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The Selling Out Of Germany
By Michael Krieger Of KAM LP
In some ways it’s a battle of the politicians against the markets. That’s how I do see it. But I’m determined to win this battle.
- Angela Merkel
Gold Is Money, and Nothing Else.
- JP Morgan, testifying under oath to Congress before the Pujo Commission, 1913
The Selling Out of Germany
I feel very bad for the German people. Not only do I feel bad for them but I can empathize. I too am being forced to sit back and watch this comedy of errors as a corrupt, inept and increasingly dangerous class of elitist political and financial oligarchs destroys my nation. On Sunday night an ex-client that I have remained in contact with since my days at Bernstein sent me an email with a simple question: “What do you think of the bailout.” I didn’t have time to answer it during trading Monday but when I finally sat down I wrote the following.
Basically, it’s a total joke as is everything else the politicians have done. No one and nothing is allowed to fail and this relates to the fact that the global monetary and financial system is a complete house of cards. It’s insanely bullish for gold. If Germans rioted they would be in the streets today. They totally got sold out beyond belief. But it doesn’t seem to be in their nature to riot so rather I think they will dump their Euros and buy gold. That’s how Germans riot. With every passing day and every new bailout of the global banks (which is all this is, all TARP was, and all everything has been) more and more people awaken to the fact it’s all a total scam. This will just accelerate the process of dumping the paper currencies we use today in favor of hard assets as this system is obviously coming down. A lot of people keep asking, is this the same as post Bear Stearns? I mean here is the biggest difference in my mind. Back then people believed in the system, the market and what we have going generally. Not now. Not anymore. Thousands more people every day figure out it’s rigged and it’s a ponzi scheme.
Now remember I wrote this on Monday night after having just witnessed a 400 point surge in the Dow that was also accompanied by a $5 drop in the price of gold. Such action must have made the control freak bureaucrats the world over self assured of their brilliance and more importantly their “boldness,” the latter a term that Obama likes to use as he is pushing forward some financial nuclear bomb pipedream welfare state policy that is extremely unpopular with the citizenry. Nevertheless, that one day of weakness in gold was followed by a surge to new highs in U.S. dollar terms as the selling out of Germany led to a major rush to buy physical gold. The Germans remember history and they did not disappoint. Just think about this fact. Muenze Oesterreich AG, the Austrian mint that makes the best-selling gold coin in Europe and Japan reported that buyers had purchased 243,500 ounces of gold since April 26, compared with 205,300 ounces in the entire first quarter! Wow. Make no mistake about it what has happened in Germany in the last week (the elections in North Rhine-Westphalia and the rush to convert colored pieces of paper to gold) is the financial equivalent of the shots at Lexington and Concord in 1775. I give the German people a lot of credit for what they have done as this is not just a battle inside America. This battle is global and the German people just launched an impressive counter-attack on the control freak bureaucrats.
At this point I would like to examine the quote at the top by German Chancellor Angela Merkel. “In some ways it’s a battle of the politicians against the markets. That’s how I do see it. But I’m determined to win this battle.” What an incredibly sad woman she is. Now of course she believes every word of this as do her fellow political-class colleagues; however, to anyone that has worked and succeeded in the real world the statement sounds as if it is from an indignant infant. So here we have it folks. In a seemingly simple statement, Angela Merkel said what every control freak bureaucrat that wants to run your life the world over thinks. They ARE the market. They decide who fails and when. They decide who is to succeed. This is prevalent across the entire developed world right now. They decided to bring down Germany and its currency because they want to save face and because the banks basically are forcing them to save them again (as if this will ever end).
The larger point which I have mentioned repeatedly in these emails is that the market always wins. The scary thing is that when the market does win within the context of a political class with excess power the political class turns on its people and attacks them, shuts down the market and then there is the potential for serious tyranny. Every country in the OECD faces this now and we must be prepared financially and emotionally so that we do not allow the political class with their corporate oligarch allies to turn what’s left of the middle class (and a lot of what now can be considered the upper class) into a bunch of serfs in this nightmarish neo-feudalism we seem to be progressing toward. The more gold, silver and platinum in the hands of the people when the house of cards comes down the better. This way not everyone will be destitute and we can start over on our own without having more insane ideas shoved down our throats by our “kings and queens”.
What’s Next for the Euro?
I believe that the physical gold rush we have seen in Europe is proof that the bailout was an epic failure. Of course propaganda will be used all over the place from the emotionally captured mainstream media to the stock market, which as I have said for over a year now is largely used as a political weapon because the uneducated masses actually believe the stock market going up means things are getting better. All we have to do is look at the stellar performance of the Zimbabwean stock market during the hyperinflation to know this is complete nonsense. Ah, but the Disneyland patrons chug along the river in their teacups as “it’s a small world” plays soothingly in the background as they are about to go over a waterfall. Everything is fine, we have acted “boldly” to prevent Great Depression Part II they say. Yeah, something like that…
Ok, so one thing this monstrosity that the Europeans and IMF have unleashed upon us has done is increase the odds that Germany leaves the EU. Now of course this assumes that this thing gets passed and goes into effect as planned. If it does, I do think the chances of Germany itself leaving the union in the next 2-3 years has gone from somewhere less than 10% to greater than 50%. This is partly why I think there has been no bounce in the euro. If it is not the PIIGS that get kicked out (which would probably be very bullish for the euro) but rather that Germany itself that opts out down the road when the political leadership changes then what is a euro then? Nothing. It could trade to $0.50 or lower, who knows. This is a real risk over the next several years to anyone holding euros.
Americans Will Unfortunately be the Last to Figure it Out
I do not mean to be insulting when I say this but the fact of the matter is that during my time at Bernstein a bothersome number of investors did not understand gold. Why it is important, how it has functioned historically, and how it inevitably would function in the future. I think the understanding is far greater today but still not good enough. Now the reasons for the lack of understanding can be easily explained, the most important of which is that fact that we have had the reserve currency since World War II and this has permitted us to print money and buy resources. As such, while Americans did experience major inflation in the 1970s we have not as a nation gone through a traumatic currency crisis to the extent that many other nations in the world have done. Thus, there has been no imperative for most of us to study the history of money and gold’s role throughout history in this regard. I keep hearing “analysts” on television that clearly have no idea what they are talking about expound upon why gold is about to crash. Of course there are scenarios where gold could crash but under those scenarios the stock market would probably go down 95% while gold goes down 50% (we will end up with the Dow and gold 1:1 or close to it one way or the other). This would only happen if government’s globally stopped printing money to bail everything out. Do you want to make that bet?
One fun mental exercise that I and others have often engaged in over the past year or so was speculation as to which bankrupt OECD nation would first see panic in their markets. Would it be Japan? The United States? Europe? Well now we have out answer and in some ways some Europeans may benefit from this in the long-run. The events in the last couple of weeks culminating in the bailout has made it clear to many that this really is game over. As such they are buying gold while it is still inexpensive relative to where it is likely to go. Sadly, this has left many Americans with a false sense of security and as such the public is likely to rush into gold only when it is well above $2,000/oz when the realities of bankruptcy hit the United States.
Oil is NOT $74/b!!!
Just a quick comment on the oil price. If you use WTI (CL1 Commodity on Bloomberg) at this time you have no idea what the oil price is. As a result of what appears to be record (or close to it) inventories at Cushing, Ok, WTI crude as a benchmark appears to be useless once again. Mars oil, which is a lower quality Gulf crude is trading at $77.36/b this morning and this should not happen. It’s all a storage issue and so WTI tells you nothing. Use Brent (C01 Commodity) to get a sense of the real oil price. Brent is currently trading at $80.50/b. Meanwhile, Asian Tapis closed at $83.74/b last night. This $9/b spread is close to record highs.
Final Thoughts
Last week I did an interview with Max Kesier and it can be seen at the following link. http://www.youtube.com/watch?v=pL3n_dqRfQg&feature=player_embedded I appear 13 minutes in but the entire thing is worth watching. Max Kesier’s website is also a good one to check out during the day for some of the financial news that the mainstream media would just as soon not cover. http://maxkeiser.com/
I might not write next week as I am working on something different that I want to get out before the end of May since I will be taking all of June off to drive across America. I leave you with the following cartoon which I think pretty much sums it up!
h/t Uber Momo Trader
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Sure Leo, it will blow over for Germany like it did before. Well what blew through was WW2, bit of a big consequence 'blow over' but Im sure it will blow over much better this time.
You'll have to forgive Leo --- he has lost his mind along with his moral compass, and doesn't seem too concerned about reclaiming either one.
Well said. Leo has made himself believe that everything will be all right in the end since he has aligned himself staunchly with the kleptrocrats. Germany (or any other tax payer) is never going to see the principal again.. far less the interest
And how exactly is Germany going to collect on said debt if it is defaulted on?
Ah, Leo you still don't get it, do you? You can run fast or you can run long, but you can't run forever; entropy eventually wins.
That's why a paper loan covenant stipulating accruing principle+debt collateralized by real productive assets is the ultimate weapon.
The only way to service the compounding debt load is to continuously grow at a real rate faster than the contractual agreement.
The credit contract is unthinking & uncaring; its tribute automatically accrues without regard to specific circumstances. But you & I? Why, we must never sleep, never falter, never take a misstep, because the spectre is right behind us, over our heads now, now lying in wait for the one fateful mistake or miscue that always occurs.
Once you're down, the money-lenders are on top of you, rending you wholesale to claim their pound of flesh. If you survive after the foreclosure, you will live out the remainder of your life reduced to a state of debt peonage.
What do you think Cameron was referencing when he penned these words for Terminator?
Very nice B9K9... very nice...
Leo, the only reason Germany would end up owning Southern Europe is because Southern Europe won't pay their bills and they plan to default.
Leo, give us your point of view on items of value in Southern Europe. Enlighten everyone about the "diamonds in the rough" that might be overlooked. Lay off the "born in Greece - Sun is great here" tourism stuff because that dog won't hunt. I would be interested in anything tangible, not restaurant/tourism service sector analysis.
I junked you leo
Which germans not to feel bad for? The worker bees like me who were responsible and actually produced something or the banks managers and owners who made bad deals? Turn it around, us germans dont have any compassion for you dingalings in america. Yea, now your thinking.
You are not alone. I have put my foot in it a few times.
Oh and i am in the USA, Oregon, very german, but his is home and i would even kill germans to defend it. And i aint running from whats commen!
Es handelt sich nicht um 5% oder 3%, aber einen Staatsbankrott für Griechenland.
Automayic Earth had a similar idea within the past few weeks. Merkel wants the Euro to tank which helps Germany.
It might help imports, but it also serves to import unwanted inflation into Germany. It would be better to keep the Euro hovering somewhere around 1.25 to 1.30, as Germany is a net exporter already.
Leo, dood, what's your problem?
I had my doubts Leo, but now I am convinced that you are an utter moron. You have completely lost it.
Right back at you, Golden boy. The reaction to my comment above speaks volumes. People get angry, but they never stop to think, hey maybe just maybe Germany engineered this all along.
Are you serious on this one Leo, or are you just getting pissed off?
Well they did start the first 2 wars. lol
Damn those Germans and those Gerwomens!
Just because people disregard it doesnt mean they didnt think it.
You don't know me that well, so it would be more correct to ask, "Sprechen Sie Deutsch?"
Sure, Germany will collect 5% on its loans to Greece ... maybe. And maybe they will one day receive repayment of some or all of the principle. The real problem is that having gone the social-welfare-state route all those years at the expense of its military, it simply does not have enough panzers to collect on the collateral.
As the cover of Bild noted the other day, We are the Schmucks of Europe.
In past centuries you didn't need your own army; if you had the gold, you simply hired one.
So if you need a bit of help with a Greek repo operation, look around - the French would probably surrender; the Italians prefer making love to making war; the Turks would likely keep the place; but, fortunately, the very capable Brits are always up for a fight and could really use some replacement gold....
Excellent article, go gold rioters GO!!
(German accent): "Why would I burn down my own house, because I am angry at my government? Instead, I buy gold."
great idea... Lose Thigh Fat
Congrats Nic, you're now starting to make some sense, gold bitchez
This isn't Nic Lenoir, it's Michael Krieger.
Ever play the Michael Krieger drinking game?
It's awesome. You're flat on your face on 60 seconds.
Classic!
Bravo! And I like the toon as well!
HOW DO YOU SPELL DISGUST?:
http://williambanzai7.blogspot.com/2010/05/how-do-you-spell-disgust.html
It's not FIAT money per se that is rotten-to-the-core, it is people who are rotten-to-the-core. FIAT money is simply a way for the rotten to exploit the system and to make themselves kings of the world. It is our Midasian neuro-chemistry that has betrayed us, not FIAT money.
Excellent observation. More & more people are beginning to understand what Mako has been saying all along. All systems grow, mature & die; it is the very nature of life. All we can hope for at best is that this cycle is somewhat moderated.
By government decree? No! But by life lessons taught to each generation to live within their means, to produce & contribute to their own sustenance.
However, rather than apply our vaunted logic to good use & live within our collective means, evil men long ago figured out how to exacerbate the universal truth of greed and use it to their own advantage.
Whether money is gold or fiat, if at heart it's a credit agreement that promises enjoyment today in lieu of payment tomorrow, you know why it was created and what the eventual end result will be.
It has always been this way. The greatest crime has been committed by those who erased history's lessons so that current generations will experience the credit-echo with absolutely -0- preparation.
Now, why is this? To maximize the effect.
I think it was the financial conglomorate AMG who said it best: "Bitch better have my money!"
Seriously Tyler, you need to recruit B9K9 to the fold of contributors. Your words are too wise my friend; even most people on this blog would rather ignore the bright light you shine on humanity's dark spots. War is Peace! Freedom is Slavery! Ignorance is Strength!
Gee, welcome to the party. Michael.
A terrific editorial from Dan Norcini of JSMineset.
Posted: May 13 2010 By: Dan Norcini Post Edited: May 13, 2010 at 12:16 pm
Filed under: Trader Dan Norcini
Dear Friends,
We have said many times here over the past few years that the black boxes have captured the US financial markets. The lowly individual investor, the shareholders looking for value and a decent rate of return on their hard-earned investment capital, have become nothing less than chum for these sharks that operate with the full blessing of the government.
What else can you call a situation where transactions are completed in milliseconds and nearly the entire market cap of a publicly traded firm can be wiped out in 30 minutes by these “Machines Gone Wild”? What is a hard working citizen supposed to think when he comes home from work and learns that 10% or more of his entire net worth was wiped out in a single day?
This is no longer investing in any sense of the word – it is a gigantic feeding tank where the order flow from the public is the food that sustains an insatiable parasite that thrives by draining the vitality and substance out of its host, slowly killing it in the process.
I did not think Wall Street could sink any lower in the eyes of the investing public given the headlines of the last two years, but the following article from Bloomberg disabused me from that notion rather swiftly. What it details is almost mathematically impossible in the real world.
In a world in which markets are genuine, buyers and sellers meet to discover “value” in a given product when their decisions to buy or to sell taken collectively set a price upon a security that both groups are happy with on a given day. Sellers are pleased when they receive their asking price and buyers are pleased when they acquire a stock at the price they felt reflected its value on that day.
What makes markets interesting and so challenging is that no one knows in advance exactly where the “value” assigned by this collection of buyers and sellers will be on any given day. That is why good traders plan in advance a level or price at which they are willing to admit that their judgment of the “value” of a stock was wrong. If they are prudent, limit their losses and can maximize their winning trades, they will take 3 steps forward for every step backward. But the fact is even the best traders sometimes err.
Not so in the brave new world of the high frequency algo crowd. You see, they never have a plan for getting out of a trade that goes south because in the world in which they live, there exists no such thing. Up until now, I had believed that only God was omniscient (knows all things particularly in advance because He decrees them). Suddenly however, this new breed of mortals has achieved “godlike” status with perfect foreknowledge and flawless insight and can claim to stand on the same level with the Almighty in the realm of future knowledge.
Here is the truth – these huge firms have now become the market. It exists only to serve them.
Once upon a time, banks helped to create wealth by providing loans to build factories, start businesses and other creative enterprises. In the process of lending money, they received a fee and if they were thrifty and prudent managers of their customer’s wealth, they grew and prospered along with their customers as those businesses grew. Somewhere along the line, these behemoths lost sight of the role of a bank and have now morphed into giant black holes, that instead of creating wealth, suck it out of the pockets of the public engorging themselves like the hideous, loathsome tics that they have become.
Somehow I do not believe that this was what the Founding Fathers envisioned for our nation.
Trader Dan
Nice work Turdmaster! Love the feeding tank visuals...
Sounds like a tapeworm. Now there's an image.
Re: How Germans (or anyone else for that matter) riot
I beginning to think that we will go from the docility of sheeple mode to full-on savagery. There may not be any intermediate period of social mood. May just go from green to red hot in the span of days/weeks.
Let's give it a name, shall we?
"Going Mongol." Savage with the intent to either conquer or devour. Or both.
Watch it, BB. We're gonna go Mongol on your candy ass. One fine day. One day soon.
Actually I would prefer "going Cossack" on their ass.
Fucking Russians. Anti-semite slippery Cossack scum.
I think that the "Going Mongol" has already happened, and it has happened to US!
Washington and Wall Street are the true heirs of Genghis Khan.
Rape, pillage, murder --- the same old story. Except now the Mongols slay us with financial gimmickry in place of arrows, and burn our homes with monetary and political corruption instead of with torches. Same tactics, but more sophisticated weapons.
At least the poor Russian and Polish and Hungarian peasants who fell before the original Mongols were not first browbeaten by them into being brainwashed that what was befalling them was actually for their own good.
"Going Mongol" is what the kleptocracy has done to us. It's also a very ironic term.
The world's first purely fiat, paper money currency was invented by the Mongol Yuan dynasty who conquered 13th century China. The preceding Song dynasty is credited with the first successful paper money system, but it was allegedly convertable into precious metals, silks, etc. The Khans were the first to force totally worthless paper on a country while mandating that all precious metals be turned into the central government. Of course they were only successful for 70 some years before the Ming dynasty overthrew them.
I vote we go "Honzo" on them.
Hattori Hanzo?
Living on the run. Running to or from we are becoming a nomadic nation. Having lived that way for many years i warn that in the eyes of the runner we are all "marks". This is the low level of the human state we can sink to.
Was thinking the same thing. Sort of like the contraindications for Ambien. You're either not affected or you go totally apeshit.
The German people ARE getting screwed, and their politicians representing them are selling them out. Angela Merkel's "save the Euro" campaign was a weak and semi-transparent sham. The Germans aren't protesting/rioting yet... but they know they know what's going on. A protest march in Berlin would take a whole lot of stirring, for sure.
Americans these days are always the last to know. But again, information is obviously being suppressed in the mainstream media channels to a great degree. The issue in America is that when the protests do start, there are likely to be guns and violence to follow. Think Watts, but on a more massive and distributive scale.
As a leader, Obama had the opportunity to take several paths to get the American people through this mess. Instead of instilling a little "tough love" and exposing the people to termporary hardship, he decided to take the advice of a handful of terribly misguided economists and kick the can down the road as far as he could... only it's worse, because he took sides. Welcome to the Bankster Party (B), Mr. President.
History books were set on making Mr. Obama this next Abraham Lincoln. What we're getting instead Hebert Hoover... maybe worse.
+1000
I think the only Lincoln he took to heart was this one: "am I not destroying my enemies when I make friends of them?" Too bad he misunderstood what it meant.
Inconceivable!
Hopefully, someone will pick up "The Princess Bride" reference. :)
I do not think it means what you think it means
Spot on +1
The banksters(S---S) hand picked the commmmunity orrrrganizer. Nuff said.
Proverbs 26:11
"As a dog returns to its vomit, so a fool repeats his folly"
It is not yet over, nor shall it end pleasantly.
True chaos shall likely ensue.
Bernanke = Dog
Quantitative Easing = Vomit
I think Mr. Krieger just about summed it up. What else can you really say? Spot on.
Exchange Rate! Bitches!!
The Fed Own's those Austerity Pushing Idiots!
Fed Swap window Trumps Austerity... AGAIN! BITCHES!!!
Well, it seems countries within the EU are starting to blame each other for the mess.
http://mpettis.com/2010/05/are-you-ready-for-the-united-states-of-germany/
That won't blend it well into the next bailout discussions. (and there will be next EU bailout discussions.)
i don't follow Angela Merkel very closely, however, doesn't she believe in controlling government expenditures and avoiding government bailouts?
she is the only politician/central banker in the world that i thought had this opinion.
So to summarise
Plan a):
Gold 10k hats all round.
Plan b):
Dow 1k hats all round.
I'm going with plan a. Gonna buy some Dow 10k hats from a guy down the street who has a garage full of them, scratch out "Dow" and sharpie in "Gold"
End game is outright wealth confiscation and ugliness when the socialist educated youths figure out (prompted a few "wise" leaders) that the old rich people screwed them over.
Oh well a young man ain't got nothin' in the world these days
I said a young man ain't got nothin' in the world these days
You know in the old days
When a young man was a strong man
All the people they'd step back
When a young man walked by
But you know nowadays
It's the old man,
He's got all the money
And a young man ain't got nothin' in the world these days
I said nothing
(Young Man Blues - Mose Allison)
Young folk are getting screwed big time.
They are having deductions from their social security checks which they will never see.
The same for medicare.
Not to mention the the hidden tax of future inflation through currency devaluation today.
Don't forget the lack of innovation (money spent on war & debt to profit the bankateers, and military industrial complex, and the bribed politicians) today creates nothing in good jobs their future.
Unjust. Don't get me started. Its a song about elder hypocrisy.
It was the "young folk" with their iphones and facebook and twitter that activated themselves to vote for change that they knew everyone had to believe in.
They have noone but themselves to blame because they believed all the progressive pap that the leftist controlled education system fed them. They are as much to blame as the German Volk were for Adolf Hitler.
Just because some are naive and clueless, it doesn't meen they should be part of the base of a giant ponzi scheme that requires them to pay into a systems that they will not benefit from.
Also, I have four "young folk" between 19-26 and they are no more to blame than you are, probably less so, judging from your prejudicial statement.
Young folk are getting screwed big time.
They are having deductions from their social security checks which they will never see.
The same for medicare.
Not to mention the the hidden tax of future inflation through currency devaluation today.
Don't forget the lack of innovation (money spent on war & debt to profit the bankateers, and military industrial complex, and the bribed politicians) today creates nothing in good jobs their future.
Unjust. Don't get me started. Its a song about elder hypocrisy.
Ok wise guy. So what is the allternative? Just a long rant...
Pathetic
+1000 Michael!
Very nice job on Keiser by the way... good content/delivery but you need to reduce the "right"s by @50% to smooth out the presentation... easiest way is to buy a close friend a stun gun and sign a consent/waiver form...
What's really funny to me is that if people got solid proof that the NFL or the NBA was rigged, they'd be more pissed than if they got solid proof that their entire banking system was rigged.
Most "Joe Sixpacks" can't get excited about this stuff.
What's really funny to me is just how many times people ARE given proof that the NBA and NFL is rigged and yet they convince themselves it isn't.
The thought control works quite nicely here.
The reason is that joe sixpack does not have any wealth accumulated in the system. He owes more on his car than it's worth. He owes more on his house than it's worth.
If the system breaks down completely, he's FREE!
Yes the NINJA citizens of the US. No job, no income, no assets. i would add 50% pay zero taxes ( these are the ones you will find at protests about using "taxpayer meny" for bank bailouts). They have mediocre skills by world standards and basically their aspirations are extremely high relative to their skills ( on a global basis).
So they really have nothing to complain about. They survive quite well relative to their counterparts in 90% of the globe - extremely well. Get lots of govt assistance - unemployment benefits, etc etc. If they get sick they get top quality care , then they get a huge bill that they throw in the trash. Many have been living in their houses without having made any mortgage payments in over a year. They have credit cards - which they cant afford to pay off . 20-30% interest is charged on the balances - but they dont care - they might just stop paying alltogether - if they choose. Its a great life.
You hit the nail right on the head there.
This is a much more well-rounded summary of the state of the nation than a couple of your previous posts. I'm glad to see the scales being peeled from your eyes!
Welcome to the fold...
It's a giant shit sandwich and everyone has to take a bite.
shit sandwich
http://www.youtube.com/watch?v=-ruDdcd8G-g
Bb..but I'm not hungry.
am thinking Gold / Dow $5k seems most likely.
+10^10
Maybe even 4500:5000 or so...
I'm with ZH on Dow 36K, and I'll take Gold $14K to go with it.
http://www1.voanews.com/english/news/middle-east/Abu-Dhabi-Hotel-Boasts-...
Can some of you smart people explain why in the Western world government do not allow big companes to go broke? Does this have anything to do with derivatives?
Simple: In the short term bailing out companies is great - everyone likes you and you avoid having to deal with messy problems. In the long run its disastrous - but does any one in power care about the long run? Is it rational for anyone to care?
Look in 2005 if a wise politician had insisted on getting the property market and wild lending unde control - what would have happened? He would have been laughed at, ridiculed, might have lost his job. he is probably right now writing a book " I told you so" which is scant consolation - especially when all those who did the politically rational thing have conveniently agreed that no-one could have foreseen the disaster.
People behave in their rational sel-interest - even politicians.
No. Think Feudalism. The big corporations are the modern eqivalent of their vassals, through whom they control the mass of people and the whole society much more efficiently, much like the old Soviet collectives, but with all the efficiency and ruthlessness of a system that had gestated under and inherited the genes of capitalism before it was killed.
The cartoon is a gem.
Dad, I am considering a carreer in organized crime.
- In government or private sector?
Been a while that people are making that choice. Extorting the weak, farming the poor works.
Simple difference is that now, the weak and the poor from far distant neighbourhoods, yield an optimum like, forcing to find new turfs, located in near neighbohourhoods.
Wasnt shocking yesterday. Should not be shocking today.
Sounds like Max outted Krieger as TD. Anyone else think that? lol
Michael,
Solid article and great score to be on with Max. That said, work on dropping the "right" every other sentence and be more deliberate in your presentation. You have a worthy and important public message, but you need to work on your broadcast presentation.
AJC: "Fair value for the S&P is 1250".
On what planet? You dried-up, old hosebag!
Merkel Warns of Europe's Collapse
'If Euro Fails, So Will the Idea of European Union'
Der Spiegel, May 13
In a dramatic appeal for Europeans to come together to address the common currency crisis, Chancellor Angela Merkel warned Thursday that if the euro collapses, so will the idea of European unity. She also described the current euro crisis as Europe's greatest test since the collapse of communism. During a speech given during the awarding of the prestigious Charlemagne Prize for furthering Euroepan unity in Aachen on Thursday, Chancellor Angela Merkel used strong words to address the current euro zone crisis. If the euro collapses, Merkel warned, "then Europe and the idea of European union will fail." In her speech to guests gathered to honor this year's recipient of the award, Polish Prime Minister Donald Tusk, Merkel called on Europeans to come together, saying that deeper coordination of economic and finance policies is needed. "We have a common currency, but no common political and economic union," she said. "And this is exactly what we must change. To achieve this -- therein lies the opportunity of the crisis."
Excuse me.
How was the collapse of communism a "test" ???
Euros went to sleep each night feeling more secure, AND the social welfare states got a bonus payment because they stopped having the cost of funding a military.
Left that to the good ole USA, whining every step of the way. I am sick of subsidizing their security expenditures with my tax dollars and getting nothing in return, not even a baguette, bratwurst, or plate of pasta.
That last sentence does the trick. She supports the banksters idea NWO.
She aint my hero no more. I was hoping she would be for the Mark, for her country. Damn shame. Oh well, The germans USED to produce, not much longer with those policies.
Always leave it to a true, dyed-in-the-wool, elitist statist to find the opportunity in every crisis to expand their power --- at the expense of the rights and freedom of the individual, of course.
A wonderful article on Kid Dynamite's blog.
http://fridayinvegas.blogspot.com/2010/05/big-bank-perfect-trading-quarters-real.html
Barry is drunk again. Who wants to bet he says banks should hand out loans like cupcakes? You all forgot the doelarr is dead! Your King is dead!
http://www.cnbc.com/id/24596546
THE DOELARR: A LEGACY UNMATCHED
"The final bubble will be gold. The gold bubble will be the last hurrah." -George Soros
The doelarr's history is unmatched. Never before has a worthless FIAT IOU had such great acceptance. The scale is massive; the world was leveraged at maximum. So it went, day by day, the world turned. The birds sang a morning tune, and the rivers flowed on. Suffering was still prominent, as it is always present in nature, but at the forefront of the mind was extrinsic behavior, and due to complacency, many people held the said behavior over intrinsic instinct. Even though this logic is false, it being accepted inspired thoughts of grandeur, and this ushers in the new toy, with the same value. ZERO.
However, in the financial world, things were different. Dams were busting, and diseases spred. Interesting it was all going according to plan. Bank lending will fall to the medium sized banks, this after the Majors fall into submissiveness to Congress et al. Congress will force lending in the face of the currentsea. So they steer towards volatile seas. See you fools later.
The voyagers will attempt to leave this shore with head wimds, even though the seas are calm. They may have the seasons time, but their sense of direction is not the only other failure. They wish to travel to unforgiving lands. Their work is horrible. Let them go.
After they leave we will have one more bonfire party tonight; play the music, and love in the night! Do not worry, we are to bring the instruments, to play in celebration when we arrive. Of course we practice along the journey too, we stay sharp bypractice. For iron work, as well as jewelry. We do work with metals.
"When your shining, some chumps will want to dull ya." -Guru
The illustrious history of gold and silver is unrivaled. Kings, Queens, and thieves have launched wars simply over the precious metals. Gold and silver were the reasons to seize the Treasuries of Rome by Constantine, the metals were swiped by the Nazis during their terror (only to end up....where?), Yamasheetas gold through the 19th century-only to be had by Scull and Bones banksters, and the Armored trucks below the Word Trade Center on 9.11.01.
Blobflation Casino has taken over; not only the stock market, but the minds and hearts of its players. Some are killing the poker tables, others are losing at the roulette table. All around there are winners and losers, as there always has been. The stakes are higher now though, and when great fortunes are made, great fortunes are lost.
The stock market is forced to go big or go home. Bold moves must be played. GE will tell us that their profits must be not only legitimate but real (Mark to Cocaine is a hellavu drug). Breathing in the season is hard to do when time is busily spent at ill gotten work, yet it is all there is.
So the earth had come alive again! For no sake of the big animals; we will hibernate. Complaints still heard and registered. If it is registered, will it then be sold as a positive for the economy, these higher stock prices? If the volatility subsides for now, will America work at spending their re-funds like good little children? Tell me, 'how much is a one ounce silver coin worth?' Twenty dollars. How many do you want?
Nickolaz Sarkozy is no good guy, merely a pimp of a higher order. The beast has two heads and spew lies from both mouths. State and banking, separation non withstanding. At dinner on April 16th he fortified his authority. "Fuck you, Goldman Sachs. I am your daddy, and I am going to get some too! And if this volcano erupts further, and we can not buy any crap from Asia, do not worry, we will still buy gold."
There is an impressive thing happening here. Because of Hekla, the Icelandic volcano, there might be a little air blown into the doelarr for the next month. The effects:
First, the doelarr "strength" to continue tightening the trading range of Euro/USD. The move to $1.30 will happen quick, in the next week or two. DXY to trade roughly at 81.5. Gold and silver will continue to make nominal highs against the Euro, as well as push back up to the nominal highs for the doelarr. Then there will be a move down to $1.25 Euro USD with the DXY staying in the 81.5 range. By late May, the pressure from the doelarr will have peaked, as the State budgets of Amererica will once again be addressed. California, will legalizing pot combine with personal investment by Walled Street in Hollywood save your ship?
Hollywood Bulletin!! Hollywood goes public! The Future is Now! "I'm buying." James Cramer said, plain faced to "Cramerica", his made up realm of market serfs. Also flaunting the new Hollywood Futures Exchange, Christina Romer. "It is a wonderful chance for everyone to participate in the movie industry." The CEO went on after her at the press conference. "For our new 'land' of "Today Sucks" themed section of Disney World, you have the ability to make out with Megan Fox's virtual self from her straight to DVD film, "Sex, Lies, Faces". How extreme will Hollywood get? Will they be bought up by Apple? Steve Jobs picks up MGM Grand? How personal will this trading become? Will people have the ability to invest their 401ks in Cantor/Fitzgerald Xchange? What is money anyway? I digress.
Will folks in Hollywood feel regret and show concern of the decision? 1) How long will Hollywood last in the clutches of Walled Street? 2) How will this bubble work? 3) How much leverage will it create?
What the hell is BS doing?
The "currentsea bubble" is a misnomer. Any FIAT will have waves. Flooding is happen stance in Europe and America; it was formally a way of life. Mother earth changes. Still geographically true, and by the grace of technology, in the said States, flooding is a quelled thing. So far the above States have enjoyed economic escape from flooding as well; they have had sure currentseas. This status was achieved seemingly due to superiority of grace, and wits.
How much does a militia cost? Army, Navy, Air Force, CIA, FBI, IRS, ATF, FEMA, ETC.
This is weight on the scale on the side of the doelarr. The dollar was supposed to hold weight in the first place. This is a mighty load.
4.21.10
I HOPE EVERYBODY JUST NOW WATCHED BARRY SAY HE IS GOING TO HAND OUT LOANS LIKE CUPCAKES. HE HAS $30 BILLION PLUS WAITING TO GIVE AWAY!!!
YOUR DOELARR IS DEAD!!! YOUR KING IS DEAD!!!! STAND UP NOW AMERICA!!!! DO NOT SIT AND WATCH AS THE TREASONOUS POLITICOS OF AMERICA GIVE YOUR WEALTH AWAY!!! THEY ARE GIVING YOUR FREEDOM AWAY!!!!!!!!!!!!
STAND UP!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Ill Bill Feat. Immortal Tech- War Is My Destiny
http://www.youtube.com/watch?v=JRLl2yVrJzE
From The Dream
I met her as a blossom on a stem
Before she ever breathed, and in that dream
The mind remembers from a deeper sleep:
My dream divided on a point of fire;
Light hardened on the water where we were;
A bird sang low; the moonlight sifted in;
The water rippled, and she rippled on.
She came toward me in the flowing air,
A shape of change, encircled by its fire
I watched her there, between me and the moon;
The bushes and the stones danced on and on;
I touched her shadow when the light delayed;
I turned my face away, and yet she stayed.
A bird sang from the center of a tree;
She loved the wind because the wind loved me.
Theodore Roethke
Nice. Its good being peace to fight chaotic injustice.
now that is nice to read.
you sometimes,, kinda go off,,, on some crazy thinking.
but you ended those two with soft lullaby.
gemini
yin yang
balance
whirlwind
surf
The U.S. winning WWIII is the only scenario I can think of that would be bulish for the dollar vs. gold. Even in that case I think it would only delay some more.
All banks are a levered carry trade and when liabilities start to back up faster than assets the whole model breaks. See Diamond Dybvig if you're an academic. As long as money is coming in (Ponzi reference) the model works, when it's going out, poof, all the sudden value is destroyed. Actively in the case of bankrupting banks, or passively in the case of implicit defaults by printing money. Either way it's going down.
Vix ready to explode again
http://midasfinancialmarkets.blogspot.com/2010/05/volatility-ready-to-ex...
A New World now. China must be pissed that Barry will give away doelarrs like Kentucky Fried Chicken!
There´s no such thing like eurozone without Germany. If Germany leaves, everyone leaves, because eurozone without Germany makes no sense. My belief though is, that it will be the southern countries that leave. They have to deflate their economies to regain competitiveness, but they are not up for the pain. It´s easier to inflate, than deflate, so i think we´ll see a smaller eurozone in few years time. Greece, Portugal and Spain are most likely to leave and Ireland and Italy will stay, imho.
Naughty rumor going around that China is propping the Euro over at FOREXlive.
http://www.forexlive.com/106442/all/whispers-china-buying-the-dips-in-eu...
Notice that APMEX is out of several categories of gold.
I noticed that yesterday and today as well.
Most troubling is that they are out of most forms of gold, which did not happen even at the depths of gold's plunge in late 2008.
politicians against markets what a ludicrous quote. more like bankers vis-a-vis their PR reps (politicians) against the people.
the germans have already experienced some hefty inflation in recent history. i hope they do whatever they can to stop the looting and shenanigans. merkel can go to hell!!!
She learned everything she knows in the DDR, so what else does one expect. Surprised she's a socialist?
Okay, it's officially over for you goldbugs.
I just saw a commercial, on FOX Business, in which LEN DYKSTRA pitches gold bullion.
I'm dead serious about this.
We are no better than PIIGS, from True Slant
United States versus the PIIGS, Fiscal Year 2009
Chart didn't post; here is the URL
http://trueslant.com/michaelpollaro/2010/05/13/america-piigs-%e2%80%9cr%... so
Excellent article. Just bloody EXCELLENT!
Remember when Bush was pressing the EU to accept Turkey and the EU told him to butt out (as they should)? What do the Germans think of Obama calling up Merkel and putting the pressure on to accept the bigger bailout?
"According to American reports, it took a telephone call from President Obama to Chancellor Merkel, who was in Moscow for end-of-war anniversary celebrations on Sunday, to abandon her caution and embrace a bigger rescue package."
http://www.timesonline.co.uk/tol/news/world/europe/article7123362.ece
And what do the Spaniards think of Obama calling up Zapatero and telling him how to run his country?
"U.S. President Barack Obama encouraged Spain on Tuesday to implement economic reforms seen as critical to helping prevent a European debt crisis from stalling U.S. and global economic recovery."
http://www.reuters.com/article/idUSN1166321220100511
I don't think I've seen any clearer indication that Obama is a tool of the big banks.
After he named Geithner as Sec'y of the Treasury, I didn't need to see anymore.
Obama ='s TARP!
Obama ='s Paulson!
Now to be serious...
Obama Locked out the Lobby from the White House!
****** "Think about it. In the past several months, we've seen politicians resigning for taking millions of dollars in bribes. We've seen the head of the White House procurement office arrested. We've seen some of our most powerful leaders of both the House and the Senate under federal investigation. We've seen the number of registered lobbyists in Washington double since George Bush came into office. And of course, we've seen the indictment of Jack Abramoff and his cronies." *******
http://obamaspeeches.com/047-Lobbying-Reform-Summit-National-Press-Club-Obama-Speech.htm
No one can stop the Lobby, they are well funded and own whatever whore you have voted for!
The Lobby, NOT! The Conservative Bush and / or The Commie Bank Loving Obama is the real problem.
The Banks are using profits to pay for their Lobby? not the 0% Fed Window?
http://www.wired.com/threatlevel/2009/08/bank-lobbyists/
**** "In the first three months of 2009, the financial sector spent $104.7 million to lobby Congress and the administration, down 8% from the same period last year" ****
http://online.wsj.com/article/SB124640640747376775.html
So that I am clear... 2008 was a vintage year for Banks? they made soooooooooooooooooooooo much money on 2008 that in the first 3 months of 2009... they could drop $104.7 MILLION DOLLARS?
http://en.wikipedia.org/wiki/Emergency_Economic_Stabilization_Act_of_2008
The Ocean of Lobby Dollars owns all whores no matter which party and thats the fact, Jack!
http://www.opensecrets.org/
Nice article, and eloquent interview. Michael Krieger, the force is with you.
Ahhh Tyler, how do you sleep at night?
It does beg the question, "Why did the German parliment think that spending €148 Billion on the bailout was a better deal than dumping Greece from the EU?"
This is especilly interesting since a country in the eurozone can, without being in breach of the Maastricht Treaty, create a new central bank controlling the monetary policy of a new currency. This loophole in the Maastricht Treaty is not widely known.
http://www.jdawiseman.com/papers/finmkts/deutsche-zentralbank.html
Which is precisely why the constitution was (I say was, not is, beause it's a dead letter now) so important - it recognized human failings and, better than any other form of government the world has ever known, openly acknowledged them and attempted to reign them in, or at least mitigate them. Unchecked by any meaningful constitutional limitations, our government (rulers?) have led us merrily down the good-intentioned path to you-know-where. This will get very ugly before it gets better.
The author has a lot to learn about Europe.
Fed Swap Window ='s we own Eurpoe so watch your mouth servant! get to work and make me some money, the exchange rate is a bitch!
Austerity, 0!
And the Fed, Gazillions!
Daddy needs some new fur pimp shoes, you euro whores get out on the street and make Daddy some money!
Thanks Germany!
ok,ok,...so US bailout was right thing to do...they let few firms go belly up...and saved big ones...and now EU guys doing same thing...but this time it is different...and this is not enough?So, US can do sam thing like EU and market will recognize only what US is doing???
anyway...after every crisis, someone starts to talk like EU will fall apart, or Euro will fall apart...just for your info..it was down, it was up..and it is still standing..and it will..at least for forseable future
just one advice ....you have all heard about saying "don't fight the FED" right? well, don't fight ECB and EU politicians too...because they are in power...and we are market participants...we are playing by rules they make...and who makes rules...usually wins
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ok,ok,...so US bailout was right thing to do...they let few firms go belly up...and saved big ones...and now EU guys doing same thing...but this time it is different...and this is not enough?So, US can do sam thing like EU and market will recognize only what US is doing???70-291 \ 642-426 \ 642-456 \ 646-671 \ 70-433
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