The UK Now Officially Sees The US As A Banana Republic

Tyler Durden's picture

The following headline from the Telegraph says it all.

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HarryWanger's picture

Pretty much the same headline I read everywhere all day with the exception of which says markets rallied on "slivers of hope" in job report.

dlmaniac's picture

At this trend I cannot help wondering where the market would be if BLS reported a loss of 1 MILLION jobs rather than 400K. S&P would probably be "DRIVEN' to 1,500 pts on hope of massive Fed's stimulus.

So next time instead of dumping POMOs, Fed should just rig the BLS stats higher and then sit there watching market marching to moon on high hope.

We could almost see the light at the end of the tunnel, that is the light coming from the modern day Rome empire burning down.


chopper read's picture

can everyone please stop picking on CNBC, QE, Keynesian 'stimulus' and federal deficits, fiat money, fractional reserve lending, and (The Fed) centrally planning of our money supply?


...just kidding.  go on, then.  

IdiotInvestor2's picture

This type of headline perfectly sums up the bizzarro rally we have had in lst 4-5 weeks. There was a relentless rally in March-April that took SP500 over 1200. At that time, economy's future was very much a debate. Earnings were good due to easy comparisons. Many macro-indicators (like ISM etc) were quite positive. Whether they were temporary or not, that was an unsettled debate.

Now that debate is almost settled, and there is enough bearish evidence in the macro-indicators. Hence I think this rally has been remarkable. Gold, grains, oil and bonds - everything is up, up and up.

I am fully aware that the Fed wants an illusion of higher asset prices, and they are doing that by debasing the USD via QE. But if it results in higher oil and grains prices, without increasing employment, then Fed is really putting our future at great risk. They don't f*cking learn from their past mistakes.

They create a bigger monster to kill an existing monster and they are in this endless loop, trying to buy time. What if they cannot buy enough time ? Which is very likely and that's a nightmarish scenario.

flacon's picture

I like that phrase! Biflation!


Is Hetroflation better than Homoflation? 

Caviar Emptor's picture

hehe....we're goin' BI! At least we can be "well endowed" for something 

Raymond K Hassel's picture

masturflation - as previously coined by another on ZH

andybev01's picture

I think it depends on who is doing the 'flation'.

Rasna's picture

Remarkable?  No... Contrived?  Yes.

ebworthen's picture


The Banana Boat song; we need Ben Bernanke to sing this...

The Rock's picture

Nobody told me that the Hindenberg Omen will be followed by the "Shortenburnen Rally". 

Hedge Jobs's picture

the hindenberg had been reflated, time go long highly flamable airships

Buck Johnson's picture

When I was watching CNBC today, I thought good news must have came out because of the way the market stayed up.  But after reading the article about jobs, I understand something I saw early in the morning.  The market was originally down with the news coming out, then the PPT and others pushed the market back up and kept it up.  We aren't hearing this type of story in the US media, not one bit.  I even went to the CNBC site and it's mostly talking about DOW 11,000 and the mortgage problem.  Them saying that the job gain was positive is great, but they didn't tell us that it wasn't high enough and it was lower gain from last month and the month before last.  Which in essence telling us that jobs are being shedded.

doolittlegeorge's picture

now the earnings are even better because it has always been the government that's been broke and not America Inc.

Hedge Jobs's picture

idiotinvestor2 you are being far too rational about this and thinking from the perspective of a decent human being which the voting members of the FED are not. This isnt a "mistake" its a "game plan" and its almost complete. The FEDs stated mandate is full employment and stable prices but their true mandate is the exact opposite as is all to obvious to even a 5 yr old. oil and grains arent going up the US$ is going down, there is a big difference. With the US economy on its knees the final, fatal blow for the american middle class will be hyperinflation (of fuel and foods) that will wipe out what little wealth is left. its the final nail in the middle class coffin before stage 2 begins. Welcome to the NWO but feel free to stage a protest or demonstration any time you like. Most americans seem quite happy to see their and their families futures go down the drain. opps,Gotta go...american idol is about to start!

SWRichmond's picture
The UK Now Officially Sees The US As A Banana Republic

Hell, I beat 'em to it by a mile.

Sean7k's picture

Pot, Kettle, Black. The UK has been a banana republic since 1920. Welcome to the global banana republic. Petty wars, wealth confiscation and servicing of the ruling class. 

I'm thinking I want to have my farm declared and recognized as a separate country. Get the UN to validate my independence and then watch the bankers faces when I turn down their generous offers of investment capital. Of course, they will offer to shelter the investments in offshore banks and I will have to explain that I would only be hiding the money and stealing it FROM MYSELF. Yes, the look would be priceless...

This whole enchilada is becoming moronic. Why should we have to spend so much time and effort attempting to hide and secure our wealth from these sociopaths?" 

They are predators that lack teeth and claws, therefore they hire out thugs to place the bite and strike fear. The "rule of law" is a joke. Law merely protects the thugs. 

Humans need to rethink how they live, whom they choose to govern and lead and the structure of said organization, but then, people would have to become aware.

All present government structures are houses of slavery. The US is no exception. Bring on the revolution, bring on the chaos and make the bankers re-establish their power in an economy ruled by gold and the complete absence of leverage. 

SWRichmond's picture

The world truly is a different place when you can see the bars of the cage you're living in.

Sean7k's picture

It is indeed. Especially if you are of the type that wanted to believe in the best of America or any other country for that matter. What makes it worse is everyone's complacency. 

As much as I have traveled, I have always been impressed with the generosity of people. Yes, I have met "small" minds, but the overall majority of people I meet are nice, trusting, caring people. 

Many might refer to them as sheep and like many herd societies humans do share some characteristics. Unfortunately, the combination of predator capabilities has fashioned a weapon that can be as malevolent as it is generous in spirit. 

For me the solution lies in the total dispersion of power. While it may never eliminate this problem, it will mitigate its' influence. Society should be a balance that allows for predatory excellence and efficiency coupled with the safety and security of a well defended herd. However, when the balance becomes skewed, we have the worst of all worlds.

chopper read's picture

Sean7k, you, sir, are a patriot!!!!

Jones79's picture

they had a banner on the screen that said dow 11,000.  i thought bartiromo was going to bring out the balloons, pisani the cake and mcc the confetti

Jones79's picture

they had a banner on the screen that said dow 11,000.  i thought bartiromo was going to bring out the balloons, pisani the cake and mcc the confetti

chopper read's picture

...from the newsletter of John Mauldin (


here's an interesting note I picked up while looking at employment data by age and education (with seven kids, these things are important to me!). There is a cohort that has seen its employment level rise. That would be men and women over 65. The total number of people over 65 who are employed has risen by 318,000 over the last year, accounting for nearly all the job growth (although one bit of data is from the establishment survey and the other is from the household survey, but that should be close enough for government work).

Think about that. Almost all the job growth has come from those who have reached "retirement age" (whatever that is) continuing to work or going back to work. The unemployment rate for young people 16-19 is 26%. The unemployment rate for black youth is an appalling 49%. (This is not an abstract piece of data. I have two adopted black sons, so this figure means something in the Mauldin household.) Next time you go into malls, Barnes and Nobles, fast food places, notice again the work force. These are the jobs that traditionally went to those starting out.

As my friend Bill Dunkelberg, chief economist of the National Federation of Independent Business, wrote yesterday:

"Officially, the recession ended in June, 2009 according to the National Bureau of Economic Research, historical arbiters of recession and recovery dates. But in July, 2009, Congress raised the minimum wage by over 10% and 580,000 teen jobs were lost in the second half of the year even as GDP posted growth of 4% (annual rate). This was more than double the losses in the first half of the year when GDP declined at a 4% rate and fewer workers were needed. This was one of many policies implemented or proposed by Congress that made no sense as a measure to blunt the impact of the recession. The minimum wage determines the minimum value an unskilled worker must add to a business to justify employment. Congress has made this hurdle higher and more teens find they cannot get over it. This is just one of many barriers to hiring that are institutionalized in our economy, for example restrictions in the stimulus legislation that required union labor on projects."

Let's hear it for unintended consequences.

aggiegolfer's picture

Our markets are a complete joke and our country has gone full retard.

Azannoth's picture

You ain't seen nothing yet, go to Greece or Spain and you'll see what's comming in a few short years to the USA, it's not yet too late to arrange for an evacuation or at least be prepared

Caviar Emptor's picture

Might as well face it, we're addicted to smack...errrrr....I mean stimulus.

Next up: tax cuts (that we're also addicted to). 

Bottom line: tax cuts, stimulus: same difference if Uncle Sugar pisses or shits printed money into the economy. Stimulus tends to go to the bottom half, tax cuts to the top half. There's no more trickle down than there is trickle up!

Dr. Acula's picture

>tax cuts (that we're also addicted to). 

We're addicted to not having our money stolen?


Attitude_Check's picture

No we are addicted with "illusion" of getting something for nothing financed by debt.  Same difference if you cut taxes and keep spending flat, or raise taxes and increase spending more.  We are LONG PAST the point where US Gov spending can actually be paid for with taxes.

Oracle of Kypseli's picture

You do not evacuate. That's what they are hoping for. You stay here and kill the monster.

Azannoth's picture

I am already 2 countries down the Road, and I am less than 30ty :)


I move not because the system sucks, it sucks almost everywhere, I left because I didn't see any hope for the people, when the people are hopeless ;) i leave 

Rusty Shorts's picture

The future is West Africa.

SheepDog-One's picture

Few short years? Highly optimistic.

Hedge Jobs's picture

ive been short for a few years. im highly pesemistic.

DosZap's picture

Takes balls for the pot to call the kettle black eh?.

U.K. has lots of room to talk, since their drafting off our ass like Richard Petty Jr.

Arrogant wankers.

Ragnarok's picture

Ah the UK..........  a failed Nanny State, though an accurate one at that.  Being a G7 country is a badge of shame.

Azannoth's picture

"Ah the UK..........  a failed Nanny State"


I don't think so, they are trying harder than ever before .. they did not give up hope yet ;) for being a 'successful' nanny state

Rasna's picture


Did I miss something here?  Are they saying they won the Revolutionary War and we belong to them after all???

doolittlegeorge's picture

me thinks they're saying "there's still room for something special."

Azannoth's picture

It's a new paradigm, didn't u know, bad economic data = market rise, and for 99% of the people on the street who don't know how to independently (of the MSM) use their synapses it makes perfect sense

Steak's picture

i present as promised the playlist du jour

meh. (a playlist): 

and a series of rap instrumentals (mostly) which are serious crowd pleasers

let it flow (a playlist): 

and as mentioned before, this is all about sharing tunes with y'all and having some rythm and movement in this fine corner of the web.  enjoy and have a great weekend!

taraxias's picture

Yes, your toilet paper of yesterday is a more expensive toilet paper today. Those who look at rising equities as a good inflation play are in for a nasty shock.