plays on inflation fears to pump and dump precious metals stocks.
Waste of time, American Peasants do not care about this.
The Prove: The congress (American peasant's voice) do not give a damn.
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