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Guest Post: The Rats Are Cornered

Tyler Durden's picture


From Mike Krieger, former macro analyst of Bernstein Research, and currently of KAM LP

The Rats Are Cornered

Be the change you want to see in the world.

- Mahatma Gandhi

Back from the Road

I have just come back from a 40 day road trip across the United States of America.  It was without a doubt the single best experience of my life on every level imaginable.  I recognize how hard such a trip is for most people given individual circumstances but at some point in life if possible I would highly recommend doing something similar.  It was a total game changer for me. 

I started Memorial Day weekend and went from NYC to Philadelphia, Pennsylvania then on to  Alexandria, Virginia;  Bedford, Virginia;  Asheville, North Carolina;  Nashville, Tennessee;  Memphis, Tennessee;  Clarksdale, Mississippi; Shreveport, Louisiana (not recommended unless you live on the East Texas border and have a gambling problem); Dallas, Texas;  Sweetwater, Texas; Alamogordo, New Mexico (White Sands);  Santa Fe, New Mexico;  The Grand Canyon;  Sedona, Arizona;  Las Vegas, Nevada;  Mt. Zion National Park, Utah (where my brother got married); Bryce Canyon National Park, Utah;  Salt Lake City, Utah;  Jackson, Wyoming (Grand Teton National Park); Yellowstone National Park, Wyoming;  Bozeman, Montana;  Mt. Rushmore/The Badlands, South Dakota;  Omaha, Nebraska (home of the sellout and recent propaganda mouthpiece Warren Buffett);  Indianapolis, Indiana;  Harrisburg, Pennsylvania;  Montauk, New York.             

For a kid that grew up in Manhattan this was almost too much to handle, but in a profoundly positive way.  The communion with nature, the amazing conversations with random people in far off places about the things I write about in these emails and the new friends I made.  To the new people on this list that I met along the way, thanks for being a very important part of this trip which will forever hold a powerful grip on me.  Now onto the other stuff…

The Rats are Cornered

This email will be pretty brief as I am still getting used to getting back to the fake world.  Although I did work a little every day and kept up with the major news both financial and otherwise I am certainly behind on the details.  This is how I would summarize what has gone on and where we are headed.  The stimulus and gimmicks initiated by a desperate political class prodded on by our Keynesian witch-doctors Summers and Geithner ran their course and at the end of that road was a massive pile of debt, chronic unemployment, a populace that doesn’t believe or trust anything the government says or does and a housing market set to resume its downward spiral.  So basically the forces of deflation have taken over once again. Banana Ben Bernanke knows it and he knows what he wants to do about it.  He wants to print so much money it would make your head spin.  He wants to drop nuclear bombs of QE2 all over this great land.  That is his answer to everything.  The man is 100% insane according to Einstein’s definition.  I quote: “The definition of insanity is doing the same thing over and over again and expecting different results."

There is a major problem however.  Bernanke knows how unpopular he and his fascist institution are right now after all of the crimes they have committed in plain view since 2008.  As such, he knows he needs cover for QE2 and that means some sort of deflationary shock that scares the masses and makes many clamor for help like sad, scared little children (we are being conditioned like animals).  This is why I think the Fed and others have been fine with the recent market plunge.  The only issue for them is they absolutely need gold, silver and other commodities to collapse as well.  Bernanke cannot have the S&P500 at 850 and gold at 1,200 and announce QE2.  Gold would surge to new highs and it would look horrible.  This is why so much emphasis is being placed on getting gold and silver to retreat in a major way via propaganda pieces and also likely surreptitious selling behind the scenes.  While there has been a decent pullback, it is nothing close to what they need and I am particularly impressed with how well silver is hanging in.  I think this is due to a run on physical silver by investors and the dearth of government or central bank stockpiles to sell in the shadows. 

This is what I mean by the rats being cornered.  So far they have failed in decimating the precious metals markets and if they can’t do that in a deflationary scare then they are in huge trouble.  Of course they will never stop trying because they are addicted to power and control and will do almost anything to protect their positions.  I think a key thing to think about now that we must accept that they are in a corner is what is the next move on the chess board.  I read this from Jesse’s Café yesterday (

What is disconcerting to me, and you can see it to some extent in Rickards own work, is that the Wall Street financiers clearly have their eyes on the Pentagon budget: opaque, patriotically defensible, and huge. A currency war, with the Wall Street crowd providing tactics and weaponry and mercenaries to both the US and to its adversaries, might make the bonuses taken from the mortgage bubble look like pocket change by comparison. It’s an old idea really, the basis of some legendary fortunes, adapted to the modern world. It produces nothing but misery, while transferring wealth from the many to the few.

Ok, so this fits into a lot of what I have been warning about for some time now.  Namely that once they lose control they will go to the next plan which is pure desperation.  They will single out the two greatest threats to their power and I think those two things are: 1) Gold and Silver (independent money) 2) The Internet (free speech).  If they can’t control the population with inane television and propaganda they will demonize these major threats.  This will probably be sold to public in the name of national security since who could argue with that (if you do argue you will be labeled unpatriotic or a terrorist).  So expect more and more announcements of Russian and Chinese cyber attacks or the like, which will be used as an attempt to censor the web and there will also be more and more news stories related to gold and silver being used by terrorists or those that wish to harm “America” (which is not the Republic but a small group of corporate, financial and political elites from both owned parties that have control via the monetary system).  This group will then use “national security concerns” as a further justification to grab even more power and wield it in the name of protecting us from whatever threat they wish to use, real or fabricated.

What can we Do?

For those that care about real freedom, genuine progressive reforms and this Republic in general there are all sorts of things you can do and they are being done all over the place.  I actually think this group will fail miserably and ultimately be brought to justice.  I simply think too many smart people have woken up to the scam and the entire system will implode on itself.  So as I have written before the key is NOT to be consumed by fear but rather to take action.  Get your finances in order with gold and silver and other real assets but also get mentally and emotionally prepared.  This is because if you are not in a position to help your neighbors then you are no good to anyone.  This will not be about hunkering down in a bunker and emerging rich once the dust settles.  It is about staying intact financially and emotionally so that you can help rebuild a better nation when the current world paradigm comes to an end which should happen swiftly within the next 1-2 years.  Most importantly do not look for leaders to save anything or anyone.  It not about looking outside it’s about looking inside as Gandhi said.  If we become the change we want to see in the world the world will change.  Messianic leaders are a myth and meant to control you and stop you from personal action and independent thought.  Thinking a new leader will change the world just gives you an excuse to be lazy.  

Let’s do this,


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Thu, 07/08/2010 - 12:17 | 458452 berated
berated's picture

I gotta problem. After reading this, half my brain says, "Holy shit--this guy's really out there on the lunatic fringe!" Unfortunately, the other half of my brain says, "Holy shit--he's right; it makes perfect sense!"

What to do, what to do....

Thu, 07/08/2010 - 12:43 | 458514 Gully Foyle
Gully Foyle's picture


If today were not a crooked highway, if tommorrow wasn't such a long time....

Thu, 07/08/2010 - 13:06 | 458563 B9K9
B9K9's picture

What to do, you ask? Here's Buckminster Fuller's recommendation:

"You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete."

My advice is to just (actually or figuratively) walk-away. If you can't do it physically, then do it mentally. Start channeling Maslow: food/water, shelter & security. How will you acquire/achieve these needs absent a governing central authority?

Think high school - you're either with the program, or you're not. Figure out how to be part of the "in-crowd". It's funny how that old adage of "lead, follow or get out the way" is so apropos. If you're not leading, or you're not helping as a cooperative follower, you're gonna get "disappeared". That's how societies have operated for millennia - no one makes a stink, no one says anything. Just one day, the trouble maker(s) is no longer around.

As to the author's belief that the central authorities will initiate progessively more dracionian laws & regulations, forget about it; (the soon to be defunct) Obamacare was the high-water mark.

These slimy snakes are just like the former Soviet leadership. They are cowards - they will slink away in the middle of the night as the entire system goes "poof". One day it was there, the next day, well, it wasn't.

Thu, 07/08/2010 - 13:23 | 458609 kaiserhoff
kaiserhoff's picture

These slimy snakes are cowards.


+1000  That was exactly my experience in DC.  Yell boo and they will piss their pants.  Couldn't agree more with the substance or stance.  I would only add that this is no time to buy real estate, unless it is farm/ranch land in an area you know really well.

Thu, 07/08/2010 - 13:42 | 458652 economessed
economessed's picture

Not only are "they" cowards, "they're" not as smart as everyone seems to give "them" credit for.  Now I don't really know who we're talking about when we use "they" but I'll just substitute elected members of government (local, state, federal).  Some of the unelected bureaucrats are smart, but they lack power, so they are welcome to join "us."

Thu, 07/08/2010 - 14:38 | 458765 DosZap
DosZap's picture


" I would only add that this is no time to buy real estate, unless it is farm/ranch land in an area you know really well."

Ageed, BUT, until we see if ALL THESE AGENDA's are basically neutered, I suggest buying NO Property.

The more liquid, less encumbered, the best chance you will have to maintain.

Property owners, IF the new idiology is allowed to go full speed ahead, unencumbered,will likely LOSE that way or the other.

We are being driven by these new progs into a Caste system.........Uber Wealthy(Control), and working class poor.

Thu, 07/08/2010 - 14:56 | 458816 Gully Foyle
Gully Foyle's picture


"Property owners, IF the new idiology is allowed to go full speed ahead, unencumbered,will likely LOSE that way or the other."

No, that's crazy talk.

By now everyone knows an Army travels on it's stomach.

Besides you need land owners to be taxed. Hobo's will wind up in camps, work crews or dodging bullets from or brothers of another color.


Thu, 07/08/2010 - 15:22 | 458868 kaiserhoff
kaiserhoff's picture

I see your point.  We really are in uncharted waters, and real estate taxes alone leave you vulnerable to the kleptocrats.  Still, if you have the bucks, owning some land in the less oppressive states works well with a general theme of self-reliance. 

I think barter, and the general ability to brew beer, grow tobacco, or do something of unquestioned value to your neighbors will help weaher whatever storms are coming, but liquidity and mobility are also important until we see how the big picture breaks.  We are living in interesting times.  Guns and ammo are basic needs.

I look at farm land this way.

1 Can you handle the cash flow in the short run?

2 What will fiat currency be worth in the long run? 

Have your tried venison chili? 


Thu, 07/08/2010 - 15:27 | 458891 Gully Foyle
Gully Foyle's picture


"real estate taxes alone leave you vulnerable to the kleptocrats."

I think Detroit taught government a deep lesson. If you want acres of empty space no one will buy you screw yourself.

I just read that WA state was polled and the majority want income tax on those making 250k instead of raising property taxes.

BIGOV is starting to catch on.

Empty houses and vacant land is virtually useless when they need to pay salaries.


I would say if you wish to choose a skill learn to use a forge. Few people know how to use one, like welding. At some point if there is a massive collapse people will need metal work done. One knife is worth more than hundreds of bullets.


I would avoid Venison, that whole disease thing scares the shit out of me. I do consider Tilapia and Aquaponics, or stocking a pond.

Funny the first thing people think of is hunting and never fishing.

Thu, 07/08/2010 - 15:40 | 458938 Cistercian
Cistercian's picture

I love the comment about the forge.My grandfather was a tool making blacksmith in a steel mill.I have his solid nickle toolmaking anvil.Yes, I can make parts and tools.And I am hoarding metal.I have few worries about being useful in a post apocalyptic setting...but I would much prefer we not let it go that far.As the days pass it seems less and less avoidable.

  And I can weld and braze too.And fix anything around the house/farm/industrial environment.

  I really don't want to fall back on it.But I can.

Fri, 07/09/2010 - 03:37 | 460067 jdrose1985
jdrose1985's picture


I built an ornamental sign, gate and lighting company with less than $3000, own a plasma cutter and welder, both 120v systems, almost zero overhead. Been stockpiling consumables like a mother, extra everything, going to start putting together 55 gallon drums of gasoline for the generator, already have years supply of wheat, etc. Rolling blackouts could be a problem..Just today started researching ancient metal working techniques, think my next project is a forge and some propane tanks. A lot of propane tanks.

Oh and the fishing comment above you was spot on...i wondered that when reading Grapes of Wrath...why were people starving instead of fishing? Kayaks with fishfinders mounted, plenty of batteries, tons of lures, rods, etc.

People think I'm nuts so I don't really mention anything. Tell you something I've noticed though...people are really starting to ask questions instead of just blowing me off like they did back in '08; people are starting to wake up.

Thu, 07/08/2010 - 17:33 | 459304 New_Meat
New_Meat's picture

Gully--learn a skill, use a forge.  Yes, directly usable tools like chisels, knives, nails.  I'm near a New England foundry (now defunct) that mined bog-iron and forged nails, hinges, implements.  But us old farts (perhaps you excluded) can't hack it over 2000+ DegF iron day after day.  Besided, I can't run faster than a lamed blacksmith (yes, the skill was that prized) anyway.

But yes, learn a skill, any skill: weaving, sewing, patternmaking, woodworking, shooting various aimed devices.

There is more.  We'd need to pass on a lot of history and practice.  The old FoxFire series.  The Carolina guys who can make a chair with a drawknife (I'm in awe).  Dynamite Payson makes a Dory.

Keep the faith, we need to pass it on.

- Ned

Fri, 07/09/2010 - 10:37 | 460424 ExistentialSkeptic
ExistentialSkeptic's picture

I can sew, patternmake, drape on the form, do alterations -- I even have a degree -- and got out of school just in time for all that stuff to be transferred overseas.  We can't even get decent fabric here -- the "bored housewife" stuff they sell in the "sewing" stores is total crap.  If I drive for an hour I can get to a place run by a lady who is, essentially, stockpiling fabric -- she buys what's leftover in factories when they close down for pennies on the dollar.

My skills, such as they are, are pretty much worthless without a source of decent fabric & thread.  That's why I'm focusing on four-season gardening and my husband and son are learning to fish.

Thu, 07/08/2010 - 17:36 | 459314 Dantzler
Dantzler's picture

This breaks my heart about my fellow WA residents not recognizing the Trojan Horse of a new tax on the "rich".

I also hope I never have to fall back on my less technologically intensive skills, but I agree that being able to use a forge as well as weld, braze, and otherwise fix or fabricate stuff could come in handy in a pinch.

Thu, 07/08/2010 - 17:34 | 459308 Lucky Guesst
Lucky Guesst's picture

Have your tried venison chili? 


I was thinking about all those wild hogs everybody is complaining about, aren't they edible?

Also, maybe buying both my kids a meat rabbit in opposite sexes and keeping them apart. They could always be breed later..... just couldn't eat the originals (unless we get really hungry)

Thu, 07/08/2010 - 14:39 | 458768 DosZap
DosZap's picture


Thu, 07/08/2010 - 15:52 | 458974 hbjork1
hbjork1's picture

During this time or any time, it is a good idea to get input from local sources before purchasing land to be used in growing crops.  Even within a given general local, land is not all created equal.  If I really don't know the territory, I would check with the nearest state university with an agricultural faculty.  They should at least make a consultant recomendation. 

And sometimes, the neighbors will express opinions frankly. 

Thu, 07/08/2010 - 13:26 | 458622 Gully Foyle
Gully Foyle's picture


"My advice is to just (actually or figuratively) walk-away. If you can't do it physically, then do it mentally."

Ladies and gentlemen, and posers ( you know who the fuck you are) we have a WINNER!

You can't win playing a rigged game. You can win by not playing.



Thu, 07/08/2010 - 14:01 | 458681 Trailer Trash
Trailer Trash's picture

Gully, you are so right.  You have to know when to hold 'em and when to fold 'em.  And, it's time to fold 'em and walk away.  Just walk away from the table. 

Thu, 07/08/2010 - 14:58 | 458822 Gully Foyle
Gully Foyle's picture

Trailer Trash

Every mystic and religion in the entire fucking world, except maybe Scientology, says the same thing. You can not find peace being Marleys Ghost.


Thu, 07/08/2010 - 21:15 | 459708 suckapump
suckapump's picture

Damn! You beat me to it!

How about this one instead?

Fri, 07/09/2010 - 04:15 | 460076 MADinMelbourne
MADinMelbourne's picture

the winner stands proudly with sash and medal chest all puffed up.  Shame there's empty sound in the empty stadium.

Thu, 07/08/2010 - 13:46 | 458658 island
island's picture

Bucky - one of my favorite people of all time. 

Great quote. Thanks.

Thu, 07/08/2010 - 14:59 | 458827 Gully Foyle
Gully Foyle's picture


I interviewed him as a college journalist in the late seventies. I was tripping balls to.

Good times, good times.

Thu, 07/08/2010 - 14:03 | 458688 aaronvelasquez
aaronvelasquez's picture

"As to the author's belief that the central authorities will initiate progessively more dracionian laws & regulations, forget about it; (the soon to be defunct) Obamacare was the high-water mark."


Maybe not yet the high-water mark:

$600 coin purchase or sale will require tax form in U.S. in 2012

Thu, 07/08/2010 - 14:51 | 458794 Oracle of Kypseli
Oracle of Kypseli's picture

Not a problem unless you have to pay sales tax when you buy.

Not a problem, if you sell.

Not a problem if the gold is in a friendlier country.

Thu, 07/08/2010 - 15:37 | 458931 unemployed
unemployed's picture


 Is that not the stimulus paperwork explosion law for all transactions everyone has to file a 1099?

 This will establish a cost basis and taxable event record for converting all PM profits into ordinary income taxed+Medicare tax.   In fiat explosion or inflation will make all assets partly owned by the government the next time you transfer them.



Thu, 07/08/2010 - 14:33 | 458752 DosZap
DosZap's picture


"they will slink away in the middle of the night as the entire system goes "poof". One day it was there, the next day, well, it wasn't.


Then, they will have suceeded............if you mean , the SYSTEM prior to these rabid leftist's.

Thu, 07/08/2010 - 15:13 | 458863 dussasr
dussasr's picture

"As to the author's belief that the central authorities will initiate progessively more dracionian laws & regulations, forget about it; (the soon to be defunct) Obamacare was the high-water mark."

If you think that the most draconian action that can be taken by central authorities is Obamacare you don't have much of an imagination.  Just look at how Chavez keeps making things in Venzuela worse and worse every day in the name of helping the common man.  Why couldn't this happen in the US?  A Populist message is very appealing to the uninformed masses in the midst of lean times. 

Thu, 07/08/2010 - 15:40 | 458941 B9K9
B9K9's picture

Have you ever spent any time in Mexico, central or south America (besides Argentina/Chile)? Those countries are 3-5% European and 95% Mestizo/African.

Chavez is (temporarily) getting away with what he's doing because he's simply utilizing the same control techniques initiated by the original conquistadors & colonialists on a conditioned & long defeated people.

Haven't you ever been to an air show, NASCAR race or sporting event? Didn't you look around @ your fellow citizens this 4th? Yeah, the drunken, fat slobs with 90-95 IQs chanting "USA!" might be overweight & out of shape, but they're typically descended from a long line of Scots-Irish who prefer to fight when it comes down to it.

This is our heritage; it may have been diluted, but you can't (yet) change the core DNA structure.


Thu, 07/08/2010 - 13:09 | 458573 Noah Vail
Noah Vail's picture

"Let's do this," Let's do what? Buy gold and silver, that's it? Already done that, so what's next Mike? Nice words, short on vision. Do WHAT?

Thu, 07/08/2010 - 13:24 | 458616 WaterWings
WaterWings's picture

Obviously you are one of those that will starve to death. If you make it that far.

Thu, 07/08/2010 - 14:27 | 458735 WaterWings
WaterWings's picture

If you have to ask you are dead.

Thu, 07/08/2010 - 14:31 | 458746 Ripped Chunk
Ripped Chunk's picture

Buy many guns and the equipment and supplies to make you own loads.

Or be killed

Any more questions?

Thu, 07/08/2010 - 15:15 | 458864 Gully Foyle
Gully Foyle's picture

Ripped Chunk

Hey, that's how cannon fodder thinks.

I prefer thinking like a thief, or Daffy Duck.

Choose life bitch, choose life.

Thu, 07/08/2010 - 15:48 | 458964 cougar_w
cougar_w's picture

The survivors will be fast and will know exactly where the exits are.

At the end of the world you must move out of the way of history, or else be crushed by it.

Thu, 07/08/2010 - 16:00 | 458991 Ripped Chunk
Ripped Chunk's picture

+ 1000


Be one of the extras in the background. The one hiding in dense shrubs or a camouflaged cave

Thu, 07/08/2010 - 17:39 | 459332 Lucky Guesst
Lucky Guesst's picture

Live near a state park? Dig down and build yourself an underground bunker. Hmmm, is there a such thing as clothing to hide from heat-seaking vision/camaras?

Thu, 07/08/2010 - 18:11 | 459406 Ripped Chunk
Ripped Chunk's picture

Cover yourself in mud like Arnold did in "Predator"  In fact he will probably do that again to ride out the remainder of his term in CA............

Thu, 07/08/2010 - 16:01 | 458995 Ripped Chunk
Ripped Chunk's picture

Walk around in the open acting like Daffy and you will get plugged by Elmer.

Thu, 07/08/2010 - 17:24 | 459280 Temporalist
Temporalist's picture

Elmer never bagged a damned thing.  I'd take my chances if that were only the real situation.  Sometimes the crazies are overlooked first. 



Thu, 07/08/2010 - 14:33 | 458751 SMG
SMG's picture

1.  Help as many people in the world learn about the eyeball triangle cult that has infiltrated the world's power structure.  Clues are all around you, the symbols on the dollar bill, the painting of the Apotheosis of George Washington in the capital, the federal reserve.    Be patient when explaining some people take more time.   Just to get the truth into the public conscienceness would be huge progress.


2.  Help people in the eyeball triangle cult who feel bad about what they are doing and want to change, get out of it.   Faith Hope and Love, is a much better philosphy that the ruthless abuse society they currently belong to.


These are two places to start...

Thu, 07/08/2010 - 15:03 | 458839 scratch_and_sniff
scratch_and_sniff's picture

Down with the (ahem) eyeball triangle cult!! Down with the buggers!

Thu, 07/08/2010 - 15:28 | 458901 Gully Foyle
Gully Foyle's picture


So you are "down" with buggery?

Thu, 07/08/2010 - 13:25 | 458617 scratch_and_sniff
scratch_and_sniff's picture

"Lets do this"

Right Mr, you show me your cock and i will show you mine. How much did you smoke on that road trip again? Seriously, what do people read this shit for? Personally, when i started visiting this site, i thought it would be good to have a healthy and casual bearish slant to my trading ideas. Note the words "healthy and casual" because you wont find the meaning of them anywhere on ZH. Its one pile of shite after another... Its not that the elite are pulling the wool over your eyes, the real BS is happening here right infront of your eyes my stressed-out little trader friends.

Seriously, how are you meant to have a neutral mind to go into the market after reading this crap? People always tell others to look into their history on this site, has anybody ever looked into the long history of the feckless bullshiting quack and his extended and constant participation in American society? America is full of bullshitters, it always has been. And you can all kick and scream about how we are all going to hell in a handbasket, and how you can prove it and see it clearly now, more so than ever...join the fucking que, its quite a long one.

When i was 17 i took mescaline one night and had a very bad experience too. I sat in my room and watched the door handle expecting it to open any second, and for a squad of hairy men to come in and kick me and beat me to death with baseball bats and hammers. I sat there for like 8 hours hearing people running up my stairs with the intent to murder me, sat there for 8 hrs waiting on that handle going down, any second now...any second now...


Thu, 07/08/2010 - 13:36 | 458643 WaterWings
WaterWings's picture

Seriously, how are you meant to have a neutral mind to go into the market after reading this crap?

Neutral! Hahahackhackhaha! Is that how you invest? Is that your strategy? Have you made any money in the markets? At all?

Thu, 07/08/2010 - 13:57 | 458679 scratch_and_sniff
scratch_and_sniff's picture

Are the algos bearish? Is that their strategy?

Thu, 07/08/2010 - 14:26 | 458728 WaterWings
WaterWings's picture

Why are you in the market at all with the algos? Swimming with piranhas is more prudent.

Thu, 07/08/2010 - 13:44 | 458655 SilverIsKing
SilverIsKing's picture

Mescaline, BITCHES!

Thu, 07/08/2010 - 19:02 | 459530 wake the roach
wake the roach's picture

haha, got an 8ft san pedro in my backyard... cactus juice bitchez ;-)

Thu, 07/08/2010 - 13:54 | 458676 Flyingtrader
Flyingtrader's picture

Amen! Critical thinking skills must be applied rigorously in both directions.  The "permabear" mentality is as flawed as it's "permabull" counterpart.  While I am in no mood to be a buyer these days, I is absurd to think that things will only ever get worse and not see some modicum of improvement over time.  Of course there isn't much in the current political and regualtory environment that leads me to hope that the recovery is right there on the horizon, it can only be a matter of time before the garbage gets taken out and markets find a way to work; because that's what they do, over and over again.

Thu, 07/08/2010 - 14:49 | 458792 i.knoknot
i.knoknot's picture


while i completely agree with your thoughts on having an open mind, and not being too "perma-biased" in either direction, i believe the game is nothing like you think it is. which i (mistakenly?) assume you believe is merely a recession-shaken version of yesterday (ala 2004, or 1997, or 1985, or 1978, etc.)

most folks who are choosing to pay attention, know that even when you've fallen half-way down Mt Everest, you still have along way to go... i don't believe we've even started the real fall yet.

i'm not a "perma-anything", and have spent my entire life trusting in a 'goodness fabric' that sits under the opportunistic corruption that will always exist in the world of men.

but i believe our generation is the first to have this thing called "the net" where we can collectively view and question the MSM thought manipulators with honest discourse, and see their lies and machinations for what they really are (and have been). this change alone indicates to me that we're the first populace to actually see a little bit behind the curtain... and that means we have a *lot* of catching up to some sustainable reality (60+ years worth).

we, the supporting 'fabric' can now see the weight and extent of the corruption in our worlds and are moving to hold the wheat (each other) and let the chaff fall through. this is 60+ years in the making and will take a few years to manifest itself. but it will, because trust is the real market, and the pockets of trust are changing radically and quickly.

we are now trusting things like gold, food in our basements/closets, our neighbors, local banks - birds in the hand, so to speak. we are no longer happy to send our kids to public institutions and 'hope' they get taught accurate history. we barely trust our banks, but convenience is a powerful force, and alternatives are few and unfamiliar. we don't trust the Dow or CRIMEX at all, but the big players apparently don't need us for their games. in short, we are pulling that precious resource called trust back to where it belongs, in ourselves, and the government is thrashing as they try to force us to continue to trust their charade through various 'social programs' and economic engineering.

a better ZH argument isn't whether 'it' is broken, but whether 'it' is broken beyond repair, and whether those who are driving are either desperately trying to fix things for the better good, or desperately trying to hide their last days of a multi-generational fleecing system. i view their behavior as beyond irrational.

many perceive a 'bump' in the continuity. i see a major reset.

many see recent/current administrations as caring. i now see them as trying to break the system so they can 'fix' it/us.

many trust government. i fear large groups of people of any sort. groups with the guns even more.

i have not always been this way.

and i hope your rope holds.

Thu, 07/08/2010 - 16:28 | 459106 RichardP
RichardP's picture

Morph, not reset.

The U.S. has forever been becoming something different than it used to be.  Read history books.


Fri, 07/09/2010 - 04:12 | 460074 i.knoknot
i.knoknot's picture

quite true, as goes with most complex organisms.

it just feels like the country's DNA has taken a bigger shift than the organism can manage, and we're being fed some serious chemo-drug that's designed to kill half of us and make us nauseous, etc. and i was pretty sure all we had was stomach flu.

if it's a morph, i think it'll be a much more radical/quick one than those history books have recorded to-date. perhaps each generation feels like their morph is bigger than the others... proximity, i suppose.

either way, i hope i'm wrong.

Thu, 07/08/2010 - 14:18 | 458713 NOTW777
NOTW777's picture

that handle you see is used to open the door. try it now.

Thu, 07/08/2010 - 14:24 | 458717 Rusty Shorts
Rusty Shorts's picture

@ scratch, history you say.


"There is a moral of all human tales;

'Tis but a rehearsal of the past.

First Freedom and then Glory - when that fails,

Wealth, Vice, Corruption - Barbarism at last.

And History, with all her volumes vast,

Hath but one page.


 - Lord Byron, 1818


The Course of Empire


Thu, 07/08/2010 - 14:40 | 458771 scratch_and_sniff
scratch_and_sniff's picture

WTF is this? Poetry corner?

Thu, 07/08/2010 - 14:56 | 458817 i.knoknot
i.knoknot's picture

you didn't even read it, did you...

this doesn't rhyme, but covers your comment pretty well:

 "those who don't learn from history, are doomed to repeat it"

(roughly quoted - George Santayana)


great quote rusty. can't believe those guys back then were as smart as we all are now, eh?

Thu, 07/08/2010 - 15:01 | 458830 scratch_and_sniff
scratch_and_sniff's picture

I read it when i was 12 you plank.

Thu, 07/08/2010 - 15:11 | 458857 i.knoknot
i.knoknot's picture

ah, name calling. usual resort of those with no self-esteem

to read is merely a mechanical action. to understand - something quite different.

Thu, 07/08/2010 - 16:30 | 459117 RichardP
RichardP's picture



Thu, 07/08/2010 - 16:35 | 459136 Cognitive Dissonance
Cognitive Dissonance's picture


Happy one year Zero Hedge anniversary. Thank you for your contributions over the past year.

Thu, 07/08/2010 - 20:34 | 459667 Dr. Sandi
Dr. Sandi's picture

Those who didn't learn in 7th Grade are doomed to repeat it.


Thu, 07/08/2010 - 14:35 | 458758 Ripped Chunk
Ripped Chunk's picture


"When i was 17 i took mescaline one night and had a very bad experience"

Not surprising. There are many minds that should never do psychedelics. Those that are paranoid by nature and those that have cognitive and other problem solving constraints need to stay away.

Thu, 07/08/2010 - 14:47 | 458787 scratch_and_sniff
scratch_and_sniff's picture

And what have "problem solving constraints" got to do with taking  psychedelics??? If you want to call me thick, go ahead. I know my place in the world.

Thu, 07/08/2010 - 16:03 | 459002 Ripped Chunk
Ripped Chunk's picture

And expanding your consciousness ain't it

Thu, 07/08/2010 - 14:46 | 458781 DosZap
DosZap's picture

S & S,

Well, if that's the way you see it, WTF you still here for?.

Emotional Abuse?.

Thu, 07/08/2010 - 14:53 | 458807 scratch_and_sniff
scratch_and_sniff's picture

It beats TV.

Thu, 07/08/2010 - 17:28 | 459289 Ripped Chunk
Ripped Chunk's picture

I'm with you there!

Thu, 07/08/2010 - 16:14 | 459054 Womb Service
Womb Service's picture

Just because you're paranoid it doesn't mean they're not out to get you.

Thu, 07/08/2010 - 17:26 | 459283 Temporalist
Temporalist's picture

Most people that have a bad trip are already mentally unstable.

Thu, 07/08/2010 - 17:28 | 459290 Ripped Chunk
Ripped Chunk's picture

I think thats what I was trying to say.

Thu, 07/08/2010 - 17:55 | 459366 scratch_and_sniff
scratch_and_sniff's picture

Most people that take mescaline are mentally unstable.

Thu, 07/08/2010 - 18:31 | 459425 Ripped Chunk
Ripped Chunk's picture

I don't think so.  There is much more to see and hear besides the here and now. 

Millions of years of evolution have forced your brain to focus in acutely on the here and now. That is the product of evolution, so the species would survive.  It really gets quite boring. 

The inside of your brain is an amazing place to go. But the most important part of any journey is leaving. You could learn quite a bit. On the other hand, if you are hanging on by a thread (and don't even realize it) you could lose it. Like I said, the mind is an amazing place to tour.

Thu, 07/08/2010 - 18:34 | 459467 scratch_and_sniff
scratch_and_sniff's picture

Give it a rest and nuzzle my balls.

Thu, 07/08/2010 - 19:00 | 459519 Ripped Chunk
Ripped Chunk's picture

Let yourself go and give in to your homosexual urges. You don't need shrooms or mescaline to do that. Just go down the bus depot and pick up the first attractive man you see.

See, only people who have gained value and perspective from psychedelics talk about them the way I (and many many others) do. The rest that have either tried or are too afraid to point a finger and say "nut job"

Pretty red neck way of expressing yourself really.


Thu, 07/08/2010 - 13:27 | 458627 Renfield
Renfield's picture

I gotta problem. After reading this, half my brain says, "Holy shit--this guy's really out there on the lunatic fringe!" Unfortunately, the other half of my brain says, "Holy shit--he's right; it makes perfect sense!"

What to do, what to do....

"Let me entreat you, Dr. Seward, oh, let me implore you, to let me out of this house at once. Send me away how you will and where you will, send keepers with me with whips and chains, let them take me in a strait waistcoat, manacled and leg-ironed, even to gaol, but let me go out of this. You don't know what you do by keeping me here. I am speaking from the depths of my heart, of my very soul. You don't know whom you wrong, or how, and I may not tell. Woe is me! I may not tell. By all you hold sacred, by all you hold dear, by your love that is lost, by your hope that lives, for the sake of the Almighty, take me out of this and save my soul from guilt! Can't you hear me, man? Can't you understand? Will you never learn? Don't you know that I am sane and earnest now, that I am no lunatic in a mad fit, but a sane man fighting for his soul? Oh, hear me! Hear me! Let me go, let me go, let me go!"

I thought that the longer this went on the wilder he would get, and so would bring on a fit, so I took him by the hand and raised him up.

"Come," I said sternly, "no more of this, we have had quite enough already. Get to your bed and try to behave more discreetly."

He suddenly stopped and looked at me intently for several moments. Then, without a word, he rose and moving over, sat down on the side of the bed. The collapse had come, as on former occasions, just as I had expected.

When I was leaving the room, last of our party, he said to me in a quiet, well-bred voice, "You will, I trust, Dr. Seward, do me the justice to bear in mind, later on, that I did what I could to convince you tonight."
- Dracula, Bram Stoker

Thu, 07/08/2010 - 18:49 | 459502 RockyRacoon
RockyRacoon's picture

Which is the monster in this scenario I wonder?

Hey, nice new avatar. 

Not so sexy as the one I suggested, but nice.

Fri, 07/09/2010 - 01:29 | 459997 Renfield
Renfield's picture

Rocks! My reply sadly got separated from the original comment; I was trying to say that sometimes the 'insane' side of us, is actually the truthful one that may be saving our life.

Thank you for noticing my New Look! You will see that it IS Female. :-)

You and MsCreant both gave me some VERY sexy pictures to put in my Art file. Where they now reside, along with certain manga & portrait viewables.

BUT - the trouble was, that your suggestion was TOO undeniably sexy, and desirable.

Not crazy, or even slightly offputting at all...which unfortunately, 'Renfield' is. Alas, in real life the 'lunatic' would have a lot more listeners, and a lot less straitjackets, if she achieved even 1/10th of the sexiness that you and Ms showed with your avatar suggestions...

Story of my life, really. The packaging doesn't advertise the product so well; the reason no-one listened to Renfield in Dracula was that he wore straitjackets a lot and kept eating flies alla time. If he'd been at all sexy and gorgeous, the Count would prolly have been chopped into little pieces straight away and the novel would be like 3 pages long.

So, as chic and enticingly dangerous as your and MsCreant's suggestions were, alas they weren't such a good match for my deranged lunatic screen-name, as my squalling child with the caked & running makeup! :-D

(I actually was going to try an avatar of Straitjacket Barbie - if I could find one - but my husband said that would send entirely the wrong message! He said every bondage freak on the 'net would turn up on Zero like pins to a magnet, and well, there would go the neighbourhood...)

Thu, 07/08/2010 - 14:50 | 458793 Return2Sanity
Return2Sanity's picture

Preparation good, paranoia bad.
Desperate people may do desperate things,
But they're usually not very good planners.

Fri, 07/09/2010 - 01:33 | 460000 Renfield
Renfield's picture

Do I really look like a guy with a plan? You know what I am? I'm a dog chasing cars. I wouldn't know what to do with one if I caught it. You know, I things. The mob has plans, the cops have plans, Gordon's got plans. You know, they're schemers. Schemers trying to control their little worlds. I'm not a schemer. I try to show the schemers how pathetic their attempts to control things really are. So, when I say...Ah, come here. When I say that you and your girlfriend was nothing personal, you know that I'm telling the truth. It's the schemers that put you where you are. You were a schemer, you had plans, and look where that got you.

Thu, 07/08/2010 - 15:51 | 458969 Inspector Asset
Inspector Asset's picture

As seen at the


Agonizing into late hours of the night, the judges casted their votes and Goldman Sachs was once again, winner of the coveted "Con-of-the-Century Award" for the 2nd straight year. The prestigious award, is bigger than the "Annual Banksters & Gangsters Ball" itself, and brings with it, much notoriety and extremely wealthy prospects from other cartel members.

Much effort is taken in keeping this event hidden from the public, but the Wall St Onion was tipped off at the last minute, of a private resort in the Cayman Islands hosting the ball. We were able to penetrate the security gate, by sending in a pack of hot college girls dressed up as "The Smart Cookies" from the American Express.

The Panel of Judges looked at many cons and ponzi schemes over the years including JP Morgan's manipulation of the gold market to the Hunt Brothers cornering of the silver market in the 70's. But in the end, nothing compared to, Goldman Sachs 7$ trillion wealth transfer of middle class assets to it's own ultra rich class, by a method better known on Wall St as the "Sub Prime Shuffle."

It had been pulled off in the 30's by a group of rogue bankers, but with 30 independently run business units, Goldman was able to pull it off on a massive, nation-wide scale. With shady mortgage brokers from one deptmartment, CDO pushers in another department and chop shops they own (51%) for ridding toxic assets; Goldman had engineered a fully vertical integrated one stop shop for fraud.

Besides the "Con-of-the Century Award," Goldman or Goldman Alumni, pocketed a few other awards as well. One of them was "Best Architech of Fraud" awarded to former CEO, Hank Paulson. Hank Paulson also won awards for "Infiltrating the White House" and for "Biggest Bag of Bailouts Given by One Man" ($700 billion).

"Best Architect of Fraud" was given to Hank Paulson because of his sheer tenacity and endurance to see the scheme through to the end zone, even though it took almost 20 years. Hank would be there from the beginning championing for the break down of Glass-Steagall, and 20 years later he would happen to be Treasury of America with a premeditated $700 billion dollar bailout for his cronies. Naturally, Hank Paulson was also awarded the the "Infiltrating the White House Award" something that had never been accomplished by a banker. The scheme played like right out of his college football days. Hank, as quarter back, does a reverse hand off, and then runs 90 yards to catch a pass and score the touch down!

Another Goldman Alumni, Chris Cox, was awarded "Best Insider" as he headed the SEC long enough for Goldman Sachs to re install their servers in front of the que of servers belonging to the SEC themselves. Its all about que position for these High Frequency Traders these days.

Lastly, Goldman Sachs, took awards for "Best Plea Bargain" for offering up a couple 20 somethings from the mortgage trading department along with a couple billion dollar fine to the SEC for a simple 10b fraud case, while covering up the "7 trillion dollar wealth transfer" to it's clients.

Steve Friedman, another Goldman Alumni won "Most Bold Inside Trade by a Politician" with his fearless attitude of buying Goldman Stock as he was President of the NY Fed. Some say it was as bold as casually walking out of Best Buy with a flat screen on your shoulder you didn't pay for.

Ma doff, currently detained, although not present for the "Banksters & Gangsters Ball" was awarded "Best Side Show" for his his sacrificial offering of himself to conceal the real ongoing fraud on Wall Street.

Goldman Sachs and Morgan Stanley tied for first place for the award "While You Were At Lunch." This award is based on how much you can change the laws, and how fast you can change the laws, to allow your firm to comply with the laws. Sometimes it just pays to pay your lawyers to change the law rather than to comply with the law. As was the case with Goldman and Morgan Stanley, becoming commercial banks, with access to the Fed window, with their lawyers working through the night and a pile of pizza boxes to hammer out the legal mumbo jumbo.

Speed and legal mumbo jumbo has it's place, but not when it comes to the implementation of the Volker Rule. Therefore based on brilliant "stall" moves by Dodd and Frank to allow 12 years for the banks to follow the Volcker Rule, the Judges have created an Award called "While Your Kids Grew Up" based on the ability of a politician to stall long enough to where the public forgots the point of reform. I think 7 years is the threshold where by most people forget.

Lastly, as expected John Thain won "Biggest Bag Of Bonuses Given by One Man" as he scribbled down on a paper napkin, "$40 mil to my brokers" in the last minutes of the merger deal between his firm Merill Lynch and Bank Of America.

The Judges were so impressed with John Thain in that deal, because Merill was about bankrupt, yet John Thain was able to convince Bank of America to pay him an obscene amount of cash for the failing firm not to mention the last minute bag of bonuses for his brokers, that the Judges decided to create a new award for next year Banksters and Gangsters ball, inspired by John Thain. The award is called "The Lynch Treatment" and is awarded to a bank that is technically insolvent but is able to convince another bank to buy it for an obscene amount of cash.

Thu, 07/08/2010 - 20:39 | 459676 Dr. Sandi
Dr. Sandi's picture

Wow, déjà vu!

Thu, 07/08/2010 - 12:17 | 458453 CharlesBronson
CharlesBronson's picture

Crazy talk, heard it all before. You lost me at "fake" world... Glad your back now get to work.


Thu, 07/08/2010 - 12:29 | 458470 LePetomane
LePetomane's picture

Exactly.  Equating the sanctity of precious metals as a long term investment strategy with the unlikely event of a complete societal meltdown is, how should I put this...



... Y2Kish

Thu, 07/08/2010 - 12:43 | 458515 Kaiser Sousa
Kaiser Sousa's picture

last check of history shows that Gold & Silver have been money for thousands of years...

surely, over this period there were no socio-econmic meltdowns as well - right...

fast forward to today...what is money? "Federal Reserve Notes" and other fiat currencies? Or, that which is a store of wealth/savings, a reliable unit of account, and least importantly a medium of exchange...

take the red pill please........

Thu, 07/08/2010 - 12:56 | 458544 tgatliff
tgatliff's picture

Maybe for "thousands of years" gold and silver has been money, but my last check showed that in our current day I cant buy a loaf of bread or pay a mortgage with gold or silver. 


Meaning, fiat currencies will always rule the day as long as they continue to be the single source as a tradable medium because people will still be forced to liquidate their gold and silver portfolios when they need physical tradable assets.  

Thu, 07/08/2010 - 13:05 | 458562 Max Hunter
Max Hunter's picture

;people will still be forced to liquidate their gold and silver portfolios when they need physical tradable assets.'

Maybe so. Are you actually saying that it's not a good idea to have a hedge on paper with physical gold and silver? A substantial hedge proportionate to the degree of fiscal irresponsibility would be prudent. 

Keep your paper. I hope you have a safe full of it when the SHTF.

I will have a bit of everything, food, water, silver, lead.. etc..

Fri, 07/09/2010 - 01:46 | 458574 Renfield
Renfield's picture

I would say that liquidating gold to buy bread makes about as much sense as selling your house for petrol money.

Yes, for some that may be necessary.

But most who buy gold, are like those who buy a house (not a mortgage - a house). You 'can't' use a house to buy bread either...although you might one day use gold to buy a house.

Gold is a base of long-term wealth. It is not meant for day-to-day expenses. And certainly, no-one should (or hopefully would) exchange their bullion in the service of a bloated, unpayable debt.

Thu, 07/08/2010 - 13:27 | 458625 WaterWings
WaterWings's picture

Hey look! It's another one of those from the "but my last check showed" crowd.

Thu, 07/08/2010 - 15:02 | 458834 i.knoknot
i.knoknot's picture


as usual, nicely put, ww

'it happened yesterday, so it should happen today too...' or 'couldn't happen here/to me, etc.'

i'm not surprised when my dogs behave that way... but when most of the people in the traffic surrounding me...

be afraid, very afraid.

Thu, 07/08/2010 - 15:55 | 458981 WaterWings
WaterWings's picture

Speaking of 9/11 it's not too far away from the decade-old expiration date of recency bias. Soon it will be "can't happen here" again. So sad.

Yes. Be very afraid. But, I don't think we have much longer. Can't figure out what the gov't plan is for the gulf. All the toxins, month after month.

Thu, 07/08/2010 - 13:34 | 458638 UGrev
UGrev's picture

so you don't use quarters or dimes etc? how about the ability to pay with circulated, $1 gold coins? 

Some people should just not be so quick to utter words like "Can't buy with gold or silver" unless the proper, added, context of "Bullion" is present in such a statement. 

Thu, 07/08/2010 - 16:08 | 459023 Seer
Seer's picture

"but my last check showed that in our current day I cant buy a loaf of bread or pay a mortgage with gold or silver."

You need to restate this as:

1) I can NOT trade in gold;

2) I do not KNOW how to trade in gold.

It's either of these.  It's NOT your paycheck's issue/fault.

If your issue is centered on the first (I can NOT trade in gold), then you're not looking close enough.  And, because one cannot do something today does not mean that it cannot be done tomorrow.

If your issue is centered on the second (I do not KNOW how to trade in gold), then do some research (identify people willing to trade in gold; dump those that do not).

Thu, 07/08/2010 - 18:53 | 459511 RockyRacoon
RockyRacoon's picture

Don't waste your time on the half-educated unless they show a propensity for learning.

Work on the folks who will be open-minded and willing to participate.

I've given up trying to sway anyone unless they ask first.

Thu, 07/08/2010 - 13:05 | 458561 LePetomane
LePetomane's picture

2000, gold was @$270.00

Now, gold recently hit $1250.00 minus profit taking, it stands at $1200.00.

Assuming gold doubles to $2400.00


Upside, 100.00%

Downside retracement, 77.00%





Thu, 07/08/2010 - 13:16 | 458597 Escapeclaws
Escapeclaws's picture

He was a real artist, like Picasso.

Thu, 07/08/2010 - 14:06 | 458694 David449420
David449420's picture

scratch_and_sniff & flatuance guy (LePetomane).

Both joined 3 weeks ago. Both probably on the same gov't payroll.


Thu, 07/08/2010 - 14:41 | 458739 LePetomane
LePetomane's picture

Funny, the author didn't mention paying innkeepers and petrol merchants with doubloons.

Perhaps armageddon will happen before his next credit card bill arrives and the gold spike will pay for his adventure.

Then again, perhaps not.




Thu, 07/08/2010 - 15:05 | 458841 i.knoknot
i.knoknot's picture

probably an article reference to ZH on one of the yahoo finance groups... bummer.

Thu, 07/08/2010 - 12:45 | 458519 russki standart
russki standart's picture

Go back to your beer and TV remote. One day you will figure it out after you are broke...

Thu, 07/08/2010 - 12:51 | 458537 NOTW777
NOTW777's picture

yeah, "crazy." lets get back to the real world - you know, obama speeches, cnbc, the joe biden recovery.

Thu, 07/08/2010 - 13:51 | 458667 Thoreau
Thoreau's picture

The guy was ALIVE for forty days and forty nights; you're just a jealous, stuck-in-your-meaningless-existence fuck. So just keep listening to your sheep herders.

Thu, 07/08/2010 - 12:18 | 458456 BeerGoggles
BeerGoggles's picture

I think your eyes would be even wider open if you made a 40 day trip outside of the USA :)

Thu, 07/08/2010 - 12:56 | 458545 Rusty Shorts
Rusty Shorts's picture

Yep, I've accumulated about a year outside of the states, most of it in West Africa, and I can tell you, we are living in a very small box here in the states.

Thu, 07/08/2010 - 15:07 | 458851 i.knoknot
i.knoknot's picture

+++ let alone NYC...

Thu, 07/08/2010 - 15:24 | 458894 DosZap
DosZap's picture


You must have relatives there..otherwise, WHO,where would you trust a years wealth to?.Surely not  a Bank.

Thu, 07/08/2010 - 17:35 | 459313 Rusty Shorts
Rusty Shorts's picture

 - nope, no relatives there, it started with a biodivesity research project, then morphed into the greatest experience of my life...I cannot explain it other than saying that ..I have never felt so alive, and free, in my entire life. I have returned several times now, and planning to travel again asap!!


Here is a video of some of my travels in West Africa, sorry for going crazy with moviemaker effects.

 - longer version/compilation,

Thu, 07/08/2010 - 21:56 | 459795 Escapeclaws
Escapeclaws's picture

Probably too late for you to get this, but thanks for the photos Rusty. Beautiful country and people.

Thu, 07/08/2010 - 23:52 | 459918 Rusty Shorts
Rusty Shorts's picture

Thank you Escape.

Thu, 07/08/2010 - 12:59 | 458549 Mercury
Mercury's picture

Yeah, like you'd have an even better idea of what Obama has in store for us - and no I'm not talking about Switzerland, Singapore or New Zealand. Think closer to the equator and higher infant mortality.

Thu, 07/08/2010 - 13:44 | 458656 Cathartes Aura
Cathartes Aura's picture

I think your eyes would be even wider open if you made a 40 day trip outside of the USA :)


I waited for some "I had my eyes opened" in his post, but apart from a paragraph of "I went HERE, then I went THERE" - nothing - where's the new perspective from getting out of "manhattan" hometown? did he talk to any people? what did they say?

the post says zero to me - "I went on vacation and now I'm back and things are fuct and you should definitely buy gold & silver because our leaders don't care about us". . . well, duh dude!  been reading that and saying that for years - you just wake up rip van winkle?

I'd like a list of the hotels he stayed in, cause I'm betting they were the cookie cutter boxes that have the same amenities worldwide, including a remote control for the box. . . where was the perspective here?

oh wait, he doesn't actually have one.

Thu, 07/08/2010 - 15:06 | 458848 i.knoknot
i.knoknot's picture


noting the smiley, even a little 40 day trip outside the NYC center of the universe is a really good start, but you're spot-on in your comment.



Thu, 07/08/2010 - 12:28 | 458457 hedgeless_horseman
hedgeless_horseman's picture

Will it be the East and West Coasts versus the Flyover States?  Sounds like he was doing recon for the Blue States.

Thu, 07/08/2010 - 12:39 | 458502 Mr. Anonymous
Mr. Anonymous's picture

Well, if the PTB lost control, that would certainly be their hope.  If the bulwark of Left vs. Right fails, they'll have to switch to state against state.  Throw in inter-generational envy (The Boomers did it to ya!) and they can hope to muddle through behind their high iron gates and armed phalanxes of Xe! troopers.

Whatever happens, the English king must divide the Clans.  For the People united will sweep any foe from the battlefield.

Thu, 07/08/2010 - 15:35 | 458923 DosZap
DosZap's picture

Mr. Anon,

Exactly..............I'll stir the pot like a madman, with my left hand.

All the while, doing all the damage with the right. This agenda has been used to perfection thus far.

Let him who has eyes to see, see....................and ears to hear, hear.

Thu, 07/08/2010 - 13:29 | 458633 WaterWings
WaterWings's picture

Urban vs Rural. Or, more specifically, those that can produce their own food vs those that cannot.

Thu, 07/08/2010 - 15:00 | 458829 Kali
Kali's picture

Yes.  Grow it, trade it, protect it. 

Thu, 07/08/2010 - 15:01 | 458831 Gully Foyle
Gully Foyle's picture


Google Jesusland.

Thu, 07/08/2010 - 15:58 | 458987 WaterWings
Thu, 07/08/2010 - 12:22 | 458459 bpj
bpj's picture

So close but you missed it, should have stopped at Canyon DeChelly, imho trumps the Grand Canyon.

Thu, 07/08/2010 - 12:32 | 458479 thesapein
thesapein's picture

How can you say that? I loved Canyon DeChelly as much as the Grand Canyon, but to say one trumps the other... Maybe you meant one was over rated compared to the other?

Loved my road trips, too.

Thu, 07/08/2010 - 12:35 | 458487 RobD
RobD's picture

I will second that thought. Me and the wife did a jeep jamboree there about 7 years ago. Drove up both legs of the canyon all the way to the ends. Beautiful.

Thu, 07/08/2010 - 12:24 | 458462 -Michelle-
-Michelle-'s picture

So expect more and more announcements of Russian and Chinese cyber attacks or the like, which will be used as an attempt to censor the web

Such as this WSJ story:

And the last week's cover story of The Economist:

Thu, 07/08/2010 - 15:00 | 458828 BurritoGas
BurritoGas's picture

To Michelle, and commenter below me:

Regarding the Internet Kill Switch, under current telecommunication rules, the president CURRENTLY has the power to "Kill" all telecommunications(i.e Internet).

As much as there has a big wave regarding this, the currently Joe Lieberman measure will limit that power.

See below link which explains in detail so I don't have to.

Thu, 07/08/2010 - 16:13 | 459045 Seer
Seer's picture

While I am distrustful of any body holding lots of power, I doubt that they'd hit any kill switch, as doing so would collapse business faster than you can say "kill switch."

Thu, 07/08/2010 - 12:28 | 458469 Rogerwilco
Rogerwilco's picture

Another sign of desperation is the balls-to-the-wall IRS initiative to harass expatriates and make it difficult or impossible for Americans to open foreign bank accounts. The new tactic is to require "cooperation" from foreign banks where they have to provide detailed iformation on accounts held by U.S. citizens. Most foreign banks are taking the easy route and simply closing accounts held by Americans. This forces expats to rely on ATM withdrawals (typically $250 to $500/day max) and basically slams the door on anyone trying to start or run a business outside the USA. We are just a few steps away from formal capital controls.

Thu, 07/08/2010 - 12:41 | 458507 bjennings
bjennings's picture

I kind of don't have a problem with this since most of the wealthy tax dodgers use foreign bank accounts to hide their wealth.  I think going after foreign bank accounts flies against the New World Order Conspiracy Theory and I hope they get every last one of the cocksuckers who royally screwed us and then hid their wealth in some foreign bank account.

Thu, 07/08/2010 - 12:50 | 458535 Rogerwilco
Rogerwilco's picture

"most of the wealthy tax dodgers use foreign bank accounts to hide their wealth. "

The same is true domestically, does that mean you should be denied a legitimate bank account because some wealthy criminal has one? Freedom is a concept you need to get familiar with.

Thu, 07/08/2010 - 13:10 | 458575 bjennings
bjennings's picture

Today freedom is a concept that has been channeled by a bunch of tea baggers who have no more a clue of what our Founding Fathers intended than they have a clue about what is freedom.  They are the same bunch that bailed themselves out in the trillions of dollars and once satisfied start screaming for austerity.  Show me a real Tea Party or Conservative Movement and I would be the first to join.

Thu, 07/08/2010 - 13:16 | 458595 thesapein
thesapein's picture

Ron Paul

Thu, 07/08/2010 - 13:28 | 458630 almost_have_a_name
almost_have_a_name's picture

Ron Paul's Tea Party understands what is going on.

Sarah's 'tea party' is clueless.


Thu, 07/08/2010 - 13:53 | 458672 Gold...Bitches
Gold...Bitches's picture

Exactly.  They go on and on about smaller govt, ending bailouts/giveaways/etc... then add "dont touch my medicare or social security"...


Thu, 07/08/2010 - 16:35 | 459137 Arseclown
Arseclown's picture

I would love to hear your idea of a "real" tea party or conservative movement.  Republicans are not the tea party, nor is the ruling class.

Thu, 07/08/2010 - 17:57 | 459371 bjennings
bjennings's picture

Republicans are the tea party.  They're not supposed to be but they've done a pretty good job of rounding up quite a few folks, channeling their anger and labeling it the tea party movement.

Thu, 07/08/2010 - 13:16 | 458587 thesapein
thesapein's picture

You know not what you say.

Calling tea party supporters criminals isn't the sign of someone familiar with freedom.


Thu, 07/08/2010 - 18:14 | 459411 bjennings
bjennings's picture

No.  You know not what you say.  I didn't call tea party supporters criminals.  If anything, I called tea party organizers criminals (save for as someone else pointed out perhaps Ron Paul).  Tea Party supporters are generally just middle aged white men who can't stand a black man being in the Oval Office which is just a meaningless argument.  All 90% of tea party supporters know is they want the Dems out and the Reps back in which is also meaningless in my view as they are just two heads of the same beast.  Great distraction from the real issues though.  MSNBC spewing their crap on the one side and Fox News spewing their crap on the other and for a break from it all we get reality TV.

Thu, 07/08/2010 - 13:12 | 458580 thesapein
thesapein's picture

You disgust me.

You want their money? You don't deserve it.

This country was founded on "tax dodgers."

Thu, 07/08/2010 - 18:05 | 459397 bjennings
bjennings's picture

Glad to disgust.  I don't want "their" money.  I want my money back, which is likely in some foreign bank account or more hilarious probably used to fund a startup in China. It wasn't good enough that the top 1% managed to get out of paying taxes but then they got greedy and got the gov't to divert $10T or so of our tax dollars to their bank accounts.  For the record I'm completetly against a Federal Income Tax of any kind.  It has been a great tool to wage wars and otherwise transfer wealth.  The Dems do it with government programs outsourced and mangaged by private for profit companies.  The Repubs do it with no bid contracts, tax breaks, outsourcing prisons, etc... None of this would be possible on such a grand scale without a Federal Income Tax.  Sorry for the brevity.

Thu, 07/08/2010 - 12:43 | 458516 walküre
walküre's picture

It never works. The people typically expat with their money when that happens.

Why should America be any different that way than Russia or Argentinia for example?

The shit hit the fan but the propaganda is strong and to this day, people believe it more than they do not. After all, 40 years of being told that America is the greatest nation on the planet does something to the collective mindset over time. Got news for you. America is not all that.

However, the cult of patriotism as executed among the millions of  Americans and supported by a nonstop patriot government propaganda will turn people against each other. The guy next door who has gold in his house may be deemed unpatriotic. You may not want to bother the guy but your kids man, your kids are so patriotic that they will surely report to the hall super and he reports to the principal and he reports to the local authorities.

America is already a fascist state. American people are more paranoid than any other people - for a reason. There is no trust among people, there is no trust to authorities unless they are on your ideological side and you can score brownie points.

People with offshore accounts, whoever they are .. know this and will not wait for the day that the transport trucks come through the streets and take everyone to a rail station to get herded into box cars.


Thu, 07/08/2010 - 13:04 | 458550 Renfield
Renfield's picture

One of the commentors on this site - I think it was Apostate - was talking about the kulaks, the 'rich peasant' class; in the early 1930s a boy named Pavlik Morozov became a state hero for denouncing his father for hiding grain from the state. The state encouraged peasants to spy on one another for hoarding undue wealth.

I immediately think of that now, hearing how many western citizens say they would denounce 'tax cheats'.

While I think those who have stolen their wealth in the first place from the state should be punished, I do not think of avoiding taxes on that wealth as stealing. Quite the contrary - I think many taxes are governmental theft. Starting with the so-called 'income tax'.

Thu, 07/08/2010 - 13:06 | 458565 walküre
walküre's picture

Taxation that benefits the ruling elite and their monetary system based on usury is by definition treason on the very people that built the economy with their hard labor.

Withheld taxation to support yourself, your family and extended family FIRST is every man's God given right.

Especially when you disagree with the way that a government powered by a ruling elite distributes the funds into illegitimate wars or satisfy lobbyists ie pharma or oil.


Thu, 07/08/2010 - 15:03 | 458836 Kali
Kali's picture


Thu, 07/08/2010 - 15:03 | 458840 Gully Foyle
Gully Foyle's picture


I personally like income taxes when they go to infrastructure, smooth roads and bridges that don't collpase are very nice.


Thu, 07/08/2010 - 15:53 | 458961 Renfield
Renfield's picture

Now you see why I am 'Renfield'. My ideas tend to appall people - things like No Damn Income Tax.

Nope, I don't care what income tax is used for, whether it's worthy (bridges, roads, feeding the poor) or not.

The government doesn't own my body or my labour and isn't entitled to any of what I earn.

If the government were to confine itself to roads, bridges, etc, and NOT use taxes to bail out its cronies and pad its members, it would find its need for taxes much lower. If the government were on a low budget and had to allocate limited revenue efficiently, then we would also not have the bloated public union problem we do. (I say 'we' because although I am not American, we have the very same problem with public sector unions and I suspect ours is a lot worse.)

For this reason I have no problem with SOME taxes, on things the government could be considered entitled to.

I'm no tax guru but I can certainly see that a little thinking is all that's required to come up with alternative sources of government revenue.

Land could be considered to belong to the government. (In the British system, land is considered "Crown"; not sure how it works in the US but I would think it belongs to the Republic.) So, rents, etc coming from that land could be taxable.

Taxing consumption (sales, services) could also be feasible since taxing my consumption of goods or use of services isn't theft of my labour.

Tariffs, of course, would be considered the property of government.

If there were some extraordinary expense like a war, then I could even see the government mandating a mandatory collection for that specific purpose and no other, and the money would ALL go to that specific purpose and no other...although that would certainly raise enough controversy that the government would probably not go lightly to that well.

Dare I say that if people wanted more than the 'minimum' roads and bridges - like a super freeway through the town for instance - then they should work privately to make that happen through private enterprise.

There are many ideas around an income tax. I am opposed to an income tax in principle.

As a worker, why the hell should I make a free gift of what I worked for, to his Lordship? Even if he promises he will use it for A Very Good Reason? Is that going to make me work harder, or will it discourage me from working at all, or make me attempt to hide what I earned? I honestly can't understand why any American, or 'western' citizen, having been raised to fear the Commie, thinks an income tax is an acceptable idea.

BTW: In a fiat system, there is no need for the government to tax anyone at all. Not that I believe in fiat currency either - but if we must have such a silly currency system, then why the hell is anyone paying any taxes?

Here's a quote I like from the American Ron Paul:

"Strictly speaking, it probably is not necessary for the federal government to tax anyone directly; it could simply print the money it needs. However, that would be too bold a stroke, for it would then be obvious to all what kind of counterfeiting operation the government is running. The present system combining taxation and inflation is akin to watering the milk: too much water and the people catch on."

Thu, 07/08/2010 - 14:09 | 458696 Shameful
Shameful's picture

Yep, by creating a system of handouts based on looting the "rich", the masses will most certainly turn in anyone not doing their "duty" and paying Uncle Sugar.  It's a great system really.  You train the masses to become dependant on loot and fill their heads with propaganda, and then you direct them like a weapon against your political enemies.  As you point out this has been done in history many times, no reason to expect it to stop anytime soon.Look at the Ks in Argentina for a good example of this right now.

Thu, 07/08/2010 - 13:27 | 458624 Dismal Scientist
Dismal Scientist's picture

Thanks, have been saying that capital controls are coming for weeks...

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