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Paul Mylchreest's Latest Must Read Report: Gresham’s Law Squared – Gearing Up For Game Over
From Paul Mylchreest's latest must read Thunderroad Report
Gresham’s Law Squared - gearing up for Game Over (pdf)
It’s getting serious, Gresham’s Law is kicking in and this isn’t any “run-of-the-mill” Gresham’s Law either – it’s “Gresham’s Law Squared”. Not only is there huge hoarding of gold and silver, but it is being compounded by the simultaneous transformation of the gold and silver markets themselves. Having been dominated by paper claims to bullion, all that matters now is ownership of the physical metal itself. The price of gold and silver on your Bloomberg screen is actually a HYBRID price of physical bullion and a larger amount of “paper” bullion, e.g. unallocated gold and silver, exchange traded futures, OTC derivatives and some ETFs. The paper bullion price and the metal price are still the same, but this market structure (which had successfully channelled much of the demand away from physical metal) is now breaking down.
When the screen price accurately reflects the prices of physical gold and silver per se, they will need to be FAR higher than you see today. Right now, the frontline in the battle between “real” money and paper currency is in the silver market, but most remain blissfully unaware of the significance of what is taking place. The world’s financial system, as currently configured, is falling apart. The vast majority, including bankers and brokers (who should know better), don’t appreciate it – a sort of tragi-comedy really. The bubble this time is in the money, so nobody will be spared. Buying gold and silver is the fear AND greed trade!
So here we are, waiting for the “event” which triggers a loss of confidence across the system. Will it be a sovereign, a US state, a bank, QE3 or QE5, the oil price, Chinese fixed investment, a false flag event (a convenient distraction/excuse) or a revolution? When it happens, the speed at which capital will move in today’s over-liquefied world will take people’s breath away. Where will it go? This is the global end of normal (baby) so that, first and foremost, it will go into the strategic assets - gold/silver, energy, food/agriculture, rare earths, etc, (as well as the equities of the financially strongest economies).
Bernanke’s QE2 is nothing short of economic warfare, in the form of a wave of inflation, directed at the rest of the world and even his own population (at least anybody without a large stock market, commodities or precious metals portfolio). This inflation is not temporary, as per the false reassurances, it’s baked in. Here is Martin Armstrong recently talking about the US budget deficit:
“A friend of mine on Capitol Hill, among others there, tells me there is no solution whatsoever until there is a MAJOR crisis”
In response, creditor nations have no other choice than to cut purchases of US Treasuries (China is selling), leaving the Fed increasingly standing alone. Rampant or hyperinflation results from the complete loss of confidence in a currency and we are being steered in this direction by the gentlemen above. Sure, they are smartly dressed, well educated (kind of) and pretend to know what they’re talking about with their carefully worded “policies”. It’s all NONSENSE. All they’re doing is leading us down a well-trodden path which has happened time and again throughout history.
In the meantime, there is evidence that the correction in gold and silver prices during January/ early-February-2011 only accelerated the process of Gresham’s Law Squared. In this scenario, buying some junior gold and silver exploration & development plays could translate into “Gresham’s Law Cubed”. These stocks should have the greatest leverage to bullion prices in the medium term if they execute well and big funds, as well as retail investors, increasingly buy in. Examples from the 1970s prove this in spades – I wish I’d owned the “5,000 bagger”. I’ve cut back some positions in some major gold and silver companies to fund small positions in a string of these (admittedly risky) juniors. I already had positions in ECU Silver and Fortuna Silver mines, which are development plays/early producers, and I’ve bought some South American Silver, Bear Creek Mining, Vista Gold, Minco Silver, Gold Bullion Developments, Arian Silver, Axmin, PC Gold and Majestic Gold.
Like wild dogs which have been cornered, our central banking friends are likely to strike back at some point, since gold and silver are their mortal enemies. So expect the unexpected. The enemies of gold and silver are twofold, benign economic conditions and rising real interest rates. The former is not on the horizon, so they might try to bluff the market into believing the latter - for a while anyway. We all know that they are well behind the curve on inflation. So don’t be surprised if, for example, a manipulated Non-Farm Payrolls (unemployment) report out of the US is used as the catalyst for a (small) coordinated rate rise across the US, UK and Europe. The problem for these gentlemen and their political brethren is their insane policy of trying to solve a debt crisis with MORE DEBT. We are already past the point of no return in the current monetary system and anything other than a very modest rise in rates will only bring systemic collapse sooner rather than later. Hu Jintao was only stating the obvious on 17 January 2011 when he said that the dollar reserve system is a “product of the past”. The bark of these wild dogs (and “monetary drug dealers”) is much worse than their bite.
If you think about it, the whole basis of world finance and the world economy as we know it - and all those millions of forecasts for corporate earnings and economic data generated by legions of analysts in investment banks - are based on one critical assumption. It all hinges on the “greater fool theory” continuing to apply to buyers of US Treasury bonds (and the debt of other western governments along with Japan) and that a demonstrably insolvent US government can continue to find “investors” prepared to lend it gargantuan amounts of money. Kick away the rotting foundations beneath the world’s reserve currencies and everything changes.
Do you remember the bit in the movie, “The French Connection”, where the mobsters bring in “Howard the chemist” to test the purity of the smuggled heroin. Howard puts his apparatus together, heats up the “testing material”, and comments as he watches the mercury rise: “Blast off: one-eight-oh…Two hundred: Good Housekeeping seal of approval. Two ten: US government certified. Two twenty: lunar trajectory, junk of the month club, sirloin steak. Two thirty: Grade A poison...(the mercury finally hits 240) Absolute dynamite! Eighty nine per-cent pure junk. Best I’ve ever seen.”
How about “Triple A-rated” poison instead of Grade A poison?
Just as “strange women lying in ponds distributing swords is no basis for a system of government” (quoting Monty Python), the greater fool theory shouldn’t inspire confidence in our current financial system, but it should inspire a response. Gresham’s Law is global, are you in or out?
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el diablo
Fantabulous post. /\m/\
'Gresham’s Law is global, are you in or out?'
I remember a time
We used to be smart, yesWhen crime was sublime
There was plenty of loot in the lair
We'd plunder and pillage
And ransack a village
With nary a worry or care
Then along came this king
With his soft-hearted dream
But he ratted us out in the end
So rally the troops!
We were meant to re-group
And return to our roots once again!
Are you in or out?
Gotta know without a doubt
I'm the one you need for a dirty deed
I'm the best, success is guaranteed
Are you men or mice?
Take a slice of my advice!
You want a fearless leader, one that's strong and stout
Better vote for me
Are you in or out?
Horrendously heartless
In ravaging raids, we were rough
We knew what we had
To be blissfully bad
Then Cassim brought this sensitive stuff!
And we strayed from the path
Of our rigorous wrath
Now we're taking a bath in the dust!
But we'll reclaim our winnings
Our humble beginnings
In turmoil and torture, we trust! Are you in or out?
Double-crossers or devout?
Put your faith in me
Pretty soon you'll see
I'm the prince of generosity
Are you foe or friend?
Here's the path I recommend
You want a ride to fame?
I've got the fastest route;
What's it gonna be?
We'll go robbing in all the right places,
Come along, boys!From Agrabah dunes to Bali
Imagine the fear on their faces
When we drop by for cookies and tea
Follow me!
Are you in or out?
If you're with me, give a shout (YAY!)
I'll lead you all the way
Into the glory days
We'll begin a life of crime that pays Are you out or in?
Make your choice now, sink or swim You can stick with me, or stay behind and pout
What's it gonna be?
Consider carefully
Are you in or out?
Aladdin
I've already seen the slaughtered grandma's.
Tried telling my mom to get out of her CD's (penalty is a laughable 1 year's interest). Her response "Leave it".
Tried telling my mom that paying $120 / year on a Merryl Lynchmob MM account that pays her $80 / year makes no sense. Again, her response, "Leave it."
Why, oh why, do people still have BOA accounts instead of credit unions, or "full service" brokers - I will never know, but I remember what a sales savvy (but booksmart short) biz partner once told me: "Always bet on layziness."
Most people believe 'if it's not broken, don't fix it'...
Most people watch the Dow and see that it is 'doing ok' ... as far as they know ... so, they don't do anything to protect themselves because they don't believe that they are riding on a train that is headed for an immovable object.
It is too bad, but it is so.
You are a true believer. Not a doubt in your mind, is there?
Nope, not a doubt that this system is totally FUBAR and will collapse into the steaming pile of crap that has morphed into.
When?
No one can honestly answer 'when'. Too many variables involved. Too many possible black swans. Right now there is some debate about whether or not the Fed will proceed with QE3 this summer. Can you honestly tell me if the Fed will/will not go with another QE?
Hell, the CIA could not and did not predict the collapse of the Soviet Union... and their budget is how much?
Capitalism in the US ended when redistribution of wealth started with the beginning of SS Ponzi System. Granted, at first it was a very small program. Look what that little SS System has led to...a Gov/Fed centrally planned economy.
Failure was assured with the retirement of baby boomers and the dumbing down of an ever more costly 'educational' system. America off shored it's manufacturing base with the blessing of Gov. We were told that we would become an 'information based economy'... How well has that worked out?
Do you really believe that this mess is fixable? Can you tell me 'when' housing will return to former price levels even in nominal terms? Can you tell me when the Fed balance sheet will contract and how that will be accomplished? Can you tell me who will buy US Treasuries two years from now, and I am not talking about Fed purchases?
Moving to Australia looks better and better every day, but how do I move my PMs?
I've believed all along the Fed was on a one way trip this time around.
They've done everything opposite what one should do. They're just hustling to get the IMF up and running as the world central bank.
The next big crises will probably not be the government, but something they can scapegoat.
Our government will try to keep it's hands clean to avoid losing our confidence so we won't go Cairo on them.
The Fed has kept their monetization disaster from the masses pretty well on purpose, so they're not it.
I hesitate to say, but war is always convenient. Wars rally people, create scapegoats, and create a desire for new institutions. Maybe it'll just be the "greedy" corporations and capitalistic system.
"Our government will try to keep it's hands clean to avoid losing our confidence so we won't go Cairo on them."
When people get hungry and are on the street freezing or under constant threat of violence by others also on the street all debate over ideology ends. No gov can prevent a population from 'going Cairo' if they ignore the fate of the people they supposedly represent.
I believe that you are confused about what triggers a 'going Cairo' event...
People with absolutely nothing left to lose and slowly starving to death on the streets will 'go Cairo' and disregard all the bs that pols are spouting...ideology moves to the way back seats.
Real hunger is one hell of a motivator.
Let it rip, the sooner the better.
You will be the first to be eaten.
In the world I see -The Bernak- is stalking elk through the damp canyon forests around the ruins of Rockefeller Center. He'll wear leather clothes that will last him the rest of his life. He'll climb the wrist-thick kudzu vines that wrap the Sears Tower. And when he looks down, he'll see tiny figures pounding corn, laying strips of venison on the empty car pool lane of some abandoned superhighway.
Fixed.
Then a bear pops up behind him and swats his head off with one mighty paw.
Betting on american collapse has always been
a losing bet before. But this time really is different, right?
I still say this is a rebalancing and most of us end up
poorer, but no deflationary collapse and no repudiation
of fiat. The Great Rebalancing, The Soft Depression,
The Great Muddle Through.
We will know in a couple of years, wont we?
In the meantime eat, drink, and be merry. My
bet is still on the Bernank.
The Soft Depression,
IF you know any, ask the 22 million (23% unemployed/able)SOFT depressed if they think its SOFT.
Ask how it feels to be in the same camp with Lil Indoogoo.
When(the 99er's) stop getting paychecks, the ME, and Asian issues will be like a kids birthday party.
One SMART move doing the Oh, so benevolent 99er deal.
Not out of compassion,but to buy more time to get into battle formation.
I dont see any skeletors or pot bellied children. Nobody is starving to death thru lack of available charity or social services.
Yeah....I say it's a pretty soft depression so far.
Do yourself a favor and download the budget. If you are halfway decent at math, you will realize your conclusion is impossible. No refudiation of fiat is not feasible. And not inflation adjusted. Nominal numbers.
Did you say "refudiation"?
Meh, some of us are trendy! :>D
“…we are being steered in this direction by the gentlemen above. Sure, they are smartly dressed, well educated (kind of) and pretend to know what they’re talking about with their carefully worded ‘policies’. It’s all NONSENSE. All they’re doing is leading us down a well-trodden path which has happened time and again throughout history.” -- Paul Mylchreest
And what are “they” doing precisely?
As for George Friedman’s claim on Stratfor global intelligence that “we don’t know what the Muslim Brotherhood is doing,” we certainly know some things, and that is what the Jewish Brotherhood of Bernanke (the Fed), Trichet (the EU), Strauss-Kahn (the IMF), Robert Zoellick (the World Bank) and Goldman Sachs (the NYFed) is doing – it is destroying world finance and Western Civilization as we have known it.
"buying some junior gold and silver exploration & development plays could translate into “Gresham’s Law Cubed”."
One can buy a basket of true junior miners in the new, small ETF, (GLDX).
I am still very concerned about the theory that we owe China a butt-tonne of silver. Where everyone is worried about Gold confiscation, what about Silver? Eventually, the bill will come due.
"The road will seem so straight and fair to travel, you will kick yourself for stumbling through the brambles for so long, and wonder at your neighbors who still can't see the path, though it is truly a freeway." (Aristotle, courtesy of FOFOA)
...."So here we are, waiting for the “event” which triggers a loss of confidence across the system
Aren't "we" already 100% confident that the system inspires Zero confidence?
The "event" = people start paying attention.
The price of oil will bring the world to its knees... there is no other guess work needed, when they (being the whole world) can NOT subsidize the price of oil somehow for the people.. the war for energy will begin, thru monetary means and then graduating to weapons.
http://www.youtube.com/watch?v=wYuLjGQQ-jg
+1. Oil is an absolute must have commodity to keep the world as we know it from decending into total chaos...and this can not be over emphisized.
Without the discovery of vast amounts of oil which enabled the green revolution which enabled the carrying capicity of the earth to the current levels... Malthus would have been pretty close to the mark with his 'survey of the worlds available natural resources'.
IOWs...without oil there would be a lot less humans on earth today.
To dispute this is assinine.
I love zh and the expose' culture here, for financial and economic bare-knuckles reporting and commentary but all the talk of the 'end of the world' hyperinflating is way too unrealistic.
I see so many comments these days that presume that hyper-inflation will lead to millions starving and getting violent, due to necessity.
Much of it is nonsense.
Human communities don't act that way when they know the chips are down, when they realize that their only best or only chance to survive and recover (fairly well) is to cooperate intimately as one people, of one mind and one attitude.
That > is < what happens when the chips are really down.
We saw this recently in Australia and New Zealand, and Egypt, etc. During the January Queensland flooding the entire community switched overnight, from self-interested commercial-oriented actions to more selfless and entirely non-commercial (generous) voluntary communal-preservation and recovery action and donation.
The very same thing emerged with Cat-5 Cyclone Yasi hitting North Queensland after Feb 2, 2011. The same pattern immediately emerged after New Zealand's earthquake this week.
And in Egypt, Tunisia and Libya (etc.), almost the whole people of those countries engaged in a 'revolt', but had the preceding awareness that the country's only and best chance was to hang together as a people and a country, and to cooperate selflessly generously and voluntarily (as long as is necessary) to ensure society keeps working as best as possible, even as the crisis plays-out towards its 'recovery' and restabilization.
That's what people really do - face it - it ain't so bad.
When people, unbidden, behave this way the outcome and prognosis can be very different (and a whole lot better) than you'd otherwise expect (via analysis of 'the trends').
Yes, real damage remains, as in a Cyclone or civil commotion, but this does not mean the community will act selfishly like they did before these events. They don't, and they won't, and that is for sure - don't discount this effect.
And don't imagine I am pre-disposed to optimistic views, I am not, just pointing out that people automatically begin behave much differently when the social and political and survival situation dramatically changes. It is a self-emergent and self-organizing unpredictable force, due to the communities shared awareness, and its needs.
Govts and planning have >NOTHING< to do with this behavior. This is what happens when the system fails or has no solutions, and people just give up on 'authorities'.
What we saw here is that people started doing it > FIRST < and then the media realized it was occurring and were amazed by it and began reporting it and showing video of it, what everyday people were doing, for complete strangers, to help them out, when they could not possibly help themselves and were being overwhelmed.
THEN, the Govt got a whiff of this, THEN began 'talking-the-talk' about it, to 'encourage' it (as if the Govt were somehow responsible for it) as if they had thunk it all up, and were its 'leader'. But there was no 'leader' or central instigators. The people saw Govt was out of its depth and were getting on with fixing it, without waiting for the centralist pompous "authority" figures (i.e. pain-in-the-arse media wankers) to talk rubbish and do relatively little.
That is what really happens when the SHTF.
In the US and Euro case food will not just disappear overnight. The balance of it will change, and variety will decrease, and rationing will be instituted as the shelves thin. What will really take place when people realize they are all in this same pickle is they'll all start to act non-selfishly to preserve their places in the community, as a whole, and people will necessarily cooperate to make sure no one goes hungry or gets too much, or gets not enough.
That's what will really happen. That's what happened in the 1930's, once the Govt was put in its place, by mass rioting to demand change. And then, predictably, along comes Roosevelt to politically assume the propaganda BS that it was really all his idea, all along, and that he was responsible for the national changes.
That's what Govts do, get in the way, then claim all the credit, because they get to write the fake 'history' of events.
Remember Gonzo's hyperinflation writings here, about 5 months ago? He pointed out that during Volker's rate-tightening, to kill inflation's surge, the US had already printed ration books/cards, to distribute, if inflation did not respond to the tightening.
The Govt will ration necessities (introduce austerity) - that is certain - and it may last for a decade or more, as it did for the Brits, and most of Europe, during, and then well after WWII. Almost up to the 1960s.
Once a process of rationing begins it is progressive, with different levels in the same way that water-restrictions 'rationing' are used during protracted droughts.
Like it or not, food stamps are the first phase of it. And like it or not, your much despised social-security system is how it will be metered-out, and you will learn to appreciate it.
You will > NOT < be a solitary isolated individual or family-man or woman, fighting against the cruel and desperate bleak universe or random events and violence.
More likely you will be anything but isolated, communally( as you are now). We'll be helping each other out in the ways we can, because there's no other acceptable alternative or outcome that almost anyone is willing to accept, or tolerate.
You can talk about Malthus and over-population on a finite planet all you want (and I sure don't deny the logic of it) but the truth is, you can live quite acceptably and on 25% of what you currently consume, and do that for years with few if any ill-effects.
What > WILL < occur however is that people (elites) who refuse to accept not acting selflessly (because they are totally disconnected from material realities) are going to get a terrific shock, if not a bullet or noose, and if they're really lucky, just prison time to being self-important pigs.
You can paint that any ideological color you want, call it neo-communism if you want, call it a re-emergence of a failed paradigm, if it make you feel 'right', but people faced with existential crisis are not going to accept class, privileges and selfish arseholes (doing their version of "God's work").
Deal with it.
Class and inequality will necessarily collapse, for a time, simply because no one will accept it, for the duration of the existential crisis, anyway.
That's what will really happen, so think about that, rather than the much more unrealistic starvation and civil war meme so many presume will develop.
This is not Easter Island. As a Geologist is can tell you the world has no shortage of soils, fertilizer, crop seeds, rain water, and lots of LNG, uranium and coal in almost unimaginable abundance, and will have that for a > VERY < long time to come.
We are not even close to the end of a solid capacity to feed our selves, at least domestically, in almost all of the 'developed world'.
That is the resource reality, get over it, and relax.
All that will occur over the next 10 years is we will stop wasting so much of it, needlessly - like the completely distracted and pampered idiots we have been socially engineered to become. We are, and have been, deliberately instructed by TPTB and its cherished corporations and TBTFs, to behave stupidly, like that, and all that will happen now is we will all realize that it's been a total failure, and will reject it, and them, and their concept of growth and prosperity (in the same way we will reject their media BS).
That is hardly the end of society, it is in fact a renovation of it, and I don't think it will necessarily lead to more than 1 to 2 % of human mortality, even from a full global political and financial reset, because we simply won't allow it to happen.
And anyone who tries to let it happen will get shot through the lungs, by the rest of us.
And I sure don't think we will elect to nuke each other. We are not as stupid as our criminally corrupt 'leaders' would have us all believe.
We will decide to do all that we can to help each other knowing that we are all reliant on every other part of the earth remaining or become fully functional and healthy, for everyone to recover to an acceptable.
That is what will really happen.
The more aware we become the more likely we are to cooperate in that way when we realize we all must.
So relax a bit, we > ARE < going to sort this out, because we must.
Prepare yes, their are real dangers and hazards. There is a real erosion of Law and Order and due-process and destruction of all Justice, and the probable revolution and political overthrow (to some extent) everywhere. This is almost surely coming, or is already underway, in various places, and it will spread everywhere, at its own rate as circumstances change.
But I seriously doubt the bleaker visions, that many here at zh fear and voice. Think about it.
The people of Greece are not about to turn against each other and destroy the country, in the event they succeed in breaking the stalemate and get rid of the foul corrupt G-Pap regime. Nor elsewhere.
Have a bit of faith in human beings, we aren't that dumb when the chips are down, we were just trained by TPTB to behave stupidly, from the cradle.
The USA will be full of (justified, in my view) extreme anger, and some people will indeed pay the ultimate cost for what they have done to your country, but the USA will hold together, as will north America, in general, because the alternative is not acceptable to the people and will not be permitted to occur.
All we have to watch out for, are the people who want to create war, in order to take power, and full control after it.
They are the real danger to us all, but they are the people "...in 'authority'..." - RIGHT NOW.
The people who are in the present corrupt political-mix are our greatest danger, and who will try to use food and the necessities of life, and meter-out beads and trinkets to maintain classed, to maintain their control.
And > THAT < process is what will finally generate this pending US popular rebellion.
The total rejection of their system and their control. It really is EXACTLY the same as Egypt and Libya, operationally, when you get down to it. And like in those countries it will be rejected and overthrown - as people loose all fear of its control and victimization.
Relax, us human beings are in this together, and we all actually know on a deeper level that the best way to survive is to eliminate selfishness and division of fake 'classes' and undeserved privileges, to act as one.
At least until the worst of the crisis is past, and no longer occupies every waking thought, for our survival and recovery. What will happen then is a return to the selfishness and the mundane decadence, after a generation.
After combat soldiers talk about their total trust and reliance for mutual survival on their mates/buddies. And in the pending crisis that's how the entire society will behave. We won't all fall into a weepy traumatized heap. And far from being 'disorderly', public action will be the very definition of the order that's required to repair the mess, and it will not require 'authority' (arsehole show-ponies) to make it all happen. In fact, those will not be tolerated.
When the time comes people will flip like a switch.
Human beings and modern society is not about to go belly up. There is ZERO chance of that, in my view. The financial and economic REAL news may be excruciatingly bad but we are in no serious danger here.
Planning to abandoning cities, and even countries, is not the answer, and not what will actually happen. I don't know why people assume they will survive better in the remote areas. Look at any map of the distribution of vital human services, and you will find that they ALWAYS correspond to the highest population density.
I assure you, that will > NOT < change, even with peak oil, etc., etc. Resorting to 'survivalism' is a mistake, not a bad one, it is just a fundamentally false premise to assume remote areas will be more survivable, or preferable.
The police will not entirely disappear from the streets, they may for a time, to be replaced by the military, but they will return in force to all areas. To think they are going away permanently, and you will be left to regulate crime, yourself, is not realistic. If you act badly or unilaterally in the interim, they will be coming back and you better have a good justification.
The water taps will keep flowing, the toilets will keep flushing, the power will still be on, the supermarkets will still be providing (rationed) food, and the buses and subways will still be running, and the police will still be petty thugs and jerks 99.9% of the time. Their make be a significant disruption to services, but it will be quite temporary.
Relax, this is going to suck, yes, but it will go much better than you expect.
Real Law and Order and Justice does not come from 'Law-makers' and Police and Judges and prisons.
It all comes from us, our needs, and our requirements, and our demand. It always has, and it always will.
Our decrepit 'institutions' and their high-minded documents are the corrupt aberrant complete bullshit, that came along for a ride, and seeks to convince us that the institutions and the politicians came up with the whole thing, and solved it all, for us - rather than us doing it, in the first place.
Have no fear of the reset, it's >OUR< reset, its the REAL "change we need".
Don't let anyone make you afraid of it - not even you.
Nor to throw you off the scent of a true sense of genuine human 'values'.
With real values you never fear, and you never need to be told how to behave properly.
The >ONLY< people who seek to define what your values are or should/must be, or how to behave or think, are the very people who seek to Lord-it over you, and the world, to create the next wave of global degradation (labeled 'GDP Growth') through the encouragement of debt that does not intrinsically pay for itself via NET REAL PROFIT.
Encouraging non-returning NET debt growth and calling it an "economic-boom", is inexcusable and in my view, worthy of a fucking good skin-rending public-flogging (mandatory for the first offence).
If you scale it up from there, humanity will never again face this 40% financialization of the 'economy', and the massive malinvestment 'problem', of the resulting suicidal 'debt-supercycle', and global societal destruction and financial and political power-grabbing.
ENCOURAGE AND ABET UNREPAYABLE DEBTS WITH USERY = AND WE WHIP THE FUCKING SKIN OFF YOUR BACK
And I bet there would be no second and third offenders.
The Australian Aboriginals had a similarly honest and very direct system. Eating the wrong fish, out of the allowed seasons, risked the starvation and suffering of the rest of the family group. If you were discovered doing this, you got a spear thrown at your body, from close range by one of the elder hunters.
If you survived this you definitely wouldn't do it again.
If you didn't live - tough.
That mandatory rule and direct and formal and immediate punishment worked beautifully to keep them alive, in a very harsh and unforgiving environment, for >60,000 years.
Greed for the sake of greed was literally a deadly sin.
It still should be - IT NEEDS TO STILL BE A LITERALLY DEADLY SIN.
That is what is needed when it comes to knowingly making 'malinvestments' (non-returning debt making) that are not investments at all, and not 'booms', that bring forward destructive consumption, which is really just PURE PIGGY GREED that risks the starvation and suffering of the rest of our human-family group, for its ownsake of greediness.
But is being 'excused' with the thoroughly graceless and false term of;
"GDP Growth"
As though that politico-economic utter balderdash excused this grievous crime committed against our oasis for life, and its equitable provisioning.
So, ... Mr. Pigman ... spear? ... or a whip? ... pick one ... insatiable greed-apparatus, meet THE CURE.
That's all we have to do, to stop this debt-supercycle cancer, coming out of remission (later this century). The Aboriginals did this, because they were "connected to the Land", they felt they belonged to the land, rather than the land to them, they knew exactly what would happen if they didn't spear the offender to punish and deter them.
They would all suffer, and may die.
And Bill Black is still ignored, and your 'elder' Lawyer President refuses to eliminate the criminal greed-cartel because he's in league with them, they bought his presidency, for him, and he needs them to do it again.
He does not give a toss about what the implications and outcome is, he's probably not even smart enough to realize what a national and global vandal and destroyer this makes him into.
The reason we haven't done any of the 'clean-up', yet, is because we all made the equally grievous crime of disconnecting with the land, and with the physical facts of our needs, via distractions, and the reveling in the excess consumption, we were deliberately brainwashed to indulge in, by the incessant bombardment of the mental-sickness inducing commercialism of our age of extreme greed and malinvestment as 'GDP-Growth'.
i.e. much of the 'developed world' is currently worthy of a spear thrown by an Gold-medallist in Javelin throwing. We are trying to, "pull the splinter out of our Brothers eye, but have a beam [timber beam] in our own eye."
To be worthy of wielding the whip, or spear, you have to be one of the 'meek', that will, "inherit the Earth".
If you are already that, then by all means, whip the fucking skin off the backs of the "money-changers". But if you are really just another pig and self-justifier, then you will be also be whipped, when the time comes.
I long for the pending time when humanity will (meekly) have a moment of clarity, and self-emergently act as one, to eliminate the greed infrastructure and all of its pigmen, that unacceptably threaten us all.
If you could distill these thoughts onto a bumper sticker, hearts and minds may well follow. "End the Fed" would go very far. That seems like a dream now, but Bermonkey is doing an excellent job making it a reality. Things will be much better after the revolution.
Didn't work out so well for New Orleans after Hurricane Katrina. :>(
I admire your faith in Humanity, but as I look around, I see Humanity failing every Intelligence Test currently being administered upon them.
Finally, two words: Roman Empire.
Humans can be very noble in a crisis. Once you insert the gubmint, not so much.
If and when government is GONE, then a great many humans will indeed act with civility and compassion.
Until then, sorry, ALL BETS ARE OFF.
Of this I am certain.
Yeah, people under duress always help each other...
History is repleat with instances of cannibalism.
Tribes the world over fought continuous wars for access to natural resources...and, still do, but with much more effective weapons now.
People under duress will help each other until they figure out that the situation is not going to be improved by their government. At that point they will raise hell with each other and their government.
Real communities do help each other. Fragmented hate groups that currently make up the US will react differently.
You reap what you sow.
Watts. New Orleans. Chicago.
Where there are real communities of common interest there will be instances of cooperative behavior. Where population is densest and the welfare state most pervasive, things are more apt to be very ugly.
Yah, But.................................
Here's my itch.
IF things go to hell in a hand-basket.
Countries will nationalize real fast.
It has always happened historically that way.
That means that you can fugetta bout your stock in those juniors in Columbia or wherever.
If the dollar is trash, who's gonna honor your stock ownership in Ecuador?
Oh, and BTW, do you even have any pieces of paper that say you own anything,
you know - like stock certificates?
Or is it just some red and black numbers on yur monitor?
I thought so.
Just asking here.
A-fuckin-men.
Once again, another week rolls by, and the market is hanging by a thread. Thousands of hedge fund traders are anxious to "make a killing" by being fully invested on the short side and catch the next big bear market selloff so they can call it quits in a couple of months and spend the summer luxuriating out in the Hamptons after "making their year". Bernanke has his back up against the wall. He either needs to let the market fall so he can get a rally in the Treasuries going, or he needs to turn the Infinite Fiat Firehose and send the U.S. Economy into full blown Zimbabwe mode.
Believe it or not, after all the turmoil, the NYA is still in an uptrend.
Time to go through the checklist:
XLF: Broken, under the 21-day
XRT: Not broken yet
Transports: Broken, under the 21-day
EEM: Still sucking wind
However, amazingly, the advance/decline line is still going up:
And some of the 1999 Superhookers are still skying to new highs:
Anybody remember Kate Moss from 1999? Yep, these skinny, skanky ones are still in high demand, even 12 years later...Still being chased, even today.
Not much change in the Investor's Business Daily Top 50, LULU is still at the top of the list. Amazingly, only two oil stocks and one silver stock in the list. Still mostly tech stocks with outlandish PE ratios.
Most of these stocks are still acting OK. The CANSLIM crowd tends to be overly cautious, most of the mo-mo traders are now out of the market after the IBD "Big Picture" authors uttered a series of "distribution" calls and commenting on "uptrend is under pressure".
All 50 charts posted here:
http://clearstation.etrade.com/cgi-bin/bbs?post_id=9656630
Who would have figured that just a scant 2 years after the greatest credit bust in 50 years, the No. 1 leading stock would be a company that is selling $175 yoga outfits in droves?
And yet again the Top 50 list is still populated by the newest, freshest, hottest "new names" like Aruba Networks. Anyone see the latest from Adriana
Lima?
And the biggest red flag for stock bears is the CRB Index and the poor, beleaguered U.S. Fiatsco which appears to be ready to collapse in a heap.
Currencies here:
http://clearstation.etrade.com/cgi-bin/bbs?post_id=9495742
And when is this thing going to reverse?
Who knows??
"Hey, everything is still going up! It must be all good"